A07891 Summary:

BILL NOA07891A
 
SAME ASSAME AS S03884-A
 
SPONSORBronson
 
COSPNSR
 
MLTSPNSR
 
Amd §§606, 614 & 615, Tax L
 
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.
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A07891 Actions:

BILL NOA07891A
 
05/29/2015referred to ways and means
01/06/2016referred to ways and means
01/25/2016amend and recommit to ways and means
01/25/2016print number 7891a
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A07891 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7891A
 
SPONSOR: Bronson
  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 THE BILL: To provide earned income tax credit to youth workers, increase the stan- dard 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 resi- dent who is between the ages of eighteen and twenty-four and setting other qualifications. Section 3 adds a new subsection g to section 615 of the tax law by providing a deduction for interest paid on qualified education loans. Section 4 is the effective date.   JUSTIFICATION: New York State tax law does not provide exemptions for young, independ- ent 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.   LEGISLATIVE HISTORY: A11826 of 2008: Referred Ways & Means; A5399 of 2011: referred to Ways and Means; A2617 of 2013: Referred to Ways and Means   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2014 and shall expire and be deemed repealed December 31, 2019.
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A07891 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7891--A
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 29, 2015
                                       ___________
 
        Introduced  by M. of A. BRONSON -- read once and referred to the Commit-
          tee on Ways and Means -- recommitted to  the  Committee  on  Ways  and
          Means  in  accordance  with  Assembly  Rule  3,  sec.  2  -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        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:
 
     1    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
     2  subsection (d-2) to read as follows:
     3    (d-2)  Earned  income  tax  credit  for  youth workers. (1) A taxpayer
     4  described in paragraph two of this subsection shall be allowed a  credit
     5  equal  to  the  product  of  one  and three-tenths and the amount of the
     6  earned income tax credit that would have been allowed  to  the  taxpayer
     7  under  section  32  of  the  internal  revenue code, if the taxpayer had
     8  attained the minimum age of eligibility for such earned income tax cred-
     9  it set forth in section  32(c)(1)(A)(ii)(II)  of  the  internal  revenue
    10  code.
    11    (2)  To  be  allowed  a  credit under this subsection, a taxpayer must
    12  satisfy all of the following qualifications:
    13    (A) The taxpayer must be a resident taxpayer who is not claimed  as  a
    14  dependent of another taxpayer.
    15    (B)  The taxpayer must have attained the age of seventeen and must not
    16  have attained the minimum age at which a taxpayer is qualified  for  the
    17  earned   income  tax  credit  as  such  age  is  set  forth  in  section
    18  32(c)(1)(A)(ii)(II) of the internal revenue code.
    19    (C) The taxpayer must not be the custodial or non-custodial parent  of
    20  a minor child or children.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09327-03-6

        A. 7891--A                          2
 
     1    (3) Nothing in this section shall be deemed to prohibit the qualifica-
     2  tions  of a taxpayer who is otherwise eligible for the earned income tax
     3  credit and who is enrolled in a full-time or part-time academic  program
     4  leading  to  completion  of  a  high school diploma, general equivalency
     5  diploma,  post-secondary certificate or work readiness credential, asso-
     6  ciate degree or baccalaureate degree.
     7    (4) Reports. The commissioner  shall  prepare  a  preliminary  written
     8  report after July thirty-first and a final written report after December
     9  thirty-first  of  each  calendar  year,  which shall contain statistical
    10  information regarding the credits granted on or before such dates  under
    11  this subsection during such calendar year. Copies of these reports shall
    12  be  submitted by such commissioner to the governor, the temporary presi-
    13  dent of the senate, the speaker of the assembly,  the  chairman  of  the
    14  senate finance committee and the chairman of the assembly ways and means
    15  committee  within  sixty  days  of July thirty-first with respect to the
    16  preliminary report, and within forty-five days of December  thirty-first
    17  with  respect to the final report.  Such reports shall contain, but need
    18  not be limited to, the number of credits and the average amount of  such
    19  credits  allowed.   Such information shall include the number of credits
    20  and the average amount of such credits allowed; and of those, the number
    21  of credits and the average amounts of such credits allowed to  taxpayers
    22  in each county.
    23    § 2. Subsection (a) of section 614 of the tax law, as amended by chap-
    24  ter 170 of the laws of 1994, is amended to read as follows:
    25    (a)  Unmarried  individual. For taxable years beginning after nineteen
    26  hundred ninety-six, the New York standard deduction of a resident  indi-
    27  vidual  who  is  not married nor the head of a household nor a surviving
    28  spouse nor an individual whose federal exemption amount is zero shall be
    29  seven thousand five hundred dollars;  for  taxable  years  beginning  in
    30  nineteen  hundred  ninety-six,  such  standard  deduction shall be seven
    31  thousand four hundred dollars; for taxable years beginning  in  nineteen
    32  hundred  ninety-five,  such standard deduction shall be six thousand six
    33  hundred dollars; and for taxable years beginning after nineteen  hundred
    34  eighty-nine  and  before  nineteen  hundred  ninety-five,  such standard
    35  deduction shall be six thousand dollars.  For  taxable  years  beginning
    36  after  two  thousand sixteen, the New York standard deduction of a resi-
    37  dent individual who is between the ages of eighteen and twenty-four  and
    38  who  is  not  married nor the head of a household nor a surviving spouse
    39  nor an individual whose federal exemption amount is zero  shall  be  ten
    40  thousand dollars.
    41    §  3. Section 615 of the tax law is amended by adding a new subsection
    42  (h) to read as follows:
    43    (h) For taxable years beginning on and after January first, two  thou-
    44  sand  seventeen,  in  the  case of a resident individual, there shall be
    45  allowed as a deduction for the taxable  year  an  amount  equal  to  the
    46  interest  paid  by the taxpayer during the taxable year on any qualified
    47  education loan to the extent and as  provided  in  section  221  of  the
    48  Internal Revenue Code.
    49    § 4. This act shall take effect immediately and shall apply to taxable
    50  years  beginning  on  or  after  January 1, 2019 and shall expire and be
    51  deemed repealed December 31, 2024.
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