S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5726
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 15, 2023
                                ___________
 
 Introduced  by  Sen. KENNEDY -- 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  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 (ooo) to read as follows:
   (OOO)  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 TWENTY-FOUR 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09240-01-3
              

 S. 5726                             2
 
   (B) OWNED BY THE TAXPAYER;
   (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 TWENTY-FIVE 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, 2025, and  shall  apply  to
 taxable years commencing on or after such effective date.