Bill Text: NY S00543 | 2023-2024 | General Assembly | Introduced

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

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Bill Title: Relates to treatment of gains from qualified opportunity zones in calculating taxable income; removes exclusion of gains on property in qualified opportunity zones in calculation of income.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed) 2024-05-13 - referred to ways and means [S00543 Detail]

Download: New_York-2023-S00543-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           543

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 5, 2023
                                       ___________

        Introduced by Sens. GIANARIS, KRUEGER -- read twice and ordered printed,
          and when printed to be committed to the Committee on Budget and Reven-
          ue

        AN  ACT  to amend the tax law and the administrative code of the city of
          New York, in relation to treatment of gains from qualified opportunity
          zones in calculating taxable income

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

     1    Section  1.   Paragraph (b) of subdivision 9 of section 208 of the tax
     2  law is amended by adding a new subparagraph 28 to read as follows:
     3    (28) the amount of gain excluded from federal  gross  income  for  the
     4  taxable  year  by subparagraph (c) of paragraph (1) of subsection (a) of
     5  section 1400Z-2 of the internal revenue code.
     6    § 2. Subdivision 9 of section 208 of the tax law is amended by  adding
     7  a new paragraph (u) to read as follows:
     8    (u)  For  tax  years beginning on or after January first, two thousand
     9  twenty-three, upon the sale or exchange  of  property  with  respect  to
    10  which the taxpayer has made the election under subparagraph (c) of para-
    11  graph  (1)  of subsection (a) of section 1400Z-2 of the internal revenue
    12  code, the basis of such property under this article shall be  determined
    13  as if the taxpayer had not made such election.
    14    § 3. Subsection (b) of section 612 of the tax law is amended by adding
    15  a new paragraph 44 to read as follows:
    16    (44)  the  amount  of  gain excluded from federal gross income for the
    17  taxable year by subparagraph (c) of paragraph (1) of subsection  (a)  of
    18  section 1400Z-2 of the internal revenue code.
    19    §  4. Section 612 of the tax law is amended by adding a new subsection
    20  (y) to read as follows:
    21    (y) Qualified opportunity zones.  For tax years beginning on or  after
    22  January  first,  two thousand twenty-three, upon the sale or exchange of
    23  property with respect to which the taxpayer has made the election  under

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01221-01-3
        S. 543                              2

     1  subparagraph  (c)  of paragraph (1) of subsection (a) of section 1400Z-2
     2  of the internal revenue code, the basis  of  such  property  under  this
     3  article  shall  be  determined  as  if  the  taxpayer  had not made such
     4  election.
     5    §  5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
     6  amended by adding a new subparagraph (AA) to read as follows:
     7    (AA)  the amount of gain excluded from federal gross  income  for  the
     8  taxable  year  by subparagraph (c) of paragraph (1) of subsection (a) of
     9  section 1400Z-2 of the internal revenue code.
    10    § 6. Section 1503 of the tax law is amended by adding a  new  subdivi-
    11  sion (d) to read as follows:
    12    (d)  For  tax  years beginning on or after January first, two thousand
    13  twenty-three, upon the sale or exchange  of  property  with  respect  to
    14  which the taxpayer has made the election under subparagraph (c) of para-
    15  graph  (1)  of subsection (a) of section 1400Z-2 of the internal revenue
    16  code, the basis of such property under this article shall be  determined
    17  as if the taxpayer had not made such election.
    18    §  7. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
    19  trative code of the city of New York is amended by adding a new subpara-
    20  graph 17 to read as follows:
    21    (17) the amount of gain excluded from federal  gross  income  for  the
    22  taxable  year  by subparagraph (c) of paragraph (1) of subsection (a) of
    23  section 1400Z-2 of the internal revenue code.
    24    § 8. Section 11-602 of the administrative code of the city of New York
    25  is amended by adding a new subdivision 11 to read as follows:
    26    11. For tax years beginning on or after January  first,  two  thousand
    27  twenty-three,  upon  the  sale  or  exchange of property with respect to
    28  which the taxpayer has made the election under subparagraph (c) of para-
    29  graph (1) of subsection (a) of section 1400Z-2 of the  internal  revenue
    30  code,  the basis of such property under this article shall be determined
    31  as if the taxpayer had not made such election.
    32    § 9. Paragraph (a) of subdivision 8 of section 11-652 of the  adminis-
    33  trative code of the city of New York is amended by adding a new subpara-
    34  graph 18 to read as follows:
    35    (18)  the  amount  of  gain excluded from federal gross income for the
    36  taxable year by subparagraph (c) of paragraph (1) of subsection  (a)  of
    37  section 1400Z-2 of the internal revenue code.
    38    §  10.  Subdivision  8 of section 11-652 of the administrative code of
    39  the city of New York is amended by adding a new paragraph (u) to read as
    40  follows:
    41    (u) For tax years beginning on or after January  first,  two  thousand
    42  twenty-three,  upon  the  sale  or  exchange of property with respect to
    43  which the taxpayer has made the election under subparagraph (c) of para-
    44  graph (1) of subsection (a) of section 1400Z-2 of the  internal  revenue
    45  code,  the basis of such property under this article shall be determined
    46  as if the taxpayer had not made such election.
    47    § 11. Subdivision (b) of section 11-1712 of the administrative code of
    48  the city of New York is amended by adding a new paragraph 40 to read  as
    49  follows:
    50    (40)  the  amount  of  gain excluded from federal gross income for the
    51  taxable year by subparagraph (c) of paragraph (1) of subsection  (a)  of
    52  section 1400Z-2 of the internal revenue code.
    53    §  12.  Section  11-1712 of the administrative code of the city of New
    54  York is amended by adding a new subdivision (w) to read as follows:
    55    (w) For tax years beginning on or after January  first,  two  thousand
    56  twenty-three,  upon  the  sale  or  exchange of property with respect to
        S. 543                              3

     1  which the taxpayer has made the election under subparagraph (c) of para-
     2  graph (1) of subsection (a) of section 1400Z-2 of the  internal  revenue
     3  code,  the basis of such property under this article shall be determined
     4  as if the taxpayer had not made such election.
     5    §  13. This act shall take effect immediately and shall apply to taxa-
     6  ble years beginning on or after January 1, 2023.