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A06555 Summary:

BILL NOA06555
 
SAME ASNo Same As
 
SPONSORKolb
 
COSPNSROaks, Walter, Montesano, Palmesano, Lopez, Raia, Hawley, Barclay, Kearns, Finch, DiPietro
 
MLTSPNSRBlankenbush, McLaughlin
 
Amd 210-B, 606, 210 & 1511, Tax L; add 959-c, Gen Muni L
 
Enacts Invest-NY by implementing various tax benefits for businesses.
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A06555 Actions:

BILL NOA06555
 
03/09/2017referred to ways and means
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A06555 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6555
 
SPONSOR: Kolb (MS)
  TITLE OF BILL: An act to amend the tax law, in relation to expanding eligibility for the investment tax credit to all businesses in the state (Part A); to amend the tax law, in relation to a qualified emerging technology tax credit (Part B); to amend the general municipal law, in relation to certified startup business enterprises; and to amend the tax law, in relation to the angel tax credit (Part C)   PURPOSE OR GENERAL IDEA OF BILL: This bill enacts "Invest-NY".   SUMMARY OF SPECIFIC PROVISIONS: Section 1 contains the title "Invest-NY" and includes parts A - C. Part A. This part amends the New York State Tax Law to expand the eligi- bility for the Investment Tax Credit to all businesses that make new investments in property and equipment in New York. Part B. Sections 1 through 4 amend the New York State Tax Law by elimi- nating the business income tax base for Qualified Emerging Technology Companies, beginning in 2017. This would treat Qualified NY manufactur- ers and QETC's the same. Part C. This part creates the Angel Tax Credit, which provides incen- tives for investment in targeted industries and technologies. In addi- tion, this bill authorizes the Commissioner of Economic Development to certify Startup Business Enterprises (SBE) and allocates $20 million in total Angel Tax Credits each year. The minimum investment is $100,000 and is capped at $2 million in qualifying contributions to capital; and no single certified SBE will be eligible for more than $2 million in qualifying contributions. The angel investor is eligible to claim a refundable credit equal to 50 percent of such qualified investment against Article 9-A, Article 22, and Article 33 franchise taxes. Section 2 contains the severability clause. Section 3 contains the effective date.   JUSTIFICATION: While broad based tax relief is desperately needed across the State, this does not mean that we should not also promote smaller scale but more immediate relief for the most vulnerable businesses in New York. We must remove obstacles from our State's entrepreneurs and help them to bring their ideas to life. This bill would encourage investment in busi- nesses by expanding the New York State Investment Tax Credit to all businesses (Part A), reducing the business income tax rate for QETC'c (Part B), and creating the Angel Tax Credit, which would encourage investment in businesses that may not otherwise have access to capital by minimizing the financial risk to the investor (Part C).   PRIOR LEGISLATIVE HISTORY: A.5215 (2015-16), Held in Ways & Means; A.4570 (2013-14), Held in Ways & Means; A.10353 (2012), Referred to Ways & Means.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately.
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A06555 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6555
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 9, 2017
                                       ___________
 
        Introduced  by M. of A. KOLB, OAKS, WALTER, MONTESANO, PALMESANO, LOPEZ,
          RAIA, HAWLEY, BARCLAY, KEARNS, FINCH, DiPIETRO --  Multi-Sponsored  by
          --  M. of A.  BLANKENBUSH, McLAUGHLIN -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the tax law, in relation to  expanding  eligibility  for
          the  investment tax credit to all businesses in the state (Part A); to
          amend the tax law, in relation to a qualified emerging technology  tax
          credit  (Part  B);  to amend the general municipal law, in relation to
          certified startup business enterprises; and to amend the tax  law,  in
          relation to the angel tax credit (Part C)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law components of legislation relating
     2  to "Invest-NY".  Each component is wholly contained within a Part  iden-
     3  tified  as  Parts  A  through  C. The effective date for each particular
     4  provision contained within such Part is set forth in the last section of
     5  such Part. Any provision in any section contained within a Part, includ-
     6  ing the effective date of the Part, which makes a reference to a section
     7  "of this act", when used in connection with that  particular  component,
     8  shall  be  deemed  to mean and refer to the corresponding section of the
     9  Part in which it is found. Section three of  this  act  sets  forth  the
    10  general effective date of this act.
 
