Bill Text: NY A07551 | 2017-2018 | General Assembly | Introduced
Bill Title: Establishes the qualified solar manufacturer facilities and operations credit for businesses which manufacture solar energy equipment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - referred to ways and means [A07551 Detail]
Download: New_York-2017-A07551-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7551 2017-2018 Regular Sessions IN ASSEMBLY May 2, 2017 ___________ Introduced by M. of A. CAHILL -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to the qualified solar and energy storage manufacturer facilities and operations 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 53 to read as follows: 3 53. Qualified solar and energy storage manufacturer facilities and 4 operations credit. (a) A taxpayer that is whole or part of an entity 5 that serves as the principal operator of a facility primarily function- 6 ing to fabricate solar energy equipment or energy storage equipment and 7 that meets the eligibility requirements in paragraph (b) of this subdi- 8 vision, shall be allowed a credit against the tax imposed by this arti- 9 cle. The amount of credit shall be equal to the sum of the amounts spec- 10 ified in paragraphs (c) and (d) of this subdivision attributable to the 11 taxpayer subject to the limitations in paragraph (e) of this subdivi- 12 sion. For the purposes of this subdivision solar energy equipment shall 13 mean the manufacturing of material components in New York state designed 14 to produce electricity utilizing solar radiation as the energy source 15 for such electricity; and energy storage equipment shall mean materials 16 and devices intended to store some form of energy related to new energy 17 technologies as described in subdivision one of section eighteen hundred 18 fifty-four of the public authorities law. Such equipment may employ 19 electrical, electrochemical, supercapacitor, compressed gas, mechanical, 20 thermal or other demonstrable means singly or in combination. The 21 determination of whether solar energy equipment or energy storage equip- 22 ment qualifies for eligible costs under this subdivision shall be deter- 23 mined by the commissioner and, if requested by the commissioner, the 24 president of the New York state energy research and development authori- 25 ty. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01400-02-7A. 7551 2 1 (b) An eligible taxpayer shall (i) have more than one hundred full- 2 time employees employed in New York state, and (ii) have a ratio of 3 research and development funds to net sales, as referred to in section 4 thirty-one hundred two-e of the public authorities law, which equals or 5 exceeds three percent during its taxable year. 6 (c) An eligible taxpayer shall be allowed a credit for twenty per 7 centum of the attributable cost or similar basis for federal income tax 8 purposes of research and development and manufacturing property as 9 defined in clause (B) of subparagraph (ii) of paragraph (b) of subdivi- 10 sion 1 of this section that is acquired by the taxpayer by purchase as 11 defined in section 179(d) of the internal revenue code and placed in 12 service during the taxable year. Provided, however, for the purposes of 13 this paragraph only, an eligible taxpayer shall be allowed a credit for 14 such percentage of the (i) attributable cost or similar basis for feder- 15 al income tax purposes for property used in the testing or inspection of 16 materials and products, 17 (ii) the attributable costs or expenses associated with quality 18 control of the research and development or manufacturing operations, 19 (iii) attributable fees for use of sophisticated technology facilities 20 and processes, 21 (iv) attributable fees for the production or eventual commercial 22 distribution of materials and products resulting from the qualified 23 manufacturing activities of an eligible taxpayer. 24 (v) The costs, expenses and other amounts for which a credit is 25 allowed and claimed under this paragraph shall not be used in the calcu- 26 lation of any other credit allowed under this article. 27 (d) An eligible taxpayer shall be allowed a credit for ten per centum 28 of "qualified research and manufacturing expenses" paid or incurred by 29 the taxpayer in the taxable year. For the purposes of this section, the 30 term "qualified research and manufacturing expenses" shall mean attrib- 31 utable expenses associated with in-house research and manufacturing 32 processes, and attributable costs associated with the dissemination of 33 the results of the products that directly result from such research and 34 development and/or manufacturing activities; provided, however, that 35 such costs shall not include advertising or promotion through paid 36 media. In addition, costs associated with the preparation of patent 37 applications, patent application filing fees, patent research fees, 38 patent examinations fees, patent post allowance fees, patent maintenance 39 fees, and grant application expenses and fees shall be eligible for such 40 credit. In no case shall the credit allowed under this paragraph apply 41 to expenses for litigation or the challenge of another entity's intel- 42 lectual property rights, or for contract expenses involving outside paid 43 consultants. The costs, expenses and other amounts for which a credit 44 is allowed and claimed under this paragraph shall not be used in the 45 calculation of any other credit allowed under this article. 46 (e) An eligible taxpayer may claim credits under this subdivision for 47 four consecutive taxable years. In no case shall the credit allowed by 48 this subdivision to a taxpayer exceed twenty-five million dollars per 49 year. 50 (f) The credit allowed under this subdivision for any taxable year 51 shall not reduce the tax due for such year to less than the higher of 52 the amounts prescribed in paragraphs (c) and (d) of subdivision one of 53 section two hundred ten of this article. However, if the amount of 54 credit allowed under this subdivision for any taxable year reduces the 55 tax to such amount, any amount of credit not deductible in such taxable 56 year shall be treated as an overpayment of tax to be credited orA. 7551 3 1 refunded in accordance with the provisions of section one thousand 2 eighty-six of this chapter. Provided, however, the provisions of 3 subsection (c) of section one thousand eighty-eight of this chapter 4 notwithstanding, no interest shall be paid thereon. 