Bill Text: NY A05250 | 2021-2022 | General Assembly | Introduced
Bill Title: Creates a small business electric energy tax credit; specifies that the amount of credit shall be equal to the product of $0.02 per kilowatt hour; sets limit of no more than 19 full-time employees in New York state; determines that if the business is located at the primary residence of a sole proprietor, the business is not eligible for the tax credit.
Spectrum: Moderate Partisan Bill (Democrat 11-2)
Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A05250 Detail]
Download: New_York-2021-A05250-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5250 2021-2022 Regular Sessions IN ASSEMBLY February 12, 2021 ___________ Introduced by M. of A. GUNTHER, LUPARDO, COLTON, CUSICK, ZEBROWSKI, PEOPLES-STOKES, AUBRY, PERRY, BRABENEC -- Multi-Sponsored by -- M. of A. COOK, DAVILA, GOODELL, J. RIVERA -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to a small business electric energy 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 55 to read as follows: 3 55. Small business electric energy tax credit. (a) A taxpayer that is 4 eligible under the limitations specified in paragraph (b) of this subdi- 5 vision shall be allowed a credit against the tax imposed by this arti- 6 cle. The amount of the credit shall be equal to the product of two 7 cents per kilowatt hour for all business related electricity usage at 8 the taxpayer's primary business location. 9 (b) An eligible taxpayer shall (i) have no more than nineteen full 10 time equivalent employees in New York state, including any related 11 members or affiliates, (ii) not be a sole-proprietorship if such sole- 12 proprietor's primary business location is sited in or part of such sole- 13 proprietor's place of residence, (iii) not be certified pursuant to 14 article eighteen-B of the general municipal law, and (iv) not be receiv- 15 ing any allocation or award pursuant to any program authorized under 16 article six of the economic development law. 17 (c) (i) The term "business related electricity usage" shall refer to 18 electrical power usage used to further the economic activity of the 19 taxpayer at the primary business location that is clearly delimited from 20 any shared electrical power usage cost. (ii) The term "primary business 21 location" shall mean the physical site of the taxpayer within the state 22 of New York where the majority of the taxpayer's economic activity is 23 generated or coordinated through. (iii) The term "related members" EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02501-01-1A. 5250 2 1 shall have the same meaning as set forth in clauses (A) and (B) of 2 subparagraph one of paragraph (o) of subdivision nine of section two 3 hundred eight of this article, and the term "affiliates" shall mean 4 those corporations that are members of the same affiliated group (as 5 defined in section fifteen hundred four of the internal revenue code) as 6 the taxpayer. 7 (d) The eligible usage level shall be the total kilowatt hour usage of 8 the taxpayer for business related electricity usage during the taxpay- 9 er's taxable year as verified through bills or other form of usage chart 10 provided to the taxpayer by the taxpayer's electricity power service 11 provider. 12 (e) In no event shall the credit provided for in this subdivision be 13 allowed in an amount which will reduce the tax payable to less than the 14 fixed dollar minimum amount prescribed in paragraph (d) of subdivision 15 one of section two hundred ten of this article. However, if the amount 16 of credit allowed under this subdivision for any taxable year reduces 17 the tax to such amount, any amount of credit not deductible in such 18 taxable year shall be treated as an overpayment of tax to be credited or 19 refunded in accordance with the provisions of section one thousand 20 eighty-six of this chapter. Provided, however, the provisions of 21 subsection (c) of section one thousand eighty-eight of this chapter 22 notwithstanding, no interest shall be paid thereon. 23 § 2. Section 606 of the tax law is amended by adding a new subsection 24 (kkk) to read as follows: 25 (kkk) Small business electric energy tax credit. (1) A taxpayer that 26 is eligible under the limitations specified in paragraph two of this 27 subsection shall be allowed a credit against the tax imposed by this 28 article. The amount of the credit shall be equal to the product (or pro 29 rata share of the product in the case of a partnership) of two cents per 30 kilowatt hour for all business related electricity usage at the taxpay- 31 er's primary business location. 32 (2) An eligible taxpayer shall (i) have no more than nineteen full 33 time equivalent employees in New York state, including any related 34 members or affiliates, (ii) shall not be a sole-proprietorship if such 35 sole-proprietor's primary business location is sited in or part of such 36 sole-proprietor's place of residence, (iii) not be certified pursuant to 37 article eighteen-B of the general municipal law, and (iv) not be receiv- 38 ing any allocation or award pursuant to any program authorized under 39 article six of the economic development law. 40 (3) (i) The term "business related electricity usage" shall refer to 41 electrical power usage used to further the economic activity of the 42 taxpayer at the primary business location that is clearly delimited from 43 any shared electrical power usage cost. (ii) The term "primary business 44 location" shall mean the physical site of the taxpayer within the state 45 of New York where the majority of the taxpayer's economic activity is 46 generated or coordinated through. (iii) The term "related members" shall 47 have the same meaning as set forth in clauses (A) and (B) of subpara- 48 graph one of paragraph (o) of subdivision nine of section two hundred 49 eight of this chapter, and the term "affiliates" shall mean those corpo- 50 rations that are members of the same affiliated group (as defined in 51 section fifteen hundred four of the internal revenue code) as the 52 taxpayer. 53 (4) The eligible usage level shall be the total kilowatt hour usage of 54 the taxpayer for business related electricity usage during the taxpay- 55 er's taxable year as verified through bills or other form of usage chartA. 5250 3 1 provided to the taxpayer by the taxpayer's electricity power service 2 provider. 3 (5) If the amount of credit allowed under this subsection for any 4 taxable year shall exceed the taxpayer's tax for such year, the excess 5 shall be treated as an overpayment of tax to be credited or refunded in 6 accordance with the provisions of section six hundred eighty-six of this 7 article, provided, however, that no interest shall be paid thereon. 8 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 9 of the tax law is amended by adding a new clause (xlvi) to read as 10 follows: 11 (xlvi) Small business electric Qualifying electricity usage 12 energy tax credit under subdivision fifty-five 13 under subsection (kkk) of section two hundred ten-B 14 § 4. This act shall take effect immediately and shall apply to taxable 15 years beginning on or after January 1, 2021.
