Establishes a personal income tax credit for the amount of premiums paid for health insurance during a taxpayer year; such credit shall apply to health insurance provided for the taxpayer, the taxpayer's spouse and the taxpayer's dependent children; the credit shall not exceed $2400 during any taxable year, with a limit of $800 each for the taxpayer and spouse, and $400 for each dependent.
BILL NUMBER: S7790
TITLE OF BILL : An act to amend the tax law, in relation to establishing a personal income tax credit for the cost of health insurance
PURPOSE OR GENERAL IDEA OF BILL : To permit a personal income tax credit for health insurance premiums paid by a taxpayer.
SUMMARY OF SPECIFIC PROVISIONS : A taxpayer shall be allowed a credit, to be computed as provided in this section against the tax imposed. The amount of the credit shall be the amount of premiums paid by the taxpayer or taxpayers filing jointly for the provision of health insurance for the taxpayer, his or her Spouse and dependents. Such a credit shall not exceed eight hundred dollars for the provisions of health insurance for a taxpayers spouse, and four hundred dollars for the provision of health insurance for each dependent under the age of eighteen years. The total credit authorized pursuant to this subsection shall not exceed two thousand four hundred in any taxable year. The provisions shall not apply to any payments required to be made for the provision of medical assistance pursuant to the federal Social Security Act.
JUSTIFICATION : Large and small families in New York State are under a heavy burden to pay for health insurance and their premiums. With healthcare costs on the increase, this credit will ease that burden placed on the families in 'New York State and freeing up some capital for other necessities.
LEGISLATIVE HISTORY : This is a new bill.
FISCAL IMPLICATIONS :
EFFECTIVE DATE : This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 7790 IN SENATE May 11, 2010 ___________Introduced by Sen. NOZZOLIO -- 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 establishing a personal income tax credit for the cost of health insurance 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 (c-2) to read as follows: (C-2) HEALTH INSURANCE CREDIT. (1) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN, A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED PURSUANT TO SECTION SIX HUNDRED ONE OF THIS PART. THE AMOUNT OF THE CREDIT SHALL BE THE AMOUNT OF PREMIUMS PAID BY THE TAXPAYER OR TAXPAYERS FILING JOINTLY FOR THE PROVISION OF HEALTH INSURANCE FOR THE TAXPAYER, HIS OR HER SPOUSE AND DEPENDANTS. SUCH CREDIT SHALL NOT EXCEED EIGHT HUNDRED DOLLARS FOR THE PROVISION OF HEALTH INSURANCE FOR A TAXPAYER, EIGHT HUNDRED DOLLARS FOR THE PROVISION OF HEALTH INSURANCE FOR A TAXPAYER'S SPOUSE, AND FOUR HUNDRED DOLLARS FOR THE PROVISION OF HEALTH INSURANCE FOR EACH DEPENDENT UNDER THE AGE OF EIGHTEEN YEARS. THE TOTAL CREDIT AUTHORIZED PURSUANT TO THIS SUBSECTION SHALL NOT EXCEED TWO THOUSAND FOUR HUNDRED DOLLARS IN ANY TAXABLE YEAR. (2) THE PROVISIONS OF THIS SUBSECTION SHALL NOT APPLY TO ANY PAYMENTS REQUIRED TO BE MADE FOR THE PROVISION OF MEDICAL ASSISTANCE PURSUANT TO THE FEDERAL SOCIAL SECURITY ACT. (3) IN NO EVENT SHALL THE AMOUNT OF THE CREDIT PROVIDED BY THIS SUBSECTION EXCEED THE TAXPAYER'S TAX FOR THE TAXABLE YEAR. HOWEVER, IF THE AMOUNT OF CREDIT OTHERWISE ALLOWABLE PURSUANT TO THIS SUBSECTION FOR ANY TAXABLE YEAR RESULTS IN SUCH EXCESS AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09646-02-0