Provides an earned income tax credit to youth workers, increases the standard deduction for individuals eighteen to twenty-four years of age, provides for the deduction of student loan interest and provides for the expiration of such provisions.
TITLE OF BILL:
An act to amend the tax law, in relation to providing an earned income tax credit to youth workers, increasing the standard deduction and providing for the deduction of student loan interest; and providing for the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
To provide earned income tax credit to youth workers, increase the standard deduction for individuals 18 to 24, and provide for the deduction of student loan interest.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends Section 606 of the tax law by adding a new subsection d-2 creating the earned income tax credit for youth workers. The credit allowed is equal to that allowed to a taxpayer under section 32 of the internal revenue code This section sets the qualifications the taxpayer must satisfy in order to be eligible for the credit.
Section 2 amends subsection a of section 614 of the tax law by providing a standard deduction of ten thousand dollars by a New York state resident who is between the ages of eighteen and twenty-four and setting other qualifications.
Section 3 adds a new subsection h to section 615 of the tax law by providing a deduction for interest paid on qualified education loans.
Section 4 is the effective date.
New York State tax law does not provide exemptions for young, independent adults ages 17-24. This age group is often ignored and left out of exemptions, left with lower income deduction rates and not provided the benefits on par with the Federal government on student-loan deductions. Our youngest population of adults deserves tax relief on the same level as the rest of our independent residents throughout the state. New York is dealing with an exodus of younger adults seeking greater economic opportunities in other states. Because of the loss in population, it is in the best interest of the state to try to assist these independent young workers and students and encourage them to stay in the state to be contributing members to New York State's improvement initiatives and economic growth.
PRIOR LEGISLATIVE HISTORY:
2013-14: S.5393A/A.2617A - Referred to Investigations and Gov't Operations 2011-12: A.5399 - Referred to Ways and Means 2009-10: S.2720/A.11826 - Referred to Investigations and Gov't Operations
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018 and shall expire and be deemed repealed December 31, 2023.
STATE OF NEW YORK ________________________________________________________________________ 3884 2015-2016 Regular Sessions IN SENATE February 20, 2015 ___________Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to providing an earned income tax credit to youth workers, increasing the standard deduction and providing for the deduction of student loan interest; and providing for the repeal of such provisions upon expiration thereof 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 (d-2) to read as follows: (D-2) EARNED INCOME TAX CREDIT FOR YOUTH WORKERS. (1) A TAXPAYER DESCRIBED IN PARAGRAPH TWO OF THIS SUBSECTION SHALL BE ALLOWED A CREDIT EQUAL TO THE PRODUCT OF ONE AND THREE-TENTHS AND THE AMOUNT OF THE EARNED INCOME TAX CREDIT THAT WOULD HAVE BEEN ALLOWED TO THE TAXPAYER UNDER SECTION 32 OF THE INTERNAL REVENUE CODE, IF THE TAXPAYER HAD ATTAINED THE MINIMUM AGE OF ELIGIBILITY FOR SUCH EARNED INCOME TAX CRED- IT SET FORTH IN SECTION 32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE. (2) TO BE ALLOWED A CREDIT UNDER THIS