S. 3728 2
with the modifications in subsection (b) of section six hundred twelve
but without the modifications in subsection (c) of such section, plus
any portion of the gain from the sale or exchange of property otherwise
excluded from such amount; earned income from sources without the United
States excludable from federal gross income by section nine hundred
eleven of the internal revenue code; support money not included in
adjusted gross income; nontaxable strike benefits; supplemental security
income payments; the gross amount of any pension or annuity benefits to
the extent not included in such adjusted gross income (including, but
not limited to, railroad retirement benefits and all payments received
under the federal social security act and veterans' disability
pensions); nontaxable interest received from the state of New York, its
agencies, instrumentalities, public corporations, or political subdivi-
sions (including a public corporation created pursuant to agreement or
compact with another state or Canada); workers' compensation; the gross
amount of "loss-of-time" insurance; and the amount of cash public
assistance and relief, other than medical assistance for the needy, paid
to or for the benefit of the qualified taxpayer or members of his house-
hold. Household gross income shall not include surplus foods or other
relief in kind or payments made to individuals because of their status
as victims of Nazi persecution as defined in P.L. 103-286. Provided,
further, household gross income shall only include all such income
received by all members of the household while members of such house-
hold.
(D) "Residence" means a dwelling in this state, whether owned or
rented, 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 of a multi-dwelling or multi-purpose building includ-
ing a cooperative or condominium, and rental units within a single
dwelling. Residence includes a trailer or mobile home, used exclusively
for residential purposes and defined as real property pursuant to para-
graph (g) of subdivision twelve of section one hundred two of the real
property tax law.
(E) "Qualifying real property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive of penal-
ties and interest, levied on the residence of a qualified taxpayer and
paid during the taxable year less the credit claimed under subsection
(n-1) of this section. In addition, for taxable years beginning after
December thirty-first, nineteen hundred eighty-four, a qualified taxpay-
er may elect to include any additional amount that would have been
levied in the absence of an exemption from real property taxation pursu-
ant 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 owned by two or more individuals as joint tenants or
tenants in common, and one or more than one individual is not a member
of the household, qualifying real property taxes is that part of such
taxes on the residence which reflects the ownership percentage of the
qualified taxpayer and members of his household. 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 appor-
tioned to such residence. If a household owns and occupies two or more
residences during different periods in the same taxable year, qualifying
S. 3728 3
real property taxes shall be the sum of the prorated qualifying real
property taxes attributable to the household during the periods such
household occupies each of such residences. If the household owns and
occupies a residence for part of the taxable year and rents a residence
for part of the same taxable year, it may include both the proration of
qualifying real property taxes on the residence owned and the real prop-
erty tax equivalent with respect to the months the residence is rented.
Provided, however, for purposes of the credit allowed under this
subsection, qualifying real property taxes may be included by a quali-
fied taxpayer only to the extent that such taxpayer or the spouse of
such taxpayer occupying such residence for six months or more of the
taxable year owns or has owned the residence and paid such taxes.
(F) "Real property tax equivalent" means twenty-five percent of the
adjusted rent actually paid in the taxable year by a household solely
for the right of occupancy of its New York residence for the taxable
year. If (i) a residence is rented to two or more individuals as coten-
ants, or such individuals share in the payment of a single rent for the
right of occupancy of such residence, and (ii) each of such individuals
is a member of a different household, one or more of which individuals
shares such residence, real property tax equivalent is that portion of
twenty-five percent of the adjusted rent paid in the taxable year which
reflects that portion of the rent attributable to the qualified taxpayer
and the members of his household.
(G) "Adjusted rent" means rental paid for the right of occupancy of a
residence, excluding charges for heat, gas, electricity, furnishings and
board. Where charges for heat, gas, electricity, furnishing or board
are included in rental but where such charges and the amount thereof are
not separately set forth in a written rental agreement, for purposes of
determining adjusted rent the qualified taxpayer shall reduce rental
paid as follows:
(i) For heat, or heat and gas, deduct fifteen percent of rental paid.
(ii) For heat, gas and electricity, deduct twenty percent of rental
paid.
(iii) For heat, gas, electricity and furnishings, deduct twenty-five
percent of rental paid.
(iv) For heat, gas, electricity, furnishings and board, deduct fifty
percent of rental paid.
If the [tax commission] COMMISSIONER determines that the adjusted rent
shown on the return is excessive, the [tax commission] COMMISSIONER may
reduce such rent, for purposes of the computation of the credit, to an
amount substantially equivalent to rent for a comparable accommodation.
