Senate Bill S8142

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8142
 
                             I N  S E N A T E
 
                             January 26, 2022
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN  ACT  to  amend the tax law, in relation to establishing a tax credit
   for rent paid on the personal residence of certain taxpayers
 
   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 (nnn) to read as follows:
   (NNN) RENT RELIEF CREDIT. (1) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAY-
 ER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN PARAGRAPH TWO
 OF THIS SUBSECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) COMPUTATION OF CREDIT. (A) EXCEPT AS PROVIDED IN SUBPARAGRAPHS (B)
 AND (C) OF THIS PARAGRAPH THE AMOUNT OF THE CREDIT  ALLOWED  UNDER  THIS
 SUBSECTION SHALL BE AS FOLLOWS:
   (I) ONE HUNDRED PERCENT OF THE EXCESS OF THIRTY PERCENT OF THE TAXPAY-
 ER'S  GROSS  INCOME SUCH TAXPAYER PAYS IN RENT FOR SUCH TAXABLE YEAR FOR
 TAXPAYERS WHOSE GROSS INCOME IS TWENTY-FIVE THOUSAND DOLLARS OR LESS;
   (II) SEVENTY-FIVE PERCENT OF THE  EXCESS  OF  THIRTY  PERCENT  OF  THE
 TAXPAYER'S GROSS INCOME SUCH TAXPAYER PAYS IN RENT FOR SUCH TAXABLE YEAR
 FOR  TAXPAYERS  WHOSE  GROSS INCOME IS GREATER THAN TWENTY-FIVE THOUSAND
 DOLLARS BUT LESS THAN FIFTY THOUSAND DOLLARS;
   (III) FIFTY PERCENT OF THE EXCESS OF THIRTY PERCENT OF THE  TAXPAYER'S
 GROSS  INCOME  SUCH  TAXPAYER  PAYS  IN  RENT  FOR SUCH TAXABLE YEAR FOR
 TAXPAYERS WHOSE GROSS INCOME IS FIFTY THOUSAND DOLLARS  OR  GREATER  BUT
 LESS THAN SEVENTY-FIVE THOUSAND DOLLARS;
   (IV)  TWENTY-FIVE  PERCENT  OF  THE  EXCESS  OF  THIRTY PERCENT OF THE
 TAXPAYER'S GROSS INCOME SUCH TAXPAYER PAYS IN RENT FOR SUCH TAXABLE YEAR
 FOR TAXPAYERS WHOSE GROSS INCOME IS  SEVENTY-FIVE  THOUSAND  DOLLARS  OR
 GREATER BUT LESS THAN ONE HUNDRED THOUSAND DOLLARS; OR
   (V)  ZERO  PERCENT  OF  THE EXCESS OF THIRTY PERCENT OF THE TAXPAYER'S
 GROSS INCOME SUCH TAXPAYER PAYS  IN  RENT  FOR  SUCH  TAXABLE  YEAR  FOR
 TAXPAYERS WHOSE GROSS INCOME IS ONE HUNDRED THOUSAND DOLLARS OR GREATER.
   (B)  NOTWITHSTANDING  THE PROVISIONS OF SUBPARAGRAPH (A) OF THIS PARA-
 GRAPH, WHERE THE PRIMARY RESIDENCE OF A TAXPAYER IS LOCATED IN  AN  AREA
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00934-03-2
 S. 8142                             2
 
