Bill > S05864

This bill establishes a new tax credit for renters who pay more than 30% of their gross income in rent, with the credit amount varying based on the taxpayer's income level. Specifically, the bill provides a graduated tax credit for "qualified taxpayers" - individuals who lease their primary residence and spend more than 30% of their gross income on rent. The credit percentages range from 100% for those earning $25,000 or less to 0% for those earning $100,000 or more (or $125,000 in certain high-cost housing areas). The bill includes special provisions for areas with higher fair market rents and for residents receiving rent subsidies. There is a limitation that rent considered for the credit cannot exceed 150% of the fair market rent published by the U.S. Department of Housing and Urban Development. If the credit amount exceeds the taxpayer's annual tax liability, the excess will be treated as an overpayment and refunded. The bill defines "rent" to include utility payments and uses federal adjusted gross income as the basis for income calculations. The tax credit will take effect on the first day of January following the bill's passage and will apply to taxable years starting on or after that date.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5864