Amd §§208, 612 & 1503, Tax L; amd §§11-602, 11-652 & 11-1712, NYC Ad Cd
 
Relates to treatment of gains from qualified opportunity zones in calculating taxable income; removes exclusion of gains on property in qualified opportunity zones in calculation of income.
STATE OF NEW YORK
________________________________________________________________________
2170--A
2023-2024 Regular Sessions
IN ASSEMBLY
January 23, 2023
___________
Introduced by M. of A. DINOWITZ, THIELE, REYES, MITAYNES, L. ROSENTHAL,
GALLAGHER, STECK, GLICK, CARROLL, FAHY, KELLES, MAMDANI, KIM, BURGOS,
SEAWRIGHT, CUNNINGHAM, RAGA, CRUZ, WALLACE, OTIS, SOLAGES, SHRESTHA,
HEVESI, SEPTIMO, PAULIN, SHIMSKY, EPSTEIN, BURDICK, O'DONNELL,
FORREST, LEVENBERG, GONZALEZ-ROJAS, ANDERSON, BORES -- Multi-Sponsored
by -- M. of A. SIMON -- read once and referred to the Committee on
Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the tax law and the administrative code of the city of
New York, in relation to treatment of gains from qualified opportunity
zones in calculating taxable income
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax
2 law is amended by adding a new subparagraph 28 to read as follows:
3 (28) the amount of gain excluded from federal gross income for the
4 taxable year by subparagraph (c) of paragraph (1) of subsection (a) of
5 section 1400Z-2 of the internal revenue code.
6 § 2. Subdivision 9 of section 208 of the tax law is amended by adding
7 a new paragraph (u) to read as follows:
8 (u) For tax years beginning on or after January first, two thousand
9 twenty-four, upon the sale or exchange of property with respect to which
10 the taxpayer has made the election under subparagraph (c) of paragraph
11 (1) of subsection (a) of section 1400Z-2 of the internal revenue code,
12 the basis of such property under this article shall be determined as if
13 the taxpayer had not made such election.
14 § 3. Subsection (b) of section 612 of the tax law is amended by adding
15 a new paragraph 44 to read as follows:
16 (44) the amount of gain excluded from federal gross income for the
17 taxable year by subparagraph (c) of paragraph (1) of subsection (a) of
18 section 1400Z-2 of the internal revenue code.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01221-03-3
A. 2170--A 2
1 § 4. Section 612 of the tax law is amended by adding a new subsection
2 (y) to read as follows:
3 (y) Qualified opportunity zones. For tax years beginning on or after
4 January first, two thousand twenty-four, upon the sale or exchange of
5 property with respect to which the taxpayer has made the election under
6 subparagraph (c) of paragraph (1) of subsection (a) of section 1400Z-2
7 of the internal revenue code, the basis of such property under this
8 article shall be determined as if the taxpayer had not made such
9 election.
10 § 5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
11 amended by adding a new subparagraph (AA) to read as follows:
12 (AA) the amount of gain excluded from federal gross income for the
13 taxable year by subparagraph (c) of paragraph (1) of subsection (a) of
14 section 1400Z-2 of the internal revenue code.
15 § 6. Section 1503 of the tax law is amended by adding a new subdivi-
16 sion (d) to read as follows:
17 (d) For tax years beginning on or after January first, two thousand
18 twenty-four, upon the sale or exchange of property with respect to which
19 the taxpayer has made the election under subparagraph (c) of paragraph
20 (1) of subsection (a) of section 1400Z-2 of the internal revenue code,
21 the basis of such property under this article shall be determined as if
22 the taxpayer had not made such election.
23 § 7. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
24 trative code of the city of New York is amended by adding a new subpara-
25 graph 17 to read as follows:
26 (17) the amount of gain excluded from federal gross income for the
27 taxable year by subparagraph (c) of paragraph (1) of subsection (a) of
28 section 1400Z-2 of the internal revenue code.
29 § 8. Section 11-602 of the administrative code of the city of New York
30 is amended by adding a new subdivision 11 to read as follows:
31 11. For tax years beginning on or after January first, two thousand
32 twenty-four, upon the sale or exchange of property with respect to which
33 the taxpayer has made the election under subparagraph (c) of paragraph
34 (1) of subsection (a) of section 1400Z-2 of the internal revenue code,
35 the basis of such property under this article shall be determined as if
36 the taxpayer had not made such election.
37 § 9. Paragraph (a) of subdivision 8 of section 11-652 of the adminis-
38 trative code of the city of New York is amended by adding a new subpara-
39 graph 18 to read as follows:
40 (18) the amount of gain excluded from federal gross income for the
41 taxable year by subparagraph (c) of paragraph (1) of subsection (a) of
42 section 1400Z-2 of the internal revenue code.
43 § 10. Subdivision 8 of section 11-652 of the administrative code of
44 the city of New York is amended by adding a new paragraph (u) to read as
45 follows:
46 (u) For tax years beginning on or after January first, two thousand
47 twenty-four, upon the sale or exchange of property with respect to which
48 the taxpayer has made the election under subparagraph (c) of paragraph
49 (1) of subsection (a) of section 1400Z-2 of the internal revenue code,
50 the basis of such property under this article shall be determined as if
51 the taxpayer had not made such election.
52 § 11. Subdivision (b) of section 11-1712 of the administrative code of
53 the city of New York is amended by adding a new paragraph 40 to read as
54 follows:
A. 2170--A 3
1 (40) the amount of gain excluded from federal gross income for the
2 taxable year by subparagraph (c) of paragraph (1) of subsection (a) of
3 section 1400Z-2 of the internal revenue code.
4 § 12. Section 11-1712 of the administrative code of the city of New
5 York is amended by adding a new subdivision (w) to read as follows:
6 (w) For tax years beginning on or after January first, two thousand
7 twenty-four, upon the sale or exchange of property with respect to which
8 the taxpayer has made the election under subparagraph (c) of paragraph
9 (1) of subsection (a) of section 1400Z-2 of the internal revenue code,
10 the basis of such property under this article shall be determined as if
11 the taxpayer had not made such election.
12 § 13. This act shall take effect immediately and shall apply to taxa-
13 ble years beginning on or after January 1, 2024.