A06968 Summary:

BILL NO    A06968 

SAME AS    SAME AS S03676

SPONSOR    Cusick

COSPNSR    

MLTSPNSR   

Amd SS210-B & 606, Tax L

Provides a tax credit for businesses in a heightened flood risk zone that
purchase flood insurance: 75% of cost for 2016, 50% of cost for 2017, and 25%
of cost for 2018.
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A06968 Actions:

BILL NO    A06968 

04/15/2015 referred to ways and means
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A06968 Votes:

There are no votes for this bill in this legislative session.
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A06968 Memo:

BILL NUMBER:A6968

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 such insurance coverage.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amend Tax Law S 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. This annual tax credit will expire on
December 31, 2018.

Sections 2 and 3: Amend Tax Law S 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. 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 communities. The widespread flooding led to many
business structures being completely destroyed. Furthermore, such
businesses had to cease or curtail operations which led to the loss of
jobs. The negative impacts of this disaster will continue to 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 event of another flooding
disaster in the future.

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: A.6982 - Died in Ways and Means / S.3850 -
Passed Senate.

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect on the sixtieth day after
it shall have become a law and shall expire December 31, 2018, when
upon such date the provisions of this act shall be deemed repealed.
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