S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8308
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             November 27, 2023
                                ___________
 
 Introduced  by M. of A. WALSH -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in  relation  to  establishing  the  retire
   strong tax 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 (ppp) to read as follows:
   (PPP) RETIRE STRONG TAX CREDIT. (1) FOR PURPOSES OF THIS SUBSECTION:
   (A)  "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
 IS SIXTY-FIVE YEARS OF AGE OR OLDER DURING THE TAX YEAR THEY  FILE;  WHO
 OWNED  AND  PRIMARILY RESIDED FOR SIX MONTHS OR MORE OF THE TAXABLE YEAR
 IN REAL PROPERTY  THAT  EITHER  RECEIVED  THE  ENHANCED  STAR  EXEMPTION
 AUTHORIZED  BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
 LAW, OR THAT QUALIFIED SUCH TAXPAYER TO RECEIVE THE ENHANCED SCHOOL  TAX
 RELIEF CREDIT AUTHORIZED BY SUBSECTION (EEE) OF THIS SECTION.
   (B)  "QUALIFIED  GROSS  INCOME"  MEANS  THE ADJUSTED GROSS INCOME OF A
 QUALIFIED TAXPAYER FOR THE TAXABLE YEAR FOR FEDERAL INCOME TAX  PURPOSES
 AND,  FOR TAXABLE YEAR TWO THOUSAND TWENTY-THREE COMPUTED WITHOUT REGARD
 TO THE LAST SENTENCE OF SUBSECTION (A) OF SECTION SIX HUNDRED  SEVEN  OF
 THIS  PART.  IN COMPUTING QUALIFIED GROSS INCOME, THE NET AMOUNT OF LOSS
 REPORTED ON FEDERAL SCHEDULE C, D, E, OR F SHALL NOT EXCEED THREE  THOU-
 SAND  DOLLARS  PER  SCHEDULE.  IN  ADDITION, THE NET AMOUNT OF ANY OTHER
 SEPARATE CATEGORY OF LOSS SHALL NOT EXCEED THREE THOUSAND  DOLLARS.  THE
 AGGREGATE  AMOUNT  OF  ALL  LOSSES INCLUDED IN COMPUTING QUALIFIED GROSS
 INCOME SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS.
   (C) "RESIDENCE" MEANS A DWELLING IN THIS STATE OWNED BY  THE  TAXPAYER
 AND USED BY THE TAXPAYER AS HIS OR HER PRIMARY RESIDENCE, AND SO MUCH OF
 THE LAND ABUTTING IT, NOT EXCEEDING ONE ACRE, AS IS REASONABLY NECESSARY
 FOR  USE  OF  THE  DWELLING  AS  A  HOME, AND MAY CONSIST OF A PART OF A
 MULTI-DWELLING OR MULTI-PURPOSE  BUILDING  INCLUDING  A  COOPERATIVE  OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11859-01-3
              

