New York Assembly Bill A07658

New York 2025-2026 Regular Session

• Introduced: 4/4/25
• Refer: 4/4/25
• Refer: 1/7/26

Caption

Provides for a refund of any excess amount of tax paid after reduction of other credits and the credit for long-term care insurance.

Summary

Bill A07658 amends the New York tax law to provide a refund for excess taxes paid after applying the long-term care insurance credit. This credit allows residents to claim a credit equal to 20% of the premiums paid for long-term care insurance, capped at $1,500, provided their adjusted gross income is below $250,000. The bill also stipulates that if the credit exceeds the taxpayer's tax liability, the excess can be refunded as an overpayment without interest, allowing taxpayers to receive a refund rather than carry the excess forward to future tax years.

Impact

The bill modifies existing tax law to enhance the financial relief available to taxpayers who purchase long-term care insurance. By allowing refunds for excess credits, it aims to provide immediate financial benefits to eligible taxpayers, potentially increasing the uptake of long-term care insurance policies. This change may also influence the overall tax revenue collected by the state, as it could lead to a decrease in tax liabilities for a segment of taxpayers.

Sentiment

The sentiment around Bill A07658 appears to be generally positive, as it seeks to provide financial relief to taxpayers and promote long-term care insurance. However, there may be concerns regarding the fiscal implications of increased refunds on state revenue, which could lead to discussions about budget impacts in committee meetings.

Contention

Notable points of contention may arise regarding the fiscal responsibility of providing such refunds and the potential impact on state budget allocations. Some legislators may argue that while the bill supports taxpayers, it could strain state resources, especially if a significant number of taxpayers claim the credit and subsequent refunds.