NY State Senate Bill 2023-S4056A

Senate Bill S4056A

2023-2024 Legislative Session

Creates a personal income tax credit for taxpayers who pay an excess premium paid during the applicable tax year for flood insurance providing coverage on the taxpayer's primary residence

download bill text pdf

Current Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 18, 2024	print number 4056a
Mar 18, 2024	amend and recommit to budget and revenue
Jan 03, 2024	referred to budget and revenue
Feb 02, 2023	referred to budget and revenue

Bill Amendments

Original

A (Active)

2023-S4056 - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6592
2019-2020: S91
2021-2022: S92

2023-S4056 - Summary

Allows an individual taxpayer to claim a credit against their income tax for excess premium paid during the applicable tax year for flood insurance providing coverage on the taxpayer's primary residence; authorizes the commissioner of taxation and finance to promulgate any necessary rules and regulations.

2023-S4056 - Sponsor Memo

                                 
BILL NUMBER: S4056

SPONSOR: MANNION
 
TITLE OF BILL:

An act to amend the tax law, in relation to allowing an individual
taxpayer to claim a credit against their income tax for excess premium
paid during the applicable tax year for flood insurance providing cover-
age on the taxpayer's primary residence

 
PURPOSE:

The purpose of this bill is to establish a flood insurance tax credit
for the primary residence of New Yorkers.

 
SUMMARY OF PROVISIONS:


Section 1 of this bill would amend section 606 of the Tax Law to add a
new subsection (ccc) creating the flood insurance tax credit. The amount
of the credit may not exceed $1,250 for any excess premium paid by the
taxpayer that exceeds 5% of the taxpayer's adjusted gross income. If the

amount of the credit allowed exceeds the taxpayer's tax for a given year
a taxpayer can opt to have it refunded to them or credited towards
future tax years. Total credits would be capped at $5 million.

Section 2 of this bill provides that the effective date shall take
effect immediately and shall apply to taxable years beginning on and
after January 1, 2024.

 
JUSTIFICATION:

The National Flood Insurance Program (NFIP) is a vital program for New
Yorkers who reside in high-risk areas are only able to obtain flood
insurance through the NFIP. The NFIP is a long lasting federal program
that has an accumulated debt of $20.5 billion, after having $16 billion
canceled, and continues to race towards reaching its debt cap. In order
to bring stability to the NFIP, coastal homeowners across the state are
seeing flood insurance premium increases.

New Yorkers have been able to benefit from federal subsidies in the past
that were intended to encourage homeowners at risk of flooding to buy
insurance. In addition to the premium increases, with any subsidies
phasing out, this creates even more financial pressure on homeowners.

Flood insurance policies can cost upwards of several thousand dollars a
year and even more for homeowners who live in coastal areas. This cost
can play a significant role in the costs of homeownership. Many homeown-
ers are working hard to decrease their insurance costs through reno-
vations to their homes to raise them out of the reach of floodwater. By
establishing a State tax credit for flood insurance, New York State can
take a positive step in helping more New Yorkers to afford flood insur-
ance coverage.

 
LEGISLATIVE HISTORY:

2021-22: S.92 (Kaminksy) - Referred to Budget and Finance

2019-20: S.91 (Kaminksy) - Referred to Investigation and Government
2017-18: S.6592 (Kaminsky) - Referred to Investigation and Government
Operations.

 
FISCAL IMPLICATIONS:

If enacted, this measure would reduce State revenue by up to $5 million.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2024. Effective immediately, the addi-
tion, amendment and/or repeal of any rule or regulation necessary for
the implementation of this act on its effective date are authorized to
be made and completed on or before such effective date.

2023-S4056 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4056
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2023
                                ___________
 
 Introduced  by  Sen. MANNION -- 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  allowing  an  individual
   taxpayer to claim a credit against their income tax for excess premium
   paid  during  the  applicable  tax  year for flood insurance providing
   coverage on the taxpayer's primary residence
 
   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 (ooo) to read as follows:
   (OOO) FLOOD INSURANCE TAX CREDIT. (1) ALLOWANCE OF CREDIT. A  TAXPAYER
 SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH TWO
 OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE  FOR  EXCESS
 PREMIUM  PAID DURING THE APPLICABLE TAX YEAR FOR FLOOD INSURANCE PROVID-
 ING COVERAGE ON THE TAXPAYER'S PRIMARY RESIDENCE.
   (2) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE  OF
 THIS  SUBSECTION  SHALL BE IN AN AMOUNT EQUAL TO THE EXCESS PREMIUM PAID
 BY THE TAXPAYER, THE AMOUNT BY  WHICH  THE  PREMIUM  PAID  EXCEEDS  FIVE
 PERCENT  OF  THE  TAXPAYER'S ADJUSTED GROSS INCOME.  SUCH CREDIT FOR ANY
 TAXABLE YEAR MAY NOT EXCEED ONE THOUSAND TWO HUNDRED FIFTY DOLLARS.
   (3) 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 OR ANY UNUSED CREDIT MAY BE  CARRIED  FORWARD  FOR
 FIVE SUCCEEDING TAXABLE YEARS.
   (4)  CREDIT  LIMITATION.  THE  AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
 PURSUANT TO THIS SUBSECTION SHALL NOT EXCEED FIVE MILLION DOLLARS IN ANY
 TAXABLE YEAR.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07784-01-3
 S. 4056                             2

 
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2024.    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.

