senate Bill S1694

Amended

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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / May / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 14 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 14 / Jan / 2014
    • PRINT NUMBER 1694A

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:
A761A
Versions:
S1694
S1694A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3191A, A10122
2009-2010: S2987

Votes

7
1
7
Aye
1
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S1694

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 46
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, with a cap of S 1,000 per
taxable year.

Section 2 amends Section 606 of the Tax Law, relating to personal
income tax, by adding a new subsection (vv). 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 (vv).

Section 4 provides that this act shall take effect on the first of
January next succeeding the date on which it shall have become law and
shall apply for taxable years beginning such date.

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 2011-12 - S.3191-A/A.10122 --
RULES/Ways & Means

FISCAL IMPLICATIONS: To be determined.


EFFECTIVE DATE: This act shall take effect one the first day of
January next succeeding the date on which it becomes law.

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

                                  1694

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens. RANZENHOFER, BONACIC, DeFRANCISCO, LARKIN, MAZIARZ
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Investigations and Government Operations

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 46 to read as follows:
  46.  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 UP TO A ONE THOUSAND DOLLAR
LIMIT DURING THE TAXABLE YEAR.
  (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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02563-02-3

S. 1694                             2

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 ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND 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
(vv) to read as follows:
  (VV) 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 UP TO A ONE THOUSAND DOLLAR LIMIT DURING
THE TAXABLE YEAR.
  (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
AFFILIATED  GROUP  (AS  DEFINED  IN  SECTION FIFTEEN HUNDRED FOUR OF THE
INTERNAL REVENUE CODE) AS THE TAXPAYER.

S. 1694                             3

  (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 (xxxv) to read as
follows:

(XXXV) SMALL BUSINESS ELECTRIC       QUALIFYING ELECTRICITY USAGE
ENERGY TAX CREDIT                    UNDER SUBDIVISION FORTY-SIX
UNDER SUBSECTION (VV)                OF SECTION TWO HUNDRED TEN
  S 4. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

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