Relates to providing assistance to small businesses; establishes a small business tax reduction; repeals the NY film tax credits; directs the Empire State Development Corporation to cease and discontinue advertising for the Start-Up NY program.
STATE OF NEW YORK
________________________________________________________________________
4565
2017-2018 Regular Sessions
IN SENATE
February 17, 2017
___________
Introduced by Sen. AKSHAR -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to the business income base
rate and certain small business taxpayers (Part A); to repeal sections
24, 28 and 31 of the tax law, subsections (gg), (jj) and (qq) of
section 606 of the tax law, subdivisions 20, 23 and 32 of section
210-B of the tax law and subdivisions (b) and (c) of section 1201-a of
the tax law, relating to the empire state film production credit, the
empire state commercial production credit, and the empire state film
post production credit (Part B); and to direct the empire state devel-
opment corporation to cease all advertisement and promotional activ-
ities for the Start-Up NY Program (Part C)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act enacts into law major components of legislation to
2 assist small businesses within New York state. Each component is wholly
3 contained within a Part identified as Parts A through C. The effective
4 date for each particular provision contained within such Part is set
5 forth in the last section of such Part. Any provision in any section
6 contained within a Part, including the effective date of the Part, which
7 makes a reference to a section "of this act", when used in connection
8 with that particular component, shall be deemed to mean and refer to the
9 corresponding section of the Part in which it is found. Section four of
10 this act sets forth the general effective date of this act.
11 § 2. This act shall be known and may be cited as the "small business
12 jobs revitalization act".
13 PART A
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04355-01-7
S. 4565 2
1 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of
2 section 210 of the tax law, as amended by section 12 of part A of chap-
3 ter 59 of the laws of 2014, is amended to read as follows:
4 (iv) (A) for taxable years beginning before January first, two thou-
5 sand sixteen, if the business income base is not more than two hundred
6 ninety thousand dollars the amount shall be six and one-half percent of
7 the business income base; if the business income base is more than two
8 hundred ninety thousand dollars but not over three hundred ninety thou-
9 sand dollars the amount shall be the sum of (1) eighteen thousand eight
10 hundred fifty dollars, (2) seven and one-tenth percent of the excess of
11 the business income base over two hundred ninety thousand dollars but
12 not over three hundred ninety thousand dollars and (3) four and thirty-
13 five hundredths percent of the excess of the business income base over
14 three hundred fifty thousand dollars but not over three hundred ninety
15 thousand dollars;
16 (B) for taxable years beginning on or after January first, two thou-
17 sand seventeen and before January first, two thousand eighteen, if the
18 business income base is not more than five hundred thousand dollars the
19 amount shall be three and one-quarter percent of the business income
20 base; if the business income base is more than five hundred thousand
21 dollars but not over six hundred thousand dollars the amount shall be
22 the sum of (1) sixteen thousand two hundred fifty dollars, (2) six and
23 one-half percent of the excess of the business income base over five
24 hundred thousand dollars but not over six hundred thousand dollars and
25 (3) thirty-two and one-half percent of the excess of the business income
26 base over five hundred fifty thousand dollars but not over six hundred
27 thousand dollars;
28 (C) for taxable years beginning on or after January first, two thou-
29 sand eighteen and before January first, two thousand nineteen, if the
30 business income base is not more than five hundred thousand dollars the
31 amount shall be two and nine-tenths percent of the business income base;
32 if the business income base is more than five hundred thousand dollars
33 but not over six hundred thousand dollars the amount shall be the sum of
34 (1) fourteen thousand five hundred dollars, (2) six and one-half percent
35 of the excess of the business income base over five hundred thousand
36 dollars but not over six hundred thousand dollars and (3) thirty-six
37 percent of the excess of the business income base over five hundred
38 fifty thousand dollars but not over six hundred thousand dollars;
39 (D) for taxable years beginning on or after January first, two thou-
40 sand nineteen, if the business income base is not more than five hundred
41 thousand dollars the amount shall be two and one-half percent of the
42 business income base; if the business income base is more than five
43 hundred thousand dollars but not over six hundred thousand dollars the
44 amount shall be the sum of (1) twelve thousand five dollars, (2) six and
45 one-half percent of the excess of the business income base over five
46 hundred thousand dollars but not over six hundred thousand dollars and
47 (3) forty percent of the excess of the business income base over four
48 hundred fifty thousand dollars but not over five hundred thousand
49 dollars.
