senate Bill S7196B

Vetoed

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

download pdf

Sponsor

Co-Sponsors

Bill Status


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

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.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A9220C
Versions:
S7196
S7196A
S7196B
Legislative Cycle:
2013-2014
Law Section:
Tax Law
Laws Affected:
Amd ยง16, Tax L

Sponsor Memo

BILL NUMBER:S7196B

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: To take effect immediately.

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

                                 7196--B

                            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  --  reported
  favorably  from  said  committee  and  committed  to  the Committee on
  Finance -- 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.   PROVIDED   HOWEVER,  TAXPAYERS  FILING  UNDER  ARTICLE
TWENTY-TWO OF THIS CHAPTER SHALL INCLUDE FOR THE  PURPOSES  OF  THE  TAX
FACTOR  ALL  BUSINESS  INCOME  ATTRIBUTABLE  TO A QEZE BUSINESS WHICH IS
TAXABLE UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER. 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  article. The tax factor shall be, in the case of article thir-
ty-three of this chapter, the larger of the amounts  of  tax  determined
for  the  taxable 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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14537-07-4

S. 7196--B                          2

  (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
(a) through (d) of section six hundred one  of  such  article.  PROVIDED
HOWEVER, TAXPAYERS FILING UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL
INCLUDE FOR THE PURPOSES OF THE TAX FACTOR ALL BUSINESS INCOME ATTRIBUT-
ABLE  TO  A  QEZE  BUSINESS WHICH IS TAXABLE UNDER ARTICLE TWENTY-TWO OF
THIS CHAPTER. 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 taxable 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.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.