S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5996
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 27, 2023
                                ___________
 
 Introduced  by  Sen.  LANZA  -- 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  increasing  the  maximum
   pension and annuity exclusion from federal adjusted gross income
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 3-a of subsection (c) of section 612 of  the  tax
 law,  as  amended  by  section  3 of part I of chapter 59 of the laws of
 2015, is amended to read as follows:
   (3-a) Pensions  and  annuities  received  by  an  individual  who  has
 attained  the  age  of  fifty-nine  and one-half, not otherwise excluded
 pursuant to paragraph three of this subsection, to the extent includible
 in gross income for federal income tax purposes, but not  in  excess  of
 [twenty]  TWENTY-TWO  thousand  dollars,  which  are  periodic  payments
 attributable to personal services performed by such individual prior  to
 his retirement from employment, which arise (i) from an employer-employ-
 ee  relationship  or  (ii) from contributions to a retirement plan which
 are deductible for  federal  income  tax  purposes.  However,  the  term
 "pensions and annuities" shall also include distributions received by an
 individual  who  has attained the age of fifty-nine and one-half from an
 individual retirement account or an individual  retirement  annuity,  as
 defined  in section four hundred eight of the internal revenue code, and
 distributions received by an individual who  has  attained  the  age  of
 fifty-nine and one-half from self-employed individual and owner-employee
 retirement  plans  which  qualify  under section four hundred one of the
 internal revenue code, whether or  not  the  payments  are  periodic  in
 nature.  Nevertheless,  the  term  "pensions  and  annuities"  shall not
 include any lump sum distribution, as defined  in  subparagraph  (D)  of
 paragraph  four  of  subsection  (e)  of section four hundred two of the
 internal revenue code and taxed under section six hundred three of  this
 article. Where a husband and wife file a joint state personal income tax
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09778-01-3
              

 S. 5996                             2
 
 return,  the  modification  provided  for  in  this  paragraph  shall be
 computed as if they were  filing  separate  state  personal  income  tax
 returns.  Where a payment would otherwise come within the meaning of the
 term  "pensions  and  annuities"  as set forth in this paragraph, except
 that such individual is deceased, such payment shall,  nevertheless,  be
 treated  as  a pension or annuity for purposes of this paragraph if such
 payment is received by such individual's beneficiary.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after such date.