S 171: Establishes a credit against income tax for qualified union dues paid to a labor organization on and after January 1, 2026.
The proposed law aims to provide a tax credit for taxpayers who pay union dues to a labor organization. A taxpayer will be allowed a credit against the tax imposed by the law, equal to the amount of qualified union dues paid during the tax year. If the credit exceeds the taxpayer's tax for the year, the excess will be treated as an overpayment of tax and can be credited or refunded. The credit can be claimed in a manner prescribed by the commissioner, and the taxpayer must provide supporting documentation. The law defines a labor organization as any organization in which employees participate to deal with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. Qualified union dues refer to reimbursed dues, fees, assessments, or other charges or expenses required of members of a labor organization or bargaining representative.
| Jan. 07, 2026 | REFERRED TO BUDGET AND REVENUE |
| Jan. 08, 2025 | REFERRED TO BUDGET AND REVENUE |
STATE OF NEW YORK ________________________________________________________________________ 171 2025-2026 Regular Sessions IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sen. RAMOS -- 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 establishing a tax credit for the payment of union dues 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 (qqq) to read as follows: 3 (qqq) Credit for payment of union dues. (1) Allowance of credit. For 4 taxable years beginning on or after January first, two thousand twenty- 5 six, a taxpayer shall be allowed a credit against the tax imposed by 6 this article, for qualified union dues paid to a labor organization. 7 The amount of the credit shall be equal to the amount of the qualified 8 union dues paid to a labor organization by the taxpayer during the tax 9 year. 10 (2) Application of credit. If the amount of the credit allowed under 11 this subsection for any taxable year shall exceed the taxpayer's tax for 12 such year, the excess shall be treated as an overpayment of tax to be 13 credited or refunded in accordance with the provisions of section six 14 hundred eighty-six of this article, provided, however, that no interest 15 shall be paid thereon. 16 (3) Claim for credit. Any claim for such credit shall be made in a 17 manner prescribed by the commissioner and shall include any supporting 18 documentation as the commissioner deems necessary. 19 (4) Definitions. For the purposes of this subsection: 20 (i) "Bargaining representative" means a labor organization recognized 21 by an employer or certified by the commissioner of labor as the sole and 22 exclusive bargaining representative of certain employees of the employ- 23 er. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00761-01-5S. 171 2 1 (ii) "Labor organization" means any organization of any kind, or any 2 agency or employee representation committee or plan, in which employees 3 participate and that exists for the purpose, in whole or in part, of 4 dealing with employers concerning grievances, labor disputes, wages, 5 rates of pay, hours of employment, or conditions of work. 6 (iii) "Qualified union dues" means the total amount of reimbursed 7 dues, fees, assessments, or other charges or expenses required of 8 members of or public employees represented by a labor organization or 9 bargaining representative. 10 § 2. This act shall take effect immediately.