Bill Text: NY A01381 | 2015-2016 | General Assembly | Introduced

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Bill Title: Provides a tax credit for taxpayers who purchase local materials from companies within a fifteen mile radius of such taxpayer's business.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-06 - referred to ways and means [A01381 Detail]

Download: New_York-2015-A01381-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1381
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 12, 2015
                                      ___________
       Introduced by M. of A. LENTOL -- read once and referred to the Committee
         on Ways and Means
       AN ACT to amend the tax law, in relation to authorizing a local material
         tax credit
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The tax law is amended by adding a new section 42  to  read
    2  as follows:
    3    S  42. LOCAL MATERIAL CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT
    4  PURCHASES MATERIALS FROM COMPANIES LOCATED WITHIN A FIFTEEN MILE  RADIUS
    5  OF  SUCH  TAXPAYER'S  BUSINESS, AND THAT IS SUBJECT TO TAX UNDER ARTICLE
    6  NINE-A OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT  AGAINST
    7  SUCH  TAX,  PURSUANT  TO THE PROVISIONS REFERENCED IN SUBDIVISION (B) OF
    8  THIS SECTION, EQUAL TO TEN  PERCENT  OF  THE  TOTAL  RECEIPTS  FROM  THE
    9  PURCHASE OF MATERIALS FROM COMPANIES LOCATED WITHIN A FIFTEEN MILE RADI-
   10  US OF SUCH TAXPAYER'S BUSINESS.
   11    (B)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
   12  THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   13    (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 49.
   14    (2) ARTICLE 22: SECTION 606: SUBSECTION (CCC).
   15    S 2. Section 210-B of the tax law is amended by adding a new  subdivi-
   16  sion 49 to read as follows:
   17    49.  LOCAL  MATERIAL CREDIT. (A) ALLOWANCE OF CREDIT.  A TAXPAYER THAT
   18  IS ELIGIBLE PURSUANT TO SECTION  FORTY-TWO  OF  THIS  CHAPTER  SHALL  BE
   19  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION FORTY-TWO OF
   20  THIS CHAPTER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   21    (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
   22  FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
   23  THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
   24  SECTION TWO HUNDRED TEN OF THIS ARTICLE.  PROVIDED, HOWEVER, THAT IF THE
   25  AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01482-01-5
       A. 1381                             2
    1  YEAR  REDUCES  THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN
    2  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
    3  PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
    4  HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
    5  Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
    6  EON. THE BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE
    7  YEAR MAY NOT BE CARRIED OVER TO ANY SUCCEEDING TAXABLE YEAR.
    8    S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    9  of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
   10  follows:
   11  (XLI) CREDIT FOR COMPANIES THAT      AMOUNT OF CREDIT UNDER
   12  PURCHASE LOCAL MATERIALS             SUBDIVISION FORTY-NINE OF
   13  UNDER SUBSECTION (CCC)               SECTION TWO HUNDRED TEN-B
   14    S  4. Section 606 of the tax law is amended by adding a new subsection
   15  (ccc) to read as follows:
   16    (CCC) LOCAL MATERIAL CREDIT. (1) ALLOWANCE OF CREDIT.  A TAXPAYER THAT
   17  IS ELIGIBLE PURSUANT TO SECTION  FORTY-TWO  OF  THIS  CHAPTER  SHALL  BE
   18  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION FORTY-TWO OF
   19  THIS CHAPTER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   20    (2)  APPLICATION  OF  CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
   21  FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
   22  THAN  THE  AMOUNT  PRESCRIBED  IN  SECTION SIX HUNDRED TWO OF THIS PART.
   23  PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS
   24  SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO  SUCH  AMOUNT,  THE
   25  EXCESS  SHALL  BE  TREATED  AS  AN  OVERPAYMENT OF TAX TO BE CREDITED OR
   26  REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
   27  EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
   28  SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
   29  NOTWITHSTANDING,  NO INTEREST SHALL BE PAID THEREON. THE BALANCE OF SUCH
   30  CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY NOT BE  CARRIED
   31  OVER TO  ANY SUCCEEDING TAXABLE YEAR.
   32    S 5. This act shall take effect immediately and shall apply to taxable
   33  years beginning on and after January 1, 2015.