A07696 Summary:

BILL NOA07696
 
SAME ASNo same as
 
SPONSORHayes (MS)
 
COSPNSRBacalles, Finch, Hawley, Reilich, Tedisco, Tobacco, Ball
 
MLTSPNSRAlfano, Barclay, Barra, Burling, Butler, Calhoun, Conte, Corwin, Crouch, Duprey, Errigo, Giglio, Jordan, Kolb, Lopez P, McDonough, Miller J, Molinaro, Oaks, O'Mara, Quinn, Raia, Saladino, Sayward, Thiele, Townsend
 
Add S215, Ins L; amd SS210, 606, 1456 & 1511, Tax L
 
Provides tax credit for the purchase of health insurance by qualified small employers including farmers.
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A07696 Actions:

BILL NOA07696
 
04/22/2009referred to insurance
01/06/2010referred to insurance
05/18/2010held for consideration in insurance
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A07696 Floor Votes:

There are no votes for this bill in this legislative session.
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A07696 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7696
 
                               2009-2010 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 22, 2009
                                       ___________
 
        Introduced by M. of A. HAYES, BACALLES, FINCH, HAWLEY, REILICH, TEDISCO,
          TOBACCO,  WALKER  --  Multi-Sponsored  by -- M. of A. ALFANO, BARCLAY,
          BARRA, BURLING, BUTLER, CALHOUN, CONTE, CORWIN, CROUCH, DUPREY,  ERRI-
          GO, GIGLIO, JORDAN, KOLB, P. LOPEZ, McDONOUGH, MILLER, MOLINARO, OAKS,
          O'MARA,  QUINN, RAIA, SALADINO, SAYWARD, THIELE, TOWNSEND -- read once

          and referred to the Committee on Insurance
 
        AN ACT to amend the insurance law  and  the  tax  law,  in  relation  to
          providing  a tax credit for the purchase of health insurance by quali-
          fied small employers
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The insurance law is amended by adding a new section 215 to
     2  read as follows:
     3    §  215. Report on qualified small employer tax credit. The superinten-
     4  dent shall order a study of the impact of section  four  thousand  three
     5  hundred twenty-six of this chapter, subdivision forty-one of section two
     6  hundred  ten  of the tax law, subdivision (y) of section fifteen hundred
     7  eleven of the tax law, and subsection (f-1) of section one thousand four

     8  hundred fifty-six of the tax law. Such study shall examine the number of
     9  persons covered by group health  insurance  offered  by  their  employer
    10  prior to, and after, implementation of such provisions of such sections,
    11  and  shall  determine  the effect of such provisions of such sections on
    12  employee health insurance coverage. The study shall be completed  and  a
    13  report  submitted  by September first, two thousand eleven to the gover-
    14  nor, the temporary president of the senate and the speaker of the assem-
    15  bly.
    16    § 2. Section 210 of the tax law is amended by adding a new subdivision
    17  41 to read as follows:
    18    41. (a) A taxpayer who is a  qualified  small  employer,  including  a
    19  small employer principally engaged in farming, shall be allowed a credit

    20  against  the tax imposed by this article equal to fifteen percent of the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06843-02-9

        A. 7696                             2
 
     1  premium paid during the  taxable  year  for  health  insurance  by  such
     2  employer.
     3    (b)  The  credit allowed under this subdivision for any year shall not
     4  reduce the tax due for such year to less than the higher of the  amounts
     5  prescribed in paragraphs (c) and (d) of subdivision one of this section.
     6  If,  however,  the amount of credit allowable under this subdivision for

     7  any taxable year reduces the tax to such amount, any  amount  of  credit
     8  not deductible in such taxable year may be carried over to the following
     9  year  or years and may be deducted from the taxpayer's tax for such year
    10  or years.
    11    (c) For the purposes of this subdivision  "qualified  small  employer"
    12  shall  mean  an  individual  proprietor  who is the sole employee of the
    13  business or an employer with not more than fifty employees:   who  is  a
    14  "small business taxpayer" as defined in paragraph (f) of subdivision one
    15  of this section.
    16    (d)  For the purposes of this subdivision, the term "health insurance"
    17  means an accident and health insurance policy subject to the  provisions

    18  of  section  three  thousand  two  hundred  sixteen,  three thousand two
    19  hundred twenty-one, four thousand three hundred three or  four  thousand
    20  eight  hundred  one of the insurance law, and article forty-three of the
    21  public health law.
    22    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    23  of  the  tax  law, as amended by section 2 of part ZZ-1 of chapter 57 of
    24  the laws of 2008, is amended to read as follows:
    25    (B) shall be treated as the owner of a new business  with  respect  to
    26  such  share  if  the corporation qualifies as a new business pursuant to
    27  paragraph (j) of subdivision twelve of section two hundred ten  of  this
    28  chapter.
 
