Bill Text: NY A06102 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the tax law, in relation to pollution tax credits for the purchase of certain equipment made by dry cleaning businesses
Spectrum: Partisan Bill (Democrat 31-1)
Status: (Introduced - Dead) 2010-01-06 - referred to ways and means [A06102 Detail]
Download: New_York-2009-A06102-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 6102 2009-2010 Regular Sessions I N A S S E M B L Y February 25, 2009 ___________ Introduced by M. of A. ENGLEBRIGHT, KOON, COLTON, V. LOPEZ, CYMBROWITZ, MILLMAN, SCHIMMINGER, ORTIZ, SWEENEY, ESPAILLAT, SCHROEDER, HOYT, SCHIMEL -- Multi-Sponsored by -- M. of A. AUBRY, CANESTRARI, CHRIS- TENSEN, CLARK, COOK, DINOWITZ, GALEF, GREENE, HEASTIE, JACOBS, LENTOL, MAYERSOHN, McDONOUGH, McENENY, PERRY, PHEFFER, J. RIVERA, P. RIVERA, ROBINSON -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to pollution tax credits for the purchase of certain equipment made by dry cleaning businesses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Subdivision (a) of section 1115 of the tax law is amended 2 by adding a new paragraph 44 to read as follows: 3 (44) EQUIPMENT OR MACHINERY CERTIFIED BY THE DEPARTMENT OF ENVIRON- 4 MENTAL CONSERVATION, PURSUANT TO REGULATIONS PROMULGATED BY SUCH DEPART- 5 MENT, FOR POLLUTION PREVENTION OR CONTROL WHICH, FOR PURPOSES OF THIS 6 PARAGRAPH, SHALL MEAN ANY PROCESS, FACILITY, DEVICE, FIXTURE, EQUIPMENT 7 OR MACHINERY USED PRIMARILY FOR THE CONTROL, PREVENTION OR ABATEMENT OF 8 POLLUTION OR CONTAMINANTS FROM THE OPERATION OF A DRY CLEANING PLANT, 9 INCLUDING ANY STRUCTURE, MACHINERY OR EQUIPMENT INSTALLED IN THE RECON- 10 STRUCTION OR REPLACEMENT OF SUCH PROCESS, FACILITY, DEVICE, FIXTURE, 11 EQUIPMENT OR MACHINERY. 12 S 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 13 606 of the tax law, as amended by chapter 637 of the laws of 2008, is 14 amended to read as follows: 15 (A) A credit shall be allowed under this subsection with respect to 16 tangible personal property and other tangible property, including build- 17 ings and structural components of buildings, which are: depreciable 18 pursuant to section one hundred sixty-seven of the internal revenue 19 code, have a useful life of four years or more, are acquired by purchase 20 as defined in section one hundred seventy-nine (d) of the internal 21 revenue code, have a situs in this state and are (i) principally used by EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06208-01-9 A. 6102 2 1 the taxpayer in the production of goods by manufacturing, processing, 2 assembling, refining, mining, extracting, farming, agriculture, horti- 3 culture, floriculture, viticulture or commercial fishing, (ii) indus- 4 trial waste treatment facilities or air pollution control facilities, 5 used in the taxpayer's trade or business OR BUSINESS INVESTMENTS MADE BY 6 DRY CLEANING BUSINESSES TO ACHIEVE POLLUTION PREVENTION INCLUDING 7 INVESTMENTS INTO CHANGES IN FACILITY PROCESSES OR OPERATIONS METHODS, 8 (iii) research and development property, (iv) principally used in the 9 ordinary course of the taxpayer's trade or business as a broker or deal- 10 er in connection with the purchase or sale (which shall include but not 11 be limited to the issuance, entering into, assumption, offset, assign- 12 ment, termination, or transfer) of stocks, bonds or other securities as 13 defined in section four hundred seventy-five (c)(2) of the Internal 14 Revenue Code, or of commodities as defined in section 475(e) of the 15 Internal Revenue Code, (v) principally used in the ordinary course of 16 the taxpayer's trade or business of providing investment advisory 17 services for a regulated investment company as defined in section eight 18 hundred fifty-one of the Internal Revenue Code, or lending, loan 19 arrangement or loan origination services to customers in connection with 20 the purchase or sale (which shall include but not be limited to the 21 issuance, entering into, assumption, offset, assignment, termination, or 22 transfer) of securities as defined in section four hundred seventy-five 23 (c)(2) of the Internal Revenue Code, or (vi) principally used as a qual- 24 ified film production facility including qualified film production 25 facilities having a situs in an empire zone designated as such pursuant 26 to article eighteen-B of the general municipal law, where the taxpayer 27 is providing three or more services to any qualified film production 28 company using the facility, including such services as a studio lighting 29 grid, lighting and grip equipment, multi-line