Bill Text: NY S07448 | 2011-2012 | General Assembly | Introduced
Bill Title: Enacts the "2012 New Jobs-NY job creation act"; establishes a small business credit and a hire-now credit; relates to the franchise tax on business corporations; relates to a temporary annual assessment; establishes a beer production and beer label tax credits; relates to the allocation of credit for the empire state film production credit; establishes an angel tax credit for investments made in small businesses.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2012-05-31 - referred to ways and means [S07448 Detail]
Download: New_York-2011-S07448-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7448
I N S E N A T E
May 18, 2012
___________
Introduced by Sen. SKELOS -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the tax law, in relation to establishing a small busi-
ness tax credit and a hire-now tax credit (Part A); to amend the tax
law, in relation to the franchise tax on business corporations (Part
B); to amend the public service law, in relation to a temporary annual
assessment; to amend part NN of chapter 59 of the laws of 2009 amend-
ing the public service law relating to financing operations of the
department of public service, in relation to the effectiveness there-
of; and to amend the public service law, in relation to reducing the
amount a utility can be assessed (Part C); to amend the tax law, in
relation to establishing the beer production and beer label tax cred-
its (Part D); to amend the tax law, in relation to the allocation of
credit for the empire state film production credit; and to repeal
section 7 of part P of chapter 60 of the laws of 2004, amending the
tax law relating to the empire state film production credit, relating
thereto (Part E); and to amend the general municipal law and the tax
law, in relation to establishing an angel tax credit for investments
made in small businesses (Part F)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. This act shall be known and may be cited as the "2012 New
2 Jobs-NY job creation act".
3 S 2. This act enacts into law components of legislation relating to
4 enacting the "2012 New Jobs-NY job creation act". Each component is
5 wholly contained within a Part identified as Parts A through F. The
6 effective date for each particular provision contained within such Part
7 is set forth in the last section of such Part. Any provision in any
8 section contained within a Part, including the effective date of the
9 Part, which makes reference to a section "of this act", when used in
10 connection with that particular component, shall be deemed to mean and
11 refer to the corresponding section of the Part in which it is found.
12 Section four of this act sets forth the general effective date of this
13 act.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15938-03-2
S. 7448 2
1 PART A
2 Section 1. Section 606 of the tax law is amended by adding a new
3 subsection (uu) to read as follows:
4 (UU) SMALL BUSINESS TAX CREDIT. (1) GENERAL. A QUALIFIED TAXPAYER
5 SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL
6 TO SIX AND SIXTY-FIVE HUNDREDTHS PERCENT OF QUALIFIED BUSINESS INCOME.
7 (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM:
8 (A) "QUALIFIED TAXPAYER" SHALL MEAN A SOLE PROPRIETOR WHO EMPLOYS ONE
9 OR MORE PERSONS AND WHO HAS NET BUSINESS INCOME OF LESS THAN TWO HUNDRED
10 FIFTY THOUSAND DOLLARS.
11 (B) "QUALIFIED BUSINESS INCOME" SHALL MEAN TEN PERCENT OF THE BUSINESS
12 INCOME OF THE TAXPAYER AS DEFINED IN THE LAWS OF THE UNITED STATES.
13 (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
14 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
15 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
16 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
17 ARTICLE, PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON.
18 S 2. Subparagraph (iv) of paragraph (a) of subdivision 1 of section
19 210 of the tax law, as amended by section 2 of part N of chapter 60 of
20 the laws of 2007, is amended to read as follows:
21 (iv) for taxable years beginning on or after January first, two thou-
22 sand seven AND ENDING BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, if
23 the entire net income base is not more than two hundred ninety thousand
24 dollars the amount shall be six and one-half percent of the entire net
25 income base; if the entire net income base is more than two hundred
26 ninety thousand dollars but not over three hundred ninety thousand
27 dollars the amount shall be the sum of (1) eighteen thousand eight
28 hundred fifty dollars, (2) seven and one-tenth percent of the excess of
29 the entire net income base over two hundred ninety thousand dollars but
30 not over three hundred ninety thousand dollars and (3) four and thirty-
31 five hundredths percent of the excess of the entire net income base over
32 three hundred fifty thousand dollars but not over three hundred ninety
33 thousand dollars;
34 S 3. Paragraph (a) of subdivision 1 of section 210 of the tax law is
35 amended by adding a new subparagraph (vii) to read as follows:
36 (VII) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
37 SAND THIRTEEN, IF THE ENTIRE NET INCOME BASE IS NOT MORE THAN TWO
38 HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FIVE AND TWO-TENTHS
39 PERCENT OF THE ENTIRE NET INCOME BASE; IF THE ENTIRE NET INCOME BASE IS
40 MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
41 NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) FIFTEEN THOU-
42 SAND EIGHTY DOLLARS, (2) NINE AND SEVENTY-FIVE ONE-HUNDREDTHS PERCENT OF
43 THE EXCESS OF THE ENTIRE NET INCOME BASE OVER TWO HUNDRED NINETY THOU-
44 SAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND (3)
45 SEVEN AND ONE-TENTHS PERCENT OF THE EXCESS OF THE ENTIRE NET INCOME BASE
46 OVER THREE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
47 NINETY THOUSAND DOLLARS;
48 S 4. The opening paragraph of subparagraph 4 of paragraph (d) of
49 subdivision 1 of section 210 of the tax law, as added by section 2 of
50 part AA-1 of chapter 57 of the laws of 2008, is amended to read as
51 follows:
52 Notwithstanding subparagraphs one and two of this paragraph, for taxa-
53 ble years beginning on or after January first, two thousand eight AND
54 ENDING BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, the amount
S. 7448 3
1 prescribed by this paragraph for New York S corporations will be deter-
2 mined in accordance with the following table:
3 S 5. Subparagraph 5 of paragraph (d) of subdivision 1 of section 210
4 of the tax law is renumbered subparagraph 6.
