Bill Text: NY S05487 | 2015-2016 | General Assembly | Amended

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

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Bill Title: Establishes a shipping cost tax credit; defines eligible manufacturers and eligible shipping costs; establishes equation for determining amount of credit.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2016-02-05 - PRINT NUMBER 5487B [S05487 Detail]

Download: New_York-2015-S05487-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        5487--A
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 14, 2015
                                      ___________
       Introduced  by  Sens.  DeFRANCISCO,  VALESKY  --  read twice and ordered
         printed, and when printed to be committed to the Committee on Investi-
         gations  and  Government  Operations  --  committee  discharged,  bill
         amended,  ordered reprinted as amended and recommitted to said commit-
         tee
       AN ACT to amend the tax law, in relation to establishing a shipping cost
         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 (ccc) to read as follows:
    3    (CCC) SHIPPING COST TAX CREDIT. (1) ALLOWANCE OF  CREDIT.  A  TAXPAYER
    4  THAT  IS  AN  OWNER  OF  AN ELIGIBLE MANUFACTURER, AND IS SUBJECT TO TAX
    5  UNDER THIS ARTICLE, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT
    6  TO THE PROVISIONS OF THIS SUBSECTION,  TO  BE  COMPUTED  AS  HEREINAFTER
    7  PROVIDED.
    8    (2)  GROSS  RECEIPTS  OR  SALE.  FOR  PURPOSES  OF THIS SECTION, GROSS
    9  RECEIPTS OR SALES ARE AS REPORTED ON THE ELIGIBLE MANUFACTURER'S FEDERAL
   10  INCOME TAX RETURN. FOR A SHORT TAX PERIOD, THE GROSS RECEIPTS  OR  SALES
   11  IS EQUAL TO THE PRODUCT OF (A) THE TOTAL GROSS RECEIPTS OR SALES FOR THE
   12  SHORT  TAX PERIOD DIVIDED BY THE NUMBER OF MONTHS IN THE SHORT TAX PERI-
   13  OD, AND (B) TWELVE.
   14    (3) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL THE SUM OF  ALL
   15  ELIGIBLE SHIPPING COSTS INCURRED WITHIN THE TAX YEAR FOR THE SHIPMENT OF
   16  PRODUCT  MANUFACTURED  IN  NEW YORK STATE BY AN ELIGIBLE MANUFACTURER TO
   17  LOCATIONS OUTSIDE OF NEW YORK STATE, BUT WITHIN THE  CONTINENTAL  UNITED
   18  STATES.
   19    (4)  ELIGIBLE SHIPPING COSTS. THE TERM "ELIGIBLE SHIPPING COSTS" MEANS
   20  ALL COSTS OF SHIPPING PRODUCT MANUFACTURED BY A  BUSINESS  IN  NEW  YORK
   21  STATE  AND  SHIPPED  TO A LOCATION OUTSIDE OF NEW YORK STATE, BUT WITHIN
   22  THE CONTINENTAL UNITED STATES, FOR SALE TO AN ENTITY FOR THE PURPOSE  OF
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11160-02-5
       S. 5487--A                          2
    1  INCORPORATING  SUCH SHIPPED PRODUCT INTO A CONSUMER GOOD. THE PURCHASING
    2  ENTITY SHALL NOT BE A "RELATED PERSON" TO THE  SELLING  ENTITY  AS  SUCH
    3  TERM IS DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH THREE OF SUBSECTION (B)
    4  OF  SECTION  FOUR  HUNDRED SIXTY-FIVE OF THE INTERNAL REVENUE CODE. SUCH
    5  COSTS SHALL INCLUDE COSTS OF FUEL, INSURANCE, MAINTENANCE AND SERVICE OF
    6  FREIGHT VEHICLES,  AND  AMOUNTS  PAID  TO  CONTRACT  COMPANIES  FOR  AIR
    7  FREIGHT,  LESS-THAN  TRUCKLOAD  AND  TRUCKLOAD  SHIPPING  SERVICES, RAIL
    8  SERVICES, INTERMODAL SERVICES AND OTHER SIMILAR CONTRACT SHIPPING COSTS.
    9  THE COST OF PURCHASING OR LEASING TRUCKS, TRAILERS OR  SIMILAR  SHIPPING
   10  VEHICLES  IS NOT AN "ELIGIBLE SHIPPING COST." AN ELIGIBLE MANUFACTURER'S
   11  DIRECT LABOR COSTS TO LOAD,  UNLOAD,  OR  OPERATE  VEHICLES  IS  NOT  AN
   12  "ELIGIBLE SHIPPING COST."
   13    (5)  ELIGIBLE  MANUFACTURERS. (A) FOR THE PURPOSES OF THIS SUBSECTION,
   14  "ELIGIBLE MANUFACTURERS" INCLUDE ONLY A BUSINESS WHICH: (I)  WAS  CERTI-
   15  FIED  AS  AN  EMPIRE  ZONE  ENTERPRISE AND WILL NOT BE ELIGIBLE TO CLAIM
   16  EMPIRE ZONE TAX CREDITS FOR ANY TAX YEAR BEGINNING AFTER DECEMBER  THIR-
   17  TY-FIRST,  TWO  THOUSAND  SEVENTEEN; (II) HAS GROSS RECEIPTS OR SALES AS
   18  DEFINED HEREIN OF AT LEAST ONE HUNDRED MILLION DOLLARS FOR THE YEAR  FOR
   19  WHICH  THE SHIPPING COST TAX CREDIT IS CLAIMED; AND (III) IS PRINCIPALLY
   20  ENGAGED IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING,  ASSEM-
   21  BLING, REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE,
   22  VITICULTURE, OR COMMERCIAL FISHING DURING THE TAX YEAR, AND EMPLOYS MORE
   23  THAN  THREE  HUNDRED INDIVIDUALS IN NEW YORK STATE AS OF THE LAST DAY OF
   24  THE TAX YEAR. A BUSINESS IS PRINCIPALLY ENGAGED IN MANUFACTURING  ACTIV-
   25  ITIES  IF  DURING  THE  TAX  YEAR  MORE  THAN FIFTY PERCENT OF ITS GROSS
   26  RECEIPTS ARE DERIVED FROM RECEIPTS FOR THE SALE  OF  GOODS  PRODUCED  BY
   27  THESE  ACTIVITIES.  THE  GENERATION AND DISTRIBUTION OF ELECTRICITY, THE
   28  DISTRIBUTION OF NATURAL GAS, AND THE PRODUCTION OF STEAM ASSOCIATED WITH
   29  THE GENERATION OF ELECTRICITY ARE NOT QUALIFYING ACTIVITIES.
   30    (B) PROVIDED HOWEVER, THE AMOUNT OF THE SHIPPING COST TAX  CREDIT  FOR
   31  AN  ELIGIBLE MANUFACTURER MAY NOT EXCEED THREE PERCENT OF GROSS RECEIPTS
   32  OR SALES IN ANY GIVEN TAX YEAR.
   33    S 2. This act shall take effect immediately and shall apply to taxable
   34  years beginning on and after January 1, 2016.