Bill Text: NY A02901 | 2019-2020 | General Assembly | Introduced
Bill Title: Establishes the New York entrepreneur program act authorizing SUNY to accept startup businesses into a loan deferral and repayment program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to higher education [A02901 Detail]
Download: New_York-2019-A02901-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2901 2019-2020 Regular Sessions IN ASSEMBLY January 28, 2019 ___________ Introduced by M. of A. LENTOL -- read once and referred to the Committee on Higher Education AN ACT to amend the education law and the tax law, in relation to estab- lishing the New York entrepreneur program act The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "New York entrepreneur program act". 3 § 2. Article 5 of the education law is amended by adding a new part 4 2-A to read as follows: 5 PART II-A 6 NEW YORK ENTREPRENEUR PROGRAM ACT 7 Section 286. New York entrepreneur program established; definitions. 8 286-a. Oversight. 9 286-b. Loan deferrals and job creation. 10 286-c. Tax credit for supporting businesses. 11 § 286. New York entrepreneur program established; definitions. 1. 12 There is hereby established a New York entrepreneur program under the 13 purview of the regents and the board for any startup business located at 14 any of the city university of New York's community colleges. Such 15 program shall provide access to technology to a select group of startup 16 entrepreneurs helping them create businesses that grow New York state's 17 economy. The program shall not provide business loans to the partic- 18 ipants. 19 2. For the purposes of this article, the following terms shall have 20 the following meanings: 21 (a) "Board" shall mean the board of trustees of the city university of 22 New York. 23 (b) "Participant" shall mean any college graduate accepted to the 24 program. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04452-01-9A. 2901 2 1 (c) "Program" shall mean the New York entrepreneur program established 2 pursuant to this section. 3 (d) "Regents" shall mean the board of regents of the state university. 4 (e) "School" shall mean any college within the state university or the 5 city university of New York. 6 (f) "Startup business" shall mean an entrepreneurial idea supported by 7 a business plan that a potential participant prepares when applying to 8 the program. 9 (g) "Supporting business" shall mean any person, firm, corporation, 10 partnership or other business entity which assists a startup business 11 during the five year period during which such startup business is part 12 of the program. 13 3. The regents shall promulgate such rules and regulations as they see 14 fit to implement the provisions of this article. 15 § 286-a. Oversight. 1. (a) The regents, in consultation with the board 16 for any startup business to be located at any of the city university of 17 New York's community colleges, shall select participants' startup busi- 18 nesses based on the quality of their business proposal, experience and 19 ability to obtain outside financing. 20 (b) Such program shall accept a maximum of three hundred participants 21 but shall not accept more than fifty participants into the program in 22 any year. 23 2. In addition to the loan deferral set forth in section two hundred 24 eighty-six-b of this article, the regents and the board for any startup 25 business located at any of the city university of New York's community 26 colleges shall provide for participants, during their five years of 27 participation in the program: 28 (a) free housing within the limits established by the regents; and 29 (b) access to school resources, including, but not limited to faculty 30 and technology. 31 3. (a) The regents and the board for any startup business located at 32 any of the city university of New York's community colleges, at the 33 recommendation of a school may terminate a participant's or startup 34 business' participation in the program. 35 (b) The regents shall establish an appeals process for terminated 36 participants and startup businesses to appeal such decisions. 37 4. (a) The progress of each startup business shall be monitored by the 38 regents, the school at which the participants operating such startup 39 business reside, a school-affiliated supervising officer or professor 40 and the board for any startup business located at any of the city 41 university of New York's community colleges. 42 (b) The regents or the board for any startup business located at any 43 of the city university of New York's community colleges shall compensate 44 such school-affiliated supervising officers or professors and the 45 regents may compensate other professors who take time to mentor partic- 46 ipants upon the request of a participant. 47 5. The regents and the board for any startup business located at any 48 of the city university of New York's community colleges shall maximize 49 the flexibility and minimize the burdens imposed by extensive paperwork 50 and filing procedures while maintaining the accountability of startups 51 and the program. 52 § 286-b. Loan deferrals and job creation. 1. Upon entering the 53 program, each participant will begin a five year period during which 54 time the state university, or the city university of New York for any 55 startup business located at any of the city university of New York's 56 community colleges, shall pay the minimum monthly payment on any studentA. 2901 3 1 loans such participant has outstanding until either (a) the participant 2 exits the program before the end of such five year period, or (b) the 3 participant completes five years in the program when upon such time he 4 or she shall be evaluated against the job creation criteria in subdivi- 5 sions two and three of this section. 6 2. After five years, startups that have created a certain number of 7 jobs within New York state shall have a maximum of three participants' 8 loans fully paid off by the state pursuant to the schedule set forth in 9 subdivision three of this section. 