What's happening
This bill allows New York taxpayers to deduct the full amount of federal income tax paid from their state taxes.
Why it matters
Could significantly reduce state tax bills for many New Yorkers, especially higher earners. , by allowing the full deduction of federal income taxes paid, which is currently limited—potentially leading to substantial annual savings for those with large federal tax obligations.
May result in a notable decrease in New York State tax revenue. , as more income becomes deductible; this could have downstream effects on state-funded services, infrastructure, and public programs, potentially prompting future budget adjustments or policy changes.
Alters the relationship between federal and state tax systems. , effectively counteracting recent federal limitations on deducting state and local taxes (SALT), and could be seen as a direct policy response to federal tax law changes impacting New York residents.
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Who cares
Headline styles
Deduct Federal Taxes Paid
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 61
No co-sponsors yet.
History
- Referred to investigations and government operations
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7529
IN SENATE
January 19, 2018
Introduced by Sen. RANZENHOFER -- 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 allowing an additional New York itemized deduction for the full amount of federal income taxes paid
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (d) of section 615 of the tax law is amended by adding a new paragraph 6 to read as follows:
(6) the amount of federal income tax paid during the taxable year.
§ 2. This act shall take effect January 1, 2019.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14123-01-8
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 additional New York itemized deduction for the full amount of federal income taxes paid
Purpose
To allow New York taxpayers to deduct from their income for New York State income taxes purposes the federal taxes paid during the taxable year.
Summary of provisions
Section 1 amends subsection (d) of section 615 of the Tax Law to add a new paragraph 6, which adds as a deduction the amount of federal income taxes paid during the taxable year.
Section 2: Effective date.
Justification
With new federal tax legislation likely to reduce income taxes for most New Yorkers in the coming years, it is time for the state to also provide additional income tax relief to our citizens.
Legislative history
New bill.
Fiscal implications
To be determined.
Effective date
This act will take effect on January 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.