Bill Text: NY S06344 | 2009-2010 | General Assembly | Introduced
Bill Title: Provides tax credits for qualified small employers who purchase health insurance; defines qualified small employers as sole proprietors or employers with 50 or less employees within a certain income level who are not participating in other programs.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S06344 Detail]
Download: New_York-2009-S06344-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
6344
2009-2010 Regular Sessions
I N S E N A T E
December 16, 2009
___________
Introduced by Sen. KLEIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the tax law and the insurance law, in relation to
providing a tax credit for the purchase of health insurance by quali-
fied small employers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 41 to read as follows:
3 41. SMALL EMPLOYER HEALTH CARE INSURANCE CREDIT. (A) A TAXPAYER WHO
4 IS A QUALIFIED SMALL EMPLOYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX
5 IMPOSED BY THIS ARTICLE EQUAL TO TWENTY PERCENT OF THE PREMIUM PAID
6 DURING THE TAXABLE YEAR FOR HEALTH INSURANCE BY SUCH EMPLOYER.
7 (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY YEAR SHALL NOT
8 REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS
9 PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION.
10 IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
11 ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT
12 NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
13 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
14 OR YEARS.
15 (C) FOR THE PURPOSES OF THIS SUBDIVISION "QUALIFIED SMALL EMPLOYER"
16 SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
17 BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES:
18 (A) WHO IS A "SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF
19 SUBDIVISION ONE OF THIS SECTION; AND
20 (B) WHO IS INELIGIBLE FOR OR NOT PARTICIPATING IN ANY PROGRAM ESTAB-
21 LISHED PURSUANT TO SECTION FOUR THOUSAND THREE HUNDRED TWENTY-SIX OF THE
22 INSURANCE LAW.
23 (D) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "HEALTH INSURANCE"
24 MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07042-04-9
S. 6344 2
1 OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
2 HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
3 EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
4 PUBLIC HEALTH LAW.
5 S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
6 of the tax law is amended by adding a new clause (xxxi) to read as
7 follows:
8 (XXXI) SMALL EMPLOYER HEALTH CREDIT UNDER SUBDIVISION
9 CARE INSURANCE CREDIT FORTY-ONE OF SECTION TWO
10 UNDER SUBSECTION (QQ) HUNDRED TEN
11 S 3. Section 606 of the tax law is amended by adding a new subsection
12 (qq) to read as follows:
13 (QQ) SMALL EMPLOYER HEALTH CARE INSURANCE CREDIT. (1) A TAXPAYER WHO
14 IS A QUALIFIED SMALL EMPLOYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX
15 IMPOSED BY THIS ARTICLE EQUAL TO TWENTY PERCENT OF THE PREMIUM PAID BY
16 SUCH EMPLOYER AND EMPLOYEE FOR HEALTH INSURANCE DURING THE TAXABLE YEAR.
17 (2) FOR THE PURPOSES OF THIS SUBSECTION "QUALIFIED SMALL EMPLOYER"
18 SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
19 BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES:
20 (I) WHO IS A "SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF
21 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER; AND
22 (II) WHO IS INELIGIBLE FOR OR NOT PARTICIPATING IN ANY PROGRAM ESTAB-
23 LISHED PURSUANT TO SECTION FOUR THOUSAND THREE HUNDRED TWENTY-SIX OF THE
24 INSURANCE LAW.
25 (3) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "HEALTH INSURANCE"
26 MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
27 OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
28 HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
29 EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
30 PUBLIC HEALTH LAW.
31 S 4. Section 1456 of the tax law is amended by adding a new subsection
32 (f-1) to read as follows:
