S T A T E O F N E W Y O R K ________________________________________________________________________ 7196 I N S E N A T E May 5, 2014 ___________ Introduced by Sen. RANZENHOFER -- 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 QEZE tax reduction credits THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Paragraph 1 of subdivision (f) of section 16 of the tax 2 law, as amended by section 14 of part CC of chapter 85 of the laws of 3 2002, is amended to read as follows: 4 (1) General. The tax factor shall be, in the case of article nine-A of 5 this chapter, the larger of the amounts of tax determined for the taxa- 6 ble year under paragraphs (a) and (c) of subdivision one of section two 7 hundred ten of such article. The tax factor shall be, in the case of 8 article twenty-two of this chapter, the tax determined for the taxable 9 year under subsections (a) through (d) of section six hundred one of 10 such article. FOR THE PURPOSES OF CALCULATING THE TAX FACTOR UNDER ARTI- 11 CLE TWENTY-TWO OF THIS CHAPTER, INCOME ALLOCATED TO NEW YORK STATE SHALL 12 INCLUDE ALL BUSINESS INCOME. The tax factor shall be, in the case of 13 article thirty-two of this chapter, the larger of the amounts of tax 14 determined for the taxable year under subsection (a) and paragraph two 15 of subsection (b) of section fourteen hundred fifty-five of such arti- 16 cle. The tax factor shall be, in the case of article thirty-three of 17 this chapter, the larger of the amounts of tax determined for the taxa- 18 ble year under paragraphs one and three of subdivision (a) of section 19 fifteen hundred two of such article. 20 S 2. Paragraph 1 of subdivision (f) of section 16 of the tax law, as 21 amended by section 34 of part A of chapter 59 of the laws of 2014, is 22 amended to read as follows: 23 (1) General. The tax factor shall be, in the case of article nine-A of 24 this chapter, the amount of tax determined for the taxable year under 25 paragraph (a) of subdivision one of section two hundred ten of such 26 article. The tax factor shall be, in the case of article twenty-two of 27 this chapter, the tax determined for the taxable year under subsections 28 (a) through (d) of section six hundred one of such article. FOR THE EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14537-02-4 S. 7196 2 1 PURPOSES OF CALCULATING THE TAX FACTOR UNDER ARTICLE TWENTY-TWO OF THIS 2 CHAPTER, INCOME ALLOCATED TO NEW YORK STATE SHALL INCLUDE ALL BUSINESS 3 INCOME. The tax factor shall be, in the case of article thirty-three of 4 this chapter, the larger of the amounts of tax determined for the taxa- 5 ble year under paragraphs one and three of subdivision (a) of section 6 fifteen hundred two of such article. 7 S 3. This act shall take effect immediately; provided, however that 8 section one of this act shall be deemed to apply to taxable years begin- 9 ning on or after January 1, 2014; provided further that section two of 10 this act shall take effect on the same date and in the same manner as 11 section 34 of part A of chapter 59 of the laws of 2014 takes effect.