S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2571
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2025
                                ___________
 
 Introduced  by  Sen.  FELDER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to increasing the exemption for
   pensions and annuities for certain persons

   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-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING  ON
 OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWENTY-SEVEN, THIRTY THOUSAND
 DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO
 THOUSAND TWENTY-EIGHT, THIRTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-NINE, AND FORTY
 thousand  dollars  IN  EACH SUBSEQUENT YEAR, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00834-02-5
              

 S. 2571                             2
 
 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] SPOUSES file a joint state personal
 income tax 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.