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
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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
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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
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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
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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.
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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.