STATE OF NEW YORK
________________________________________________________________________
543--B
Cal. No. 904
2023-2024 Regular Sessions
IN SENATE
January 5, 2023
___________
Introduced by Sens. GIANARIS, HOYLMAN-SIGAL, KRUEGER, SALAZAR -- 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 -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee -- reported favorably from said committee and
committed to the Committee on Finance -- reported favorably from said
committee, ordered to first report, amended on first report, ordered
to a second report and ordered reprinted, retaining its place in the
order of second report
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:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01221-04-4
S. 543--B 2
1 (44) the amount of gain excluded from federal gross income for the
2 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of
3 section 1400Z-2 of the internal revenue code.
4 § 4. Section 612 of the tax law is amended by adding a new subsection
5 (y) to read as follows:
6 (y) Qualified opportunity zones. For tax years beginning on or after
7 January first, two thousand twenty-four, upon the sale or exchange of
8 property with respect to which the taxpayer has made the election under
9 subparagraph (C) of paragraph (1) of subsection (a) of section 1400Z-2
10 of the internal revenue code, the basis of such property under this
11 article shall be determined as if the taxpayer had not made such
12 election.
13 § 5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
14 amended by adding a new subparagraph (AA) to read as follows:
15 (AA) the amount of gain excluded from federal gross income for the
16 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of
17 section 1400Z-2 of the internal revenue code.
18 § 6. Section 1503 of the tax law is amended by adding a new subdivi-
19 sion (d) to read as follows:
20 (d) For tax years beginning on or after January first, two thousand
21 twenty-four, upon the sale or exchange of property with respect to which
22 the taxpayer has made the election under subparagraph (C) of paragraph
23 (1) of subsection (a) of section 1400Z-2 of the internal revenue code,
24 the basis of such property under this article shall be determined as if
25 the taxpayer had not made such election.
26 § 7. Paragraph (b) of subdivision 8 of section 11-602 of the adminis-
27 trative code of the city of New York is amended by adding a new subpara-
28 graph 23 to read as follows:
29 (23) the amount of gain excluded from federal gross income for the
30 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of
31 section 1400Z-2 of the internal revenue code.
32 § 8. Section 11-602 of the administrative code of the city of New York
33 is amended by adding a new subdivision 11 to read as follows:
34 11. For tax years beginning on or after January first, two thousand
35 twenty-four, upon the sale or exchange of property with respect to which
36 the taxpayer has made the election under subparagraph (C) of paragraph
37 (1) of subsection (a) of section 1400Z-2 of the internal revenue code,
38 the basis of such property under this article shall be determined as if
39 the taxpayer had not made such election.
40 § 9. Paragraph (b) of subdivision 8 of section 11-652 of the adminis-
41 trative code of the city of New York is amended by adding a new subpara-
42 graph 24 to read as follows:
43 (24) the amount of gain excluded from federal gross income for the
44 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of
45 section 1400Z-2 of the internal revenue code.
46 § 10. Subdivision 8 of section 11-652 of the administrative code of
47 the city of New York is amended by adding a new paragraph (u) to read as
48 follows:
49 (u) For tax years beginning on or after January first, two thousand
50 twenty-four, upon the sale or exchange of property with respect to which
51 the taxpayer has made the election under subparagraph (C) of paragraph
52 (1) of subsection (a) of section 1400Z-2 of the internal revenue code,
53 the basis of such property under this article shall be determined as if
54 the taxpayer had not made such election.
S. 543--B 3
1 § 11. Subdivision (b) of section 11-1712 of the administrative code of
2 the city of New York is amended by adding a new paragraph 40 to read as
3 follows:
4 (40) the amount of gain excluded from federal gross income for the
5 taxable year by subparagraph (C) of paragraph (1) of subsection (a) of
6 section 1400Z-2 of the internal revenue code.
7 § 12. Section 11-1712 of the administrative code of the city of New
8 York is amended by adding a new subdivision (w) to read as follows:
9 (w) For tax years beginning on or after January first, two thousand
10 twenty-four, upon the sale or exchange of property with respect to which
11 the taxpayer has made the election under subparagraph (C) of paragraph
12 (1) of subsection (a) of section 1400Z-2 of the internal revenue code,
13 the basis of such property under this article shall be determined as if
14 the taxpayer had not made such election.
15 § 13. This act shall take effect immediately and shall apply to taxa-
16 ble years beginning on or after January 1, 2024.