    11                                   PART A
 
    12    Section  1.    Subparagraph  (i)  of paragraph (b) of subdivision 1 of
    13  section 210-B of the tax law, as amended by section  31  of  part  T  of
    14  chapter 59 of the laws of 2015, is amended to read as follows:
    15    (i)  A  credit shall be allowed under this subdivision with respect to
    16  tangible personal property and other tangible property, including build-
    17  ings and structural components  of  buildings,  which  are:  depreciable
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08085-01-7

        A. 6555                             2
 
     1  pursuant  to  section  one  hundred  sixty-seven of the internal revenue
     2  code, have a useful life of four years or more, are acquired by purchase
     3  as defined in section one  hundred  seventy-nine  (d)  of  the  internal
     4  revenue code, have a situs in this state and are (A) principally used by
     5  the  taxpayer  in  the production of goods by manufacturing, processing,
     6  assembling, refining, mining, extracting, farming,  agriculture,  horti-
     7  culture, floriculture, viticulture or commercial fishing, (B) industrial
     8  waste  treatment facilities or air pollution control facilities, used in
     9  the taxpayer's trade or business, (C) research and development property,
    10  or (D) principally used in the ordinary course of the  taxpayer's  trade
    11  or  business  as  a  broker or dealer in connection with the purchase or
    12  sale (which shall include but not be limited to the  issuance,  entering
    13  into,  assumption,  offset,  assignment,  termination,  or  transfer) of
    14  stocks, bonds or other securities as defined  in  section  four  hundred
    15  seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
    16  defined in section four hundred seventy-five (e) of the Internal Revenue
    17  Code, (E) principally used in the  ordinary  course  of  the  taxpayer's
    18  trade  or business of providing investment advisory services for a regu-
    19  lated investment company as defined in section eight  hundred  fifty-one
    20  of the Internal Revenue Code, or lending, loan arrangement or loan orig-
    21  ination  services  to  customers in connection with the purchase or sale
    22  (which shall include but not be limited to the issuance, entering  into,
    23  assumption,  offset, assignment, termination, or transfer) of securities
    24  as defined in section four hundred seventy-five (c)(2) of  the  Internal
    25  Revenue Code, (F) principally used in the ordinary course of the taxpay-
    26  er's  business  as  an  exchange  registered  as  a  national securities
    27  exchange within the meaning of sections 3(a)(1) and 6(a) of the  Securi-
    28  ties Exchange Act of 1934 or a board of trade as defined in subparagraph
    29  one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
    30  fit  corporation law or as an entity that is wholly owned by one or more
    31  such national securities exchanges or boards of trade and that  provides
    32  automation or technical services thereto, [or] (G) principally used as a
    33  qualified  film  production facility including qualified film production
    34  facilities having a situs in an empire zone designated as such  pursuant
    35  to  article  eighteen-B of the general municipal law, where the taxpayer
    36  is providing three or more services to  any  qualified  film  production
    37  company using the facility, including such services as a studio lighting
    38  grid,  lighting  and grip equipment, multi-line phone service, broadband
    39  information technology access,  industrial  scale  electrical  capacity,
    40  food  services,  security  services,  and  heating,  ventilation and air
    41  conditioning, or (H) principally used in  the  ordinary  course  of  any
    42  trade or business of the taxpayer not otherwise described in clauses (A)
    43  through  (G) of this subparagraph.  For purposes of clauses (D), (E) and
    44  (F) of this subparagraph, property purchased by  a  taxpayer  affiliated
    45  with a regulated broker, dealer, registered investment advisor, national
    46  securities  exchange  or  board of trade, is allowed a credit under this
    47  subdivision if the property is used by its affiliated regulated  broker,
    48  dealer,  registered  investment advisor, national securities exchange or
    49  board of trade in accordance with  this  subdivision.  For  purposes  of
    50  determining  if the property is principally used in qualifying uses, the
    51  uses by the taxpayer described in clauses (D) and (E) of  this  subpara-
    52  graph  may  be  aggregated.  In  addition, the uses by the taxpayer, its
    53  affiliated regulated broker, dealer and  registered  investment  advisor
    54  under  either  or  both  of  those  clauses may be aggregated. Provided,
    55  however, a taxpayer shall not be allowed the credit provided by  clauses
    56  (D),  (E)  and  (F)  of  this  subparagraph unless the property is first

