Bill > A03373

This bill creates a new tax credit for homeowners who pay flood insurance premiums that exceed 5% of their adjusted gross income. Specifically, taxpayers can claim a credit for the amount of flood insurance premiums paid above that 5% threshold, with a maximum credit of $1,250 per tax year. If the credit amount is larger than the taxpayer's total tax liability, the excess will be treated as an overpayment that can be refunded, though no interest will be paid on this amount. Additionally, any unused credit can be carried forward and applied to taxes for up to five subsequent years. The bill limits the total aggregate tax credits under this provision to $5 million per taxable year. The tax credit will become effective for taxable years beginning on or after January 1, 2026, and the New York State Commissioner of Taxation and Finance is authorized to create any necessary rules and regulations to implement this new tax credit. This legislation aims to provide financial relief to homeowners in flood-prone areas by offsetting the cost of mandatory flood insurance.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3373