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
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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
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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
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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
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1 with disabilities
2 under subsection (oo)
3 (xxxi) Small employer health careCredit 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.
