Bill Text: NY A05790 | 2019-2020 | General Assembly | Introduced


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

Spectrum: Strong Partisan Bill (Republican 16-1)

Status: (Introduced) 2019-02-19 - referred to ways and means [A05790 Detail]

Download: New_York-2019-A05790-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5790
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 19, 2019
                                       ___________
        Introduced  by  M.  of  A.  GIGLIO, BRABENEC, LAWRENCE, RAIA, DeSTEFANO,
          McDONOUGH, SAYEGH, HAWLEY, MORINELLO, TAGUE, KOLB, NORRIS, WALCZYK  --
          Multi-Sponsored  by  --  M.  of  A.  BARCLAY,  CROUCH -- 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 53 to read as follows:
     3    53. 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.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06896-01-9

        A. 5790                             2
     1    § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
     2  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
     3  follows:
     4  (xliv) Small business                Amount of credit under
     5  capital tax credit                   subdivision fifty-three of
     6  under subsection (jjj)               section two hundred ten-B
     7    §  3. Section 606 of the tax law is amended by adding a new subsection
     8  (jjj) to read as follows:
     9    (jjj) Small business capital tax  credit.  (1)  A  taxpayer  shall  be
    10  allowed a credit, to be computed as provided in this subsection, against
    11  the  tax  imposed  by  this article. Such credit shall be granted to any
    12  taxpayer which is a small business when the small business is located in
    13  a village or in a city with a population of less than thirty-five  thou-
    14  sand  as  determined  by  the most recent federal decennial census.  The
    15  amount of the credit shall be equal to twenty-five percent of the sum of
    16  qualified investments in such  small  business,  as  determined  by  the
    17  commissioner.
    18    (2)  For  the  purposes  of this subsection, the term "small business"
    19  means a business which employs less than fifteen employees.
    20    (3) The credit and  carryovers  of  such  credit  allowed  under  this
    21  subsection  for any taxable year shall not, in the aggregate, reduce the
    22  tax due for such year  to  be  less  than  the  higher  of  the  amounts
    23  prescribed  in  paragraph  (d) of subdivision one of section two hundred
    24  ten of this chapter.  However, if the amount of credit or carryovers  of
    25  such credit, or both, allowed under this subsection for any taxable year
    26  reduces  the  tax  to such amount, any amount of credit or carryovers of
    27  such credit thus not deductible in such taxable year may be carried over
    28  to the following year or years and may be deducted from the tax for such
    29  year or years.
    30    § 4. This act shall take effect on the first of January next  succeed-
    31  ing  the  date  on  which  it shall have become a law and shall apply to
    32  taxable years commencing on or after such date.
feedback