BILL NUMBER: S5358
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing a sanitary
sewer lateral pipe replacement or repair credit
 
PURPOSE:
The purpose of this bill is to allow for an individual taxpayer to
utilize a personal income tax credit when they incur the costs for the
replacement or repairs of a sanitary sewer lateral pipe, as recommended
by a certified plumber or by the municipality in which they reside.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends a new subsection ccc to the tax law to establish a tax
credit for taxpayers in owner occupied homes that replace or repair
their sanitary sewer pipe.
Section 2 establishes the effective date.
 
JUSTIFICATION:
A sanitary sewer lateral pipe is a privately owned pipeline that
connects a property to the publicly owned main sewer line. It is the
responsibility of the property owner to maintain and repair their
lateral pipeline. Unfortunately, many homeowners cannot afford to incur
that expense without putting them in a position of serious financial
hardship.
As our infrastructure, including lateral pipes, ages, it become weaker.
Lateral sewer pipes have a tendency to spring leaks, clog, and become
cracked by tree roots, often leading to sewage spills and overflows,
which are a threat to public health as well as the environment.
Costly upgrades make it difficult for most middle class families to
repair or replace their lateral pipeline. This could cost anywhere from
$1,500 to $15,000 depending on the condition and location of the pipe-
line.
Defective laterals contribute to a greater problem of increased stress
on our aging infrastructure. This bill will establish a personal income
tax credit to incentivize homeowners to repair or replace their lateral
pipelines in order to prevent these sewage spills as well as alleviate
the burden faced by the average homeowner. This credit will not exceed
$5 million dollars statewide.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S5726
2021-22:S.3954/A.772
2019-2020: 5.5219 Referred to Budget and Revenue
2017-2018: S.7180 Referred to Investigations and Government
Operations/ A.9623 Referred t6 Ways and Means
 
FISCAL IMPLICATIONS:
Up to $5 million annually
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S5358: 606 tax law