Bill Text: NY A06134 | 2019-2020 | General Assembly | Introduced


Bill Title: Provides an asbestos remediation tax credit; allows for a twenty percent credit of all eligible costs which are incurred as a result of asbestos remediation, not to exceed $1,000,000.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A06134 Detail]

Download: New_York-2019-A06134-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6134
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 28, 2019
                                       ___________
        Introduced  by  M. of A. RYAN -- read once and referred to the Committee
          on Ways and Means
        AN ACT to amend the tax law, in relation to providing an asbestos  reme-
          diation tax credit
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The tax law is amended by adding a new section 23-a to read
     2  as follows:
     3    § 23-a. Asbestos remediation credit. (a) Definitions. As used in  this
     4  section, the following terms shall have the following meanings:
     5    (1) Qualified structure. "Qualified structure" shall mean (i) a build-
     6  ing,  principally  used  by  the  taxpayer  for residential, industrial,
     7  commercial, recreational or  environmental  conservation  purposes,  and
     8  (ii)  which  was originally placed in service at least twenty-five years
     9  prior to the taxable year in which the credit is claimed.
    10    (2) Eligible costs. "Eligible costs" shall mean all  amounts  properly
    11  chargeable to a capital account, which are incurred in direct connection
    12  to asbestos remediation of a qualified asbestos project.
    13    (3)  Qualified asbestos project. "Qualified asbestos project" shall be
    14  an asbestos project as defined in section nine hundred one of the  labor
    15  law  and  undertaken  by  the  taxpayer,  on  a qualified structure, and
    16  completed pursuant to the applicable regulations at  part  fifty-six  of
    17  title twelve of the official compilation of rules and regulations of the
    18  state.
    19    (b)  Asbestos  remediation credit. (1) Allowance of credit. A taxpayer
    20  who has undertaken a qualified asbestos project on  a  qualified  struc-
    21  ture, and who is subject to tax under article nine, nine-A or twenty-two
    22  of this chapter, shall be allowed a credit against such tax, pursuant to
    23  the provisions referenced in subdivision (c) of this section.
    24    (2) Amount of credit. The amount of the credit shall be twenty percent
    25  of  all  eligible  costs  which  are  incurred in the taxable year, as a
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02275-01-9

        A. 6134                             2
     1  result of asbestos  remediation  with  a  completed  qualified  asbestos
     2  project.  The  credit shall be allowed for the taxable year in which the
     3  qualified asbestos project is first  commenced  and  for  the  next  two
     4  succeeding taxable years. The credit authorized pursuant to this section
     5  shall  not  exceed  the  total  sum of one million dollars for the three
     6  taxable years allowed and claimed. The costs, expenses and other amounts
     7  for which a credit is allowed and claimed under this  subdivision  shall
     8  not  be  used  in the calculation of any other credit allowed under this
     9  chapter.
    10    (c) Cross-references. For application of the credit  provided  for  in
    11  this section, see the following provisions of this chapter:
    12    Article 9: Section 187-q.
    13    Article 9-A: Section 210-B, subdivision 53.
    14    Article 22: Section 606, subsections (i) and (jjj).
    15    §  2.  The tax law is amended by adding a new section 187-q to read as
    16  follows:
    17    § 187-q. Asbestos  remediation  credit.  1.  Allowance  of  credit.  A
    18  taxpayer  shall  be  allowed  a  credit,  to  be computed as provided in
    19  section twenty-three-a of this chapter, against  the  taxes  imposed  by
    20  this  article.  Provided, however, that the amount of such credit allow-
    21  able against the tax imposed by section one hundred eighty-four of  this
    22  article shall be the excess of the amount of such credit over the amount
    23  of any credit allowed by this section against the tax imposed by section
    24  one hundred eighty-three of this article.
    25    2.  Application of credit. The credit under this section for any taxa-
    26  ble year shall not reduce the tax due for such year  to  less  than  the
    27  applicable  minimum  tax  prescribed  by  this article. If, however, the
    28  amount of credit allowable under  this  section  for  any  taxable  year
    29  reduces  the  tax to such amount, any amount of credit not deductible in
    30  such taxable year shall be treated  as  an  overpayment  of  tax  to  be
    31  refunded  in  accordance  with  the  provisions  of section one thousand
    32  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    33  subsection  (c)  of  section  one  thousand eighty-eight of this chapter
    34  notwithstanding, no interest shall be paid thereon.
    35    § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
    36  sion 53 to read as follows:
    37    53.  Asbestos  remediation credit. (a) Allowance of credit. A taxpayer
    38  who has undertaken a qualified asbestos project on an existing structure
    39  shall be allowed a credit, to be computed as provided in  section  twen-
    40  ty-three-a of this chapter, against the tax imposed by this article.
    41    (b)  Application  of credit. The credit allowed under this subdivision
    42  for any taxable year shall not reduce the tax due for such year to  less
    43  than the higher amount prescribed in paragraph (d) of subdivision one of
    44  this  section.  However,  if  the  amount  of credits allowed under this
    45  subdivision for any taxable year reduces the tax  to  such  amount,  any
    46  amount  of  credit  thus  not  deductible  in such taxable year shall be
    47  treated as an overpayment of tax to be credited or refunded  in  accord-
    48  ance  with  the  provisions  of  section one thousand eighty-six of this
    49  chapter.  Provided, however, the provisions of subsection (c) of section
    50  one thousand eighty-eight of this chapter notwithstanding,  no  interest
    51  shall be paid thereon.
    52    §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    53  of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
    54  follows:

        A. 6134                             3
     1  (xliv) Asbestos remediation          Amount of credit under
     2  credit under subsection (jjj)        subdivision fifty-three of
     3                                       section two hundred ten-B
     4    §  5. Section 606 of the tax law is amended by adding a new subsection
     5  (jjj) to read as follows:
     6    (jjj) Asbestos remediation credit. (1) Allowance of credit. A taxpayer
     7  who has undertaken a qualified asbestos project on an existing structure
     8  shall be allowed a credit, to be computed as provided in  section  twen-
     9  ty-three-a of this chapter, against the tax imposed by this article.
    10    (2)  Application  of credit. If the amount of the credit allowed under
    11  this subsection for any taxable year shall exceed the taxpayer's tax for
    12  such year, the excess shall be treated as an overpayment of  tax  to  be
    13  credited  or  refunded  in accordance with the provisions of section six
    14  hundred eighty-six of this article, provided, however, that no  interest
    15  shall be paid thereon.
    16    § 6. This act shall take effect immediately and shall apply to taxable
    17  years commencing on or after such date.
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