STATE OF NEW YORK
________________________________________________________________________
3401--B
2019-2020 Regular Sessions
IN SENATE
February 6, 2019
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Introduced by Sens. GIANARIS, RAMOS, KRUEGER -- read twice and ordered
printed, and when printed to be committed to the Committee on Budget
and Revenue -- reported favorably from said committee and committed to
the Committee on Finance -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
recommitted to the Committee on Budget and Revenue in accordance with
Senate Rule 6, sec. 8 -- 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 investment income
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "opportu-
2 nity zone tax break elimination act".
3 § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as
4 amended by section 5 of part T of chapter 59 of the laws of 2015, is
5 amended to read as follows:
6 (a) (i) The term "investment income" means income, including capital
7 gains in excess of capital losses, from investment capital, to the
8 extent included in computing entire net income, less, (A) in the
9 discretion of the commissioner, any interest deductions allowable in
10 computing entire net income which are directly or indirectly attribut-
11 able to investment capital or investment income, (B) any capital gains
12 deferred or excluded under 26 U.S.C. §1400-z-2, provided, however, that
13 in no case shall investment income exceed entire net income. (ii) If the
14 amount of interest deductions subtracted under subparagraph (i) of this
15 paragraph exceeds investment income, the excess of such amount over
16 investment income must be added back to entire net income. (iii) If the
17 taxpayer's investment income determined without regard to the interest
18 deductions subtracted under subparagraph (i) of this paragraph comprises
19 more than eight percent of the taxpayer's entire net income, investment
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09591-05-0
S. 3401--B 2
1 income determined without regard to such interest deductions cannot
2 exceed eight percent of the taxpayer's entire net income.
3 § 3. Paragraph (a) of subdivision 5 of section 11-652 of the adminis-
4 trative code of the city of New York, as added by section 1 of part D of
5 chapter 60 of the laws of 2015, is amended to read as follows:
6 (a) (i) The term "investment income" means income, including capital
7 gains in excess of capital losses, from investment capital, to the
8 extent included in computing entire net income, less, (A) in the
9 discretion of the commissioner of finance, any interest deductions
10 allowable in computing entire net income which are directly or indirect-
11 ly attributable to investment capital or investment income, (B) any
12 capital gains deferred or excluded under 26 U.S.C §1400-z-2, provided,
13 however, that in no case shall investment income exceed entire net
14 income.
15 (ii) If the amount of interest deductions subtracted under subpara-
16 graph (i) of this paragraph exceeds investment income, the excess of
17 such amount over investment income must be added back to entire net
18 income.
19 (iii) If the taxpayer's investment income determined without regard to
20 the interest deductions subtracted under subparagraph (i) of this para-
21 graph comprises more than eight percent of the taxpayer's entire net
22 income, investment income determined without regard to such interest
23 deductions cannot exceed eight percent of the taxpayer's entire net
24 income.
25 § 4. This act shall take effect immediately and shall apply to taxable
26 years beginning on and after January 1, 2020.
