senate Bill S3850

Provides a tax credit for businesses in heightened flood risk zones that purchase flood insurance

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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

  • 22 / Feb / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 17 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 17 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1381
  • 17 / Jun / 2013
    • PASSED SENATE
  • 17 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 17 / 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
  • 13 / May / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 17 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 17 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1434
  • 17 / Jun / 2014
    • PASSED SENATE
  • 17 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 17 / Jun / 2014
    • REFERRED TO WAYS AND MEANS

Summary

Provides a tax credit for businesses in a heightened flood risk zone that purchase flood insurance: 75% of cost for 2014, 50% of cost for 2015, and 25% of cost for 2016.

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Bill Details

See Assembly Version of this Bill:
A6982
Versions:
S3850
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §§210 & 606, Tax L

Sponsor Memo

BILL NUMBER:S3850

TITLE OF BILL: An act to amend the tax law, in relation to providing
a tax credit for businesses that purchase flood insurance; and
providing for the repeal of such provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF BILL: To provide state sponsored incentives
through tax credits for businesses that currently do not have flood
insurance, but would like to purchase these insurance coverages.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amend Tax Law § 210 to create a corporate franchise tax
credit for affected businesses that purchase flood insurance.
Provides that the credit shall be equal to: (i) seventy-five percent
of the cost of flood insurance for the business on or after January 1,
2014; (ii) fifty percent of the cost of flood insurance for the
business on or after January 1, 2015; and (iii) twenty-five percent of
the cost of flood insurance for business on or after January 1, 2016.
This annual tax credit will expire on December 31, 2016.

Sections 2 and 3: Amend Tax Law § 606 to create a personal income tax
credit for affected businesses that purchase flood insurance.
Provides that the credit shall be equal to: (i) seventy-five percent
of the cost of flood insurance for the business on or after January 1,
2014; (ii) fifty percent of the cost of flood insurance for the
business on or after January 1, 2015; and (iii) twenty-five percent of
the cost of flood insurance for business on or after January 1, 2016.
This annual tax credit will expire on December 31, 2016.

JUSTIFICATION:

In October 2012, due to Superstorm Sandy, extensive flooding occurred
across New York State and caused severe damage in many downstate
communities. The widespread flooding led to many business structures
being completely destroyed. Further, such businesses had to cease or
curtail operations which led to job losses. The negative impacts of
this disaster will be seen in New York for many years to come. This
legislation provides corporate franchise tax and personal income tax
credits for businesses that purchase flood insurance. The credit would
be used as an incentive for businesses to purchase flood insurance to
ensure that such business will be covered in the future in the event
of another flooding disaster.

This legislation specifically targets businesses located in heightened
flood risk zones and that do not currently have flood insurance.
Heightened flood risk zones have been defined by the Federal Emergency
Management Agency (FEMA) and are generally defined as geographic areas
that FEMA has defined according to varying levels of flood risk. Each
zone reflects the severity or type of flooding in the area.

PRIOR LEGISLATIVE HISTORY: None

FISCAL IMPLICATIONS:

To be determined.


EFFECTIVE DATE:

60 days after it shall become law, that any necessary rules and
regulations necessary for implementation are authorized immediately.

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

                                  3850

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 22, 2013
                               ___________

Introduced  by  Sens.  SAVINO,  CARLUCCI,  KLEIN, SMITH, VALESKY -- 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 providing a tax credit for
  businesses that purchase flood insurance; and providing for the repeal
  of such provisions upon expiration thereof

  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. TAX CREDIT FOR BUSINESSES WHICH PURCHASE FLOOD INSURANCE.   (A)  A
QUALIFIED TAXPAYER SHALL BE ALLOWED AN ANNUAL CREDIT FOR THE PURCHASE OF
FLOOD  INSURANCE. THE CREDIT SHALL BE EQUAL TO: (I) SEVENTY-FIVE PERCENT
OF THE COST OF FLOOD INSURANCE FOR THE  BUSINESS  ON  OR  AFTER  JANUARY
FIRST,  TWO  THOUSAND  FOURTEEN; (II) FIFTY PERCENT OF THE COST OF FLOOD
INSURANCE FOR THE BUSINESS ON  OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
FIFTEEN;  AND  (III)  TWENTY-FIVE PERCENT OF THE COST OF FLOOD INSURANCE
FOR THE BUSINESS ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  FIFTEEN  AND
BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN.
  (B) IN NO EVENT SHALL THE CREDIT UNDER THIS SUBDIVISION REDUCE THE TAX
PAYABLE  TO  LESS THAN THE DOLLAR AMOUNT FIXED AS A MINIMUM TAX BY PARA-
GRAPH (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT  OF
CREDIT  ALLOWED  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR WOULD HAVE
REDUCED THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  USED  IN
SUCH TAXABLE YEAR MAY 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.
  (C) FOR PURPOSES  OF  THIS  SUBDIVISION,  "QUALIFIED  TAXPAYER"  SHALL
INCLUDE, BUT NOT BE LIMITED TO BUSINESSES OPERATING IN OR OUT OF A RESI-
DENCE  WHOSE BUSINESS IS LOCATED WITHIN A HEIGHTENED FLOOD RISK ZONE AND
DOES NOT CURRENTLY HAVE FLOOD INSURANCE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09183-02-3

S. 3850                             2

  S 2. Section 606 of the tax law is amended by adding a new  subsection
(s-1) to read as follows:
  (S-1)  CREDIT  FOR ANNUAL BUSINESS PURCHASE OF FLOOD INSURANCE.  (1) A
QUALIFIED TAXPAYER SHALL BE ALLOWED  AN  ANNUAL  CREDIT  AS  HEREINAFTER
PROVIDED  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE FOR THE PURCHASE OF
FLOOD INSURANCE. THE AMOUNT OF THE CREDIT  SHALL  BE:  (I)  SEVENTY-FIVE
PERCENT  OF  THE  COST  OF  FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER
JANUARY FIRST, TWO THOUSAND FOURTEEN; (II) FIFTY PERCENT OF THE COST  OF
FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND
FIFTEEN;  AND  (III)  TWENTY-FIVE PERCENT OF THE COST OF FLOOD INSURANCE
FOR THE BUSINESS ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  FIFTEEN  AND
BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN.
  (2)  FOR  PURPOSES  OF  THIS  SUBSECTION,  "QUALIFIED  TAXPAYER" SHALL
INCLUDE, BUT NOT BE LIMITED TO BUSINESSES OPERATING IN OR OUT OF A RESI-
DENCE WHOSE BUSINESS IS LOCATED WITHIN A HEIGHTENED FLOOD RISK ZONE  AND
DOES NOT CURRENTLY HAVE FLOOD INSURANCE.
  (3)  IF  THE  AMOUNT  OF  CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL
EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY 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) PURCHASE OF FLOOD INSURANCE   AMOUNT OF CREDIT UNDER
BY BUSINESSES UNDER SUBSECTION (S-1) SUBDIVISION FORTY-SIX OF
                                     SECTION TWO HUNDRED TEN
  S 4. The commissioner of taxation and finance  shall  prescribe  rules
and  regulations  necessary  to  establish the criteria for a heightened
flood risk zone and for the implementation of the tax credit  for  busi-
nesses which purchase flood insurance provided by this act.
  S  5.  This  act  shall take effect on the sixtieth day after it shall
have become a law and shall expire December 31,  2016,  when  upon  such
date the provisions of this act shall be deemed repealed.

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