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A03772 Summary:

A03772 Actions:

A03772 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A3772
 
SPONSOR: Tenney

 
TITLE OF BILL:  An act to amend the tax law, in relation to creating a
tax credit for New York state businesses that source materials and
supplies manufactured by other New York state businesses
 
 
PURPOSE OR GENERAL IDEA OF BILL: Relates to creating a tax credit for
New York state businesses that source materials and supplies manufac-
tured by other New York state businesses.
 
 
SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends section 210 of the
tax law, which adds a new subdivision 46 to read as follows:
 

46. Qualified products local sourcing credit. Businesses subject to tax
liability under article nine or nine-A of this chapter, purchasing qual-
ified products may claim the qualified products local sourcing tax cred-
it against any such liability at the close of the tax year provided,
however, that the unused portion of any tax credit claimed shall not be
carried forward and applied in another tax year.
 
Section 1, 46. continues with definitions and specifications for the
qualified products local sourcing credit.
 
Section 2 contains the effective date.
 
 
JUSTIFICATION: New York state's manufacturers contribute more than $65
billion annually to New York's Gross Domestic Product and employ more
than 800,000 state taxpayers. Additionally, manufacturing creates 2.5
related jobs in other sectors. New York state reaps tremendous benefits
when its manufacturers operate in a stable and supportive environment.
 

Many businesses in New York are already taking the initiative to do
business with other New York state businesses. Creating a New York state
tax credit program would provide opportunities for New York state-based
businesses to prosper and expand, enhancing the commitment to get New
York "open for business."
 
This legislation will create a qualified products local sourcing credit
that businesses can claim on their tax forms for doing business with
other New York-based businesses.
 
 
PRIOR LEGISLATIVE HISTORY:  05/01/13 referred to ways and means
01/08/14 referred to ways and means 06/17/14 held for consideration in
ways and means
 
 
FISCAL IMPLICATIONS: None.
 
 
EFFECTIVE DATE: This act shall take effect immediately.

A03772 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3772
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 27, 2015
                                       ___________
 
        Introduced by M. of A. TENNEY -- read once and referred to the Committee
          on Ways and Means
 
        AN  ACT  to  amend the tax law, in relation to creating a tax credit for
          New York state businesses that source materials and supplies  manufac-
          tured by other New York state businesses
 
          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 49 to read as follows:
     3    49.  Qualified  products local sourcing credit. (a) Businesses subject
     4  to tax liability under article nine or nine-A of this chapter,  purchas-
     5  ing  qualified  products may claim the qualified products local sourcing
     6  tax credit against any such liability at  the  close  of  the  tax  year
     7  provided,  however,  that  the  unused portion of any tax credit claimed
     8  shall not be carried forward and applied in another tax year.
     9    (b) For the purposes of this section the following  terms  shall  have
    10  the following meanings:
    11    (1)  "qualified  products"  shall  mean  any materials, components, or
    12  supplies whether used in the manufacturing process or otherwise that are
    13  produced in New York state by a New York state business;
    14    (2) "producer"  is  an  individual  (whether  acting  individually  or
    15  through  a  cooperative, corporation, partnership, business association,
    16  or educational institution) who is a business or manufacturer  of  goods
    17  in New York state, it shall not however include a wholesaler or distrib-
    18  utor;
    19    (3)  "purchaser"  is  an  individual  (whether  acting individually or
    20  through a cooperative, corporation, partnership,  business  association,
    21  or  educational  institution) who is a business or manufacturer of goods
    22  in New York state, it shall not however include a wholesaler or distrib-
    23  utor;
    24    (4) "net sales" are the total sales of the business subject to tax.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07211-01-5
        A. 3772                             2
 
     1    (c) The amount of the credit shall  be  prescribed  according  to  the
     2  following schedule:
     3    (1)  twenty  percent of net sales are attributed to qualified products
     4  the credit shall be one thousand five hundred dollars.
     5    (2) forty percent of net sales are attributed  to  qualified  products
     6  the credit shall be three thousand dollars.
     7    (3)  sixty  percent  of net sales are attributed to qualified products
     8  the credit shall be six thousand dollars.
     9    (4) eighty percent of net sales are attributed to  qualified  products
    10  the credit shall be twelve thousand dollars.
    11    (5)  one  hundred  percent  of  net  sales are attributed to qualified
    12  products the credit shall be twenty-five thousand dollars.
    13    (d) (1) Businesses claiming  the  qualified  products  local  sourcing
    14  credit  shall  submit  a computer-generated report with tax returns that
    15  claim a tax credit.
    16    (2) Such report shall include the name of the producer and  the  phys-
    17  ical place of the business where the products are produced.
    18    (3) The amount paid by the purchaser to the producer and the amount of
    19  units purchased.
    20    § 2. This act shall take effect immediately.