NY State Senate Bill 2009-S2720

Senate Bill S2720

2009-2010 Legislative Session

Provides earned income tax credit to youth workers, increases standard deduction for individuals 18 to 24, and provides for deduction of student loan interest

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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
Jan 06, 2010	referred to investigations and government operations
Feb 27, 2009	referred to investigations and government operations

2009-S2720 (ACTIVE) - Details

See Assembly Version of this Bill:: A4875
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§606, 614 & 615, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A5399
2013-2014: A2617
2015-2016: A7891
2017-2018: A2108
2019-2020: A1055
2021-2022: A1080
2023-2024: A477

2009-S2720 (ACTIVE) - Summary

Provides an earned income tax credit to youth workers, increases the standard deduction for individuals eighteen to twenty-four years of age, and provides for the deduction of student loan interest, and provides for the expiration of such provisions.

2009-S2720 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2720

 TITLE OF BILL :
An act to amend the tax law, in relation to providing an earned income
tax credit to youth workers, increasing the standard deduction and
providing for the deduction of student loan interest; and providing
for the repeal of such provisions upon expiration thereof


 PURPOSE OR GENERAL IDEA OF THE BILL :
To provide earned income tax credit to youth workers, increase the
standard deduction for individuals 18 to 24, and provide for the
deduction of student loan interest.

 SUMMARY OF SPECIFIC PROVISIONS :
Section 1 amends Section 606 of the tax law by adding a new subsection
d-2 creating the earned income tax credit for youth workers. The
credit allowed is equal to that allowed to a taxpayer under section 32
of the internal revenue code. This section sets the qualifications the
taxpayer must satisfy in order to be eligible for the credit.

Section 2 amends subsection a of section 614 of the tax law by
providing a standard deduction of ten thousand dollars by a New York
state resident who is between the ages of eighteen and twenty-four and
setting other qualifications.

Section 3 adds a new subsection g to section 615 of the tax law by
providing a deduction for interest paid on qualified education loans.

Section 4 is the effective date.

 JUSTIFICATION :
New York State tax law does not provide exemptions for young,
independent adults ages 17-24. This age group is often ignored and
left out of exemptions, left with lower income deduction rates and not
provided the benefits on par with the Federal government on
student-loan deductions. Our youngest population of adults deserves
tax relief on the same level as the rest of our independent residents
throughout the state. New York is dealing with an exodus of younger
adults seeking greater economic opportunities in other states.
Because of the loss in population, it is in the best interest of the
state to try to assist these independent young workers and students
and encourage them to stay in the state to be contributing members to
New York State's improvement initiatives and economic growth.

 LEGISLATIVE HISTORY :
A11826 of 2008: Referred Ways & Means

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2012 and shall expire and be
deemed repealed December 31, 2017.

2009-S2720 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2720

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 27, 2009
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to providing an  earned  income
  tax  credit  to  youth  workers, increasing the standard deduction and
  providing for the deduction of student loan  interest;  and  providing
  for the repeal of such provisions upon expiration thereof

  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 (d-2) to read as follows:
  (D-2)  EARNED INCOME TAX CREDIT FOR YOUTH WORKERS. (1) A TAX DESCRIBED
IN PARAGRAPH TWO OF THIS SUBSECTION SHALL BE ALLOWED A CREDIT  EQUAL  TO
THE  PRODUCT OF ONE AND THREE-TENTHS AND THE AMOUNT OF THE EARNED INCOME
TAX CREDIT THAT WOULD HAVE BEEN ALLOWED TO THE TAXPAYER UNDER SECTION 32
OF THE INTERNAL REVENUE CODE, IF THE TAXPAYER HAD ATTAINED  THE  MINIMUM
AGE  OF  ELIGIBILITY  FOR  SUCH  EARNED  INCOME  TAX CREDIT SET FORTH IN
SECTION 32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE.
  (2) TO BE ALLOWED A CREDIT UNDER  THIS  SUBSECTION,  A  TAXPAYER  MUST
SATISFY ALL OF THE FOLLOWING QUALIFICATIONS:
  (A)  THE  TAXPAYER MUST BE A RESIDENT TAXPAYER WHO IS NOT CLAIMED AS A
DEPENDENT OF ANOTHER TAXPAYER.
  (B) THE TAXPAYER MUST HAVE ATTAINED THE AGE OF SEVENTEEN AND MUST  NOT
HAVE  ATTAINED  THE MINIMUM AGE AT WHICH A TAXPAYER IS QUALIFIED FOR THE
EARNED  INCOME  TAX  CREDIT  AS  SUCH  AGE  IS  SET  FORTH  IN   SECTION
32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE.
  (C)  THE TAXPAYER MUST NOT BE THE CUSTODIAL OR NON-CUSTODIAL PARENT OF
A MINOR CHILD OR CHILDREN.
  (3) NOTHING IN THIS SECTION SHALL BE DEEMED TO PROHIBIT THE QUALIFICA-
TIONS OF A TAXPAYER WHO IS OTHERWISE ELIGIBLE FOR THE EARNED INCOME  TAX
CREDIT  AND WHO IS ENROLLED IN A FULL-TIME OR PART-TIME ACADEMIC PROGRAM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07422-01-9

