S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1026
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2023
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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 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. (A) EXCEPT AS PROVIDED IN SUBPARAGRAPHS (B)
 AND (C) OF THIS PARAGRAPH THE AMOUNT OF THE CREDIT  ALLOWED  UNDER  THIS
 SUBSECTION SHALL BE AS FOLLOWS:
   (I) ONE HUNDRED PERCENT OF THE EXCESS OF THIRTY PERCENT OF THE TAXPAY-
 ER'S  GROSS  INCOME SUCH TAXPAYER PAYS IN RENT FOR SUCH TAXABLE YEAR FOR
 TAXPAYERS WHOSE GROSS INCOME IS TWENTY-FIVE THOUSAND DOLLARS OR LESS;
   (II) SEVENTY-FIVE 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  GROSS INCOME IS GREATER THAN TWENTY-FIVE THOUSAND
 DOLLARS BUT LESS THAN FIFTY THOUSAND DOLLARS;
   (III) FIFTY 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 GROSS INCOME IS FIFTY THOUSAND DOLLARS  OR  GREATER  BUT
 LESS THAN SEVENTY-FIVE THOUSAND DOLLARS;
   (IV)  TWENTY-FIVE  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 GROSS INCOME IS  SEVENTY-FIVE  THOUSAND  DOLLARS  OR
 GREATER BUT LESS THAN ONE HUNDRED THOUSAND DOLLARS; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01239-01-3
 S. 1026                             2
 
              

   (V)  ZERO  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 GROSS INCOME IS ONE HUNDRED THOUSAND DOLLARS OR GREATER.
   (B)  NOTWITHSTANDING  THE PROVISIONS OF SUBPARAGRAPH (A) OF THIS PARA-
 GRAPH, WHERE THE PRIMARY RESIDENCE OF A TAXPAYER IS LOCATED IN  AN  AREA
 FOR  WHICH, UNDER THE RULE PUBLISHED IN THE FEDERAL REGISTER ON NOVEMBER
 SIXTEENTH OF TWO THOUSAND SIXTEEN (81 FED.  REG. 80567), THE SMALL  AREA
 FAIR  MARKET  RENT  IS  USED  FOR PURPOSES OF THE FEDERAL HOUSING CHOICE
 VOUCHER PROGRAM THE AMOUNT OF THE CREDIT ALLOWED UNDER  THIS  SUBSECTION
 SHALL BE AS FOLLOWS:
   (I) ONE HUNDRED PERCENT OF THE EXCESS OF THIRTY PERCENT OF THE TAXPAY-
 ER'S  GROSS  INCOME SUCH TAXPAYER PAYS IN RENT FOR SUCH TAXABLE YEAR FOR
 TAXPAYERS WHOSE GROSS INCOME IS TWENTY-FIVE THOUSAND DOLLARS OR LESS;
   (II) SEVENTY-FIVE 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  GROSS INCOME IS GREATER THAN TWENTY-FIVE THOUSAND
 DOLLARS BUT LESS THAN FIFTY THOUSAND DOLLARS;
   (III) FIFTY 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 GROSS INCOME IS FIFTY THOUSAND DOLLARS  OR  GREATER  BUT
 LESS THAN SEVENTY-FIVE THOUSAND DOLLARS;
   (IV)  TWENTY-FIVE  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 GROSS INCOME IS  SEVENTY-FIVE  THOUSAND  DOLLARS  OR
 GREATER BUT LESS THAN ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS; OR
   (V)  ZERO  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 GROSS INCOME IS ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS
 OR GREATER.
   (C)  NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (A) OR (B) OF THIS
 PARAGRAPH, WHERE THE RENT OF THE PRIMARY  RESIDENCE  OF  A  TAXPAYER  IS
 SUBSIDIZED  UNDER  A FEDERAL, STATE, LOCAL OR TRIBAL PROGRAM, THE AMOUNT
 OF THE CREDIT ALLOWED UNDER THIS  SUBSECTION  SHALL  BE  EQUAL  TO  ONE-
 TWELFTH  OF  THE AMOUNT OF RENT PAID BY SUCH TAXPAYER THAT IS NOT SUBSI-
 DIZED UNDER ANY SUCH PROGRAM DURING THE TAXABLE  YEAR  WITH  RESPECT  TO
 SUCH RESIDENCE.
   (3)  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.
   (4) 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.
   (5) 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.
   (6) DEFINITIONS. AS USED IN THIS SUBSECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
 S. 1026                             3
 
   (A) "QUALIFIED TAXPAYER" SHALL MEAN AN INDIVIDUAL WHO LEASES THE INDI-
 VIDUAL'S PRIMARY RESIDENCE DURING THE TAXABLE YEAR  AND  WHO  PAYS  RENT
 WITH  RESPECT  TO  SUCH  RESIDENCE  IN  EXCESS OF THIRTY PERCENT OF SUCH
 TAXPAYER'S GROSS INCOME FOR SUCH TAXABLE YEAR.
   (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.