STATE OF NEW YORK
________________________________________________________________________
6522
2009-2010 Regular Sessions
IN ASSEMBLY
March 6, 2009
___________
Introduced by M. of A. GIGLIO, RAIA, QUINN, BURLING, HAWLEY, SAYWARD,
WALKER, BARRA, KOLB -- Multi-Sponsored by -- M. of A. BACALLES, BALL,
BARCLAY, CROUCH, HAYES, McDONOUGH, McKEVITT, O'MARA, REILICH, TOWNSEND
-- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing business fran-
chise and personal income tax credits for certain small businesses in
a village or small city
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 29 to read as follows:
3 29. Small business capital tax credit. (a) A taxpayer shall be allowed
4 a credit, to be computed as provided in this subdivision, against the
5 tax imposed by this article. Such credit shall be granted to any taxpay-
6 er which is a small business when the small business is located in a
7 village or in a city with a population of less than thirty-five thousand
8 as determined by the most recent federal decennial census. The amount of
9 the credit shall be equal to twenty-five percent of the sum of qualified
10 investments in such small business, as determined by the commissioner.
11 (b) For the purposes of this subdivision, the term "small business"
12 means a business which employs less than fifteen employees.
13 (c) The credit and carryovers of such credit allowed under this subdi-
14 vision for any taxable year shall not, in the aggregate, reduce the tax
15 due for such year to less than the higher of the amounts prescribed in
16 paragraphs (c) and (d) of subdivision one of this section. However, if
17 the amount of credit or carryovers of such credit, or both, allowed
18 under this subdivision for any taxable year reduces the tax to such
19 amount, any amount of credit or carryovers of such credit thus not
20 deductible in such taxable year may be carried over to the following
21 year or years and may be deducted from the tax for such year or years.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05167-01-9
A. 6522 2
1 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
2 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of
3 the laws of 2008, is amended to read as follows:
4 (B) shall be treated as the owner of a new business with respect to
5 such share if the corporation qualifies as a new business pursuant to
6 paragraph (j) of subdivision twelve of section two hundred ten of this
7 chapter.
8 The corporation's credit base under
9 section two hundred ten or section
10 With respect to the following fourteen hundred fifty-six of this
11 credit under this section: chapter is:
12 Investment tax credit Investment credit base
13 under subsection (a) or qualified
14 rehabilitation
15 expenditures under
16 subdivision twelve of
17 section two hundred ten
18 Empire zone Cost or other basis
19 investment tax credit under subdivision
20 under subsection (j) twelve-B
21 of section two hundred
22 ten
23 Empire zone Eligible wages under
24 wage tax credit subdivision nineteen of
25 under subsection (k) section two hundred ten
26 or subsection (e) of
27 section fourteen hundred
28 fifty-six
29 Empire zone Qualified investments
30 capital tax credit and contributions under
31 under subsection (l) subdivision twenty of
32 section two hundred ten
33 or subsection (d) of
34 section fourteen hundred
35 fifty-six
36 Agricultural property tax Allowable school
37 credit under subsection (n) district property taxes under
38 subdivision twenty-two of
39 section two hundred ten
40 Credit for employment Qualified first-year wages or
41 of persons with dis- qualified second-year wages
42 abilities under under subdivision
43 subsection (o) twenty-three of section
44 two hundred ten
45 or subsection (f)
46 of section fourteen
47 hundred fifty-six
A. 6522 3
1 Employment incentive Applicable investment credit
2 credit under subsec- base under subdivision
3 tion (a-1) twelve-D of section two
4 hundred ten
5 Empire zone Applicable investment
6 employment credit under sub-
7 incentive credit under division twelve-C
8 subsection (j-1) of section two hundred ten
9 Alternative fuels credit Cost under subdivision
10 under subsection (p) twenty-four of section two
11 hundred ten
12 Qualified emerging Applicable credit base
13 technology company under subdivision twelve-E
14 employment credit of section two hundred ten
15 under subsection (q)
16 Qualified emerging Qualified investments under
17 technology company subdivision twelve-F of
18 capital tax credit section two hundred ten
19 under subsection (r)
20 Credit for purchase of an Cost of an automated
21 automated external defibrillator external defibrillator under
22 under subsection (s) subdivision twenty-five of
23 section two hundred ten
24 or subsection (j) of section
25 fourteen hundred fifty-six
26 Low-income housing Credit amount under
27 credit under subsection (x) subdivision thirty
28 of section two hundred ten or
29 subsection (l) of section
30 fourteen hundred fifty-six
31 Credit for transportation Amount of credit under sub-
32 improvement contributions division thirty-two of section
33 under subsection (z) two hundred ten or subsection
34 (n) of section fourteen
35 hundred fifty-six
36 QEZE credit for real property Amount of credit under
37 taxes under subsection (bb) subdivision twenty-seven of
38 section two hundred ten or
39 subsection (o) of section
40 fourteen hundred fifty-six
41 QEZE tax reduction credit Amount of benefit period
42 under subsection (cc) factor, employment increase factor
43 and zone allocation
44 factor (without regard