5 S 6. Paragraph (d) of subdivision 1 of section 210 of the tax law is
6 amended by adding a new subparagraph 5 to read as follows:
7 (5) NOTWITHSTANDING SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH, FOR
8 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIR-
9 TEEN, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH FOR NEW YORK S CORPO-
10 RATIONS WILL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
11 IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
12 NOT MORE THAN $100,000 $1
13 MORE THAN $100,000 BUT NOT OVER $250,000 $1
14 MORE THAN $250,000 BUT NOT OVER $500,000 $1
15 MORE THAN $500,000 BUT NOT OVER $1,000,000 $1
16 MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,000
17 MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,000
18 OVER $25,000,000 $4,500
19 OTHERWISE THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED IN
20 ACCORDANCE WITH THE FOLLOWING TABLE:
21 IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
22 NOT MORE THAN $100,000 $1
23 MORE THAN $100,000 BUT NOT OVER $250,000 $1
24 MORE THAN $250,000 BUT NOT OVER $500,000 $1
25 MORE THAN $500,000 BUT NOT OVER $1,000,000 $1
26 MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,500
27 MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,500
28 OVER $25,000,000 $5,000
29 FOR PURPOSES OF THIS PARAGRAPH, NEW YORK RECEIPTS ARE THE RECEIPTS
30 COMPUTED IN ACCORDANCE WITH SUBPARAGRAPH TWO OF PARAGRAPH (A) OF SUBDI-
31 VISION THREE OF THIS SECTION FOR THE TAXABLE YEAR.
32 S 7. Subparagraph 6 of paragraph (d) of subdivision 1 of section 210
33 of the tax law, as added by section 3 of part C of chapter 56 of the
34 laws of 2011 and as renumbered by section five of this act, is amended
35 to read as follows:
36 (6) For taxable years beginning on or after January first, two thou-
37 sand twelve and before January first, two thousand fifteen, the amounts
38 prescribed in subparagraphs one and [four] FIVE of this paragraph as the
39 fixed dollar minimum tax for an eligible qualified New York manufacturer
40 shall be one-half of the amounts stated in those subparagraphs. For
41 purposes of this subparagraph, the term "eligible qualified New York
42 manufacturer" shall have the same meaning as in subparagraph (vi) of
43 paragraph (a) of this subdivision.
44 S 8. The tax law is amended by adding a new section 37 to read as
45 follows:
46 S 37. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER, WHICH
47 IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
48 WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
49 AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE
50 PRODUCT OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW EMPLOYEE.
51 THE CREDIT SHALL NOT BE MORE THAN FIVE THOUSAND DOLLARS FOR ANY NEW
52 EMPLOYEE FOR ONE FULL YEAR OF EMPLOYMENT; IF A NEW EMPLOYEE HAS BEEN
53 HIRED FOR LESS THAN A FULL TAX YEAR THIS AMOUNT SHALL BE PRORATED AND
54 APPORTIONED TO EACH TAX YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE
55 CONSECUTIVE YEARS OF CREDIT ELIGIBILITY. THE TAXPAYER MAY CLAIM THIS
56 CREDIT FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS OF
S. 7448 4
1 EMPLOYMENT. THE TAXPAYER MAY OFFSET QUARTERLY ESTIMATED TAX RETURNS
2 WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
3 (B) UNEMPLOYMENT ENHANCEMENT. IF A NEW EMPLOYEE WAS RECEIVING UNEM-
4 PLOYMENT INSURANCE BENEFITS AT THE TIME OF HIRE, AN ADDITIONAL THREE
5 THOUSAND DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF
6 EMPLOYMENT.
7 (C) HIRE-A-VET ENHANCEMENT. IF A NEW EMPLOYEE WAS RECEIVING UNEMPLOY-
8 MENT INSURANCE BENEFITS AT THE TIME OF HIRE AND IS ALSO A VETERAN, AN
9 ADDITIONAL FIVE THOUSAND DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST
10 FULL YEAR OF EMPLOYMENT.
11 (D) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
12 HAVE THE FOLLOWING MEANINGS:
13 (1) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED BY
14 THE TAXPAYER AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE APRIL
15 FIRST, TWO THOUSAND THIRTEEN, THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES
16 TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT EMPLOYMENT, WHICHEVER IS
17 HIGHER.
18 (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND ELEVEN.