    29                                       The corporation's credit base under
    30                                       section two hundred ten or section

    31  With respect to the following        fourteen hundred fifty-six of this
    32  credit under this section:           chapter is:
 
    33  (i) Investment tax credit            Investment credit base
    34  under subsection (a)                 or qualified
    35                                       rehabilitation
    36                                       expenditures under
    37                                       subdivision twelve of
    38                                       section two hundred ten
 
    39  (ii) Empire zone                     Cost or other basis
    40  investment tax credit                under subdivision
    41  under subsection (j)                 twelve-B
    42                                       of section two hundred
    43                                       ten
 
    44  (iii) Empire zone                    Eligible wages under

    45  wage tax credit                      subdivision nineteen of
    46  under subsection (k)                 section two hundred ten
    47                                       or subsection (e) of
    48                                       section fourteen hundred
    49                                       fifty-six

        A. 7696                             3
 
     1  (iv) Empire zone                     Qualified investments
     2  capital tax credit                   and contributions under
     3  under subsection (l)                 subdivision twenty of
     4                                       section two hundred ten
     5                                       or subsection (d) of
     6                                       section fourteen hundred
     7                                       fifty-six
 
     8  (v) Agricultural property tax        Allowable school

     9  credit under subsection (n)          district property taxes under
    10                                       subdivision twenty-two of
    11                                       section two hundred ten
 
    12  (vi) Credit for employment           Qualified first-year wages or
    13  of persons with dis-                 qualified second-year wages
    14  abilities under                      under subdivision
    15  subsection (o)                       twenty-three of section
    16                                       two hundred ten
    17                                       or subsection (f)
    18                                       of section fourteen
    19                                       hundred fifty-six
 
    20  (vii) Employment incentive           Applicable investment credit
    21  credit under subsec-                 base under subdivision
    22  tion (a-1)                           twelve-D of section two

    23                                       hundred ten
 
    24  (viii) Empire zone                   Applicable investment
    25  employment                           credit under sub-
    26  incentive credit under               division twelve-C
    27  subsection (j-1)                     of section two hundred ten
 
    28  (ix) Alternative fuels credit        Cost under subdivision
    29  under subsection (p)                 twenty-four of section two
    30                                       hundred ten
 
    31  (x) Qualified emerging               Applicable credit base
    32  technology company                   under subdivision twelve-E
    33  employment credit                    of section two hundred ten
    34  under subsection (q)
 
    35  (xi) Qualified emerging              Qualified investments under
    36  technology company                   subdivision twelve-F of

    37  capital tax credit                   section two hundred ten
    38  under subsection (r)
 
    39  (xii) Credit for purchase of an      Cost of an automated
    40  automated external defibrillator     external defibrillator under
    41  under subsection (s)                 subdivision twenty-five of
    42                                       section two hundred ten
    43                                       or subsection (j) of section
    44                                       fourteen hundred fifty-six
 
    45  (xiii) Low-income housing            Credit amount under
    46  credit under subsection (x)          subdivision thirty
    47                                       of section two hundred ten or

        A. 7696                             4
 
     1                                       subsection (l) of section
     2                                       fourteen hundred fifty-six
 

     3  (xiv) Credit for transportation      Amount of credit under
     4  improvement contributions            subdivision thirty-two of section
     5  under subsection (z)                 two hundred ten or subsection
     6                                       (n) of section fourteen
     7                                       hundred fifty-six
 
     8  (xv) QEZE credit for real property   Amount of credit under
     9  taxes under subsection (bb)          subdivision twenty-seven of
    10                                       section two hundred ten or
    11                                       subsection (o) of section
    12                                       fourteen hundred fifty-six
 
    13  (xvi) QEZE tax reduction credit      Amount of benefit period
    14  under subsection (cc)                factor, employment increase factor
    15                                       and zone allocation

    16                                       factor (without regard
    17                                       to pro ration) under
    18                                       subdivision twenty-eight of
    19                                       section two hundred ten or
    20                                       subsection (p) of section
    21                                       fourteen hundred fifty-six
    22                                       and amount of tax factor
    23                                       as determined under
    24                                       subdivision (f) of section sixteen
 
