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A06968 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         6968

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                    April 15, 2015
                                      ___________

       Introduced by M. of A. CUSICK -- read once and referred to the Committee
         on Ways and Means

       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

         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. TAX CREDIT FOR BUSINESSES WHICH PURCHASE FLOOD INSURANCE.   (A)  A
    4  QUALIFIED TAXPAYER SHALL BE ALLOWED AN ANNUAL CREDIT FOR THE PURCHASE OF
    5  FLOOD  INSURANCE. THE CREDIT SHALL BE EQUAL TO: (I) SEVENTY-FIVE PERCENT
    6  OF THE COST OF FLOOD INSURANCE FOR THE  BUSINESS  ON  OR  AFTER  JANUARY
    7  FIRST,  TWO  THOUSAND  SIXTEEN;  (II) FIFTY PERCENT OF THE COST OF FLOOD
    8  INSURANCE FOR THE BUSINESS ON  OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
    9  SEVENTEEN;  AND (III) TWENTY-FIVE PERCENT OF THE COST OF FLOOD INSURANCE
   10  FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND  SEVENTEEN  AND
   11  BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN.
   12    (B) IN NO EVENT SHALL THE CREDIT UNDER THIS SUBDIVISION REDUCE THE TAX
   13  PAYABLE  TO  LESS THAN THE DOLLAR AMOUNT FIXED AS A MINIMUM TAX BY PARA-
   14  GRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.
   15  HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR  ANY
   16  TAXABLE  YEAR  WOULD  HAVE REDUCED THE TAX TO SUCH AMOUNT, ANY AMOUNT OF
   17  CREDIT THUS NOT USED IN SUCH TAXABLE YEAR MAY BE TREATED AS AN  OVERPAY-
   18  MENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS
   19  OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER.
   20    (C)  FOR  PURPOSES  OF  THIS  SUBDIVISION,  "QUALIFIED TAXPAYER" SHALL
   21  INCLUDE, BUT NOT BE LIMITED TO BUSINESSES OPERATING IN OR OUT OF A RESI-
   22  DENCE WHOSE BUSINESS IS LOCATED WITHIN A HEIGHTENED FLOOD RISK ZONE  AND
   23  DOES NOT CURRENTLY HAVE FLOOD INSURANCE.

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03106-01-5
       A. 6968                             2

    1    S  2. Section 606 of the tax law is amended by adding a new subsection
    2  (s-1) to read as follows:
    3    (S-1)  CREDIT  FOR ANNUAL BUSINESS PURCHASE OF FLOOD INSURANCE.  (1) A
    4  QUALIFIED TAXPAYER SHALL BE ALLOWED  AN  ANNUAL  CREDIT  AS  HEREINAFTER
    5  PROVIDED  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE FOR THE PURCHASE OF
    6  FLOOD INSURANCE. THE AMOUNT OF THE CREDIT  SHALL  BE:  (I)  SEVENTY-FIVE
    7  PERCENT  OF  THE  COST  OF  FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER
    8  JANUARY FIRST, TWO THOUSAND SIXTEEN; (II) FIFTY PERCENT OF THE  COST  OF
    9  FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND
   10  SEVENTEEN;  AND (III) TWENTY-FIVE PERCENT OF THE COST OF FLOOD INSURANCE
   11  FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND  SEVENTEEN  AND
   12  BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN.
   13    (2)  FOR  PURPOSES  OF  THIS  SUBSECTION,  "QUALIFIED  TAXPAYER" SHALL
   14  INCLUDE, BUT NOT BE LIMITED TO BUSINESSES OPERATING IN OR OUT OF A RESI-
   15  DENCE WHOSE BUSINESS IS LOCATED WITHIN A HEIGHTENED FLOOD RISK ZONE  AND
   16  DOES NOT CURRENTLY HAVE FLOOD INSURANCE.
   17    (3)  IF  THE  AMOUNT  OF  CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL
   18  EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE TREATED AS AN
   19  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
   20  PROVISIONS  OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED,
   21  HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   22    S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
   23  of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
   24  follows:
   25  (XLI) PURCHASE OF FLOOD INSURANCE    AMOUNT OF CREDIT UNDER
   26  BY BUSINESSES UNDER SUBSECTION (S-1) SUBDIVISION FORTY-NINE OF
   27                                       SECTION TWO HUNDRED TEN-B
   28    S 4. The commissioner of taxation and finance  shall  prescribe  rules
   29  and  regulations  necessary  to  establish the criteria for a heightened
   30  flood risk zone and for the implementation of the tax credit  for  busi-
   31  nesses which purchase flood insurance provided by this act.
   32    S  5.  This  act  shall take effect on the sixtieth day after it shall
   33  have become a law and shall expire December 31,  2018,  when  upon  such
   34  date the provisions of this act shall be deemed repealed.
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