S T A T E O F N E W Y O R K
________________________________________________________________________
5143
2009-2010 Regular Sessions
I N A S S E M B L Y
February 10, 2009
___________
Introduced by M. of A. LENTOL -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to authorizing a local material
tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new section 30 to read
as follows:
S 30. LOCAL MATERIAL CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT
PURCHASES MATERIALS FROM COMPANIES LOCATED WITHIN A FIFTEEN MILE RADIUS
OF SUCH TAXPAYER'S BUSINESS, AND THAT IS SUBJECT TO TAX UNDER ARTICLE
NINE-A OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST
SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (B) OF
THIS SECTION, EQUAL TO TEN PERCENT OF THE TOTAL RECEIPTS FROM THE
PURCHASE OF MATERIALS FROM COMPANIES LOCATED WITHIN A FIFTEEN MILE RADI-
US OF SUCH TAXPAYER'S BUSINESS.
(B) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE 9-A: SECTION 210: SUBDIVISION 41.
(2) ARTICLE 22: SECTION 606: SUBSECTION (QQ).
S 2. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
41. LOCAL MATERIAL CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT
IS ELIGIBLE PURSUANT TO SECTION THIRTY OF THIS CHAPTER SHALL BE ALLOWED
A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION THIRTY OF THIS CHAP-
TER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE
UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07473-01-9
A. 5143 2
AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CRED-
ITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOU-
SAND 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. THE BALANCE OF SUCH
CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY NOT BE CARRIED
OVER TO ANY SUCCEEDING TAXABLE YEAR.
S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of
the laws of 2008, is amended to read as follows:
(B) shall be treated as the owner of a new business with respect to
such share if the corporation qualifies as a new business pursuant to
paragraph (j) of subdivision twelve of section two hundred ten of this
chapter.
The corporation's credit base under
section two hundred ten or section
With respect to the following fourteen hundred fifty-six of this
credit under this section: chapter is:
(I) Investment tax credit under Investment credit base or qualified
subsection (a) rehabilitation expenditures under
subdivision twelve of section two
hundred ten
(II) Empire zone investment Cost or other basis under
tax credit under subsection (j) subdivision twelve-B of section
two hundred ten
(III) Empire zone wage tax credit Eligible wages under subdivision
under subsection (k) nineteen of section two hundred
ten or subsection (e) of section
fourteen hundred fifty-six
(IV) Empire zone capital tax Qualified investments and
credit under subsection (l) contributions under subdivision
twenty of section two hundred ten
or subsection (d) of section
fourteen hundred fifty-six
(V) Agricultural property tax Allowable school district property
credit under subsection (n) taxes under subdivision twenty-two
of section two hundred ten
(VI) Credit for employment of Qualified first-year wages or
persons with disabilities qualified second-year wages under
under subsection (o) subdivision twenty-three of
section two hundred ten or
subsection (f) of section
fourteen hundred fifty-six
(VII) Employment incentive credit Applicable investment credit base
under subsection (a-1) under subdivision twelve-D of
section two hundred ten
A. 5143 3
(VIII) Empire zone employment Applicable investment credit
incentive credit under subsection under subdivision twelve-C of
(j-1) section two hundred ten
(IX) Alternative fuels credit Cost under subdivision twenty-four
under subsection (p) of section two hundred ten
(X) Qualified emerging technology Applicable credit base under
company employment credit under subdivision twelve-E of section
subsection (q) two hundred ten
(XI) Qualified emerging technology Qualified investments under
company capital tax credit under subdivision twelve-F of section
subsection (r) two hundred ten
(XII) Credit for purchase of an Cost of an automated external
automated external defibrillator defibrillator under subdivision
under subsection (s) twenty-five of section two hundred
ten or subsection (j) of section
fourteen hundred fifty-six
(XIII) Low-income housing credit Credit amount under subdivision
under subsection (x) thirty of section two hundred ten
or subsection (l) of section
fourteen hundred fifty-six
(XIV) Credit for transportation Amount of credit under subdivision
improvement contributions under thirty-two of section two hundred
subsection (z) ten or subsection (n) of section
fourteen hundred fifty-six
(XV) QEZE credit for real property Amount of credit under subdivision
