Bill Text: NY A03186 | 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 (Republican 27-1)
Status: (Introduced - Dead) 2010-07-01 - held for consideration in ways and means [A03186 Detail]
Download: New_York-2009-A03186-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 3186 2009-2010 Regular Sessions I N A S S E M B L Y January 23, 2009 ___________ Introduced by M. of A. O'MARA, REILICH, TEDISCO, KOLB, MOLINARO, McKEV- ITT -- Multi-Sponsored by -- M. of A. BACALLES, BALL, BARCLAY, BURLING, BUTLER, CONTE, CROUCH, DUPREY, ERRIGO, FINCH, HAWLEY, P. LOPEZ, MILLER, OAKS, QUINN, RAIA, SALADINO, SAYWARD, SCOZZAFAVA, SPANO, THIELE, TOWNSEND, WALKER -- 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: 10 (I) HAVE NO MORE THAN TWENTY FULL TIME EQUIVALENT EMPLOYEES IN NEW 11 YORK STATE, INCLUDING ANY RELATED MEMBERS OR AFFILIATES; 12 (II) NOT BE A SOLE-PROPRIETORSHIP IF SUCH SOLE-PROPRIETOR'S PRIMARY 13 BUSINESS LOCATION IS SITED IN OR PART OF SUCH SOLE-PROPRIETOR'S PLACE OF 14 RESIDENCE; 15 (III) NOT BE CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL 16 MUNICIPAL LAW; AND 17 (IV) NOT BE RECEIVING ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM 18 AUTHORIZED UNDER ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW. 19 (C) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL REFER TO 20 ELECTRICAL POWER USAGE USED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION 21 TO FURTHER THE ECONOMIC ACTIVITY OF THE TAXPAYER AT THE PRIMARY BUSINESS EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01141-03-9 A. 3186 2 1 LOCATION THAT IS CLEARLY DELIMITED FROM ANY SHARED ELECTRICAL POWER 2 USAGE COST. 3 (II) THE TERM "PRIMARY BUSINESS LOCATION" SHALL MEAN THE PHYSICAL SITE 4 OF THE TAXPAYER WITHIN THE STATE OF NEW YORK WHERE THE MAJORITY OF THE 5 TAXPAYER'S ECONOMIC ACTIVITY IS GENERATED OR COORDINATED THROUGH. 6 (III) THE TERM "RELATED MEMBERS" SHALL HAVE THE SAME MEANING AS SET 7 FORTH IN CLAUSES (A) AND (B) OF SUBPARAGRAPH ONE OF PARAGRAPH (O) OF 8 SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE, AS 9 AMENDED BY SECTION ONE OF PART M OF CHAPTER SIX HUNDRED EIGHTY-SIX OF 10 THE LAWS OF TWO THOUSAND THREE, AND THE TERM "AFFILIATES" SHALL MEAN 11 THOSE CORPORATIONS THAT ARE MEMBERS OF THE SAME AFFILIATED GROUP (AS 12 DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE) AS 13 THE TAXPAYER. 14 (D) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF 15 THE TAXPAYER FOR BUSINESS RELATED ELECTRICITY USAGE DURING THE TAXPAY- 16 ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART 17 PROVIDED TO THE TAXPAYER BY THE TAXPAYER'S ELECTRICITY POWER SERVICE 18 PROVIDER. 19 (E) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR 20 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF 21 THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF 22 THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDI- 23 VISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT 24 OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN 25 OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE 26 PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, 27 HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT- 28 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER- 29 EON. 30 S 2. Section 606 of the tax law is amended by adding a new subsection 31 (qq) to read as follows: 32 (QQ) SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (1) A TAXPAYER THAT IS 33 ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN PARAGRAPH TWO OF THIS 34 SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS 35 ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE PRODUCT (OR PRO 36 RATA SHARE OF THE PRODUCT IN THE CASE OF A PARTNERSHIP) OF TWO CENTS PER 37 KILOWATT HOUR FOR ALL BUSINESS RELATED ELECTRICITY USAGE AT THE TAXPAY- 38 ER'S PRIMARY BUSINESS LOCATION. 