2023-S4056A (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6592
2019-2020: S91
2021-2022: S92

2023-S4056A (ACTIVE) - Summary

2023-S4056A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4056A

SPONSOR: MANNION
 
TITLE OF BILL:

An act to amend the tax law, in relation to allowing an individual
taxpayer to claim a credit against their income tax for excess premium
paid during the applicable tax year for flood insurance providing cover-
age on the taxpayer's primary residence

 
PURPOSE:

The purpose of this bill is to establish a flood insurance tax credit
for the primary residence of New Yorkers.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill would amend section 606 of the Tax Law to add a
new subsection (ccc) creating the flood insurance tax credit. The amount
of the credit may not exceed $1,250 for any excess premium paid by the
taxpayer that exceeds 5% of the taxpayer's adjusted gross income. If the
amount of the credit allowed exceeds the taxpayer's tax for a given year

a taxpayer can opt to have it refunded to them or credited towards
future tax years. Total credits would be capped at $5 million.

Section 2 of this bill provides that the effective date shall take
effect immediately and shall apply to taxable years beginning on and
after January 1, 2025.

 
JUSTIFICATION:

The National Flood Insurance Program (NFIP) is a vital program for New
Yorkers who reside in high-risk areas are only able to obtain flood
insurance through the NFIP. The NFIP is a long lasting federal program
that has an accumulated debt of $20.5 billion, after having $16 billion
canceled, and continues to race towards reaching its debt cap. In order
to bring stability to the NFIP, coastal homeowners across the state are
seeing flood insurance premium increases.

New Yorkers have been able to benefit from federal subsidies in the past
that were intended to encourage homeowners at risk of flooding to buy
insurance. In addition to the premium increases, with any subsidies
phasing out, this creates even more financial pressure on homeowners.

Flood insurance policies can cost upwards of several thousand dollars a
year and even more for homeowners who live in coastal areas. This cost
can play a significant role in the costs of homeownership. Many homeown-
ers are working hard to decrease their insurance costs through reno-
vations to their homes to raise them out of the reach of floodwater. By
establishing a State tax credit for flood insurance, New York State can
take a positive step in helping more New Yorkers to afford flood insur-
ance coverage.

 
LEGISLATIVE HISTORY:

2021-22: S.92 (Kaminksy) - Referred to Budget and Finance

2019-20: S.91 (Kaminksy) - Referred to Investigation and Government

2017-18: S.6592 (Kaminsky) - Referred to Investigation and Government
Operations.

 
FISCAL IMPLICATIONS:

If enacted, this measure would reduce State revenue by up to $5 million.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2025. Effective immediately, the addi-
tion, amendment and/or repeal of any rule or regulation necessary for
the implementation of this act on its effective date are authorized to
be made and completed on or before such effective date.

2023-S4056A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4056--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2023
                                ___________
 
 Introduced  by  Sen. MANNION -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   recommitted  to the Committee on Budget and Revenue in accordance with
   Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
   reprinted as amended and recommitted to said committee

 AN  ACT  to  amend  the  tax  law, in relation to allowing an individual
   taxpayer to claim a credit against their income tax for excess premium
   paid during the applicable tax  year  for  flood  insurance  providing
   coverage on the taxpayer's primary residence
 
   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 (ppp) to read as follows:
   (PPP)  FLOOD INSURANCE TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  PARAGRAPH  TWO
 OF  THIS  SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR EXCESS
 PREMIUM PAID DURING THE APPLICABLE TAX YEAR FOR FLOOD INSURANCE  PROVID-
 ING COVERAGE ON THE TAXPAYER'S PRIMARY RESIDENCE.
   (2)  AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE OF
 THIS SUBSECTION SHALL BE IN AN AMOUNT EQUAL TO THE EXCESS  PREMIUM  PAID
 BY  THE  TAXPAYER,  THE  AMOUNT  BY  WHICH THE PREMIUM PAID EXCEEDS FIVE
 PERCENT OF THE TAXPAYER'S ADJUSTED GROSS INCOME.   SUCH CREDIT  FOR  ANY
 TAXABLE YEAR MAY NOT EXCEED ONE THOUSAND TWO HUNDRED FIFTY DOLLARS.
   (3)  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 OR ANY UNUSED CREDIT MAY BE CARRIED FORWARD FOR
 FIVE SUCCEEDING TAXABLE YEARS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07784-02-4
 S. 4056--A                          2

 
   (4) CREDIT LIMITATION. THE AGGREGATE AMOUNT  OF  TAX  CREDITS  ALLOWED
 PURSUANT TO THIS SUBSECTION SHALL NOT EXCEED FIVE MILLION DOLLARS IN ANY
 TAXABLE YEAR.
   § 2. This act shall take effect immediately and shall apply to taxable
 years  beginning  on  and after January 1, 2025.  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.

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