(2) A qualified taxpayer shall be allowed a credit as provided in
paragraph three hereof against the taxes imposed by this article reduced
by the credits permitted by this article. If the credit exceeds the tax
as so reduced for such year under this article the qualified taxpayer
may receive, and the comptroller, subject to a certificate of the [state
tax commission] COMMISSIONER, shall pay as an overpayment, without
interest, any excess between such tax as so reduced and the amount of
the credit. If a qualified taxpayer is not required to file a return
pursuant to section six hundred fifty-one, a qualified taxpayer may
nevertheless receive and the comptroller, subject to a certificate of
the [state tax commission] COMMISSIONER, shall pay as an overpayment the
full amount of the credit, without interest.
(3) Determination of credit. (A) For qualified taxpayers who have
attained the age of sixty-five years OR A PERMANENT AND TOTAL DISABILITY
AS DEFINED IN SECTION TWENTY-TWO OF THE INTERNAL REVENUE CODE before the
S. 3728 4
beginning of or during the taxable year the amount of the credit allow-
able under this subsection shall be fifty percent, or in the case of a
qualified taxpayer who has elected to include an additional amount
pursuant to subparagraph (E) of paragraph one of this subsection, twen-
ty-five percent, of the excess of real property taxes or the excess of
real property tax equivalent determined as follows:
Excess real property taxes are
the excess of real property tax
equivalent or the excess of
If household gross qualifying real property taxes over
income for the the following percentage of
taxable year is: household gross income:
___________________ __________________________________
[$3,000] $6,000 or less 3 1/2
Over [$3,000] $6,000 but not
over [$5,000] $10,000 4
Over [$5,000] $10,000 but not
over [$7,000] $14,000 4 1/2
Over [$7,000] $14,000 but not
over [$9,000] $18,000 5
Over [$9,000] $18,000 but not
over [$11,000] $22,000 5 1/2
Over [$11,000] $22,000 but not
over [$14,000] $28,000 6
Over [$14,000] $28,000 but not
over [$18,000] $36,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross The maximum
income for the credit is:
taxable year is:
___________________ __________________________________
[$1,000] $2,000 or less [$375] $463
Over [$1,000] $2,000 but
not over [$2,000] $4,000 [$358] $442
Over [$2,000] $4,000 but
not over [$3,000] $6,000 [$341] $421
Over [$3,000] $6,000 but
not over [$4,000] $8,000 [$324] $400
Over [$4,000] $8,000 but
not over [$5,000] $10,000 [$307] $379
Over [$5,000] $10,000 but
not over [$6,000] $12,000 [$290] $358
Over [$6,000] $12,000 but
not over [$7,000] $14,000 [$273] $337
Over [$7,000] $14,000 but
not over [$8,000] $16,000 [$256] $316
Over [$8,000] $16,000 but
not over [$9,000] $18,000 [$239] $295
Over [$9,000] $18,000 but
not over [$10,000] $20,000 [$222] $274
Over [$10,000] $20,000 but
not over [$11,000] $22,000 [$205] $253
S. 3728 5
Over [$11,000] $22,000 but
not over [$12,000] $24,000 [$188] $232
Over [$12,000] $24,000 but
not over [$13,000] $26,000 [$171] $211
Over [$13,000] $26,000 but
not over [$14,000] $28,000 [$154] $190
Over [$14,000] $28,000 but
not over [$15,000] $30,000 [$137] $169
Over [$15,000] $30,000 but
not over [$16,000] $32,000 [$120] $148
Over [$16,000] $32,000 but
not over [$17,000] $34,000 [$103] $127
Over [$17,000] $34,000 but
not over [$18,000] $36,000 [$86] $106
(B) For all other qualified taxpayers the amount of the credit allow-
able under this subsection shall be fifty percent of excess real proper-
ty taxes or the excess of the real property tax equivalent determined as
follows:
Excess real property taxes are
the excess of real property tax
equivalent or the excess of
If household gross qualifying real property taxes over
income for the the following percentage of
taxable year is: household gross income:
___________________ __________________________________
[$3,000] $6,000 or less 3 1/2
Over [$3,000] $6,000 but not
over [$5,000] $10,000 4
Over [$5,000] $10,000 but not
over [$7,000] $14,000 4 1/2
Over [$7,000] $14,000 but not
over [$9,000] $18,000 5
Over [$9,000] $18,000 but not
over [$11,000] $22,000 5 1/2
Over [$11,000] $22,000 but not
over [$14,000] $28,000 6
Over [$14,000] $28,000 but not
over [$18,000] $36,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross The maximum
income for the credit is:
taxable year is:
___________________ __________________________________
[$1,000] $2,000 or less [$75] $163
