S T A T E O F N E W Y O R K
________________________________________________________________________
5297
2009-2010 Regular Sessions
I N A S S E M B L Y
February 11, 2009
___________
Introduced by M. of A. MORELLE, KOON -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a credit for
employers for wages associated with information technology security
employees, and providing a deduction for businesses for the expenses
of certain other security-related measures
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. INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE-A, TWEN-
TY-TWO, THIRTY-TWO, OR THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED A
CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDI-
VISION (E) OF THIS SECTION, TO BE COMPUTED AS PROVIDED IN SUBDIVISION
(D) OF THIS SECTION.
(B) QUALIFIED EMPLOYEE. THE TERM "QUALIFIED EMPLOYEE" SHALL MEAN A
PERSON HIRED AND EMPLOYED FOR THE SOLE PURPOSE OF PROVIDING INFORMATION
TECHNOLOGY SECURITY.
(C) QUALIFIED INFORMATION SECURITY WAGES. THE TERM "QUALIFIED INFORMA-
TION SECURITY WAGES" SHALL MEAN THE TOTAL AMOUNT OF THE SALARIES OR
WAGES PAID TO QUALIFIED EMPLOYEES DURING A TAXABLE YEAR.
(D) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL FIFTY
PERCENT OF THE TOTAL AMOUNT OF QUALIFIED INFORMATION SECURITY WAGES PAID
TO QUALIFIED EMPLOYEES.
(E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) SUBDIVISION FORTY-ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER;
(2) SUBSECTION (QQ) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER;
(3) SUBSECTION (U) OF SECTION FOURTEEN HUNDRED FIFTY-SIX OF THIS CHAP-
TER;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08311-01-9
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(4) SUBDIVISION (Y) OF SECTION FIFTEEN HUNDRED ELEVEN OF THIS CHAPTER.
S 2. Paragraph (a) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 18 to read as follows:
(18) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (R) OF THIS SUBDIVI-
SION.
S 3. Subdivision 9 of section 208 of the tax law is amended by adding
a new paragraph (r) to read as follows:
(R) (A) FOR THE PURPOSES OF THIS PARAGRAPH THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING DEFINITIONS:
(I) "BUSINESS" MEANS BOTH PRIVATE AND NOT-FOR-PROFIT BUSINESSES.
(II) "INFORMATION TECHNOLOGY SECURITY SOFTWARE OR HARDWARE" MEANS
COMPUTER SOFTWARE OR HARDWARE THAT IS USED TO PROTECT AGAINST COMPUTER
VIRUSES, WORMS OR DELETERIOUS INSTRUCTIONS AND SOFTWARE OR PRODUCTS THAT
PROTECT AGAINST COMPUTER HACKING OR COMPUTER WORMS OR VIRUSES.
(B) ANY BUSINESS THAT PURCHASES AND INSTALLS INFORMATION TECHNOLOGY
SOFTWARE OR HARDWARE MAY DEDUCT FIFTY PERCENT OF THE FULL AMOUNT OF THE
EXPENSES RELATED TO THE PURCHASE AND INSTALLATION OF SUCH SOFTWARE OR
HARDWARE WITHIN THE APPLICABLE TAXABLE YEAR.
(C) THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS DEEMED
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS PARAGRAPH BY JANUARY
FIRST, TWO THOUSAND TEN.
(D) THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY TO TAXABLE YEARS
BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TEN.
S 4. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
41. INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION THIRTY OF THIS CHAPTER, AGAINST THE TAXES 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 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 SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS 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 EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 5. 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
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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
(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
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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
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
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(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
(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) INFORMATION AMOUNT OF CREDIT UNDER
TECHNOLOGY SECURITY SUBDIVISION FORTY-ONE OF
WAGE CREDIT UNDER SECTION TWO HUNDRED TEN OR
SUBSECTION (QQ) SUBSECTION (U) OF SECTION
FOURTEEN HUNDRED FIFTY-SIX
S 6. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
(QQ) INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION THIRTY OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS
ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE 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.
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S 7. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 39 to read as follows:
(39) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (R) OF SUBDIVISION
NINE OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
S 8. Subsection (e) of section 1453 of the tax law is amended by
adding a new paragraph 19 to read as follows:
(19) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (R) OF SUBDIVISION
NINE OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
S 9. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
(U) INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION THIRTY OF THIS CHAPTER, AGAINST THE TAXES 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 MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED
FIFTY-FIVE OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, THEN ANY AMOUNT OF CREDIT THUS 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 EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 10. Paragraph 3 of subdivision (b) of section 1503 of the tax law,
as amended by chapter 61 of the laws of 1989, is amended to read as
follows:
(3) In determining entire net income, there shall be subtracted, to
the extent not deductible in determining federal taxable income:
(A) interest on indebtedness incurred or continued to purchase or
carry obligations or securities the income from which is subject to tax
under this article but exempt from federal income tax;
(B) ordinary and necessary expenses paid or incurred during the taxa-
ble year attributable to income which is subject to tax under this arti-
cle but exempt from federal income tax; [and]
(C) the amortizable bond premium for the taxable year on any bond the
interest on which is subject to tax under this article but exempt from
federal income tax; AND
(D) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (R) OF SUBDIVISION
NINE OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
S 11. Section 1511 of the tax law is amended by adding a new subdivi-
sion (y) to read as follows:
(Y) INFORMATION TECHNOLOGY SECURITY WAGE CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION THIRTY OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS
ARTICLE.
(2) 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 MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION
FIFTEEN HUNDRED TWO OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT
ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXA-
BLE 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
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SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 12. This act shall take effect immediately; provided, however 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 five 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.