33 (F-1)(1) A TAXPAYER WHO IS A QUALIFIED SMALL EMPLOYER SHALL BE ALLOWED
34 A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO TWENTY PERCENT
35 OF THE PREMIUM PAID DURING THE TAXABLE YEAR FOR HEALTH INSURANCE BY SUCH
36 EMPLOYER.
37 (2) IN NO EVENT SHALL THE CREDIT PROVIDED FOR IN THIS SECTION, AND
38 CARRYOVERS OF SUCH CREDIT, BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE
39 TAX PAYABLE TO LESS THAN THE DOLLAR AMOUNT FIXED AS A MINIMUM TAX BY
40 SUBSECTION (B) OF SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS ARTICLE.
41 IF, HOWEVER, THE AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT, OR BOTH,
42 ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
43 SUCH AMOUNT, ANY AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT THUS NOT
44 DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
45 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
46 OR YEARS.
47 (3) FOR THE PURPOSES OF THIS SECTION THE TERM "QUALIFIED SMALL EMPLOY-
48 ER" SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
49 BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES:
50 (I) WHO IS A "SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF
51 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER; AND
52 (II) WHO IS INELIGIBLE FOR OR NOT PARTICIPATING IN ANY PROGRAM ESTAB-
53 LISHED PURSUANT TO SECTION FOUR THOUSAND THREE HUNDRED TWENTY-SIX OF THE
54 INSURANCE LAW.
55 (4) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "HEALTH INSURANCE"
56 MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
S. 6344 3
1 OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
2 HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
3 EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
4 PUBLIC HEALTH LAW.
5 S 5. Section 1511 of the tax law is amended by adding a new subdivi-
6 sion (y) to read as follows:
7 (Y) SMALL EMPLOYER HEALTH CARE INSURANCE CREDIT. (1) A TAXPAYER SHALL
8 BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO
9 TWENTY PERCENT OF THE PREMIUM PAID DURING THE TAXABLE YEAR FOR HEALTH
10 INSURANCE BY SUCH EMPLOYER.
11 (2) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN AN
12 AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE MINIMUM FIXED
13 BY SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE. IF,
14 HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY
15 TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT
16 DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
17 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
18 OR YEARS.
19 (3) FOR THE PURPOSES OF THIS SUBDIVISION THE TERM "QUALIFIED SMALL
20 EMPLOYER" SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE
21 OF THE BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES:
22 (I) WHO IS A "SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF
23 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER; AND
24 (II) WHO IS INELIGIBLE FOR OR NOT PARTICIPATING IN ANY PROGRAM ESTAB-
25 LISHED PURSUANT TO SECTION FOUR THOUSAND THREE HUNDRED TWENTY-SIX OF THE
26 INSURANCE LAW.
27 (4) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "HEALTH INSURANCE"
28 MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
29 OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
30 HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
31 EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
32 PUBLIC HEALTH LAW.
33 S 6. The insurance law is amended by adding a new section 215 to read
34 as follows:
35 S 215. REPORT ON QUALIFIED SMALL EMPLOYER TAX CREDIT. THE SUPERINTEN-
36 DENT SHALL ORDER A STUDY OF THE IMPACT OF SECTION FOUR THOUSAND THREE
37 HUNDRED TWENTY-SIX OF THIS CHAPTER, SUBDIVISION FORTY-ONE OF SECTION TWO
38 HUNDRED TEN OF THE TAX LAW, SUBSECTION (T) OF SECTION SIX HUNDRED SIX OF
39 THE TAX LAW, AND SUBSECTION (F-1) OF SECTION FOURTEEN HUNDRED FIFTY-SIX
40 OF THE TAX LAW. SUCH STUDY SHALL EXAMINE THE NUMBER OF PERSONS COVERED
41 BY GROUP HEALTH INSURANCE OFFERED BY THEIR EMPLOYER PRIOR TO, AND AFTER,
42 IMPLEMENTATION OF SUCH PROVISIONS OF SUCH SECTIONS, AND SHALL DETERMINE
43 THE EFFECT OF SUCH PROVISIONS OF SUCH SECTIONS ON EMPLOYEE HEALTH INSUR-
44 ANCE COVERAGE. THE STUDY SHALL BE COMPLETED AND A REPORT SUBMITTED BY
45 SEPTEMBER FIRST, TWO THOUSAND THIRTEEN TO THE GOVERNOR, THE TEMPORARY
46 PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
47 S 7. This act shall take effect January 1, 2011.
