What's happening
This bill allows New York residents to receive a refund for excess long-term care insurance tax credits, rather than just carrying them forward.
Why it matters
Makes the long-term care insurance credit more valuable and accessible for New York residents. by allowing them to receive a direct refund when their credit exceeds their tax liability, instead of only carrying the excess forward to future years (which could take a long time to use or may never be used).
Improves incentives to purchase long-term care insurance. by guaranteeing taxpayers they won’t “lose out” on the credit if their tax bill is low—potentially increasing participation in long-term care insurance and easing future pressure on Medicaid and other safety-net programs.
Distinguishes between residents and nonresidents. by only making the refundable option available to full-year residents, while nonresidents and part-year residents still must carry excess credits forward, potentially affecting the choices of those who split time or recently moved.
May have budget implications for New York State. since more people will receive refunds (rather than just credits against future taxes), potentially increasing the state’s costs in the short term while advancing the policy goal of broader long-term care coverage.
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Who cares
Headline styles
Refund Excess Tax Payments
Plain English, a few words. Used as the page title.
Sponsors
1 Multi-sponsor
History
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2197
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. SCHIMMINGER -- Multi-Sponsored by -- M. of A. GIGLIO -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing a refund for excess tax paid after long-term insurance credit is applied
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (aa) of section 606 of the tax law, as amended by section 1 of part P of chapter 61 of the laws of 2005, is amended to read as follows:
(aa) Long-term care insurance credit. (1) Residents. A taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the taxable year for long-term care insurance. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law. [If the amount of the credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.] The credit under this subsection shall be allowed against the taxes imposed by this article for the taxable year reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall refund as an overpayment, without interest, the amount of such excess.
(2) Nonresidents and part-year residents. In the case of a nonresident taxpayer or a part-year resident taxpayer, the credit determined under this subsection shall be limited to the amount determined by multiplying the amount of such credit by the New York source fraction as set forth in paragraph three of subsection (e) of section six hundred one of this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05812-01-7
A. 2197 2
article. [The credit as so limited shall be applied as provided in paragraph one of this subsection.] If the amount of the credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on or after the first of January next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.