S. 2720                             2

LEADING TO COMPLETION OF A  HIGH  SCHOOL  DIPLOMA,  GENERAL  EQUIVALENCY
DIPLOMA,  POST-SECONDARY CERTIFICATE OR WORK READINESS CREDENTIAL, ASSO-
CIATE DEGREE OR BACCALAUREATE DEGREE.
  (4)  REPORTS.  THE  COMMISSIONER  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  PRESI-
DENT  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 THIRTY-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 AND THE AVERAGE AMOUNT OF SUCH
CREDITS ALLOWED.  SUCH INFORMATION SHALL INCLUDE THE NUMBER  OF  CREDITS
AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED; AND OF THOSE, THE NUMBER
OF  CREDITS AND THE AVERAGE AMOUNTS OF SUCH CREDITS ALLOWED TO TAXPAYERS
IN EACH COUNTY.
  S 2. Subsection (a) of section 614 of the tax law, as amended by chap-
ter 170 of the laws of 1994, is amended to read as follows:
  (a) Unmarried individual. For taxable years beginning  after  nineteen
hundred  ninety-six, the New York standard deduction of a resident indi-
vidual who is not married nor the head of a household  nor  a  surviving
spouse nor an individual whose federal exemption amount is zero shall be
seven  thousand  five  hundred  dollars;  for taxable years beginning in
nineteen hundred ninety-six, such  standard  deduction  shall  be  seven
thousand  four  hundred dollars; for taxable years beginning in nineteen
hundred ninety-five, such standard deduction shall be six  thousand  six
hundred  dollars; and for taxable years beginning after nineteen hundred
eighty-nine and  before  nineteen  hundred  ninety-five,  such  standard
deduction  shall  be  six  thousand dollars. FOR TAXABLE YEARS BEGINNING
AFTER TWO THOUSAND TEN, THE NEW YORK STANDARD DEDUCTION  OF  A  RESIDENT
INDIVIDUAL  WHO  IS BETWEEN THE AGES OF EIGHTEEN AND TWENTY-FOUR AND WHO
IS NOT MARRIED NOR THE HEAD OF A HOUSEHOLD NOR A SURVIVING SPOUSE NOR AN
INDIVIDUAL WHOSE FEDERAL EXEMPTION AMOUNT IS ZERO SHALL BE TEN  THOUSAND
DOLLARS.
  S  3. Section 615 of the tax law is amended by adding a new subsection
(g) to read as follows:
  (G) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO  THOU-
SAND  TEN,  IN THE CASE OF A RESIDENT INDIVIDUAL, THERE SHALL BE ALLOWED
AS A DEDUCTION FOR THE TAXABLE YEAR AN AMOUNT EQUAL TO THE INTEREST PAID
BY THE TAXPAYER DURING THE TAXABLE YEAR ON ANY QUALIFIED EDUCATION  LOAN
TO  THE  EXTENT  AND  AS PROVIDED IN SECTION 221 OF THE INTERNAL REVENUE
CODE.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2012  and  shall  expire  and  be
deemed repealed December 31, 2017.

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