BILL NUMBER: S6951

SPONSOR: FELDER
 
TITLE OF BILL:  An act to amend the tax law, in relation to establish-
ing a tax credit equal to any increase in federal tax liability due to
residents no longer being able to deduct state and local taxes from
their federal income

 
PURPOSE:

To create a state income tax credit equal to any increase in a New York
State resident's federal tax liability due to changes in the federal tax
code.

 
SUMMARY OF PROVISIONS:

Section one adds a new subsection ccc to section 606 of the tax law that
provides a credit for the difference in a resident's current federal tax
liability and what such resident's federal tax liability would have been
if it was calculated by using the IRS code on November 15t, 2017.

              

Section two is the enacting clause.

 
JUSTIFICATION:

The U.S. Congress is currently debating a sweeping overhaul of the
Federal tax code. Among the proposals being debated is the elimination
of the deduction for state and local income, sales and property taxes,
or SALT. About 3.3 million people in New York state take advantage of
the state and local tax deduction, according to the Urban-Brookings Tax
Policy Center.

The loss of the SALT deduction would have a serious impact on many New
York State residents. Although it is currently unclear how the final tax
overhaul will look, whatever is included shouldn't result in a tax
increase for New York's already over-taxed and over-fined residents. If
the federal government raises taxes, then it's up to the State Govern-
ment to step in and cover the increase. If NYS Residents see an increase
in their federal tax bill due to the federal tax overhaul, this legis-
lation creates a state income tax credit that will cover the cost.

This Bill will protect every hardworking New Yorker from the uncertainty
and potential negative consequences of Washington's tax overhaul.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.