39 (2) AN ELIGIBLE TAXPAYER SHALL: 40 (I) HAVE NO MORE THAN TWENTY FULL TIME EQUIVALENT EMPLOYEES IN NEW 41 YORK STATE, INCLUDING ANY RELATED MEMBERS OR AFFILIATES; 42 (II) SHALL NOT BE A SOLE-PROPRIETORSHIP IF SUCH SOLE-PROPRIETOR'S 43 PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH SOLE-PROPRIETOR'S 44 PLACE OF RESIDENCE; 45 (III) NOT BE CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL 46 MUNICIPAL LAW; AND 47 (IV) NOT BE RECEIVING ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM 48 AUTHORIZED UNDER ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW. 49 (3) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL REFER TO 50 ELECTRICAL POWER USAGE USED AFTER THE EFFECTIVE DATE OF THIS SUBSECTION 51 TO FURTHER THE ECONOMIC ACTIVITY OF THE TAXPAYER AT THE PRIMARY BUSINESS 52 LOCATION THAT IS CLEARLY DELIMITED FROM ANY SHARE ELECTRICAL POWER USAGE 53 COST. 54 (II) THE TERM "PRIMARY BUSINESS LOCATION" SHALL MEAN THE PHYSICAL SITE 55 OF THE TAXPAYER WITHIN THE STATE OF NEW YORK WHERE THE MAJORITY OF THE 56 TAXPAYER'S ECONOMIC ACTIVITY IS GENERATED OR COORDINATED THROUGH. A. 3186 3 1 (III) THE TERM "RELATED MEMBERS" SHALL HAVE THE SAME MEANING AS SET 2 FORTH IN CLAUSES (A) AND (B) OF SUBPARAGRAPH ONE OF PARAGRAPH (O) OF 3 SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER, AS 4 AMENDED BY SECTION ONE OF PART M OF CHAPTER SIX HUNDRED EIGHTY-SIX OF 5 THE LAWS OF TWO THOUSAND THREE, AND THE TERM "AFFILIATES" SHALL MEAN 6 THOSE CORPORATIONS THAT ARE MEMBERS OF THE SAME AFFILIATED GROUP (AS 7 DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE) AS 8 THE TAXPAYER. 9 (4) 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 (5) IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY 15 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS 16 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN 17 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS 18 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. 19 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 20 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of 21 the laws of 2008, is amended to read as follows: 22 (B) shall be treated as the owner of a new business with respect to 23 such share if the corporation qualifies as a new business pursuant to 24 paragraph (j) of subdivision twelve of section two hundred ten of this 25 chapter. 26 The corporation's credit base under 27 section two hundred ten or section 28 With respect to the following fourteen hundred fifty-six of this 29 credit under this section: chapter is: 30 (I) Investment tax credit Investment credit base 31 under subsection (a) or qualified 32 rehabilitation 33 expenditures under 34 subdivision twelve of 35 section two hundred ten 36 (II) Empire zone Cost or other basis 37 investment tax credit under subdivision 38 under subsection (j) twelve-B 39 of section two hundred 40 ten 41 (III) Empire zone Eligible wages under 42 wage tax credit subdivision nineteen of 43 under subsection (k) section two hundred ten 44 or subsection (e) of 45 section fourteen hundred 46 fifty-six 47 (IV) Empire zone Qualified investments 48 capital tax credit and contributions under 49 under subsection (l) subdivision twenty of 50 section two hundred ten 51 or subsection (d) of A. 3186 4 1 section fourteen hundred 2 fifty-six 3 (V) Agricultural property tax Allowable school 4 credit under subsection (n) district property taxes under 5 subdivision twenty-two of 6 section two hundred ten 7 (VI) Credit for employment Qualified first-year wages or 8 of persons with dis- qualified second-year wages 9 abilities under under subdivision 10 subsection (o) twenty-three of section 11 two hundred ten 12 or subsection (f) 13 of section fourteen 14 hundred fifty-six 15 (VII) Employment incentive Applicable investment credit 16 credit under subsec- base under subdivision 17 tion (a-1) twelve-D of section two 18 hundred ten 19 (VIII) Empire zone Applicable investment 20 employment credit under sub- 21 incentive credit under division twelve-C 22 subsection (j-1) of section two hundred ten 23 (IX) Alternative fuels credit Cost under subdivision 24 under subsection (p) twenty-four of section two 25 hundred ten 26 (X) Qualified emerging Applicable credit base 27 technology company under subdivision twelve-E 28 employment credit of section two hundred ten 29 under subsection (q) 30 (XI) Qualified emerging Qualified investments under 31 technology company subdivision twelve-F of 32 capital tax credit section two hundred ten 33 under subsection (r) 34 (XII) Credit for purchase of an Cost of an automated 35 automated external defibrillator external defibrillator under 36 under subsection (s) subdivision twenty-five of 37 section two hundred ten 38 or subsection (j) of section 39 fourteen hundred fifty-six 40 (XIII) Low-income housing Credit amount under 41 credit under subsection (x) subdivision thirty 42 of section two hundred ten or 43 subsection (l) of section 44 fourteen hundred fifty-six A. 3186 5 1 (XIV) Credit for transportation Amount of credit under sub- 2 improvement contributions division thirty-two of section 3 under