Bill Text: NY S07650 | 2011-2012 | General Assembly | Introduced
Bill Title: Establishes a small business tax credit.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Engrossed - Dead) 2012-06-18 - referred to ways and means [S07650 Detail]
Download: New_York-2011-S07650-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 7650 I N S E N A T E June 11, 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 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 (uu) to read as follows: 3 (UU) SMALL BUSINESS TAX CREDIT. (1) GENERAL. A QUALIFIED TAXPAYER 4 SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL 5 TO SIX AND SIXTY-FIVE HUNDREDTHS PERCENT OF QUALIFIED BUSINESS INCOME. 6 (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM: 7 (A) "QUALIFIED TAXPAYER" SHALL MEAN A SOLE PROPRIETOR WHO EMPLOYS ONE 8 OR MORE PERSONS AND WHO HAS NET BUSINESS INCOME OF LESS THAN TWO HUNDRED 9 FIFTY THOUSAND DOLLARS. 10 (B) "QUALIFIED BUSINESS INCOME" SHALL MEAN TEN PERCENT OF THE BUSINESS 11 INCOME OF THE TAXPAYER AS DEFINED IN THE LAWS OF THE UNITED STATES. 12 (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY 13 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS 14 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN 15 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS 16 ARTICLE, PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON. 17 S 2. Subparagraph (iv) of paragraph (a) of subdivision 1 of section 18 210 of the tax law, as amended by section 2 of part N of chapter 60 of 19 the laws of 2007, is amended to read as follows: 20 (iv) for taxable years beginning on or after January first, two thou- 21 sand seven AND ENDING BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, if 22 the entire net income base is not more than two hundred ninety thousand 23 dollars the amount shall be six and one-half percent of the entire net 24 income base; if the entire net income base is more than two hundred 25 ninety thousand dollars but not over three hundred ninety thousand 26 dollars the amount shall be the sum of (1) eighteen thousand eight 27 hundred fifty dollars, (2) seven and one-tenth percent of the excess of 28 the entire net income base over two hundred ninety thousand dollars but EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14994-06-2 S. 7650 2 1 not over three hundred ninety thousand dollars and (3) four and thirty- 2 five hundredths percent of the excess of the entire net income base over 3 three hundred fifty thousand dollars but not over three hundred ninety 4 thousand dollars; 5 S 3. Paragraph (a) of subdivision 1 of section 210 of the tax law is 6 amended by adding a new subparagraph (vii) to read as follows: 7 (VII) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- 8 SAND THIRTEEN, IF THE ENTIRE NET INCOME BASE IS NOT MORE THAN TWO 9 HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FIVE AND TWO-TENTHS 10 PERCENT OF THE ENTIRE NET INCOME BASE; IF THE ENTIRE NET INCOME BASE IS 11 MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED 12 NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) FIFTEEN THOU- 13 SAND EIGHTY DOLLARS, (2) NINE AND SEVENTY-FIVE ONE-HUNDREDTHS PERCENT OF 14 THE EXCESS OF THE ENTIRE NET INCOME BASE OVER TWO HUNDRED NINETY THOU- 15 SAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND (3) 16 SEVEN AND ONE-TENTHS PERCENT OF THE EXCESS OF THE ENTIRE NET INCOME BASE 17 OVER THREE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED 18 NINETY THOUSAND DOLLARS; 19 S 4. The opening paragraph of subparagraph 4 of paragraph (d) of 20 subdivision 1 of section 210 of the tax law, as added by section 2 of 21 part AA-1 of chapter 57 of the laws of 2008, is amended to read as 22 follows: 23 Notwithstanding subparagraphs one and two of this paragraph, for taxa- 24 ble years beginning on or after January first, two thousand eight AND 25 ENDING BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, the amount 26 prescribed by this paragraph for New York S corporations will be deter- 27 mined in accordance with the following table: 28 S 5. Subparagraph 5 of paragraph (d) of subdivision 1 of section 210 29 of the tax law is renumbered subparagraph 6. 30 S 6. Paragraph (d) of subdivision 1 of section 210 of the tax law is 31 amended by adding a new subparagraph 5 to read as follows: 32 (5) NOTWITHSTANDING SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH, FOR 33 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIR- 34 TEEN, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH FOR NEW YORK S CORPO- 35 RATIONS WILL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE: 36 IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS: 37 NOT MORE THAN $100,000 $1 38 MORE THAN $100,000 BUT NOT OVER $250,000 $1 39 MORE THAN $250,000 BUT NOT OVER $500,000 $1 40 MORE THAN $500,000 BUT NOT OVER $1,000,000 $1 41 MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,000 42 MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,000 43 OVER $25,000,000 $4,500 44 OTHERWISE THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED IN 45 ACCORDANCE WITH THE FOLLOWING TABLE: 46 IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS: 47 NOT MORE THAN $100,000 $1 48 MORE THAN $100,000 BUT NOT OVER $250,000 $1 49 MORE THAN $250,000 BUT NOT OVER $500,000 $1 50 MORE THAN $500,000 BUT NOT OVER $1,000,000 $1 51 MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,500 52 MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,500 53 OVER $25,000,000 $5,000 54 FOR PURPOSES OF THIS PARAGRAPH, NEW YORK RECEIPTS ARE THE RECEIPTS 55 COMPUTED IN ACCORDANCE WITH SUBPARAGRAPH TWO OF PARAGRAPH (A) OF SUBDI- 56 VISION THREE OF THIS SECTION FOR THE TAXABLE YEAR. S. 7650 3 1 S 7. Subparagraph 6 of paragraph (d) of subdivision 1 of section 210 2 of the tax law, as added by section 3 of part C of chapter 56 of the 3 laws of 2011 and as renumbered by section five of this act, is amended 4 to read as follows: 5 (6) For taxable years beginning on or after January first, two thou- 6 sand twelve and before January first, two thousand fifteen, the amounts 7 prescribed in subparagraphs one and [four] FIVE of this paragraph as the 8 fixed dollar minimum tax for an eligible qualified New York manufacturer 9 shall be one-half of the amounts stated in those subparagraphs. For 10 purposes of this subparagraph, the term "eligible qualified New York 11 manufacturer" shall have the same meaning as in subparagraph (vi) of 12 paragraph (a) of this subdivision. 13 S 8. This act shall take effect immediately; provided that sections 14 one and seven of this act shall apply to taxable years beginning on or 15 after January 1, 2013.