What's happening
This bill creates a state income tax credit for New Yorkers who pay high flood insurance premiums on their primary residence.
Why it matters
Targets Relief to Those Hit Hardest. The credit specifically helps homeowners whose flood insurance premiums exceed 5% of their adjusted gross income, offering targeted relief to those most burdened by high costs.
Caps State Support, Limits Windfall. The annual tax credit is capped at $1,250 per year per taxpayer, balancing financial help with fiscal responsibility to the state.
Refundable and Flexible Application. If the credit amount exceeds a taxpayer’s state income tax liability, the excess can be refunded or carried forward for up to five years, ensuring the benefit is accessible even to those with lower tax burdens.
Encourages Maintaining Insurance Coverage. By offsetting extreme premium costs, the bill may help more homeowners afford and maintain vital flood insurance, potentially reducing financial devastation after floods and lessening reliance on government disaster aid.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Tax Credit for Flood Insurance
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to rules
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6592
2017-2018 Regular Sessions
IN SENATE
June 6, 2017
Introduced by Sen. KAMINSKY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the tax law, in relation to allowing an individual taxpayer to claim a credit against their income tax for excess premium paid during the applicable tax year for flood insurance providing coverage on the taxpayer's primary residence
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) Flood insurance tax credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in paragraph two of this subsection, against the tax imposed by this article for excess premium paid during the applicable tax year for flood insurance providing coverage on the taxpayer's primary residence.
(2) Amount of credit. The credit allowed pursuant to paragraph one of this subsection shall be in an amount equal to the excess premium paid by the taxpayer, the amount by which the premium paid exceeds five percent of the taxpayer's adjusted gross income. Such credit for any taxable year may not exceed one thousand two hundred fifty dollars.
(3) Application of credit. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon or any unused credit may be carried forward for five succeeding taxable years.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2018. The commissioner of taxation and finance is authorized to issue any rules and regulations necessary for the implementation of this act on or before the effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10214-02-7
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 allowing an individual taxpayer to claim a credit against their income tax for excess premium paid during the applicable tax year for flood insurance providing coverage on the taxpayer's primary residence
Purpose
To establish a flood insurance tax credit for the primary residence of New Yorkers
Summary of provisions
Section 1: Amends section 606 of the tax law to add a new subsection (ccc) creating the flood insurance tax credit. The amount of the credit may not exceed $1,250 for any excess premium paid by the taxpayer that exceeds 5% of the taxpayer's adjusted gross income. If the amount of the credit allowed exceeds the taxpayer's tax for a given year, a taxpayer can opt to have it refunded to them or credited towards future tax years.
Section 2: Sets the effective date
Justification
Currently, there is enormous uncertainty in the future of flood insurance due to the September 30th, 2017 deadline for Congress to extend the National Flood Insurance Program (NFIP).
Most New Yorkers who reside in high-risk areas are only able to obtain flood insurance through the NFIP.
The NFIP is a 49-year-old federal program that is currently almost $25 billion in debt due to major storms such as Irene, Katrina, and Sandy.
In order to bring stability to the NFIP, many Long Island coastal homeowners are seeing flood insurance premium increases of up to 18% a year.
New Yorkers were previously able to benefit from federal subsidies that were intended to encourage homeowners at risk of flooding to buy insurance. In addition to the premium increases, these subsidies are being phased out creating even more financial pressure on homeowners.
Flood insurance policies can cost upwards of several thousand dollars a year and even more for homeowners who live in coastal areas. This cost can play a significant role in the costs of homeownership. Many homeowners are working hard to decrease their insurance costs through renovations to their homes to raise them out of the reach of floodwater.
By establishing a State tax credit for flood insurance, New York State can take a positive step in helping more New Yorkers to afford flood insurance coverage.
Legislative history
New bill
Fiscal implications
If enacted, this measure would reduce State revenue by $6.5 million in SFY 2018-19 and $26 million annually thereafter.
Effective date
Shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.