Senate Bill S5808

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5808
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2025
                                ___________
 
 Introduced by Sen. SEPULVEDA -- 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 (bbb) to read as follows:
   (BBB) 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.  THE CREDIT ALLOWED UNDER  THIS  SUBSECTION
 SHALL  BE  ONE  HUNDRED  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 INCOME IS LESS THAN FIFTY PERCENT OF THE AREA MEDIAN
 INCOME.
   (3) ADVANCE PAYMENTS. (A) THE COMMISSIONER SHALL ESTABLISH A MECHANISM
 BY WHICH A QUALIFIED TAXPAYER MAY APPLY FOR AN ADVANCE  PAYMENT  OF  THE
 CREDIT AUTHORIZED BY THIS SUBSECTION, PROVIDED THAT:
   (I)  A QUALIFIED TAXPAYER WHO FAILS TO APPLY FOR AN ADVANCE PAYMENT OF
 SUCH CREDIT BY THE DATE ON WHICH THE COMMISSIONER  REQUIRES,  MAY  APPLY
 FOR  AND RECEIVE SUCH CREDIT IN THE MANNER PRESCRIBED BY THE COMMISSION-
 ER, PROVIDED THAT SUCH APPLICATION SHALL BE MADE WITHIN THREE YEARS FROM
 THE TIME THAT A RETURN FOR THE TAXABLE YEAR WOULD HAVE HAD TO  BE  FILED
 PURSUANT  TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE. IF APPROVED,
 SUCH PAYMENT SHALL BE  ISSUED  AS  SOON  AS  IS  PRACTICABLE  AFTER  THE
 SUBMISSION OF THE APPLICATION BUT SHALL NOT BE SUBJECT TO THE PROCESSING
 SCHEDULE PRESCRIBED BY SUBPARAGRAPH (B) OF THIS PARAGRAPH, AND
   (II)  A  QUALIFIED  TAXPAYER WHO HAS APPLIED FOR AN ADVANCE PAYMENT OF
 SUCH CREDIT IN A TAXABLE YEAR  MAY  CONTINUE  TO  RECEIVE  SUCH  ADVANCE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01418-01-5
 S. 5808                             2
              

 
 PAYMENTS  IN  FUTURE  TAXABLE  YEARS  WITHOUT REAPPLYING AS LONG AS SUCH
 TAXPAYER REMAINS ELIGIBLE THEREFOR.
   (B)  THE COMMISSIONER SHALL DETERMINE THE ELIGIBILITY OF TAXPAYERS FOR
 THIS CREDIT UTILIZING THE INFORMATION AVAILABLE TO SUCH COMMISSIONER  AS
 OBTAINED  FROM THE APPLICATIONS SUBMITTED AND FROM SUCH OTHER SOURCES AS
 THE COMMISSIONER DEEMS RELIABLE AND  APPROPRIATE.  FOR  THOSE  TAXPAYERS
 WHOM  THE  COMMISSIONER  HAS  DETERMINED  ELIGIBLE  FOR THIS CREDIT, THE
 COMMISSIONER SHALL ADVANCE A PAYMENT OF UP  TO  ONE-HALF  OF  THE  TOTAL
 AMOUNT OF THE TOTAL CREDIT OWED.
   (C)  A TAXPAYER WHO HAS FAILED TO RECEIVE AN ADVANCE PAYMENT THAT SUCH
 TAXPAYER BELIEVES WAS DUE TO  THEM,  OR  WHO  HAS  RECEIVED  AN  ADVANCE
 PAYMENT THAT SUCH TAXPAYER BELIEVES IS LESS THAN THE AMOUNT THAT WAS DUE
 TO  SUCH  TAXPAYER,  MAY  REQUEST PAYMENT OF THE CLAIMED DEFICIENCY IN A
 MANNER PRESCRIBED BY THE COMMISSIONER.
   (D) AN ADVANCE PAYMENT OF CREDIT PROVIDED PURSUANT TO THIS  SUBSECTION
 THAT EXCEEDS THE TAXPAYER'S QUALIFYING TAXES FOR THAT TAXABLE YEAR SHALL
 BE ADDED BACK AS TAX ON THE INCOME TAX RETURN FOR THAT TAXABLE YEAR.
   (E)  IF  THE  COMMISSIONER DETERMINES AFTER ISSUING AN ADVANCE PAYMENT
 THAT IT WAS ISSUED IN AN EXCESSIVE AMOUNT OR TO AN INELIGIBLE OR  INCOR-
 RECT  PARTY,  THE  COMMISSIONER SHALL BE EMPOWERED TO UTILIZE ANY OF THE
 PROCEDURES FOR COLLECTION, LEVY AND LIEN  OF  PERSONAL  INCOME  TAX  SET
 FORTH  IN  THIS ARTICLE, ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN
 THE PROVISIONS OF THIS ARTICLE, AND ANY OTHER LAW AS MAY BE  APPLICABLE,
 TO RECOUP THE IMPROPERLY ISSUED AMOUNT.
   (4)  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.
   (5) 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.
   (6) 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.
   (7) 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, WHO PAYS  RENT  WITH
 RESPECT TO SUCH RESIDENCE AND WHOSE INCOME IS LESS THAN FIFTY PERCENT OF
 THE AREA MEDIAN INCOME.
   (B) "RENT" SHALL INCLUDE ANY AMOUNT PAID FOR UTILITIES.
   (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.