What's happening
This bill allows New York residents to receive a refund for excess long-term care insurance tax credits rather than just carrying them forward.
Why it matters
Provides immediate financial relief. Residents who qualify for the long-term care insurance credit and have excess credit beyond their tax liability can now receive an actual cash refund, rather than having to wait and carry the credit forward to future years.
Could encourage more people to purchase long-term care insurance. By making the tax benefit more accessible and liquid, the bill may incentivize more New Yorkers to buy or maintain long-term care insurance policies, potentially reducing reliance on public assistance for long-term care in the future.
Creates a distinction between residents and nonresidents. While residents get a refundable credit, nonresidents and part-year residents are still limited to carrying forward any excess credit, which could affect tax planning and insurance decisions for people who move in or out of New York.
Streamlines tax credit use and simplifies planning. With the refundable option, eligible taxpayers can better predict and utilize their financial resources for health and long-term care needs, rather than having to track and apply unused credits over multiple years.
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
Resident taxpayers paying qualifying long-term care insurance premiums
The bill would make their 20 percent credit refundable without interest when it exceeds their tax liability after other credits, replacing the carryforward provision.
Nonresident and part-year resident taxpayers
Their credit would remain limited by the New York source fraction, with excess credits carried forward rather than refunded.
State tax commissioner and comptroller
The bill would require the comptroller to refund excess resident credits as overpayments, subject to the commissioner's certification.
Headline styles
Refund for Excess Tax Paid
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2781
2019-2020 Regular Sessions
IN ASSEMBLY
January 25, 2019
Introduced by M. of A. SCHIMMINGER -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing a refund for excess tax paid after long-term insurance credit is applied
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (aa) of section 606 of the tax law, as amended by section 1 of part P of chapter 61 of the laws of 2005, is amended to read as follows:
(aa) Long-term care insurance credit. (1) Residents. A taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the taxable year for long-term care insurance. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law. [If the amount of the credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.] The credit under this subsection shall be allowed against the taxes imposed by this article for the taxable year reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall refund as an overpayment, without interest, the amount of such excess.
(2) Nonresidents and part-year residents. In the case of a nonresident taxpayer or a part-year resident taxpayer, the credit determined under this subsection shall be limited to the amount determined by multiplying the amount of such credit by the New York source fraction as set forth in paragraph three of subsection (e) of section six hundred one of this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03926-01-9
A. 2781 2
article. [The credit as so limited shall be applied as provided in paragraph one of this subsection.] If the amount of the credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on or after the first of January next succeeding the date on which it shall have become a law.
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.