What's happening
This bill creates a tax credit for homeowners with incomes under $250,000 for installing, repairing, or replacing sump pumps.
Why it matters
Helps low- and middle-income homeowners address home flooding risks. By targeting households under $250,000 in income, the tax credit makes it more affordable for those most financially vulnerable to install or repair sump pumps, which are crucial for preventing basement flooding and water damage.
Covers a broad range of related expenses. The credit applies not just to the sump pump itself, but also to associated costs like plumber assessments, labor, cleanup, and disposal fees, making it more comprehensive and reducing out-of-pocket costs for homeowners.
Potential to improve property safety and value. By incentivizing proper sump pump maintenance and installation, the bill could help reduce costly flood damage, improve home habitability, and potentially raise property values in flood-prone areas.
Has a statewide cap, so may be limited. The total amount available each year is capped at $5 million statewide, which could mean the benefit is distributed on a first-come, first-served basis or may run out if demand is high. This could affect access for some eligible homeowners.
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
Create Sump Pump Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
- Reported and committed to finance
- Referred to budget and revenue
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Credit for Sump Pumps
In Assembly Committee · Ways And Means · Sponsor Monica P. Wallace
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5218
2019-2020 Regular Sessions
IN SENATE
April 16, 2019
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to establishing a sump pump installation and replacement credit
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) Sump pump installation and replacement credit. (1) General. An individual taxpayer shall be allowed a credit for taxable years beginning on or after January first, two thousand twenty-one against the tax imposed by this article for the costs for replacement, repair or installation of a sump pump, when such repair, replacement, or installation is recommended by a certified plumber or municipality. The amount of the credit shall be fifty percent of the total cost of replacement, repair, or installation.
(2) Sump pump replacement, repair and installation costs. (A) The term "costs of replacement, repair or installation" includes the cost of an assessment from a plumber, any initial appraisals, labor costs, any disposal fees, and any cleanup fees; except any state or local sales tax applicable to the services performed. (B) The term "costs of repair" includes the cost of an assessment from a plumber, any initial appraisals, labor costs, any disposal fees, and follow-up fees; except any state or local sales tax applicable to the services.
(3) Amount of credit. The aggregate amount of tax credits allowed under this subsection in any calendar year statewide shall be five million dollars.
(4) Installation and repair for qualified taxpayers. A property owner who incurs costs for repair or replacement of a sump pump must be doing so on a residential or mixed use property which is:
(A) located in the state;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00402-01-9
S. 5218 2
(B) owned by the taxpayer;
(C) used by the taxpayer as his or her principal residence; and
(D) owned by a taxpayer with a household income of less than two hundred fifty thousand dollars.
(5) When credit is allowed. The credit provided for in this subsection shall be allowed with respect to the taxable year, commencing after January first, two thousand twenty-one in which the work is completed and paid for.
(6) Carryover credit. If the amount of the credit, and carryovers of such credit, allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such year, such excess amount may be carried over to the five taxable years next following the taxable year with respect to which the credit is allowed 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 commencing on or after such effective date.
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 establish- ing a sump pump installation and replacement credit
Purpose
The purpose of this bill is to allow for an individual taxpayer to utilize a personal income tax credit when they incur the costs for the replacement or installation of a new sump pump, as recommended by a certified plumber or by the municipality in which they reside.
Summary of specific provisions
Section 1 adds a new subsection ccc to the tax law to establish a tax credit for taxpayers in owner occupied homes that repair or install a sump pump in their home.
Section 2 establishes the effective date.
Justification
A sump pump is a small pump installed in the lowest part of a basement or crawlspace. It is intended to keep the area under a home dry and prevent it from flooding. Usually, sump pumps are installed in specially constructed sump pits, where water flows into the sump pit through drains or through the soil.
Currently, many homes have illegal sump pump connections to sewers, or in some cases no sump pump at all. While operating without a sump pump is detrimental to homeowner, illegal connections can be a source of long term and unnecessary stress on sanitary sewer lines. This continuing stress can lead to eventual damage or rupturing of the sanitary sewer lines, a major expense for homeowners as well as a public health issue.
Unfortunately, the cost of sump pump installation or replacement can place a significant burden on middle class families. To repair or replace a sump pump could cost up to $2,875 depending on the condition and existing connection.
This bill will establish a personal income tax credit to incentivize homeowners to repair or replace their sump pumps in order to prevent damage to homes and the main line sewer systems. This credit will help alleviate the burden faced by the average homeowner. This credit will not exceed $5 million dollars statewide.
Prior legislative history
New Bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.