senate Bill S37A

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business

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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
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 23 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 23 / Jan / 2014
    • PRINT NUMBER 37A

Summary

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.

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Bill Details

See Assembly Version of this Bill:
A4199A
Versions:
S37
S37A
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 2011-2012 Legislative Cycle:
S6754, A10138

Sponsor Memo

BILL NUMBER:S37A

TITLE OF BILL: An act to amend the tax law, in relation to
establishing business franchise and personal income tax credits for
certain businesses which contract with the state or political
subdivisions thereof and in unrelated contracts, also with minority
and women-owned business enterprises

PURPOSE:

Establishes business franchise and personal income tax credits for a
portion of the consideration paid under a contract with a minority or
women-owned business.

SUMMARY OF PROVISIONS:

Section 1 amends section 210 the tax law by adding a new subdivision
48 creating a business franchise tax credit for businesses that
contract with both the state and, in a separate and unrelated
transaction, with a women or minority owned business.

Sections 2 and 3 establish a personal income tax credit for tax payers
who contract with both the state and, in a separate and unrelated
transaction, with a women or minority owned business.

Section 4 establishes the effective date.

JUSTIFICATION:

New York has been a longtime leader in the promotion of minority and
women owned business enterprises ("MWBEs"). The core goals of the
State's efforts are 1) equality of economic opportunities for MWBEs
and 2) elimination of barriers to their participation in state
contracts. The problem is that the State has focused on the latter as
the sole means of achieving the former. In order to help build fully
self-sustaining minority and women owned businesses, the State must
also do its part to encourage private entities to contract with MWBEs.
This legislation would incentivize the private sector to build
long-term business relationships with MWBEs by offering business
franchise and personal income tax credits for companies and
individuals that contract with both MWBEs and the State. State
contracts are critical for initial growth, but insufficient for
long-term success. This legislation would help build grow existing
MWBEs while paving the way for the next generation.

LEGISLATIVE HISTORY:

2011-12: S.6754

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:


This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to tax years
commencing on or after such date.

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

                                  37--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment 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 establishing business fran-
  chise and personal income tax credits  for  certain  businesses  which
  contract with the state or political subdivisions thereof and in unre-
  lated  contracts,  also  with minority and women-owned business enter-
  prises

  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 48 to read as follows:
  48. MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT. (A)
GENERAL. A TAXPAYER SHALL  BE  ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS
PROVIDED  IN  THIS  SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE
FOR A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR  WOMEN-
OWNED  BUSINESS  ENTERPRISE  PURSUANT TO A CONTRACT FOR THE PROVISION OF
GOODS OR SERVICES. THE CREDIT PROVIDED FOR IN THIS SUBDIVISION SHALL  BE
ALLOWED  WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID
TO THE MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
  (B) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION,  THE  FOLLOWING
TERMS SHALL MEAN:
  (I)  "GOVERNMENT  AGENCY" MEANS A STATE AGENCY OR A STATE AUTHORITY AS
DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
TIVE LAW, OR A POLITICAL SUBDIVISION AS DEFINED IN  SUBDIVISION  ONE  OF
SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
  (II)   "MINORITY   OR   WOMEN-OWNED   BUSINESS   ENTERPRISE"  MEANS  A
MINORITY-OWNED BUSINESS ENTERPRISE AS DEFINED IN  SUBDIVISION  SEVEN  OF
SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00317-02-4

S. 37--A                            2

ENTERPRISE  AS  DEFINED  IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED
TEN OF THE EXECUTIVE LAW.
  (C)  COMPUTATION.  THE  CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL BE
EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
TY OR WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO  A  CONTRACT  FOR  THE
PROVISION  OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT SUCH
CONTRACT WAS NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A  OF  THE
EXECUTIVE  LAW OR ANY OTHER PROVISION OF LAW RELATING TO THE AFFIRMATIVE
ACTION, AND THE TAXPAYER IS  NOT  A  MINORITY  OR  WOMEN-OWNED  BUSINESS
ENTERPRISE.    FURTHERMORE,  THE  AMOUNT OF SUCH CREDIT SHALL NOT EXCEED
FIVE PERCENT OF ALL CONSIDERATION PAID TO THE TAXPAYER  DURING  THE  TAX
YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF
GOODS OR SERVICES.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause  (xxxvii)  to  read  as
follows:
(XXXVII) MINORITY AND                AMOUNT OF CREDIT
WOMEN-OWNED BUSINESS                 UNDER SUBDIVISION
EMPLOYMENT INCENTIVE                 FORTY-EIGHT OF
CREDIT UNDER                         SECTION TWO
SUBSECTION (U)                       HUNDRED TEN
  S  3. Section 606 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U) MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT. (1)
GENERAL. A TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED
IN THIS SUBSECTION, AGAINST THE  TAX  IMPOSED  BY  THIS  ARTICLE  FOR  A
CERTAIN  PORTION  OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-OWNED
BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS OR
SERVICES.  THE CREDIT PROVIDED FOR IN THIS SUBSECTION SHALL  BE  ALLOWED
WITH  RESPECT  TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID TO THE
MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS  SUBSECTION,  THE  FOLLOWING
TERMS SHALL MEAN:
  (I)  "GOVERNMENT  AGENCY" MEANS A STATE AGENCY OR A STATE AUTHORITY AS
DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
TIVE LAW, OR A POLITICAL SUBDIVISION AS DEFINED IN  SUBDIVISION  ONE  OF
SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
  (II)   "MINORITY   OR   WOMEN-OWNED   BUSINESS   ENTERPRISE"  MEANS  A
MINORITY-OWNED BUSINESS ENTERPRISE AS DEFINED IN  SUBDIVISION  SEVEN  OF
SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS
ENTERPRISE  AS  DEFINED  IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED
TEN OF THE EXECUTIVE LAW.
  (3) COMPUTATION. THE CREDIT AUTHORIZED BY  THIS  SUBSECTION  SHALL  BE
EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
TY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE PURSUANT TO A CONTRACT FOR THE
PROVISION OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT  SUCH
CONTRACT  WAS  NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A OF THE
EXECUTIVE LAW OR ANY OTHER PROVISION  OF  LAW  RELATING  TO  AFFIRMATIVE
ACTION,  AND  THE  TAXPAYER  IS  NOT  A MINORITY OR WOMEN-OWNED BUSINESS
ENTERPRISE.  FURTHERMORE, THE AMOUNT OF SUCH  CREDIT  SHALL  NOT  EXCEED
FIVE  PERCENT  OF  ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX
YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF
GOODS OR SERVICES.
  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 and shall apply to tax
years commencing on or after such date.

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