Bill Text: NY A00902 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the tax law, in relation to a small business electric energy tax credit
Spectrum: Partisan Bill (Democrat 31-0)
Status: (Introduced - Dead) 2010-01-06 - referred to ways and means [A00902 Detail]
Download: New_York-2009-A00902-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
902
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. DelMONTE, BRADLEY, GREENE, SCHIMMINGER, FIELDS,
MILLMAN, SCHROEDER, LUPARDO, COLTON, CUSICK, EDDINGTON, ZEBROWSKI,
GUNTHER, ESPAILLAT, PEOPLES, KOON, JAFFEE, GORDON, HOOPER -- Multi-
Sponsored by -- M. of A. BROOK-KRASNY, CHRISTENSEN, COOK, HEASTIE,
HYER-SPENCER, JOHN, LATIMER, MAGEE, MARKEY, PHEFFER, REILLY,
J. RIVERA, ROBINSON, SWEENEY, WEISENBERG -- 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 of the tax law is amended by adding a new
2 subdivision 41 to read as follows:
3 41. 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.
9 (B) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO MORE THAN NINETEEN FULL
10 TIME EQUIVALENT EMPLOYEES IN NEW YORK STATE, INCLUDING ANY RELATED
11 MEMBERS OR AFFILIATES, (II) NOT BE A SOLE-PROPRIETORSHIP IF SUCH
12 SOLE-PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH
13 SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
14 ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
15 ING ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER
16 ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
17 (C) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL REFER TO
18 ELECTRICAL POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF THE
19 TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
20 ANY SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY BUSINESS
21 LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE STATE
22 OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC ACTIVITY IS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01141-01-9
A. 902 2
1 GENERATED OR COORDINATED THROUGH. (III) THE TERM "RELATED MEMBERS"
2 SHALL HAVE THE SAME MEANING AS SET FORTH IN CLAUSES (A) AND (B) OF
3 SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF SECTION TWO
4 HUNDRED EIGHT OF THIS ARTICLE, AS AMENDED BY SECTION ONE OF PART M OF
5 CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO THOUSAND THREE, AND
6 THE TERM "AFFILIATES" SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF
7 THE SAME AFFILIATED GROUP (AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF
8 THE INTERNAL REVENUE CODE) AS THE TAXPAYER.
9 (D) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
10 THE TAXPAYER FOR BUSINESS RELATED ELECTRICITY USAGE DURING THE TAXPAY-
11 ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
12 PROVIDED TO THE TAXPAYER BY THE TAXPAYER'S ELECTRICITY POWER SERVICE
13 PROVIDER.
14 (E) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
15 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF
16 THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF
17 THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDI-
18 VISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT
19 OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN
20 OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
21 PROVISIONS OF SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
22 HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION TEN HUNDRED EIGHT-
23 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
24 EON.
25 S 2. Section 606 of the tax law is amended by adding a new subsection
26 (qq) to read as follows:
27 (QQ) SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (1) A TAXPAYER THAT IS
28 ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN PARAGRAPH TWO OF THIS
29 SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS
30 ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE PRODUCT (OR PRO
31 RATA SHARE OF THE PRODUCT IN THE CASE OF A PARTNERSHIP) OF TWO CENTS PER
32 KILOWATT HOUR FOR ALL BUSINESS RELATED ELECTRICITY USAGE AT THE TAXPAY-
33 ER'S PRIMARY BUSINESS LOCATION.
34 (2) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO MORE THAN NINETEEN FULL
