S T A T E O F N E W Y O R K ________________________________________________________________________ 7196--B 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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. PROVIDED HOWEVER, TAXPAYERS FILING UNDER ARTICLE 11 TWENTY-TWO OF THIS CHAPTER SHALL INCLUDE FOR THE PURPOSES OF THE TAX 12 FACTOR ALL BUSINESS INCOME ATTRIBUTABLE TO A QEZE BUSINESS WHICH IS 13 TAXABLE UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER. The tax factor shall 14 be, in the case of article thirty-two of this chapter, the larger of the 15 amounts of tax determined for the taxable year under subsection (a) and 16 paragraph two of subsection (b) of section fourteen hundred fifty-five 17 of such article. The tax factor shall be, in the case of article thir- 18 ty-three of this chapter, the larger of the amounts of tax determined 19 for the taxable year under paragraphs one and three of subdivision (a) 20 of section fifteen hundred two of such article. 21 S 2. Paragraph 1 of subdivision (f) of section 16 of the tax law, as 22 amended by section 34 of part A of chapter 59 of the laws of 2014, is 23 amended to read as follows: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14537-07-4 S. 7196--B 2 1 (1) General. The tax factor shall be, in the case of article nine-A of 2 this chapter, the amount of tax determined for the taxable year under 3 paragraph (a) of subdivision one of section two hundred ten of such 4 article. The tax factor shall be, in the case of article twenty-two of 5 this chapter, the tax determined for the taxable year under subsections 6 (a) through (d) of section six hundred one of such article. PROVIDED 7 HOWEVER, TAXPAYERS FILING UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL 8 INCLUDE FOR THE PURPOSES OF THE TAX FACTOR ALL BUSINESS INCOME ATTRIBUT- 9 ABLE TO A QEZE BUSINESS WHICH IS TAXABLE UNDER ARTICLE TWENTY-TWO OF 10 THIS CHAPTER. The tax factor shall be, in the case of article thirty- 11 three of this chapter, the larger of the amounts of tax determined for 12 the taxable year under paragraphs one and three of subdivision (a) of 13 section fifteen hundred two of such article. 14 S 3. This act shall take effect immediately; provided, however that 15 section two of this act shall take effect on the same date and in the 16 same manner as section 34 of part A of chapter 59 of the laws of 2014 17 takes effect.