Bill Text: NY S07702 | 2019-2020 | General Assembly | Introduced
Bill Title: Creates a small business electric energy tax credit; specifies that the amount of credit shall be equal to the product of $0.02 per kilowatt hour; sets limit of no more than 19 full-time employees in New York state; determines that if the business is located at the primary residence of a sole proprietor, the business is not eligible for the tax credit.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-02-10 - REFERRED TO BUDGET AND REVENUE [S07702 Detail]
Download: New_York-2019-S07702-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7702 IN SENATE February 10, 2020 ___________ Introduced by Sens. KENNEDY, KAPLAN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Reven- ue AN ACT to amend the tax law, in relation to a small business electric energy tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 55 to read as follows: 3 55. Small business electric energy tax credit. (a) A taxpayer that is 4 eligible under the limitations specified in paragraph (b) of this subdi- 5 vision shall be allowed a credit against the tax imposed by this arti- 6 cle. The amount of the credit shall be equal to the product of two 7 cents per kilowatt hour for all business related electricity usage at 8 the taxpayer's primary business location. 9 (b) An eligible taxpayer shall (i) have no more than nineteen full 10 time equivalent employees in New York state, including any related 11 members or affiliates, (ii) not be a sole-proprietorship if such sole- 12 proprietor's primary business location is sited in or part of such sole- 13 proprietor's place of residence, (iii) not be certified pursuant to 14 article eighteen-B of the general municipal law, and (iv) not be receiv- 15 ing any allocation or award pursuant to any program authorized under 16 article six of the economic development law. 17 (c) (i) The term "business related electricity usage" shall refer to 18 electrical power usage used to further the economic activity of the 19 taxpayer at the primary business location that is clearly delimited from 20 any shared electrical power usage cost. (ii) The term "primary business 21 location" shall mean the physical site of the taxpayer within the state 22 of New York where the majority of the taxpayer's economic activity is 23 generated or coordinated through. (iii) The term "related members" 24 shall have the same meaning as set forth in clauses (A) and (B) of 25 subparagraph one of paragraph (o) of subdivision nine of section two 26 hundred eight of this article, and the term "affiliates" shall mean 27 those corporations that are members of the same affiliated group (as EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00570-04-0S. 7702 2 1 defined in section fifteen hundred four of the internal revenue code) as 2 the taxpayer. 3 (d) The eligible usage level shall be the total kilowatt hour usage of 4 the taxpayer for business related electricity usage during the taxpay- 5 er's taxable year as verified through bills or other form of usage chart 6 provided to the taxpayer by the taxpayer's electricity power service 7 provider. 8 (e) In no event shall the credit provided for in this subdivision be 9 allowed in an amount which will reduce the tax payable to less than the 10 fixed dollar minimum amount prescribed in paragraph (d) of subdivision 11 one of section two hundred ten of this article. However, if the amount 12 of credit allowed under this subdivision for any taxable year reduces 13 the tax to such amount, any amount of credit not deductible in such 14 taxable year shall be treated as an overpayment of tax to be credited or 15 refunded in accordance with the provisions of section ten hundred eight- 16 y-six of this chapter. Provided, however, the provisions of subsection 17 (c) of section ten hundred eighty-eight of this chapter notwithstanding, 18 no interest shall be paid thereon. 19 § 2. Section 606 of the tax law is amended by adding a new subsection 20 (kkk) to read as follows: 21 (kkk) Small business electric energy tax credit. (1) A taxpayer that 22 is eligible under the limitations specified in paragraph two of this 23 subsection shall be allowed a credit against the tax imposed by this 24 article. The amount of the credit shall be equal to the product (or pro 25 rata share of the product in the case of a partnership) of two cents per 26 kilowatt hour for all business related electricity usage at the taxpay- 27 er's primary business location. 28 (2) An eligible taxpayer shall (i) have no more than nineteen full 29 time equivalent employees in New York state, including any related 30 members or affiliates, (ii) shall not be a sole-proprietorship if such 31 sole-proprietor's primary business location is sited in or part of such 32 sole-proprietor's place of residence, (iii) not be certified pursuant to 33 article eighteen-B of the general municipal law, and (iv) not be receiv- 34 ing any allocation or award pursuant to any program authorized under 35 article six of the economic development law. 36 (3) (i) The term "business related electricity usage" shall refer to 37 electrical power usage used to further the economic activity of the 38 taxpayer at the primary business location that is clearly delimited from 39 any shared electrical power usage cost. (ii) The term "primary business 40 location" shall mean the physical site of the taxpayer within the state 41 of New York where the majority of the taxpayer's economic activity is 42 generated or coordinated through. (iii) The term "related members" shall 43 have the same meaning as set forth in clauses (A) and (B) of subpara- 44 graph one of paragraph (o) of subdivision nine of section two hundred 45 eight of this chapter, and the term "affiliates" shall mean those corpo- 46 rations that are members of the same affiliated group (as defined in 47 section fifteen hundred four of the internal revenue code) as the 48 taxpayer. 49 (4) The eligible usage level shall be the total kilowatt hour usage of 50 the taxpayer for business related electricity usage during the taxpay- 51 er's taxable year as verified through bills or other form of usage chart 52 provided to the taxpayer by the taxpayer's electricity power service 53 provider. 54 (5) If the amount of credit allowed under this subsection for any 55 taxable year shall exceed the taxpayer's tax for such year, the excess 56 shall be treated as an overpayment of tax to be credited or refunded inS. 7702 3 1 accordance with the provisions of section six hundred eighty-six of this 2 article, provided, however, that no interest shall be paid thereon. 3 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 4 of the tax law is amended by adding a new clause (xlvi) to read as 5 follows: 6 (xlvi) Small business electric Qualifying electricity usage 7 energy tax credit under subdivision fifty-five 8 under subsection (kkk) of section two hundred ten-B 9 § 4. This act shall take effect immediately and shall apply to taxable 10 years beginning on or after January 1, 2019.