    25  (xvii) Green building credit         Amount of green building
    26  under subsection (y)                 credit under subdivision thirty-one
    27                                       of section two hundred ten
    28                                       or subsection (m) of section

    29                                       fourteen hundred fifty-six
 
    30  (xviii) Credit for long-term         Qualified costs under
    31  care insurance premiums              subdivision twenty-five-a of
    32  under subsection (aa)                section two hundred ten
    33                                       or subsection (k) of section
    34                                       fourteen hundred fifty-six
 
    35  (xix) Brownfield redevelopment       Amount of credit
    36  credit under subsection              under subdivision
    37  (dd)                                 thirty-three of section
    38                                       two hundred ten
    39                                       or subsection (q) of
    40                                       section fourteen hundred
    41                                       fifty-six
 
    42  (xx) Remediated brownfield           Amount of credit under

    43  credit for real property             subdivision thirty-four
    44  taxes for qualified                  of section two hundred
    45  sites under subsection               ten or subsection (r) of
    46  (ee)                                 section fourteen hundred
    47                                       fifty-six

        A. 7696                             5
 
     1  (xxi) Environmental                  Amount of credit under
     2  remediation                          subdivision thirty-five of
     3  insurance credit under               section two hundred
     4  subsection (ff)                      ten or subsection
     5                                       (s) of section
     6                                       fourteen hundred
     7                                       fifty-six
 
     8  (xxii) Empire state film production  Amount of credit for

     9  credit under subsection (gg)         qualified production costs in production
    10                                       of a qualified film under
    11                                       subdivision thirty-six of
    12                                       section two hundred ten
 
    13  (xxiii) Qualified emerging           Qualifying expenditures and
    14  technology company facilities,       development activities under
    15  operations and training credit       subdivision twelve-G of section
    16  under subsection (nn)                two hundred ten
 
    17  (xxiv) Security training tax         Amount of credit
    18  credit under                         under subdivision thirty-seven
    19  subsection (ii)                      of section two hundred ten or
    20                                       under subsection (t) of
    21                                       section fourteen hundred fifty-six
 

    22  (xxv) Credit for qualified fuel      Amount of credit under
    23  cell electric generating equipment   subdivision thirty-seven
    24  expenditures under subsection (g-2)  of section two hundred ten
    25                                       or subsection (t) of
    26                                       section fourteen hundred
    27                                       fifty-six
 
    28  (xxvi) Empire state commercial       Amount of
    29  production credit under              credit for qualified production
    30  subsection (jj)                      costs in production of a
    31                                       qualified commercial under
    32                                       subdivision thirty-eight of sec-
    33                                       tion two hundred ten
 
    34  (xxvii) Biofuel production           Amount of credit
    35  tax credit under                     under subdivision

    36  subsection (jj)                      thirty-eight of
    37                                       section two hundred ten
 
    38  (xxviii) Clean heating fuel credit   Amount of credit
    39  under subsection (mm)                under subdivision thirty-nine of
    40                                       section two hundred ten
 
    41  (xxix) Credit for rehabilitation     Amount of credit under
    42  of historic properties               subdivision forty of
    43  under subsection (oo)                [subsection] section two hundred
    44                                       ten
 
    45  (xxx) Credit for companies who       Amount of credit under
    46  provide transportation               subdivision forty of
    47  to individuals                       section two hundred ten

        A. 7696                             6
 
     1  with disabilities

     2  under subsection (oo)
 
     3  (xxxi) Small employer health care    Credit under subdivision
     4  credit under subsection (gg)         forty-one of section two
     5                                       hundred ten
 
     6    §  4. Section 606 of the tax law is amended by adding a new subsection
     7  (qq) to read as follows:
     8    (qq) Small employer health care insurance credit.  (1) A taxpayer  who
     9  is  a qualified small employer shall be allowed a credit against the tax
    10  imposed by this article equal to fifteen percent of the premium paid  by
    11  such  employer  for  health insurance during the taxable year. Provided,
    12  however, for those qualified small employers that are required  to  file
    13  schedule  F  with  their annual returns, such credit shall equal fifteen

    14  percent of the premium paid for such health insurance. If the amount  of
    15  the  credit  allowable  under this subsection for any taxable year shall
    16  exceed the taxpayer's tax for such year, the excess may be carried  over
    17  to  the  following year or years and may be deducted from the taxpayer's
    18  tax for such year or years.
    19    (2) For the purposes of this  subsection  "qualified  small  employer"
    20  shall  mean  an  individual  proprietor  who is the sole employee of the
    21  business or an employer with not more than fifty employees:   who  is  a
    22  "small business taxpayer" as defined in paragraph (f) of subdivision one
    23  of section two hundred ten of this chapter.
    24    (3)  For  the purposes of this subsection, the term "health insurance"

