Provides a tax credit in the amount of certain fees charged in connection with loans under the federal home loan guarantee program to national guard and reserve veterans.
TITLE OF BILL: An act to amend the tax law, in relation to providing a tax credit in the amount of certain fees charged in connection with loans under the federal home loan guarantee program to national guard and reserve veterans
PURPOSE OR GENERAL IDEA OF BILL: Expand federal home loan guarantee for VA qualified NYS National Guard and Reserve veterans by providing a NYS tax credit for the extra .75% difference in funding fee charges between VA active duty veterans and eligible guard and reserve veterans.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 - A veteran of the New York National Guard of military reserve will be allowed a tax credit which is equal to three quarters of one percent difference between fees charged to veterans of National Guard or armed forces reserves and the same fees charged to eligible active duty veterans, under loan guarantee programs administered or funded by the federal home loan mortgage corporation. Section 2 - Effective date.
JUSTIFICATION: The tax credit will offset the discrepancy of the .75% in additional funding fees that National Guard and reservists pay compared to active duty military personnel.
PRIOR LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: To be Determined.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2013.
STATE OF NEW YORK ________________________________________________________________________ 2158--A 2011-2012 Regular Sessions IN SENATE January 18, 2011 ___________Introduced by Sen. McDONALD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to providing a tax credit in the amount of certain fees charged in connection with loans under the federal home loan guarantee program to national guard and reserve veterans THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 606 of the tax law is amended by adding a new subsection (uu) to read as follows: (UU) CREDIT FOR CERTAIN FEES PAID TO THE FEDERAL HOME LOAN MORTGAGE CORPORATION. 1. AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE WHICH IS EQUAL TO THE THREE-QUARTERS OF ONE PERCENT DIFFERENCE BETWEEN FEES CHARGED TO VETERANS OF THE NATIONAL GUARD OR ARMED FORCES RESERVES AND THE SAME FEES CHARGED TO ELIGIBLE ACTIVE DUTY VETERANS, UNDER LOAN OR LOAN GUARANTEE PROGRAMS ADMINISTERED OR FUNDED BY THE FEDERAL HOME LOAN MORTGAGE CORPORATION. FOR THE PURPOSES OF THIS SECTION AN ELIGIBLE TAXPAYER SHALL BE A VETERAN OF THE NEW YORK NATIONAL GUARD OR MILITARY RESERVE. 2. FOR PURPOSES OF THIS SUBSECTION, "VETERAN" SHALL MEAN A PERSON WHO SERVED IN THE ACTIVE MILITARY, NAVAL, OR AIR SERVICE DURING A PERIOD OF WAR, OR WHO WAS A RECIPIENT OF THE ARMED FORCES EXPEDITIONARY MEDAL, NAVY EXPEDITIONARY MEDAL, MARINE CORPS EXPEDITIONARY MEDAL, OR GLOBAL WAR ON TERRORISM EXPEDITIONARY MEDAL, AND WHO WAS DISCHARGED OR RELEASED THEREFROM UNDER HONORABLE CONDITIONS. 3. FOR THE PURPOSES OF THIS SUBSECTION, "SERVICE DURING TIME OF WAR" SHALL MEAN:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01428-02-2 S. 2158--A 2
(I) THE INDIVIDUAL IN QUESTION WAS A RECIPIENT OF THE ARMED FORCES EXPEDITIONARY MEDAL, THE NAVY EXPEDITIONARY MEDAL OR THE MARINE CORPS EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATIONS IN LEBANON FROM JUNE FIRST, NINETEEN HUNDRED EIGHTY-THREE TO DECEMBER FIRST, NINETEEN HUNDRED EIGHTY-SEVEN, IN GRENADA FROM OCTOBER TWENTY-THIRD, NINETEEN HUNDRED EIGHTY-THREE TO NOVEMBER TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-THREE, OR IN PANAMA FROM DECEMBER TWENTIETH, NINETEEN HUNDRED EIGHTY-NINE TO JANU- ARY THIRTY-FIRST, NINETEEN HUNDRED NINETY; OR (II) THE INDIVIDUAL SERVED ON ACTIVE DUTY FOR NINETY DAYS OR MORE IN THE ARMED FORCES OF THE UNITED STATES DURING ANY ONE OF THE FOLLOWING WARS OR HOSTILITIES: (1) IN THE SPANISH-AMERICAN WAR FROM THE TWENTY-FIRST DAY OF APRIL, EIGHTEEN HUNDRED NINETY-EIGHT TO THE ELEVENTH DAY OF APRIL, EIGHTEEN HUNDRED NINETY-NINE, INCLUSIVE; (2) IN THE PHILIPPINE INSURRECTION OR THE CHINA RELIEF EXPEDITION FROM THE ELEVENTH DAY OF APRIL, EIGHTEEN HUNDRED NINETY-NINE TO THE FOURTH DAY OF JULY, NINETEEN HUNDRED TWO, INCLUSIVE; (3) IN THE MEXICAN BORDER CAMPAIGN FROM THE NINTH DAY OF MAY, NINETEEN HUNDRED SIXTEEN, TO THE FIFTH DAY OF APRIL, NINETEEN HUNDRED SEVENTEEN, INCLUSIVE; (4) IN WORLD WAR I FROM THE SIXTH DAY OF APRIL, NINETEEN HUNDRED SEVENTEEN TO THE ELEVENTH DAY OF NOVEMBER, NINETEEN HUNDRED EIGHTEEN, INCLUSIVE; (5) IN WORLD WAR II FROM THE SEVENTH DAY OF DECEMBER, NINETEEN HUNDRED FORTY-ONE TO THE THIRTY-FIRST DAY OF DECEMBER, NINETEEN HUNDRED FORTY-SIX, INCLUSIVE; (6) IN THE KOREAN HOSTILITIES FROM THE TWENTY-SEVENTH DAY OF JUNE, NINETEEN HUNDRED FIFTY TO THE THIRTY-FIRST DAY OF JANUARY, NINETEEN HUNDRED FIFTY-FIVE, INCLUSIVE; (7) IN THE VIETNAM CONFLICT FROM THE TWENTY-SECOND DAY OF DECEMBER, NINETEEN HUNDRED SIXTY-ONE TO THE SEVENTH DAY OF MAY, NINETEEN HUNDRED SEVENTY-FIVE; (8) IN THE PERSIAN GULF CONFLICT FROM THE SECOND DAY OF AUGUST, NINE- TEEN HUNDRED NINETY TO THE END OF SUCH CONFLICT. S 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2013.