senate Bill S3752

Relates to extending the dates of application of the investment tax credit

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Co-Sponsors

Bill Status


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

  • 03 / Mar / 2011
    • REFERRED TO BANKS
  • 09 / Mar / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO BANKS
  • 09 / Jan / 2012
    • RECOMMIT, ENACTING CLAUSE STRICKEN

Summary

Relates to extending the dates of application of the investment tax credit.

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Bill Details

Versions:
S3752
Legislative Cycle:
2011-2012
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd §235, Bank L; amd Part A §124, Chap 56 of 1998; amd Part L §2, Chap 63 of 2000

Votes

Sponsor Memo

BILL NUMBER:S3752

TITLE OF BILL:

An act
to amend the banking law, in relation to eligibility of investment
funds for tax credits;
to amend chapter 56 of the laws of 1998, amending the tax law and other
laws relating to extending the dates of application of the investment
tax credit under articles 9-A, 22 and 32 of the tax law;
and to amend
chapter 63 of the laws of 2000, amending the tax law and other laws
relating to extending the dates of application of the investment tax
credit under article 33 of the tax law, in relation to extending the
effectiveness thereof

PURPOSE:

This bill would extend the investment tax credit for four years for
certain financial services taxpayers.

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend section 235 of the banking law to
provide that investments of funds would be subject to taxation under
articles 9-A, 22, 32 and 33 of the tax law.

Section 2 of this bill would extend the end date of the period during
which qualifying property may be placed in service to qualify for the
investment tax credits applicable to financial services taxpayers
under Tax Law Articles 9-A, 22 and 32 from October 1, 2011 to October
1, 2015.

Section 3 of the bill extends the end date for the period during which
qualifying property may be placed in service to qualify for the
investment tax credit applicable to financial services taxpayers
under Tax Law Article 33 from October 1, 2011 to October 1, 2015.

JUSTIFICATION:

The financial services investment tax credit has allowed taxpayers in
the financial services industry to invest in property and buildings
in New York. In order to be eligible for the tax credit, the property
must be principally used in the ordinary course of the taxpayer's
trade or business as a broker or dealer in connection with
transactions involving stocks, bonds, and other securities. Property
that is principally used in the ordinary course of the taxpayer's
business of providing investment advisory services for loan
origination services or a regulated investment company in connection
with the purchase or sale of securities is also eligible for the tax
credit.

Taxpayers only qualify for the tax credit if all or substantially all
of the employees performing the administrative or support functions
relating to the property are located in New York State.


The credit was last extended in 2008. Another four year extension of
the tax credit will ensure continued investment in New York property
by taxpayers of the financial services industry.

LEGISLATIVE HISTORY:

This is a new bill for 2011.

FISCAL IMPLICATIONS:

The annual revenue foregone due to the extension of this tax credit
has been included in the Executive Budget.

EFFECTIVE DATE:

This bill takes effect immediately.

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

                                  3752

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 3, 2011
                               ___________

Introduced  by  Sens.  GRIFFO, FARLEY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Banks

AN ACT to amend the banking law, in relation to eligibility  of  invest-
  ment  funds  for tax credits; to amend chapter 56 of the laws of 1998,
  amending the tax law and other laws relating to extending the dates of
  application of the investment tax credit under articles 9-A, 22 and 32
  of the tax law; and to amend chapter 63 of the laws of 2000,  amending
  the tax law and other laws relating to extending the dates of applica-
  tion  of the investment tax credit under article 33 of the tax law, in
  relation to extending the effectiveness thereof

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

  Section  1.  Section 235 of the banking law is amended by adding a new
subdivision 32 to read as follows:
  32. INVESTMENTS OF FUNDS MADE PURSUANT TO THIS SECTION SHALL BE  TAXA-
BLE IN ACCORDANCE WITH ARTICLES NINE-A, TWENTY-TWO, THIRTY-TWO AND THIR-
TY-THREE  OF  THE  TAX  LAW  AND SHALL BE ELIGIBLE FOR AN INVESTMENT TAX
CREDIT, UNDER SUCH ARTICLES AS APPLICABLE.
  S 2. Paragraph c of subdivision 2 of section 124 of part A of  chapter
56  of the laws of 1998, amending the tax law and other laws relating to
extending the dates of application of the investment  tax  credit  under
articles  9-A, 22 and 32 of the tax law, as amended by section 1 of part
YY-1 of chapter 57 of the laws of 2008, is amended to read as follows:
  c. Sections fifteen through twenty-seven of this act  shall  apply  to
property  placed in service on or after October 1, 1998 and before Octo-
ber 1, [2011] 2015.
  S 3. Section 2 of part L of chapter 63 of the laws of  2000,  amending
the  tax  law and other laws relating to extending the dates of applica-
tion of the investment tax credit under article 33 of the  tax  law,  as
amended  by section 2 of part YY-1 of chapter 57 of the laws of 2008, is
amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09959-02-1

S. 3752                             2

  S 2. This act shall take effect immediately and shall apply to proper-
ty placed in service on or after January 1, 2002 and before  October  1,
[2011] 2015.
  S 4. This act shall take effect immediately.

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