A07047 Summary:

BILL NO    A07047 

SAME AS    No same as 

SPONSOR    Tedisco

COSPNSR    

MLTSPNSR   

Amd S606, Tax L

Establishes a self-employed taxpayer credit.
Go to top

A07047 Actions:

BILL NO    A07047 

04/30/2013 referred to ways and means
01/08/2014 referred to ways and means
Go to top

A07047 Votes:

There are no votes for this bill in this legislative session.
Go to top

A07047 Memo:

BILL NUMBER:A7047

TITLE OF BILL:  An act to amend the tax law, in relation to
establishing a tax credit for low income individuals subject to the
federal self-employment tax

Purpose:

This bill will decrease the tax burden for low income individual
taxpayers who are self-employed by extending to qualifying individuals
a state-level tax credit. This tax credit will help facilitate the
success of small businesses throughout the state of New York.

Summary of Provisions:

Section I declares the need for low income individuals that are
self-employed and therefore subject to federal self-employment taxes a
state-level tax credit.

Section 2 details the "Self-employed taxpayer credit," which will be a
credit equal to twenty-five percent of the individual's
federal-self-employment taxpayer liability for the year, but kept from
exceeding five hundred dollars.

Subsection (2) defines "qualified self-employed taxpayer" as an
individual taxpayer, whose federal gross income is below forty
thousand dollars, and whose business income in the year is an amount
of at least seventy percent of the individual's federal gross income.
Business entities are not included.

Subsection (3) details how to phase out maximum credit. Specifically,
to reduce dollar for dollar for each dollar beyond thirty-nine
thousand five hundred dollars of federal gross income upon achieving
forty thousand dollars in which tax credit will have been entirely
phased out.

Section 3 establishes that such act shall take effect immediately and
shall apply to taxable years beginning on or after January 1, 2014/

Justification:

Entrepreneurs and individually owned and operated business is a large
portion of New York States economy. Small businesses are vital in a
transitioning economy and as a State we must do all in our power to
encourage the desire to work for ones self. It is increasingly
difficult for independently owned and operated business owners to earn
a sustainable living if their business is yielding less than
anticipated revenue in the face of federal-employment taxes and state
income taxes.

To help alleviate the obstacles preventing the future
entrepreneurship, and to ensure success of current small businesses
and start-ups, the State of New York should provide a state
implemented incentive in the form of a tax credit to help encourage
economic growth.

Prior Legislative History:


New Bill.

Financial Implications:  To be determined.

Effective Date:

This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2014.
Go to top

A07047 Text:

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

                                         7047

                              2013-2014 Regular Sessions

                                 I N  A S S E M B L Y

                                    April 30, 2013
                                      ___________

       Introduced  by M. of A. TEDISCO -- read once and referred to the Commit-
         tee on Ways and Means

       AN ACT to amend the tax law, in relation to establishing  a  tax  credit
         for low income individuals subject to the federal self-employment tax

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Legislative intent. The legislature recognizes the need  to
    2  alleviate the tax burden of low income individual taxpayers whose income
    3  is largely derived from self-employment and therefore affected by feder-
    4  al  self-employment taxes to a degree disproportionate with such taxpay-
    5  ers' level of disposable income. This circumstance  hinders  many  newly
    6  started  businesses  in the state. Therefore, this act provides a state-
    7  level credit to provide relief to these taxpayers.
    8    S 2. Section 606 of the tax law is amended by adding a new  subsection
    9  (ww) to read as follows:
   10    (WW) SELF-EMPLOYED TAXPAYER CREDIT.  (1) GENERAL. A QUALIFIED SELF-EM-
   11  PLOYED  TAXPAYER  SHALL  BE  ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
   12  THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF HIS OR HER FEDERAL SELF-EM-
   13  PLOYMENT TAX LIABILITY FOR THE YEAR, BUT NOT EXCEEDING A MAXIMUM  AMOUNT
   14  OF  FIVE  HUNDRED  DOLLARS,  AND  SUBJECT TO PHASE-OUT AS PROVIDED UNDER
   15  PARAGRAPH THREE OF THIS SUBSECTION.
   16    (2) DEFINITION OF  "QUALIFIED  SELF-EMPLOYED  TAXPAYER".  A  QUALIFIED
   17  SELF-EMPLOYED  TAXPAYER  IS  AN INDIVIDUAL TAXPAYER, WHOSE FEDERAL GROSS
   18  INCOME FOR THE TAX YEAR IS BELOW FORTY THOUSAND DOLLARS, AND WHOSE BUSI-
   19  NESS INCOME IN THE YEAR IS AN AMOUNT OF AT LEAST SEVENTY PERCENT OF  HIS
   20  OR HER FEDERAL GROSS INCOME. BUSINESS ENTITIES SHALL NOT BE QUALIFIED.
   21    (3)  MAXIMUM  CREDIT  PHASE-OUT.  THE  MAXIMUM  ALLOWED CREDIT OF FIVE
   22  HUNDRED DOLLARS SHALL BE REDUCED  DOLLAR  FOR  DOLLAR  FOR  EACH  DOLLAR
   23  BEYOND  THIRTY-NINE  THOUSAND  FIVE  HUNDRED  DOLLARS  OF  FEDERAL GROSS
   24  INCOME, SUCH THAT THE CREDIT IS  COMPLETELY  PHASED  OUT  UPON  REACHING
   25  FORTY THOUSAND DOLLARS OF FEDERAL GROSS INCOME.
   26    S 3. This act shall take effect immediately and shall apply to taxable
   27  years beginning on or after January 1, 2014.

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09418-02-3
Go to top
Page display time = 0.0769 sec