NY State Senate Bill 2021-S92

Senate Bill S92

2021-2022 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 Budget And Revenue 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 05, 2022	referred to budget and revenue
Jan 06, 2021	referred to budget and revenue

2021-S92 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6592
2019-2020: S91
2023-2024: S4056

2021-S92 (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.

2021-S92 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S92

SPONSOR: KAMINSKY
 
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 cover-
age 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. This would be capped at $5 million.

Section 2: Sets the effective date.

 
JUSTIFICATION:

The National Flood Insurance Program (NFIP) is a vital program for New
Yorkers who reside in high-risk areas are only able to obtain flood
insurance through the NFIP. The NFIP is a long lasting federal program
that has an accumulated debt of $20.5 billion, after having $16 billion
canceled, and continues to race towards reaching its debt cap. 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 have been able to benefit from federal subsidies in the past
that were intended to encourage homeowners at risk of flooding to buy
insurance. In addition to the premium increases, with any subsidies
phasing out, this creates 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 homeown-
ers are working hard to decrease their insurance costs through reno-
vations 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 insur-
ance coverage.

 
LEGISLATIVE HISTORY:

2020: S91, Kaminksy. Referred to Investigation and Government Oper-
ations. 2019: S91, Kaminksy. Referred to Investigation and Government
Operations. 2018: S6592, Kaminsky. Referred to Investigation and Govern-
ment Operations. 2017: S6592, Kaminsky.  Referred to Rules.

 
FISCAL IMPLICATIONS:

If enacted, this measure would reduce State revenue by up to $5 million.

 
EFFECTIVE DATE:
Shall take effect immediately and shall apply to taxable years beginning
on or after January 1, 2022.

2021-S92 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    92
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sen. KAMINSKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 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 (kkk) to read as follows:
   (KKK) 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.
   (4)  CREDIT  LIMITATION.  THE  AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
 PURSUANT TO THIS SUBSECTION SHALL NOT EXCEED FIVE MILLION DOLLARS IN ANY
 TAXABLE YEAR.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD02218-01-1

 S. 92                               2
 
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2022.  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.

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