senate Bill S3191A

Creates a small business electric energy tax credit

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 11 / Feb / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 24 / May / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 13 / Jun / 2011
    • REPORTED AND COMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 26 / Jan / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 26 / Jan / 2012
    • PRINT NUMBER 3191A
  • 02 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 30 / May / 2012
    • 1ST REPORT CAL.952
  • 31 / May / 2012
    • 2ND REPORT CAL.
  • 04 / Jun / 2012
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2012
    • COMMITTED TO RULES

Summary

Creates a small business electric energy tax credit; the term "business related electricity usage" shall refer to electrical power usage to further the economic activity of the taxpayer at the primary business location that is clearly delimited from any shared electrical power usage cost.

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Bill Details

See Assembly Version of this Bill:
A10122
Versions:
S3191
S3191A
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L
Versions Introduced in 2009-2010 Legislative Cycle:
S2987

Votes

5
1
5
Aye
1
Nay
2
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details
nay (1)
aye wr (2)

Sponsor Memo

BILL NUMBER:S3191A

TITLE OF BILL:
An act
to amend the tax law, in relation to a small business electric energy
tax credit

SUMMARY OF PROVISIONS:
This bill amends the Tax Law.

Section 1 amends Section 210 of the Tax Law, relating to franchise
taxes on business corporations, by adding a new subdivision 45
creating a small business electric energy tax credit.
The section defines eligibility and other restrictions and
requirements, and provides for a tax credit equal to the product of
two cents per kilowatt hour for all business-related electricity
usage at the taxpayer's primary business location.

Section 2 amends Section 606 of the Tax Law, relating to personal
income tax, by adding a new subsection (uu). This subsection provides
for a small business electric energy tax credit. The section defines
eligibility and other restrictions and requirements, and provides for
a tax credit equal to the product of two cents per kilowatt hour for
all business-related electricity usage at the taxpayer's primary
business location.

Section 3 amends subparagraph (B) of subdivision 1 of subsection (i)
of Section 606 of the tax law, relating to S corporations, adds the
small business electricity energy credit under subsection (uu).

Section 4 provides that this act shall take effect immediately and
shall apply for taxable years beginning after January 1, 2013,
further providing that the empire state film production credit under
subsection (gg), the empire state commercial production credit under
subsection (jj) and the credit for companies who provide
transportation to individuals with disabilities under subsection (oo)
of section 606 of the Tax Law contained in section 3 of this act
shall expire on the same date as provided in section 9 of part P of
Chapter 60 of the Laws of 2004, as amended, section 10 of part v of
Chapter 62 of the Laws of 2006, as amended and section 5 of Chapter
522 of the Laws of 2006, as amended, respectively.

PURPOSE AND JUSTIFICATION:
Small businesses are critical to the
economic health and growth of our state. Small businesses are a
powerful engine of new job growth, and a source of innovation that
will keep our state competitive around the world. Energy costs have
risen faster than many small businesses could have predicted or
planned for, and as a result, many find themselves under financial
pressure.

The bill applies to companies with less than 20 employees. It is
estimated that 386,000 businesses employing 1.4 million New Yorkers
will be impacted by this legislation. This bill will help to offset
these increased costs by offering a tax credit, and help to ensure
that our small businesses will remain healthy and productive. These


tax credits will also help to hold overhead down and make our small
businesses better able to compete both nationally and
internationally.

PRIOR LEGISLATIVE HISTORY:
2006 - S.6566 -- PASSED SENATE
2007 - S.1671 -- PASSED SENATE
2008 - S.1671 -- PASSED SENATE/Ways & Means
2010 - S.2987 -- INVESTIGATIONS
2011 - S.3191 -- INVESTIGATIONS

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3191--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 11, 2011
                               ___________

Introduced by Sens. RANZENHOFER, ALESI, DeFRANCISCO, FUSCHILLO, JOHNSON,
  LARKIN,  MAZIARZ,  O'MARA,  SALAND,  YOUNG  --  read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations -- recommitted to the  Committee  on
  Investigations  and  Government  Operations  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, in relation to a small business electric
  energy tax credit

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  210  of  the  tax law is amended by adding a new
subdivision 45 to read as follows:
  45. SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (A) A TAXPAYER THAT  IS
ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN PARAGRAPH (B) OF THIS SUBDI-
VISION  SHALL  BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.  THE AMOUNT OF THE CREDIT SHALL BE EQUAL  TO  THE  PRODUCT  OF  TWO
CENTS  PER  KILOWATT  HOUR FOR ALL BUSINESS RELATED ELECTRICITY USAGE AT
THE TAXPAYER'S PRIMARY BUSINESS LOCATION.
  (B) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO  MORE  THAN  NINETEEN  FULL
TIME  EQUIVALENT  EMPLOYEES  IN  NEW  YORK  STATE, INCLUDING ANY RELATED
MEMBERS OR  AFFILIATES,  (II)  NOT  BE  A  SOLE-PROPRIETORSHIP  IF  SUCH
SOLE-PROPRIETOR'S  PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH
SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
ING ANY ALLOCATION OR AWARD PURSUANT TO  ANY  PROGRAM  AUTHORIZED  UNDER
ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
  (C)  (I)  THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL REFER TO
ELECTRICAL POWER USAGE USED TO FURTHER  THE  ECONOMIC  ACTIVITY  OF  THE
TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
ANY  SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY BUSINESS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04316-02-2