45 to pro ration) under
46 subdivision twenty-eight of
47 section two hundred ten or
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1 subsection (p) of section
2 fourteen hundred fifty-six
3 and amount of tax factor
4 as determined under
5 subdivision (f) of section sixteen
6 Green building credit Amount of green building credit
7 under subsection (y) under subdivision thirty-one
8 of section two hundred ten
9 or subsection (m) of section
10 fourteen hundred fifty-six
11 Credit for long-term Qualified costs under
12 care insurance premiums subdivision twenty-five-a of
13 under subsection (aa) section two hundred ten
14 or subsection (k) of section
15 fourteen hundred fifty-six
16 Brownfield redevelopment Amount of credit
17 credit under subsection under subdivision
18 (dd) thirty-three of section
19 two hundred ten
20 or subsection (q) of
21 section fourteen hundred
22 fifty-six
23 Remediated brownfield Amount of credit under
24 credit for real property subdivision thirty-four
25 taxes for qualified of section two hundred
26 sites under subsection ten or subsection (r) of
27 (ee) section fourteen hundred
28 fifty-six
29 Environmental Amount of credit under
30 remediation subdivision thirty-five of
31 insurance credit under section two hundred
32 subsection (ff) ten or subsection
33 (s) of section
34 fourteen hundred
35 fifty-six
36 Empire state film production Amount of credit for qualified
37 credit under subsection (gg) production costs in production
38 of a qualified film under
39 subdivision thirty-six of
40 section two hundred ten
41 Qualified emerging Qualifying expenditures and
42 technology company facilities, development activities under
43 operations and training credit subdivision twelve-G of section
44 under subsection (nn) two hundred ten
45 Security training tax Amount of credit
46 credit under under subdivision thirty-seven
47 subsection (ii) of section two hundred ten or
48 under subsection (t) of
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1 section fourteen hundred fifty-six
2 Credit for qualified fuel Amount of credit under
3 cell electric generating equipment subdivision thirty-seven
4 expenditures under subsection (g-2) of section two hundred ten
5 or subsection (t) of
6 section fourteen hundred
7 fifty-six
8 Empire state commercial production Amount of credit for qualified
9 credit under subsection (jj) production costs in production
10 of a qualified commercial under
11 subdivision thirty-eight of sec-
12 tion two hundred ten
13 Biofuel production Amount of credit
14 tax credit under under subdivision
15 subsection (jj) thirty-eight of
16 section two hundred ten
17 Clean heating fuel credit Amount of credit under
18 under subsection (mm) subdivision thirty-nine of
19 section two hundred ten
20 Credit for rehabilitation Amount of credit under
21 of historic properties subdivision forty of
22 under subsection (oo) [subsection] section
23 two hundred ten
24 Credit for companies who Amount of credit under
25 provide transportation subdivision forty of
26 to individuals section two hundred ten
27 with disabilities
28 under subsection (oo)
29 Small business capitalAmount of credit under
30 tax credit undersubdivision twenty-nine of
31 subsection (qq)section two hundred ten
32 § 3. Section 606 of the tax law is amended by adding a new subsection
33 (qq) to read as follows:
34 (qq) Small business capital tax credit. (1) a taxpayer shall be
35 allowed a credit, to be computed as provided in this subsection, against
36 the tax imposed by this article. Such credit shall be granted to any
37 taxpayer which is a small business when the small business is located in
38 a village or in a city with a population of less than thirty-five thou-
39 sand as determined by the most recent federal decennial census. The
40 amount of the credit shall be equal to twenty-five percent of the sum of
41 qualified investments in such small business, as determined by the
42 commissioner.
43 (2) For the purposes of this subsection, the term "small business"
44 means a business which employs less than fifteen employees.
45 (3) The credit and carryovers of such credit allowed under this
46 subsection for any taxable year shall not, in the aggregate, reduce the
47 tax due for such year to be less than the higher of the amounts
48 prescribed in paragraphs (c) and (d) of subdivision one of section two
49 hundred ten of this chapter. However, if the amount of credit or carry-
A. 6522 6
1 overs of such credit, or both, allowed under this subsection for any
2 taxable year reduces the tax to such amount, any amount of credit or
3 carryovers of such credit thus not deductible in such taxable year may
4 be carried over to the following year or years and may be deducted from
5 the tax for such year or years.
6 § 4. This act shall take effect on the first of January next succeed-
7 ing the date on which it shall have become a law and shall apply to
8 taxable years commencing on or after such date; provided, however, that
9 the empire state film production credit under subsection (gg), the
10 empire state commercial production credit under subsection (jj) and the
11 credit for companies who provide transportation to individuals with
12 disabilities under subsection (oo) of section 606 of the tax law
13 contained in section two of this act shall expire on the same date as
14 provided in section 9 of part P of chapter 60 of the laws of 2004, as
15 amended, section 10 of part V of chapter 62 of the laws of 2006, as
16 amended and section 5 of chapter 522 of the laws of 2006, as amended,
17 respectively.