10 3. Number of full-time Percentage of loan 11 employees (excluding paid off per year 12 participants) 13 3 10% 14 4 15% 15 5 20% 16 6+ 25% 17 § 286-c. Tax credit for supporting businesses. 1. The commissioner of 18 taxation and finance shall grant a credit against any tax due under the 19 provisions of articles nine, nine-A and twenty-two of the tax law in an 20 amount equal to the amount specified by the regents in any tax credit 21 voucher issued by such regents pursuant to subdivision two of this 22 section. 23 2. The regents shall establish a system of tax credit vouchers for 24 supporting businesses allowing the use of equipment essential to the 25 function or growth of any startup business. Such vouchers may be used as 26 a credit against any of the taxes to which such supporting business is 27 subject and which are enumerated in subdivision one of this section. 28 The amount of the tax credit voucher shall equal the price to rent such 29 equipment. 30 § 3. The tax law is amended by adding a new section 44 to read as 31 follows: 32 § 44. New York entrepreneur program credit. (a) General. A taxpayer 33 subject to tax under article nine, nine-A or twenty-two of this chapter 34 shall be allowed a credit against such tax pursuant to the provisions 35 referenced in subdivision (d) of this section. The credit (or pro rata 36 share of earned credit in the case of a partnership) shall equal the 37 amount specified by the regents pursuant to section two hundred eighty- 38 six-c of the education law. 39 (b) Definitions. For the purpose of this section, the term "startup 40 business" shall mean an entrepreneurial idea supported by a business 41 plan that a potential participant prepares when applying to the New York 42 entrepreneur program established pursuant to section two hundred eight- 43 y-six of the education law. 44 (c) Reporting requirements. A taxpayer wishing to claim a credit under 45 this section shall annually certify to the commissioner the rental value 46 of equipment used by startup businesses that such taxpayer supported. 47 (d) Cross-references. For application of the credit provided for in 48 this section, see the following provisions of this chapter: 49 (1) Article 9: Section 187-t. 50 (2) Article 9-A: Section 210-B, subdivision 53. 51 (3) Article 22: Section 606, clause (xliv) of subparagraph (B) of 52 paragraph one of subsection (i) and subsection (jjj). 53 § 4. The tax law is amended by adding a new section 187-t to read as 54 follows: 55 § 187-t. New York entrepreneur program credit. A taxpayer shall be 56 allowed a credit to be computed as provided in section forty-four ofA. 2901 4 1 this chapter, against the tax imposed by this article. Provided, howev- 2 er, that the amount of such credit allowed against the tax imposed by 3 section one hundred eighty-four of this article shall be the excess of 4 the amount of such credit over the amount of any credit allowed by this 5 section against the tax imposed by section one hundred eighty-three of 6 this article. In no event shall the credit under this section be allowed 7 in an amount which will reduce the tax payable to less than the applica- 8 ble minimum tax fixed by section one hundred eighty-three of this arti- 9 cle. If, however, the amount of the credit allowed under this section 10 for any taxable year reduces the tax to such amount, the excess shall be 11 treated as an overpayment of tax to be credited or refunded in accord- 12 ance with the provisions of section six hundred eighty-six of this chap- 13 ter. Provided, however, the provisions of subsection (c) of section one 14 thousand eighty-eight of this chapter notwithstanding, no interest shall 15 be paid thereon. 16 § 5. Section 210-B of the tax law is amended by adding a new subdivi- 17 sion 53 to read as follows: 18 53. New York entrepreneur program credit. A taxpayer shall be allowed 19 a credit, to be computed as provided in section forty-four of this chap- 20 ter, against the tax imposed by this article. In no event shall the 21 credit provided herein be allowed in an amount which will reduce the tax 22 payable to less than the fixed dollar minimum amount prescribed in para- 23 graph (d) of subdivision one of section two hundred ten of this article. 24 However, if the amount of credit allowed under this subdivision for any 25 taxable year reduces the tax to such amount, any amount of credit thus 26 not deductible in such taxable year shall be treated as an overpayment 27 of tax to be credited or refunded in accordance with the provisions of 28 section one thousand eighty-six of this chapter. Provided, however, the 29 provisions of subsection (c) of section one thousand eighty-eight of 30 this chapter notwithstanding, no interest shall be paid thereon. 31 § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 32 of the tax law is amended by adding a new clause (xliv) to read as 33 follows: 34 (xliv) New York Amount of credit under subdivision 35 entrepreneur program fifty-three of section two hundred 36 credit under subsection (jjj) ten-B 37 § 7. Section 606 of the tax law is amended by adding a new subsection 38 (jjj) to read as follows: 39 (jjj) New York entrepreneur program credit. A taxpayer shall be 40 allowed a credit to be computed as provided in section forty-four of 41 this chapter, against the tax imposed by this article. If the amount of 42 the credit allowed under this subsection for any taxable year shall 43 exceed the taxpayer's tax for such year, the excess shall be treated as 44 an overpayment of tax to be credited or refunded in accordance with the 45 provisions of section six hundred eighty-six of this article, provided, 46 however, that no interest shall be paid thereon. 47 § 8. This act shall take effect on the one hundred twentieth day after 48 it shall have become a law. Effective immediately, the addition, amend- 49 ment and/or repeal of any rule or regulation necessary for the implemen- 50 tation of this act on its effective date is authorized to be made on or 51 before such date.