 FOR  WHICH, UNDER THE RULE PUBLISHED IN THE FEDERAL REGISTER ON NOVEMBER
 SIXTEENTH OF TWO THOUSAND SIXTEEN (81 FED.  REG. 80567), THE SMALL  AREA
 FAIR  MARKET  RENT  IS  USED  FOR PURPOSES OF THE FEDERAL HOUSING CHOICE
 VOUCHER  PROGRAM  THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION
 SHALL BE AS FOLLOWS:
   (I) ONE HUNDRED PERCENT OF THE EXCESS OF THIRTY PERCENT OF THE TAXPAY-
 ER'S GROSS INCOME SUCH TAXPAYER PAYS IN RENT FOR SUCH TAXABLE  YEAR  FOR
 TAXPAYERS WHOSE GROSS INCOME IS TWENTY-FIVE THOUSAND DOLLARS OR LESS;
   (II)  SEVENTY-FIVE  PERCENT  OF  THE  EXCESS  OF THIRTY PERCENT OF THE
 TAXPAYER'S GROSS INCOME SUCH TAXPAYER PAYS IN RENT FOR SUCH TAXABLE YEAR
 FOR TAXPAYERS WHOSE GROSS INCOME IS GREATER  THAN  TWENTY-FIVE  THOUSAND
 DOLLARS BUT LESS THAN FIFTY THOUSAND DOLLARS;
   (III)  FIFTY PERCENT OF THE EXCESS OF THIRTY PERCENT OF THE TAXPAYER'S
 GROSS INCOME SUCH TAXPAYER PAYS  IN  RENT  FOR  SUCH  TAXABLE  YEAR  FOR
 TAXPAYERS  WHOSE  GROSS  INCOME IS FIFTY THOUSAND DOLLARS OR GREATER BUT
 LESS THAN SEVENTY-FIVE THOUSAND DOLLARS;
   (IV) TWENTY-FIVE PERCENT OF  THE  EXCESS  OF  THIRTY  PERCENT  OF  THE
 TAXPAYER'S GROSS INCOME SUCH TAXPAYER PAYS IN RENT FOR SUCH TAXABLE YEAR
 FOR  TAXPAYERS  WHOSE  GROSS  INCOME IS SEVENTY-FIVE THOUSAND DOLLARS OR
 GREATER BUT LESS THAN ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS; OR
   (V) ZERO PERCENT OF THE EXCESS OF THIRTY  PERCENT  OF  THE  TAXPAYER'S
 GROSS  INCOME  SUCH  TAXPAYER  PAYS  IN  RENT  FOR SUCH TAXABLE YEAR FOR
 TAXPAYERS WHOSE GROSS INCOME IS ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS
 OR GREATER.
   (C) NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (A) OR (B) OF  THIS
 PARAGRAPH,  WHERE  THE  RENT  OF  THE PRIMARY RESIDENCE OF A TAXPAYER IS
 SUBSIDIZED UNDER A FEDERAL, STATE, LOCAL OR TRIBAL PROGRAM,  THE  AMOUNT
 OF  THE  CREDIT  ALLOWED  UNDER  THIS  SUBSECTION SHALL BE EQUAL TO ONE-
 TWELFTH OF THE AMOUNT OF RENT PAID BY SUCH TAXPAYER THAT IS  NOT  SUBSI-
 DIZED  UNDER  ANY  SUCH  PROGRAM DURING THE TAXABLE YEAR WITH RESPECT TO
 SUCH RESIDENCE.
   (3) LIMITATION ON AMOUNT OF CREDIT. FOR THE  PURPOSES  OF  DETERMINING
 THE  AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION, WITH RESPECT TO
 A PRIMARY RESIDENCE FOR THE TAXABLE YEAR, THERE SHALL NOT BE TAKEN  INTO
 ACCOUNT  RENT  IN EXCESS OF AN AMOUNT EQUAL TO ONE HUNDRED FIFTY PERCENT
 OF THE FAIR MARKET RENT, INCLUDING THE UTILITY ALLOWANCE, APPLICABLE  TO
 SUCH  RESIDENCE,  AS MOST RECENTLY PUBLISHED, AS OF THE BEGINNING OF THE
 TAXABLE YEAR, BY THE UNITED  STATES  DEPARTMENT  OF  HOUSING  AND  URBAN
 DEVELOPMENT.
   (4)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
 CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
 SHALL BE PAID THEREON.
   (5)  ADMINISTRATION.  THE  COMMISSIONER  SHALL  HAVE  THE AUTHORITY TO
 PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE  PROC-
 ESSING, DETERMINATION AND GRANTING OF CREDITS UNDER THIS SUBSECTION.
   (6) DEFINITIONS. AS USED IN THIS SUBSECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (A) "QUALIFIED TAXPAYER" SHALL MEAN AN INDIVIDUAL WHO LEASES THE INDI-
 VIDUAL'S  PRIMARY  RESIDENCE  DURING  THE TAXABLE YEAR AND WHO PAYS RENT
 WITH RESPECT TO SUCH RESIDENCE IN  EXCESS  OF  THIRTY  PERCENT  OF  SUCH
 TAXPAYER'S GROSS INCOME FOR SUCH TAXABLE YEAR.
   (B) "RENT" SHALL INCLUDE ANY AMOUNT PAID FOR UTILITIES.
 S. 8142                             3

   (C)  "GROSS  INCOME" SHALL MEAN THE FEDERAL ADJUSTED GROSS INCOME OF A
 TAXPAYER.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law,  and  shall  apply  to
 taxable years commencing on and after such date.  Effective immediately,
 the  addition,  amendment and/or repeal of any rule or regulation neces-
 sary for the implementation of  this  act  on  its  effective  date  are
 authorized to be made and completed on or before such effective date.