BILL NUMBER: S5451
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the tax law, in relation to allowing an individual
taxpayer to claim a credit against their income tax for excess premium
paid during the applicable tax year for flood insurance providing cover-
age on the taxpayer's primary residence
 
PURPOSE:
The purpose of this bill is to establish a flood insurance tax credit
for the primary residence of New Yorkers.
 
SUMMARY OF PROVISIONS:
Section 1 of this bill would amend section 606 of the Tax Law to add a
new subsection (qqq) creating the flood insurance tax credit. The amount
of the credit may not exceed $1,250 for any excess premium paid by the
taxpayer that exceeds 5% of the taxpayer's adjusted gross income. If the
amount of the credit allowed exceeds the taxpayer's tax for a given year
a taxpayer can opt to have it refunded to them or credited towards
future tax years. Total credits would be capped at $5 million.
Section 2 of this bill provides that the effective date shall take
effect immediately and shall apply to taxable years beginning on and
after January 1, 2024.
 
JUSTIFICATION:
The National Flood Insurance Program (NFIP) is a vital program for New
Yorkers who reside in high-risk areas are only able to obtain flood
insurance through the NFIP. The NFIP is a long lasting federal program
that has an accumulated debt of $20.5 billion, after having $16 billion
canceled, and continues to race towards reaching its debt cap. In order
to bring stability to the NFIP, coastal homeowners across the state are
seeing flood insurance premium increases.
New Yorkers have been able to benefit from federal subsidies in the past
that were intended to encourage homeowners at risk of flooding to buy
insurance. In addition to the premium increases, with any subsidies
phasing out, this creates even more financial pressure on homeowners.
Flood insurance policies can cost upwards of several thousand dollars a
year and even more for homeowners who live in coastal areas. This cost
can play a significant role in the costs of homeownership. Many homeown-
ers are working hard to decrease their insurance costs through reno-
vations to their homes to raise them out of the reach of floodwater. By
establishing a State tax credit for flood insurance, New York State can
take a positive step in helping more New Yorkers to afford flood insur-
ance coverage.
 
LEGISLATIVE HISTORY:
2023-24; S4056B- REFERRED TO BUDGET AND REVENUE
2021-22: S.92 (Kaminksy) - Referred to Budget and Finance.
2019-20: S.91 (Kaminksy) - Referred to Investigation and Government.
2017-18: S.6592 (Kaminsky) - Referred to Investigation and Government
Operations.
 
FISCAL IMPLICATIONS:
If enacted, this measure would reduce State revenue by up to $5 million.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2024. Effective immediately, the addi-
tion, amendment and/or repeal of any rule or regulation necessary for
the implementation of this act on its effective date are authorized to
be made and completed on or before such effective date.

Statutes affected:
S5451: 606 tax law