S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  414--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced   by   Sens.   FELDER,  AKSHAR,  BOYLE,  CARLUCCI,  GALLIVAN,
   MARCHIONE, MURPHY, PHILLIPS,  RANZENHOFER,  SERINO,  TEDISCO  --  read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee on Investigations and Government Operations  --  recommitted
   to  the  Committee  on  Investigations  and  Government  Operations in
   accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the tax law, in relation to increasing the exemption for
   pensions and annuities for certain persons
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph 3-a of subsection (c) of section 612 of the tax
 law, as amended by section 3 of part I of chapter  59  of  the  laws  of
 2015, is amended to read as follows:
   (3-a)  Pensions  and  annuities  received  by  an  individual  who has
 attained the age of fifty-nine  and  one-half,  not  otherwise  excluded
 pursuant to paragraph three of this subsection, to the extent includible
 in  gross  income  for federal income tax purposes, but not in excess of
 [twenty] TWENTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING  ON
 OR  AFTER  JANUARY FIRST, TWO THOUSAND NINETEEN, THIRTY THOUSAND DOLLARS
 FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND
 TWENTY,  THIRTY-FIVE  THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON
 OR AFTER JANUARY FIRST, TWO  THOUSAND  TWENTY-ONE,  AND  FORTY  thousand
 dollars  IN  EACH SUBSEQUENT YEAR, which are periodic payments attribut-
 able to personal services performed by  such  individual  prior  to  his
 retirement  from  employment,  which arise (i) from an employer-employee
 relationship or (ii) from contributions to a retirement plan  which  are
 deductible  for federal income tax purposes. However, the term "pensions
 and annuities" shall also include distributions received by an  individ-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD00555-04-8

 S. 414--A                           2
 
 ual who has attained the age of fifty-nine and one-half from an individ-
 ual  retirement  account or an individual retirement annuity, as defined
 in section four hundred eight of the internal revenue code, and distrib-
 utions  received by an individual who has attained the age of fifty-nine
 and one-half from self-employed individual and owner-employee retirement
 plans which qualify under section  four  hundred  one  of  the  internal
 revenue code, whether or not the payments are periodic in nature. Never-
 theless,  the  term  "pensions and annuities" shall not include any lump
 sum distribution, as defined in subparagraph (D) of  paragraph  four  of
 subsection  (e) of section four hundred two of the internal revenue code
 and taxed under section six hundred  three  of  this  article.  Where  a
 husband  and  wife  file  a  joint state personal income tax return, the
 modification provided for in this paragraph shall be computed as if they
 were filing separate state personal income tax returns. Where a  payment
 would otherwise come within the meaning of the term "pensions and annui-
 ties"  as  set  forth  in this paragraph, except that such individual is
 deceased, such payment shall, nevertheless, be treated as a  pension  or
 annuity  for  purposes  of this paragraph if such payment is received by
 such individual's beneficiary.
   § 2. This act shall take effect immediately.