 A. 8308                             2
 
 CONDOMINIUM.  RESIDENCE  INCLUDES  A TRAILER OR MOBILE HOME, USED EXCLU-
 SIVELY FOR RESIDENTIAL PURPOSES AND DEFINED AS REAL PROPERTY PURSUANT TO
 PARAGRAPH (G) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED  TWO  OF  THE
 REAL PROPERTY TAX LAW.
   (D)  "QUALIFYING  REAL  PROPERTY TAXES" MEANS ALL REAL PROPERTY TAXES,
 SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE  OF  PENAL-
 TIES  AND  INTEREST,  LEVIED  BY  A TAXING JURISDICTION ON THE RESIDENCE
 OWNED AND OCCUPIED BY A QUALIFIED TAXPAYER AND  PAID  BY  THE  QUALIFIED
 TAXPAYER  DURING THE TAXABLE YEAR, PROVIDED THAT TO THE EXTENT THE TOTAL
 AMOUNT OF REAL PROPERTY TAXES SO PAID INCLUDES  SCHOOL  DISTRICT  TAXES,
 THE  AMOUNT  OF  THE SCHOOL TAX RELIEF (STAR) CREDIT CLAIMED PURSUANT TO
 SUBSECTION (EEE) OF THIS SECTION, IF ANY, SHALL BE  DEDUCTED  FROM  SUCH
 AMOUNT.
   A  QUALIFIED  TAXPAYER MAY ELECT TO INCLUDE ANY ADDITIONAL AMOUNT THAT
 WOULD HAVE BEEN LEVIED BY A TAXING JURISDICTION AND PAID BY  THE  QUALI-
 FIED TAXPAYER IN THE ABSENCE OF AN EXEMPTION FROM REAL PROPERTY TAXATION
 PURSUANT  TO  SECTION  FOUR HUNDRED SIXTY-SEVEN OF THE REAL PROPERTY TAX
 LAW. IF TENANT-STOCKHOLDERS IN A COOPERATIVE  HOUSING  CORPORATION  HAVE
 MET  THE  REQUIREMENTS  OF  SECTION  TWO HUNDRED SIXTEEN OF THE INTERNAL
 REVENUE CODE BY WHICH THEY ARE  ALLOWED  A  DEDUCTION  FOR  REAL  ESTATE
 TAXES,  THE AMOUNT OF TAXES SO ALLOWABLE, OR WHICH WOULD BE ALLOWABLE IF
 THE TAXPAYER HAD FILED RETURNS ON A CASH BASIS, SHALL BE QUALIFYING REAL
 PROPERTY TAXES. IF A RESIDENCE IS AN INTEGRAL PART  OF  A  LARGER  UNIT,
 QUALIFYING  REAL  PROPERTY TAXES SHALL BE LIMITED TO THAT AMOUNT OF SUCH
 TAXES PAID AS MAY BE REASONABLY APPORTIONED  TO  SUCH  RESIDENCE.  IF  A
 TAXPAYER OWNED AND OCCUPIED TWO RESIDENCES IN THE STATE DURING DIFFERENT
 PERIODS  IN  THE SAME TAXABLE YEAR, QUALIFYING REAL PROPERTY TAXES SHALL
 BE THE SUM OF THE PRORATED QUALIFYING REAL PROPERTY  TAXES  ATTRIBUTABLE
 TO  THE  TAXPAYER DURING THE PERIODS SUCH TAXPAYER OCCUPIED EACH OF SUCH
 RESIDENCES. A TAXPAYER WHO OWNED AND OCCUPIED A RESIDENCE IN  THE  STATE
 FOR  PART  OF  THE  TAXABLE YEAR AND RENTED A RESIDENCE IN THE STATE FOR
 PART OF THE SAME TAXABLE YEAR, MAY INCLUDE THE PRORATION  OF  QUALIFYING
 REAL  PROPERTY  TAXES  ON  THE  RESIDENCE  OWNED. PROVIDED, HOWEVER, FOR
 PURPOSES OF THE CREDIT ALLOWED UNDER THIS  SUBSECTION,  QUALIFYING  REAL
 PROPERTY  TAXES  MAY  BE  INCLUDED  BY  A QUALIFIED TAXPAYER ONLY TO THE
 EXTENT THAT SUCH TAXPAYER OR THE SPOUSE OF SUCH TAXPAYER  OCCUPIED  SUCH
 RESIDENCE FOR ONE HUNDRED EIGHTY-THREE DAYS OR MORE OF THE TAXABLE YEAR,
 OWNED THE RESIDENCE AND PAID SUCH TAXES.
   (2)  THE CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL EQUAL FIFTY
 PERCENT OF QUALIFYING REAL PROPERTY  TAXES  PAID;  HOWEVER  THIS  AMOUNT
 SHALL NOT EXCEED SIXTY-FIVE HUNDRED DOLLARS.
   (3) NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION:
   (A) TO A PROPERTY OWNER IF QUALIFIED GROSS INCOME FOR THE TAXABLE YEAR
 EXCEEDS THREE HUNDRED THOUSAND DOLLARS.
   (B)  TO A PROPERTY OWNER UNLESS: (I) THE PROPERTY IS USED FOR RESIDEN-
 TIAL PURPOSES; (II) NOT MORE THAN TWENTY PERCENT OF THE  RENTAL  INCOME,
 IF  ANY,  FROM  THE PROPERTY IS FROM RENTAL FOR NONRESIDENTIAL PURPOSES;
 AND (III) THE PROPERTY IS OCCUPIED AS A RESIDENCE IN WHOLE OR IN PART BY
 ONE OR MORE OF THE OWNERS OF THE PROPERTY.
   (C) TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION
 (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE  INTERNAL  REVENUE  CODE  IS
 ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR.
   (D)  WITH  RESPECT  TO  A  RESIDENCE THAT IS WHOLLY EXEMPTED FROM REAL
 PROPERTY TAXATION.
   (E) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR
 THE ENTIRE TAXABLE YEAR.
 A. 8308                             3
 
   (4) IN THE CASE OF A TAXPAYER WHO HAS ITEMIZED DEDUCTIONS FROM FEDERAL
 ADJUSTED GROSS INCOME, AND WHOSE FEDERAL ITEMIZED DEDUCTIONS INCLUDE  AN
 AMOUNT  FOR  REAL  ESTATE  TAXES  PAID,  THE NEW YORK ITEMIZED DEDUCTION
 OTHERWISE ALLOWABLE UNDER SECTION SIX HUNDRED FIFTEEN  OF  THIS  ARTICLE
 SHALL  BE  REDUCED  BY  THE  AMOUNT  OF  THE  CREDIT  CLAIMED UNDER THIS
 SUBSECTION.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2024.