S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7556
 
                             I N  S E N A T E
 
                             January 24, 2018
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to implementing  a  union  dues
   tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (iii) to read as follows:
   (III)  UNION  DUES  TAX  CREDIT.  (1) ALLOWANCE OF CREDIT. FOR TAXABLE
 YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO  THOUSAND  EIGHTEEN  AND
 BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, A RESIDENT TAXPAYER SHALL
 BE  ALLOWED  A  CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH THREE OF
 THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE  FOR  ALLOWABLE
 UNION DUES.
   (2)  ALLOWABLE  DUES.  THE  TERM "ALLOWABLE UNION DUES" SHALL MEAN THE
 FULL AMOUNT OF AGENCY SHOP FEES AND UNION  DUES  PAID  BY  THE  TAXPAYER
 DURING  THE  TAXABLE YEAR THAT WOULD HAVE BEEN DEDUCTIBLE IN THE TAXABLE
 YEAR ENDING DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN UNDER  SECTION
 187  OF  THE  INTERNAL  REVENUE  CODE  WITHOUT  REGARD TO THE LIMITATION
 IMPOSED BY SECTION 67 OF THE INTERNAL REVENUE CODE.
   (3) COMPUTATION OF CREDIT. THE AMOUNT OF CREDIT ALLOWABLE PURSUANT  TO
 THIS  SUBSECTION  SHALL EQUAL THE ALLOWABLE UNION DUES MULTIPLIED BY THE
 RATE OF TAX IMPOSED ON THE TAXPAYER'S NEW YORK TAXABLE  INCOME  PURSUANT
 TO SECTION SIX HUNDRED ONE OF THIS PART.
   (4) REFUNDS. THE CREDIT UNDER THIS SUBSECTION SHALL BE ALLOWED AGAINST
 THE  TAXES  IMPOSED  BY THIS ARTICLE FOR THE TAXABLE YEAR REDUCED BY THE
 CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX  AS  SO
 REDUCED,  THE  TAXPAYER  MAY  RECEIVE, AND THE COMPTROLLER, SUBJECT TO A
 CERTIFICATE OF THE COMMISSIONER, SHALL PAY AS  AN  OVERPAYMENT,  WITHOUT
 INTEREST, THE AMOUNT OF SUCH EXCESS.
   §  2.  Paragraph 5 of subsection (d) of section 615 of the tax law, as
 added by section 1 of part OOO of chapter 59 of the  laws  of  2017,  is
 amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14102-03-8

 S. 7556                             2
 
   (5)  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
 EIGHTEEN AND AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND  TWENTY-SIX,  the
 full  amount  of union dues paid during the taxable year if the taxpayer
 was not allowed federal miscellaneous itemized deductions  by  operation
 of  section 67 of the internal revenue code. If any amount of union dues
 representing federal miscellaneous itemized deductions was allowed, then
 the amount allowed as a New York itemized deduction for union dues  paid
 shall  be  a percentage of the union dues disallowed by the operation of
 section 67 of the internal revenue code computed as follows. The  amount
 allowed  as a New York itemized deduction shall be computed by multiply-
 ing the total union dues paid by the taxpayer during the taxable year by
 a percentage determined by subtracting from one, a  fraction  where  the
 numerator  is the amount of federal miscellaneous deductions allowed and
 the  denominator  is  the  aggregate  federal   miscellaneous   itemized
 deductions  before application of the two-percent floor under section 67
 of the internal revenue code. For the purposes of this paragraph,  union
 dues  are  those  amounts that [are] WOULD HAVE BEEN deductible as union
 dues and agency shop fees under section  162  of  the  internal  revenue
 code,  AS IT WAS IN EFFECT PRIOR TO THE ENACTMENT OF PUBLIC LAW NO. 115-
 97.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2018.