S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6868
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 8, 2023
                                ___________
 
 Introduced  by M. of A. ALVAREZ -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN ACT to amend the tax law, in relation to establishing  a  tax  credit
   for rent paid on the personal residence of certain taxpayers
 
   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 (bbb) to read as follows:
   (BBB) RENT RELIEF CREDIT. (1) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAY-
 ER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN PARAGRAPH TWO
 OF THIS SUBSECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  COMPUTATION  OF CREDIT.  THE CREDIT ALLOWED UNDER THIS SUBSECTION
 SHALL BE ONE HUNDRED PERCENT OF THE EXCESS  OF  THIRTY  PERCENT  OF  THE
 TAXPAYER'S GROSS INCOME SUCH TAXPAYER PAYS IN RENT FOR SUCH TAXABLE YEAR
 FOR TAXPAYERS WHOSE INCOME IS LESS THAN FIFTY PERCENT OF THE AREA MEDIAN
 INCOME.
   (3) ADVANCE PAYMENTS. (A) THE COMMISSIONER SHALL ESTABLISH A MECHANISM
 BY  WHICH  A  QUALIFIED TAXPAYER MAY APPLY FOR AN ADVANCE PAYMENT OF THE
 CREDIT AUTHORIZED BY THIS SUBSECTION, PROVIDED THAT:
   (I) A QUALIFIED TAXPAYER WHO FAILS TO APPLY FOR AN ADVANCE PAYMENT  OF
 SUCH  CREDIT  BY  THE DATE ON WHICH THE COMMISSIONER REQUIRES, MAY APPLY
 FOR AND RECEIVE SUCH CREDIT IN THE MANNER PRESCRIBED BY THE  COMMISSION-
 ER, PROVIDED THAT SUCH APPLICATION SHALL BE MADE WITHIN THREE YEARS FROM
 THE  TIME  THAT A RETURN FOR THE TAXABLE YEAR WOULD HAVE HAD TO BE FILED
 PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE. IF  APPROVED,
 SUCH  PAYMENT  SHALL  BE  ISSUED  AS  SOON  AS  IS PRACTICABLE AFTER THE
 SUBMISSION OF THE APPLICATION BUT SHALL NOT BE SUBJECT TO THE PROCESSING
 SCHEDULE PRESCRIBED BY SUBPARAGRAPH (B) OF THIS PARAGRAPH, AND
   (II) A QUALIFIED TAXPAYER WHO HAS APPLIED FOR AN  ADVANCE  PAYMENT  OF
 SUCH  CREDIT  IN  A  TAXABLE  YEAR  MAY CONTINUE TO RECEIVE SUCH ADVANCE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10472-01-3
 A. 6868                             2
              

 
 PAYMENTS IN FUTURE TAXABLE YEARS WITHOUT REAPPLYING AS LONG AS HE OR SHE
 REMAINS ELIGIBLE THEREFOR.
   (B)  THE COMMISSIONER SHALL DETERMINE THE ELIGIBILITY OF TAXPAYERS FOR
 THIS CREDIT UTILIZING  THE  INFORMATION  AVAILABLE  TO  HIM  OR  HER  AS
 OBTAINED  FROM THE APPLICATIONS SUBMITTED AND FROM SUCH OTHER SOURCES AS
 THE COMMISSIONER DEEMS RELIABLE AND  APPROPRIATE.  FOR  THOSE  TAXPAYERS
 WHOM  THE  COMMISSIONER  HAS  DETERMINED  ELIGIBLE  FOR THIS CREDIT, THE
 COMMISSIONER SHALL ADVANCE A PAYMENT OF UP TO  ONE  HALF  OF  THE  TOTAL
 AMOUNT OF THE TOTAL CREDIT OWED.
   (C) A TAXPAYER WHO HAS FAILED TO RECEIVE AN ADVANCE PAYMENT THAT HE OR
 SHE  BELIEVES  WAS  DUE  TO  HIM  OR HER, OR WHO HAS RECEIVED AN ADVANCE
 PAYMENT THAT HE OR SHE BELIEVES IS LESS THAN THE AMOUNT THAT WAS DUE  TO
 HIM  OR  HER,  MAY REQUEST PAYMENT OF THE CLAIMED DEFICIENCY IN A MANNER
 PRESCRIBED BY THE COMMISSIONER.
   (D) AN ADVANCE PAYMENT OF CREDIT PROVIDED PURSUANT TO THIS  SUBSECTION
 THAT EXCEEDS THE TAXPAYER'S QUALIFYING TAXES FOR THAT TAXABLE YEAR SHALL
 BE ADDED BACK AS TAX ON THE INCOME TAX RETURN FOR THAT TAXABLE YEAR.
   (E)  IF  THE  COMMISSIONER DETERMINES AFTER ISSUING AN ADVANCE PAYMENT
 THAT IT WAS ISSUED IN AN EXCESSIVE AMOUNT OR TO AN INELIGIBLE OR  INCOR-
 RECT  PARTY,  THE  COMMISSIONER SHALL BE EMPOWERED TO UTILIZE ANY OF THE
 PROCEDURES FOR COLLECTION, LEVY AND LIEN  OF  PERSONAL  INCOME  TAX  SET
 FORTH  IN  THIS ARTICLE, ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN
 THE PROVISIONS OF THIS ARTICLE, AND ANY OTHER LAW AS MAY BE  APPLICABLE,
 TO RECOUP THE IMPROPERLY ISSUED AMOUNT.
   (4)  LIMITATION  ON  AMOUNT OF CREDIT. FOR THE PURPOSES OF DETERMINING
 THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION, WITH RESPECT  TO
 A  PRIMARY RESIDENCE FOR THE TAXABLE YEAR, THERE SHALL NOT BE TAKEN INTO
 ACCOUNT RENT IN EXCESS OF AN AMOUNT EQUAL TO ONE HUNDRED  FIFTY  PERCENT
 OF  THE FAIR MARKET RENT, INCLUDING THE UTILITY ALLOWANCE, APPLICABLE TO
 SUCH RESIDENCE, AS MOST RECENTLY PUBLISHED, AS OF THE BEGINNING  OF  THE
 TAXABLE  YEAR,  BY  THE  UNITED  STATES  DEPARTMENT OF HOUSING AND URBAN
 DEVELOPMENT.
   (5) 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.
   (6) ADMINISTRATION. THE  COMMISSIONER  SHALL  HAVE  THE  AUTHORITY  TO
 PROMULGATE  SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE PROC-
 ESSING, DETERMINATION AND GRANTING OF CREDITS UNDER THIS SUBSECTION.
   (7) DEFINITIONS. AS USED IN THIS SUBSECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (A) "QUALIFIED TAXPAYER" SHALL MEAN AN INDIVIDUAL WHO LEASES THE INDI-
 VIDUAL'S PRIMARY RESIDENCE DURING THE TAXABLE YEAR, WHO PAYS  RENT  WITH
 RESPECT TO SUCH RESIDENCE AND WHOSE INCOME IS LESS THAN FIFTY PERCENT OF
 THE AREA MEDIAN INCOME.
   (B) "RENT" SHALL INCLUDE ANY AMOUNT PAID FOR UTILITIES.
   (C)  "GROSS  INCOME" SHALL MEAN THE FEDERAL ADJUSTED GROSS INCOME OF A
 TAXPAYER.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the  date  on  which it shall have become a law, and shall apply to
 taxable years commencing on and after such date.  Effective immediately,
 the addition, amendment and/or repeal of any rule or  regulation  neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.