Bill Text: NY A05297 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the tax law, in relation to establishing a credit for employers for wages associated with information technology security employees, and providing a deduction for businesses for the expenses of certain other security-related measures
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-01-06 - referred to ways and means [A05297 Detail]
Download: New_York-2009-A05297-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5297 2009-2010 Regular Sessions I N A S S E M B L Y February 11, 2009 ___________ Introduced by M. of A. MORELLE, KOON -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing a credit for employers for wages associated with information technology security employees, and providing a deduction for businesses for the expenses of certain other security-related measures 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 30 to read 2 as follows: 3 S 30. INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (A) ALLOWANCE OF 4 CREDIT. A TAXPAYER WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE-A, TWEN- 5 TY-TWO, THIRTY-TWO, OR THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED A 6 CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDI- 7 VISION (E) OF THIS SECTION, TO BE COMPUTED AS PROVIDED IN SUBDIVISION 8 (D) OF THIS SECTION. 9 (B) QUALIFIED EMPLOYEE. THE TERM "QUALIFIED EMPLOYEE" SHALL MEAN A 10 PERSON HIRED AND EMPLOYED FOR THE SOLE PURPOSE OF PROVIDING INFORMATION 11 TECHNOLOGY SECURITY. 12 (C) QUALIFIED INFORMATION SECURITY WAGES. THE TERM "QUALIFIED INFORMA- 13 TION SECURITY WAGES" SHALL MEAN THE TOTAL AMOUNT OF THE SALARIES OR 14 WAGES PAID TO QUALIFIED EMPLOYEES DURING A TAXABLE YEAR. 15 (D) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL FIFTY 16 PERCENT OF THE TOTAL AMOUNT OF QUALIFIED INFORMATION SECURITY WAGES PAID 17 TO QUALIFIED EMPLOYEES. 18 (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN 19 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: 20 (1) SUBDIVISION FORTY-ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER; 21 (2) SUBSECTION (QQ) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER; 22 (3) SUBSECTION (U) OF SECTION FOURTEEN HUNDRED FIFTY-SIX OF THIS CHAP- 23 TER; EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08311-01-9 A. 5297 2 1 (4) SUBDIVISION (Y) OF SECTION FIFTEEN HUNDRED ELEVEN OF THIS CHAPTER. 2 S 2. Paragraph (a) of subdivision 9 of section 208 of the tax law is 3 amended by adding a new subparagraph 18 to read as follows: 4 (18) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (R) OF THIS SUBDIVI- 5 SION. 6 S 3. Subdivision 9 of section 208 of the tax law is amended by adding 7 a new paragraph (r) to read as follows: 8 (R) (A) FOR THE PURPOSES OF THIS PARAGRAPH THE FOLLOWING TERMS SHALL 9 HAVE THE FOLLOWING DEFINITIONS: 10 (I) "BUSINESS" MEANS BOTH PRIVATE AND NOT-FOR-PROFIT BUSINESSES. 11 (II) "INFORMATION TECHNOLOGY SECURITY SOFTWARE OR HARDWARE" MEANS 12 COMPUTER SOFTWARE OR HARDWARE THAT IS USED TO PROTECT AGAINST COMPUTER 13 VIRUSES, WORMS OR DELETERIOUS INSTRUCTIONS AND SOFTWARE OR PRODUCTS THAT 14 PROTECT AGAINST COMPUTER HACKING OR COMPUTER WORMS OR VIRUSES. 15 (B) ANY BUSINESS THAT PURCHASES AND INSTALLS INFORMATION TECHNOLOGY 16 SOFTWARE OR HARDWARE MAY DEDUCT FIFTY PERCENT OF THE FULL AMOUNT OF THE 17 EXPENSES RELATED TO THE PURCHASE AND INSTALLATION OF SUCH SOFTWARE OR 18 HARDWARE WITHIN THE APPLICABLE TAXABLE YEAR. 19 (C) THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS DEEMED 20 NECESSARY TO CARRY OUT THE PROVISIONS OF THIS PARAGRAPH BY JANUARY 21 FIRST, TWO THOUSAND TEN. 22 (D) THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY TO TAXABLE YEARS 23 BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TEN. 24 S 4. Section 210 of the tax law is amended by adding a new subdivision 25 41 to read as follows: 26 41. INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (A) ALLOWANCE OF 27 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED 28 IN SECTION THIRTY OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS 29 ARTICLE. 30 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION 31 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS 32 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF 33 SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT 34 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO 35 SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE 36 YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR 37 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND 38 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF 39 SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER 40 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. 41 S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 42 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of 43 the laws of 2008, is amended to read as follows: 44 (B) shall be treated as the owner of a new business with respect to 45 such share if the corporation qualifies as a new business pursuant to 46 paragraph (j) of subdivision twelve of section two hundred ten of this 47 chapter. 