Bill Text: NY S01906 | 2013-2014 | General Assembly | Amended
Bill Title: Establishes a small business tax credit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-04-07 - PRINT NUMBER 1906A [S01906 Detail]
Download: New_York-2013-S01906-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
1906--A
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sen. SKELOS -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations -- recommitted to the Committee on Investigations and
Government Operations 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, in relation to establishing a small busi-
ness tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (u) to read as follows:
3 (U) SMALL BUSINESS TAX CREDIT. (1) GENERAL. A QUALIFIED TAXPAYER SHALL
4 BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO SIX
5 AND SIXTY-FIVE HUNDREDTHS PERCENT OF QUALIFIED BUSINESS INCOME.
6 (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM:
7 (A) "QUALIFIED TAXPAYER" SHALL MEAN A SOLE PROPRIETOR WHO EMPLOYS ONE
8 OR MORE PERSONS AND WHO HAS NET BUSINESS INCOME OF LESS THAN TWO HUNDRED
9 FIFTY THOUSAND DOLLARS.
10 (B) "QUALIFIED BUSINESS INCOME" SHALL MEAN TEN PERCENT OF THE BUSINESS
11 INCOME OF THE TAXPAYER AS DEFINED IN THE LAWS OF THE UNITED STATES.
12 (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
13 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
14 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
15 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
16 ARTICLE, PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON.
17 S 2. Subparagraph (iv) of paragraph (a) of subdivision 1 of section
18 210 of the tax law, as amended by section 2 of part N of chapter 60 of
19 the laws of 2007, is amended to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05836-02-4
S. 1906--A 2
1 (iv) for taxable years beginning on or after January first, two thou-
2 sand seven AND ENDING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, if the
3 entire net income base is not more than two hundred ninety thousand
4 dollars the amount shall be six and one-half percent of the entire net
5 income base; if the entire net income base is more than two hundred
6 ninety thousand dollars but not over three hundred ninety thousand
7 dollars the amount shall be the sum of (1) eighteen thousand eight
8 hundred fifty dollars, (2) seven and one-tenth percent of the excess of
9 the entire net income base over two hundred ninety thousand dollars but
10 not over three hundred ninety thousand dollars and (3) four and thirty-
11 five hundredths percent of the excess of the entire net income base over
12 three hundred fifty thousand dollars but not over three hundred ninety
13 thousand dollars;
14 S 3. Paragraph (a) of subdivision 1 of section 210 of the tax law is
15 amended by adding a new subparagraph (viii) to read as follows:
16 (VIII) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
17 THOUSAND FIFTEEN, IF THE ENTIRE NET INCOME BASE IS NOT MORE THAN TWO
18 HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FIVE AND TWO-TENTHS
19 PERCENT OF THE ENTIRE NET INCOME BASE; IF THE ENTIRE NET INCOME BASE IS
20 MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
21 NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) FIFTEEN THOU-
22 SAND EIGHTY DOLLARS, (2) NINE AND SEVENTY-FIVE ONE-HUNDREDTHS PERCENT OF
23 THE EXCESS OF THE ENTIRE NET INCOME BASE OVER TWO HUNDRED NINETY THOU-
24 SAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND (3)
25 SEVEN AND ONE-TENTHS PERCENT OF THE EXCESS OF THE ENTIRE NET INCOME BASE
26 OVER THREE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
27 NINETY THOUSAND DOLLARS;
28 S 4. The opening paragraph of subparagraph 4 of paragraph (d) of
29 subdivision 1 of section 210 of the tax law, as added by section 2 of
30 part AA-1 of chapter 57 of the laws of 2008, is amended to read as
31 follows:
32 Notwithstanding subparagraphs one and two of this paragraph, for taxa-
33 ble years beginning on or after January first, two thousand eight AND
34 ENDING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, the amount prescribed
35 by this paragraph for New York S corporations will be determined in
36 accordance with the following table:
37 S 5. Subparagraphs 5 and 6 of paragraph (d) of subdivision 1 of
38 section 210 of the tax law are renumbered subparagraphs 6 and 7.
39 S 6. Paragraph (d) of subdivision 1 of section 210 of the tax law is
40 amended by adding a new subparagraph 5 to read as follows:
41 (5) NOTWITHSTANDING SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH, FOR
42 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN,
43 THE AMOUNT PRESCRIBED BY THIS PARAGRAPH FOR NEW YORK S CORPORATIONS WILL
44 BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
45 IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
46 NOT MORE THAN $100,000 $1
47 MORE THAN $100,000 BUT NOT OVER $250,000 $1
48 MORE THAN $250,000 BUT NOT OVER $500,000 $1
49 MORE THAN $500,000 BUT NOT OVER $1,000,000 $1
50 MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,000
51 MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,000
52 OVER $25,000,000 $4,500
53 OTHERWISE THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED IN
54 ACCORDANCE WITH THE FOLLOWING TABLE:
55 IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
S. 1906--A 3
1 NOT MORE THAN $100,000 $1
2 MORE THAN $100,000 BUT NOT OVER $250,000 $1
3 MORE THAN $250,000 BUT NOT OVER $500,000 $1
4 MORE THAN $500,000 BUT NOT OVER $1,000,000 $1
5 MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,500
6 MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,500
7 OVER $25,000,000 $5,000
8 FOR PURPOSES OF THIS PARAGRAPH, NEW YORK RECEIPTS ARE THE RECEIPTS
9 COMPUTED IN ACCORDANCE WITH SUBPARAGRAPH TWO OF PARAGRAPH (A) OF SUBDI-
10 VISION THREE OF THIS SECTION FOR THE TAXABLE YEAR.
11 S 7. Subparagraph 6 of paragraph (d) of subdivision 1 of section 210
12 of the tax law, as added by section 3 of part C of chapter 56 of the
13 laws of 2011 and as renumbered by section five of this act, is amended
14 to read as follows:
15 (6) For taxable years beginning on or after January first, two thou-
16 sand twelve and before January first, two thousand fifteen, the amounts
17 prescribed in subparagraphs one and [four] FIVE of this paragraph as the
18 fixed dollar minimum tax for an eligible qualified New York manufacturer
19 shall be one-half of the amounts stated in those subparagraphs. For
20 purposes of this subparagraph, the term "eligible qualified New York
21 manufacturer" shall have the same meaning as in subparagraph (vi) of
22 paragraph (a) of this subdivision.
23 S 8. This act shall take effect immediately; provided that sections
24 one and seven of this act shall apply to taxable years beginning on or
25 after January 1, 2015.
