Bill Text: NY A06813 | 2019-2020 | General Assembly | Introduced


Bill Title: Creates a small business electric energy tax credit; the term "business related electricity usage" shall refer to electrical power usage to further the economic activity of the taxpayer at the primary business location that is clearly delimited from any shared electrical power usage cost.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-20 - referred to ways and means [A06813 Detail]

Download: New_York-2019-A06813-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6813
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     March 20, 2019
                                       ___________
        Introduced by M. of A. CRESPO -- read once and referred to the Committee
          on Ways and Means
        AN  ACT  to  amend the tax law, in relation to a small business electric
          energy tax credit
          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 electric energy tax credit. (a) A taxpayer that  is
     4  eligible under the limitations specified in paragraph (b) of this subdi-
     5  vision  shall  be allowed a credit against the tax imposed by this arti-
     6  cle.  The amount of the credit shall be equal  to  the  product  of  two
     7  cents  per  kilowatt  hour for all business related electricity usage at
     8  the taxpayer's primary business location up to  a  one  thousand  dollar
     9  limit during the taxable year.
    10    (b)  An  eligible  taxpayer  shall (i) have no more than nineteen full
    11  time equivalent employees in  New  York  state,  including  any  related
    12  members  or  affiliates, (ii) not be a sole-proprietorship if such sole-
    13  proprietor's primary business location is sited in or part of such sole-
    14  proprietor's place of residence, (iii)  not  be  certified  pursuant  to
    15  article eighteen-B of the general municipal law, and (iv) not be receiv-
    16  ing  any  allocation  or  award pursuant to any program authorized under
    17  article six of the economic development law.
    18    (c) (i) The term "business related electricity usage" shall  refer  to
    19  electrical  power  usage  used  to  further the economic activity of the
    20  taxpayer at the primary business location that is clearly delimited from
    21  any shared electrical power usage cost. (ii) The term "primary  business
    22  location"  shall mean the physical site of the taxpayer within the state
    23  of New York where the majority of the taxpayer's  economic  activity  is
    24  generated  or  coordinated  through.    (iii) The term "related members"
    25  shall have the same meaning as set forth  in  clauses  (A)  and  (B)  of
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01640-01-9

        A. 6813                             2
     1  subparagraph  one  of  paragraph  (o) of subdivision nine of section two
     2  hundred eight of this article, and  the  term  "affiliates"  shall  mean
     3  those  corporations  that  are  members of the same affiliated group (as
     4  defined in section fifteen hundred four of the internal revenue code) as
     5  the taxpayer.
     6    (d) The eligible usage level shall be the total kilowatt hour usage of
     7  the  taxpayer  for business related electricity usage during the taxpay-
     8  er's taxable year as verified through bills or other form of usage chart
     9  provided to the taxpayer by the  taxpayer's  electricity  power  service
    10  provider.
    11    (e)  The  credit  allowed  under this subdivision for any taxable year
    12  shall not reduce the tax due for such year to less than  the  higher  of
    13  the  amounts  prescribed  in paragraph (d) of subdivision one of section
    14  two hundred ten of this article.   However,  if  the  amount  of  credit
    15  allowed  under  this subdivision for any taxable year reduces the tax to
    16  such amount, any amount of credit not deductible in  such  taxable  year
    17  shall  be treated as an overpayment of tax to be credited or refunded in
    18  accordance with the provisions of section  one  thousand  eighty-six  of
    19  this  chapter.  Provided,  however,  the provisions of subsection (c) of
    20  section one thousand eighty-eight of this  chapter  notwithstanding,  no
    21  interest shall be paid thereon.
    22    §  2. Section 606 of the tax law is amended by adding a new subsection
    23  (jjj) to read as follows:
    24    (jjj) Small business electric energy tax credit. (1) A  taxpayer  that
    25  is  eligible  under  the  limitations specified in paragraph two of this
    26  subsection shall be allowed a credit against the  tax  imposed  by  this
    27  article.  The amount of the credit shall be equal to the product (or pro
    28  rata share of the product in the case of a partnership) of two cents per
    29  kilowatt hour for all business related electricity usage at the  taxpay-
    30  er's  primary business location up to a one thousand dollar limit during
    31  the taxable year.
    32    (2) An eligible taxpayer shall (i) have no  more  than  nineteen  full
    33  time  equivalent  employees  in  New  York  state, including any related
    34  members or affiliates, (ii) shall not be a sole-proprietorship  if  such
    35  sole-proprietor's  primary business location is sited in or part of such
    36  sole-proprietor's place of residence, (iii) not be certified pursuant to
    37  article eighteen-B of the general municipal law, and (iv) not be receiv-
    38  ing any allocation or award pursuant to  any  program  authorized  under
    39  article six of the economic development law.
    40    (3)  (i)  The term "business related electricity usage" shall refer to
    41  electrical power usage used to further  the  economic  activity  of  the
    42  taxpayer at the primary business location that is clearly delimited from
    43  any  shared electrical power usage cost. (ii) The term "primary business
    44  location" shall mean the physical site of the taxpayer within the  state
    45  of  New  York  where the majority of the taxpayer's economic activity is
    46  generated or coordinated through. (iii) The term "related members" shall
    47  have the same meaning as set forth in clauses (A) and  (B)  of  subpara-
    48  graph  one  of  paragraph (o) of subdivision nine of section two hundred
    49  eight of this chapter, and the term "affiliates" shall mean those corpo-
    50  rations that are members of the same affiliated  group  (as  defined  in
    51  section  fifteen  hundred  four  of  the  internal  revenue code) as the
    52  taxpayer.
    53    (4) The eligible usage level shall be the total kilowatt hour usage of
    54  the taxpayer for business related electricity usage during  the  taxpay-
    55  er's taxable year as verified through bills or other form of usage chart

        A. 6813                             3
     1  provided  to  the  taxpayer  by the taxpayer's electricity power service
     2  provider.
     3    (5)  If  the  amount  of  credit allowed under this subsection for any
     4  taxable year shall exceed the taxpayer's tax for such year,  the  excess
     5  shall  be treated as an overpayment of tax to be credited or refunded in
     6  accordance with the provisions of section six hundred eighty-six of this
     7  article, provided, however, that no interest shall be paid thereon.
     8    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
     9  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    10  follows:
    11  (xliv) Small business electric       Qualifying electricity usage
    12  energy tax credit                    under subdivision fifty-three
    13  under subsection (jjj)               of section two hundred ten-B
    14    § 4. This act shall take effect on the first of January next  succeed-
    15  ing the date on which it shall have become a law.
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