Bill Text: NY A09262 | 2023-2024 | General Assembly | Amended
Bill Title: Establishes a tax credit for contractors who award a subcontract to MWBE or SDVOBE subcontractors in furtherance of a state contract.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-16 - print number 9262a [A09262 Detail]
Download: New_York-2023-A09262-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9262--A IN ASSEMBLY February 22, 2024 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to establishing a MWBE or SDVOBE subcontractor tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 60 to read as follows: 3 60. MWBE or SDVOBE subcontractor tax credit. (a) Allowance of credit. 4 For taxable years beginning on or after January first, two thousand 5 twenty-five, an eligible taxpayer shall be allowed a credit, to be 6 computed as provided in this subdivision, against the tax imposed by 7 this article, for awarding a professional services, trades, or supplier 8 subcontract to a qualified subcontractor in furtherance of a state 9 contract. The taxpayer may claim the credit in the year in which payment 10 is made by the eligible taxpayer to the qualified subcontractor for the 11 performance of such subcontract. If the taxpayer claims the credit 12 allowed under this section, the taxpayer may not use the awarding of a 13 subcontract to a qualified subcontractor that is the basis for this 14 credit in the basis of any other credit allowed under this article. 15 (b) Definitions. (i) The term "qualified subcontractor" shall mean a 16 minority or woman-owned business enterprise certified pursuant to arti- 17 cle fifteen-A of the executive law or a service-disabled veteran-owned 18 business enterprise certified pursuant to article three of the veterans' 19 services law that maintains their headquarters within New York state. 20 (ii) The term "eligible taxpayer" shall mean a contractor that awards 21 a subcontract to a qualifying subcontractor in furtherance of a state 22 contract. 23 (iii) The term "state contract" shall mean a contract for the purchase 24 by the state of goods, property, or services or for the construction of 25 any building or structure for the state, which contract is executed by 26 any department, board, bureau, commission, or agency of the state, or by 27 any officer, official, employee, or agent thereof. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14557-04-4A. 9262--A 2 1 (c) Contractor prohibition. A contractor shall not discharge a 2 contract with a subcontractor and hire a qualifying subcontractor solely 3 for the purpose of qualifying for this credit unless the previous 4 contractor has been removed for reasons not under the control of the 5 contractor. 6 (d) Amount of credit. The amount of credit shall be thirty-five 7 percent of the total amount of payments made by the eligible taxpayer to 8 a qualifying subcontractor in the taxable year in which such credit is 9 claimed. 10 (e) Carryovers. The credit allowed under this subdivision for any 11 taxable year shall not reduce the tax due for such year to less than the 12 amount prescribed in paragraph (d) of subdivision one of section two 13 hundred ten of this article. However, if the amount of credit allowable 14 under this subdivision for any taxable year reduces the tax to such 15 amount or if the taxpayer otherwise pays tax based on the fixed dollar 16 minimum amount, any amount of credit not deductible in such taxable year 17 may be carried over to the following three years and may be deducted 18 from the taxpayer's tax for such year or years. 19 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 20 of the tax law is amended by adding a new clause (li) to read as 21 follows: 22 (li) MWBE or SDVOBE Amount of credit under subdivision 23 subcontractor tax sixty of section two hundred ten-B 24 credit under subsection (ppp) 25 § 3. Section 606 of the tax law is amended by adding a new subsection 26 (ppp) to read as follows: 27 (ppp) MWBE or SDVOBE subcontractor tax credit. (1) Allowance of cred- 28 it. For taxable years beginning on or after January first, two thousand 29 twenty-five, an eligible taxpayer shall be allowed a credit, to be 30 computed as provided in this section, against the tax imposed by this 31 article, for awarding a professional services, trades, or supplier 32 subcontract to a qualified subcontractor in furtherance of a state 33 contract. The taxpayer may claim the credit in the year in which payment 34 is made by the eligible taxpayer to the qualified subcontractor for the 35 performance of such subcontract. If the taxpayer claims the credit 36 allowed under this subsection, the taxpayer may not use the awarding of 37 a subcontract to a qualified subcontractor that is the basis for this 38 credit in the basis of any other credit allowed under this article. 39 (2) Definitions. (A) The term "qualified subcontractor" shall mean a 40 minority or woman-owned business enterprise certified pursuant to arti- 41 cle fifteen-A of the executive law or a service-disabled veteran-owned 42 business enterprise certified pursuant to article three of the veterans' 43 services law. 44 (B) The term "eligible taxpayer" shall mean a contractor that awards a 45 subcontract to a qualifying subcontractor in furtherance of a state 46 contract. 47 (C) The term "state contract" shall mean a contract for the purchase 48 by the state of goods, property, or services or for the construction of 49 any building or structure for the state, which contract is executed by 50 any department, board, bureau, commission, or agency of the state, or by 51 any officer, official, employee, or agent thereof or on New York state 52 capital infrastructure projects where a public benefit is derived 53 through license or utilization of state-owned lands. 54 (3) Contractor prohibition. A contractor shall not discharge a 55 contract with a subcontractor and hire a qualifying subcontractor solely 56 for the purpose of qualifying for this credit.A. 9262--A 3 1 (4) Amount of credit. The amount of credit shall be thirty-five 2 percent of the total amount of payments made by the eligible taxpayer to 3 a qualifying subcontractor in the taxable year in which such credit is 4 claimed. 5 (5) Application of credit. If the amount of the credit allowable under 6 this subsection for any taxable year exceeds the taxpayer's tax for such 7 year, the excess shall be treated as an overpayment of tax to be credit- 8 ed or refunded as provided in section six hundred eighty-six of this 9 article, provided, however, that no interest shall be paid thereon. 10 § 4. This act shall take effect immediately.
