Bill Text: NY S03401 | 2019-2020 | General Assembly | Amended

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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 10-0)

Status: (Introduced - Dead) 2020-02-13 - PRINT NUMBER 3401B [S03401 Detail]

Download: New_York-2019-S03401-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         3401--B

                               2019-2020 Regular Sessions

                    IN SENATE

                                    February 6, 2019
                                       ___________

        Introduced  by  Sens. GIANARIS, RAMOS, KRUEGER -- read twice and ordered
          printed, and when printed to be committed to the Committee  on  Budget
          and Revenue -- reported favorably from said committee and committed to
          the  Committee  on  Finance  --  committee  discharged,  bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          recommitted  to the Committee on Budget and Revenue in accordance with
          Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
          reprinted as amended and recommitted to said committee

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09591-05-0
        S. 3401--B                          2

     1  income determined without regard  to  such  interest  deductions  cannot
     2  exceed eight percent of the taxpayer's entire net income.
     3    §  3. Paragraph (a) of subdivision 5 of section 11-652 of the adminis-
     4  trative code of the city of New York, as added by section 1 of part D of
     5  chapter 60 of the laws of 2015, is 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  of  finance,  any interest deductions
    10  allowable in computing entire net income which are directly or indirect-
    11  ly attributable to investment capital  or  investment  income,  (B)  any
    12  capital  gains  deferred or excluded under 26 U.S.C §1400-z-2, provided,
    13  however, that in no case  shall  investment  income  exceed  entire  net
    14  income.
    15    (ii)  If  the  amount of interest deductions subtracted under subpara-
    16  graph (i) of this paragraph exceeds investment  income,  the  excess  of
    17  such  amount  over  investment  income  must be added back to entire net
    18  income.
    19    (iii) If the taxpayer's investment income determined without regard to
    20  the interest deductions subtracted under subparagraph (i) of this  para-
    21  graph  comprises  more  than  eight percent of the taxpayer's entire net
    22  income, investment income determined without  regard  to  such  interest
    23  deductions  cannot  exceed  eight  percent  of the taxpayer's entire net
    24  income.
    25    § 4. This act shall take effect immediately and shall apply to taxable
    26  years beginning on and after January 1, 2020.