        A. 6555                             3
 
     1  placed in service before October first, two  thousand  fifteen  and  (i)
     2  eighty  percent  or  more of the employees performing the administrative
     3  and support functions resulting from or related to the  qualifying  uses
     4  of  such  equipment are located in this state or (ii) the average number
     5  of employees that  perform  the  administrative  and  support  functions
     6  resulting  from  or related to the qualifying uses of such equipment and
     7  are located in this state during the taxable year for which  the  credit
     8  is  claimed is equal to or greater than ninety-five percent of the aver-
     9  age number of employees that perform these functions and are located  in
    10  this  state  during the thirty-six months immediately preceding the year
    11  for which the credit is  claimed,  or  (iii)  the  number  of  employees
    12  located  in  this  state during the taxable year for which the credit is
    13  claimed is equal to or greater than ninety  percent  of  the  number  of
    14  employees  located  in  this  state  on  December thirty-first, nineteen
    15  hundred ninety-eight or, if the taxpayer was not a calendar year taxpay-
    16  er in nineteen hundred ninety-eight, the last day of its  first  taxable
    17  year  ending after December thirty-first, nineteen hundred ninety-eight.
    18  If the taxpayer becomes subject to tax in this state after  the  taxable
    19  year  beginning  in  nineteen hundred ninety-eight, then the taxpayer is
    20  not required to satisfy the employment test provided  in  the  preceding
    21  sentence  of  this subparagraph for its first taxable year. For purposes
    22  of clause (iii) of this subparagraph the employment test will  be  based
    23  on  the number of employees located in this state on the last day of the
    24  first taxable year the taxpayer is subject to tax in this state. If  the
    25  uses of the property must be aggregated to determine whether the proper-
    26  ty  is  principally  used in qualifying uses, then either each affiliate
    27  using the property must satisfy this employment test or this  employment
    28  test  must  be satisfied through the aggregation of the employees of the
    29  taxpayer,  its  affiliated  regulated  broker,  dealer,  and  registered
    30  investment adviser using the property. For purposes of this subdivision,
    31  the term "goods" shall not include electricity.
    32    §  2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
    33  of the tax law, as amended by chapter  637  of  the  laws  of  2008,  is
    34  amended to read as follows:
    35    (A)  A  credit  shall be allowed under this subsection with respect to
    36  tangible personal property and other tangible property, including build-
    37  ings and structural components  of  buildings,  which  are:  depreciable
    38  pursuant  to  section  one  hundred  sixty-seven of the internal revenue
    39  code, have a useful life of four years or more, are acquired by purchase
    40  as defined in section one  hundred  seventy-nine  (d)  of  the  internal
    41  revenue code, have a situs in this state and are (i) principally used by
    42  the  taxpayer  in  the production of goods by manufacturing, processing,
    43  assembling, refining, mining, extracting, farming,  agriculture,  horti-
    44  culture,  floriculture,  viticulture  or commercial fishing, (ii) indus-
    45  trial waste treatment facilities or air  pollution  control  facilities,
    46  used in the taxpayer's trade or business, (iii) research and development
    47  property, (iv) principally used in the ordinary course of the taxpayer's
    48  trade  or business as a broker or dealer in connection with the purchase
    49  or sale (which shall include but not be limited to the issuance,  enter-
    50  ing  into,  assumption, offset, assignment, termination, or transfer) of
    51  stocks, bonds or other securities as defined  in  section  four  hundred
    52  seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
    53  defined in section 475(e) of the Internal Revenue Code, (v)  principally
    54  used  in  the  ordinary  course  of  the taxpayer's trade or business of
    55  providing investment advisory services for a regulated investment compa-
    56  ny as defined in section eight hundred fifty-one of the Internal Revenue