phone service, broadband 30 information technology access, industrial scale electrical capacity, 31 food services, security services, and heating, ventilation and air 32 conditioning. For purposes of clauses (iv) and (v) of this subparagraph, 33 property purchased by a taxpayer affiliated with a regulated broker, 34 dealer, or registered investment adviser is allowed a credit under this 35 subsection if the property is used by its affiliated regulated broker, 36 dealer or registered investment adviser in accordance with this 37 subsection. For purposes of determining if the property is principally 38 used in qualifying uses, the uses by the taxpayer described in clauses 39 (iv) and (v) of this subparagraph may be aggregated. In addition, the 40 uses by the taxpayer, its affiliated regulated broker, dealer and regis- 41 tered investment adviser under either or both of those clauses may be 42 aggregated. Provided, however, a taxpayer shall not be allowed the cred- 43 it provided by clauses (iv) and (v) of this subparagraph unless (I) 44 eighty percent or more of the employees performing the administrative 45 and support functions resulting from or related to the qualifying uses 46 of such equipment are located in this state, or (II) the average number 47 of employees that perform the administrative and support functions 48 resulting from or related to the qualifying uses of such equipment and 49 are located in this state during the taxable year for which the credit 50 is claimed is equal to or greater than ninety-five percent of the aver- 51 age number of employees that perform these functions and are located in 52 this state during the thirty-six months immediately preceding the year 53 for which the credit is claimed, or (III) the number of employees 54 located in this state during the taxable year for which the credit is 55 claimed is equal to or greater than ninety percent of the number of 56 employees located in this state on December thirty-first, nineteen A. 6102 3 1 hundred ninety-eight or, if the taxpayer was not a calendar year taxpay- 2 er in nineteen hundred ninety-eight, the last day of its first taxable 3 year ending after December thirty-first, nineteen hundred ninety-eight. 4 If the taxpayer becomes subject to tax in this state after the taxable 5 year beginning in nineteen hundred ninety-eight, then the taxpayer is 6 not required to satisfy the employment test provided in the preceding 7 sentence of this subparagraph for its first taxable year. For the 8 purposes of clause (III) of this subparagraph the employment test will 9 be based on the number of employees located in this state on the last 10 day of the first taxable year the taxpayer is subject to tax in this 11 state. If the uses of the property must be aggregated to determine 12 whether the property is principally used in qualifying uses, then either 13 each affiliate using the property must satisfy this employment test or 14 this employment test must be satisfied through the aggregation of the 15 employees of the taxpayer, its affiliated regulated broker, dealer, and 16 registered investment adviser using the property. For purposes of this 17 subsection, the term "goods" shall not include electricity. 18 S 3. Subparagraph (B) of paragraph 2 of subsection (a) of section 606 19 of the tax law is amended by adding three new clauses (vi), (vii) and 20 (viii) to read as follows: 21 (VI) POLLUTION PREVENTION SHALL MEAN CHANGES IN PRODUCTION METHODS OR 22 RAW MATERIALS THAT REDUCE, AVOID OR ELIMINATE THE USE OF TOXIC OR 23 HAZARDOUS SUBSTANCES OR THE GENERATION OF SUCH SUBSTANCES OR POLLUTANTS 24 PER UNIT OF PRODUCT, SO AS TO REDUCE RISKS TO THE HEALTH OF WORKERS, 25 CONSUMERS OR THE ENVIRONMENT, WITHOUT SHIFTING RISKS BETWEEN WORKERS, 26 CONSUMERS OR ENVIRONMENTAL MEDIA. POLLUTION PREVENTION INCLUDES THE 27 REDESIGN, MODIFICATION, UPGRADE OR REPLACEMENT OF PRODUCTION PROCESSES, 28 EQUIPMENT OR TECHNOLOGY; REFORMULATION OR REDESIGN OF PRODUCTS, SUBSTI- 29 TUTION OF INPUTS OR RAW MATERIALS; IMPROVEMENTS IN HOUSEKEEPING, MAINTE- 30 NANCE, TRAINING OR INVENTORY CONTROL; AND EXTENDED USE OR REUSE OF MATE- 31 RIALS THROUGH METHODS INTEGRAL TO THE PRODUCTION PROCESS, SUCH AS 32 IN-PROCESS, CLOSED-LOOP RECYCLING. SUCH TERM DOES NOT INCLUDE INCINERA- 33 TION, TRANSFER FROM ONE MEDIUM OF RELEASE OR DISCHARGE TO ANOTHER MEDIA, 34 OFF-SITE OR OUT-OF-PRODUCTION RECYCLING, END-OF-PIPE TREATMENT OR 35 POLLUTION CONTROL. 