SUBSECTION, A TAXPAYER MUST SATISFY ALL OF THE FOLLOWING QUALIFICATIONS: (A) THE TAXPAYER MUST BE A RESIDENT TAXPAYER WHO IS NOT CLAIMED AS A DEPENDENT OF ANOTHER TAXPAYER. (B) THE TAXPAYER MUST HAVE ATTAINED THE AGE OF SEVENTEEN AND MUST NOT HAVE ATTAINED THE MINIMUM AGE AT WHICH A TAXPAYER IS QUALIFIED FOR THE EARNED INCOME TAX CREDIT AS SUCH AGE IS SET FORTH IN SECTION 32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE. (C) THE TAXPAYER MUST NOT BE THE CUSTODIAL OR NON-CUSTODIAL PARENT OF A MINOR CHILD OR CHILDREN. (3) NOTHING IN THIS SECTION SHALL BE DEEMED TO PROHIBIT THE QUALIFICA- TIONS OF A TAXPAYER WHO IS OTHERWISE ELIGIBLE FOR THE EARNED INCOME TAXEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09327-01-5 S. 3884 2
CREDIT AND WHO IS ENROLLED IN A FULL-TIME OR PART-TIME ACADEMIC PROGRAM LEADING TO COMPLETION OF A HIGH SCHOOL DIPLOMA, GENERAL EQUIVALENCY DIPLOMA, POST-SECONDARY CERTIFICATE OR WORK READINESS CREDENTIAL, ASSO- CIATE DEGREE OR BACCALAUREATE DEGREE. (4) REPORTS. THE COMMISSIONER SHALL PREPARE A PRELIMINARY WRITTEN REPORT AFTER JULY THIRTY-FIRST AND A FINAL WRITTEN REPORT AFTER DECEMBER THIRTY-FIRST OF EACH CALENDAR YEAR, WHICH SHALL CONTAIN STATISTICAL INFORMATION REGARDING THE CREDITS GRANTED ON OR BEFORE SUCH DATES UNDER THIS SUBSECTION DURING SUCH CALENDAR YEAR. COPIES OF THESE REPORTS SHALL BE SUBMITTED BY SUCH COMMISSIONER TO THE GOVERNOR, THE TEMPORARY PRESI- DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE WITHIN SIXTY DAYS OF JULY THIRTY-FIRST WITH RESPECT TO THE PRELIMINARY REPORT, AND WITHIN FORTY-FIVE DAYS OF DECEMBER THIRTY-FIRST WITH RESPECT TO THE FINAL REPORT. SUCH REPORTS SHALL CONTAIN, BUT NEED NOT BE LIMITED TO, THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED. SUCH INFORMATION SHALL INCLUDE THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED; AND OF THOSE, THE NUMBER OF CREDITS AND THE AVERAGE AMOUNTS OF SUCH CREDITS ALLOWED TO TAXPAYERS IN EACH COUNTY. S 2. Subsection (a) of section 614 of the tax law, as amended by chap- ter 170 of the laws of 1994, is amended to read as follows: (a) Unmarried individual. For taxable years beginning after nineteen hundred ninety-six, the New York standard deduction of a resident indi- vidual who is not married nor the head of a household nor a surviving spouse nor an individual whose federal exemption amount is zero shall be seven thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be seven thousand four hundred dollars; for taxable years beginning in nineteen hundred ninety-five, such standard deduction shall be six thousand six hundred dollars; and for taxable years beginning after nineteen hundred eighty-nine and before nineteen hundred ninety-five, such standard deduction shall be six thousand dollars. FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FIFTEEN, THE NEW YORK STANDARD DEDUCTION OF A RESI- DENT INDIVIDUAL WHO IS BETWEEN THE AGES OF EIGHTEEN AND TWENTY-FOUR AND WHO IS NOT MARRIED NOR THE HEAD OF A HOUSEHOLD NOR A SURVIVING SPOUSE NOR AN INDIVIDUAL WHOSE FEDERAL EXEMPTION AMOUNT IS ZERO SHALL BE TEN THOUSAND DOLLARS. S 3. Section 615 of the tax law is amended by adding a new subsection (h) to read as follows: (H) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOU- SAND SIXTEEN, IN THE CASE OF A RESIDENT INDIVIDUAL, THERE SHALL BE ALLOWED AS A DEDUCTION FOR THE TAXABLE YEAR AN AMOUNT EQUAL TO THE INTEREST PAID BY THE TAXPAYER DURING THE TAXABLE YEAR ON ANY QUALIFIED EDUCATION LOAN TO THE EXTENT AND AS PROVIDED IN SECTION 221 OF THE INTERNAL REVENUE CODE. S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018 and shall expire and be deemed repealed December 31, 2023.