Bill Text: NY A03828 | 2011-2012 | General Assembly | Introduced
Bill Title: Provides that property principally used in the ordinary course of the taxpayer's trade or business utilizing textile remanufacturing technologies shall be allowed a textile remanufacturing investment tax credit; defines textile remanufacturing technologies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-04 - referred to ways and means [A03828 Detail]
Download: New_York-2011-A03828-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
3828
2011-2012 Regular Sessions
I N A S S E M B L Y
January 27, 2011
___________
Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a textile
remanufacturing investment tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subparagraph (i) of paragraph (b) of subdivision 12 of
2 section 210 of the tax law, as amended by chapter 637 of the laws of
3 2008, is amended to read as follows:
4 (i) A credit shall be allowed under this subdivision with respect to
5 tangible personal property and other tangible property, including build-
6 ings and structural components of buildings, which are: depreciable
7 pursuant to section one hundred sixty-seven of the internal revenue
8 code, have a useful life of four years or more, are acquired by purchase
9 as defined in section one hundred seventy-nine (d) of the internal
10 revenue code, have a situs in this state and are (A) principally used by
11 the taxpayer in the production of goods by manufacturing, processing,
12 assembling, refining, mining, extracting, farming, agriculture, horti-
13 culture, floriculture, viticulture or commercial fishing, (B) industrial
14 waste treatment facilities or air pollution control facilities, used in
15 the taxpayer's trade or business, (C) research and development property,
16 (D) principally used in the ordinary course of the taxpayer's trade or
17 business as a broker or dealer in connection with the purchase or sale
18 (which shall include but not be limited to the issuance, entering into,
19 assumption, offset, assignment, termination, or transfer) of stocks,
20 bonds or other securities as defined in section four hundred seventy-
21 five (c)(2) of the Internal Revenue Code, or of commodities as defined
22 in section four hundred seventy-five (e) of the Internal Revenue Code,
23 (E) principally used in the ordinary course of the taxpayer's trade or
24 business of providing investment advisory services for a regulated
25 investment company as defined in section eight hundred fifty-one of the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05385-01-1
A. 3828 2
1 Internal Revenue Code, or lending, loan arrangement or loan origination
2 services to customers in connection with the purchase or sale (which
3 shall include but not be limited to the issuance, entering into, assump-
4 tion, offset, assignment, termination, or transfer) of securities as
5 defined in section four hundred seventy-five (c)(2) of the Internal
6 Revenue Code, (F) principally used in the ordinary course of the taxpay-
7 er's business as an exchange registered as a national securities
8 exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi-
9 ties Exchange Act of 1934 or a board of trade as defined in [section
10 1410(a)(1) of the New York Not-for-Profit Corporation Law] SUBPARAGRAPH
11 ONE OF PARAGRAPH (A) OF SECTION FOURTEEN HUNDRED TEN OF THE NOT-FOR-PRO-
12 FIT CORPORATION LAW or as an entity that is wholly owned by one or more
13 such national securities exchanges or boards of trade and that provides
14 automation or technical services thereto, [or] (G) principally used as a
15 qualified film production facility including qualified film production
16 facilities having a situs in an empire zone designated as such pursuant
17 to article eighteen-B of the general municipal law, where the taxpayer
18 is providing three or more services to any qualified film production
19 company using the facility, including such services as a studio lighting
20 grid, lighting and grip equipment, multi-line phone service, broadband
21 information technology access, industrial scale electrical capacity,
22 food services, security services, and heating, ventilation and air
23 conditioning, OR (H) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE
24 TAXPAYER'S TRADE OR BUSINESS UTILIZING TEXTILE REMANUFACTURING TECHNOLO-
25 GIES. For purposes of clauses (D), (E) and (F) of this subparagraph,
26 property purchased by a taxpayer affiliated with a regulated broker,
27 dealer, registered investment adviser, national securities exchange or
28 board of trade, is allowed a credit under this subdivision if the prop-
29 erty is used by its affiliated regulated broker, dealer, registered
30 investment adviser, national securities exchange or board of trade in
31 accordance with this subdivision. For purposes of determining if the
32 property is principally used in qualifying uses, the uses by the taxpay-
33 er described in clauses (D) and (E) of this subparagraph may be aggre-
34 gated. In addition, the uses by the taxpayer, its affiliated regulated
35 broker, dealer, and registered investment adviser under either or both
36 of those clauses may be aggregated. Provided, however, a taxpayer shall
37 not be allowed the credit provided by clauses (D), (E) and (F) of this
38 subparagraph unless (I) eighty percent or more of the employees perform-
39 ing the administrative and support functions resulting from or related
40 to the qualifying uses of such equipment are located in this state or
41 (II) the average number of employees that perform the administrative and
42 support functions resulting from or related to the qualifying uses of
43 such equipment and are located in this state during the taxable year for
44 which the credit is claimed is equal to or greater than ninety-five
45 percent of the average number of employees that perform these functions
46 and are located in this state during the thirty-six months immediately
47 preceding the year for which the credit is claimed, or (III) the number
48 of employees located in this state during the taxable year for which the
49 credit is claimed is equal to or greater than ninety percent of the
50 number of employees located in this state on December thirty-first,
51 nineteen hundred ninety-eight or, if the taxpayer was not a calendar
52 year taxpayer in nineteen hundred ninety-eight, the last day of its
53 first taxable year ending after December thirty-first, nineteen hundred
54 ninety-eight. If the taxpayer becomes subject to tax in this state after
55 the taxable year beginning in nineteen hundred ninety-eight, then the
56 taxpayer is not required to satisfy the employment test provided in the
A. 3828 3
1 preceding sentence of this subparagraph for its first taxable year. For
2 purposes of clause (III) of this subparagraph the employment test will
3 be based on the number of employees located in this state on the last
4 day of the first taxable year the taxpayer is subject to tax in this
5 state. If the uses of the property must be aggregated to determine
6 whether the property is principally used in qualifying uses, then either
7 each affiliate using the property must satisfy this employment test or
8 this employment test must be satisfied through the aggregation of the
9 employees of the taxpayer, its affiliated regulated broker, dealer, and
10 registered investment adviser using the property. For purposes of this
11 subdivision, the term "goods" shall not include electricity.
12 S 2. Subparagraph (ii) of paragraph (b) of subdivision 12 of section
13 210 of the tax law is amended by adding a new clause (F) to read as
14 follows:
15 (F) TEXTILE REMANUFACTURING TECHNOLOGIES SHALL MEAN ALL PROCESSES
16 WHEREBY ELIGIBLE TEXTILES ARE RESTORED TO THEIR ORIGINAL PERFORMANCE
17 STANDARDS AND ARE THEREBY REMOVED FROM THE SOLID WASTE STREAM, RETAINING
18 THE MAJORITY OF COMPONENTS THAT HAVE BEEN THROUGH AT LEAST ONE LIFE
19 CYCLE AND REPLACING CONSUMABLE PORTIONS TO ENABLE SUCH TEXTILES TO BE
20 RESTORED TO THEIR ORIGINAL FUNCTIONS. FOR THE PURPOSES OF THIS SUBDIVI-
21 SION, "ELIGIBLE TEXTILES" SHALL MEAN TEXTILES USED FOR INDUSTRIAL AND
22 COMMERCIAL UNIFORMS, HEALTH CARE FACILITY SUPPLY, LINEN SUPPLY, AND
23 INDUSTRIAL AND REPAIR FACILITY MAINTENANCE, INCLUDING CLOTHING, SAFETY
24 GEAR, CLEANROOM GARMENTS, BEDDING, SCRUBS, TOWELS, ROBES, ADULT DIAPERS,
25 TABLE LINENS, SURGICAL TEXTILES, AND SHOP TOWELS.
26 S 3. This act shall take effect immediately and shall apply to proper-
27 ty placed in service on or after January 1, 2012.
