Bill Text: NY A02390 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes business franchise and personal income tax credits for capital investments made in certain small businesses.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A02390 Detail]

Download: New_York-2023-A02390-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2390

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 26, 2023
                                       ___________

        Introduced  by  M.  of  A. J. M. GIGLIO -- read once and referred to the
          Committee on Ways and Means

        AN ACT to amend the tax law, in relation to establishing business  fran-
          chise  and personal income tax credits for certain small businesses in
          a village or small city

          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 59 to read as follows:
     3    59. Small business capital tax credit. (a) A taxpayer shall be allowed
     4  a credit, to be computed as provided in this  subdivision,  against  the
     5  tax imposed by this article. Such credit shall be granted to any taxpay-
     6  er  which  is  a  small business when the small business is located in a
     7  village or in a city with a population of less than thirty-five thousand
     8  as determined by the most recent federal decennial census. The amount of
     9  the credit shall be equal to twenty-five percent of the sum of qualified
    10  investments in such small business, as determined by the commissioner.
    11    (b) For the purposes of this subdivision, the  term  "small  business"
    12  means a business which employs less than fifteen employees.
    13    (c) The credit and carryovers of such credit allowed under this subdi-
    14  vision  for any taxable year shall not, in the aggregate, reduce the tax
    15  due for such year to less than the higher of the amounts  prescribed  in
    16  paragraph  (d)  of  subdivision  one  of section two hundred ten of this
    17  article. However, if the amount of credit or carryovers of such  credit,
    18  or both, allowed under this subdivision for any taxable year reduces the
    19  tax  to  such  amount, any amount of credit or carryovers of such credit
    20  thus not deductible in such taxable year may  be  carried  over  to  the
    21  following  year  or years and may be deducted from the tax for such year
    22  or years.
    23    § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    24  of the tax law is amended by adding a new clause (l) to read as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05483-01-3
        A. 2390                             2

     1  (l) Small business                   Amount of credit under
     2  capital tax credit                   subdivision fifty-nine of
     3  under subsection (ooo)               section two hundred ten-B
     4    §  3. Section 606 of the tax law is amended by adding a new subsection
     5  (ooo) to read as follows:
     6    (ooo) Small business capital tax  credit.  (1)  A  taxpayer  shall  be
     7  allowed a credit, to be computed as provided in this subsection, against
     8  the  tax  imposed  by  this article. Such credit shall be granted to any
     9  taxpayer which is a small business when the small business is located in
    10  a village or in a city with a population of less than thirty-five  thou-
    11  sand  as  determined  by  the most recent federal decennial census.  The
    12  amount of the credit shall be equal to twenty-five percent of the sum of
    13  qualified investments in such  small  business,  as  determined  by  the
    14  commissioner.
    15    (2)  For  the  purposes  of this subsection, the term "small business"
    16  means a business which employs less than fifteen employees.
    17    (3) The credit and  carryovers  of  such  credit  allowed  under  this
    18  subsection  for any taxable year shall not, in the aggregate, reduce the
    19  tax due for such year  to  be  less  than  the  higher  of  the  amounts
    20  prescribed  in  paragraph  (d) of subdivision one of section two hundred
    21  ten of this chapter.  However, if the amount of credit or carryovers  of
    22  such credit, or both, allowed under this subsection for any taxable year
    23  reduces  the  tax  to such amount, any amount of credit or carryovers of
    24  such credit thus not deductible in such taxable year may be carried over
    25  to the following year or years and may be deducted from the tax for such
    26  year or years.
    27    § 4. This act shall take effect on the first of January next  succeed-
    28  ing  the  date  on  which  it shall have become a law and shall apply to
    29  taxable years commencing on and after such date.