Creates a small business electric energy tax credit; the term "business related electricity usage" shall refer to electrical power usage to further the economic activity of the taxpayer at the primary business location that is clearly delimited from any shared electrical power usage cost.
STATE OF NEW YORK
________________________________________________________________________
6813
2019-2020 Regular Sessions
IN ASSEMBLY
March 20, 2019
___________
Introduced by M. of A. CRESPO -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to a small business electric
energy tax credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210-B of the tax law is amended by adding a new
2 subdivision 53 to read as follows:
3 53. Small business electric energy tax credit. (a) A taxpayer that is
4 eligible under the limitations specified in paragraph (b) of this subdi-
5 vision shall be allowed a credit against the tax imposed by this arti-
6 cle. The amount of the credit shall be equal to the product of two
7 cents per kilowatt hour for all business related electricity usage at
8 the taxpayer's primary business location up to a one thousand dollar
9 limit during the taxable year.
10 (b) An eligible taxpayer shall (i) have no more than nineteen full
11 time equivalent employees in New York state, including any related
12 members or affiliates, (ii) not be a sole-proprietorship if such sole-
13 proprietor's primary business location is sited in or part of such sole-
14 proprietor's place of residence, (iii) not be certified pursuant to
15 article eighteen-B of the general municipal law, and (iv) not be receiv-
16 ing any allocation or award pursuant to any program authorized under
17 article six of the economic development law.
18 (c) (i) The term "business related electricity usage" shall refer to
19 electrical power usage used to further the economic activity of the
20 taxpayer at the primary business location that is clearly delimited from
21 any shared electrical power usage cost. (ii) The term "primary business
22 location" shall mean the physical site of the taxpayer within the state
23 of New York where the majority of the taxpayer's economic activity is
24 generated or coordinated through. (iii) The term "related members"
25 shall have the same meaning as set forth in clauses (A) and (B) of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01640-01-9
A. 6813 2
1 subparagraph one of paragraph (o) of subdivision nine of section two
2 hundred eight of this article, and the term "affiliates" shall mean
3 those corporations that are members of the same affiliated group (as
4 defined in section fifteen hundred four of the internal revenue code) as
5 the taxpayer.
6 (d) The eligible usage level shall be the total kilowatt hour usage of
7 the taxpayer for business related electricity usage during the taxpay-
8 er's taxable year as verified through bills or other form of usage chart
9 provided to the taxpayer by the taxpayer's electricity power service
10 provider.
11 (e) The credit allowed under this subdivision for any taxable year
12 shall not reduce the tax due for such year to less than the higher of
13 the amounts prescribed in paragraph (d) of subdivision one of section
14 two hundred ten of this article. However, if the amount of credit
15 allowed under this subdivision for any taxable year reduces the tax to
16 such amount, any amount of credit not deductible in such taxable year
17 shall be treated as an overpayment of tax to be credited or refunded in
18 accordance with the provisions of section one thousand eighty-six of
19 this chapter. Provided, however, the provisions of subsection (c) of
20 section one thousand eighty-eight of this chapter notwithstanding, no
21 interest shall be paid thereon.
22 § 2. Section 606 of the tax law is amended by adding a new subsection
23 (jjj) to read as follows:
24 (jjj) Small business electric energy tax credit. (1) A taxpayer that
25 is eligible under the limitations specified in paragraph two of this
26 subsection shall be allowed a credit against the tax imposed by this
27 article. The amount of the credit shall be equal to the product (or pro
28 rata share of the product in the case of a partnership) of two cents per
29 kilowatt hour for all business related electricity usage at the taxpay-
30 er's primary business location up to a one thousand dollar limit during
31 the taxable year.
32 (2) An eligible taxpayer shall (i) have no more than nineteen full
33 time equivalent employees in New York state, including any related
34 members or affiliates, (ii) shall not be a sole-proprietorship if such
35 sole-proprietor's primary business location is sited in or part of such
36 sole-proprietor's place of residence, (iii) not be certified pursuant to
37 article eighteen-B of the general municipal law, and (iv) not be receiv-
38 ing any allocation or award pursuant to any program authorized under
39 article six of the economic development law.
40 (3) (i) The term "business related electricity usage" shall refer to
41 electrical power usage used to further the economic activity of the
42 taxpayer at the primary business location that is clearly delimited from
43 any shared electrical power usage cost. (ii) The term "primary business
44 location" shall mean the physical site of the taxpayer within the state
45 of New York where the majority of the taxpayer's economic activity is
46 generated or coordinated through. (iii) The term "related members" shall
47 have the same meaning as set forth in clauses (A) and (B) of subpara-
48 graph one of paragraph (o) of subdivision nine of section two hundred
49 eight of this chapter, and the term "affiliates" shall mean those corpo-
50 rations that are members of the same affiliated group (as defined in
51 section fifteen hundred four of the internal revenue code) as the
52 taxpayer.
53 (4) The eligible usage level shall be the total kilowatt hour usage of
54 the taxpayer for business related electricity usage during the taxpay-
55 er's taxable year as verified through bills or other form of usage chart
A. 6813 3
1 provided to the taxpayer by the taxpayer's electricity power service
2 provider.
3 (5) If the amount of credit allowed under this subsection for any
4 taxable year shall exceed the taxpayer's tax for such year, the excess
5 shall be treated as an overpayment of tax to be credited or refunded in
6 accordance with the provisions of section six hundred eighty-six of this
7 article, provided, however, that no interest shall be paid thereon.
8 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
9 of the tax law is amended by adding a new clause (xliv) to read as
10 follows:
11 (xliv) Small business electricQualifying electricity usage
12 energy tax creditunder subdivision fifty-three
13 under subsection (jjj)of section two hundred ten-B
14 § 4. This act shall take effect on the first of January next succeed-
15 ing the date on which it shall have become a law.
