S T A T E O F N E W Y O R K
________________________________________________________________________
4726--A
2009-2010 Regular Sessions
I N A S S E M B L Y
February 5, 2009
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Introduced by M. of A. MORELLE, SCHIMMINGER, DESTITO, HOYT, DelMONTE,
LUPARDO, SCHROEDER, JAFFEE, STIRPE -- Multi-Sponsored by -- M. of A.
GORDON, GUNTHER, MAGEE -- read once and referred to the Committee on
Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing the economic
resurgence initiative 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 12-H to read as follows:
12-H. ECONOMIC RESURGENCE INITIATIVE CREDIT. (A) WHERE A TAXPAYER IS
ALLOWED A CREDIT UNDER THE INVESTMENT TAX CREDIT (ITC) PURSUANT TO
SUBDIVISION TWELVE OF THIS SECTION WITH RESPECT TO PROPERTY, THE ACQUI-
SITION, CONSTRUCTION, RECONSTRUCTION, OR ERECTION OF WHICH COMMENCED ON
OR AFTER THE FIRST DAY OF JANUARY, TWO THOUSAND NINE, THE TAXPAYER MAY
WAIVE THE RIGHT TO USE ALL OR A PORTION OF THE EXPENDITURE FOR SUCH
PROPERTY ELIGIBLE FOR THE INVESTMENT TAX CREDIT AND ELECT, TO THE EXTENT
OF THE AMOUNT OF SUCH PROPERTY EXPENDITURE FOR WHICH THE TAXPAYER HAS
WAIVED ELIGIBILITY UNDER THE INVESTMENT TAX CREDIT, IN LIEU THEREOF, A
CREDIT DETERMINED UNDER THIS SUBDIVISION.
(B) A TAXPAYER SHALL BE ALLOWED AN ECONOMIC RESURGENCE INITIATIVE
CREDIT TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
BY THIS ARTICLE. THE TAXPAYER MAY CONVERT, ON AN ELECTIVE SLIDING SCALE
BASIS AS DELINEATED IN PARAGRAPH (C) OF THIS SUBDIVISION EARNED, BUT NOT
USED, INVESTMENT TAX CREDIT THAT HAS BEEN CARRIED-FORWARD FOR TEN OR
MORE YEARS INTO A NEW CREDIT, KNOWN AS THE ECONOMIC RESURGENCE INITI-
ATIVE CREDIT, UP TO THE AMOUNT EXPENDED IN THE SAME TAXABLE YEAR ON NEW
INVESTMENT IN THIS STATE BY THE TAXPAYER OR A THIRD PARTY ON PROPERTY
OWNED BY THE TAXPAYER WHICH OTHERWISE IS ELIGIBLE FOR THE CREDIT UNDER
SUBDIVISION TWELVE OF THIS SECTION. IN THE CASE OF SUCH AN INVESTMENT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04849-02-9
A. 4726--A 2
BY A THIRD PARTY, SUCH THIRD PARTY SHALL HAVE WAIVED ELIGIBILITY UNDER
THE INVESTMENT TAX CREDIT WITH RESPECT TO SUCH INVESTMENT.
(C) THE AMOUNT OF EARNED, BUT NOT USED, INVESTMENT TAX CREDIT ELIGIBLE
FOR CONVERSION SHALL BE CALCULATED AS FOLLOWS:
NUMBER OF YEARS CARRIED FORWARD PERCENTAGE
10 20%
11 40%
12 60%
13 80%
14 OR MORE 100%
(D) THE NEW CURRENT YEAR INVESTMENT EXPENDITURE SHALL NOT QUALIFY FOR
OR GENERATE ITS OWN INVESTMENT TAX CREDIT IF THE TAXPAYER ELECTED
CONVERSION.
(E) IN THE EVENT THAT THE CREDITS ALLOWED UNDER THIS ARTICLE FOR ANY
TAXABLE YEAR 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, THE TAXPAYER MAY ELECT TO TREAT THE AMOUNT OF THE ECONOMIC
RESURGENCE INITIATIVE CREDIT NOT USED IN REDUCING THE TAX DUE TO THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION ONE OF THIS SECTION 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 EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 2. Paragraph (e) of subdivision 12 of section 210 of the tax law, as
amended by section 9 of part M of chapter 407 of the laws of 1999, is
amended to read as follows:
(e) Except as otherwise provided in this paragraph, 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 para-
graphs (c) and (d) of subdivision one of this section. However, if the
amount of credit allowable under this subdivision for any taxable year
reduces the tax to such amount, any amount of credit allowed for a taxa-
ble year commencing prior to January first, nineteen hundred eighty-sev-
en and not deductible in such taxable year may be carried over to the
following year or years and may be deducted from the taxpayer's tax for
such year or years but in no event shall such credit be carried over to
taxable years commencing on or after January first, two thousand two[,
and any]. ANY amount of credit allowed for a taxable year commencing on
or after January first, nineteen hundred eighty-seven and not deductible
in such year may be carried over to the [fifteen] TWENTY taxable years
next following such taxable year and may be deducted from the taxpayer's
tax for such year or years. In lieu of such carryover, any such taxpayer
which qualifies as a new business under paragraph (j) of this subdivi-
sion may elect to treat the amount of such carryover as an overpayment
of tax to be credited or refunded in accordance with the provisions of
section [ten hundred] ONE THOUSAND eighty-six of this chapter, provided,
however, the provisions of subsection (c) of section [ten hundred] ONE
THOUSAND eighty-eight of this chapter notwithstanding, no interest shall
be paid thereon.
S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009.