BILL NUMBER: S5104
SPONSOR: HARCKHAM
 
TITLE OF BILL:
An act to amend the tax law, in relation to exempting qualified military
benefits of veterans from inclusion in a resident's adjusted gross
income
 
PURPOSE:
Exempts qualified military benefits of veterans from inclusion in a
resident's adjusted gross income
 
SUMMARY OF PROVISIONS:
Amends Section 1. Subsection C of Section 612 of the New York tax law by
adding a paragraph that states compensation, including compensation or
any kind of qualified military benefit with the exception of the benefit
of a personally operated vehicle received by former members of the
United States military, is not required to be included in gross earned
and unearned income reports for federal tax income purposes.
 
JUSTIFICATION:
As overdose numbers continue to rise, our Veterans are facing additional
barriers to accessing the care they desperately need to combat their
struggles with addiction. Providers are reporting that the accessibility
of treatment to veterans is reduced by a fiscal barrier.
When veterans enter screening and the intake process at any State-regu-
lated behavioral health provider, their insurance is reviewed to deter-
mine treatment coverage. Due to the inability for many providers to
accept TriCare insurance, which only partially reimburses for service,
and because the Federal VA Dept will not cover treatment expenses
outside of their own services, veterans are often required to pay for
services out of pocket.
Currently, New York contradicts the standard procedure that the Federal
Government recommends. The IRS asks that veterans report the compen-
sation, however, issues a voucher that excludes said compensation from
annual gross income. Many times providers offer a sliding fee scale
based on annual gross income to determine a payment structure for the
service recipient. If a service recipient receives compensation through
Service Connectivity or a VA-diagnosed disability, unlike the federal
government, New York currently considers this as "taxable income"
resulting in a higher out-of-pocket sliding fee scale price.
 
LEGISLATIVE HISTORY:
2023-2024: S5391 - Died in Budget and Revenue
2021-2022: S8283/A9476 - Died in Budget and Revenue/Died in Ways and
Means
 
FISCAL IMPLICATIONS:
Fiscal note to be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable 10
years beginning on and after January 1, 2026.

Statutes affected:
S5104: 612 tax law, 612(c) tax law