Bill Text: NY A05962 | 2019-2020 | General Assembly | Amended
Bill Title: Exempts from tax a portion of global intangible low-taxed income.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A05962 Detail]
Download: New_York-2019-A05962-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5962--A 2019-2020 Regular Sessions IN ASSEMBLY February 20, 2019 ___________ Introduced by M. of A. SCHIMMINGER -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to exempting from tax a portion of global intangible low-taxed income The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (b) of subdivision 6-a of section 208 of the tax 2 law, as amended by section 1 of part KK of chapter 59 of the laws of 3 2018, is amended to read as follows: 4 (b) "Exempt CFC income" means (i) except to the extent described in 5 subparagraph (ii) of this paragraph, the income required to be included 6 in the taxpayer's federal gross income pursuant to subsection (a) of 7 section 951 of the internal revenue code, received from a corporation 8 that is conducting a unitary business with the taxpayer but is not 9 included in a combined report with the taxpayer, [and] (ii) such income 10 required to be included in the taxpayer's federal gross income pursuant 11 to subsection (a) of such section 951 of the internal revenue code by 12 reason of subsection (a) of section 965 of the internal revenue code, as 13 adjusted by subsection (b) of section 965 of the internal revenue code, 14 and without regard to subsection (c) of such section, received from a 15 corporation that is not included in a combined report with the taxpayer, 16 and (iii) ninety-five percent of the income required to be included in 17 the taxpayer's federal gross income pursuant to subsection (a) of 18 section 951A of the internal revenue code, without regard to the 19 deduction under section 250 of the internal revenue code, received from 20 a corporation that is not included in a combined report with the taxpay- 21 er, less, [(iii)] (iv) in the discretion of the commissioner, any inter- 22 est deductions directly or indirectly attributable to that income. In 23 lieu of subtracting from its exempt CFC income the amount of those 24 interest deductions, the taxpayer may make a revocable election to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09762-02-9A. 5962--A 2 1 reduce its total exempt CFC income by forty percent. If the taxpayer 2 makes this election, the taxpayer must also make the elections provided 3 for in paragraph (b) of subdivision six of this section and paragraph 4 (c) of this subdivision. If the taxpayer subsequently revokes this 5 election, the taxpayer must revoke the elections provided for in para- 6 graph (b) of subdivision six of this section and paragraph (c) of this 7 subdivision. A taxpayer which does not make this election because it has 8 no exempt CFC income will not be precluded from making those other 9 elections. The income described in [subparagraph] subparagraphs (ii) and 10 (iii) of this paragraph shall not constitute investment income. The 11 income described in subparagraph (iii) of this paragraph shall not 12 constitute exempt unitary corporation dividends. 13 § 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is 14 amended by adding a new subparagraph 25 to read as follows: 15 (25) The amount of any federal deduction allowed pursuant to section 16 250(a)(1)(B)(i) of the internal revenue code. 17 § 3. Subdivision 5-a of section 210-A of the tax law, as added by 18 section 1 of part C of chapter 59 of the laws of 2019, is amended to 19 read as follows: 20 5-a. [Net global] Global intangible low-taxed income. (a) Notwith- 21 standing any other provision of this section, [net] global intangible 22 low-taxed income shall be included in the apportionment fraction as 23 provided in this subdivision. [Receipts constituting net] 24 (b) For New York C corporations, global intangible low-taxed income 25 shall not be included in the numerator of the apportionment fraction. 26 [Receipts constituting net] Five percent of global intangible low-taxed 27 income shall be included in the denominator of the apportionment frac- 28 tion. 29 (c) For New York S corporations, global intangible low-taxed income 30 shall not be included in the numerator of the apportionment fraction. 31 Global intangible low-taxed income shall be included in the denominator 32 of the apportionment fraction. 33 (d) For purposes of this subdivision, the term "[net] global intangi- 34 ble low-taxed income" means the amount required to be included in the 35 taxpayer's federal gross income pursuant to subsection (a) of section 36 951A of the internal revenue code [less the amount of the deduction37allowed under clause (i) of section 250(a)(1)(B) of such code]. 38 § 4. Paragraph 1 of subdivision (b) of section 1503 of the tax law is 39 amended by adding two new subparagraphs (U) and (V) to read as follows: 40 (U) To the extent not excluded from income pursuant to subparagraph 41 (A) of this paragraph, ninety-five percent of the income required to be 42 included in the taxpayer's federal gross income pursuant to subsection 43 (a) of section 951A of the internal revenue code, without regard to the 44 deduction under section 250 of the internal revenue code, that is gener- 45 ated by a corporation that is not included in a combined report with the 46 taxpayer. 47 (V) To the extent not excluded from income pursuant to subparagraph 48 (A) or (B) of this paragraph, any amount treated as a dividend received 49 by the taxpayer under section 78 of the internal revenue code that is 50 attributable to the income required to be included in the taxpayer's 51 federal gross income pursuant to subsection (a) of section 951A of such 52 code. 53 § 5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is 54 amended by adding a new subparagraph (Y) to read as follows: 55 (Y) The amount of the federal deduction allowed pursuant to section 56 250(a)(1)(B) of the internal revenue code.A. 5962--A 3 1 § 6. Subparagraph (H) of paragraph 2 of subdivision (b) of section 2 1503 of the tax law, as amended by section 4-e of part KK of chapter 59 3 of the laws of 2018, is amended to read as follows: 4 (H) in the discretion of the commissioner, any amount of interest 5 directly or indirectly and any other amount directly attributable as a 6 carrying charge or otherwise to subsidiary capital or to income, gains 7 or losses from subsidiary capital, or to the income described in 8 [subparagraph] subparagraphs (S), (U) and (V) of paragraph one of this 9 subdivision; 10 § 7. This act shall take effect immediately and apply to taxable years 11 beginning on or after January 1, 2019.
