Assembly Bill A452

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    452
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by M. of A. WALSH, JENSEN, SIMPSON, BEEPHAN -- read once and
   referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in  relation  to  establishing  the  retire
   strong 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 (qqq) to read as follows:
   (QQQ) RETIRE STRONG TAX CREDIT. (1) FOR PURPOSES OF THIS SUBSECTION:
   (A)  "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
 IS SIXTY-FIVE YEARS OF AGE OR OLDER DURING THE TAX YEAR THEY  FILE;  WHO
 OWNED  AND  PRIMARILY RESIDED FOR SIX MONTHS OR MORE OF THE TAXABLE YEAR
 IN REAL PROPERTY  THAT  EITHER  RECEIVED  THE  ENHANCED  STAR  EXEMPTION
 AUTHORIZED  BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
 LAW, OR THAT QUALIFIED SUCH TAXPAYER TO RECEIVE THE ENHANCED SCHOOL  TAX
 RELIEF CREDIT AUTHORIZED BY SUBSECTION (EEE) OF THIS SECTION.
   (B)  "QUALIFIED  GROSS  INCOME"  MEANS  THE ADJUSTED GROSS INCOME OF A
 QUALIFIED TAXPAYER FOR THE TAXABLE YEAR FOR FEDERAL INCOME TAX  PURPOSES
 AND,  FOR  TAXABLE YEAR TWO THOUSAND TWENTY-FIVE COMPUTED WITHOUT REGARD
 TO THE LAST SENTENCE OF SUBSECTION (A) OF SECTION SIX HUNDRED  SEVEN  OF
 THIS  PART.  IN COMPUTING QUALIFIED GROSS INCOME, THE NET AMOUNT OF LOSS
 REPORTED ON FEDERAL SCHEDULE C, D, E, OR F SHALL NOT EXCEED THREE  THOU-
 SAND  DOLLARS  PER  SCHEDULE.  IN  ADDITION, THE NET AMOUNT OF ANY OTHER
 SEPARATE CATEGORY OF LOSS SHALL NOT EXCEED THREE THOUSAND  DOLLARS.  THE
 AGGREGATE  AMOUNT  OF  ALL  LOSSES INCLUDED IN COMPUTING QUALIFIED GROSS
 INCOME SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS.
   (C) "RESIDENCE" MEANS A DWELLING IN THIS STATE OWNED BY  THE  TAXPAYER
 AND  USED  BY SUCH TAXPAYER AS SUCH TAXPAYER'S PRIMARY RESIDENCE, AND SO
 MUCH OF THE LAND ABUTTING IT, NOT EXCEEDING ONE ACRE, AS  IS  REASONABLY
 NECESSARY  FOR  USE OF THE DWELLING AS A HOME, AND MAY CONSIST OF A PART
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02811-01-5
 A. 452                              2
 