        A. 6555                             4
 
     1  Code, or lending, loan  arrangement  or  loan  origination  services  to
     2  customers  in  connection with the purchase or sale (which shall include
     3  but not be limited to the issuance, entering into,  assumption,  offset,
     4  assignment,  termination,  or  transfer)  of  securities  as  defined in
     5  section four hundred seventy-five (c)(2) of the Internal  Revenue  Code,
     6  [or]  (vi)  principally  used  as  a  qualified film production facility
     7  including qualified film production facilities  having  a  situs  in  an
     8  empire  zone  designated  as  such pursuant to article eighteen-B of the
     9  general municipal law, where the taxpayer is  providing  three  or  more
    10  services  to  any  qualified film production company using the facility,
    11  including such services as a studio lighting  grid,  lighting  and  grip
    12  equipment,  multi-line  phone  service, broadband information technology
    13  access, industrial scale electrical capacity,  food  services,  security
    14  services,  and heating, ventilation and air conditioning, or (vii) prin-
    15  cipally used in the ordinary course of any  trade  or  business  of  the
    16  taxpayer  not  otherwise  described  in clauses (i) through (vi) of this
    17  subparagraph.  For purposes of clauses (iv) and  (v)  of  this  subpara-
    18  graph,  property  purchased  by  a  taxpayer affiliated with a regulated
    19  broker, dealer, or registered investment adviser  is  allowed  a  credit
    20  under  this  subsection  if the property is used by its affiliated regu-
    21  lated broker, dealer or registered investment adviser in accordance with
    22  this subsection. For purposes of determining if the property is  princi-
    23  pally  used  in  qualifying  uses, the uses by the taxpayer described in
    24  clauses (iv) and (v) of this subparagraph may be  aggregated.  In  addi-
    25  tion,  the uses by the taxpayer, its affiliated regulated broker, dealer
    26  and registered investment adviser under either or both of those  clauses
    27  may  be  aggregated.  Provided, however, a taxpayer shall not be allowed
    28  the credit provided by clauses (iv) and (v) of this subparagraph  unless
    29  (I)  eighty  percent or more of the employees performing the administra-
    30  tive and support functions resulting from or related to  the  qualifying
    31  uses  of  such  equipment are located in this state, or (II) the average
    32  number of employees that perform the administrative  and  support  func-
    33  tions resulting from or related to the qualifying uses of such equipment
    34  and  are  located  in  this  state during the taxable year for which the
    35  credit is claimed is equal to or greater than ninety-five percent of the
    36  average number of employees that perform these functions and are located
    37  in this state during the thirty-six  months  immediately  preceding  the
    38  year  for  which the credit is claimed, or (III) the number of employees
    39  located in this state during the taxable year for which  the  credit  is
    40  claimed  is  equal  to  or  greater than ninety percent of the number of
    41  employees located in  this  state  on  December  thirty-first,  nineteen
    42  hundred ninety-eight or, if the taxpayer was not a calendar year taxpay-
    43  er  in  nineteen hundred ninety-eight, the last day of its first taxable
    44  year ending after December thirty-first, nineteen hundred  ninety-eight.
    45  If  the  taxpayer becomes subject to tax in this state after the taxable
    46  year beginning in nineteen hundred ninety-eight, then  the  taxpayer  is
    47  not  required  to  satisfy the employment test provided in the preceding
    48  sentence of this subparagraph  for  its  first  taxable  year.  For  the
    49  purposes  of  clause (III) of this subparagraph the employment test will
    50  be based on the number of employees located in this state  on  the  last
    51  day  of  the  first  taxable year the taxpayer is subject to tax in this
    52  state. If the uses of the  property  must  be  aggregated  to  determine
    53  whether the property is principally used in qualifying uses, then either
    54  each  affiliate  using the property must satisfy this employment test or
    55  this employment test must be satisfied through the  aggregation  of  the
    56  employees  of the taxpayer, its affiliated regulated broker, dealer, and

        A. 6555                             5
 
     1  registered investment adviser using the property. For purposes  of  this
     2  subsection, the term "goods" shall not include electricity.
     3    § 3. This act shall take effect immediately and apply to taxable years
     4  ending on or after January 1, 2017.
 
     5                                   PART B

     6    Section  1.  Subparagraph  (vii)  of paragraph (a) of subdivision 1 of
     7  section 210 of the tax law, as amended by section 12 of part T of  chap-
     8  ter 59 of the laws of 2015, is amended to read as follows:
     9    (vii) For a taxpayer that is defined as a qualified emerging technolo-
    10  gy  company under paragraph (c) of subdivision one of section thirty-one
    11  hundred two-e of the  public  authorities  law  regardless  of  the  ten
    12  million  dollar  limitation  expressed in subparagraph one of such para-
    13  graph (c) the amount prescribed by this paragraph shall be  computed  at
    14  the  rate of 5.7 percent for taxable years beginning on or after January
    15  first, two thousand fifteen  and  before  January  first,  two  thousand
    16  [sixteen, 5.5] eighteen, and zero percent for taxable years beginning on
    17  or  after January first, two thousand [sixteen and before January first,
    18  two thousand eighteen, and 4.875 percent for taxable years beginning  on
    19  or  after  January  first,  two  thousand  eighteen].   In the case of a
    20  combined report, each corporation included in the combined  report  must
    21  qualify  as a qualified emerging technology company in order for the tax
    22  rates provided by this subparagraph to apply.
    23    § 2. This act shall take effect immediately.
 