taxes under subsection (bb) twenty-seven of section two hundred
ten or subsection (o) of section
fourteen hundred fifty-six
(XVI) QEZE tax reduction credit Amount of benefit period factor,
under subsection (cc) employment increase factor and zone
allocation factor (without regard
to pro ration) under subdivision
twenty-eight of section two hundred
ten or subsection (p) of section
fourteen hundred fifty-six and
amount of tax factor as determined
under subdivision (f) of section
sixteen
(XVII) Green building credit under Amount of green building credit
subsection (y) under subdivision thirty-one of
section two hundred ten or
subsection (m) of section fourteen
hundred fifty-six
(XVIII) Credit for long-term care Qualified costs under subdivision
insurance premiums under subsection twenty-five-a of section two
(aa) hundred ten or subsection (k) of
A. 5143 4
section fourteen hundred fifty-six
(XIX) Brownfield redevelopment Amount of credit under subdivision
credit under subsection (dd) thirty-three of section two hundred
ten or subsection (q) of section
fourteen hundred fifty-six
(XX) Remediated brownfield credit Amount of credit under subdivision
for real property taxes for thirty-four of section two hundred
qualified sites under subsection ten or subsection (r) of section
(ee) fourteen hundred fifty-six
(XXI) Environmental remediation Amount of credit under subdivision
insurance credit under subsection thirty-five of section two hundred
(ff) ten or subsection (s) of section
fourteen hundred fifty-six
(XXII) Empire state film production Amount of credit for qualified
credit under subsection (gg) production costs in production of a
qualified film under subdivision
thirty-six of section two hundred
ten
(XXIII) Qualified emerging Qualifying expenditures and
technology company facilities, development activities under
operations and training credit subdivision twelve-G of section two
under subsection (nn) hundred ten
(XXIV) Security training tax credit Amount of credit under subdivision
under subsection (ii) thirty-seven of section two hundred
ten or under subsection (t) of
section fourteen hundred fifty-six
(XXV) Credit for qualified fuel Amount of credit under subdivision
cell electric generating equipment thirty-seven of section two hundred
expenditures under subsection (g-2) ten or subsection (t) of section
fourteen hundred fifty-six
(XXVI) Empire state commercial Amount of credit for qualified
production credit under subsection production costs in production of
(jj) a qualified commercial under
subdivision thirty-eight of
section two hundred ten
(XXVII) Biofuel production tax Amount of credit under subdivision
credit under subsection (jj) thirty-eight of section two hundred
ten
(XXVIII) Clean heating fuel credit Amount of credit under subdivision
under subsection (mm) thirty-nine of section two hundred
ten
(XXIX) Credit for rehabilitation Amount of credit under subdivision
of historic properties under forty of [subsection] SECTION
subsection (oo) two hundred ten
A. 5143 5
(XXX) Credit for companies who Amount of credit under subdivision
provide transportation to forty of section two hundred ten
individuals with disabilities under
subsection (oo)
(XXXI) CREDIT FOR COMPANIES THAT AMOUNT OF CREDIT UNDER
PURCHASE LOCAL MATERIALS SUBDIVISION FORTY-ONE OF
UNDER SUBSECTION (QQ) SECTION TWO HUNDRED TEN
S 4. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
(QQ) LOCAL MATERIAL CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT
IS ELIGIBLE PURSUANT TO SECTION THIRTY OF THIS CHAPTER SHALL BE ALLOWED
A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION THIRTY OF THIS CHAP-
TER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN SECTION SIX HUNDRED TWO OF THIS PART.
PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS
SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THE
EXCESS 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 EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. THE BALANCE OF SUCH
CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY NOT BE CARRIED
OVER TO ANY SUCCEEDING TAXABLE YEAR.
S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2009; provided, that the empire
state film production credit under subsection (gg), the empire state
commercial production credit under subsection (jj) and the credit for
companies who provide transportation to individuals with disabilities
under subsection (oo) of section 606 of the tax law contained in section
three of this act shall expire on the same date as provided in section 9
of part P of chapter 60 of the laws of 2004, as amended, section 10 of
part V of chapter 62 of the laws of 2006, as amended, and section 5 of
chapter 522 of the laws of 2006, as amended, respectively.