What's happening
This bill expands eligibility and increases benefits for New York's real property tax circuit breaker personal income tax credit.
Why it matters
Significantly broadens income eligibility. The bill raises the maximum household gross income threshold for the circuit breaker credit from $18,000 to $75,000, allowing many more middle-income homeowners and renters to qualify for tax relief.
Increases maximum credit amounts. The maximum credit available to both senior and non-senior taxpayers is substantially increased (e.g., from $375 to $700 for the lowest income seniors, and from $75 to $400 for the lowest income non-seniors), enhancing the financial impact for recipients.
Adjusts property value and rent caps. The allowable full property value for homeowners is raised from $85,000 to $200,000, and the maximum average monthly rent for tenants is increased from $450 to $1,000, reflecting modern housing costs and enabling more households to benefit.
Reflects updated cost-of-living realities. By expanding income brackets and increasing credit caps, the bill acknowledges inflation and rising property/rental values, aiming to make the circuit breaker credit more relevant to today’s economic conditions and to provide broader relief from property tax burdens.
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Who cares
Headline styles
Expand Property Tax Credits
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
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6970
2017-2018 Regular Sessions
IN SENATE
December 13, 2017
Introduced by Sen. PERALTA -- 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 the real property tax 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. Paragraphs 3 and 7 of subsection (e) of section 606 of the tax law, as amended by chapter 28 of the laws of 1987, are amended to read as follows:
(3) Determination of credit. (A) For qualified taxpayers who have attained the age of sixty-five years before the beginning of or during the taxable year the amount of the credit allowable under this subsection shall be fifty percent, or in the case of a qualified taxpayer who has elected to include an additional amount pursuant to subparagraph (E) of paragraph one of this subsection, twenty-five percent, of the excess of real property taxes or the excess of real property tax equivalent determined as follows:
Excess real property taxes are the
excess of real property tax equiv-
alent or the excess of qualifying
real property taxes over the fo- If household gross income for the llowing percentage of household taxable year is: gross income: ----------------------------------- ----------------------------------- [$3,000] $10,000 or less 3 1/2 Over $10,000 but not over $15,000 3 Over [$3,000] $15,000 but not over [$5,000] $25,000 4 Over [$5,000] $25,000 but not over [$7,000] $35,000 4 1/2
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13933-01-7
S. 6970 2
Over [$7,000] $35,000 but not over [$9,000] $45,000 5 Over [$9,000] $45,000 but not over [$11,000] $50,000 5 1/2 Over [$11,000] $50,000 but not over [$14,000] $60,000 6 Over [$14,000] $60,000 but not over [$18,000] $75,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit determined under this subparagraph may not exceed the amount determined in accordance with the following table:
If household gross income for the taxable year is: The maximum credit is: ----------------------------------- ----------------------------------- [$1,000] $10,000 or less [$375] $700 Over [$1,000] $10,000 but not over [$2,000] $15,000 [$358] $650 Over [$2,000] $15,000 but not over [$3,000] $20,000 [$341] $600 Over [$3,000] $20,000 but not over [$4,000] $25,000 [$324] $550 Over [$4,000] $25,000 but not over [$5,000] $30,000 [$307] $500 Over [$5,000] $30,000 but not over [$6,000] $35,000 [$290] $450 Over [$6,000] $35,000 but not over [$7,000] $40,000 [$273] $400 Over [$7,000] $40,000 but not over [$8,000] $45,000 [$256] $350 Over [$8,000] $45,000 but not over [$9,000] $50,000 [$239] $300 Over [$9,000] $50,000 but not over [$10,000] $60,000 [$222] $250 Over [$10,000] $60,000 but not over [$11,000 $205 Over $11,000 but not over $12,000 $188 Over $12,000 but not over $13,000 $171 Over $13,000 but not over $14,000 $154 Over $14,000 but not over $15,000 $137 Over $15,000 but not over $16,000 $120 Over $16,000 but not over $17,000 $103 Over $17,000 but not over $18,000] $75,000 [$ 86] $200
(B) For all other qualified taxpayers the amount of the credit allowable under this subsection shall be fifty percent of excess real property taxes or the excess of the real property tax equivalent determined as follows:
Excess real property taxes are the
excess of real property tax equiv-
alent or the excess of qualifying