subsection (z) two hundred ten or subsection 4 (n) of section fourteen 5 hundred fifty-six 6 (XV) QEZE credit for real property Amount of credit under 7 taxes under subsection (bb) subdivision twenty-seven of 8 section two hundred ten or 9 subsection (o) of section 10 fourteen hundred fifty-six 11 (XVI) QEZE tax reduction credit Amount of benefit period 12 under subsection (cc) factor, employment increase factor 13 and zone allocation 14 factor (without regard 15 to pro ration) under 16 subdivision twenty-eight of 17 section two hundred ten or 18 subsection (p) of section 19 fourteen hundred fifty-six 20 and amount of tax factor 21 as determined under 22 subdivision (f) of section sixteen 23 (XVII) Green building credit Amount of green building credit 24 under subsection (y) under subdivision thirty-one 25 of section two hundred ten 26 or subsection (m) of section 27 fourteen hundred fifty-six 28 (XVIII) Credit for long-term Qualified costs under 29 care insurance premiums subdivision twenty-five-a of 30 under subsection (aa) section two hundred ten 31 or subsection (k) of section 32 fourteen hundred fifty-six 33 (XIX) Brownfield redevelopment Amount of credit 34 credit under subsection under subdivision 35 (dd) thirty-three of section 36 two hundred ten 37 or subsection (q) of 38 section fourteen hundred 39 fifty-six 40 (XX) Remediated brownfield Amount of credit under 41 credit for real property subdivision thirty-four 42 taxes for qualified of section two hundred 43 sites under subsection ten or subsection (r) of 44 (ee) section fourteen hundred 45 fifty-six 46 (XXI) Environmental Amount of credit under 47 remediation subdivision thirty-five of 48 insurance credit under section two hundred 49 subsection (ff) ten or subsection A. 3186 6 1 (s) of section 2 fourteen hundred 3 fifty-six 4 (XXII) Empire state film production Amount of credit for qualified 5 credit under subsection (gg) production costs in production 6 of a qualified film under 7 subdivision thirty-six of 8 section two hundred ten 9 (XXIII) Qualified emerging Qualifying expenditures and 10 technology company facilities, development activities under 11 operations and training credit subdivision twelve-G of section 12 under subsection (nn) two hundred ten 13 (XXIV) Security training tax Amount of credit 14 credit under under subdivision thirty-seven 15 subsection (ii) of section two hundred ten or 16 under subsection (t) of 17 section fourteen hundred fifty-six 18 (XXV) Credit for qualified fuel Amount of credit under 19 cell electric generating equipment subdivision thirty-seven 20 expenditures under subsection (g-2) of section two hundred ten 21 or subsection (t) of 22 section fourteen hundred 23 fifty-six 24 (XXVI) Empire state commercial Amount of credit for qualified 25 production credit under production costs in production 26 subsection (jj) of a qualified commercial under 27 subdivision thirty-eight of section 28 two hundred ten 29 (XXVII) Biofuel production Amount of credit 30 tax credit under under subdivision 31 subsection (jj) thirty-eight of 32 section two hundred ten 33 (XXVIII) Clean heating fuel credit Amount of credit 34 under subsection (mm) under subdivision thirty-nine of 35 section two hundred ten 36 (XXIX) Credit for rehabilitation Amount of credit under 37 of historic properties subdivision forty of 38 under subsection (oo) subsection two hundred ten 39 (XXX) Credit for companies who Amount of credit under 40 provide transportation subdivision forty of 41 to individuals section two hundred ten 42 with disabilities 43 under subsection (oo) 44 (XXXI) SMALL BUSINESS ELECTRICITY QUALIFYING ELECTRICITY USAGE 45 ENERGY CREDIT UNDER SUBSECTION CREDIT UNDER SUBDIVISION FORTY-ONE 46 (QQ) OF SECTION TWO HUNDRED TEN A. 3186 7 1 S 4. This act shall take effect immediately and shall apply to taxable 2 years beginning on or after January 1, 2009; provided, however that the 3 empire state film production credit under subsection (gg), the empire 4 state commercial production credit under subsection (jj) and the credit 5 for companies who provide transportation to individuals with disabili- 6 ties under subsection (oo) of section 606 of the tax law contained in 7 section three of this act shall expire on the same date as provided in 8 section 9 of part P of chapter 60 of the laws of 2004, as amended, 9 section 10 of part V of chapter 62 of the laws of 2006, and section 5 of 10 chapter 522 of the laws of 2006, as amended, respectively.