Bill Text: NY A10443 | 2019-2020 | General Assembly | Introduced

---

Bill Title: Relates to investment income and capital gains on investments deferred or excluded under 26 U.S.C. section 1400-z-2.

Spectrum: Partisan Bill (Democrat 28-0)

Status: (Introduced - Dead) 2020-05-18 - referred to ways and means [A10443 Detail]

Download: New_York-2019-A10443-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          10443

                   IN ASSEMBLY

                                      May 18, 2020
                                       ___________

        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Dinowitz) --
          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 investment income

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  This act shall be known and may be cited as the "opportu-
     2  nity zone tax break elimination act".
     3    § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
     4  amended  by  section  5  of part T of chapter 59 of the laws of 2015, is
     5  amended to read as follows:
     6    (a) (i) The term "investment income" means income,  including  capital
     7  gains  in  excess  of  capital  losses,  from investment capital, to the
     8  extent included in  computing  entire  net  income,  less,  (A)  in  the
     9  discretion  of  the  commissioner,  any interest deductions allowable in
    10  computing entire net income which are directly or  indirectly  attribut-
    11  able  to  investment capital or investment income, (B) any capital gains
    12  deferred or excluded under 26 U.S.C. §1400-z-2, provided, however,  that
    13  in no case shall investment income exceed entire net income. (ii) If the
    14  amount  of interest deductions subtracted under subparagraph (i) of this
    15  paragraph exceeds investment income, the  excess  of  such  amount  over
    16  investment  income must be added back to entire net income. (iii) If the
    17  taxpayer's investment income determined without regard to  the  interest
    18  deductions subtracted under subparagraph (i) of this paragraph comprises
    19  more  than eight percent of the taxpayer's entire net income, investment
    20  income determined without regard  to  such  interest  deductions  cannot
    21  exceed eight percent of the taxpayer's entire net income.
    22    §  3. Paragraph (a) of subdivision 5 of section 11-652 of the adminis-
    23  trative code of the city of New York, as added by section 1 of part D of
    24  chapter 60 of the laws of 2015, is amended to read as follows:
    25    (a) (i) The term "investment income" means income,  including  capital
    26  gains  in  excess  of  capital  losses,  from investment capital, to the
    27  extent included in  computing  entire  net  income,  less,  (A)  in  the
    28  discretion  of  the  commissioner  of  finance,  any interest deductions

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09591-06-0
        A. 10443                            2

     1  allowable in computing entire net income which are directly or indirect-
     2  ly attributable to investment capital  or  investment  income,  (B)  any
     3  capital  gains  deferred or excluded under 26 U.S.C §1400-z-2, provided,
     4  however,  that  in  no  case  shall  investment income exceed entire net
     5  income.
     6    (ii) If the amount of interest deductions  subtracted  under  subpara-
     7  graph  (i)  of  this  paragraph exceeds investment income, the excess of
     8  such amount over investment income must be  added  back  to  entire  net
     9  income.
    10    (iii) If the taxpayer's investment income determined without regard to
    11  the  interest deductions subtracted under subparagraph (i) of this para-
    12  graph comprises more than eight percent of  the  taxpayer's  entire  net
    13  income,  investment  income  determined  without regard to such interest
    14  deductions cannot exceed eight percent  of  the  taxpayer's  entire  net
    15  income.
    16    § 4. This act shall take effect immediately and shall apply to taxable
    17  years beginning on and after January 1, 2020.