19 (3) "BASE EMPLOYMENT" SHALL MEAN THE AVERAGE NUMBER OF FULL TIME
20 EMPLOYEES OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR A
21 NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
22 (4) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
23 NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
24 (5) "VETERAN" SHALL MEAN A RESIDENT OF THIS STATE, WHO HAS SERVED ON
25 ACTIVE DUTY IN THE UNTIED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST
26 GUARD, AND/OR RESERVES THEREOF, AND/OR THE ARMY NATIONAL GUARD, AIR
27 NATIONAL GUARD, NEW YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA, AND
28 WHO IS CURRENTLY IN SERVICE, OR HAS BEEN RELEASED FROM SUCH SERVICE BY
29 HONORABLE DISCHARGE, OR WHO HAS BEEN FURLOUGHED TO THE RESERVE AND WHO
30 SERVED IN A WAR, ARMED CONFLICT AND/OR OTHER HOSTILITIES.
31 (E) REPLACEMENT EMPLOYEES. IF A NEW EMPLOYEE FOR WHICH A CREDIT WAS
32 EARNED LEAVES THE PAYROLL AND AN EMPLOYEE IS HIRED WHICH BRINGS TOTAL
33 EMPLOYMENT ABOVE BASE EMPLOYMENT BUT AT OR BELOW CREDIT EMPLOYMENT
34 LEVEL, THE CREDIT ELIGIBILITY PERIOD FOR SUCH EMPLOYEE SHALL BE THREE
35 YEARS MINUS THE AMOUNT OF TIME (ROUNDED TO THE NEXT FULL MONTH) THE
36 EMPLOYER RECEIVED THE CREDIT FOR THE DEPARTING EMPLOYEE.
37 (F) NO DOUBLE CREDIT. A TAXPAYER MAY NOT BE ALLOWED A CREDIT UNDER
38 BOTH SUBDIVISION (B) AND SUBDIVISION (C) OF THIS SECTION FOR THE SAME
39 EMPLOYEE.
40 (G) NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
41 ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS ANY OTHER CREDIT UNDER THIS
42 ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
43 INCREASE IN EMPLOYMENT.
44 S 9. Section 210 of the tax law is amended by adding a new subdivision
45 45 to read as follows:
46 45. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE
47 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF
48 THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
49 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
50 FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
51 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
52 SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT
53 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
54 SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
55 YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
56 IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
S. 7448 5
1 THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF
2 SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
3 INTEREST WILL BE PAID THEREON.
4 S 10. Section 606 of the tax law is amended by adding a new subsection
5 (vv) to read as follows:
6 (VV) HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT, TO
7 THE EXTENT ALLOWED UNDER SECTION THIRTY-SEVEN OF THIS CHAPTER, AGAINST
8 THE TAX IMPOSED BY THIS ARTICLE.
9 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
10 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
11 YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
12 OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED
13 EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
14 PAID THEREON.
15 S 11. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
16 of the tax law is amended by adding a new clause (xxxiv) to read as
17 follows:
18 (XXXIV) HIRE-NOW TAX CREDIT AMOUNT OF CREDIT UNDER
19 UNDER SUBSECTION (VV) SUBDIVISION FORTY-FIVE OF SECTION
20 TWO HUNDRED TEN
21 S 12. This act shall take effect immediately; provided that section
22 one of this act shall apply to taxable years beginning on or after Janu-
23 ary 1, 2013.
24 PART B
25 Section 1. Subdivision 1 of section 209 of the tax law, as amended by
26 chapter 817 of the laws of 1987, is amended to read as follows:
27 1. For the privilege of exercising its corporate franchise, or of
28 doing business, or of employing capital, or of owning or leasing proper-
29 ty in this state in a corporate or organized capacity, or of maintaining
30 an office in this state, for all or any part of each of its fiscal or
31 calendar years, every domestic or foreign corporation, except corpo-
32 rations specified in subdivision four of this section, shall annually
33 pay a franchise tax, upon the basis of its entire net income base, or
34 upon such other basis as may be applicable as hereinafter provided, for
35 such fiscal or calendar year or part thereof, on a report which shall be
36 filed, except as hereinafter provided, on or before the fifteenth day of
37 March next succeeding the close of each such year, or, in the case of a
38 corporation which reports on the basis of a fiscal year, within two and
39 one-half months after the close of such fiscal year, and shall be paid
40 as hereinafter provided. PROVIDED HOWEVER, A MANUFACTURER AS DEFINED IN
41 SECTION TWO HUNDRED TEN OF THIS ARTICLE SHALL NOT BE SUBJECT TO TAX
42 UNDER THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
43 FIRST, TWO THOUSAND FIFTEEN; IF THE MANUFACTURER HAS ONE HUNDRED OR
44 FEWER EMPLOYEES AND LESS THAN ONE MILLION DOLLARS IN GROSS INCOME SUCH
45 MANUFACTURER SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE FOR TAXABLE
46 YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN; IF THE
47 MANUFACTURER HAS FIFTY OR FEWER EMPLOYEES AND LESS THAN FIVE HUNDRED
48 THOUSAND DOLLARS IN GROSS INCOME SUCH MANUFACTURER SHALL NOT BE SUBJECT
49 TO TAX UNDER THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
50 ARY FIRST, TWO THOUSAND THIRTEEN.
51 S 2. Subsection (c) of section 612 of the tax law is amended by adding
52 a new paragraph 39 to read as follows:
53 (39) IN THE CASE OF A TAXPAYER WHO IS A PROPRIETOR OF, A PARTNER IN,
54 AN S-CORPORATION SHAREHOLDER OF, A LIMITED LIABILITY COMPANY MEMBER OF
S. 7448 6
1 OR A LIMITED LIABILITY COMPANY MEMBER OF, A BUSINESS THAT IS A MANUFAC-
2 TURER, AS THE TERM IS DEFINED IN SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF
3 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE, TO THE
4 EXTENT INCLUDED IN FEDERAL GROSS INCOME FOR THE TAXABLE YEAR, BUSINESS
5 INCOME OR SHARE OF BUSINESS INCOME FROM SUCH MANUFACTURING BUSINESS FOR
6 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN,
7 PROVIDED HOWEVER IF SUCH BUSINESS THAT IS A MANUFACTURER HAS ONE HUNDRED
8 OR FEWER EMPLOYEES AND LESS THAN ONE MILLION DOLLARS IN BUSINESS INCOME,
9 THIS PARAGRAPH SHALL BE APPLICABLE FOR TAXABLE YEARS BEGINNING ON OR
10 AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, FURTHER PROVIDED HOWEVER IF
11 SUCH BUSINESS THAT IS A MANUFACTURER HAS FIFTY OR FEWER EMPLOYEES AND
12 LESS THAN FIVE HUNDRED THOUSAND DOLLARS IN BUSINESS INCOME THIS PARA-
13 GRAPH SHALL BE APPLICABLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
14 ARY FIRST, TWO THOUSAND THIRTEEN.
15 S 3. This act shall take effect immediately.
16 PART C
17 Section 1. Paragraph (a) of subdivision 6 of section 18-a of the
18 public service law, as added by section 4 of part NN of chapter 59 of
19 the laws of 2009, is amended to read as follows:
20 (a) Notwithstanding any provision of law to the contrary, and subject
21 to the exceptions provided for in paragraph (b) of this subdivision, for
22 the state fiscal year beginning on April first, two thousand nine and
23 [four] THREE state fiscal years thereafter, a temporary annual assess-
24 ment (hereinafter "temporary state energy and utility service conserva-
25 tion assessment") is hereby imposed on public utility companies (includ-
26 ing for the purposes of this subdivision municipalities other than
27 municipalities as defined in section eighty-nine-l of this chapter),
28 corporations (including for purposes of this subdivision the Long Island
29 power authority), and persons subject to the commission's regulation
30 (hereinafter such public utility companies, corporations, and persons
31 are referred to collectively as the "utility entities") to encourage the
32 conservation of energy and other resources provided through utility
33 entities, to be assessed in the manner provided in this subdivision;
34 provided, however, that such assessment shall not be imposed upon tele-
35 phone corporations as defined in subdivision seventeen of section two of
36 this article.
37 S 2. Section 6 of part NN of chapter 59 of the laws of 2009, amending
38 the public service law relating to financing operations of the depart-
39 ment of public service is amended to read as follows:
40 S 6. This act shall take effect immediately; provided, however, that
41 subdivision 6 of section 18-a of the public service law, as added by
42 section four of this act shall take effect April 1, 2009 and shall
43 expire and be deemed repealed March 31, [2014] 2013; and provided,
44 further, that if section four of this act shall become law after April
45 1, 2009, it shall take effect immediately and shall be deemed to have
46 been in full force and effect on and after April 1, 2009.
47 S 3. Paragraph (g) of subdivision 2 of section 18-a of the public
48 service law, as amended by section 2 of part NN of chapter 59 of the
49 laws of 2009, is amended to read as follows:
50 (g) The total amount which may be charged to any public utility compa-
51 ny under authority of this subdivision for any state fiscal year shall
52 not exceed ONE-THIRD OF one per centum of such public utility company's
53 gross operating revenues derived from intrastate utility operations in
54 the last preceding calendar year, or other twelve month period as deter-
S. 7448 7
1 mined by the chairman; provided, however, that no corporation or person
2 that is subject to the jurisdiction of the commission only with respect
3 to safety, or the power authority of the state of New York, shall be
4 subject to the general assessment provided for under this subdivision.
5 S 4. This act shall take effect immediately and shall be deemed to
6 have been in full force and effect on the same date and in the same
7 manner as part NN of chapter 59 of the laws of 2009 took effect;
8 provided that the amendment to paragraph (a) of subdivision 6 of section
9 18-a of the public service law made by section one of this act shall not
10 affect the expiration and repeal of such subdivision 6 and shall expire
11 and be deemed repealed therewith; and provided further that section
12 three of this act shall take effect April 1, 2013.
13 PART D
14 Section 1. The tax law is amended by adding two new sections 37 and 38
15 to read as follows:
16 S 37. BEER PRODUCTION CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX
17 UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A
18 CREDIT AGAINST SUCH TAX PURSUANT TO THE PROVISIONS REFERENCED IN SUBDI-
19 VISION (B) OF THIS SECTION. THE CREDIT (OR PRO RATA SHARE OF EARNED
20 CREDIT IN THE CASE OF A PARTNERSHIP) FOR EACH GALLON OF BEER PRODUCED IN
21 NEW YORK STATE BY A LICENSED BREWERY OR A LICENSED TENANT BREWER ON OR
22 AFTER APRIL FIRST, TWO THOUSAND TWELVE SHALL BE EQUAL TO FOURTEEN CENTS
23 MULTIPLIED BY THE NUMBER OF GALLONS PRODUCED NOT TO EXCEED SIX MILLION
24 TWO HUNDRED THOUSAND GALLONS. IF THE TAXPAYER IS A PARTNER IN A PARTNER-
25 SHIP OR SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP IMPOSED BY
26 THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE
27 AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH
28 SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED SIX MILLION TWO HUNDRED
29 THOUSAND GALLONS TIMES FOURTEEN CENTS.
30 (B) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
31 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
32 (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 45.
33 (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (UU).
34 S 38. BEER LABEL CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER
35 ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A CREDIT
36 AGAINST SUCH TAX PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION
37 (B) OF THIS SECTION. THE CREDIT (OR PRO RATA SHARE OF EARNED CREDIT IN
38 THE CASE OF A PARTNERSHIP) SHALL EQUAL ONE HUNDRED FIFTY DOLLARS FOR
39 EACH BRAND OR TRADE NAME LABEL REGISTERED WITH THE STATE LIQUOR AUTHORI-
40 TY FOR BEER THAT IS BREWED IN NEW YORK STATE BY THE TAXPAYER IN BATCHES
41 TOTALING FIFTEEN HUNDRED BARRELS OR LESS DURING THE TAXABLE YEAR.
42 (B) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
43 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
44 (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 46.
