Bill Text: NY S03052 | 2009-2010 | General Assembly | Introduced
Bill Title: Provides a tax credit for certain health insurance plans purchased by small employers and certain individuals.
Sponsorship: Partisan Bill (Republican 11)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S03052 Detail]
Download: New_York-2009-S03052-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
3052
2009-2010 Regular Sessions
I N S E N A T E
March 10, 2009
___________
Introduced by Sens. SEWARD, ALESI, BONACIC, DeFRANCISCO, HANNON,
O. JOHNSON, LANZA, MAZIARZ, MORAHAN, RANZENHOFER, VOLKER -- read twice
and ordered printed, and when printed to be committed to the Committee
on Investigations and Government Operations
AN ACT to amend the tax law, in relation to providing a tax credit for
the purchase of certain health insurance
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 41 to read as follows:
3 41. (A) A TAXPAYER WHO IS A QUALIFIED SMALL EMPLOYER SHALL BE ALLOWED
4 A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE APPLICABLE
5 PERCENTAGE OF PREMIUMS PAID DURING THE TAXABLE YEAR FOR HEALTH INSURANCE
6 BY SUCH EMPLOYER. THE APPLICABLE PERCENTAGE SHALL BE (I) FIVE PERCENT
7 FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE
8 AND (II) TEN PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
9 FIRST, TWO THOUSAND TEN.
10 (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY YEAR SHALL NOT
11 REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS
12 PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION.
13 IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
14 ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT
15 NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
16 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
17 OR YEARS.
18 (C) FOR THE PURPOSES OF THIS SUBDIVISION "QUALIFIED SMALL EMPLOYER"
19 SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
20 BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES WHO IS A
21 "SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE
22 OF THIS SECTION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07605-01-9
S. 3052 2
1 (D) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "HEALTH INSURANCE"
2 MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
3 OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
4 HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
5 EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
6 PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
7 IN A HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL
8 MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
9 S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
10 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of
11 the laws of 2008, is amended to read as follows:
12 (B) shall be treated as the owner of a new business with respect to
13 such share if the corporation qualifies as a new business pursuant to
14 paragraph (j) of subdivision twelve of section two hundred ten of this
15 chapter.
16 The corporation's credit base under
17 section two hundred ten or section
18 With respect to the following fourteen hundred fifty-six of this
19 credit under this section: chapter is:
20 (I) Investment tax credit under Investment credit base or qualified
21 subsection (a) rehabilitation expenditures under
22 subdivision twelve of section two
23 hundred ten
24 (II) Empire zone investment Cost or other basis under
25 tax credit under subsection (j) subdivision twelve-B of section
26 two hundred ten
27 (III) Empire zone wage tax credit Eligible wages under subdivision
28 under subsection (k) nineteen of section two hundred
29 ten or subsection (e) of section
30 fourteen hundred fifty-six
31 (IV) Empire zone capital tax Qualified investments and
32 credit under subsection (l) contributions under subdivision
33 twenty of section two hundred ten
34 or subsection (d) of section
35 fourteen hundred fifty-six
36 (V) Agricultural property tax Allowable school district property
37 credit under subsection (n) taxes under subdivision twenty-two
38 of section two hundred ten
39 (VI) Credit for employment of Qualified first-year wages or
40 persons with disabilities qualified second-year wages under
41 under subsection (o) subdivision twenty-three of
42 section two hundred ten or
43 subsection (f) of section
44 fourteen hundred fifty-six
45 (VII) Employment incentive credit Applicable investment credit base
46 under subsection (a-1) under subdivision twelve-D of
47 section two hundred ten
S. 3052 3
1 (VIII) Empire zone employment Applicable investment credit
2 incentive credit under subsection under subdivision twelve-C of
3 (j-1) section two hundred ten
4 (IX) Alternative fuels credit Cost under subdivision twenty-four