35 TIME EQUIVALENT EMPLOYEES IN NEW YORK STATE, INCLUDING ANY RELATED
36 MEMBERS OR AFFILIATES, (II) SHALL NOT BE A SOLE-PROPRIETORSHIP IF SUCH
37 SOLE-PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH
38 SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
39 ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
40 ING ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER
41 ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
42 (3) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL REFER TO
43 ELECTRICAL POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF THE
44 TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
45 ANY SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY BUSINESS
46 LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE STATE
47 OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC ACTIVITY IS
48 GENERATED OR COORDINATED THROUGH. (III) THE TERM "RELATED MEMBERS" SHALL
49 HAVE THE SAME MEANING AS SET FORTH IN CLAUSES (A) AND (B) OF SUBPARA-
50 GRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF SECTION TWO HUNDRED
51 EIGHT OF THIS CHAPTER, AS AMENDED BY SECTION ONE OF PART M OF CHAPTER
52 SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO THOUSAND THREE, AND THE TERM
53 "AFFILIATES" SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF THE SAME
54 AFFILIATED GROUP (AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE
55 INTERNAL REVENUE CODE) AS THE TAXPAYER.
A. 902 3
1 (4) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
2 THE TAXPAYER FOR BUSINESS RELATED ELECTRICITY USAGE DURING THE TAXPAY-
3 ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
4 PROVIDED TO THE TAXPAYER BY THE TAXPAYER'S ELECTRICITY POWER SERVICE
5 PROVIDER.
6 (5) IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
7 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
8 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
9 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
10 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
11 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
12 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of
13 the laws of 2008, is amended to read as follows:
14 (B) shall be treated as the owner of a new business with respect to
15 such share if the corporation qualifies as a new business pursuant to
16 paragraph (j) of subdivision twelve of section two hundred ten of this
17 chapter.
18 The corporation's credit base under
19 section two hundred ten or section
20 With respect to the following fourteen hundred fifty-six of this
21 credit under this section: chapter is:
22 Investment tax credit Investment credit base
23 under subsection (a) or qualified
24 rehabilitation
25 expenditures under
26 subdivision twelve of
27 section two hundred ten
28 Empire zone Cost or other basis
29 investment tax credit under subdivision
30 under subsection (j) twelve-B
31 of section two hundred
32 ten
33 Empire zone Eligible wages under
34 wage tax credit subdivision nineteen of
35 under subsection (k) section two hundred ten
36 or subsection (e) of
37 section fourteen hundred
38 fifty-six
39 Empire zone Qualified investments
40 capital tax credit and contributions under
41 under subsection (l) subdivision twenty of
42 section two hundred ten
43 or subsection (d) of
44 section fourteen hundred
45 fifty-six
46 Agricultural property tax Allowable school
47 credit under subsection (n) district property taxes under
48 subdivision twenty-two of
49 section two hundred ten
A. 902 4
1 Credit for employment Qualified first-year wages or
2 of persons with dis- qualified second-year wages
3 abilities under under subdivision
4 subsection (o) twenty-three of section
5 two hundred ten
6 or subsection (f)
7 of section fourteen
8 hundred fifty-six
9 Employment incentive Applicable investment credit
10 credit under subsec- base under subdivision
11 tion (a-1) twelve-D of section two
12 hundred ten
13 Empire zone Applicable investment
14 employment credit under sub-
15 incentive credit under division twelve-C
16 subsection (j-1) of section two hundred ten
17 Alternative fuels credit Cost under subdivision
18 under subsection (p) twenty-four of section two
19 hundred ten
20 Qualified emerging Applicable credit base
21 technology company under subdivision twelve-E
22 employment credit of section two hundred ten
23 under subsection (q)
24 Qualified emerging Qualified investments under
25 technology company subdivision twelve-F of
26 capital tax credit section two hundred ten
27 under subsection (r)
28 Credit for purchase of an Cost of an automated
29 automated external defibrillator external defibrillator under
30 under subsection (s) subdivision twenty-five of
31 section two hundred ten
32 or subsection (j) of section
