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A06968 Summary:

A06968 Actions:

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.