A04248 Summary:

BILL NOA04248
 
SAME ASNo Same As
 
SPONSORKolb
 
COSPNSRPalmesano, Montesano, Goodell, Raia, Hawley, Barclay, Stec
 
MLTSPNSR
 
Add Art 23 450 - 455, Ec Dev L; add 44 & 207-c, amd 210-B, 601, 606, 612 & 615, Tax L
 
Enacts the "BizBoom program act" which provides a tax exempt benefit to new businesses relocating to or starting up a new business in New York.
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A04248 Actions:

BILL NOA04248
 
02/01/2019referred to economic development
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A04248 Committee Votes:

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A04248 Floor Votes:

There are no votes for this bill in this legislative session.
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A04248 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4248
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 1, 2019
                                       ___________
 
        Introduced  by  M.  of  A.  KOLB,  PALMESANO,  MONTESANO, GOODELL, RAIA,
          HAWLEY, BARCLAY, STEC -- read once and referred to  the  Committee  on
          Economic Development
 
        AN  ACT  to  amend  the  economic  development  law  and the tax law, in
          relation to enacting the BizBoom program act

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  economic  development law is amended by adding a new
     2  article 23 to read as follows:
     3                                 ARTICLE 23
     4                             BIZBOOM PROGRAM ACT
     5  Section 450. Short title.
     6          451. Statement of legislative findings and declaration.
     7          452. Definitions.
     8          453. Eligibility criteria.
     9          454. Application and approval process.
    10          455. Powers and duties of the commissioner.
    11    § 450. Short title. This article shall be known and may  be  cited  as
    12  the "BizBoom program act".
    13    § 451. Statement of legislative findings and declaration. It is hereby
    14  found  and  declared  that  New  York state needs, as a matter of public
    15  policy, to create competitive financial  incentives  for  businesses  to
    16  locate and invest in New York state.  The BizBoom program act is created
    17  to  incentivize  the  siting of new businesses and the creation of busi-
    18  nesses in our state.
    19    This legislation creates the BizBoom program,  which  provides  a  tax
    20  exempt  benefit  to  new  businesses  relocating to or starting up a new
    21  business in New York. The BizBoom tax  exemption  for  qualifying  busi-
    22  nesses is one hundred percent the first year, fifty percent of the busi-
    23  ness  tax  liability  in  the  second  year,  and  a twenty-five percent
    24  exemption in the third year.   This exemption  would  discontinue  after
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04303-01-9

        A. 4248                             2
 
     1  three  years and any participating business that leaves the state before
     2  completing six years of operation would be liable to repay all tax bene-
     3  fits received under  the  program.  These  exemptions  are  designed  to
     4  promote  business  expansion and increase jobs in New York state. At the
     5  same time, the program protects state  taxpayers'  dollars  by  ensuring
     6  that  New  York  provides tax benefits only to businesses that represent
     7  new investment in our state.
     8    § 452. Definitions. For the purposes  of  this  article:  1.  "BizBoom
     9  business" means a business entity that has been determined to be a newly
    10  formed  business in New York, as determined by the commissioner of taxa-
    11  tion and finance and the department.
    12    2. "Certificate of eligibility"  means  the  document  issued  by  the
    13  department  to  an  applicant  that  has  completed an application to be
    14  admitted into the BizBoom program and has been accepted into the program
    15  by the department. Possession of a certificate of eligibility  does  not
    16  by itself guarantee the eligibility to claim the tax exemption.
    17    3.  "Certificate  of  tax  exemption"  means  the document issued to a
    18  participant by the department as authorized by the department  of  taxa-
    19  tion and finance, after the department has verified that the participant
    20  has met all applicable eligibility criteria in this article.
    21    §  453.  Eligibility  criteria.  1. To be a participant in the BizBoom
    22  program, a qualifying business entity shall have not operated  or  shall
    23  not  have  had  nexus  in  New York state prior to the first year of the
    24  implementation of this act and any other  criteria  established  by  the
    25  commissioner  in  regulations  promulgated  pursuant to this article. In
    26  promulgating such regulations the commissioner shall include a review of
    27  such new business creation criteria.
    28    2. For the purposes of this article, in order to  participate  in  the
    29  BizBoom  jobs  program  a business must be in compliance with all worker
    30  protection and environmental laws and regulations. In addition, a  busi-
    31  ness may not owe past due state taxes, local property taxes or any fines
    32  issued by the state or municipality.
    33    §  454.  Application  and  approval process. 1. A business entity must
    34  submit a completed application as prescribed by the commissioner.
    35    2. As part of such application, each business entity must:
    36    (a) Agree to allow the department to share its  tax  information  with
    37  the department of labor and department of taxation and finance. However,
    38  any information shared as a result of this agreement shall not be avail-
    39  able for disclosure or inspection under the state freedom of information
    40  law.
    41    (b)  Agree to allow the department of labor and department of taxation
    42  and finance to share its tax and employer information with  the  depart-
    43  ment.    However,  any  information shared as a result of this agreement
    44  shall not be available for disclosure  or  inspection  under  the  state
    45  freedom of information law.
    46    (c)  Allow  the  department and its agents access to any and all books
    47  and records the department may require to monitor compliance.
    48    (d) Provide the following information to the department upon request:
    49    (i) a plan outlining the schedule for job creation and investments;
    50    (ii) unemployment insurance quarterly returns, real property tax bills
    51  and audited financial statements;
    52    (iii) the amount and description of projected tax liability for  which
    53  it plans to claim the BizBoom tax exemptions; and
    54    (iv)  the  employer  identification or social security numbers for all
    55  related persons to the applicant, including those of any  members  of  a
    56  limited liability company or partners in a partnership.