33 fourteen hundred fifty-six
34 Low-income housing Credit amount under
35 credit under subsection (x) subdivision thirty
36 of section two hundred ten or
37 subsection (l) of section
38 fourteen hundred fifty-six
39 Credit for transportation Amount of credit under sub-
40 improvement contributions division thirty-two of section
41 under subsection (z) two hundred ten or subsection
42 (n) of section fourteen
43 hundred fifty-six
44 QEZE credit for real property Amount of credit under
45 taxes under subsection (bb) subdivision twenty-seven of
46 section two hundred ten or
47 subsection (o) of section
A. 902 5
1 fourteen hundred fifty-six
2 QEZE tax reduction credit Amount of benefit period
3 under subsection (cc) factor, employment increase factor
4 and zone allocation
5 factor (without regard
6 to pro ration) under
7 subdivision twenty-eight of
8 section two hundred ten or
9 subsection (p) of section
10 fourteen hundred fifty-six
11 and amount of tax factor
12 as determined under
13 subdivision (f) of section sixteen
14 Green building credit Amount of green building credit
15 under subsection (y) under subdivision thirty-one
16 of section two hundred ten
17 or subsection (m) of section
18 fourteen hundred fifty-six
19 Credit for long-term Qualified costs under
20 care insurance premiums subdivision twenty-five-a of
21 under subsection (aa) section two hundred ten
22 or subsection (k) of section
23 fourteen hundred fifty-six
24 Brownfield redevelopment Amount of credit
25 credit under subsection under subdivision
26 (dd) thirty-three of section
27 two hundred ten
28 or subsection (q) of
29 section fourteen hundred
30 fifty-six
31 Remediated brownfield Amount of credit under
32 credit for real property subdivision thirty-four
33 taxes for qualified of section two hundred
34 sites under subsection ten or subsection (r) of
35 (ee) section fourteen hundred
36 fifty-six
37 Environmental Amount of credit under
38 remediation subdivision thirty-five of
39 insurance credit under section two hundred
40 subsection (ff) ten or subsection
41 (s) of section
42 fourteen hundred
43 fifty-six
44 Empire state film production Amount of credit for qualified
45 credit under subsection (gg) production costs in production
46 of a qualified film under
47 subdivision thirty-six of
48 section two hundred ten
A. 902 6
1 Qualified emerging Qualifying expenditures and
2 technology company facilities, development activities under
3 operations and training credit subdivision twelve-G of section
4 under subsection (nn) two hundred ten
5 Security training tax Amount of credit
6 credit under under subdivision thirty-seven
7 subsection (ii) of section two hundred ten or
8 under subsection (t) of
9 section fourteen hundred fifty-six
10 Credit for qualified fuel Amount of credit under
11 cell electric generating equipment subdivision thirty-seven
12 expenditures under subsection (g-2) of section two hundred ten
13 or subsection (t) of
14 section fourteen hundred
15 fifty-six
16 Empire state commercial production Amount of credit for qualified
17 credit under subsection (jj) production costs in production
18 of a qualified commercial under
19 subdivision thirty-eight of sec-
20 tion two hundred ten
21 Biofuel production Amount of credit
22 tax credit under under subdivision
23 subsection (jj) thirty-eight of
24 section two hundred ten
25 Clean heating fuel credit Amount of credit under
26 under subsection (mm) subdivision thirty-nine of
27 section two hundred ten
28 Credit for rehabilitation Amount of credit under
29 of historic properties subdivision forty of
30 under subsection (oo) subsection two hundred ten
31 Credit for companies who Amount of credit under
32 provide transportation subdivision forty of
33 to individuals section two hundred ten
34 with disabilities
35 under subsection (oo)
36 SMALL BUSINESS ELECTRIC QUALIFYING ELECTRICITY USAGE
37 ENERGY TAX CREDIT UNDER SUBDIVISION FORTY-ONE
38 UNDER SUBSECTION (QQ) OF SECTION TWO HUNDRED TEN
39 S 4. This act shall take effect immediately and shall apply to taxable
40 years beginning on or after January 1, 2009; provided, however that the
41 empire state film production credit under subsection (gg), the empire
42 state commercial production credit under subsection (jj) and the credit
43 for companies who provide transportation to individuals with disabili-
44 ties under subsection (oo) of section 606 of the tax law contained in
45 section three of this act shall expire on the same date as provided in
46 section 9 of part P of chapter 60 of the laws of 2004, as amended,
47 section 10 of part V of chapter 62 of the laws of 2006, as amended and
48 section 5 of chapter 522 of the laws of 2006, as amended, respectively.
