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

                                  7572

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen.  PARKER -- 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 a small business grid renew-
  able energy tax credit

  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 50 to read as follows:
  50. SMALL BUSINESS GRID RENEWABLE ENERGY TAX CREDIT.  (A)  A  TAXPAYER
THAT  IS  ELIGIBLE  UNDER  THE LIMITATIONS SPECIFIED IN PARAGRAPH (B) OF
THIS SUBDIVISION SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED  BY
THIS ARTICLE.  THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY PERCENT
OF THE COST OF CONVERSION FROM ELECTRIC OR GAS TO RENEWABLE ENERGY.
  (B)  AN  ELIGIBLE  TAXPAYER  SHALL (I) HAVE NO MORE THAN NINETEEN FULL
TIME EQUIVALENT EMPLOYEES IN  NEW  YORK  STATE,  INCLUDING  ANY  RELATED
MEMBERS  OR  AFFILIATES,  (II)  NOT  BE  A  SOLE-PROPRIETORSHIP  IF SUCH
SOLE-PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF  SUCH
SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
ARTICLE  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW, (IV) NOT BE RECEIVING
ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER ARTICLE
SIX OF THE ECONOMIC DEVELOPMENT LAW, AND (V) SHALL BE LOCATED  WITHIN  A
CERTAIN RADIUS OF OTHER QUALIFIED SMALL BUSINESSES.
  (C) (I) THE TERM "BUSINESS RELATED RENEWABLE ENERGY USAGE" SHALL REFER
TO RENEWABLE ENERGY POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF
THE  TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED
FROM ANY SHARED RENEWABLE ENERGY  POWER  USAGE  COST.    (II)  THE  TERM
"PRIMARY BUSINESS LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER
WITHIN  THE  STATE  OF  NEW  YORK  WHERE  THE MAJORITY OF THE TAXPAYER'S
ECONOMIC ACTIVITY IS GENERATED OR COORDINATED THROUGH.   (III) THE  TERM
"RELATED  MEMBERS"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN CLAUSES
(A) AND (B) OF SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE  OF
SECTION  TWO  HUNDRED  EIGHT  OF THIS ARTICLE, AND THE TERM "AFFILIATES"
SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF  THE  SAME  AFFILIATED

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

                                                           LBD15221-01-4

S. 7572                             2

GROUP (AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVEN-
UE CODE) AS THE TAXPAYER.
  (D)  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN  THE  HIGHER  OF
THE  AMOUNTS  PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF
THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDI-
VISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,  ANY  AMOUNT
OF  CREDIT  NOT  DEDUCTIBLE  IN SUCH TAXABLE YEAR SHALL 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. PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) SMALL BUSINESS GRID RENEWABLE ENERGY TAX CREDIT. (1) A  TAXPAYER
THAT  IS  ELIGIBLE  UNDER  THE LIMITATIONS SPECIFIED IN PARAGRAPH TWO OF
THIS SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST  THE  TAX  IMPOSED  BY
THIS  ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY PERCENT
OF THE COST OF CONVERSION FROM ELECTRIC OR GAS TO RENEWABLE ENERGY.
  (2) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO  MORE  THAN  NINETEEN  FULL
TIME  EQUIVALENT  EMPLOYEES  IN  NEW  YORK  STATE, INCLUDING ANY RELATED
MEMBERS OR AFFILIATES, (II) SHALL NOT BE A SOLE-PROPRIETORSHIP  IF  SUCH
SOLE-PROPRIETOR'S  PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH
SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, (IV) NOT  BE  RECEIVING
ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER ARTICLE
SIX  OF  THE ECONOMIC DEVELOPMENT LAW, AND (V) SHALL BE LOCATED WITHIN A
CERTAIN RADIUS OF OTHER QUALIFIED SMALL BUSINESSES.
  (3) (I) THE TERM "BUSINESS RELATED RENEWABLE ENERGY USAGE" SHALL REFER
TO RENEWABLE ENERGY POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF
THE TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY  DELIMITED
FROM ANY SHARED RENEWABLE ENERGY POWER USAGE COST. (II) THE TERM "PRIMA-
RY BUSINESS LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITH-
IN  THE  STATE OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC
ACTIVITY IS GENERATED OR COORDINATED THROUGH. (III)  THE  TERM  "RELATED
MEMBERS" SHALL HAVE THE SAME MEANING AS SET FORTH IN CLAUSES (A) AND (B)
OF  SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF SECTION TWO
HUNDRED EIGHT OF THIS CHAPTER, AND  THE  TERM  "AFFILIATES"  SHALL  MEAN
THOSE  CORPORATIONS  THAT  ARE  MEMBERS OF THE SAME AFFILIATED GROUP (AS
DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE) AS
THE TAXPAYER.
  (4) IF THE AMOUNT OF CREDIT ALLOWED  UNDER  THIS  SUBSECTION  FOR  ANY
TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL 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  (xli)  to  read  as
follows:

(XLI) SMALL BUSINESS GRID RENEWABLE  QUALIFYING GRID RENEWABLE ENERGY
ENERGY TAX CREDIT UNDER              USAGE UNDER SUBDIVISION FIFTY
SUBSECTION (CCC)                     OF SECTION TWO HUNDRED TEN
  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.