STATE OF NEW YORK ________________________________________________________________________ 1843 2023-2024 Regular Sessions IN SENATE January 17, 2023 ___________ Introduced by Sens. COMRIE, ADDABBO, BAILEY, HOYLMAN-SIGAL, MYRIE, PERSAUD, SEPULVEDA -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to providing tax credits for the installation of fire sprinkler systems The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 606 of the tax law is amended by adding a new 2 subsection (ooo) to read as follows: 3 (ooo) Fire sprinkler tax credit for residential properties. (1) Allow- 4 ance of credit. A taxpayer who is a residential property owner shall be 5 allowed a credit, to be computed as hereinafter provided, against the 6 tax imposed by this article. The amount of the credit shall be equal to 7 twenty-five percent of the cost of the labor and materials needed to 8 install sprinkler systems as defined by section one hundred fifty-five-a 9 of the executive law, by the residential property owner, provided, 10 however, that this subsection shall apply only to residential properties 11 in municipalities that do not already require fire sprinkler systems be 12 installed. 13 (2) Credit limitation. The amount of the credit that may be claimed by 14 a taxpayer pursuant to this subsection shall not exceed five thousand 15 dollars in any given year. 16 (3) Application of credit. If the amount of the credit allowed under 17 this subsection for any taxable year shall exceed the taxpayer's tax for 18 such year, the excess shall be treated as an overpayment of tax to be 19 credited or refunded in accordance with the provisions of section six 20 hundred eighty-six of this article, provided, however, that no interest 21 shall be paid thereon. 22 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 23 sion 59 to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03500-01-3S. 1843 2 1 59. Fire sprinkler tax credit for residential properties. (1) Allow- 2 ance of credit. A taxpayer who is a residential property owner shall be 3 allowed a credit, to be computed as hereinafter provided, against the 4 tax imposed by this article. The amount of the credit shall be equal to 5 twenty-five percent of the cost of the labor and materials needed to 6 install sprinkler systems as defined by section one hundred fifty-five-a 7 of the executive law, by the residential property owner, provided, 8 however, that this subdivision shall apply only to residential proper- 9 ties in municipalities that do not already require fire sprinkler 10 systems be installed. 11 (2) Credit limitation. The amount of the credit that may be claimed by 12 a taxpayer pursuant to this subdivision shall not exceed five thousand 13 dollars in any given year. 14 (3) Application of credit. The credit allowed under this subdivision 15 for any taxable year shall not reduce the tax due for such year to less 16 than the fixed dollar minimum amount prescribed in paragraph (d) of 17 subdivision one of section two hundred ten of this chapter. However, if 18 the amount of credits allowed under this subdivision for any taxable 19 year reduces the tax to such amount or if the taxpayer otherwise pays 20 tax based on the fixed dollar minimum amount, any amount of credit thus 21 not deductible in such taxable year shall be treated as an overpayment 22 of tax to be credited or refunded in accordance with the provisions of 23 section one thousand eighty-six of this chapter. Provided, however, the 24 provisions of subsection (c) of section one thousand eighty-eight of 25 this chapter notwithstanding, no interest shall be paid thereon. 26 § 3. This act shall take effect immediately and shall apply to taxable 27 years beginning on or after January 1, 2023.