45 (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (VV).
46 S 2. Section 210 of the tax law is amended by adding two new subdivi-
47 sions 45 and 46 to read as follows:
48 45. BEER PRODUCTION CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO
49 BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER, AGAINST
50 THE TAX IMPOSED BY THIS ARTICLE. THE CREDIT ALLOWED UNDER THIS SUBDIVI-
51 SION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO
52 LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D)
53 OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT
54 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
S. 7448 8
1 SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
2 YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
3 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
4 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
5 SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
6 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
7 46. BEER LABEL CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
8 COMPUTED AS PROVIDED IN SECTION THIRTY-EIGHT OF THIS CHAPTER, AGAINST
9 THE TAX IMPOSED BY THIS ARTICLE. THE CREDIT ALLOWED UNDER THIS SUBDIVI-
10 SION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO
11 LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D)
12 OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT
13 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
14 SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
15 YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
16 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
17 EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
18 SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
19 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
20 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
21 of the tax law is amended by adding two new clauses (xxxiv) and (xxxv)
22 to read as follows:
23 (XXXIV) BEER PRODUCTION TAX CREDIT AMOUNT OF CREDIT UNDER
24 UNDER SUBSECTION (UU) SUBDIVISION FORTY-FIVE OF SECTION
25 TWO HUNDRED TEN
26 (XXXV) BEER LABEL CREDIT UNDER AMOUNT OF CREDIT UNDER
27 UNDER SUBSECTION (VV) SUBDIVISION FORTY-SIX OF
28 SECTION TWO HUNDRED TEN
29 S 4. Section 606 of the tax law is amended by adding two new
30 subsections (uu) and (vv) to read as follows:
31 (UU) BEER PRODUCTION CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO
32 BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER AGAINST
33 THE TAX IMPOSED BY THIS ARTICLE. IF THE AMOUNT OF THE CREDIT ALLOWED
34 UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
35 TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX
36 TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION
37 SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER THAT NO INTER-
38 EST SHALL BE PAID THEREON.
39 (VV) BEER LABEL CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO BE
40 COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER AGAINST THE
41 TAX IMPOSED BY THIS ARTICLE. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
42 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
43 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
44 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
45 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER THAT NO INTEREST
46 SHALL BE PAID THEREON.
47 S 5. This act shall take effect immediately.
48 PART E
49 Section 1. Section 7 of part P of chapter 60 of the laws of 2004,
50 amending the tax law relating to the empire state film production cred-
51 it, is REPEALED.
S. 7448 9
1 S 2. Section 24 of the tax law is amended by adding a new subdivision
2 (e) to read as follows:
3 (E) ALLOCATION OF CREDIT. (1) THE AGGREGATE AMOUNT OF TAX CREDITS
4 ALLOWED UNDER THIS SECTION, SUBDIVISION THIRTY-SIX OF SECTION TWO
5 HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX HUNDRED SIX OF THIS CHAP-
6 TER IN ANY CALENDAR YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS IN TWO
7 THOUSAND FOUR AND TWO THOUSAND FIVE, SIXTY MILLION DOLLARS IN TWO THOU-
8 SAND SIX AND TWO THOUSAND SEVEN, SIXTY-FIVE MILLION DOLLARS IN TWO THOU-
9 SAND EIGHT, SEVENTY-FIVE MILLION DOLLARS IN TWO THOUSAND NINE,
10 EIGHTY-FIVE MILLION DOLLARS IN TWO THOUSAND TEN, NINETY MILLION DOLLARS
11 IN TWO THOUSAND ELEVEN AND TWO THOUSAND TWELVE, AND ONE HUNDRED TEN
12 MILLION DOLLARS IN TWO THOUSAND THIRTEEN. SUCH AGGREGATE AMOUNT OF CRED-
13 ITS SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND
14 TELEVISION DEVELOPMENT AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON
15 THE DATE OF FILING AN APPLICATION FOR ALLOCATION OF FILM PRODUCTION
16 CREDIT WITH SUCH OFFICE. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS
17 APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX
18 CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE
19 TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT
20 YEAR.
21 (2) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED PURSUANT TO THE
22 AUTHORITY OF SUBDIVISION (B) OF SECTION TWELVE HUNDRED ONE-A OF THIS
23 CHAPTER IN ANY CALENDAR YEAR SHALL BE TWELVE MILLION FIVE HUNDRED THOU-
24 SAND DOLLARS IN TWO THOUSAND FOUR AND TWO THOUSAND FIVE AND THIRTY
25 MILLION DOLLARS IN TWO THOUSAND SIX THROUGH TWO THOUSAND ELEVEN. SUCH
26 AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE MAYOR'S OFFICE OF
27 FILM, THEATER AND BROADCASTING AMONG TAXPAYERS IN ORDER OF PRIORITY
28 BASED UPON THE DATE OF FILING AN APPLICATION FOR ALLOCATION OF FILM
29 PRODUCTION CREDIT WITH SUCH OFFICE. IF THE TOTAL AMOUNT OF ALLOCATED
30 CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT
31 OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS
32 SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE
33 SUBSEQUENT YEAR.
34 (3) ADDITIONAL POOL 1 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
35 SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITIONAL
36 THREE HUNDRED FIFTY MILLION DOLLARS IN TWO THOUSAND NINE. THIS ADDI-
37 TIONAL AMOUNT SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION
38 PICTURE AND TELEVISION DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH
39 SUBDIVISION (A) OF THIS SECTION.
40 (4) ADDITIONAL POOL 2 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
41 SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITION FOUR
42 HUNDRED TWENTY MILLION DOLLARS IN TWO THOUSAND TEN, FOUR HUNDRED TWENTY
43 MILLION DOLLARS IN TWO THOUSAND ELEVEN, FOUR HUNDRED TWENTY MILLION
44 DOLLARS IN TWO THOUSAND TWELVE, FOUR HUNDRED TWENTY MILLION DOLLARS IN
45 TWO THOUSAND THIRTEEN AND FOUR HUNDRED TWENTY MILLION DOLLARS IN TWO
46 THOUSAND FOURTEEN PROVIDED HOWEVER, SEVEN MILLION DOLLARS OF THE ANNUAL
47 ALLOCATION SHALL BE AVAILABLE FOR THE EMPIRE STATE FILM POST PRODUCTION
48 CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS CHAPTER. THIS AMOUNT
49 SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELE-
50 VISION DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH SUBDIVISION (A) OF
51 THIS SECTION. IF THE DIRECTOR OF THE GOVERNOR'S OFFICE FOR MOTION
52 PICTURE AND TELEVISION DEVELOPMENT DETERMINES THAT THE AGGREGATE AMOUNT
53 OF TAX CREDITS AVAILABLE FROM ADDITIONAL POOL 2 FOR THE EMPIRE STATE
54 FILM PRODUCTION TAX CREDIT HAVE BEEN PREVIOUSLY ALLOCATED, AND DETER-
55 MINES THAT THE PENDING APPLICATIONS FROM ELIGIBLE APPLICANTS FOR THE
56 POST PRODUCTION TAX CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS CHAP-
S. 7448 10
1 TER IS INSUFFICIENT TO UTILIZE THE BALANCE OF UNALLOCATED POST
2 PRODUCTION TAX CREDITS FROM SUCH POOL, THE REMAINDER, AFTER SUCH PENDING
3 APPLICATIONS ARE CONSIDERED, SHALL BE MADE AVAILABLE FOR ALLOCATION IN
4 THE EMPIRE STATE FILM TAX CREDIT PURSUANT TO THIS SECTION, SUBDIVISION
5 THIRTY-SIX OF SECTION TWO HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX
6 HUNDRED SIX OF THIS CHAPTER. THE GOVERNOR'S OFFICE FOR MOTION PICTURE
7 AND TELEVISION DEVELOPMENT MUST NOTIFY TAXPAYERS OF THEIR ALLOCATION
8 YEAR AND INCLUDE THE ALLOCATION YEAR ON THE CERTIFICATE OF TAX CREDIT.
9 TAXPAYERS ELIGIBLE TO CLAIM A CREDIT MUST REPORT THE ALLOCATION YEAR
10 DIRECTLY ON THEIR EMPIRE STATE FILM PRODUCTION CREDIT TAX FORM FOR EACH
11 YEAR A CREDIT IS CLAIMED AND INCLUDE A COPY OF THE CERTIFICATE WITH
12 THEIR TAX RETURN. IN THE CASE OF A QUALIFIED FILM THAT RECEIVES FUNDS
13 FROM ADDITIONAL POOL 2, NO EMPIRE STATE FILM PRODUCTION CREDIT SHALL BE
14 CLAIMED BEFORE THE LATER OF THE TAXABLE YEAR THE PRODUCTION OF THE QUAL-
15 IFIED FILM IS COMPLETE, OR THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE
16 ALLOCATION YEAR FOR WHICH THE FILM HAS BEEN ALLOCATED CREDIT BY THE
17 GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT.
18 S 3. Paragraph 2 of subdivision (a) and subdivision (c) of section 31
19 of the tax law, as added by section 12 of part Q of chapter 57 of the
20 laws of 2010, are amended to read as follows:
21 (2) The amount of the credit shall be the product (or pro rata share
22 of the product, in the case of a member of a partnership) of [ten] THIR-
23 TY percent and the qualified post production costs paid in the
24 production of a qualified film at a qualified post production facility.
25 (c) Notwithstanding any other provision of law to the contrary, the
26 aggregate amount of tax credits available under this section shall not
27 exceed the amounts allowed pursuant to PARAGRAPH FOUR OF subdivision (e)
28 of section [seven of part P of chapter sixty of the laws of two thousand
29 four] TWENTY-FOUR OF THIS ARTICLE and shall be allocated in the same
30 manner as provided for in PARAGRAPH ONE OF subdivision [(a)] (E) of
31 section [seven of part P of chapter sixty of the laws of two thousand
32 four] TWENTY-FOUR OF THIS ARTICLE.