36 (VII) POLLUTANT SHALL MEAN ANY SUBSTANCE, CONTAMINANT, WASTE OR EMIS- 37 SION WHICH CONTRIBUTES TO POLLUTION AS DEFINED IN ARTICLE ONE OF THE 38 ENVIRONMENTAL CONSERVATION LAW. 39 (VIII) TOXIC OR HAZARDOUS SUBSTANCE SHALL MEAN ANY SUBSTANCE LISTED AS 40 A SUBSTANCE HAZARDOUS TO PUBLIC HEALTH, SAFETY OR THE ENVIRONMENT IN 41 REGULATIONS PROMULGATED PURSUANT TO ARTICLE THIRTY-SEVEN OF THE ENVIRON- 42 MENTAL CONSERVATION LAW. 43 S 4. Subparagraph (i) of paragraph (b) of subdivision 12 of section 44 210 of the tax law, as amended by chapter 637 of the laws of 2008, is 45 amended to read as follows: 46 (i) A credit shall be allowed under this subdivision with respect to 47 tangible personal property and other tangible property, including build- 48 ings and structural components of buildings, which are: depreciable 49 pursuant to section one hundred sixty-seven of the internal revenue 50 code, have a useful life of four years or more, are acquired by purchase 51 as defined in section one hundred seventy-nine (d) of the internal 52 revenue code, have a situs in this state and are (A) principally used by 53 the taxpayer in the production of goods by manufacturing, processing, 54 assembling, refining, mining, extracting, farming, agriculture, horti- 55 culture, floriculture, viticulture or commercial fishing, (B) industrial 56 waste treatment facilities or air pollution control facilities, used in A. 6102 4 1 the taxpayer's trade or business, (C) research and development property 2 OR BUSINESS INVESTMENTS MADE BY DRY CLEANING BUSINESSES TO ACHIEVE 3 POLLUTION PREVENTION INCLUDING INVESTMENTS INTO CHANGES IN FACILITY 4 PROCESSES OR OPERATIONS OR PRODUCTION METHODS, (D) principally used in 5 the ordinary course of the taxpayer's trade or business as a broker or 6 dealer in connection with the purchase or sale (which shall include but 7 not be limited to the issuance, entering into, assumption, offset, 8 assignment, termination, or transfer) of stocks, bonds or other securi- 9 ties as defined in section four hundred seventy-five (c)(2) of the 10 Internal Revenue Code, or of commodities as defined in section four 11 hundred seventy-five (e) of the Internal Revenue Code, (E) principally 12 used in the ordinary course of the taxpayer's trade or business of 13 providing investment advisory services for a regulated investment compa- 14 ny as defined in section eight hundred fifty-one of the Internal Revenue 15 Code, or lending, loan arrangement or loan origination services to 16 customers in connection with the purchase or sale (which shall include 17 but not be limited to the issuance, entering into, assumption, offset, 18 assignment, termination, or transfer) of securities as defined in 19 section four hundred seventy-five (c)(2) of the Internal Revenue Code, 20 (F) principally used in the ordinary course of the taxpayer's business 21 as an exchange registered as a national securities exchange within the 22 meaning of sections 3(a)(1) and 6(a) of the Securities Exchange Act of 23 1934 or a board of trade as defined in section 1410(a)(1) of the New 24 York Not-for-Profit Corporation Law or as an entity that is wholly owned 25 by one or more such national securities exchanges or boards of trade and 26 that provides automation or technical services thereto, or (G) princi- 27 pally used as a qualified film production facility including qualified 28 film production facilities having a situs in an empire zone designated 29 as such pursuant to article eighteen-B of the general municipal law, 30 where the taxpayer is providing three or more services to any qualified 31 film production company using the facility, including such services as a 32 studio lighting grid, lighting and grip equipment, multi-line phone 33 service, broadband information technology access, industrial scale elec- 34 trical capacity, food services, security services, and heating, venti- 35 lation and air conditioning. For purposes of clauses (D), (E) and (F) of 36 this subparagraph, property purchased by a taxpayer affiliated with a 37 regulated broker, dealer, registered investment adviser, national secu- 38 rities exchange or board of trade, is allowed a credit under this subdi- 39 vision if the property is used by its affiliated regulated broker, deal- 40 er, registered investment adviser, national securities exchange or board 41 of trade in accordance with this subdivision. For purposes of determin- 42 ing if the property is principally used in qualifying uses, the uses by 43 the taxpayer described in clauses (D) and (E) of this subparagraph may 44 be aggregated. In addition, the uses by the taxpayer, its affiliated 45 regulated broker, dealer, and registered investment adviser under either 46 or both of