 OF A MULTI-DWELLING OR MULTI-PURPOSE BUILDING INCLUDING A COOPERATIVE OR
 CONDOMINIUM. RESIDENCE INCLUDES A TRAILER OR MOBILE  HOME,  USED  EXCLU-
 SIVELY FOR RESIDENTIAL PURPOSES AND DEFINED AS REAL PROPERTY PURSUANT TO
 PARAGRAPH  (G)  OF  SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THE
 REAL PROPERTY TAX LAW.
   (D) "QUALIFYING REAL PROPERTY TAXES" MEANS ALL  REAL  PROPERTY  TAXES,
 SPECIAL  AD  VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE OF PENAL-
 TIES AND INTEREST, LEVIED BY A  TAXING  JURISDICTION  ON  THE  RESIDENCE
 OWNED  AND  OCCUPIED  BY  A QUALIFIED TAXPAYER AND PAID BY THE QUALIFIED
 TAXPAYER DURING THE TAXABLE YEAR, PROVIDED THAT TO THE EXTENT THE  TOTAL
 AMOUNT  OF  REAL  PROPERTY TAXES SO PAID INCLUDES SCHOOL DISTRICT TAXES,
 THE AMOUNT OF THE SCHOOL TAX RELIEF (STAR) CREDIT  CLAIMED  PURSUANT  TO
 SUBSECTION  (EEE)  OF  THIS SECTION, IF ANY, SHALL BE DEDUCTED FROM SUCH
 AMOUNT.
   A QUALIFIED TAXPAYER MAY ELECT TO INCLUDE ANY ADDITIONAL  AMOUNT  THAT
 WOULD  HAVE  BEEN LEVIED BY A TAXING JURISDICTION AND PAID BY THE QUALI-
 FIED TAXPAYER IN THE ABSENCE OF AN EXEMPTION FROM REAL PROPERTY TAXATION
 PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN OF THE  REAL  PROPERTY  TAX
 LAW.  IF  TENANT-STOCKHOLDERS  IN A COOPERATIVE HOUSING CORPORATION HAVE
 MET THE REQUIREMENTS OF SECTION TWO  HUNDRED  SIXTEEN  OF  THE  INTERNAL
 REVENUE  CODE  BY  WHICH  THEY  ARE  ALLOWED A DEDUCTION FOR REAL ESTATE
 TAXES, THE AMOUNT OF TAXES SO ALLOWABLE, OR WHICH WOULD BE ALLOWABLE  IF
 THE TAXPAYER HAD FILED RETURNS ON A CASH BASIS, SHALL BE QUALIFYING REAL
 PROPERTY  TAXES.  IF  A  RESIDENCE IS AN INTEGRAL PART OF A LARGER UNIT,
 QUALIFYING REAL PROPERTY TAXES SHALL BE LIMITED TO THAT AMOUNT  OF  SUCH
 TAXES  PAID  AS  MAY  BE  REASONABLY APPORTIONED TO SUCH RESIDENCE. IF A
 TAXPAYER OWNED AND OCCUPIED TWO RESIDENCES IN THE STATE DURING DIFFERENT
 PERIODS IN THE SAME TAXABLE YEAR, QUALIFYING REAL PROPERTY  TAXES  SHALL
 BE  THE  SUM OF THE PRORATED QUALIFYING REAL PROPERTY TAXES ATTRIBUTABLE
 TO THE TAXPAYER DURING THE PERIODS SUCH TAXPAYER OCCUPIED EACH  OF  SUCH
 RESIDENCES.  A  TAXPAYER WHO OWNED AND OCCUPIED A RESIDENCE IN THE STATE
 FOR PART OF THE TAXABLE YEAR AND RENTED A RESIDENCE  IN  THE  STATE  FOR
 PART  OF  THE SAME TAXABLE YEAR, MAY INCLUDE THE PRORATION OF QUALIFYING
 REAL PROPERTY TAXES ON  THE  RESIDENCE  OWNED.  PROVIDED,  HOWEVER,  FOR
 PURPOSES  OF  THE  CREDIT ALLOWED UNDER THIS SUBSECTION, QUALIFYING REAL
 PROPERTY TAXES MAY BE INCLUDED BY  A  QUALIFIED  TAXPAYER  ONLY  TO  THE
 EXTENT  THAT  SUCH TAXPAYER OR THE SPOUSE OF SUCH TAXPAYER OCCUPIED SUCH
 RESIDENCE FOR ONE HUNDRED EIGHTY-THREE DAYS OR MORE OF THE TAXABLE YEAR,
 OWNED THE RESIDENCE AND PAID SUCH TAXES.
   (2) THE CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL EQUAL  FIFTY
 PERCENT  OF  QUALIFYING  REAL  PROPERTY  TAXES PAID; HOWEVER THIS AMOUNT
 SHALL NOT EXCEED SIXTY-FIVE HUNDRED DOLLARS.
   (3) NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION:
   (A) TO A PROPERTY OWNER IF QUALIFIED GROSS INCOME FOR THE TAXABLE YEAR
 EXCEEDS THREE HUNDRED THOUSAND DOLLARS.
   (B) TO A PROPERTY OWNER UNLESS: (I) THE PROPERTY IS USED FOR  RESIDEN-
 TIAL  PURPOSES;  (II) NOT MORE THAN TWENTY PERCENT OF THE RENTAL INCOME,
 IF ANY, FROM THE PROPERTY IS FROM RENTAL  FOR  NONRESIDENTIAL  PURPOSES;
 AND (III) THE PROPERTY IS OCCUPIED AS A RESIDENCE IN WHOLE OR IN PART BY
 ONE OR MORE OF THE OWNERS OF THE PROPERTY.
   (C) TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION
 (C)  OF  SECTION  ONE  HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS
 ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR.
   (D) WITH RESPECT TO A RESIDENCE THAT  IS  WHOLLY  EXEMPTED  FROM  REAL
 PROPERTY TAXATION.
 A. 452                              3

   (E) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR
 THE ENTIRE TAXABLE YEAR.
   (4) IN THE CASE OF A TAXPAYER WHO HAS ITEMIZED DEDUCTIONS FROM FEDERAL
 ADJUSTED  GROSS INCOME, AND WHOSE FEDERAL ITEMIZED DEDUCTIONS INCLUDE AN
 AMOUNT FOR REAL ESTATE TAXES  PAID,  THE  NEW  YORK  ITEMIZED  DEDUCTION
 OTHERWISE  ALLOWABLE  UNDER  SECTION SIX HUNDRED FIFTEEN OF THIS ARTICLE
 SHALL BE REDUCED  BY  THE  AMOUNT  OF  THE  CREDIT  CLAIMED  UNDER  THIS
 SUBSECTION.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2025.