Over [$1,000] $2,000 but
not over [$2,000] $4,000 [$73] $158
Over [$2,000] $4,000 but
not over [$3,000] $6,000 [$71] $154
Over [$3,000] $6,000 but
not over [$4,000] $8,000 [$69] $149
Over [$4,000] $8,000 but
not over [$5,000] $10,000 [$67] $145
Over [$5,000] $10,000 but
S. 3728 6
not over [$6,000] $12,000 [$65] $140
Over [$6,000] $12,000 but
not over [$7,000] $14,000 [$63] $136
Over [$7,000] $14,000 but
not over [$8,000] $16,000 [$61] $132
Over [$8,000] $16,000 but
not over [$9,000] $18,000 [$59] $128
Over [$9,000] $18,000 but
not over [$10,000] $20,000 [$57] $123
Over [$10,000] $20,000 but
not over [$11,000] $22,000 [$55] $119
Over [$11,000] $22,000 but
not over [$12,000] $24,000 [$53] $115
Over [$12,000] $24,000 but
not over [$13,000] $26,000 [$51] $110
Over [$13,000] $26,000 but
not over [$14,000] $28,000 [$49] $106
Over [$14,000] $28,000 but
not over [$15,000] $30,000 [$47] $102
Over [$15,000] $30,000 but
not over [$16,000] $32,000 [$45] $97
Over [$16,000] $32,000 but
not over [$17,000] $34,000 [$43] $93
Over [$17,000] $34,000 but
not over [$18,000] $36,000 [$41] $89
(4) If a qualified taxpayer occupies a residence for a period of less
than twelve months during the taxable year or occupies two or more resi-
dences during different periods in such taxable year, the credit allowed
pursuant to this subsection shall be computed in such manner as the [tax
commission] COMMISSIONER may, by regulation, prescribe in order to prop-
erly reflect the credit or portion thereof attributable to such resi-
dence or residences and such period or periods.
(5) The [tax commission] COMMISSIONER may prescribe that the credit
under this subsection shall be determined in whole or in part by the use
of tables prescribed by such [commission] COMMISSIONER. Such tables
shall set forth the credit to the nearest dollar.
(6) Only one credit per household and per qualified taxpayer shall be
allowed per taxable year under this subsection. When two or more
members of a household are able to meet the qualifications for a quali-
fied taxpayer, the credit shall be equally divided between or among such
individuals unless such individuals file with the [tax commission]
COMMISSIONER a written agreement among such individuals setting forth a
different division. Where two or more members of a household are able
to meet the qualifications of a qualified taxpayer and one of them is
sixty-five years of age or more OR HAS A PERMANENT AND TOTAL DISABILITY,
the credit which may be taken shall be the credit applicable to individ-
uals who have attained the age of sixty-five years.
(A) Provided, however, where a joint income tax return has been filed
pursuant to the provisions of section six hundred fifty-one by a quali-
fied taxpayer and his OR HER spouse (or where both spouses are qualified
taxpayers and have filed such joint return), the credit, or the portion
of the credit if divided, to which the husband and wife are entitled
shall be applied against the tax of both spouses and any overpayment
shall be made to both spouses.
(B) Where any return required to be filed pursuant to the provisions of
section six hundred fifty-one is combined with any return of tax imposed
S. 3728 7
pursuant to the authority of this chapter or any other law if such tax
is administered by the [tax commission] COMMISSIONER, the credit or the
portion of the credit if divided, allowed to the qualified taxpayer may
be applied by the [tax commission] COMMISSIONER toward any liability for
the aforementioned taxes.
(7) No credit shall be granted under this subsection:
(A) If household gross income for the taxable year exceeds [eighteen]
THIRTY-SIX 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 a property owner who owns real property FOR OVER TWO YEARS, the
full value of which exceeds [eighty-five thousand dollars] THE MEDIAN
FULL VALUE OF RESIDENTIAL REAL PROPERTY SALES WITHIN THE COUNTY WHERE IT
IS LOCATED, AS DETERMINED BY THE STATE BOARD OF REAL PROPERTY SERVICES,
OR THE MEDIAN FULL VALUE OF RESIDENTIAL REAL PROPERTY IN THE STATE, AS
DETERMINED BY THE STATE BOARD OF REAL PROPERTY SERVICES, WHICHEVER IS
LESS.
(D) To a tenant if the adjusted rent for the residence exceeds [four]
EIGHT hundred [fifty] dollars per month on average.
(E) 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.
(F) With respect to a residence that is wholly exempted from real
property taxation.
(G) To an individual who is not a resident individual of the state for
the entire taxable year.
