STATE OF NEW YORK
________________________________________________________________________
5262
2013-2014 Regular Sessions
IN SENATE
May 15, 2013
___________
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to creating a tax credit for
New York state businesses that source materials and supplies manufac-
tured by other New York state businesses
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 47 to read as follows:
3 47. Qualified products local sourcing credit. (a) Businesses subject
4 to tax liability under article nine or nine-A of this chapter, purchas-
5 ing qualified products may claim the qualified products local sourcing
6 tax credit against any such liability at the close of the tax year
7 provided, however, that the unused portion of any tax credit claimed
8 shall not be carried forward and applied in another tax year.
9 (b) For the purposes of this section the following terms shall have
10 the following meanings:
11 (1) "qualified products" shall mean any materials, components, or
12 supplies whether used in the manufacturing process or otherwise that are
13 produced in New York state by a New York state business;
14 (2) "producer" is an individual (whether acting individually or
15 through a cooperative, corporation, partnership, business association,
16 or educational institution) who is a business or manufacturer of goods
17 in New York state, it shall not however include a wholesaler or distrib-
18 utor;
19 (3) "purchaser" is an individual (whether acting individually or
20 through a cooperative, corporation, partnership, business association,
21 or educational institution) who is a business or manufacturer of goods
22 in New York state, it shall not however include a wholesaler or distrib-
23 utor;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09907-02-3
S. 5262 2
1 (4) "net sales" are the total sales of the business subject to tax.
2 (c) The amount of the credit shall be prescribed according to the
3 following schedule:
4 (1) twenty percent of net sales are attributed to qualified products
5 the credit shall be one thousand five hundred dollars.
6 (2) forty percent of net sales are attributed to qualified products
7 the credit shall be three thousand dollars.
8 (3) sixty percent of net sales are attributed to qualified products
9 the credit shall be six thousand dollars.
10 (4) eighty percent of net sales are attributed to qualified products
11 the credit shall be twelve thousand dollars.
12 (5) one hundred percent of net sales are attributed to qualified
13 products the credit shall be twenty-five thousand dollars.
14 (d) (1) Businesses claiming the qualified products local sourcing
15 credit sourcing tax credit shall submit a computer-generated report with
16 tax returns that claim a tax credit.
17 (2) Such report shall include the name of the producer and the phys-
18 ical place of the business where the products are produced.
19 (3) The amount paid by the purchaser to the producer and the amount of
20 units purchased.
21 § 2. This act shall take effect immediately.