48 The corporation's credit base under 49 section two hundred ten or section 50 With respect to the following fourteen hundred fifty-six of this 51 credit under this section: chapter is: 52 (I) Investment tax credit under Investment credit base or qualified 53 subsection (a) rehabilitation expenditures under 54 subdivision twelve of section two A. 5297 3 1 hundred ten 2 (II) Empire zone investment Cost or other basis under 3 tax credit under subsection (j) subdivision twelve-B of section 4 two hundred ten 5 (III) Empire zone wage tax credit Eligible wages under subdivision 6 under subsection (k) nineteen of section two hundred 7 ten or subsection (e) of section 8 fourteen hundred fifty-six 9 (IV) Empire zone capital tax Qualified investments and 10 credit under subsection (l) contributions under subdivision 11 twenty of section two hundred ten 12 or subsection (d) of section 13 fourteen hundred fifty-six 14 (V) Agricultural property tax Allowable school district property 15 credit under subsection (n) taxes under subdivision twenty-two 16 of section two hundred ten 17 (VI) Credit for employment of Qualified first-year wages or 18 persons with disabilities qualified second-year wages under 19 under subsection (o) subdivision twenty-three of 20 section two hundred ten or 21 subsection (f) of section 22 fourteen hundred fifty-six 23 (VII) Employment incentive credit Applicable investment credit base 24 under subsection (a-1) under subdivision twelve-D of 25 section two hundred ten 26 (VIII) Empire zone employment Applicable investment credit 27 incentive credit under subsection under subdivision twelve-C of 28 (j-1) section two hundred ten 29 (IX) Alternative fuels credit Cost under subdivision twenty-four 30 under subsection (p) of section two hundred ten 31 (X) Qualified emerging technology Applicable credit base under 32 company employment credit under subdivision twelve-E of section 33 subsection (q) two hundred ten 34 (XI) Qualified emerging technology Qualified investments under 35 company capital tax credit under subdivision twelve-F of section 36 subsection (r) two hundred ten 37 (XII) Credit for purchase of an Cost of an automated external 38 automated external defibrillator defibrillator under subdivision 39 under subsection (s) twenty-five of section two hundred 40 ten or subsection (j) of section 41 fourteen hundred fifty-six 42 (XIII) Low-income housing credit Credit amount under subdivision 43 under subsection (x) thirty of section two hundred ten 44 or subsection (l) of section A. 5297 4 1 fourteen hundred fifty-six 2 (XIV) Credit for transportation Amount of credit under subdivision 3 improvement contributions under thirty-two of section two hundred 4 subsection (z) ten or subsection (n) of section 5 fourteen hundred fifty-six 6 (XV) QEZE credit for real property Amount of credit under subdivision 7 taxes under subsection (bb) twenty-seven of section two hundred 8 ten or subsection (o) of section 9 fourteen hundred fifty-six 10 (XVI) QEZE tax reduction credit Amount of benefit period factor, 11 under subsection (cc) employment increase factor and zone 12 allocation factor (without regard 13 to pro ration) under subdivision 14 twenty-eight of section two hundred 15 ten or subsection (p) of section 16 fourteen hundred fifty-six and 17 amount of tax factor as determined 18 under subdivision (f) of section 19 sixteen 20 (XVII) Green building credit under Amount of green building credit 21 subsection (y) under subdivision thirty-one of 22 section two hundred ten or 23 subsection (m) of section fourteen 24 hundred fifty-six 25 (XVIII) Credit for long-term care Qualified costs under subdivision 26 insurance premiums under subsection twenty-five-a of section two 27 (aa) hundred ten or subsection (k) of 28 section fourteen hundred fifty-six 29 (XIX) Brownfield redevelopment Amount of credit under subdivision 30 credit under subsection (dd) thirty-three of section two hundred 31 ten or subsection (q) of section 32 fourteen hundred fifty-six 33 (XX) Remediated brownfield credit Amount of credit under subdivision 34 for real property taxes for thirty-four of section two hundred 35 qualified sites under subsection ten or subsection (r) of section 36 (ee) fourteen hundred fifty-six 37 (XXI) Environmental remediation Amount of credit under subdivision 38 insurance credit under subsection thirty-five of section two hundred 39 (ff) ten or subsection (s) of section 40 fourteen hundred fifty-six 41 (XXII) Empire state film production Amount of credit for qualified 42 credit under subsection (gg) production costs in production of a 43 qualified film under subdivision 44 thirty-six of section two hundred 45 ten A. 5297 5 1 (XXIII) Qualified emerging Qualifying expenditures and 2 technology company facilities, development activities under 3 operations and training credit subdivision twelve-G of section two 4 under subsection (nn) hundred ten 5 (XXIV) Security training tax credit Amount of credit under subdivision 6 under subsection (ii) thirty-seven of section two hundred 7 ten or under subsection (t) of 8 section fourteen hundred fifty-six 9 (XXV) Credit for qualified fuel Amount of credit under subdivision 10 cell electric generating equipment thirty-seven of section two hundred 11 expenditures under subsection (g-2) ten or subsection (t) of section 12 fourteen hundred fifty-six 13 (XXVI) Empire state commercial Amount of credit for qualified 14 production credit under subsection production costs in production of 15 (jj) a qualified commercial under 16 subdivision thirty-eight of 17 section two hundred ten 18 (XXVII) Biofuel production tax Amount of credit under subdivision 19 credit under subsection (jj) thirty-eight of section two hundred 20 ten 21 (XXVIII) Clean heating fuel credit Amount of credit under subdivision 22 under