Bill Text: NY A02719 | 2023-2024 | General Assembly | Introduced
Bill Title: Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2024-01-03 - referred to ways and means [A02719 Detail]
Download: New_York-2023-A02719-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2719 2023-2024 Regular Sessions IN ASSEMBLY January 26, 2023 ___________ Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing business fran- chise and personal income tax credits for certain businesses which contract with the state or political subdivisions thereof and in unre- lated contracts, also with minority and women-owned business enter- prises 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 28 to read as follows: 3 28. Minority and women-owned business employment incentive credit. (a) 4 General. A taxpayer shall be allowed a credit, to be computed as 5 provided in this subdivision, against the tax imposed by this article 6 for a certain portion of the consideration paid to a minority or women- 7 owned business enterprise pursuant to a contract for the provision of 8 goods or services. The credit provided for in this subdivision shall be 9 allowed with respect to the tax year in which the consideration is paid 10 to the minority or women-owned business enterprise. 11 (b) Definitions. For the purposes of this subdivision, the following 12 terms shall mean: 13 (i) "Government agency" means a state agency or a state authority as 14 defined in subdivision eleven of section three hundred ten of the execu- 15 tive law, or a political subdivision as defined in subdivision one of 16 section one hundred of the general municipal law. 17 (ii) "Minority or women-owned business enterprise" means a minority- 18 owned business enterprise as defined in subdivision seven of section 19 three hundred ten of the executive law or a women-owned business enter- 20 prise as defined in subdivision fifteen of section three hundred ten of 21 the executive law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01872-01-3A. 2719 2 1 (c) Computation. The credit authorized by this subdivision shall be 2 equal to one-third of all expenditures paid by the taxpayer to a minori- 3 ty or women-owned business enterprise pursuant to a contract for the 4 provision of goods and services during the tax year, provided that such 5 contract was not subject to the provisions of article fifteen-A of the 6 executive law or any other provision of law mandating contracts with a 7 minority or women-owned business, and the taxpayer is not a minority or 8 women-owned business enterprise. Furthermore, the amount of such credit 9 shall not exceed the lesser of fifteen thousand dollars or five percent 10 of all consideration paid to the taxpayer during the tax year pursuant 11 to contracts with government agencies for the provision of goods or 12 services. For companies with no contracts with government agencies, the 13 amount of the credit shall not exceed fifteen thousand dollars. 14 (d) Carryover. In no event shall the credit authorized by this subdi- 15 vision be allowed in an amount which shall reduce the tax payable to 16 less than the fixed dollar minimum amount prescribed in paragraph (d) of 17 subdivision one of section two hundred ten of this article. Provided, 18 however, that if the amount of credit allowed under this subdivision for 19 any taxable year reduces the tax to such amount or if the taxpayer 20 otherwise pays tax based on the fixed dollar minimum amount, any amount 21 of credit not deductible in such taxable year may be carried over to the 22 following year or years and may be deducted from the taxpayer's tax for 23 such year or years. 24 (e) The aggregate amount of tax credits allowed under this subdivision 25 and subsection (ooo) of section six hundred six of this chapter in any 26 calendar year statewide shall be five million dollars. Such aggregate 27 amount of credits shall be allocated pursuant to rules and regulations 28 promulgated by the commissioner. 29 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 30 of the tax law is amended by adding a new clause (xlx) to read as 31 follows: 32 (xlx) Minority and Amount of credit 33 women-owned business under subdivision 34 employment incentive twenty-eight of 35 credit under section two 36 subsection (ooo) hundred ten-B 37 § 3. Section 606 of the tax law is amended by adding a new subsection 38 (ooo) to read as follows: 39 (ooo) Minority and women-owned business employment incentive credit. 40 (1) General. A taxpayer shall be allowed a credit to be computed as 41 provided in this subsection, against the tax imposed by this article for 42 a certain portion of the consideration paid to a minority or women-owned 43 business enterprise pursuant to a contract for the provision of goods or 44 services. The credit provided for in this subsection shall be allowed 45 with respect to the tax year in which the consideration is paid to the 46 minority or women-owned business enterprise. 47 (2) Definitions. For the purposes of this subsection, the following 48 terms shall mean: 49 (i) "Government agency" means a state agency or a state authority as 50 defined in subdivision eleven of section three hundred ten of the execu- 51 tive law, or a political subdivision as defined in subdivision one of 52 section one hundred of the general municipal law. 53 (ii) "Minority or women-owned business enterprise" means a minority- 54 owned business enterprise as defined in subdivision seven of section 55 three hundred ten of the executive law or a women-owned business enter-A. 2719 3 1 prise as defined in subdivision fifteen of section three hundred ten of 2 the executive law. 3 (3) Computation. The credit authorized by this subsection shall be 4 equal to one-third of all expenditures paid by the taxpayer to a minori- 5 ty or women-owned business enterprise pursuant to a contract for the 6 provision of goods and services during the tax year, provided that such 7 contract was not subject to the provisions of article fifteen-A of the 8 executive law or any other provision of law mandating contracts with a 9 minority or women-owned business, and the taxpayer is not a minority or 10 women-owned business enterprise. Furthermore, the amount of such credit 11 shall not exceed the lesser of fifteen thousand dollars or five percent 12 of all consideration paid to the taxpayer during the tax year pursuant 13 to contracts with government agencies for the provision of goods or 14 services. For companies with no contracts with government agencies, the 15 amount of the credit shall not exceed fifteen thousand dollars. 16 (4) Carryover. If the amount of credit provided by this subsection for 17 any taxable year exceeds the taxpayer's tax for such year, the excess 18 may be carried over to the following year or years, and may be deducted 19 from the taxpayer's tax for such year or years. 20 (5) The aggregate amount of tax credits allowed under this subsection 21 and subdivision twenty-eight of section two hundred ten-B of this chap- 22 ter in any calendar year statewide shall be five million dollars. Such 23 aggregate amount of credits shall be allocated pursuant to rules and 24 regulations promulgated by the commissioner. 25 § 4. This act shall take effect on the first of January next succeed- 26 ing the date on which it shall have become a law and shall apply to tax 27 years commencing on or after such date.
