S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8685
 
                             I N  S E N A T E
 
                             February 29, 2024
                                ___________
 
 Introduced by Sen. SEPULVEDA -- 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.  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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10472-01-3
 S. 8685                             2
 
 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.