Bill Text: NY A09262 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Establishes a tax credit for contractors who award a subcontract to MWBE or SDVOBE subcontractors in furtherance of a state contract.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-04-16 - print number 9262a [A09262 Detail]

Download: New_York-2023-A09262-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9262

                   IN ASSEMBLY

                                    February 22, 2024
                                       ___________

        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Ways and Means

        AN ACT to amend the tax law, in relation to establishing a MWBE  subcon-
          tractor tax 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 60 to read as follows:
     3    60.  MWBE subcontractor tax credit. (a) Allowance of credit. For taxa-
     4  ble years beginning on or after January first, two thousand twenty-five,
     5  an eligible taxpayer shall be  allowed  a  credit,  to  be  computed  as
     6  provided  in  this subdivision, against the tax imposed by this article,
     7  for awarding a professional services, trades, or supplier subcontract to
     8  a qualified subcontractor  in  furtherance  of  a  state  contract.  The
     9  taxpayer  may  claim  the credit in the year in which payment is made by
    10  the eligible taxpayer to the qualified subcontractor for the performance
    11  of such subcontract. If the taxpayer claims  the  credit  allowed  under
    12  this  section, the taxpayer may not use the awarding of a subcontract to
    13  a qualified subcontractor that is the basis for this credit in the basis
    14  of any other credit allowed under this article.
    15    (b) Definitions. (i) The term "qualified subcontractor" shall  mean  a
    16  minority  or woman-owned business enterprise certified pursuant to arti-
    17  cle fifteen-A of the executive law.
    18    (ii) The term "eligible taxpayer" shall mean a contractor that  awards
    19  a  subcontract  to  a qualifying subcontractor in furtherance of a state
    20  contract.
    21    (iii) The term "state contract" shall mean a contract for the purchase
    22  by the state of goods, property, or services or for the construction  of
    23  any  building  or structure for the state, which contract is executed by
    24  any department, board, bureau, commission, or agency of the state, or by
    25  any officer, official, employee, or agent thereof.
    26    (c)  Contractor  prohibition.  A  contractor  shall  not  discharge  a
    27  contract with a subcontractor and hire a qualifying subcontractor solely
    28  for the purpose of qualifying for this credit.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14557-01-4
        A. 9262                             2

     1    (d)  Amount  of  credit.  The  amount  of  credit shall be thirty-five
     2  percent of the total amount of payments made by the eligible taxpayer to
     3  a qualifying subcontractor in the taxable year in which such  credit  is
     4  claimed.
     5    (e)  Carryovers.  The  credit  allowed  under this subdivision for any
     6  taxable year shall not reduce the tax due for such year to less than the
     7  amount prescribed in paragraph (d) of subdivision  one  of  section  two
     8  hundred  ten of this article. However, if the amount of credit allowable
     9  under this subdivision for any taxable year  reduces  the  tax  to  such
    10  amount  or  if the taxpayer otherwise pays tax based on the fixed dollar
    11  minimum amount, any amount of credit not deductible in such taxable year
    12  may be carried over to the following three years  and  may  be  deducted
    13  from the taxpayer's tax for such year or years.
    14    §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    15  of the tax law is amended by  adding  a  new  clause  (li)  to  read  as
    16  follows:
    17  (li) MWBE subcontractor tax             Amount of credit under subdivision
    18  credit under subsection (ppp)           sixty of section two hundred ten-B
    19    §  3. Section 606 of the tax law is amended by adding a new subsection
    20  (ppp) to read as follows:
    21    (ppp) MWBE subcontractor tax credit.  (1)  Allowance  of  credit.  For
    22  taxable  years beginning on or after January first, two thousand twenty-
    23  five, an eligible taxpayer shall be allowed a credit, to be computed  as
    24  provided  in  this section, against the tax imposed by this article, for
    25  awarding a professional services, trades, or supplier subcontract  to  a
    26  qualified subcontractor in furtherance of a state contract. The taxpayer
    27  may  claim the credit in the year in which payment is made by the eligi-
    28  ble taxpayer to the qualified subcontractor for the performance of  such
    29  subcontract.  If  the  taxpayer  claims  the  credit  allowed under this
    30  subsection, the taxpayer may not use the awarding of a subcontract to  a
    31  qualified  subcontractor  that is the basis for this credit in the basis
    32  of any other credit allowed under this article.
    33    (2) Definitions. (A) The term "qualified subcontractor" shall  mean  a
    34  minority  or woman-owned business enterprise certified pursuant to arti-
    35  cle fifteen-A of the executive law.
    36    (B) The term "eligible taxpayer" shall mean a contractor that awards a
    37  subcontract to a qualifying subcontractor  in  furtherance  of  a  state
    38  contract.
    39    (C)  The  term "state contract" shall mean a contract for the purchase
    40  by the state of goods, property, or services or for the construction  of
    41  any  building  or structure for the state, which contract is executed by
    42  any department, board, bureau, commission, or agency of the state, or by
    43  any officer, official, employee, or agent thereof.
    44    (3)  Contractor  prohibition.  A  contractor  shall  not  discharge  a
    45  contract with a subcontractor and hire a qualifying subcontractor solely
    46  for the purpose of qualifying for this credit.
    47    (4)  Amount  of  credit.  The  amount  of  credit shall be thirty-five
    48  percent of the total amount of payments made by the eligible taxpayer to
    49  a qualifying subcontractor in the taxable year in which such  credit  is
    50  claimed.
    51    (5) Application of credit. If the amount of the credit allowable under
    52  this subsection for any taxable year exceeds the taxpayer's tax for such
    53  year, the excess shall be treated as an overpayment of tax to be credit-
    54  ed  or  refunded  as  provided in section six hundred eighty-six of this
    55  article, provided, however, that no interest shall be paid thereon.
    56    § 4. This act shall take effect immediately.