(H) WHERE A HOUSEHOLD OR QUALIFIED TAXPAYER HAS CLAIMED AN EARNED
INCOME TAX CREDIT PURSUANT TO THIS SECTION.
(I) TO AN INDIVIDUAL WHOSE HOUSEHOLD GROSS INCOME IS MORE THAN EIGHTY
PERCENT OF THE STATE MEDIAN FAMILY INCOME.
(8) The right to claim a credit or the portion of a credit, where
such credit has been divided under this subsection, shall be personal to
the qualified taxpayer and shall not survive his OR HER death, but such
right may be exercised on behalf of a claimant by his OR HER legal guar-
dian or attorney in fact during his OR HER lifetime.
(9) Returns. If a qualified taxpayer is not required to file a return
pursuant to section six hundred fifty-one, a claim for a credit may be
taken on a return filed with the [tax commission] COMMISSIONER within
three years from the time it would have been required that a return be
filed pursuant to such section had the qualified taxpayer had a taxable
year ending on December thirty-first. Returns under this paragraph shall
be in such form as shall be prescribed by the [tax commission] COMMIS-
SIONER, which shall make available such forms and instructions for
filing such returns.
(10) Proof of claim. The [tax commission] COMMISSIONER may require a
qualified taxpayer to furnish the following information in support of
his claim for credit under this subsection: household gross income,
rent paid, name and address of owner or managing agent of the property
rented, real property taxes levied or that would have been levied in the
absence of an exemption from real property tax pursuant to section four
hundred sixty-seven of the real property tax law, the names of members
of the household and other qualifying taxpayers occupying the same resi-
dence and their identifying numbers including social security numbers,
S. 3728 8
household gross income, size and nature of property claimed as residence
and all other information which may be required by the [tax commission]
COMMISSIONER to determine the credit.
(11) Administration. The provisions of this article, including the
provisions of section six hundred fifty-three, six hundred fifty-eight,
and six hundred fifty-nine and the provisions of part six of this arti-
cle relating to procedure and administration, including the judicial
review of the decisions of the [tax commission] COMMISSIONER, except so
much of section six hundred eighty-seven which permits a claim for cred-
it or refund to be filed after the period provided for in paragraph nine
of this subsection and except sections six hundred fifty-seven, six
hundred eighty-eight and six hundred ninety-six, shall apply to the
provisions of this subsection in the same manner and with the same force
and effect as if the language of those provisions had been incorporated
in full into this subsection and had expressly referred to the credit
allowed or returns filed under this subsection, except to the extent
that any such provision is either inconsistent with a provision of this
subsection or is not relevant to this subsection. As used in such
sections and such part, the term "taxpayer" shall include a qualified
taxpayer under this subsection and, notwithstanding the provisions of
subsection (e) of section six hundred ninety-seven, where a qualified
taxpayer has protested the denial of a claim for credit under this
subsection and the time to file a petition for redetermination of a
deficiency or for refund has not expired, he OR SHE shall, subject to
such conditions as may be set by the [tax commission] COMMISSIONER,
receive such information (A) which is contained in any return filed
under this article by a member of his OR HER household for the taxable
year for which the credit is claimed, and (B) which the [tax commission]
COMMISSIONER finds is relevant and material to the issue of whether such
claim was properly denied. The [tax commission] COMMISSIONER shall have
the authority to promulgate such rules and regulations as may be neces-
sary for the processing, determination and granting of credits and
refunds under this subsection.
(12) The commissioner may request the cooperation of the state board
of real property services in carrying out the provisions of this
subsection. Such board may promulgate such rules and regulations,
subject to prior consultation with the commissioner, as may be necessary
to provide such assistance with respect to the determination of full
value of real property for purposes of the credit allowed under this
subsection.
(13) Notwithstanding any other provision of this article, the credit
allowed under this subsection shall be determined after the determi-
nation and application of any other credits permitted under the
provisions of this article.
(14) The commissioner [of taxation and finance] shall prepare a
preliminary written report after July thirty-first and a final written
report after December thirty-first of each calendar year, which shall
contain statistical information regarding the credits granted on or
before such dates under this subsection during such calendar year.
Copies of these reports shall be submitted by such commissioner to the
governor, the temporary president of the senate, the speaker of the
assembly, the chairman of the senate finance committee and the chairman
of the assembly ways and means committee within sixty days of July thir-
ty-first with respect to the preliminary report, and within forty-five
days of December thirty-first with respect to the final report. Such
reports shall contain, but need not be limited to, the number of credits
S. 3728 9
and the average amount of such credits allowed; and of those, the number
of credits and the average amount of such credits allowed to qualified
taxpayers in each county; and of those, the number of credits and the
average amount of such credits allowed to qualified taxpayers whose
household gross income falls within each of the household gross income
ranges set forth in paragraph three of this subsection; and of those,
the number of credits and the average amount of such credits allowed to
qualified taxpayers whose credit amount falls within credit amount rang-
es set forth in twenty-five dollar increments.