subsection (mm) thirty-nine of section two hundred 23 ten 24 (XXIX) Credit for rehabilitation Amount of credit under subdivision 25 of historic properties under forty of [subsection] SECTION 26 subsection (oo) two hundred ten 27 (XXX) Credit for companies who Amount of credit under subdivision 28 provide transportation to forty of section two hundred ten 29 individuals with disabilities under 30 subsection (oo) 31 (XXXI) INFORMATION AMOUNT OF CREDIT UNDER 32 TECHNOLOGY SECURITY SUBDIVISION FORTY-ONE OF 33 WAGE CREDIT UNDER SECTION TWO HUNDRED TEN OR 34 SUBSECTION (QQ) SUBSECTION (U) OF SECTION 35 FOURTEEN HUNDRED FIFTY-SIX 36 S 6. Section 606 of the tax law is amended by adding a new subsection 37 (qq) to read as follows: 38 (QQ) INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (1) ALLOWANCE OF 39 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED 40 IN SECTION THIRTY OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS 41 ARTICLE. 42 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER 43 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR 44 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE 45 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX 46 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST 47 SHALL BE PAID THEREON. A. 5297 6 1 S 7. Subsection (c) of section 612 of the tax law is amended by adding 2 a new paragraph 39 to read as follows: 3 (39) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (R) OF SUBDIVISION 4 NINE OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER. 5 S 8. Subsection (e) of section 1453 of the tax law is amended by 6 adding a new paragraph 19 to read as follows: 7 (19) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (R) OF SUBDIVISION 8 NINE OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER. 9 S 9. Section 1456 of the tax law is amended by adding a new subsection 10 (u) to read as follows: 11 (U) INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (1) ALLOWANCE OF 12 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED 13 IN SECTION THIRTY OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS 14 ARTICLE. 15 (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION 16 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS 17 THAN THE MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED 18 FIFTY-FIVE OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED 19 UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH 20 AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE 21 YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR 22 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND 23 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF 24 SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER 25 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. 26 S 10. Paragraph 3 of subdivision (b) of section 1503 of the tax law, 27 as amended by chapter 61 of the laws of 1989, is amended to read as 28 follows: 29 (3) In determining entire net income, there shall be subtracted, to 30 the extent not deductible in determining federal taxable income: 31 (A) interest on indebtedness incurred or continued to purchase or 32 carry obligations or securities the income from which is subject to tax 33 under this article but exempt from federal income tax; 34 (B) ordinary and necessary expenses paid or incurred during the taxa- 35 ble year attributable to income which is subject to tax under this arti- 36 cle but exempt from federal income tax; [and] 37 (C) the amortizable bond premium for the taxable year on any bond the 38 interest on which is subject to tax under this article but exempt from 39 federal income tax; AND 40 (D) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (R) OF SUBDIVISION 41 NINE OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER. 42 S 11. Section 1511 of the tax law is amended by adding a new subdivi- 43 sion (y) to read as follows: 44 (Y) INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (1) ALLOWANCE OF 45 CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED 46 IN SECTION THIRTY OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS 47 ARTICLE. 48 (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION 49 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS 50 THAN THE MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION 51 FIFTEEN HUNDRED TWO OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT 52 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO 53 SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXA- 54 BLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR 55 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND 56 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF A. 5297 7 1 SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER 2 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. 3 S 12. This act shall take effect immediately; provided, however that 4 the empire state film production credit under subsection (gg), the 5 empire state commercial production credit under subsection (jj) and the 6 credit for companies who provide transportation to individuals with 7 disabilities under subsection (oo) of section 606 of the tax law 8 contained in section five of this act shall expire on the same date as 9 provided in section 9 of part P of chapter 60 of the laws of 2004, as 10 amended, section 10 of part V of chapter 62 of the laws of 2006, as 11 amended and section 5 of chapter 522 of the laws of 2006, as amended, 12 respectively.