Bill Text: NY A10292 | 2019-2020 | General Assembly | Introduced

New York Assembly Bill 10292 (Prior Session Legislation)

Introduced

Bill Title: Changes the allocation of the QEZE tax reduction credit to reflect business activity within the QEZE, rather than being based on an apportionment that does not reflect the economic activity taking place in New York.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-04-15 - referred to ways and means [A10292 Detail]

Download: New_York-2019-A10292-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                          10292

                   IN ASSEMBLY

                                     April 15, 2020
                                       ___________

        Introduced  by M. of A. STECK -- read once and referred to the Committee
          on Ways and Means

        AN ACT to amend the tax law, in relation to changing the  allocation  of
          the  QEZE tax reduction credit to reflect business activity within the
          QEZE

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph  2  of subdivision (f) of section 16 of the tax
     2  law, as amended by section 14 of part CC of chapter 85 of  the  laws  of
     3  2002,  and  clause  (ii) of subparagraph (B) as amended by section 34 of
     4  part A of chapter 59 of the laws of 2014, is amended to read as follows:
     5    (2) Sole proprietors, partners and  S  corporation  shareholders.  (A)
     6  Where  the  taxpayer  is  a  sole  proprietor of a qualified empire zone
     7  enterprise, the taxpayer's tax factor  shall  be  that  portion  of  the
     8  amount  determined in paragraph one of this subdivision which is attrib-
     9  utable to the income of  the  qualified  empire  zone  enterprise.  Such
    10  attribution shall be made in accordance with the ratio of the taxpayer's
    11  income  from  the  qualified empire zone enterprise allocated within the
    12  state, entering into New York adjusted gross income as reported  on  the
    13  taxpayer's  income  tax  return,  or to the taxpayer's New York adjusted
    14  gross income[, or in accordance with such other methods as  the  commis-
    15  sioner  may  prescribe  as  providing  an apportionment which reasonably
    16  reflects the portion of the taxpayer's tax attributable to the income of
    17  the qualified empire zone enterprise]  as  reported  on  the  taxpayer's
    18  income tax return. In no event may the ratio so determined exceed 1.0.
    19    (B)(i)  Where  the  taxpayer  is  a member of a partnership which is a
    20  qualified empire zone enterprise, the taxpayer's  tax  factor  shall  be
    21  that  portion of the amount determined in paragraph one of this subdivi-
    22  sion which is attributable to the income of the partnership. Such attri-
    23  bution shall be made in accordance  with  the  ratio  of  the  partner's
    24  income  from the partnership allocated within the state to the partner's
    25  entire income[, or in accordance with such other methods as the  commis-
    26  sioner  may  prescribe  as  providing  an apportionment which reasonably
    27  reflects the portion of the partner's tax attributable to the income  of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14799-02-0

        A. 10292                            2

     1  the partnership] as reported by the partner on such partner's income tax
     2  return. In no event may the ratio so determined exceed 1.0.
     3    (ii)  For  purposes of article nine-A of this chapter, the term "part-
     4  ner's income from the partnership" means partnership  items  of  income,
     5  gain,  loss  and deduction, and New York modifications thereto, entering
     6  into business income and the term "partner's entire income" means  busi-
     7  ness  income allocated within the state. For purposes of article thirty-
     8  three of this chapter, the term "partner's income from the  partnership"
     9  means  partnership  items  of  income, gain, loss and deduction, and New
    10  York modifications thereto, entering into entire net  income  or  entire
    11  net  income  plus  compensation  and  the term "partner's entire income"
    12  means entire net income, or entire net income plus  compensation,  allo-
    13  cated within the state. For purposes of article twenty-two of this chap-
    14  ter,  the term "partner's income from the partnership" means partnership
    15  items of income, gain, loss and deduction, and  New  York  modifications
    16  thereto,  entering  into  New  York  adjusted gross income, and the term
    17  "partner's entire income" means New York adjusted gross income.
    18    (C) Where the taxpayer is a shareholder of a New  York  S  corporation
    19  which  is  a  qualified  empire  zone  enterprise, the shareholder's tax
    20  factor shall be that portion of the amount determined in  paragraph  one
    21  of  this subdivision which is attributable to the income of the S corpo-
    22  ration. Such attribution shall be made in accordance with the  ratio  of
    23  the  shareholder's  income  from  the S corporation allocated within the
    24  state, entering into the shareholder's New York adjusted gross income as
    25  reported on the income tax return of the S corporation,  to  the  share-
    26  holder's  New  York  adjusted  gross income[, or in accordance with such
    27  other methods as the commissioner may prescribe as providing  an  appor-
    28  tionment  which reasonably reflects the portion of the shareholder's tax
    29  attributable to the income of the qualified empire zone  enterprise]  as
    30  reported  on  the  shareholder's  income tax return. In no event may the
    31  ratio so determined exceed 1.0.
    32    (D) For the purposes of calculating the amount determined in paragraph
    33  one of this subdivision which is attributable to the income of the qual-
    34  ified empire zone enterprise, to the extent that the  applicable  income
    35  tax return for the qualified empire zone enterprise does not provide for
    36  an  allocation  of income within and without New York state, the taxpay-
    37  er's income from the qualified empire zone enterprise  allocated  within
    38  the state shall be: (i) the federal adjusted gross income of the taxpay-
    39  er,  (ii)  adjusted for the New York modifications, (iii) less income of
    40  the qualified empire zone enterprise  actually  taxed  in  jurisdictions
    41  outside  New  York.  For purposes of this subparagraph, a calculation of
    42  the business apportionment factor under section  two  hundred  ten-A  of
    43  this  chapter  does  not  provide for an allocation of income within and
    44  without New York state.
    45    § 2. This act shall take effect immediately and  shall  be  deemed  to
    46  have  been  in  full  force  and effect on the same date and in the same
    47  manner as section 2 of part GG of chapter 63 of the laws of  2000,  took
    48  effect, and shall apply only to any matters not precluded by the statute
    49  of limitations as of the date this act shall have become a law.