Establishes a personal income tax credit for low and middle income taxpayers 60 years of age or older, for emergency repairs or modifications to their primary residence

4 Co-sponsors

• Tony Avella
• David Carlucci
• Jeffrey D. Klein
• Diane J. Savino

Title of bill

An act to amend the tax law, in relation to establishing an elderly residential emergency repair personal income tax credit

Purpose

To make it easier for New York's seniors to remain in their own homes by making repairs or improvements that are necessary to the health and safety of the senior more affordable to them.

Summary of provisions

Section 1: Adds subsection ccc to Section 606 of the tax law to establish a credit for taxable years beginning after January first, 2016, for the sum of all emergency repair costs incurred by the taxpayer up to $7,500. Defines an "eligible taxpayer" as a resident taxpayer who is sixty years of age or older, whose adjusted federal gross income does not exceed 130% of the median annual income for all residents of the region in which the taxpayer's primary residence is located. Defines "emergency repair" as any repair or modification of the primary residence of the taxpayer which is necessary to make it possible for the taxpayer to continue to reside in such residence, including but not limited to:

a) the installation of ramps b) the installation of bathroom or household grab bars c) the widening of doorways d) the lowering of light switches e) other modifications that would make the residence wheelchair-accessible or otherwise enable the taxpayer to remain safely in the residence

Establishes that the any amount allowed under this subsection for any taxable year that exceeds the taxes paid shall be treated as overpayment to be credited or refunded with no interest. The total amount of funding distributed under this program is not to exceed $5 million.

Section 2: Allows the act to take effect immediately.

Justification

New York's housing stock is the oldest in the nation. The median age of a housing unit in New York State is 57 years, which is greater than the median age of our population. This means that a large portion of our housing units were built when concerns about the accessibility of units for individuals with some form of disability, including disability due to age, was not a major concern. As a result, many older New Yorkers are left with outdated housing that needs to be improved to accommodate senior needs.

While many seniors would see benefits to their health and safety, as well as the accessibility of their home, with the installation of devices such as ramps, handrails, lowered light switches, or widened doorways, they simply cannot afford to pay for it on a fixed income. The state currently offers RESTORE funding to assist seniors in paying for expensive, necessary repairs, however there are significant restrictions on the use of RESTORE funds that make it very difficult for middle-income seniors who need them to have access.

Providing access to safe and affordable housing is a critical component of our State's policy for ensuring that our seniors are able to age with dignity. By providing assistance for safety upgrades for those seniors who chose to stay in their homes we expand the usefulness of our existing housing stock for seniors. This program would target the homeowners directly and allow both low- and middle-income seniors to share in the benefits.

Legislative history

New bill

Fiscal implications

This credit would be funded at a total of $5 million per year.

Effective date

This bill will take effect immediately.