33 S 4. This act shall take effect immediately.
34 PART F
35 Section 1. The general municipal law is amended by adding a new
36 section 959-c to read as follows:
37 S 959-C. CERTIFIED STARTUP BUSINESS ENTERPRISE. (A) CERTIFICATION. (I)
38 THE COMMISSIONER SHALL APPROVE APPLICATIONS FOR QUALIFICATION OF A BUSI-
39 NESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE. AS A CONDI-
40 TION FOR APPROVAL OF SUCH APPLICATION, THE COMMISSIONER IS AUTHORIZED TO
41 SPECIFY CERTAIN REQUIREMENTS TO BE SATISFIED AS A CONDITION FOR APPROVAL
42 OF A BUSINESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE AS
43 THE COMMISSIONER DEEMS NECESSARY TO ENSURE THE QUALIFYING ANGEL INVEST-
44 MENT WILL MAKE A SUBSTANTIAL CONTRIBUTION TO THE ECONOMIC DEVELOPMENT OF
45 THIS STATE, INCLUDING THE USE OF A SYSTEM OF EVALUATION OF VARIOUS
46 APPLICANT BUSINESS ENTERPRISES IN A COMPETITIVE FASHION.
47 (II) WITH RESPECT TO AN APPROVED APPLICATION FOR QUALIFICATION OF A
48 BUSINESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE, THE
49 COMMISSIONER SHALL ISSUE TO SUCH BUSINESS ENTERPRISE A CERTIFICATE OF
50 QUALIFICATION AS A CERTIFIED STARTUP BUSINESS ENTERPRISE SETTING FORTH
51 THE EFFECTIVE DATE OF THE CERTIFICATION AND THE AMOUNT OF QUALIFYING
52 ANGEL INVESTMENT AWARDED TO SUCH BUSINESS ENTERPRISE, WHICH AMOUNT SHALL
53 BE NO LESS THAN ONE HUNDRED THOUSAND DOLLARS AND NO MORE THAN ONE
54 MILLION DOLLARS.
S. 7448 11
1 (III) FOR THE PERIOD JULY FIRST, TWO THOUSAND TWELVE THROUGH JUNE
2 THIRTIETH, TWO THOUSAND THIRTEEN, THE COMMISSIONER MAY CERTIFY UP TO
3 SEVEN MILLION DOLLARS IN QUALIFYING ANGEL INVESTMENT. FOR THE PERIOD
4 JULY FIRST, TWO THOUSAND THIRTEEN THROUGH JUNE THIRTIETH, TWO THOUSAND
5 FOURTEEN, THE COMMISSIONER MAY CERTIFY UP TO SEVEN MILLION DOLLARS IN
6 QUALIFYING ANGEL INVESTMENT. FOR THE PERIOD JULY FIRST, TWO THOUSAND
7 FOURTEEN THROUGH JUNE THIRTIETH, TWO THOUSAND FIFTEEN, THE COMMISSIONER
8 MAY CERTIFY UP TO SEVEN MILLION DOLLARS IN QUALIFYING ANGEL INVESTMENT.
9 (B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
10 HAVE THE FOLLOWING MEANINGS:
11 (I) "CERTIFIED STARTUP BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS
12 ENTERPRISE LOCATED IN NEW YORK STATE:
13 (1) WITH LESS THAN FIVE MILLION DOLLARS IN ANNUAL REVENUES;
14 (2) WHOSE PRIMARY ACTIVITY CONSISTS OF A QUALIFYING TECHNOLOGY OR
15 INNOVATION ACTIVITY; AND
16 (3) THAT HAS BEEN CERTIFIED AS A CERTIFIED STARTUP BUSINESS ENTERPRISE
17 BY THE COMMISSIONER.
18 (II) "QUALIFYING TECHNOLOGY OR INNOVATION ACTIVITY" SHALL MEAN:
19 (1) BIOTECHNOLOGIES, WHICH SHALL BE DEFINED AS TECHNOLOGIES INVOLVING
20 THE SCIENTIFIC MANIPULATION OF LIVING ORGANISMS, ESPECIALLY AT THE
21 MOLECULAR AND/OR THE SUB-MOLECULAR GENETIC LEVEL, TO PRODUCE PRODUCTS
22 CONDUCIVE TO IMPROVING THE LIVES AND HEALTH OF PLANTS, ANIMALS, AND
23 HUMANS; AND THE ASSOCIATED SCIENTIFIC RESEARCH, PHARMACOLOGICAL, MECHAN-
24 ICAL, AND COMPUTATIONAL APPLICATIONS AND SERVICES CONNECTED WITH THESE
25 IMPROVEMENTS;
26 (2) INFORMATION AND COMMUNICATION TECHNOLOGIES, EQUIPMENT AND SYSTEMS
27 THAT INVOLVE ADVANCED COMPUTER SOFTWARE AND HARDWARE, VISUALIZATION
28 TECHNOLOGIES, AND HUMAN INTERFACE TECHNOLOGIES;
29 (3) ADVANCED MATERIALS AND PROCESSING TECHNOLOGIES THAT INVOLVE THE
30 DEVELOPMENT, MODIFICATION, OR IMPROVEMENT OF ONE OR MORE MATERIALS OR
31 METHODS TO PRODUCE DEVICES AND STRUCTURES WITH IMPROVED PERFORMANCE
32 CHARACTERISTICS OR SPECIAL FUNCTIONAL ATTRIBUTES, OR TO ACTIVATE, SPEED
33 UP, OR OTHERWISE ALTER CHEMICAL, BIOCHEMICAL, OR MEDICAL PROCESSES;
34 (4) ELECTRONIC AND PHOTONIC DEVICES AND COMPONENTS FOR USE IN PRODUC-
35 ING ELECTRONIC, OPTOELECTRONIC, MECHANICAL EQUIPMENT AND PRODUCTS OF
36 ELECTRONIC DISTRIBUTION WITH INTERACTIVE MEDIA CONTENT;
37 (5) ENERGY EFFICIENCY, RENEWABLE ENERGY AND ENVIRONMENTAL TECHNOLO-
38 GIES, PRODUCTS, DEVICES AND SERVICES; OR
39 (6) SMALL SCALE SYSTEMS INTEGRATION AND PACKAGING.
