What's happening
This bill creates a personal income tax credit for seniors over 65 in New York to offset utility costs exceeding 7% of their household income.
Why it matters
Targets utility affordability for lower- and middle-income seniors. By limiting eligibility to households with gross incomes of $150,000 or less, the credit is focused on seniors who may be particularly vulnerable to rising utility costs, helping them maintain essential services without sacrificing other necessities.
Covers a broad range of utility expenses. The credit applies not just to electricity and gas, but also to water, sewer, heating fuels (including oil, wood, propane, etc.), and certain telecommunications—addressing the full scope of what seniors may need to safely remain in their homes.
Acts as a direct financial relief mechanism. The tax credit is "refundable," meaning that if the credit exceeds the amount of tax owed, the senior will receive the balance as a payment, ensuring the benefit is fully realized even by those with little or no tax liability.
Coordinates with other assistance programs. Any benefits received from the federal Low-Income Home Energy Assistance Program (LIHEAP) are subtracted from the credit, preventing double-dipping but ensuring those not served by LIHEAP can still get help.
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Who cares
New York residents over 65
Those with household gross income of $150,000 or less could claim a refundable tax credit for half of eligible utility expenses exceeding 7% of household gross income.
Senior homeowners and renters
Eligible expenses would include payments for gas, electricity, steam, water, sewer, heating fuel and qualifying telephone services at their primary residence.
Senior home energy assistance recipients
Their credit would be reduced by the amount they receive through the low-income home energy assistance program.
New York tax administrators
They would administer the new personal income tax credit and credit or refund amounts exceeding a qualified taxpayer’s tax liability, without interest.
Headline styles
Tax Credit for Senior Utilities
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1729
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to establishing a senior utility circuit breaker personal income tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Senior utility circuit breaker tax credit. (1) Definitions. For the purposes of this subsection:
(A) "Qualified taxpayer" means a resident individual, married or head of household taxpayer who is over sixty-five years of age, with a household gross income of one hundred fifty thousand dollars or less.
(B) "Household" or "members of the household" means a qualified taxpayer and all other persons, not necessarily related, who have the same residence and share its furnishings, facilities and accommodations. Such terms shall not include a tenant, subtenant, roomer or boarder who is not related to the qualified taxpayer in any degree specified in paragraphs one through eight of subsection (a) of section one hundred fifty-two of the internal revenue code. Provided, however, no person may be a member of more than one household at one time.
(C) "Household gross income" means the aggregate adjusted gross income of all members of the household for the taxable year as reported for federal income tax purposes, or which would be reported as adjusted gross income if a federal income tax return were required to be filed, with the modifications in subsection (b) of section six hundred twelve of this article but without the modifications in subsection (c) of such section, plus any portion of the gain from the sale or exchange of property otherwise excluded from such amount; earned income from sources without the United States excludable from federal gross income by
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01975-01-7
S. 1729 2
section nine hundred eleven of the internal revenue code; support money not included in adjusted gross income; nontaxable strike benefits; supplemental security income payments; the gross amount of any pension or annuity benefits to the extent not included in such adjusted gross income (including, but not limited to, railroad retirement benefits and all payments received under the federal social security act and veterans' disability pensions); nontaxable interest received from the state of New York, its agencies, instrumentalities, public corporations, or political subdivisions (including a public corporation created pursuant to agreement or compact with another state or Canada); workers' compensation; the gross amount of "loss-of-time" insurance; and the amount of cash public assistance and relief, other than medical assistance for the needy, paid to or for the benefit of the qualified taxpayer or members of his household. Household gross income shall not include surplus foods or other relief in kind or payments made to individuals because of their status as victims of Nazi persecution as defined in P.L. 103-286. Provided, further, household gross income shall only include all such income received by all members of the household while members of such household.
(D) "Residence" means a dwelling in this state, whether owned or rented.
(E) "Eligible expenses" means payments made by a qualified taxpayer for the following goods and services delivered and used at his or her primary residence:
(i) residential gas, electric and steam utility service which is subject to the provisions of article two of the public service law;
(ii) residential water and sewer service;
(iii) home heating fuel, which shall include fuel oil, coal, wood, propane, natural gas, electricity, steam, kerosene and any other fuel when used for residential heating purposes; and
(iv) telecommunications services as defined in paragraph (g) of subdivision one of section one hundred eighty-six-e of this chapter, and shall not include wireless communications service, as defined by subdivision ten of section three hundred one of the county law, unless such wireless service is the only means by which the qualified taxpayer receives telephonic services.
(2) Computation of credit. For taxable years beginning on and after January first, two thousand seventeen, a qualified taxpayer shall be allowed a credit, to be credited against the tax imposed by this article. The amount of the credit shall be one-half of all eligible expenses paid by the qualified taxpayer to the extent such expenses exceed seven percent of the qualified taxpayer's household gross income. Such credit shall be reduced by the amount of any moneys received by the qualified taxpayer pursuant to the low-income home energy assistance program established pursuant to section ninety-seven of the social services law.
(3) Overpayment. If the amount of the credit allowed under this subsection for any taxable year shall exceed the qualified taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing a senior utility circuit breaker personal income tax credit
Purpose
Creates a circuit breaker refundable tax credit to provide relief to seniors that pay a high percentage of their income in utility costs.
Summary of provisions
Section one, of the bill amends section 606 of the tax law by adding a new subdivision (ccc). Paragraph one of the new subdivision defines eligible taxpayer as individuals over 65 years of age with gross incomes of $150,000 or less. It defines the eligible expenses as including electricity, heating, residential gas, water and sewer charges, and telephone services, with the exception of cell phone services unless they are the sole means by which the taxpayer receives telephonic services.
Paragraph two of the new subdivision explains the computation of the credit, The credit shall be equal to one half of those eligible expenses which exceed seven percent of a filers income. The credit will deduct any funds received by an individual pursuant to the low-income home energy assistance program.
Paragraph three of the new subdivision states that any amount of credit allowed under this subsection that exceeds the qualified taxpayers tax for that year shall be treated as an overpayment and refunded.
Section two of the bill sets an immediate effective date.
Justification
New Yorkers currently pay the highest electric bills in the continental United States and the second highest in the nation, 60% above the national average. These circumstances are problematic for all New Yorkers, but especially problematic for senior New Yorkers. Seniors' bills in the Consolidated Edison service territory of NYC have increased by 20% or more over the past two years, and are paying 102% more for their average electric bill than the average customer across the nation.
Most seniors rely on fixed incomes, receiving on average $1,234 in Social Security benefits and $516.90 in Supplemental Security Income in NY. 30% of older households have total incomes of less than $20,000, and they typically experience the greatest energy burden. Unfortunately, the federal government's Home Energy Assistance Program (HEAP) is down. Throughout the decade, the average HEAP federal block grant amount has remained well below average heating costs faced by older consumers. This means that even our neediest seniors are not getting the support they need to help pay for New York's high utility costs.
This proposal is meant to provide relief that is based on the income burden a household faces. This senior utility circuit breaker would deliver relief to any senior household that pays more than seven percent of their annual income in utilities in the form of a refundable tax credit. This proposal would provide a senior household with relief equal to half of their expenses above the seven percent threshold. For the purposes of this proposal, covered expenses would include electricity charges, gas, heating charges, including the costs of any fuels, water and sewer charges, internet, and telephone charges excluding cell phone service. By linking this relief to income, we can ensure that the benefits are provided to those that need it most.
Legislative history
2015-16: S4104A/A7495A - Investigations & Gov't Operations/ways and means
Fiscal implications
Cost to be determined.
Effective date
This act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.