real property taxes over the If household gross income for the following percentage of household
S. 6970 3
taxable year is: gross income: ----------------------------------- ----------------------------------- [$3,000] $10,000 or less 3 1/2 Over $10,000 but not over $15,000 3 Over [$3,000] $15,000 but not over [$5,000] $25,000 4 Over [$5,000] $25,000 but not over [$7,000] $35,000 4 1/2 Over [$7,000] $35,000 but not over [$9,000] $45,000 5 Over [$9,000] $45,000 but not over [$11,000] $50,000 5 1/2 Over [$11,000] $50,000 but not over [$14,000] $60,000 6 Over [$14,000] $60,000 but not over [$18,000] $75,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit determined under this subparagraph may not exceed the amount determined in accordance with the following table:
If household gross income for the taxable year is: The maximum credit is: ----------------------------------- ----------------------------------- [$1,000] $10,000 or less [$75] $400 Over [$1,000] $10,000 but not over [$2,000] $15,000 [$73] $350 Over [$2,000] $15,000 but not over [$3,000] $20,000 [$71] $325 Over [$3,000] $20,000 but not over [$4,000] $25,000 [$69] $300 Over [$4,000] $25,000 but not over [$5,000] $30,000 [$67] $275 Over [$5,000] $30,000 but not over [$6,000] $35,000 [$65] $250 Over [$6,000] $35,000 but not over [$7,000] $40,000 [$63] $225 Over [$7,000] $40,000 but not over [$8,000] $45,000 [$61] $200 Over [$8,000] $45,000 but not over [$9,000] $50,000 [$59] $175 Over [$9,000] $50,000 but not over [$10,000] $60,000 [$57] $150 Over [$10,000] $60,000 but not over [$11,000 $55 Over $11,000 but not over $12,000 $53 Over $12,000 but not over $13,000 $51 Over $13,000 but not over $14,000 $49 Over $14,000 but not over $15,000 $47 Over $15,000 but not over $16,000 $45 Over $16,000 but not over $17,000 $43 Over $17,000 but not over $18,000] $75,000 [$41] $125
(7) No credit shall be granted under this subsection:
S. 6970 4
(A) If household gross income for the taxable year exceeds [eighteen] seventy-five thousand dollars.
(B) To a property owner unless: (i) the property is used for residential purposes, (ii) not more than twenty percent of the rental income, if any, from the property is from rental for nonresidential purposes and (iii) the property is occupied as a residence in whole or in part by one or more of the owners of the property.
(C) To a property owner who owns real property, the full value of which exceeds [eighty-five] two hundred thousand dollars.
(D) To a tenant if the adjusted rent for the residence exceeds [four hundred fifty] one thousand dollars per month on average.
(E) To an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year.
(F) With respect to a residence that is wholly exempted from real property taxation.
(G) To an individual who is not a resident individual of the state for the entire taxable year.
§ 2. This act shall take effect immediately and shall apply to taxable years commencing on or after the calendar year in which it shall have become a law.
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 the real property tax circuit breaker personal income tax credit
Purpose
This bill would increase the eligibility levels of the existing real property tax circuit breaker by raising the maximum allowable income, increasing the maximum allowable credit, and increasing the maximum allowable property value.
Summary of provisions
Section 1 amends paragraphs 3 and 7 of subsection (e) of section 606 of the tax law to change the following eligibility levels of the real prop- erty tax circuit breaker personal income tax credit as follows:
-Increase the max household income from $18,000 to $75,000 -Increase the max property value from $85,000 to $200,000 -Increase the max allowable credit to $800 (for age 65+) and to $400 (for 65 and younger) raised from $375 and $75, respectively.
Section 2 is the implementation date.
Justification
This legislation would update the antiquated tax relief structure put into place to help renters and homeowners afford their housing. The real property tax circuit breaker credit is a rebate meant to cover the portion of a homeowner's tax bill that exceeds a reasonable share of their household income. Renters who pay taxes indirectly through the landlord also qualify.
New York is the third most expensive state to live in, behind the remote states of Alaska and Hawaii. As the cost of living and the rate of inflation increase, we owe it to all New Yorkers to ensure that the tax relief measures we already have in place will keep pace.
Legislative history
New Bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years commencing on or after the calendar year in which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.