Establishes a sump pump installation and replacement tax credit for homeowners who use the home as their principal residence and who have an income of less than $250,000.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9275
SPONSOR: Conrad TITLE OF BILL:
An act to amend the tax law, in relation to establishing a sump pump
installation and replacement credit
PURPOSE OR GENERAL IDEA OF BILL:
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 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.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
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:
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Up to $5 million statewide.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
commencing on or after such effective date.
