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

New York Senate Bill 543

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

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-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                         543--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 5, 2023
                                       ___________

        Introduced  by  Sens. GIANARIS, HOYLMAN-SIGAL, KRUEGER -- read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Budget  and  Revenue  --  recommitted  to  the Committee on Budget and
          Revenue in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        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-four, upon the sale or exchange of property with respect to which
    10  the taxpayer has made the election under subparagraph (c)  of  paragraph
    11  (1)  of  subsection (a) of section 1400Z-2 of the internal revenue code,
    12  the basis of such property under this article shall be determined as  if
    13  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:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01221-02-3

        S. 543--A                           2

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

        S. 543--A                           3

     1    §  12.  Section  11-1712 of the administrative code of the city of New
     2  York is amended by adding a new subdivision (w) to read as follows:
     3    (w)  For  tax  years beginning on or after January first, two thousand
     4  twenty-four, upon the sale or exchange of property with respect to which
     5  the taxpayer has made the election under subparagraph (c)  of  paragraph
     6  (1)  of  subsection (a) of section 1400Z-2 of the internal revenue code,
     7  the basis of such property under this article shall be determined as  if
     8  the taxpayer had not made such election.
     9    §  13. This act shall take effect immediately and shall apply to taxa-
    10  ble years beginning on or after January 1, 2024.