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

                                  2979

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2013
                               ___________

Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law, in relation to providing a  tax  credit  to
  small businesses that purchase and install a security system

  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 24-a to read as follows:
  24-A.  CREDIT  FOR  SMALL  BUSINESS PURCHASE OF SECURITY SYSTEM. (A) A
TAXPAYER SHALL BE ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER
PROVIDED,  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE, FOR THE PURCHASE,
OTHER THAN FOR RESALE, OF A SECURITY SYSTEM.
  (B) FOR THE PURPOSES OF THIS SUBDIVISION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "SECURITY  SYSTEM"  IS  DEFINED  AS  A SYSTEM INSTALLED TO DETECT
INTRUSION, BREAK-IN, MOVEMENT, SOUND OR FIRE.
  (2) "SMALL BUSINESS" MEANS A NEW YORK TAXPAYER AS DEFINED IN PARAGRAPH
(F) OF SUBDIVISION ONE OF THIS SECTION WHO HAS FEWER THAN FIFTY  EMPLOY-
EES IN THE INITIAL TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
  (C)  THE  AMOUNT  OF  CREDIT SHALL BE FIFTY PERCENT OF THE COST TO THE
TAXPAYER FOR THE PURCHASE  AND  INSTALLATION  OF  SUCH  SECURITY  SYSTEM
DURING  THE  TAXABLE  YEAR  OF PURCHASE, SUCH CREDIT NOT TO EXCEED SEVEN
HUNDRED FIFTY DOLLARS WITH RESPECT TO EACH  PURCHASE  AND  INSTALLATION.
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.
  S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxv) to read as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07043-01-3

A. 2979                             2
              

(XXXV) CREDIT FOR SMALL BUSINESS     PURCHASE AND INSTALLATION
PURCHASE AND INSTALLATION            COSTS OF A SECURITY SYSTEM
OF A SECURITY SYSTEM                 UNDER SUBDIVISION
UNDER SUBSECTION (S-1)               TWENTY-FOUR-A OF SECTION
                                     TWO HUNDRED TEN OR
                                     SUBSECTION (J-1) OF
                                     SECTION FOURTEEN HUNDRED
                                     FIFTY-SIX
  S  3. Section 606 of the tax law is amended by adding a new subsection
(s-1) to read as follows:
  (S-1) CREDIT FOR SMALL BUSINESS PURCHASE AND INSTALLATION OF A SECURI-
TY SYSTEM. A TAXPAYER SHALL BE ALLOWED A CREDIT AS HEREINAFTER PROVIDED,
AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE PURCHASE  AND  INSTALLA-
TION  OF A SECURITY SYSTEM, AS SUCH TERM IS DEFINED IN SUBDIVISION TWEN-
TY-FOUR-A OF SECTION TWO HUNDRED TEN OF  THIS  CHAPTER.  THE  AMOUNT  OF
CREDIT  SHALL  BE  FIFTY  PERCENT  OF  THE  COST  TO THE TAXPAYER OF THE
PURCHASE AND INSTALLATION OF THE  SECURITY  SYSTEM  DURING  THE  TAXABLE
YEAR, SUCH CREDIT NOT TO EXCEED SEVEN HUNDRED FIFTY DOLLARS WITH RESPECT
TO EACH SYSTEM PURCHASED AND INSTALLED.
  S 4. Section 1456 of the tax law is amended by adding a new subsection
(j-1) to read as follows:
  (J-1) CREDIT FOR SMALL BUSINESS PURCHASE AND INSTALLATION OF A SECURI-
TY SYSTEM. A TAXPAYER SHALL BE ALLOWED A CREDIT AS HEREINAFTER PROVIDED,
AGAINST  THE  TAX IMPOSED BY THIS ARTICLE FOR THE PURCHASE AND INSTALLA-
TION OF A SECURITY SYSTEM, AS SUCH TERM IS DEFINED IN SUBDIVISION  TWEN-
TY-FOUR-A OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.  THE AMOUNT OF THE
CREDIT  SHALL  BE  FIFTY  PERCENT  OF  THE  COST  TO THE TAXPAYER OF THE
PURCHASE AND INSTALLATION OF SUCH SECURITY  SYSTEM  DURING  THE  TAXABLE
YEAR,    SUCH  CREDIT  NOT  TO  EXCEED  SEVEN HUNDRED FIFTY DOLLARS WITH
RESPECT TO EACH SYSTEM PURCHASED AND INSTALLED. THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE  TAX  DUE  FOR
SUCH  YEAR  TO  LESS  THAN  THE  MINIMUM  TAX FIXED BY SUBSECTION (B) OF
SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS ARTICLE.
  S 5. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (l-1) to read as follows:
  (L-1)  CREDIT FOR SMALL BUSINESS PURCHASE AND INSTALLATION OF SECURITY
SYSTEM. A TAXPAYER SHALL BE ALLOWED A CREDIT  AS  HEREINAFTER  PROVIDED,
AGAINST  THE  TAX IMPOSED BY THIS ARTICLE FOR THE PURCHASE AND INSTALLA-
TION OF A SECURITY SYSTEM, AS SUCH TERM IS DEFINED IN SUBDIVISION  TWEN-
TY-FOUR-A OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.  THE AMOUNT OF THE
CREDIT  SHALL  BE  FIFTY  PERCENT  OF  THE  COST  TO THE TAXPAYER OF THE
PURCHASE AND INSTALLATION OF SUCH SYSTEM DURING THE TAXABLE  YEAR,  SUCH
CREDIT  NOT  TO  EXCEED SEVEN HUNDRED FIFTY DOLLARS WITH RESPECT TO EACH
SYSTEM PURCHASED AND INSTALLED. THE CREDIT ALLOWED UNDER  THIS  SUBDIVI-
SION  FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO
LESS THAN THE MINIMUM FIXED BY PARAGRAPH  FOUR  OF  SUBDIVISION  (A)  OF
SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE.
  S 6. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2015.