S. 3191--A                          2

LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE  STATE
OF  NEW  YORK  WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC ACTIVITY IS
GENERATED OR COORDINATED THROUGH.   (III)  THE  TERM  "RELATED  MEMBERS"
SHALL  HAVE  THE  SAME  MEANING  AS  SET FORTH IN CLAUSES (A) AND (B) OF
SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION  NINE  OF  SECTION  TWO
HUNDRED  EIGHT  OF  THIS ARTICLE, AS AMENDED BY SECTION ONE OF PART M OF
CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO  THOUSAND  THREE,  AND
THE  TERM "AFFILIATES" SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF
THE SAME AFFILIATED GROUP (AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF
THE INTERNAL REVENUE CODE) AS THE TAXPAYER.
  (D) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
THE TAXPAYER FOR BUSINESS RELATED ELECTRICITY USAGE DURING  THE  TAXPAY-
ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
PROVIDED  TO  THE  TAXPAYER  BY THE TAXPAYER'S ELECTRICITY POWER SERVICE
PROVIDER.
  (E) THE CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
SHALL  NOT  REDUCE  THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF
THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION  ONE  OF
THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDI-
VISION  FOR  ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT
OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL  BE  TREATED  AS  AN
OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER.  PROVIDED,
HOWEVER,  THE PROVISIONS OF SUBSECTION (C) OF SECTION TEN HUNDRED EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
  S 2. Section 606 of the tax law is amended by adding a new  subsection
(uu) to read as follows:
  (UU) SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (1) A TAXPAYER THAT IS
ELIGIBLE  UNDER  THE  LIMITATIONS  SPECIFIED  IN  PARAGRAPH  TWO OF THIS
SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED  BY  THIS
ARTICLE.  THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE PRODUCT (OR PRO
RATA SHARE OF THE PRODUCT IN THE CASE OF A PARTNERSHIP) OF TWO CENTS PER
KILOWATT HOUR FOR ALL BUSINESS RELATED ELECTRICITY USAGE AT THE  TAXPAY-
ER'S PRIMARY BUSINESS LOCATION.
  (2)  AN  ELIGIBLE  TAXPAYER  SHALL (I) HAVE NO MORE THAN NINETEEN FULL
TIME EQUIVALENT EMPLOYEES IN  NEW  YORK  STATE,  INCLUDING  ANY  RELATED
MEMBERS  OR  AFFILIATES, (II) SHALL NOT BE A SOLE-PROPRIETORSHIP IF SUCH
SOLE-PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF  SUCH
SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
ING  ANY  ALLOCATION  OR  AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER
ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
  (3) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL  REFER  TO
ELECTRICAL  POWER  USAGE  USED  TO  FURTHER THE ECONOMIC ACTIVITY OF THE
TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
ANY SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY  BUSINESS
LOCATION"  SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE STATE
OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S  ECONOMIC  ACTIVITY  IS
GENERATED OR COORDINATED THROUGH. (III) THE TERM "RELATED MEMBERS" SHALL
HAVE  THE  SAME  MEANING AS SET FORTH IN CLAUSES (A) AND (B) OF SUBPARA-
GRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF  SECTION  TWO  HUNDRED
EIGHT  OF  THIS  CHAPTER, AS AMENDED BY SECTION ONE OF PART M OF CHAPTER
SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO THOUSAND THREE, AND  THE  TERM
"AFFILIATES"  SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF THE SAME

S. 3191--A                          3

AFFILIATED GROUP (AS DEFINED IN SECTION  FIFTEEN  HUNDRED  FOUR  OF  THE
INTERNAL REVENUE CODE) AS THE TAXPAYER.
  (4) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
THE  TAXPAYER  FOR BUSINESS RELATED ELECTRICITY USAGE DURING THE TAXPAY-
ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
PROVIDED TO THE TAXPAYER BY THE  TAXPAYER'S  ELECTRICITY  POWER  SERVICE
PROVIDER.
  (5)  IF  THE  AMOUNT  OF  CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xxxiv) to read as
follows:

(XXXIV) SMALL BUSINESS ELECTRIC      QUALIFYING ELECTRICITY USAGE
ENERGY TAX CREDIT                    UNDER SUBDIVISION FORTY-FIVE
UNDER SUBSECTION (UU)                OF SECTION TWO HUNDRED TEN
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2013.

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