NY State Senate Bill 2017-S6592

Senate Bill S6592

2017-2018 Legislative Session

Creates a personal income tax credit for taxpayers who pay an excess premium paid during the applicable tax year for flood insurance providing coverage on the taxpayer's primary residence

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 03, 2018	referred to investigations and government operations
Jun 06, 2017	referred to rules

2017-S6592 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S91
2021-2022: S92
2023-2024: S4056

2017-S6592 (ACTIVE) - Summary

Allows an individual taxpayer to claim a credit against their income tax for excess premium paid during the applicable tax year for flood insurance providing coverage on the taxpayer's primary residence; authorizes the commissioner of taxation and finance to promulgate any necessary rules and regulations.

2017-S6592 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6592

 TITLE OF BILL :  An act to amend the tax law, in relation to allowing
an individual taxpayer to claim a credit against their income tax for
excess premium paid during the applicable tax year for flood insurance
providing coverage on the taxpayer's primary residence

 PURPOSE :

To establish a flood insurance tax credit for the primary residence of
New Yorkers

 SUMMARY OF PROVISIONS :

Section 1: Amends section 606 of the tax law to add a new subsection
(ccc) creating the flood insurance tax credit. The amount of the
credit may not exceed $1,250 for any excess premium paid by the
taxpayer that exceeds 5% of the taxpayer's adjusted gross income. If
the amount of the credit allowed exceeds the taxpayer's tax for a
given year, a taxpayer can opt to have it refunded to them or credited
towards future tax years.

Section 2: Sets the effective date

 JUSTIFICATION :

Currently, there is enormous uncertainty in the future of flood
insurance due to the September 30th, 2017 deadline for Congress to
extend the National Flood Insurance Program (NFIP).

Most New Yorkers who reside in high-risk areas are only able to obtain
flood insurance through the NFIP.

The NFIP is a 49-year-old federal program that is currently almost $25
billion in debt due to major storms such as Irene, Katrina, and Sandy.

In order to bring stability to the NFIP, many Long Island coastal
homeowners are seeing flood insurance premium increases of up to 18% a
year.

New Yorkers were previously able to benefit from federal subsidies
that were intended to encourage homeowners at risk of flooding to buy
insurance. In addition to the premium increases, these subsidies are
being phased out creating even more financial pressure on homeowners.

Flood insurance policies can cost upwards of several thousand dollars
a year and even more for homeowners who live in coastal areas. This
cost can play a significant role in the costs of homeownership. Many
homeowners are working hard to decrease their insurance costs through
renovations to their homes to raise them out of the reach of
floodwater.

By establishing a State tax credit for flood insurance, New York State
can take a positive step in helping more New Yorkers to afford flood
insurance coverage.

 LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

 If enacted, this measure would reduce State revenue by $6.5 million
in SFY 2018-19 and $26 million annually thereafter.

 EFFECTIVE DATE :
Shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2018.

2017-S6592 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6592
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 6, 2017
                                ___________
 
 Introduced  by Sen. KAMINSKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law,  in  relation  to  allowing  an  individual
   taxpayer to claim a credit against their income tax for excess premium
   paid  during  the  applicable  tax  year for flood insurance providing
   coverage on the taxpayer's primary residence
 
   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 (ccc) to read as follows:
   (CCC) FLOOD INSURANCE TAX CREDIT. (1) ALLOWANCE OF CREDIT. A  TAXPAYER
 SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH TWO
 OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE  FOR  EXCESS
 PREMIUM  PAID DURING THE APPLICABLE TAX YEAR FOR FLOOD INSURANCE PROVID-
 ING COVERAGE ON THE TAXPAYER'S PRIMARY RESIDENCE.
   (2) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE  OF
 THIS  SUBSECTION  SHALL BE IN AN AMOUNT EQUAL TO THE EXCESS PREMIUM PAID
 BY THE TAXPAYER, THE AMOUNT BY  WHICH  THE  PREMIUM  PAID  EXCEEDS  FIVE
 PERCENT  OF  THE  TAXPAYER'S ADJUSTED GROSS INCOME.  SUCH CREDIT FOR ANY
 TAXABLE YEAR MAY NOT EXCEED ONE THOUSAND TWO HUNDRED FIFTY DOLLARS.
   (3) 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 OR ANY UNUSED CREDIT MAY BE  CARRIED  FORWARD  FOR
 FIVE SUCCEEDING TAXABLE YEARS.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2018.  The commissioner of taxa-
 tion and finance is authorized to issue any rules and regulations neces-
 sary for the implementation of this act on or before the effective date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10214-02-7

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