Establishes the "Caregiver's Assistance Act" giving income tax credits and deductions and a real property tax exemption to certain persons who help seniors

14 Co-sponsors

• John J. Bonacic
• John A. DeFrancisco
• Hugh T. Farley
• John J. Flanagan
• Charles J. Fuschillo Jr.
• Joseph A. Griffo
• Kemp Hannon
• William J. Larkin Jr.
• George D. Maziarz
• Thomas P. Morahan
• Frank Padavan
• Stephen M. Saland
• James L. Seward
• Dale M. Volker

Title of bill

An act to amend the tax law and the real property tax law, in relation to establishing the Caregiver's Assistance Act

Purpose or general idea of the bill

To provide tax credits and exemptions to aid those who provide informal, unpaid care of their elderly relatives.

Summary of provisions

The bill makes the following changes in State tax law:

Section 1. Short Title: Caregiver's Assistance Act.

Section 2. Adds a new subsection (gg) to section 606 of the tax law, to provide a refundable credit to qualified taxpayers who provide informal, unpaid care to senior family members. The credit amount is 20% of the first $2,400 spent by the taxpayer on behalf of a senior relative, plus $75 for any amount spent in excess of $240. The maximum credit is thus $555. A senior family member is a person who is 60 years old or older, who is related within the third degree of consanguinity and who resides in the taxpayer's home and whose New York adjusted gross income is $13,000 or less for a single person, or $20,000 or less for a married couple. The credit is not applicable to taxpayers whose adjusted gross income is $45,000 for a single taxpayer, or $60,000 for married taxpayers.

Section 3. Adds a new paragraph (d) to subdivision 4-a of section 425 of the real property tax law, to allow a pro-rated basic or enhanced STAR exemption that would apply if the senior owned the home to a residence in which a senior lives with taxpayer. The exemption would apply to that portion of the home used by the senior for living and the provision of care. Thus, in a 2,000 square foot house, if the senior member occupied one 1Ox12 room (120 square feet), and there was a second room used for the provision of care of equal size, the amount of the STAR exemption would be 12% of the total basic or enhanced exemption.

Justification

The largest amount of care provided to seniors in New York is provided by family. In the most reliable and recent study, "Informal, Unpaid, Care Giving To New York State Elders: A Telephone Survey, 2001," Center For Aging Policy Research, State University Of New York At Stonybrook, the number of caregivers is estimated at 734,000, or roughly 9.6% of the 7,650,000 households in New York, providing an average of 22 hours of care per week. The study estimates the value of this care at $11.2 billion annually. These are charges and costs which the State does not now bear.

The purpose of this legislation is to provide not only a recognition of what has been termed the "love-equity" provided by these care givers for their senior relatives, but also to provide an incentive for more families to provide the care, and to encourage families currently providing the care to continue to do so for longer periods.

Legislative history

S.6004 of 2004 - Reported to Finance, then passed as part of larger Senate Tax Package. S.1194 of 2005/06 - Aging, Finance S.459 -2007-08 - Finance

Fiscal implications

To be determined.

Effective date

January 1, after it becomes law.