BILL NO A03772
SAME AS SAME AS S03882
Amd S210-B, Tax L
Relates to creating a tax credit for New York state businesses that source
materials and supplies manufactured by other New York state businesses.
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
manufactured 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
qualified products may claim the qualified products local sourcing tax
credit 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
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.
S T A T E O F N E W Y O R K
2015-2016 Regular Sessions
I N A S S E M B L Y
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-
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-
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.
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 S 2. This act shall take effect immediately.