5 § 2. Section 606 of the tax law is amended by adding a new subsection 6 (ccc) to read as follows: 7 (ccc) Qualified solar and energy storage manufacturer facilities and 8 operations credit. (1) A taxpayer who is a member of an entity consist- 9 ing of one or more taxpayers that serves as the principal operator of a 10 facility primarily functioning to fabricate solar energy equipment or 11 energy storage equipment and that meets the eligibility requirements in 12 paragraph two of this subsection, shall be allowed a credit against the 13 tax imposed by this article. The amount of credit shall be equal to the 14 sum (or pro rata share of the sum in the case of a partnership) of the 15 amounts specified in paragraphs three and four of this subsection 16 subject to the limitations in paragraph five of this subsection. For the 17 purposes of this subsection solar energy equipment shall mean the manu- 18 facturing of material components in New York state designed to produce 19 electricity utilizing solar radiation as the energy source for such 20 electricity; and energy storage equipment shall mean materials and 21 devices intended to store some form of energy related to new energy 22 technologies as described in subdivision one of section eighteen hundred 23 fifty-four of the public authorities law. Such equipment may employ 24 electrical, electrochemical, supercapacitor, compressed gas, mechanical, 25 thermal or other means singly or in combination. The determination of 26 whether solar energy equipment or energy storage equipment qualifies for 27 eligible costs under this subsection shall be determined by the commis- 28 sioner, and, if requested by the commissioner, the president of the New 29 York state energy research and development authority. 30 (2) An eligible entity shall (i) have more than one hundred full-time 31 employees employed in New York state, and (ii) have a ratio of research 32 and development funds to net sales, as referred to in section thirty-one 33 hundred two-e of the public authorities law, which equals or exceeds 34 three percent during its taxable year. 35 (3) An eligible taxpayer shall be allowed a credit for twenty per 36 centum of the cost or similar basis for federal income tax purposes 37 incurred by the entity for research and development and manufacturing 38 property as defined in clause (B) of subparagraph (ii) of paragraph (b) 39 of subdivision one of section two hundred ten-B of this chapter that is 40 acquired by purchase as defined in section 179(d) of the internal reven- 41 ue code and placed in service during the taxable year. Provided, howev- 42 er, for the purposes of this paragraph only, an eligible taxpayer shall 43 be allowed a credit for such percentage of the (i) cost or similar basis 44 for federal income tax purposes for property used in the testing or 45 inspection of materials and products, 46 (ii) the costs or expenses associated with quality control of the 47 research and development or manufacturing operations, 48 (iii) fees for use of sophisticated technology facilities and proc- 49 esses, 50 (iv) fees for the production or eventual commercial distribution of 51 materials and products resulting from the activities of an eligible 52 taxpayer as long as such activities fall under the activities listed in 53 paragraph (b) of subdivision one of section thirty-one hundred two-e of 54 the public authorities law.A. 7551 4 1 (v) The costs, expenses and other amounts for which a credit is 2 allowed and claimed under this paragraph shall not be used in the calcu- 3 lation of any other credit allowed under this article. 4 (4) An eligible taxpayer shall be allowed a credit for ten per centum 5 of "qualified research and manufacturing expenses" paid or incurred by 6 the entity in the taxable year. For the purposes of this section, the 7 term "qualified research and manufacturing expenses" shall mean expenses 8 associated with in-house research and manufacturing processes, and costs 9 associated with the dissemination of the results of the products that 10 directly result from such research and development and/or manufacturing 11 activities; provided, however, that such costs shall not include adver- 12 tising or promotion through paid media. In addition, costs associated 13 with the preparation of patent applications, patent application filing 14 fees, patent research fees, patent examinations fees, patent post allow- 15 ance fees, patent maintenance fees, and grant application expenses and 16 fees shall be eligible for such credit. In no case shall the credit 17 allowed under this paragraph apply to expenses for litigation or the 18 challenge of another entity's intellectual property rights, or for 19 contract expenses involving outside paid consultants. The costs, 20 expenses and other amounts for which a credit is allowed and claimed 21 under this paragraph shall not be used in the calculation of any other 22 credit allowed under this article. 23 (5) An eligible taxpayer may claim credits under this subsection for 24 four consecutive taxable years. In no case shall the credit allowed by 25 this subdivision to a taxpayer exceed twenty-five million dollars per 26 year. If the taxpayer is a partner in a partnership or shareholder of a 27 New York S corporation, then the cap imposed by this paragraph shall be 28 applied at the entity level, so that the aggregate credit allowed to all 29 the partners, shareholders, or other members of each such entity in the 30 taxable year does not exceed twenty-five million dollars per year for up 31 to four consecutive taxable years. 32 (6) If the amount of credit allowed under this subsection for any 33 taxable year shall exceed the taxpayer's tax for such year, the excess 34 shall be treated as an overpayment of tax to be credited or refunded in 35 accordance with the provisions of section six hundred eighty-six of this 36 article, provided, however, that no interest shall be paid thereon. 37 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 38 of the tax law is amended by adding a new clause (xliv) to read as 39 follows: 40 (xliv) Credit for Amount of credit under 41 qualified solar and energy storage subdivision fifty-three 42 manufacturer facilities of section two hundred 43 and operations credit ten-B 44 under subsection (ccc) 45 § 4. This act shall take effect immediately and shall apply to taxable 46 years commencing on or after January 1, 2018.
