What's happening
This bill allows certain New York taxpayers to reduce their federal adjusted gross income by up to $20,000 of interest and dividend income for state tax purposes.
Why it matters
Provides targeted tax relief. to New Yorkers who do not already qualify for an existing state income reduction, potentially benefiting retirees, savers, and those living on fixed incomes by excluding up to $20,000 of interest and dividend income from state taxes.
Encourages personal savings and investment. by making it less costly, after state taxes, to earn passive income from bank accounts, bonds, and stocks, which could help households build greater financial security.
Narrows a gap in current tax law. by extending a similar benefit to a new group of taxpayers who were previously excluded from this type of income modification, potentially making New York’s tax code fairer for middle-class and upper-middle-class residents.
Applies retroactively to income earned from January 1, 2017 onward,. meaning eligible taxpayers could see immediate savings or refunds on their next state tax return, which could enhance disposable income in the short term.
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Who cares
Headline styles
Cut Taxes on Interest Income
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
1 Multi-sponsor
History
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5696
2017-2018 Regular Sessions
IN ASSEMBLY
February 14, 2017
Introduced by M. of A. CURRAN, CASTORINA, FINCH -- Multi-Sponsored by -- M. of A. HAWLEY -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to granting a modification reducing federal adjusted gross income for interest and dividend income in certain cases for purposes of the personal income tax
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 3-d to read as follows:
(3-d) Interest and dividend income, to the extent includible in gross income for federal income tax purposes, not in excess of twenty thousand dollars paid during the taxable year to a taxpayer who is not qualified to take a modification reducing federal adjusted gross income pursuant to paragraph three-a of this subsection.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2017.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08528-01-7
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.