What's happening
This bill creates a personal income tax credit for New York residents based on qualified fuel expenses for non-business vehicle use, with the credit amount decreasing as income increases.
Why it matters
This bill targets lower- and moderate-income residents for relief, as the maximum credit is highest for those earning below $15,000 and phases down as income rises, potentially making it a progressive benefit for people most affected by fuel costs.
By limiting the credit to non-business fuel use in personal vehicles, the bill aims to offset everyday transportation costs for individuals and families rather than subsidizing commercial activity or businesses.
The credit is non-refundable and cannot be carried forward, so it only benefits those who owe income tax and up to the amount of their tax liability, meaning it may not provide full relief to the very lowest earners who have little or no tax due.
For married couples filing jointly, the credit is apportioned based on each spouse’s actual expenses and income, which could encourage more precise record-keeping and potentially prevent abuse or double-dipping.
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Who cares
Drivers paying for personal vehicle fuel
The bill would create a state personal income tax credit for fuel purchased for non-business vehicle use on public highways, capped at $100 for taxpayers with gross income of $25,000 or more.
Lower-income drivers
Credit caps would rise as gross income falls, reaching $300 for taxpayers earning less than $15,000, but unused credit would not be refunded or carried forward.
Married taxpayers filing jointly
Each spouse would be entitled to a credit proportionate to their gross income, provided that spouse actually incurred the qualifying fuel expense.
Headline styles
Fuel Tax Credit for Drivers
Plain English, a few words. Used as the page title.
Sponsors
1 Multi-sponsor
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
3142
2019-2020 Regular Sessions
IN ASSEMBLY
January 28, 2019
Introduced by M. of A. ORTIZ -- Multi-Sponsored by -- M. of A. SCHIM- MINGER -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to creating a personal income tax credit for fuel used for non-business purposes
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 (jjj) to read as follows:
(jjj) Personal vehicle fuel credit. (1) Allowance of credit. A taxpayer is allowed a credit against the tax imposed by this article for qualified fuel expenses in an amount as determined in accordance with paragraph two of this subsection.
(2) Amount of credit. The amount of the credit shall be equal to the total cost of the qualified fuel expenses actually incurred by the taxpayer for the taxable year subject to the following restrictions.
(i) If a taxpayer has a gross income equal to or more than twenty-five thousand dollars, the amount of the credit shall be no more than one hundred dollars.
(ii) If a taxpayer has a gross income equal to or more than twentythree thousand dollars but less than twenty-five thousand dollars, the amount of the credit shall be no more than one hundred thirty dollars.
(iii) If a taxpayer has a gross income equal to or more than twentyone thousand dollars but less than twenty-three thousand dollars, the amount of the credit shall be no more than one hundred sixty dollars.
(iv) If a taxpayer has a gross income equal to or more than nineteen thousand dollars but less than twenty-one thousand dollars, the amount of the credit shall be no more than one hundred ninety dollars.
(v) If a taxpayer has a gross income equal to or more than seventeen thousand dollars but less than nineteen thousand dollars, the amount of the credit shall be no more than two hundred twenty dollars.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07140-01-9
A. 3142 2
(vi) If a taxpayer has a gross income equal to or more than fifteen thousand dollars but less than seventeen thousand dollars, the amount of the credit shall be no more than two hundred fifty dollars.
(vii) If a taxpayer has a gross income less than fifteen thousand dollars, the amount of the credit shall be no more than three hundred dollars.
(viii) For the purposes of married individuals filing joint returns, each individual is entitled to receive the credit proportionate to their gross income provided that it was the individual that actually incurred the qualified fuel expense.
(3) Application. (i) The credit allowed under this subsection for any taxable year shall not reduce the tax due for such year to less than zero. Any unused portion of the credit shall not be reimbursed as an overpayment of taxes.
(ii) The credit allowed under this subsection shall be taken after all other applicable credits have first been taken.
(iii) Any unused portion of the credit shall not be carried over to subsequent taxable years.
(4) Definitions. Qualified fuel expense means amounts paid by the taxpayer for a taxable fuel for a personal, non-business use in a vehicle on a public highway.
§ 2. This act shall take effect immediately and shall apply to taxable years commencing on or after such date.
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.