        A. 4248                             3
 
     1    (e)  Certify,  under  penalty  of  perjury,  that it is in substantial
     2  compliance with all environmental, worker protection, and local,  state,
     3  and federal tax laws.
     4    3.  After  reviewing  a  business  entity's  completed application and
     5  determining that the business entity will meet the conditions set  forth
     6  in  section four hundred fifty-three of this article, the department may
     7  admit the applicant into the program and provide the  applicant  with  a
     8  certificate of eligibility.
     9    4.  In order to become a participant in the program, an applicant must
    10  submit evidence of being a newly formed business entity in such form  as
    11  the  commissioner may prescribe. After reviewing such evidence and find-
    12  ing it sufficient, the department  shall  certify  the  applicant  as  a
    13  participant   and  issue  to  that  participant  a  certificate  of  tax
    14  exemption.
    15    5. A participant may claim tax benefits commencing in the first  taxa-
    16  ble  year  that  the  business  entity  receives  a  certificate  of tax
    17  exemption. A participant may  claim  a  tax  exemption  of  one  hundred
    18  percent  of  the  tax  liability  in  the first year of operation, fifty
    19  percent exemption of the business tax liability in the  second  year  of
    20  operation,  and  a  twenty-five  percent  exemption  of the business tax
    21  liability in the third year of operation, provided that the  participant
    22  demonstrates  to  the department that it continues to satisfy the eligi-
    23  bility criteria specified in section four hundred  fifty-three  of  this
    24  article  and  subdivision  two  of this section in each of those taxable
    25  years.
    26    § 455. Powers and duties of  the  commissioner.  1.  The  commissioner
    27  shall  promulgate  regulations  establishing  an application process and
    28  eligibility criteria, that will be applied consistent with the  purposes
    29  of this article.
    30    2.  The  commissioner  shall,  in  consultation with the department of
    31  taxation and finance, develop a certificate of tax exemption that  shall
    32  be issued by the commissioner to participants. Participants must include
    33  the  certificate  of  tax exemption with their tax return to receive any
    34  tax benefits under this article.
    35    3. The commissioner shall, in  consultation  with  the  department  of
    36  taxation  and  finance and the department of labor, determine the eligi-
    37  bility of any applicant applying for entry into the  program  and  shall
    38  remove  any  participant from the program for failing to meet any of the
    39  requirements set forth in section  four  hundred  fifty-three  and  four
    40  hundred fifty-four of this article.
    41    §  2.  The  tax  law  is amended by adding a new section 44 to read as
    42  follows:
    43    § 44. BizBoom program exemption. (a) General.  A taxpayer  subject  to
    44  tax  under  articles  nine-A  and  twenty-two  of  this chapter shall be
    45  allowed an exemption against such tax, allowable for up to three consec-
    46  utive taxable years, is provided as follows:
    47    (1) one hundred percent exemption in year one of operation;
    48    (2) fifty percent exemption in year two of operation; and
    49    (3) twenty-five percent exemption in year three of operation.
    50    (b) To be eligible for the BizBoom  program  exemption,  the  taxpayer
    51  shall  have  been issued a "certificate of tax exemption" by the depart-
    52  ment of economic development pursuant to  subdivision  four  of  section
    53  four  hundred  fifty-four of the economic development law, which certif-
    54  icate shall set forth the amount of each exemption component that may be
    55  claimed for the taxable year. A taxpayer may claim  such  exemption  for
    56  three  consecutive  taxable  years  commencing in the first taxable year