5 under subsection (p) of section two hundred ten
6 (X) Qualified emerging technology Applicable credit base under
7 company employment credit under subdivision twelve-E of section
8 subsection (q) two hundred ten
9 (XI) Qualified emerging technology Qualified investments under
10 company capital tax credit under subdivision twelve-F of section
11 subsection (r) two hundred ten
12 (XII) Credit for purchase of an Cost of an automated external
13 automated external defibrillator defibrillator under subdivision
14 under subsection (s) twenty-five of section two hundred
15 ten or subsection (j) of section
16 fourteen hundred fifty-six
17 (XIII) Low-income housing credit Credit amount under subdivision
18 under subsection (x) thirty of section two hundred ten
19 or subsection (l) of section
20 fourteen hundred fifty-six
21 (XIV) Credit for transportation Amount of credit under subdivision
22 improvement contributions under thirty-two of section two hundred
23 subsection (z) ten or subsection (n) of section
24 fourteen hundred fifty-six
25 (XV) QEZE credit for real property Amount of credit under subdivision
26 taxes under subsection (bb) twenty-seven of section two hundred
27 ten or subsection (o) of section
28 fourteen hundred fifty-six
29 (XVI) QEZE tax reduction credit Amount of benefit period factor,
30 under subsection (cc) employment increase factor and zone
31 allocation factor (without regard
32 to pro ration) under subdivision
33 twenty-eight of section two hundred
34 ten or subsection (p) of section
35 fourteen hundred fifty-six and
36 amount of tax factor as determined
37 under subdivision (f) of section
38 sixteen
39 (XVII) Green building credit under Amount of green building credit
40 subsection (y) under subdivision thirty-one of
41 section two hundred ten or
42 subsection (m) of section fourteen
43 hundred fifty-six
44 (XVIII) Credit for long-term care Qualified costs under subdivision
45 insurance premiums under subsection twenty-five-a of section two
46 (aa) hundred ten or subsection (k) of
S. 3052 4
1 section fourteen hundred fifty-six
2 (XIX) Brownfield redevelopment Amount of credit under subdivision
3 credit under subsection (dd) thirty-three of section two hundred
4 ten or subsection (q) of section
5 fourteen hundred fifty-six
6 (XX) Remediated brownfield credit Amount of credit under subdivision
7 for real property taxes for thirty-four of section two hundred
8 qualified sites under subsection ten or subsection (r) of section
9 (ee) fourteen hundred fifty-six
10 (XXI) Environmental remediation Amount of credit under subdivision
11 insurance credit under subsection thirty-five of section two hundred
12 (ff) ten or subsection (s) of section
13 fourteen hundred fifty-six
14 (XXII) Empire state film production Amount of credit for qualified
15 credit under subsection (gg) production costs in production of a
16 qualified film under subdivision
17 thirty-six of section two hundred
18 ten
19 (XXIII) Qualified emerging Qualifying expenditures and
20 technology company facilities, development activities under
21 operations and training credit subdivision twelve-G of section two
22 under subsection (nn) hundred ten
23 (XXIV) Security training tax credit Amount of credit under subdivision
24 under subsection (ii) thirty-seven of section two hundred
25 ten or under subsection (t) of
26 section fourteen hundred fifty-six
27 (XXV) Credit for qualified fuel Amount of credit under subdivision
28 cell electric generating equipment thirty-seven of section two hundred
29 expenditures under subsection (g-2) ten or subsection (t) of section
30 fourteen hundred fifty-six
31 (XXVI) Empire state commercial Amount of credit for qualified
32 production credit under subsection production costs in production of
33 (jj) a qualified commercial under
34 subdivision thirty-eight of
35 section two hundred ten
36 (XXVII) Biofuel production tax Amount of credit under subdivision
37 credit under subsection (jj) thirty-eight of section two hundred
38 ten
39 (XXVIII) Clean heating fuel credit Amount of credit under subdivision
40 under subsection (mm) thirty-nine of section two hundred
41 ten
42 (XXIX) Credit for rehabilitation Amount of credit under subdivision
43 of historic properties under forty of [subsection] SECTION
44 subsection (oo) two hundred ten
S. 3052 5
1 (XXX) Credit for companies who Amount of credit under subdivision
2 provide transportation to forty of section two hundred ten
3 individuals with disabilities under
4 subsection (oo)
5 (XXXI) SMALL EMPLOYER HEALTH CREDIT UNDER SUBDIVISION
6 CARE INSURANCE CREDIT FORTY-ONE OF SECTION TWO
7 UNDER SUBSECTION (QQ) HUNDRED TEN
8 S 3. Section 606 of the tax law is amended by adding a new subsection
9 (qq) to read as follows:
10 (QQ) SMALL EMPLOYER HEALTH CARE INSURANCE CREDIT. (1) A TAXPAYER WHO
11 IS A QUALIFIED SMALL EMPLOYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX
12 IMPOSED BY THIS ARTICLE EQUAL TO THE APPLICABLE PERCENTAGE OF THE PREMI-
13 UMS PAID DURING THE TAXABLE YEAR FOR HEALTH INSURANCE BY SUCH EMPLOYER.
14 THE APPLICABLE PERCENTAGE SHALL BE (A) FIVE PERCENT FOR TAXABLE YEARS
15 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE AND (B) TEN
16 PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
17 SAND TEN. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION
18 FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE
19 EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE
20 DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
21 (2) FOR THE PURPOSES OF THIS SUBSECTION "QUALIFIED SMALL EMPLOYER"
22 SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
23 BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES WHO IS A
24 "SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE
25 OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
26 (3) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "HEALTH INSURANCE"
27 MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
28 OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
29 HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
30 EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
31 PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
32 IN A HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL
33 MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
34 S 4. Section 1456 of the tax law is amended by adding a new subsection
35 (f-1) to read as follows:
36 (F-1) SMALL EMPLOYER TAX CREDIT. (1) A TAXPAYER WHO IS A QUALIFIED
37 SMALL EMPLOYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS
38 ARTICLE EQUAL TO THE APPLICABLE PERCENTAGE OF THE PREMIUMS PAID DURING
39 THE TAXABLE YEAR FOR HEALTH INSURANCE BY SUCH EMPLOYER. THE APPLICABLE
40 PERCENTAGE SHALL BE (A) FIVE PERCENT FOR TAXABLE YEARS BEGINNING ON OR
41 AFTER JANUARY FIRST, TWO THOUSAND NINE AND (B) TEN PERCENT FOR TAXABLE
42 YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN.
43 (2) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR, AND CARRYOVERS
44 OF SUCH CREDIT, BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYA-
45 BLE TO LESS THAN THE DOLLAR AMOUNT FIXED AS A MINIMUM TAX BY SUBSECTION
46 (B) OF SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS ARTICLE. IF, HOWEVER,
47 THE AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWABLE
48 UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
49 AMOUNT, ANY AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT THUS NOT
50 DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
51 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
52 OR YEARS.
53 (3) FOR THE PURPOSES OF THIS SECTION THE TERM "QUALIFIED SMALL EMPLOY-
54 ER" SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
55 BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES WHO IS A
S. 3052 6
1 "SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE
2 OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
3 (4) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "HEALTH INSURANCE"
4 MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
5 OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
6 HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
7 EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
8 PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
9 IN A HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL
10 MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
11 S 5. Section 1511 of the tax law is amended by adding a new subdivi-
12 sion (y) to read as follows:
13 (Y) SMALL EMPLOYER HEALTH CARE INSURANCE CREDIT. (1) A TAXPAYER SHALL
14 BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE
15 APPLICABLE PERCENTAGE OF THE PREMIUMS PAID DURING THE TAXABLE YEAR FOR
16 HEALTH INSURANCE BY SUCH EMPLOYER. THE APPLICABLE PERCENTAGE SHALL BE
17 (A) FIVE PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
18 TWO THOUSAND NINE AND (B) TEN PERCENT FOR TAXABLE YEARS BEGINNING ON OR
19 AFTER JANUARY FIRST, TWO THOUSAND TEN.
20 (2) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN AN
21 AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE MINIMUM FIXED
22 BY SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE. IF,
23 HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY
24 TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT
25 DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
26 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
27 OR YEARS.
28 (3) FOR THE PURPOSES OF THIS SUBDIVISION THE TERM "QUALIFIED SMALL
29 EMPLOYER" SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE
30 OF THE BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES WHO IS
31 A "SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION
32 ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
33 (4) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "HEALTH INSURANCE"
34 MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
35 OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
36 HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
37 EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
38 PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
39 IN A HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL
40 MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
41 S 6. Section 606 of the tax law is amended by adding a new subsection
42 (h-1) to read as follows:
43 (H-1) INDIVIDUAL ENROLLEE HEALTH INSURANCE CREDIT. A TAXPAYER SHALL BE
44 ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE
45 APPLICABLE PERCENTAGE OF THE PREMIUM PAID DURING THE TAXABLE YEAR FOR
46 HEALTH INSURANCE PURCHASED PURSUANT TO SECTION FOUR THOUSAND THREE
47 HUNDRED TWENTY-ONE OR FOUR THOUSAND THREE HUNDRED TWENTY-TWO OF THE
48 INSURANCE LAW, INCLUDING POLICIES INTENDED TO QUALIFY FOR USE IN A
49 HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL MEDICARE
50 PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003. THE APPLI-
51 CABLE PERCENTAGE SHALL BE (1) FIVE PERCENT FOR TAXABLE YEARS BEGINNING
52 ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE AND (2) TEN PERCENT FOR
53 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN.
54 S 7. This act shall take effect January 1, 2010; provided, however
55 that the empire state film production credit under subsection (gg), the
56 empire state commercial production credit under subsection (jj) and the
S. 3052 7
1 credit for companies who provide transportation to individuals with
2 disabilities under subsection (oo) of section 606 of the tax law
3 contained in section two of this act shall expire on the same date as
4 provided in section 9 of part P of chapter 60 of the laws of 2004, as
5 amended, section 10 of part V of chapter 62 of the laws of 2006, as
6 amended and section 5 of chapter 522 of the laws of 2006, as amended,
7 respectively.