    25  means an accident and health insurance policy subject to the  provisions
    26  of  section  three  thousand  two  hundred  sixteen,  three thousand two
    27  hundred twenty-one, four thousand three hundred three or  four  thousand
    28  eight  hundred  one of the insurance law, and article forty-three of the
    29  public health law.
    30    § 5. Section 1456 of the tax law is amended by adding a new subsection
    31  (f-1) to read as follows:
    32    (f-1) (1) A taxpayer who  is  a  qualified  small  employer  shall  be
    33  allowed  a  credit  against  the  tax  imposed  by this article equal to
    34  fifteen percent of the premium paid during the taxable year  for  health
    35  insurance by such employer.
    36    (2)  In  no event shall the credit herein provided for, and carryovers

    37  of such credit, be allowed in an amount which will reduce the tax  paya-
    38  ble  to less than the dollar amount fixed as a minimum tax by subsection
    39  (b) of section fourteen hundred fifty-five of this article. If, however,
    40  the amount of credit or carryovers of such credit,  or  both,  allowable
    41  under  this  subsection  for  any  taxable  year reduces the tax to such
    42  amount, any amount of credit or  carryovers  of  such  credit  thus  not
    43  deductible  in  such  taxable year may be  carried over to the following
    44  year or years and may be deducted from the taxpayer's tax for such  year
    45  or years.
    46    (3) For the purposes of this section the term "qualified small employ-
    47  er"  shall mean an individual proprietor who is the sole employee of the

    48  business or an employer with not more than fifty employees:   who  is  a
    49  "small business taxpayer" as defined in paragraph (f) of subdivision one
    50  of section two hundred ten of this chapter.
    51    (4)  For  the purposes of this subsection, the term "health insurance"
    52  means an accident and health insurance policy subject to the  provisions
    53  of  section  three  thousand  two  hundred  sixteen,  three thousand two
    54  hundred twenty-one, four thousand three hundred three or  four  thousand

        A. 7696                             7
 
     1  eight  hundred  one of the insurance law, and article forty-three of the
     2  public health law.
     3    §  6.  Section 1511 of the tax law is amended by adding a new subdivi-
     4  sion (y) to read as follows:

     5    (y) (1) A taxpayer shall be allowed a credit against the  tax  imposed
     6  by  this article equal to fifteen percent of the premium paid during the
     7  taxable year for health insurance by such employer.
     8    (2) In no event shall the credit herein provided for be allowed in  an
     9  amount  which will reduce the tax payable to less than the minimum fixed
    10  by subdivision (a) of section fifteen hundred two of this  article.  If,
    11  however,  the  amount of credit allowable under this subdivision for any
    12  taxable year reduces the tax to such amount, any amount  of  credit  not
    13  deductible  in  such  taxable  year may be carried over to the following
    14  year or years and may be deducted from the taxpayer's tax for such  year
    15  or years.

    16    (3)  For  the  purposes  of this subdivision the term "qualified small
    17  employer" shall mean an individual proprietor who is the  sole  employee
    18  of  the business or an employer with not more than fifty employees:  who
    19  is a "small business taxpayer" as defined in paragraph (f)  of  subdivi-
    20  sion one of section two hundred ten of this chapter.
    21    (4)  For the purposes of this subdivision, the term "health insurance"
    22  means an accident and health insurance policy subject to the  provisions
    23  of  section  three  thousand  two  hundred  sixteen,  three thousand two
    24  hundred twenty-one, four thousand three hundred three or  four  thousand
    25  eight  hundred  one of the insurance law, and article forty-three of the
    26  public health law.

    27    § 7. This act shall take effect July 1, 2010 and shall apply to  taxa-
    28  ble  years commencing on and after such date; provided, however that the
    29  empire state film production credit under subsection  (gg),  the  empire
    30  state  commercial production credit under subsection (jj) and the credit
    31  for companies who provide transportation to individuals  with  disabili-
    32  ties  under  subsection  (oo) of section 606 of the tax law contained in
    33  section three of this act shall expire on the same date as  provided  in
    34  section  9  of  part  P  of  chapter 60 of the laws of 2004, as amended,
    35  section 10 of part V of chapter 62 of the laws of 2006, as amended,  and
    36  section 5 of chapter 522 of the laws of 2006, as amended, respectively.
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