        A. 4248                             4
 
     1  that the taxpayer receives a certificate of tax exemption. The  taxpayer
     2  shall  be  allowed  to  claim  only  the percentage amount listed on the
     3  certificate of tax exemption for that  taxable  year.  Such  certificate
     4  should  be attached to the taxpayer's return. No cost or expense paid or
     5  incurred by the taxpayer shall be the basis for more than one  component
     6  of this exemption or any other tax exemption.
     7    (c)  Exemption recapture. If a certificate of eligibility or a certif-
     8  icate of tax exemption issued by the department of economic  development
     9  under  article  twenty-two of the economic development law is revoked by
    10  such department, the amount of exemption described in this  section  and
    11  claimed  by the taxpayer prior to that revocation shall be added back to
    12  income in the taxable year in which any such revocation becomes final.
    13    § 3. The tax law is amended by adding a new section 207-c to  read  as
    14  follows:
    15    § 207-c. Exemption of BizBoom program participants. This article shall
    16  not  apply  to  any business entity which is a qualified BizBoom partic-
    17  ipant as provided by section forty-four of this chapter.
    18    § 4. Section 210-B of the tax law is amended by adding a new  subdivi-
    19  sion 53 to read as follows:
    20    53.  BizBoom program exemption. (a) Allowance of exemption. A taxpayer
    21  will be allowed an exemption, to be  computed  as  provided  in  section
    22  forty-four of this chapter, against the tax imposed by this article.
    23    (b)  Application of exemption. The exemption allowed under this subdi-
    24  vision for any taxable year may not reduce the tax due for such year  to
    25  less  than  the amount prescribed in paragraph (d) of subdivision one of
    26  section two hundred ten of this  article.  However,  if  the  amount  of
    27  exemption  allowed  under  this subdivision for any taxable year reduces
    28  the tax to such amount, any amount of exemption thus not  deductible  in
    29  such  taxable  year  will  be  treated  as  an  overpayment of tax to be
    30  exempted or refunded in accordance with the provisions  of  section  one
    31  thousand  eighty-six  of this chapter. Provided, however, the provisions
    32  of subsection (c) of section one thousand eighty-eight of  this  chapter
    33  notwithstanding, no interest will be paid thereon.
    34    §  5. Section 601 of the tax law is amended by adding a new subsection
    35  (j) to read as follows:
    36    (j)  BizBoom  program  participants.  A  qualifying  business  entity,
    37  participating  in  the BizBoom program pursuant to article twenty-two of
    38  the economic development law, which is taxable as a business entity  for
    39  federal income tax purposes shall not be subject to tax under this arti-
    40  cle;  subject to the limitation as provided for by section forty-four of
    41  this chapter.
    42    § 6. Section 606 of the tax law is amended by adding a new  subsection
    43  (jjj) to read as follows:
    44    (jjj)  BizBoom  program  participants.  Credits  allowable  under this
    45  section that a taxpayer is eligible for that relate to the business will
    46  be reduced by one hundred percent in the first year of operation,  fifty
    47  percent  in the second year of operation, and twenty-five percent in the
    48  third year of operation.
    49    § 7. Subsection (c) of section 612 of the tax law is amended by adding
    50  a new paragraph 43 to read as follows:
    51    (43) Business income, to the extent includible  in  gross  income  for
    52  federal  income  tax  purposes,  if the taxpayer is authorized under the
    53  BizBoom  program;  one  hundred  percent  of  business  income  will  be
    54  subtracted from federally adjusted gross income in the first year, fifty
    55  percent in the second year, and twenty-five percent in the third year.

        A. 4248                             5

     1    § 8. Subsection (c) of section 615 of the tax law is amended by adding
     2  a new paragraph 10 to read as follows:
     3    (10)  the  amount  of  any  federal deduction for any business related
     4  expense for a taxpayer authorized under  the  BizBoom  program  will  be
     5  reduced  by  one hundred percent in the first year, fifty percent in the
     6  second year, and twenty-five percent in the third year.
     7    § 9. Notwithstanding any other provision of law, rule  or  regulation,
     8  any and all application fees related to the creation of a business enti-
     9  ty shall be reduced by fifty percent.
    10    § 10. This act shall take effect January 1, 2020.
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