40 (III) "QUALIFYING ANGEL INVESTMENT" SHALL MEAN A CONTRIBUTION TO THE
41 CAPITAL OF A CERTIFIED STARTUP BUSINESS ENTERPRISE, PROVIDED THAT SUCH
42 CONTRIBUTION TO CAPITAL IS MADE WITHIN TWELVE MONTHS AFTER THE EFFECTIVE
43 DATE OF THE CERTIFIED TECHNOLOGY VENTURE'S CERTIFICATE OF QUALIFICATION
44 AS A CERTIFIED TECHNOLOGY VENTURE AND SUCH CONTRIBUTION IS APPLIED BY
45 THE CERTIFIED STARTUP BUSINESS ENTERPRISE AGAINST ITS ALLOCATION OF
46 QUALIFYING ANGEL INVESTMENT. TOGETHER WITH ALL OTHER QUALIFYING ANGEL
47 INVESTMENTS MADE TO A SINGLE CERTIFIED STARTUP BUSINESS ENTERPRISE, THE
48 TOTAL QUALIFYING ANGEL INVESTMENT MAY NOT EXCEED ONE MILLION DOLLARS.
49 NOTHING HEREIN SHALL PROHIBIT A PERSON MAKING A QUALIFYING ANGEL INVEST-
50 MENT FROM MAKING ADDITIONAL CONTRIBUTIONS TO THE CAPITAL OF THE CERTI-
51 FIED STARTUP BUSINESS ENTERPRISE OR MAKING LOANS TO OR OTHER INVESTMENTS
52 IN THE CERTIFIED STARTUP BUSINESS ENTERPRISE, PROVIDED, HOWEVER, THAT
53 SUCH OTHER CONTRIBUTIONS, LOANS AND INVESTMENTS SHALL NOT BE TREATED AS
54 QUALIFYING ANGEL INVESTMENTS.
55 S 2. Section 210 of the tax law is amended by adding a new subdivision
56 12-H to read as follows:
S. 7448 12
1 12-H. ANGEL TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
2 MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
3 (III) OF SUBDIVISION (B) OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
4 GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO THIRTY-FIVE
5 PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
6 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
7 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
8 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
9 SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT
10 ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
11 SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
12 YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
13 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT-
14 Y-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION
15 (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING,
16 NO INTEREST SHALL BE PAID THEREON.
17 S 3. Section 606 of the tax law is amended by adding a new subdivision
18 (uu) to read as follows:
19 (UU) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
20 MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
21 (III) OF SUBDIVISION (B) OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
22 GENERAL MUNICIPAL LAW, OR THAT IS A MEMBER OF A PARTNERSHIP THAT HAS
23 MADE A QUALIFYING ANGEL INVESTMENT, SHALL BE ALLOWED A CREDIT EQUAL TO
24 THIRTY-FIVE PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT
25 OR, IN THE CASE OF A TAXPAYER WHO IS A MEMBER OF A PARTNERSHIP THAT HAS
26 MADE A QUALIFYING ANGEL INVESTMENT, A PORTION OF SUCH QUALIFYING ANGEL
27 INVESTMENT EQUAL TO THE PORTION OF ITEMS OF INCOME, GAIN, LOSS AND
28 DEDUCTION ASSOCIATED WITH THE QUALIFYING ANGEL INVESTMENT PROPERLY ALLO-
29 CABLE TO SUCH TAXPAYER UNDER SECTION 704 OF THE INTERNAL REVENUE CODE
30 FOR THE TAXABLE YEAR.
31 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
32 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
33 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
34 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
35 HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
36 SHALL BE PAID THEREON.
37 S 4. Section 1456 of the tax law is amended by adding a new subdivi-
38 sion (z) to read as follows:
39 (Z) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
40 MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
41 (III) OF SUBDIVISION (B) OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
42 GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO THIRTY-FIVE
43 PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
44 (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
45 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
46 THAN THE MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED
47 FIFTY-FIVE OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED
48 UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
49 AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
50 YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
51 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT-
52 Y-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION
53 (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING,
54 NO INTEREST SHALL BE PAID THEREON.
55 S 5. Section 1511 of the tax law is amended by adding a new subdivi-
56 sion (cc) to read as follows:
S. 7448 13
1 (CC) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
2 MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
3 (III) OF SUBDIVISION (B) OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
4 GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO THIRTY-FIVE
5 PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
6 (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
7 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
8 THAN THE MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF
9 SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE OR BY SECTION FIFTEEN
10 HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE
11 AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
12 REDUCES THE TAX TO SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT
13 DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF
14 TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
15 SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE
16 PROVISIONS OF SUBSECTION (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS
17 CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
18 S 6. This act shall take effect immediately.
19 S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
20 sion, section or part of this act shall be adjudged by any court of
21 competent jurisdiction to be invalid, such judgment shall not affect,
22 impair, or invalidate the remainder thereof, but shall be confined in
23 its operation to the clause, sentence, paragraph, subdivision, section
24 or part thereof directly involved in the controversy in which such judg-
25 ment shall have been rendered. It is hereby declared to be the intent of
26 the legislature that this act would have been enacted even if such
27 invalid provisions had not been included herein.
28 S 4. This act shall take effect immediately provided, however, that
29 the applicable effective date of Parts A through F of this act shall be
30 as specifically set forth in the last section of such Parts.
