Assembly Bill A9738

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

    S. 6642                                                  A. 9738

                      S E N A T E - A S S E M B L Y

                            January 21, 2010
                               ___________

IN SENATE -- Introduced by Sen. FOLEY -- read twice and ordered printed,
  and  when  printed  to be committed to the Committee on Investigations
  and Government Operations

IN ASSEMBLY -- Introduced by M. of A. LAVINE -- read once  and  referred
  to the Committee on Ways and Means

AN  ACT  to amend the tax law, in relation to providing certain benefits
  to veterans

  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 31 to read
as follows:
  S 31. NATIONAL GUARD AND RESERVIST COMPENSATION TAX CREDIT. (A) ALLOW-
ANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER  ARTICLE  NINE,  NINE-A,
TWENTY-TWO,  THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL BE ALLOWED
A CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO ANY  COMPENSATION  WHICH
IS  PAID  TO  AN EMPLOYEE WHO IS A MEMBER OF THE ORGANIZED MILITIA OR OF
RESERVE FORCES OR RESERVE COMPONENTS OF THE ARMED FORCES OF  THE  UNITED
STATES  WHILE SUCH EMPLOYEE IS ON ACTIVE DUTY AS SUCH TERM IS DEFINED IN
THE MILITARY LAW.
  (B) A TAXPAYER WISHING TO CLAIM A  CREDIT  UNDER  THIS  SECTION  SHALL
ANNUALLY  CERTIFY  TO THE COMMISSIONER, ON FORMS SUPPLIED BY THE COMMIS-
SIONER, AMOUNTS PAID TO ELIGIBLE EMPLOYEES SERVING ON ACTIVE DUTY.
  (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9: SECTION 187-O.
  (2) ARTICLE 9-A: SECTION 210: SUBDIVISION 41.
  (3) ARTICLE 22: SECTION 606: SUBSECTION (QQ).
  (4) ARTICLE 32: SECTION 1456: SUBSECTION (U).
  (5) ARTICLE 33: SECTION 1511: SUBDIVISION (Y).
  S  2.  The tax law is amended by adding a new section 187-o to read as
follows:
  S 187-O. NATIONAL GUARD AND RESERVIST COMPENSATION  TAX  CREDIT.    1.
ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE

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

                                                           LBD15357-01-0

S. 6642                             2                            A. 9738

COMPUTED AS PROVIDED IN SUBDIVISION (A) OF SECTION  THIRTY-ONE  OF  THIS
CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  2.  APPLICATION  OF  CREDIT.  IN  NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE  THE  TAX  PAYABLE  TO
LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
Y-THREE  OR  ONE  HUNDRED  EIGHTY-FIVE OF THIS ARTICLE. IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE UNDER  THIS  SECTION  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
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 3. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
  41. NATIONAL GUARD AND RESERVIST COMPENSATION TAX CREDIT.  (A)  ALLOW-
ANCE  OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION THIRTY-ONE OF THIS CHAPTER, 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  HIGHER  AMOUNT PRESCRIBED IN SUBDIVISION ONE OF THIS SECTION.
HOWEVER, IF THE AMOUNT OF CREDITS 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 4. Section 606 of the tax law is amended by adding a new  subsection
(qq) to read as follows:
  (QQ)  NATIONAL GUARD AND RESERVIST COMPENSATION TAX CREDIT. (1) ALLOW-
ANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED  AS
PROVIDED  IN SECTION THIRTY-ONE OF THIS CHAPTER, AGAINST THE TAX 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.
  S 5.   Section 1456 of  the  tax  law  is  amended  by  adding  a  new
subsection (u) to read as follows:
  (U)  NATIONAL  GUARD AND RESERVIST COMPENSATING TAX CREDIT. (1) ALLOW-
ANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED  AS
PROVIDED  IN SECTION THIRTY-ONE OF THIS CHAPTER, 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 MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED
FIFTY-FIVE OF THIS ARTICLE. HOWEVER, IF THE AMOUNT  OF  CREDITS  ALLOWED
UNDER  THIS  SUBSECTION  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

S. 6642                             3                            A. 9738

SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS  CHAPTER  NOTWITHSTANDING,  NO
INTEREST SHALL BE PAID THEREON.
  S  6.  Section 1511 of the tax law is amended by adding a new subdivi-
sion (y) to read as follows:
  (Y) NATIONAL GUARD AND RESERVIST COMPENSATION TAX CREDIT.  (1)  ALLOW-
ANCE  OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION THIRTY-ONE OF THIS CHAPTER, AGAINST THE TAX  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 OR SECTION FIFTEEN HUNDRED TWO-A  OF  THIS  ARTICLE.
HOWEVER, IF THE AMOUNT OF CREDITS 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 7. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:

(XXXI) CREDIT FOR NATIONAL           AMOUNT OF CREDIT UNDER
GUARD AND RESERVATION                SUBDIVISION FORTY-ONE OF
COMPENSATION UNDER                   SECTION TWO HUNDRED TEN
SUBSECTION (QQ)                      OR UNDER SUBSECTION (U)
                                     OF SECTION FOURTEEN
                                     HUNDRED FIFTY-SIX

  S 8. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2010.