S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5369
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 16, 2021
                                ___________
 
 Introduced  by M. of A. DILAN -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to  exempting  certain  pension
   and annuity disbursements from the gross income of qualifying individ-
   uals  impacted  by the COVID-19 pandemic; and providing for the repeal
   of such provisions upon the expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subsection (c) of section 612 of the tax law is amended by
 adding a new paragraph 3-d to read as follows:
   (3-D) (I) PENSIONS AND ANNUITIES RECEIVED BY A QUALIFYING  INDIVIDUAL,
 NOT  OTHERWISE  EXCLUDED PURSUANT TO PARAGRAPH THREE OF THIS SUBSECTION,
 TO THE  EXTENT  INCLUDIBLE  IN  GROSS  INCOME  FOR  FEDERAL  INCOME  TAX
 PURPOSES,  BUT  NOT IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS, WHICH ARE
 PERIODIC PAYMENTS ATTRIBUTABLE TO PERSONAL SERVICES  PERFORMED  BY  SUCH
 INDIVIDUAL PRIOR TO HIS RETIREMENT FROM EMPLOYMENT, WHICH ARISE (A) FROM
 AN EMPLOYER-EMPLOYEE RELATIONSHIP OR (B) FROM CONTRIBUTIONS TO A RETIRE-
 MENT PLAN WHICH ARE DEDUCTIBLE FOR FEDERAL INCOME TAX PURPOSES. HOWEVER,
 FOR  THE  PURPOSES  OF THIS PARAGRAPH, THE TERM "PENSIONS AND ANNUITIES"
 SHALL ALSO INCLUDE DISTRIBUTIONS RECEIVED  BY  A  QUALIFYING  INDIVIDUAL
 FROM AN INDIVIDUAL RETIREMENT ACCOUNT OR AN INDIVIDUAL RETIREMENT ANNUI-
 TY,  AS  DEFINED  IN  SECTION FOUR HUNDRED EIGHT OF THE INTERNAL REVENUE
 CODE, AND DISTRIBUTIONS RECEIVED BY A QUALIFYING INDIVIDUAL  FROM  SELF-
 EMPLOYED  INDIVIDUAL  AND  OWNER-EMPLOYEE RETIREMENT PLANS WHICH QUALIFY
 UNDER SECTION FOUR HUNDRED ONE OF THE INTERNAL REVENUE CODE, WHETHER  OR
 NOT  THE  PAYMENTS ARE PERIODIC IN NATURE. THE TERM "PENSIONS AND ANNUI-
 TIES" SHALL ADDITIONALLY INCLUDE ANY LUMP SUM DISTRIBUTION,  AS  DEFINED
 IN  SUBPARAGRAPH (D) OF PARAGRAPH FOUR OF SUBSECTION (E) OF SECTION FOUR
 HUNDRED TWO OF THE INTERNAL REVENUE CODE AND  TAXED  UNDER  SECTION  SIX
 HUNDRED  THREE  OF  THIS  ARTICLE. WHERE A HUSBAND AND WIFE FILE A JOINT
 STATE PERSONAL INCOME TAX RETURN, THE MODIFICATION PROVIDED FOR IN  THIS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09169-01-1

 A. 5369                             2
 
 PARAGRAPH  SHALL  BE  COMPUTED  AS  IF  THEY  WERE FILING SEPARATE STATE
 PERSONAL INCOME TAX RETURNS. WHERE A PAYMENT WOULD OTHERWISE COME WITHIN
 THE MEANING OF THE TERM "PENSIONS AND ANNUITIES" AS SET  FORTH  IN  THIS
 PARAGRAPH,  EXCEPT THAT SUCH INDIVIDUAL IS DECEASED, SUCH PAYMENT SHALL,
 NEVERTHELESS, BE TREATED AS A PENSION OR ANNUITY FOR  PURPOSES  OF  THIS
 PARAGRAPH IF SUCH PAYMENT IS RECEIVED BY SUCH INDIVIDUAL'S BENEFICIARY.
   (II) FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "QUALIFYING INDIVID-
 UAL" SHALL MEAN AN INDIVIDUAL WHO:
   (A) HAS BEEN DIAGNOSED WITH NOVEL CORONAVIRUS COVID-19;
   (B)  HAS A SPOUSE OR DEPENDENT WHO HAS BEEN DIAGNOSED WITH NOVEL CORO-
 NAVIRUS COVID-19; OR
   (C) HAS EXPERIENCED ONE OR MORE OF  THE  FOLLOWING  FINANCIAL  IMPACTS
 FROM COVID-19:
   (I) MANDATORY QUARANTINE;
   (II) FURLOUGH, LAYOFF OR A REDUCTION IN WORK HOURS;
   (III) INABILITY TO WORK DUE TO A LACK OF CHILDCARE AVAILABILITY;
   (IV)  MANDATORY CLOSING OR REDUCTION IN HOURS OF AN INDIVIDUAL'S BUSI-
 NESS;
   (V) REDUCED SALARY OR SELF-EMPLOYMENT INCOME; OR
   (VI) RESCINDED JOB OFFER OR A DELAYED JOB START DATE.
   (III) THE COMMISSIONER  SHALL  PROMULGATE  ANY  RULES  OR  REGULATIONS
 NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS PARAGRAPH.
   §  2. Section 603 of the tax law is amended by adding a new subsection
 (c) to read as follows:
   (C) NOTWITHSTANDING ANY PROVISION OF LAW  TO  THE  CONTRARY,  THE  TAX
 IMPOSED  PURSUANT  TO THE PROVISIONS OF THIS SECTION SHALL NOT APPLY THE
 FIRST ONE HUNDRED THOUSAND DOLLARS OF A LUMP SUM DISTRIBUTION TO A QUAL-
 IFYING INDIVIDUAL AS DEFINED IN SUBPARAGRAPH (II) OF  PARAGRAPH  THREE-D
 OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years  beginning  on  or  after January 1, 2021, and shall expire and be
 deemed repealed 3 years after such effective date.