Allows an individual taxpayer to claim a credit against their income tax for excess premium paid during the applicable tax year for flood insurance providing coverage on the taxpayer's primary residence; authorizes the commissioner of taxation and finance to promulgate any necessary rules and regulations.
Summary
Bill A03373 proposes an amendment to the New York tax law that would allow individual taxpayers to claim a tax credit for excess premiums paid for flood insurance on their primary residences. The credit would be calculated based on the amount by which the premium exceeds five percent of the taxpayer's adjusted gross income, with a maximum credit of $1,250 per taxable year. The bill also stipulates that if the credit exceeds the taxpayer's tax liability, the excess can be treated as an overpayment and refunded, although no interest will be paid on the excess credit.
Impact
The introduction of this tax credit aims to alleviate the financial burden on homeowners who pay high premiums for flood insurance, particularly in areas prone to flooding. This change in state law could encourage more residents to obtain flood insurance, potentially leading to better preparedness for flood-related disasters. The bill sets a cap on the total amount of credits that can be claimed in a taxable year at $5 million, which may limit the overall fiscal impact on the state budget.
Sentiment
The sentiment surrounding Bill A03373 appears to be generally positive, as it addresses a significant concern for homeowners in flood-prone areas. However, there may be some apprehension regarding the fiscal implications of the tax credit, particularly in terms of the $5 million cap and its potential impact on state revenue.
Contention
Points of contention may arise regarding the fiscal responsibility of implementing this tax credit, especially from those concerned about the state's budget and the allocation of resources. Some lawmakers may argue that the cap on credits could be insufficient to meet the needs of all eligible taxpayers, while others may support the measure as a necessary step to support homeowners facing high flood insurance costs.
Same As
Allows an individual taxpayer to claim a credit against their income tax for excess premium paid during the applicable tax year for flood insurance providing coverage on the taxpayer's primary residence; authorizes the commissioner of taxation and finance to promulgate any necessary rules and regulations.