NY State Senate Bill 2013-S37A

Senate Bill S37A

2013-2014 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 23, 2014	print number 37a
Jan 23, 2014	amend and recommit to investigations and government operations
Jan 08, 2014	referred to investigations and government operations
Jan 09, 2013	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2013-S37 - Details

See Assembly Version of this Bill:: A4199
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6754, A10138
2015-2016: S1114, A6982
2017-2018: S319, A2190
2019-2020: S845, A7008
2021-2022: S604

2013-S37 - 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.

2013-S37 - Sponsor Memo

                                BILL NUMBER:S37

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
46 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.

2013-S37 - Bill Text download pdf

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

                                   37

                       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

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 46 to read as follows:
  46. 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.
                                                           LBD00317-01-3

S. 37                               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  (xxxv)  to  read  as
follows:
(XXXV) MINORITY AND                  AMOUNT OF CREDIT
WOMEN-OWNED BUSINESS                 UNDER SUBDIVISION
EMPLOYMENT INCENTIVE                 FORTY-SIX OF
CREDIT UNDER                         SECTION TWO
SUBSECTION (VV)                      HUNDRED TEN
  S  3. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV) 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.

2013-S37A (ACTIVE) - Details

See Assembly Version of this Bill:: A4199
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6754, A10138
2015-2016: S1114, A6982
2017-2018: S319, A2190
2019-2020: S845, A7008
2021-2022: S604

2013-S37A (ACTIVE) - 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.

2013-S37A (ACTIVE) - 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.

2013-S37A (ACTIVE) - Bill Text download pdf

                            
                    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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