S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7211
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 4, 2025
                                ___________
 
 Introduced  by  Sens. LANZA, BORRELLO, HELMING, RHOADS -- 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] SUCH INDIVIDUAL'S retirement from employment, which arise (i) from
 an employer-employee  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  distrib-
 utions  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 indi-
 vidual  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11439-01-5
              

 S. 7211                             2
 
 hundred  three  of  this article. Where a [husband and wife file] SPOUSE
 FILES 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 other-
 wise 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 individ-
 ual's beneficiary.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after such date.