Bill Text: NY A05962 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5962 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 AN ACT to amend the tax law and the administrative code of the city of New York, in relation to the definitions of the terms "CFC income" and "entire net 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 less, and (iii) such income required to be included in the taxpayer's 17 federal gross income pursuant to subsection (a) of section 951A of the 18 internal revenue code, without regard to the deduction under section 250 19 of the internal revenue code, received from a corporation that is not 20 included in a combined report with the taxpayer, less, (iv) in the 21 discretion of the commissioner, any interest deductions directly or 22 indirectly attributable to that income. In lieu of subtracting from its 23 exempt CFC income the amount of those interest deductions, the taxpayer 24 may make a revocable election to reduce its total exempt CFC income by EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09762-01-9A. 5962 2 1 forty percent. If the taxpayer makes this election, the taxpayer must 2 also make the elections provided for in paragraph (b) of subdivision six 3 of this section and paragraph (c) of this subdivision. If the taxpayer 4 subsequently revokes this election, the taxpayer must revoke the 5 elections provided for in paragraph (b) of subdivision six of this 6 section and paragraph (c) of this subdivision. A taxpayer which does not 7 make this election because it has no exempt CFC income will not be 8 precluded from making those other elections. The income described in 9 [subparagraph] subparagraphs (ii) and (iii) of this paragraph shall not 10 constitute investment income. 11 § 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is 12 amended by adding a new subparagraph 25 to read as follows: 13 (25) The amount of any federal deduction allowed pursuant to section 14 250(a)(1)(B)(i) of the internal revenue code. 15 § 3. Paragraph (b) of subdivision 5-a of section 11-652 of the admin- 16 istrative code of the city of New York, as amended by section 1-a of 17 part KK of chapter 59 of the laws of 2018, is amended to read as 18 follows: 19 (b) "Exempt CFC income" means (i) except to the extent described in 20 subparagraph (ii) of this paragraph, the income required to be included 21 in the taxpayer's federal gross income pursuant to subsection (a) of 22 section 951 of the internal revenue code, received from a corporation 23 that is conducting a unitary business with the taxpayer but is not 24 included in a combined report with the taxpayer, and (ii) such income 25 required to be included in the taxpayer's federal gross income pursuant 26 to subsection (a) of such section 951 of the internal revenue code by 27 reason of subsection (a) of section 965 of the internal revenue code, as 28 adjusted by subsection (b) of section 965 of the internal revenue code, 29 and without regard to subsection (c) of such section, received from a 30 corporation that is not included in a combined report with the taxpayer, 31 less, and (iii) such income required to be included in the taxpayer's 32 federal gross income pursuant to subsection (a) of section 951A of the 33 internal revenue code, without regard to the deduction under section 250 34 of the internal revenue code, received from a corporation that is not 35 included in a combined report with the taxpayer, less, (iv) in the 36 discretion of the commissioner of finance, any interest deductions 37 directly or indirectly attributable to that income. In lieu of 38 subtracting from its exempt CFC income the amount of those interest 39 deductions, the taxpayer may make a revocable election to reduce its 40 total exempt CFC income by forty percent. If the taxpayer makes this 41 election, the taxpayer must also make the elections provided for in 42 paragraph (b) of subdivision five of this section and paragraph (c) of 43 this subdivision. If the taxpayer subsequently revokes this election, 44 the taxpayer must revoke the elections provided for in paragraph (b) of 45 subdivision five of this section and paragraph (c) of this subdivision. 46 A taxpayer which does not make this election because it has no exempt 47 CFC income will not be precluded from making those other elections. The 48 income described in [subparagraph] subparagraphs (ii) and (iii) of this 49 paragraph shall not constitute investment income. 50 § 4. Paragraph (b) of subdivision 8 of section 11-652 of the adminis- 51 trative code of the city of New York is amended by adding a new subpara- 52 graph 22 to read as follows: 53 (22) The amount of any federal deduction allowed pursuant to section 54 250(a)(1)(B)(i) of the internal revenue code. 55 § 5. Paragraph 1 of subdivision (b) of section 1503 of the tax law is 56 amended by adding a new subparagraph (T) to read as follows:A. 5962 3 1 (T) To the extent not excluded from income pursuant to subparagraph 2 (A) of this paragraph, the income required to be included in the taxpay- 3 er's federal gross income pursuant to subsection (a) of section 951A of 4 the internal revenue code, without regard to the deduction under section 5 250 of the internal revenue code, that is generated by a corporation 6 that is not included in a combined report with the taxpayer. 7 § 6. Paragraph 2 of subdivision (b) of section 1503 of the tax law is 8 amended by adding a new subparagraph (Y) to read as follows: 9 (Y) The amount of the federal deduction allowed pursuant to subpara- 10 graph (B)(i) of paragraph one of subsection (a) of section 250 of the 11 internal revenue code. 12 § 7. Subparagraph (H) of paragraph 2 of subdivision (b) of section 13 1503 of the tax law, as amended by section 4-e of part KK of chapter 59 14 of the laws of 2018, is amended to read as follows: 15 (H) in the discretion of the commissioner, any amount of interest 16 directly or indirectly and any other amount directly attributable as a 17 carrying charge or otherwise to subsidiary capital or to income, gains 18 or losses from subsidiary capital, or to the income described in 19 [subparagraph] subparagraphs (S) and (T) of paragraph one of this subdi- 20 vision; 21 § 8. This act shall take effect immediately and shall apply to taxable 22 years beginning on or after January 1, 2018.