Bill Text: NY A10292 | 2019-2020 | General Assembly | 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-15sioner may prescribe as providing an apportionment which reasonably16reflects the portion of the taxpayer's tax attributable to the income of17the 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-26sioner may prescribe as providing an apportionment which reasonably27reflects the portion of the partner's tax attributable to the income ofEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14799-02-0A. 10292 2 1the 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 such27other methods as the commissioner may prescribe as providing an appor-28tionment which reasonably reflects the portion of the shareholder's tax29attributable 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.