Establishes the "caregiver's assistance act" giving income tax credits and deductions and a real property tax exemption to certain persons who help seniors

Summary of provisions

Section one of this bill provides the short title, which is the "Caregiver's Assistance Act."

Section two of this bill adds a new subsection (ww) to Tax Law section 606 of 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 $2,775 by the taxpayer on behalf of a senior relative. The maximum credit is thus $415. A senior family member is a person who is 60 years old or older, related to the taxpayer within the third degree of consanguinity, resides in the taxpayer's home, and has a New York adjusted gross income of $13,000 or less for a single person, or $20,000 or less for a married couple. The credit is not available to taxpayers whose adjusted gross income is $45,000 for a single taxpayer or $60,000 for married taxpayers. Taxpayers who claim the child and dependent care credit may not also claim this credit.

Section three of this bill adds a new paragraph (d) to subdivision 4-a of section 425 of the Real Property Tax Law to provide a pro-rated basic or enhanced STAR exemption for the dwelling in which a senior citizen resides with his or her relative. The exemption is prorated based upon the percentage of the residence that used exclusively by the senior as living space. For example, if the residence is 1500 square feet and the senior exclusively uses a 150-square foot room as living space, the percentage that is used in the proration computation is 10%. That percentage is then multiplied by the amount of the basic or enhanced STAR exemption that the senior would have been allowed if the senior owned the residence, resulting in the exemption amount under this new paragraph. This exemption provided under this paragraph is in addition to any STAR or enhanced STAR exemption that is currently applied to the property.

Section four of this bill provides that this act shall take effect on the first of January next succeeding the date on which it becomes law.

Justification

The 2011 "MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents," found that the number of adult children who are providing financial assistance to or caring for their elderly parents has tripled over the past 15 years. The cost to these caregivers is significant. Caregivers who continue to work full-time were found to be in fair to poor health, while their non-caregiver counterparts were found to be healthier. Many of these caregivers are forced to give up their full-time jobs

and seek part-time employment. It is estimated that the lost wages, private pension benefits, and social security for these caregivers is almost $225,000.

The purpose of this legislation is to not only to recognize the efforts of families caring 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 period.

Legislative history

2011-2012: S.884 - Referred to Investigations and Government Operations 2009-2010: S.1574 - Reported to Finance 2008: S.489 - Reported to Finance 2007: S.489 - 3rd Reading 2005-2006: S.1194 - Reported to Finance

Fiscal implications

Undetermined

Effective date

This act shall take effect on the first of January next succeeding the date on which it becomes law.