S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7180
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 3, 2018
                                ___________
 
 Introduced  by  Sen. KENNEDY -- 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  establishing  a  sanitary
   sewer lateral pipe replacement or repair credit

   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)  SANITARY SEWER LATERAL PIPE REPLACEMENT CREDIT. (1) GENERAL. AN
 INDIVIDUAL TAXPAYER SHALL BE ALLOWED A CREDIT FOR TAXABLE  YEARS  BEGIN-
 NING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN AGAINST THE TAX
 IMPOSED BY THIS ARTICLE FOR THE COSTS TO REPAIR  OR  REPLACE  A  LATERAL
 SANITARY SEWER PIPE, WHEN SUCH REPAIR OR REPLACEMENT IS RECOMMENDED BY A
 CERTIFIED PLUMBER OR THE PRESIDING MUNICIPALITY. THE AMOUNT OF THE CRED-
 IT SHALL BE TWENTY-FIVE PERCENT OF THE TOTAL COST OF REPAIR OR REMOVAL.
   (2)  LATERAL  REPAIR  AND  REPLACEMENT  COSTS.  (A) THE TERM "COSTS OF
 REPLACEMENT" INCLUDES THE COST OF AN  ASSESSMENT  FROM  A  PLUMBER,  ANY
 INITIAL APPRAISALS, LABOR COSTS, DISPOSAL FEES, AND CLEANUP FEES; EXCEPT
 ANY  STATE  OR LOCAL SALES TAX APPLICABLE TO THE SERVICES PERFORMED. (B)
 THE TERM "COSTS OF REPAIR" INCLUDES THE COST OF  AN  ASSESSMENT  FROM  A
 PLUMBER,  ANY  INITIAL  APPRAISALS,  LABOR  COSTS,  DISPOSAL  FEES,  AND
 FOLLOW-UP FEES; EXCEPT ANY STATE OR LOCAL SALES TAX  APPLICABLE  TO  THE
 SERVICES.
   (3)  AMOUNT  OF  CREDIT.  THE  AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
 UNDER THIS SUBSECTION IN ANY  CALENDAR  YEAR  STATEWIDE  SHALL  BE  FIVE
 MILLION DOLLARS.
   (4)  LATERAL REPAIR OR REPLACEMENT FOR QUALIFIED TAXPAYERS. A PROPERTY
 OWNER WHO INCURS COSTS FOR REPAIRING OR REPLACING  LATERAL  SEWER  PIPES
 MUST BE REPLACING OR REPAIRING THE LATERAL PIPE LOCATED ON A RESIDENTIAL
 PROPERTY OR MIXED-USE PROPERTY, WHICH IS:
   (A) LOCATED IN THIS STATE;
   (B) OWNED BY THE TAXPAYER;
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14010-01-7

 S. 7180                             2
 
   (C) USED BY THE TAXPAYER AS THEIR PRINCIPAL RESIDENCE; AND
   (D)  OWNED  BY  A  TAXPAYER  WITH  A HOUSEHOLD INCOME OF LESS THAN TWO
 HUNDRED FIFTY THOUSAND DOLLARS.
   (5) WHEN CREDIT ALLOWED. THE CREDIT PROVIDED FOR  IN  THIS  SUBSECTION
 SHALL  BE  ALLOWED  WITH  RESPECT  TO THE TAXABLE YEAR, COMMENCING AFTER
 JANUARY FIRST, TWO THOUSAND NINETEEN IN WHICH THE WORK IS COMPLETED  AND
 PAID FOR.
   (6)  CARRYOVER  OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS
 OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION  FOR  ANY  TAXABLE  YEAR
 SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
 CARRIED  OVER  TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR
 WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
 TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   § 2. This act shall take effect January 1, 2019, and  shall  apply  to
 taxable years commencing on or after such effective date.