senate Bill S7196A

Vetoed Amended

Relates to taxpayers filing under article twenty-two of the tax law to include for the purposes of the tax factor all business income attributable to a QEZE business

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Vetoed by Governor
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actions

  • 05 / May / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / May / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 19 / May / 2014
    • PRINT NUMBER 7196A
  • 02 / Jun / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 06 / Jun / 2014
    • AMEND AND RECOMMIT TO FINANCE
  • 06 / Jun / 2014
    • PRINT NUMBER 7196B
  • 18 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 18 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1492
  • 18 / Jun / 2014
    • PASSED SENATE
  • 18 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 18 / Jun / 2014
    • REFERRED TO WAYS AND MEANS
  • 19 / Jun / 2014
    • SUBSTITUTED FOR A9220C
  • 19 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.471
  • 19 / Jun / 2014
    • PASSED ASSEMBLY
  • 19 / Jun / 2014
    • RETURNED TO SENATE
  • 05 / Dec / 2014
    • DELIVERED TO GOVERNOR
  • 17 / Dec / 2014
    • VETOED MEMO.566

Summary

Relates to taxpayers filing under article twenty-two of the tax law to include for the purposes of the tax factor all business income attributable to a QEZE business.

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Bill Details

See Assembly Version of this Bill:
A9220B
Versions:
S7196
S7196A
S7196B
Legislative Cycle:
2013-2014
Law Section:
Tax Law
Laws Affected:
Amd ยง16, Tax L

Votes

7
0
7
Aye
0
Nay
2
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S7196A

TITLE OF BILL:
An act
to amend the tax law, in relation to QEZE tax reduction credits

PURPOSE OR GENERAL IDEA OF BILL: To encourage the
growth of New York
State manufacturing by allowing the inclusion of all income derived
from a business for the purposes of claiming the QEZE tax credit.

SUMMARY OF PROVISIONS:

Section 1 - Paragraph 1 of subdivision (f) of section 16 of the Tax
Law, as amended by section 14 of part CC of Chapter 85 of the Laws of
2002, is amended to include all business income as
income allotted for the purposes of calculating the tax factor under
article 22 of this chapter.

Section 2 - This act shall take effect immediately.

JUSTIFICATION: The QEZE tax credit was designed to
encourage
employment in New York State. An allocation between New York and
non-New York income was not included in the original statute. The
allocation serves no purpose because the tax credit is designed to
encourage employment in New York in manufacturing, not to encourage
sales of manufactured products in New York. In fact, our economy
benefits when New York manufacturers are able to sell overseas. The
Tax Department interpretation of the QEZE discourages manufacturing
for export which is contrary to sound economic policy.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: There will be fiscal
implications to New York
State in regard to tax revenues collected from QEZE approved
businesses.

EFFECTIVE DATE:

Immediately.

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

                                 7196--A

                            I N  S E N A T E

                               May 5, 2014
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government  Operations  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to QEZE tax reduction credits

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

  Section  1.  Paragraph  1  of subdivision (f) of section 16 of the tax
law, as amended by section 14 of part CC of chapter 85 of  the  laws  of
2002, is amended to read as follows:
  (1) General. The tax factor shall be, in the case of article nine-A of
this  chapter, the larger of the amounts of tax determined for the taxa-
ble year under paragraphs (a) and (c) of subdivision one of section  two
hundred  ten  of  such  article. The tax factor shall be, in the case of
article twenty-two of this chapter, the tax determined for  the  taxable
year  under  subsections  (a)  through (d) of section six hundred one of
such article. FOR THE PURPOSES OF CALCULATING THE TAX FACTOR UNDER ARTI-
CLE TWENTY-TWO OF THIS CHAPTER, INCOME ALLOCATED TO NEW YORK STATE SHALL
INCLUDE ALL BUSINESS INCOME. The tax factor shall be,  in  the  case  of
article  thirty-two  of  this  chapter, the larger of the amounts of tax
determined for the taxable year under subsection (a) and  paragraph  two
of  subsection  (b) of section fourteen hundred fifty-five of such arti-
cle. The tax factor shall be, in the case  of  article  thirty-three  of
this  chapter, the larger of the amounts of tax determined for the taxa-
ble year under paragraphs one and three of subdivision  (a)  of  section
fifteen hundred two of such article.
  S  2.  Paragraph 1 of subdivision (f) of section 16 of the tax law, as
amended by section 34 of part A of chapter 59 of the laws  of  2014,  is
amended to read as follows:
  (1) General. The tax factor shall be, in the case of article nine-A of
this  chapter,  the  amount of tax determined for the taxable year under
paragraph (a) of subdivision one of section  two  hundred  ten  of  such
article.  The  tax factor shall be, in the case of article twenty-two of
this chapter, the tax determined for the taxable year under  subsections

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14537-05-4

S. 7196--A                          2

(a)  through  (d)  of  section six hundred one of such article.  FOR THE
PURPOSES OF CALCULATING THE TAX FACTOR UNDER ARTICLE TWENTY-TWO OF  THIS
CHAPTER,  INCOME  ALLOCATED TO NEW YORK STATE SHALL INCLUDE ALL BUSINESS
INCOME.  The tax factor shall be, in the case of article thirty-three of
this chapter, the larger of the amounts of tax determined for the  taxa-
ble  year  under  paragraphs one and three of subdivision (a) of section
fifteen hundred two of such article.
  S 3. This act shall take effect immediately;  provided,  however  that
section  two  of  this act shall take effect on the same date and in the
same manner as section 34 of part A of chapter 59 of the  laws  of  2014
takes effect.

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