Bill Text: NY S01596 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to tax credits for qualified pass-through manufacturers; provides a definition for qualified pass-through manufacturers.

Spectrum: Partisan Bill (Republican 10-0)

Status: (Introduced - Dead) 2019-01-23 - RECOMMIT, ENACTING CLAUSE STRICKEN [S01596 Detail]

Download: New_York-2019-S01596-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1596
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 15, 2019
                                       ___________
        Introduced  by  Sens. O'MARA, AKSHAR, AMEDORE, BOYLE, GALLIVAN, HELMING,
          JACOBS, ORTT, RITCHIE, SEWARD -- read twice and ordered  printed,  and
          when  printed  to  be committed to the Committee on Investigations and
          Government Operations
        AN ACT to amend the tax law, in relation to tax  credits  for  qualified
          pass-through manufacturers
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subsection (b) of section 612 of the tax law is amended  by
     2  adding a new paragraph 43 to read as follows:
     3    (43)  Any  income,  gain,  loss  and  deduction,  to  the extent it is
     4  included in federal adjusted gross income and is,  combined,  less  than
     5  zero,  of  an individual or trust from a qualified pass-through manufac-
     6  turer, as defined in paragraph forty-four  of  subsection  (c)  of  this
     7  section.
     8    §  2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
     9  added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
    10  amended and a new paragraph 44 is added to read as follows:
    11    (39)  In  the case of a taxpayer who is a small business who has busi-
    12  ness income and/or farm income as defined in  the  laws  of  the  United
    13  States,  an  amount  equal  to three percent of the net items of income,
    14  gain, loss and deduction attributable to such business or farm  entering
    15  into  federal adjusted gross income, but not less than zero, for taxable
    16  years beginning after two thousand thirteen, an amount  equal  to  three
    17  and  three-quarters  percent  of the net items of income, gain, loss and
    18  deduction attributable to such business or farm  entering  into  federal
    19  adjusted  gross income, but not less than zero, for taxable years begin-
    20  ning after two thousand fourteen, and an amount equal to five percent of
    21  the net items of income, gain, loss and deduction attributable  to  such
    22  business  or  farm  entering into federal adjusted gross income, but not
    23  less than zero, for taxable years beginning after two thousand  fifteen.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00656-01-9

        S. 1596                             2
     1  For the purposes of this paragraph, the term small business shall mean a
     2  sole  proprietor  or  a  farm  business  who employs one or more persons
     3  during the taxable year and who has net  business  income  or  net  farm
     4  income of less than two hundred fifty thousand dollars. For the purposes
     5  of  this  paragraph,  the term small business shall exclude any business
     6  that is a qualified pass-through manufacturer, as defined  in  paragraph
     7  forty-four of this subsection for the current tax year.
     8    (44)  (A) Any income, gain, loss and deduction, to the extent included
     9  federal adjusted gross income and is, combined, greater than zero, of an
    10  individual or trust from a qualified pass-through  manufacturer.  Income
    11  from  a  qualified pass-through manufacturer shall not include an amount
    12  representing reasonable compensation for an individual  controlling  ten
    13  percent or more of the qualified business or entity.
    14    (B) The qualified pass-through manufacturer may be organized as a sole
    15  proprietorship,  a  partnership, a limited liability company electing to
    16  be treated as a partnership or sole proprietorship, or an S corporation.
    17    (C) For the purposes of this  subsection,  the  term  qualified  pass-
    18  through  manufacturer shall mean a business that is a qualified New York
    19  manufacturer, as defined by subparagraph (vi) of paragraph (a) of subdi-
    20  vision one of section two hundred ten of this chapter, except  that  the
    21  term "gross receipts" shall be replaced by "business receipts" in deter-
    22  mining whether the business is "principally engaged" in manufacturing. A
    23  qualified pass-through manufacturer shall not include a business that is
    24  currently participating in the START-UP NY program.
    25    §  3.  Paragraph  2 of subsection (a) of section 606 of the tax law is
    26  amended by adding a new subparagraph (B-1) to read as follows:
    27    (B-1) Property placed in service during the tax year that is otherwise
    28  eligible for the investment tax credit described in subparagraph (A)  of
    29  this  paragraph,  will  not be eligible for the investment tax credit if
    30  the use of the property is by a qualified pass-through manufacturer,  as
    31  defined in paragraph forty-four of subsection (c) of section six hundred
    32  twelve of this article for the current tax year.
    33    § 4. This act shall take effect immediately.
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