Bill Text: NY S05783 | 2023-2024 | 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 (Republican 1-0)
Status: (Introduced) 2024-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S05783 Detail]
Download: New_York-2023-S05783-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5783 2023-2024 Regular Sessions IN SENATE March 16, 2023 ___________ Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations 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. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10262-01-3S. 5783 2 1 (2) Amount of credit. The amount of the credit shall be twenty percent 2 of all eligible costs which are incurred in the taxable year, as a 3 result of asbestos remediation with a completed qualified asbestos 4 project. The credit shall be allowed for the taxable year in which the 5 qualified asbestos project is first commenced and for the next two 6 succeeding taxable years. The credit authorized pursuant to this section 7 shall not exceed the total sum of one million dollars for the three 8 taxable years allowed and claimed. The costs, expenses and other amounts 9 for which a credit is allowed and claimed under this subdivision shall 10 not be used in the calculation of any other credit allowed under this 11 chapter. 12 (c) Cross-references. For application of the credit provided for in 13 this section, see the following provisions of this chapter: 14 Article 9: Section 187-r. 15 Article 9-A: Section 210-B, subdivision 59. 16 Article 22: Section 606, subsections (i) and (ooo). 17 § 2. The tax law is amended by adding a new section 187-r to read as 18 follows: 19 § 187-r. Asbestos remediation credit. 1. Allowance of credit. A 20 taxpayer shall be allowed a credit, to be computed as provided in 21 section twenty-three-a of this chapter, against the taxes imposed by 22 this article. Provided, however, that the amount of such credit allow- 23 able against the tax imposed by section one hundred eighty-four of this 24 article shall be the excess of the amount of such credit over the amount 25 of any credit allowed by this section against the tax imposed by section 26 one hundred eighty-three of this article. 27 2. Application of credit. The credit under this section for any taxa- 28 ble year shall not reduce the tax due for such year to less than the 29 applicable minimum tax prescribed by this article. If, however, the 30 amount of credit allowable under this section for any taxable year 31 reduces the tax to such amount, any amount of credit not deductible in 32 such taxable year shall be treated as an overpayment of tax to be 33 refunded in accordance with the provisions of section one thousand 34 eighty-six of this chapter. Provided, however, the provisions of 35 subsection (c) of section one thousand eighty-eight of this chapter 36 notwithstanding, no interest shall be paid thereon. 37 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 38 sion 59 to read as follows: 39 59. Asbestos remediation credit. (a) Allowance of credit. A taxpayer 40 who has undertaken a qualified asbestos project on an existing structure 41 shall be allowed a credit, to be computed as provided in section twen- 42 ty-three-a of this chapter, against the tax imposed by this article. 43 (b) Application of credit. The credit allowed under this subdivision 44 for any taxable year shall not reduce the tax due for such year to less 45 than the higher amount prescribed in paragraph (d) of subdivision one of 46 this section. However, if the amount of credits allowed under this 47 subdivision for any taxable year reduces the tax to such amount, any 48 amount of credit thus not deductible in such taxable year shall be 49 treated as an overpayment of tax to be credited or refunded in accord- 50 ance with the provisions of section one thousand eighty-six of this 51 chapter. Provided, however, the provisions of subsection (c) of section 52 one thousand eighty-eight of this chapter notwithstanding, no interest 53 shall be paid thereon. 54 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 55 of the tax law is amended by adding a new clause (l) to read as follows:S. 5783 3 1 (l) Asbestos remediation Amount of credit under 2 credit under subsection (ooo) subdivision fifty-nine of 3 section two hundred ten-B 4 § 5. Section 606 of the tax law is amended by adding a new subsection 5 (ooo) to read as follows: 6 (ooo) 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.