50 § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
51 added by section 1 of part Y of chapter 59 of the laws of 2013, is
52 amended to read as follows:
53 (39) In the case of a taxpayer who is a small business who has busi-
54 ness income and/or farm income as defined in the laws of the United
55 States, an amount equal to three percent of the net items of income,
56 gain, loss and deduction attributable to such business or farm entering
S. 4565 3
1 into federal adjusted gross income, but not less than zero, for taxable
2 years beginning on or after January first, two thousand thirteen[,] but
3 before January first, two thousand fourteen; an amount equal to three
4 and three-quarters percent of the net items of income, gain, loss and
5 deduction attributable to such business or farm entering into federal
6 adjusted gross income, but not less than zero, for taxable years begin-
7 ning on or after January first, two thousand fourteen[, and] but before
8 January first, two thousand fifteen; an amount equal to five percent of
9 the net items of income, gain, loss and deduction attributable to such
10 business or farm entering into federal adjusted gross income, but not
11 less than zero, for taxable years beginning on or after January first,
12 two thousand fifteen but before January first, two thousand seventeen;
13 an amount equal to ten percent of the net items of income, gain, loss
14 and deduction attributable to such business or farm entering into feder-
15 al adjusted gross income, but not less than zero, for taxable years
16 beginning on or after January first, two thousand seventeen but before
17 January first, two thousand eighteen; an amount equal to fifteen percent
18 of the net items of income, gain, loss and deduction attributable to
19 such business or farm entering into federal adjusted gross income, but
20 not less than zero, for taxable years beginning on or after January
21 first, two thousand eighteen but before January first, two thousand
22 nineteen; and an amount equal to twenty percent of the net items of
23 income, gain, loss and deduction attributable to such business or farm
24 entering into federal adjusted gross income, but not less than zero, for
25 taxable years beginning on or after January first, two thousand nine-
26 teen. Provided that such business or farm income is less than or equal
27 to five hundred thousand dollars. For the purposes of this paragraph,
28 the term small business shall mean a [sole proprietor] business or a
29 farm business who employs one or more persons during the taxable year
30 and who has net business income or net farm income of equal to or less
31 than [two hundred fifty] five hundred thousand dollars. For the purposes
32 of this paragraph, if the taxpayer is a member, partner, or shareholder
33 of a limited liability company, partnership or S-corporation, the
34 taxpayer will only be eligible under this paragraph if the New York
35 source gross income of the limited liability company, partnership or
36 S-corporation does not exceed one million dollars. New York source gross
37 income is the sum of the members, partners, or shareholders shares of
38 federal gross income from the limited liability company, partnership, or
39 S-corporation derived from or connected with New York sources, deter-
40 mined in accordance with the provisions of section six hundred thirty-
41 one of this article as if those provisions and any related provisions
42 expressly referred to a computation of federal gross income from New
43 York sources.
44 § 3. This act shall take effect immediately.
45 PART B
46 Section 1. Sections 24, 28 and 31 of the tax law, section 28 as added
47 by section 2 of part V of chapter 62 of the laws of 2006 and section 31
48 as added by section 12 of part Q of chapter 57 of the laws of 2010, are
49 REPEALED.
50 § 2. Subsections (gg), (jj) and (qq) of section 606 of the tax law,
51 subsection (jj) as added by section 5 of part V of chapter 62 of the
52 laws of 2006 and subsection (qq) as added by section 15 of part Q of
53 chapter 57 of the laws of 2010, are REPEALED.
S. 4565 4
1 § 3. Subdivisions 20, 23 and 32 of section 210-B of the tax law are
2 REPEALED.
3 § 4. Subdivisions (b) and (c) of section 1201-a of the tax law are
4 REPEALED and subdivision (d) is relettered subdivision (b).
5 § 5. This act shall take effect immediately.
6 PART C
7 Section 1. The empire state development corporation shall immediately
8 cease and discontinue all promotional and advertising campaigns for the
9 Start-Up NY Program established pursuant to article 21 of the economic
10 development law. Any remaining funds appropriated for such campaigns
11 shall be returned to the general fund.
12 § 2. This act shall take effect immediately.
13 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
14 sion, section or part of this act shall be adjudged by any court of
15 competent jurisdiction to be invalid, such judgment shall not affect,
16 impair, or invalidate the remainder thereof, but shall be confined in
17 its operation to the clause, sentence, paragraph, subdivision, section
18 or part thereof directly involved in the controversy in which such judg-
19 ment shall have been rendered. It is hereby declared to be the intent of
20 the legislature that this act would have been enacted even if such
21 invalid provisions had not been included herein.
22 § 4. This act shall take effect immediately, provided, however, that
23 the applicable effective date of Parts A through C of this act shall be
24 as specifically set forth in the last section of such Parts.