S 2. Paragraph 3 of subsection (e) of section 606 of the tax law, as
amended by section one of this act, is amended to read as follows:
(3) Determination of credit. (A) For qualified taxpayers who have
attained the age of sixty-five years or a permanent and total disability
as defined in section twenty-two of the internal revenue code before the
beginning of or during the taxable year the amount of the credit allow-
able under this subsection shall be fifty percent, or in the case of a
qualified taxpayer who has elected to include an additional amount
pursuant to subparagraph (E) of paragraph one of this subsection, twen-
ty-five percent, of the excess of real property taxes or the excess of
real property tax equivalent determined as follows:
Excess real property taxes are
the excess of real property tax
equivalent or the excess of
If household gross qualifying real property taxes over
income for the the following percentage of
taxable year is: household gross income:
___________________ __________________________________
$6,000 or less 3 1/2
Over $6,000 but not
over $10,000 4
Over $10,000 but not
over $14,000 4 1/2
Over $14,000 but not
over $18,000 5
Over $18,000 but not
over $22,000 5 1/2
Over $22,000 but not
over $28,000 6
Over $28,000 but not
over $36,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross The maximum
income for the credit is:
taxable year is:
___________________ __________________________________
$2,000 or less [$463] $550
Over $2,000 but
not over $4,000 [$442] $525
Over $4,000 but
not over $6,000 [$421] $500
Over $6,000 but
not over $8,000 [$400] $475
Over $8,000 but
S. 3728 10
not over $10,000 [$379] $450
Over $10,000 but
not over $12,000 [$358] $425
Over $12,000 but
not over $14,000 [$337] $400
Over $14,000 but
not over $16,000 [$316] $375
Over $16,000 but
not over $18,000 [$295] $350
Over $18,000 but
not over $20,000 [$274] $325
Over $20,000 but
not over $22,000 [$253] $300
Over $22,000 but
not over $24,000 [$232] $275
Over $24,000 but
not over $26,000 [$211] $250
Over $26,000 but
not over $28,000 [$190] $225
Over $28,000 but
not over $30,000 [$169] $200
Over $30,000 but
not over $32,000 [$148] $175
Over $32,000 but
not over $34,000 [$127] $150
Over $34,000 but
not over $36,000 [$106] $125
(B) For all other qualified taxpayers the amount of the credit allow-
able under this subsection shall be fifty percent of excess real proper-
ty taxes or the excess of the real property tax equivalent determined as
follows:
Excess real property taxes are
the excess of real property tax
equivalent or the excess of
If household gross qualifying real property taxes over
income for the the following percentage of
taxable year is: household gross income:
___________________ __________________________________
$6,000 or less 3 1/2
Over $6,000 but not
over $10,000 4
Over $10,000 but not
over $14,000 4 1/2
Over $14,000 but not
over $18,000 5
Over $18,000 but not
over $22,000 5 1/2
Over $22,000 but not
over $28,000 6
Over $28,000 but not
over $36,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross The maximum
S. 3728 11
income for the credit is:
taxable year is:
___________________ __________________________________
$2,000 or less [$163] $250
Over $2,000 but
not over $4,000 [$158] $243
Over $4,000 but
not over $6,000 [$154] $237
Over $6,000 but
not over $8,000 [$149] $230
Over $8,000 but
not over $10,000 [$145] $223
Over $10,000 but
not over $12,000 [$140] $217
Over $12,000 but
not over $14,000 [$136] $210
Over $14,000 but
not over $16,000 [$132] $203
Over $16,000 but
not over $18,000 [$128] $197
Over $18,000 but
not over $20,000 [$123] $190
Over $20,000 but
not over $22,000 [$119] $183
Over $22,000 but
not over $24,000 [$115] $177
Over $24,000 but
not over $26,000 [$110] $170
Over $26,000 but
not over $28,000 [$106] $163
Over $28,000 but
not over $30,000 [$102] $157
Over $30,000 but
not over $32,000 [$97] $150
Over $32,000 but
not over $34,000 [$93] $143
Over $34,000 but
not over $36,000 [$89] $137
S 3. This act shall take effect immediately; provided, however, that
section two of this act shall take effect January 1, 2010.