    24                                   PART C
 
    25    Section 1. The general municipal  law  is  amended  by  adding  a  new
    26  section 959-c to read as follows:
    27    § 959-c. Certified startup business enterprise. (a) Certification. (i)
    28  The commissioner shall approve applications for qualification of a busi-
    29  ness  enterprise as a certified startup business enterprise. As a condi-
    30  tion for approval of such application, the commissioner is authorized to
    31  specify certain requirements to be satisfied as a condition for approval
    32  of a business enterprise as a certified startup business  enterprise  as
    33  the  commissioner deems necessary to ensure the qualifying angel invest-
    34  ment will make a substantial contribution to the economic development of
    35  this state, including the use of  a  system  of  evaluation  of  various
    36  applicant business enterprises in a competitive fashion.
    37    (ii)  With  respect  to an approved application for qualification of a
    38  business enterprise as a  certified  startup  business  enterprise,  the
    39  commissioner  shall  issue  to such business enterprise a certificate of
    40  qualification as a certified startup business enterprise  setting  forth
    41  the  effective  date  of  the certification and the amount of qualifying
    42  angel investment awarded to such business enterprise, which amount shall
    43  be no less than one hundred  thousand  dollars  and  no  more  than  two
    44  million dollars.
    45    (iii)  For  the period July first, two thousand seventeen through June
    46  thirtieth, two thousand eighteen, the commissioner  may  certify  up  to
    47  twenty  million  dollars  in qualifying angel investment. For the period
    48  July first, two thousand eighteen through June thirtieth,  two  thousand
    49  nineteen,  the  commissioner may certify up to twenty million dollars in
    50  qualifying angel investment. For the period  July  first,  two  thousand
    51  nineteen  through  June thirtieth, two thousand twenty, the commissioner
    52  may certify up to twenty million dollars in qualifying angel investment.

        A. 6555                             6
 
     1    (b) Definitions. As used in this section, the  following  terms  shall
     2  have the following meanings:
     3    (i)  "Certified  startup  business  enterprise"  shall mean a business
     4  enterprise located in New York state:
     5    (1) with less than five million dollars in annual revenues;
     6    (2) whose primary activity consists  of  a  qualifying  technology  or
     7  innovation activity; and
     8    (3) that has been certified as a certified startup business enterprise
     9  by the commissioner.
    10    (ii) "Qualifying technology or innovation activity" shall mean:
    11    (1)  biotechnologies, which shall be defined as technologies involving
    12  the scientific manipulation  of  living  organisms,  especially  at  the
    13  molecular  and/or  the  sub-molecular genetic level, to produce products
    14  conducive to improving the lives and  health  of  plants,  animals,  and
    15  humans; and the associated scientific research, pharmacological, mechan-
    16  ical,  and  computational applications and services connected with these
    17  improvements;
    18    (2) information and communication technologies, equipment and  systems
    19  that  involve  advanced  computer  software  and hardware, visualization
    20  technologies, and human interface technologies;
    21    (3) advanced materials and processing technologies  that  involve  the
    22  development,  modification,  or  improvement of one or more materials or
    23  methods to produce devices  and  structures  with  improved  performance
    24  characteristics  or special functional attributes, or to activate, speed
    25  up, or otherwise alter chemical, biochemical, or medical processes;
    26    (4) electronic and photonic devices and components for use in  produc-
    27  ing  electronic,  optoelectronic,  mechanical  equipment and products of
    28  electronic distribution with interactive media content;
    29    (5) energy efficiency, renewable energy  and  environmental  technolo-
    30  gies, products, devices and services;
    31    (6) small scale systems integration and packaging; or
    32    (7) manufacturing;
    33    (iii)  "Qualifying  angel investment" shall mean a contribution to the
    34  capital of a certified startup business enterprise, provided  that  such
    35  contribution to capital is made within twelve months after the effective
    36  date  of the certified technology venture's certificate of qualification
    37  as a certified technology venture and such contribution  is  applied  by
    38  the  certified  startup  business  enterprise  against its allocation of
    39  qualifying angel investment. Together with all  other  qualifying  angel
    40  investments  made to a single certified startup business enterprise, the
    41  total qualifying angel investment may not exceed  two  million  dollars.
    42  Nothing herein shall prohibit a person making a qualifying angel invest-
    43  ment  from  making additional contributions to the capital of the certi-
    44  fied startup business enterprise or making loans to or other investments
    45  in the certified startup business enterprise,  provided,  however,  that
    46  such  other contributions, loans and investments shall not be treated as
    47  qualifying angel investments.
    48    § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
    49  sion 49 to read as follows:
    50    49.  Angel  tax  credit.  (a) Allowance of credit. A taxpayer that has
    51  made a qualifying angel investment, as such term is defined in paragraph
    52  (iii) of subdivision (b) of section nine  hundred  fifty-nine-c  of  the
    53  general  municipal law, shall be allowed a credit equal to fifty percent
    54  of the amount of such qualifying angel investment.
    55    (b) Application of credit. The credit allowed under  this  subdivision
    56  for  any taxable year shall not reduce the tax due for such year to less

