senate Bill S2021A

Provides an exemption from the tax on sales and the compensating use tax for certain equipment purchased by companies located in college incubator facilities

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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
  • 11 / Jun / 2013
    • REPORTED AND COMMITTED TO RULES
  • 11 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1232
  • 12 / Jun / 2013
    • PASSED SENATE
  • 12 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 12 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Feb / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / Feb / 2014
    • PRINT NUMBER 2021A

Summary

Provides an exemption from the tax on sales and the compensating use tax for equipment, with a purchase price of five hundred dollars or greater, purchased by companies located in college incubator facilities or incubator facilities funded by the state.

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Bill Details

See Assembly Version of this Bill:
A1929A
Versions:
S2021
S2021A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง1115, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3175A, A5027A
2009-2010: S1997, A2815
2007-2008: A2072B

Sponsor Memo

BILL NUMBER:S2021A

TITLE OF BILL: An act to amend the tax law, in relation to providing
an exemption from the tax on sales and the compensating use tax for
certain equipment purchased by companies located in academic incubator
facilities

PURPOSE:

This legislation is consistent with our state's general efforts to
encourage the creation and growth of small business. Companies in
incubators, by their nature, are small and have limited resources.
This bill alleviates a small but significant tax burden on these firms
by exempting them from sales tax on equipment that costs $500 or more.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 1115 of the tax law which
provides companies that are located in an academic incubator facility
with a sales tax exemption for the purchase of equipment with a price
of $500 or more, and provides for the definition of an academic
incubator.

JUSTIFICATION:

During the last decade, one of the most effective state tools used to
encourage job growth and creation has been its investment in high
technology incubators. Incubator facilities provide researchers and
entrepreneurs with the physical space and support staff necessary to
help transfer the technology developed in the laboratory into a
commercial product of value.

Efforts to develop research ides into viable products are usually done
with limited resources. Costs of operation must be kept at a minimum
to allow researchers the opportunity to advance their theories.
Incubators certainly provide low cost office space, however, rents are
not the only expense that these businesses incur. Equipment costs can
also be a major impediment to the success of the business. To help
reduce this cost this bill would exempt business. To help rescue this
cost this bill would exempt businesses located in incubators from
sales tax on equipment purchases. Taxing this equipment is contrary to
the general concept of incubators, which is to reduce the cost
associated with a start-up firm struggling to develop its
ides/research into a product.

The amendment clarifies that the exemption is only for those companies
located in an academic incubator facility and the equipment be used in
the incubator facility.

LEGISLATIVE HISTORY:

2011-12 S.3175A/A.5027A;
2009-2010 S.1997;
2007-08 S.942B;
2005-06 S.1415A;
2003-04 S.485;
2001-02 S.2341.


FISCAL IMPLICATIONS:

Implementation: There would be some loss of state revenue.

EFFECTIVE DATE:

This act shall take effect September 1, 2014.

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

    S. 2021--A                                            A. 1929--A

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

IN  SENATE  --  Introduced  by  Sens.  LAVALLE, GOLDEN, KENNEDY, LARKIN,
  O'MARA, RANZENHOFER, VALESKY -- read twice and  ordered  printed,  and
  when  printed  to  be committed to the Committee on Investigations and
  Government Operations -- recommitted  to  the  Committee  on  Investi-
  gations  and  Government  Operations in accordance with Senate Rule 6,
  sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

IN  ASSEMBLY  --  Introduced by M. of A. SCHIMMINGER, SWEENEY, COLTON --
  Multi-Sponsored by -- M. of A. KOLB, MAGEE -- read once  and  referred
  to  the Committee on Ways and Means -- recommitted to the Committee on
  Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the tax law, in relation to providing an exemption  from
  the  tax  on  sales and the compensating use tax for certain equipment
  purchased by companies located in academic incubator facilities

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

  Section  1.  Subdivision (a) of section 1115 of the tax law is amended
by adding a new paragraph 44 to read as follows:
  (44) EQUIPMENT WITH A PURCHASE PRICE OF FIVE HUNDRED DOLLARS OR GREAT-
ER PURCHASED BY ANY COMPANY LOCATED IN AN  INCUBATOR  FACILITY  THAT  IS
ASSOCIATED  WITH A COLLEGE, AS DEFINED IN SUBDIVISION TWO OF SECTION TWO
OF THE EDUCATION LAW, OR AN INCUBATOR FACILITY THAT  IS  FUNDED  BY  THE
STATE.  SUCH  EQUIPMENT  MUST  BE USED DIRECTLY AND PREDOMINATELY WITHIN
SUCH INCUBATOR FACILITY.
  S 2. This act shall take effect September 1, 2014.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03803-02-4

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