A06968 Summary:

BILL NOA06968A
 
SAME ASSAME AS S03676-A
 
SPONSORCusick
 
COSPNSR
 
MLTSPNSR
 
Amd 210-B & 606, Tax L
 
Provides a tax credit for businesses in a heightened flood risk zone that purchase flood insurance.
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A06968 Actions:

BILL NOA06968A
 
04/15/2015referred to ways and means
01/06/2016referred to ways and means
06/10/2016amend and recommit to ways and means
06/10/2016print number 6968a
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A06968 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6968A
 
SPONSOR: Cusick
  TITLE OF BILL: An act to amend the tax law, in relation to providing a tax credit for businesses that purchase flood insurance; and providing for the repeal of such provisions upon expiration thereof   PURPOSE OR GENERAL IDEA OF BILL: To provide state-sponsored incentives through tax credits for businesses that currently do not have flood insurance, but would like to purchase these insurance coverages.   SUMMARY OF SPECIFIC PROVISIONS: Section 1: Amend Tax Law § 210-b to create a corporate franchise tax credit for affected businesses that purchase flood insurance. Provides that the credit shall be equal to: (i) seventy-five percent of the cost of flood insurance for the business on or after January 1, 2016; (ii) fifty percent of the cost of flood insurance for the business on or after January 1, 2017; and (iii) twenty-five percent of the cost of flood insurance for business on or after January 1, 2017 and before January 1, 2018. This annual tax credit will expire on December 31, 2018. Sections 2 and 3: Amend Tax Law § 606 to create a personal income tax credit for affected businesses that purchase flood insurance. Provides that the credit shall be equal to: (i) seventy-five percent of the cost of flood insurance for the business on or after January 1, 2016; (ii) fifty percent of the cost of flood insurance for the business on or after January 1, 2017; and (iii) twenty-five percent of the cost of flood insurance for business on or after January 1, 2017 and before January 1, 2018. This annual tax credit will expire on December 31, 2018.   JUSTIFICATION: In October 2012, due to Superstorm Sandy, extensive flooding occurred across New York State and caused severe damage in many downstate commu- nities. The widespread flooding led to many business structures being completely destroyed. Further, such businesses had to cease or curtail operations which led to job losses. The negative impacts of this disas- ter will be seen in New York for many years to come. This legislation provides corporate franchise tax and personal income tax credits for businesses that purchase flood insurance. The credit would be used as an incentive for businesses to purchase flood insurance to ensure that such business will be covered in the future in the event of another flooding disaster. This legislation specifically targets businesses located in heightened flood risk zones and that do not currently have flood insurance. Heightened flood risk zones have been defined by the Federal Emergency Management Agency (FEMA) and are generally defined as geographic areas that FEMA has defined according to varying levels of flood risk. Each zone reflects the severity or type of flooding in the area.   PRIOR LEGISLATIVE HISTORY: 2014 - Passed-Senate.; died in Assembly Ways and Means. 2013 - Passed-Senate.; died in Assembly Ways and Means.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: Sixty days after it shall become law, expiring on December 31, 2018.
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