Bill Text: NY S07508 | 2023-2024 | General Assembly | Introduced

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Bill Title: Permits certain tax deductions related to the sale, production, or distribution of cannabis products.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-11-17 - SIGNED CHAP.671 [S07508 Detail]

Download: New_York-2023-S07508-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7508

                               2023-2024 Regular Sessions

                    IN SENATE

                                      June 2, 2023
                                       ___________

        Introduced  by Sen. SEPULVEDA -- (at request of the NYC Finance) -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee on Rules

        AN  ACT  to  amend  the  administrative code of the city of New York, in
          relation to permitting certain tax deductions  related  to  the  sale,
          production, or distribution of cannabis products

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision (c) of section  11-506  of  the  administrative
     2  code  of the city of New York is amended by adding a new paragraph 13 to
     3  read as follows:
     4    (13) For businesses authorized pursuant to the cannabis law to  engage
     5  in  the  sale,  production,  or  distribution  of (A) adult-use cannabis
     6  products, as defined in article twenty-C of the tax law, or (B)  medical
     7  cannabis, as defined in section three of the cannabis law, the amount of
     8  any  federal deduction disallowed pursuant to section two hundred eight-
     9  y-E of the internal revenue code related to  the  sale,  production,  or
    10  distribution  of such adult-use cannabis products or such medical canna-
    11  bis not used as the basis for any other  tax  deduction,  exemption,  or
    12  credit and not otherwise required to be added back by subdivision (b) of
    13  this section in computing entire net income.
    14    §  2. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
    15  trative code of the city of New York is amended by adding a new subpara-
    16  graph 17 to read as follows:
    17    (17) for taxpayers authorized pursuant to the cannabis law  to  engage
    18  in  the  sale,  production,  or  distribution  of (i) adult-use cannabis
    19  products, as defined in article twenty-C of the tax law, or (ii) medical
    20  cannabis, as defined in section three of the cannabis law, the amount of
    21  any federal deduction disallowed pursuant to section two hundred  eight-
    22  y-E  of  the  internal  revenue code related to the sale, production, or
    23  distribution of such adult-use cannabis products or such medical  canna-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11715-01-3
        S. 7508                             2

     1  bis  not  used  as  the basis for any other tax deduction, exemption, or
     2  credit and not otherwise required to be added back by paragraph  (b)  of
     3  this subdivision in computing entire net income.
     4    §  3. Paragraph (a) of subdivision 8 of section 11-652 of the adminis-
     5  trative code of the city of New York is amended by adding a new subpara-
     6  graph 18 to read as follows:
     7    (18) for taxpayers authorized pursuant to the cannabis law  to  engage
     8  in  the  sale,  production,  or  distribution  of (i) adult-use cannabis
     9  products, as defined in article twenty-six-C of the  tax  law,  or  (ii)
    10  medical  cannabis,  as defined in section three of the cannabis law, the
    11  amount of any federal  deduction  disallowed  pursuant  to  section  two
    12  hundred  eighty-E  of  the  internal  revenue  code related to the sale,
    13  production, or distribution of such adult-use cannabis products or  such
    14  medical  cannabis  not  used  as  the basis for any other tax deduction,
    15  exemption, or credit and not otherwise required  to  be  added  back  by
    16  paragraph (b) of this subdivision in computing entire net income.
    17    §  4.  This  act  shall take effect immediately and shall be deemed to
    18  have been in full force and effect on and after January  1,  2022.  This
    19  act shall apply to tax years beginning on or after January 1, 2022.