        A. 6555                             7
 
     1  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
     2  section  two  hundred  ten  of this article.   However, if the amount of
     3  credit allowed under this subdivision for any taxable year  reduces  the
     4  tax  to  such  amount,  any amount of credit thus not deductible in such
     5  taxable year shall be treated as an overpayment of tax to be credited or
     6  refunded in accordance with  the  provisions  of  section  one  thousand
     7  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
     8  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
     9  notwithstanding, no interest shall be paid thereon.
    10    §  3. Section 606 of the tax law is amended by adding a new subsection
    11  (ccc) to read as follows:
    12    (ccc) Angel tax credit. (1) Allowance of credit. A taxpayer  that  has
    13  made a qualifying angel investment, as such term is defined in paragraph
    14  (iii)  of  subdivision  (b)  of section nine hundred fifty-nine-c of the
    15  general municipal law, or that is a member of  a  partnership  that  has
    16  made  a  qualifying angel investment, shall be allowed a credit equal to
    17  fifty percent of the amount of such qualifying angel investment  or,  in
    18  the  case of a taxpayer who is a member of a partnership that has made a
    19  qualifying angel investment, a portion of such qualifying angel  invest-
    20  ment  equal  to the portion of items of income, gain, loss and deduction
    21  associated with the qualifying angel investment  properly  allocable  to
    22  such  taxpayer  under  section  704 of the Internal Revenue Code for the
    23  taxable year.
    24    (2) Application of credit. If the amount of the credit  allowed  under
    25  this subsection for any taxable year shall exceed the taxpayer's tax for
    26  such  year,  the  excess shall be treated as an overpayment of tax to be
    27  credited or refunded in accordance with the provisions  of  section  six
    28  hundred  eighty-six of this article, provided, however, that no interest
    29  shall be paid thereon.
    30    § 4. Section 1511 of the tax law is amended by adding a  new  subdivi-
    31  sion (dd) to read as follows:
    32    (dd)  Angel  tax  credit. (1) Allowance of credit. A taxpayer that has
    33  made a qualifying angel investment, as such term is defined in paragraph
    34  (iii) of subdivision (b) of section nine  hundred  fifty-nine-c  of  the
    35  general  municipal law, shall be allowed a credit equal to fifty percent
    36  of the amount of such qualifying angel investment.
    37    (2) Application of credit. The credit allowed under  this  subdivision
    38  for  any taxable year shall not reduce the tax due for such year to less
    39  than the minimum tax fixed by  paragraph  four  of  subdivision  (a)  of
    40  section  fifteen  hundred  two  of  this  article  or by section fifteen
    41  hundred two-a of this article, whichever is applicable. However, if  the
    42  amount  of  credit  allowed  under this subdivision for any taxable year
    43  reduces the tax to such amount, then  any  amount  of  credit  thus  not
    44  deductible  in  such  taxable year shall be treated as an overpayment of
    45  tax to be credited or refunded in  accordance  with  the  provisions  of
    46  section  one thousand eighty-six of this chapter. Provided, however, the
    47  provisions of subsection (c) of section  one  thousand  eighty-eight  of
    48  this chapter notwithstanding, no interest shall be paid thereon.
    49    § 5. This act shall take effect immediately and apply to taxable years
    50  after January 1, 2017.
    51    § 2. Severability. If any clause, sentence, paragraph, section or part
    52  of  this act shall be adjudged by any court of competent jurisdiction to
    53  be invalid and after exhaustion of  all  further  judicial  review,  the
    54  judgment  shall not affect, impair, or invalidate the remainder thereof,
    55  but shall be confined in its operation to the  clause,  sentence,  para-

        A. 6555                             8
 
     1  graph,  section or part of this act directly involved in the controversy
     2  in which the judgment shall have been rendered.
     3    §  3.  This  act shall take effect immediately provided, however, that
     4  the applicable effective date of Parts A through C of this act shall  be
     5  as specifically set forth in the last section of such Parts.
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