those clauses may be aggregated. Provided, however, a 47 taxpayer shall not be allowed the credit provided by clauses (D), (E) 48 and (F) of this subparagraph unless (I) eighty percent or more of the 49 employees performing the administrative and support functions resulting 50 from or related to the qualifying uses of such equipment are located in 51 this state or (II) the average number of employees that perform the 52 administrative and support functions resulting from or related to the 53 qualifying uses of such equipment and are located in this state during 54 the taxable year for which the credit is claimed is equal to or greater 55 than ninety-five percent of the average number of employees that perform 56 these functions and are located in this state during the thirty-six A. 6102 5 1 months immediately preceding the year for which the credit is claimed, 2 or (III) the number of employees located in this state during the taxa- 3 ble year for which the credit is claimed is equal to or greater than 4 ninety percent of the number of employees located in this state on 5 December thirty-first, nineteen hundred ninety-eight or, if the taxpayer 6 was not a calendar year taxpayer in nineteen hundred ninety-eight, the 7 last day of its first taxable year ending after December thirty-first, 8 nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in 9 this state after the taxable year beginning in nineteen hundred ninety- 10 eight, then the taxpayer is not required to satisfy the employment test 11 provided in the preceding sentence of this subparagraph for its first 12 taxable year. For purposes of clause (III) of this subparagraph the 13 employment test will be based on the number of employees located in this 14 state on the last day of the first taxable year the taxpayer is subject 15 to tax in this state. If the uses of the property must be aggregated to 16 determine whether the property is principally used in qualifying uses, 17 then either each affiliate using the property must satisfy this employ- 18 ment test or this employment test must be satisfied through the aggre- 19 gation of the employees of the taxpayer, its affiliated regulated 20 broker, dealer, and registered investment adviser using the property. 21 For purposes of this subdivision, the term "goods" shall not include 22 electricity. 23 S 5. Subparagraph (ii) of paragraph (b) of subdivision 12 of section 24 210 of the tax law is amended by adding three new clauses (F), (G) and 25 (H) to read as follows: 26 (F) POLLUTION PREVENTION SHALL MEAN CHANGES IN PRODUCTION METHODS OR 27 RAW MATERIALS THAT REDUCE, AVOID OR ELIMINATE THE USE OF TOXIC OR 28 HAZARDOUS SUBSTANCES OR THE GENERATION OF SUCH SUBSTANCES OR POLLUTANTS 29 PER UNIT OF PRODUCT, SO AS TO REDUCE RISKS TO THE HEALTH OF WORKERS, 30 CONSUMERS OR THE ENVIRONMENT, WITHOUT SHIFTING RISKS BETWEEN WORKERS, 31 CONSUMERS OR ENVIRONMENTAL MEDIA. POLLUTION PREVENTION INCLUDES THE 32 REDESIGN, MODIFICATION, UPGRADE OR REPLACEMENT OF PRODUCTION PROCESSES, 33 EQUIPMENT OR TECHNOLOGY; REFORMULATION OR REDESIGN OF PRODUCTS, SUBSTI- 34 TUTION OF INPUTS OR RAW MATERIALS; IMPROVEMENTS IN HOUSEKEEPING, MAINTE- 35 NANCE, TRAINING OR INVENTORY CONTROL; AND EXTENDED USE OR REUSE OF MATE- 36 RIALS THROUGH METHODS INTEGRAL TO THE PRODUCTION PROCESS, SUCH AS 37 IN-PROCESS, CLOSED-LOOP RECYCLING. SUCH TERM DOES NOT INCLUDE INCINERA- 38 TION, TRANSFER FROM ONE MEDIUM OF RELEASE OR DISCHARGE TO ANOTHER MEDIA, 39 OFF-SITE OR OUT-OF-PRODUCTION RECYCLING, END-OF-PIPE TREATMENT OR 40 POLLUTION CONTROL. 41 (G) POLLUTANT SHALL MEAN ANY SUBSTANCE, CONTAMINANT, WASTE OR EMISSION 42 WHICH CONTRIBUTES TO POLLUTION AS DEFINED IN ARTICLE ONE OF THE ENVIRON- 43 MENTAL CONSERVATION LAW. 44 (H) TOXIC OR HAZARDOUS SUBSTANCE SHALL MEAN ANY SUBSTANCE LISTED AS A 45 SUBSTANCE HAZARDOUS TO PUBLIC HEALTH, SAFETY OR THE ENVIRONMENT IN REGU- 46 LATIONS PROMULGATED PURSUANT TO ARTICLE THIRTY-SEVEN OF THE ENVIRON- 47 MENTAL CONSERVATION LAW. 48 S 6. This act shall take effect three years after it shall have become 49 a law and shall apply to taxable years ending on or after such effective 50 date, except that section one of this act shall take effect on the first 51 day of the sales tax quarterly period, as designated in subdivision (b) 52 of section 1136 of the tax law, next commencing on or after the effec- 53 tive date of this act and shall apply to sales made on or after the 54 effective date of section one of this act and shall apply to all equip- 55 ment or machinery purchased on or after such date although purchased 56 under a prior contract.