Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.
STATE OF NEW YORK
________________________________________________________________________
604--B
2021-2022 Regular Sessions
IN SENATE(Prefiled)
January 6, 2021
___________
Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing business fran-
chise and personal income tax credits for certain businesses which
contract with the state or political subdivisions thereof and in unre-
lated contracts, also with minority and women-owned business enter-
prises
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 28 to read as follows:
3 28. Minority and women-owned business employment incentive credit. (a)
4 General. A taxpayer shall be allowed a credit, to be computed as
5 provided in this subdivision, against the tax imposed by this article
6 for a certain portion of the consideration paid to a minority or women-
7 owned business enterprise pursuant to a contract for the provision of
8 goods or services. The credit provided for in this subdivision shall be
9 allowed with respect to the tax year in which the consideration is paid
10 to the minority or women-owned business enterprise.
11 (b) Definitions. For the purposes of this subdivision, the following
12 terms shall mean:
13 (i) "Government agency" means a state agency or a state authority as
14 defined in subdivision eleven of section three hundred ten of the execu-
15 tive law, or a political subdivision as defined in subdivision one of
16 section one hundred of the general municipal law.
17 (ii) "Minority or women-owned business enterprise" means a minority-
18 owned business enterprise as defined in subdivision seven of section
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04914-03-1
S. 604--B 2
1 three hundred ten of the executive law or a women-owned business enter-
2 prise as defined in subdivision fifteen of section three hundred ten of
3 the executive law.
4 (c) Computation. The credit authorized by this subdivision shall be
5 equal to one-third of all expenditures paid by the taxpayer to a minori-
6 ty or women-owned business enterprise pursuant to a contract for the
7 provision of goods and services during the tax year, provided that such
8 contract was not subject to the provisions of article fifteen-A of the
9 executive law or any other provision of law mandating contracts with a
10 minority or women-owned business, and the taxpayer is not a minority or
11 women-owned business enterprise. Furthermore, the amount of such credit
12 shall not exceed the lesser of fifteen thousand dollars or five percent
13 of all consideration paid to the taxpayer during the tax year pursuant
14 to contracts with government agencies for the provision of goods or
15 services. For companies with no contracts with government agencies, the
16 amount of the credit shall not exceed fifteen thousand dollars.
17 (d) Carryover. In no event shall the credit authorized by this subdi-
18 vision be allowed in an amount which shall reduce the tax payable to
19 less than the fixed dollar minimum amount prescribed in paragraph (d) of
20 subdivision one of section two hundred ten of this article. Provided,
21 however, that if the amount of credit allowed under this subdivision for
22 any taxable year reduces the tax to such amount or if the taxpayer
23 otherwise pays tax based on the fixed dollar minimum amount, any amount
24 of credit not deductible in such taxable year may be carried over to the
25 following year or years and may be deducted from the taxpayer's tax for
26 such year or years.
27 (e) The aggregate amount of tax credits allowed under this subdivision
28 and subsection (nnn) of section six hundred six of this chapter in any
29 calendar year statewide shall be five million dollars. Such aggregate
30 amount of credits shall be allocated pursuant to rules and regulations
31 promulgated by the commissioner.
32 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
33 of the tax law is amended by adding a new clause (xlvi) to read as
34 follows:
35 (xlvi) Minority andAmount of credit
36 women-owned businessunder subdivision
37 employment incentivetwenty-eight of
38 credit undersection two
39 subsection (nnn)hundred ten-B
40 § 3. Section 606 of the tax law is amended by adding a new subsection
41 (nnn) to read as follows:
42 (nnn) Minority and women-owned business employment incentive credit.
43 (1) General. A taxpayer shall be allowed a credit to be computed as
44 provided in this subsection, against the tax imposed by this article for
45 a certain portion of the consideration paid to a minority or women-owned
46 business enterprise pursuant to a contract for the provision of goods or
47 services. The credit provided for in this subsection shall be allowed
48 with respect to the tax year in which the consideration is paid to the
49 minority or women-owned business enterprise.
50 (2) Definitions. For the purposes of this subsection, the following
51 terms shall mean:
52 (i) "Government agency" means a state agency or a state authority as
53 defined in subdivision eleven of section three hundred ten of the execu-
54 tive law, or a political subdivision as defined in subdivision one of
55 section one hundred of the general municipal law.
S. 604--B 3
1 (ii) "Minority or women-owned business enterprise" means a minority-
2 owned business enterprise as defined in subdivision seven of section
3 three hundred ten of the executive law or a women-owned business enter-
4 prise as defined in subdivision fifteen of section three hundred ten of
5 the executive law.
6 (3) Computation. The credit authorized by this subsection shall be
7 equal to one-third of all expenditures paid by the taxpayer to a minori-
8 ty or women-owned business enterprise pursuant to a contract for the
9 provision of goods and services during the tax year, provided that such
10 contract was not subject to the provisions of article fifteen-A of the
11 executive law or any other provision of law mandating contracts with a
12 minority or women-owned business, and the taxpayer is not a minority or
13 women-owned business enterprise. Furthermore, the amount of such credit
14 shall not exceed the lesser of fifteen thousand dollars or five percent
15 of all consideration paid to the taxpayer during the tax year pursuant
16 to contracts with government agencies for the provision of goods or
17 services. For companies with no contracts with government agencies, the
18 amount of the credit shall not exceed fifteen thousand dollars.
19 (4) Carryover. If the amount of credit provided by this subsection for
20 any taxable year exceeds the taxpayer's tax for such year, the excess
21 may be carried over to the following year or years, and may be deducted
22 from the taxpayer's tax for such year or years.
23 (5) The aggregate amount of tax credits allowed under this subsection
24 and subdivision twenty-eight of section two hundred ten-B of this chap-
25 ter in any calendar year statewide shall be five million dollars. Such
26 aggregate amount of credits shall be allocated pursuant to rules and
27 regulations promulgated by the commissioner.
28 § 4. This act shall take effect on the first of January next succeed-
29 ing the date on which it shall have become a law and shall apply to tax
30 years commencing on or after such date.
