S T A T E O F N E W Y O R K ________________________________________________________________________ 6522 2009-2010 Regular Sessions I N A S S E M B L Y March 6, 2009 ___________ Introduced by M. of A. GIGLIO, RAIA, QUINN, BURLING, HAWLEY, SAYWARD, WALKER, BARRA, KOLB -- Multi-Sponsored by -- M. of A. BACALLES, BALL, BARCLAY, CROUCH, HAYES, McDONOUGH, McKEVITT, O'MARA, REILICH, TOWNSEND -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing business fran- chise and personal income tax credits for certain small businesses in a village or small city THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 210 of the tax law is amended by adding a new 2 subdivision 29 to read as follows: 3 29. SMALL BUSINESS CAPITAL TAX CREDIT. (A) A TAXPAYER SHALL BE ALLOWED 4 A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE 5 TAX IMPOSED BY THIS ARTICLE. SUCH CREDIT SHALL BE GRANTED TO ANY TAXPAY- 6 ER WHICH IS A SMALL BUSINESS WHEN THE SMALL BUSINESS IS LOCATED IN A 7 VILLAGE OR IN A CITY WITH A POPULATION OF LESS THAN THIRTY-FIVE THOUSAND 8 AS DETERMINED BY THE MOST RECENT FEDERAL DECENNIAL CENSUS. THE AMOUNT OF 9 THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE SUM OF QUALIFIED 10 INVESTMENTS IN SUCH SMALL BUSINESS, AS DETERMINED BY THE COMMISSIONER. 11 (B) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "SMALL BUSINESS" 12 MEANS A BUSINESS WHICH EMPLOYS LESS THAN FIFTEEN EMPLOYEES. 13 (C) THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS SUBDI- 14 VISION FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE TAX 15 DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN 16 PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF 17 THE AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWED 18 UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH 19 AMOUNT, ANY AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT THUS NOT 20 DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING 21 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAX FOR SUCH YEAR OR YEARS. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05167-01-9 A. 6522 2 1 S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 2 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of 3 the laws of 2008, is amended to read as follows: 4 (B) shall be treated as the owner of a new business with respect to 5 such share if the corporation qualifies as a new business pursuant to 6 paragraph (j) of subdivision twelve of section two hundred ten of this 7 chapter. 8 The corporation's credit base under 9 section two hundred ten or section 10 With respect to the following fourteen hundred fifty-six of this 11 credit under this section: chapter is: 12 Investment tax credit Investment credit base 13 under subsection (a) or qualified 14 rehabilitation 15 expenditures under 16 subdivision twelve of 17 section two hundred ten 18 Empire zone Cost or other basis 19 investment tax credit under subdivision 20 under subsection (j) twelve-B 21 of section two hundred 22 ten 23 Empire zone Eligible wages under 24 wage tax credit subdivision nineteen of 25 under subsection (k) section two hundred ten 26 or subsection (e) of 27 section fourteen hundred 28 fifty-six 29 Empire zone Qualified investments 30 capital tax credit and contributions under 31 under subsection (l) subdivision twenty of 32 section two hundred ten 33 or subsection (d) of 34 section fourteen hundred 35 fifty-six 36 Agricultural property tax Allowable school 37 credit under subsection (n) district property taxes under 38 subdivision twenty-two of 39 section two hundred ten 40 Credit for employment Qualified first-year wages or 41 of persons with dis- qualified second-year wages 42 abilities under under subdivision 43 subsection (o) twenty-three of section 44 two hundred ten 45 or subsection (f) 46 of section fourteen 47 hundred fifty-six A. 6522 3 1 Employment incentive Applicable investment credit 2 credit under subsec- base under subdivision 3 tion (a-1) twelve-D of section two 4 hundred ten 5 Empire zone Applicable investment 6 employment credit under sub- 7 incentive credit under division twelve-C 8 subsection (j-1) of section two hundred ten 9 Alternative fuels credit Cost under subdivision 10 under subsection (p) twenty-four of section two 11 hundred ten 12 Qualified emerging Applicable credit base 13 technology company under subdivision twelve-E 14 employment credit of section two hundred ten 15 under subsection (q) 16 Qualified emerging Qualified investments under 17 technology company subdivision twelve-F of 18 capital tax credit section two hundred ten 19 under subsection (r) 20 Credit for purchase of an Cost of an automated 21 automated external defibrillator external defibrillator under 22 under subsection (s) subdivision twenty-five of 23 section two hundred ten 24 or subsection (j) of section 25 fourteen hundred fifty-six 26 Low-income housing Credit amount under 27 credit under subsection (x) subdivision thirty 28 of section two hundred ten or 29 subsection (l) of section 30 fourteen hundred fifty-six 31 Credit for transportation Amount of credit under sub- 32 improvement contributions division thirty-two of section 33 under subsection (z) two hundred ten or subsection 34 (n) of section fourteen 35 hundred fifty-six 36 QEZE credit for real property Amount of credit under 37 taxes under subsection (bb) subdivision twenty-seven of 38 section two hundred ten or 39 subsection (o) of section 40 fourteen hundred fifty-six 41 QEZE tax reduction credit Amount of benefit period 42 under subsection (cc) factor, employment increase factor 43 and zone allocation 44 factor (without regard 45 to pro ration) under 46 subdivision twenty-eight of 47 section two hundred ten or A. 6522 4 1 subsection (p) of section 2 fourteen hundred fifty-six 3 and amount of tax factor 4 as determined under 5 subdivision (f) of section sixteen 6 Green building credit Amount of green building credit 7 under subsection (y) under subdivision thirty-one 8 of section two hundred ten 9 or subsection (m) of section 10 fourteen hundred fifty-six 11 Credit for long-term Qualified costs under 12 care insurance premiums subdivision twenty-five-a of 13 under subsection (aa) section two hundred ten 14 or subsection (k) of section 15 fourteen hundred fifty-six 16 Brownfield redevelopment Amount of credit 17 credit under subsection under subdivision 18 (dd) thirty-three of section 19 two hundred ten 20 or subsection (q) of 21 section fourteen hundred 22 fifty-six 23 Remediated brownfield Amount of credit under 24 credit for real property subdivision thirty-four 25 taxes for qualified of section two hundred 26 sites under subsection ten or subsection (r) of 27 (ee) section fourteen hundred 28 fifty-six 29 Environmental Amount of credit under 30 remediation subdivision thirty-five of 31 insurance credit under section two hundred 32 subsection (ff) ten or subsection 33 (s) of section 34 fourteen hundred 35 fifty-six 36 Empire state film production Amount of credit for qualified 37 credit under subsection (gg) production costs in production 38 of a qualified film under 39 subdivision thirty-six of 40 section two hundred ten 41 Qualified emerging Qualifying expenditures and 42 technology company facilities, development activities under 43 operations and training credit subdivision twelve-G of section 44 under subsection (nn) two hundred ten 45 Security training tax Amount of credit 46 credit under under subdivision thirty-seven 47 subsection (ii) of section two hundred ten or 48 under subsection (t) of A. 6522 5 1 section fourteen hundred fifty-six 2 Credit for qualified fuel Amount of credit under 3 cell electric generating equipment subdivision thirty-seven 4 expenditures under subsection (g-2) of section two hundred ten 5 or subsection (t) of 6 section fourteen hundred 7 fifty-six 8 Empire state commercial production Amount of credit for qualified 9 credit under subsection (jj) production costs in production 10 of a qualified commercial under 11 subdivision thirty-eight of sec- 12 tion two hundred ten 13 Biofuel production Amount of credit 14 tax credit under under subdivision 15 subsection (jj) thirty-eight of 16 section two hundred ten 17 Clean heating fuel credit Amount of credit under 18 under subsection (mm) subdivision thirty-nine of 19 section two hundred ten 20 Credit for rehabilitation Amount of credit under 21 of historic properties subdivision forty of 22 under subsection (oo) [subsection] SECTION 23 two hundred ten 24 Credit for companies who Amount of credit under 25 provide transportation subdivision forty of 26 to individuals section two hundred ten 27 with disabilities 28 under subsection (oo) 29 SMALL BUSINESS CAPITAL AMOUNT OF CREDIT UNDER 30 TAX CREDIT UNDER SUBDIVISION TWENTY-NINE OF 31 SUBSECTION (QQ) SECTION TWO HUNDRED TEN 32 S 3. Section 606 of the tax law is amended by adding a new subsection 33 (qq) to read as follows: 34 (QQ) SMALL BUSINESS CAPITAL TAX CREDIT. (1) A TAXPAYER SHALL BE 35 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST 36 THE TAX IMPOSED BY THIS ARTICLE. SUCH CREDIT SHALL BE GRANTED TO ANY 37 TAXPAYER WHICH IS A SMALL BUSINESS WHEN THE SMALL BUSINESS IS LOCATED IN 38 A VILLAGE OR IN A CITY WITH A POPULATION OF LESS THAN THIRTY-FIVE THOU- 39 SAND AS DETERMINED BY THE MOST RECENT FEDERAL DECENNIAL CENSUS. THE 40 AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE SUM OF 41 QUALIFIED INVESTMENTS IN SUCH SMALL BUSINESS, AS DETERMINED BY THE 42 COMMISSIONER. 43 (2) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "SMALL BUSINESS" 44 MEANS A BUSINESS WHICH EMPLOYS LESS THAN FIFTEEN EMPLOYEES. 45 (3) THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS 46 SUBSECTION FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE 47 TAX DUE FOR SUCH YEAR TO BE LESS THAN THE HIGHER OF THE AMOUNTS 48 PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF SECTION TWO 49 HUNDRED TEN OF THIS CHAPTER. HOWEVER, IF THE AMOUNT OF CREDIT OR CARRY- A. 6522 6 1 OVERS OF SUCH CREDIT, OR BOTH, ALLOWED UNDER THIS SUBSECTION FOR ANY 2 TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT OR 3 CARRYOVERS OF SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY 4 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM 5 THE TAX FOR SUCH YEAR OR YEARS. 6 S 4. This act shall take effect on the first of January next succeed- 7 ing the date on which it shall have become a law and shall apply to 8 taxable years commencing on or after such date; provided, however, that 9 the empire state film production credit under subsection (gg), the 10 empire state commercial production credit under subsection (jj) and the 11 credit for companies who provide transportation to individuals with 12 disabilities under subsection (oo) of section 606 of the tax law 13 contained in section two of this act shall expire on the same date as 14 provided in section 9 of part P of chapter 60 of the laws of 2004, as 15 amended, section 10 of part V of chapter 62 of the laws of 2006, as 16 amended and section 5 of chapter 522 of the laws of 2006, as amended, 17 respectively.