Provides a tax credit for businesses in a heightened flood risk zone that purchase flood insurance: 75% of cost for 2014, 50% of cost for 2015, and 25% of cost for 2016.
STATE OF NEW YORK
________________________________________________________________________
3850
2013-2014 Regular Sessions
IN SENATE
February 22, 2013
___________
Introduced by Sens. SAVINO, CARLUCCI, KLEIN, SMITH, VALESKY -- read
twice and ordered printed, and when printed to be committed to the
Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to providing a tax credit for
businesses that purchase flood insurance; and providing for the repeal
of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 46 to read as follows:
3 46. Tax credit for businesses which purchase flood insurance. (a) A
4 qualified taxpayer shall be allowed an annual credit for the purchase of
5 flood insurance. The credit shall be equal to: (i) seventy-five percent
6 of the cost of flood insurance for the business on or after January
7 first, two thousand fourteen; (ii) fifty percent of the cost of flood
8 insurance for the business on or after January first, two thousand
9 fifteen; and (iii) twenty-five percent of the cost of flood insurance
10 for the business on or after January first, two thousand fifteen and
11 before January first, two thousand sixteen.
12 (b) In no event shall the credit under this subdivision reduce the tax
13 payable to less than the dollar amount fixed as a minimum tax by para-
14 graph (d) of subdivision one of this section. However, if the amount of
15 credit allowed under this subdivision for any taxable year would have
16 reduced the tax to such amount, any amount of credit thus not used in
17 such taxable year may be treated as an overpayment of tax to be credited
18 or refunded in accordance with the provisions of section one thousand
19 eighty-six of this chapter.
20 (c) For purposes of this subdivision, "qualified taxpayer" shall
21 include, but not be limited to businesses operating in or out of a resi-
22 dence whose business is located within a heightened flood risk zone and
23 does not currently have flood insurance.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09183-02-3
S. 3850 2
1 § 2. Section 606 of the tax law is amended by adding a new subsection
2 (s-1) to read as follows:
3 (s-1) Credit for annual business purchase of flood insurance. (1) A
4 qualified taxpayer shall be allowed an annual credit as hereinafter
5 provided against the tax imposed by this article for the purchase of
6 flood insurance. The amount of the credit shall be: (i) seventy-five
7 percent of the cost of flood insurance for the business on or after
8 January first, two thousand fourteen; (ii) fifty percent of the cost of
9 flood insurance for the business on or after January first, two thousand
10 fifteen; and (iii) twenty-five percent of the cost of flood insurance
11 for the business on or after January first, two thousand fifteen and
12 before January first, two thousand sixteen.
13 (2) For purposes of this subsection, "qualified taxpayer" shall
14 include, but not be limited to businesses operating in or out of a resi-
15 dence whose business is located within a heightened flood risk zone and
16 does not currently have flood insurance.
17 (3) If the amount of credit allowable under this subsection shall
18 exceed the taxpayer's tax for such year, the excess may be treated as an
19 overpayment of tax to be credited or refunded in accordance with the
20 provisions of section six hundred eighty-six of this article, provided,
21 however, that no interest shall be paid thereon.
22 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
23 of the tax law is amended by adding a new clause (xxxv) to read as
24 follows:
25 (xxxv) Purchase of flood insuranceAmount of credit under
26 by businesses under subsection (s-1)subdivision forty-six of
27 section two hundred ten
28 § 4. The commissioner of taxation and finance shall prescribe rules
29 and regulations necessary to establish the criteria for a heightened
30 flood risk zone and for the implementation of the tax credit for busi-
31 nesses which purchase flood insurance provided by this act.
32 § 5. This act shall take effect on the sixtieth day after it shall
33 have become a law and shall expire December 31, 2016, when upon such
34 date the provisions of this act shall be deemed repealed.
