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 S05451 proposes an amendment to the New York tax law that allows individual taxpayers to claim a tax credit for excess premiums paid for flood insurance on their primary residence. The credit is designed to alleviate the financial burden on homeowners who pay more than five percent of their adjusted gross income in flood insurance premiums. The maximum credit amount is capped at $1,250 per taxpayer, and the total amount of credits available in any taxable year is limited to $5 million.
Impact
If enacted, this bill would create a new tax credit mechanism in New York, specifically targeting homeowners who face high flood insurance costs. It would amend Section 606 of the tax law, providing financial relief to taxpayers who are disproportionately affected by flood insurance premiums. The implementation of this tax credit could potentially encourage more homeowners to secure flood insurance, thereby enhancing community resilience against flooding events.
Sentiment
The sentiment surrounding Bill S05451 appears to be generally supportive, as it addresses a pressing issue for homeowners in flood-prone areas. However, there may be concerns regarding the fiscal implications of the credit cap and the overall budget impact, given the $5 million limit on total credits.
Contention
Notable points of contention may arise from the fiscal responsibility of the state in funding the tax credits, particularly in light of the cap on the total amount of credits available. Some lawmakers may express concerns about the sustainability of such a program and its potential impact on the state budget. Additionally, there may be discussions about the fairness of the income threshold set for claiming the credit, as it may not adequately address the needs of all affected homeowners.
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.
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.
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.
This bill allows an individual taxpayer a deduction from gross income for insurance premiums paid for the health care coverage of the taxpayer and the taxpayer's spouse and dependents. The bill makes the deduction available whether or not the taxpayer itemizes other deductions.