S T A T E   O F   N E W   Y O R K
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                                  5399

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 18, 2011
                               ___________

Introduced by M. of A. BRONSON, SCHROEDER -- Multi-Sponsored by -- M. of
  A.  BOYLAND  --  read  once  and referred to the Committee on Ways and
  Means

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 TAXPAYER
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 CRED-
IT 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07917-01-1
              

A. 5399                             2

CREDIT AND WHO IS ENROLLED IN A FULL-TIME OR PART-TIME ACADEMIC  PROGRAM
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 TWELVE, 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
(h) to read as follows:
  (H)  FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, 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, 2014  and  shall  expire  and  be
deemed repealed December 31, 2019.