NY State Senate Bill 2009-S1894

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
Feb 09, 2009	referred to investigations and government operations

co-Sponsors

2009-S1894 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in 2011-2012 Legislative Session:: S581

2009-S1894 (ACTIVE) - Summary

Enacts the medical malpractice insurance premium credit act; provides a tax credit for a percentage of medical malpractice premiums paid by such taxpayer; defines relevant terms.

2009-S1894 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1894

 TITLE OF BILL :

An act to amend the tax law, in relation to enacting the medical
malpractice insurance premiums credit act


 PURPOSE OR GENERAL IDEA OF BILL :

Enacts the medical malpractice insurance premium credit act.

 SUMMARY OF SPECIFIC PROVISIONS :

Amends section 210 of the tax law to add a new subdivision 25-b and
section 606 of the tax law to add a new subsection (qq) providing a
tax credit for medical malpractice insurance premiums equal to
twenty-five percent of the amount by which annual qualified premiums
exceed ten percent of the taxpayer's qualified income, up to
twenty-five thousand dollars. Qualified premiums are defined to
include all premiums regulated by the New York state department of
insurance with the exception of premiums paid to the New York medical
malpractice insurance plan. Qualified income is defined to include all
net receipts the taxpayer derives from activities covered by the
malpractice policy for which the qualified premiums are paid.

 JUSTIFICATION :

Rising malpractice insurance premiums remain a source of deep concern
for physicians across the country, with doctors in high-risk
specialties, such as neurosurgery and obstetrics paying the highest
premiums. Medical malpractice insurance premiums also vary widely from
one part of the state to another with doctors practicing on Long
Island and in the outer boroughs of New York City paying the highest
insurance rates, regardless of their field of specialty. A recent
examination of median physician income data and average malpractice
insurance premiums for locations and specialties around the state
found that doctors in low-risk specialties paying less than a percent
of their income for the insurance coverage in the least expensive
upstate cities and doctors in high-risk specialties paying more than
half of their median income on Long Island.

Rising medical malpractice rates have driven some doctors to early
retirement, while others have chosen to reduce costs by relocating to
less expensive insurance markets or curtailing the riskiest elements
of their practice, such as delivering babies.

The Malpractice Insurance Premium Credit is targeted specifically to
those physicians who pay the highest malpractice insurance rates
relative to their annual income. The credit would be available to New
York physicians in any region or specialty whose qualified medical
malpractice premiums exceed ten percent of their annual income. For
physicians who cross that threshold, the credit would be worth
twenty-five percent of the amount by which their annual premium
exceeds ten percent of income, up to a maximum of $25,000. The measure
would take effect in time for the 2004 tax year and sunset in 2014.
The tax credit will be available to almost any New York physician who
pays his or her own medical malpractice insurance premium. The credit
will not apply to those physicians who are insured by their employers.

The tax credit will also not be available to physicians who pay higher
medical malpractice insurance premiums due to their own negligence or
prior history. For this reason, qualified premiums under Klein's plan
will not include premiums paid to the New York Medical Malpractice
Insurance Plan, considered the insurer of last resort for New York's
most at-risk doctors.
 LEGISLATIVE HISTORY :

A11754 of 2004 - Referred to Ways & Means
S2757 of 2006 - Referred to Investigations & Government Operations
S2217 of 2008 - Referred to Investigations & Government Operations

 FISCAL IMPLICATIONS :
A small percentage of physicians statewide would quality for this tax
credit.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2009 through December 31,
2018.

2009-S1894 (ACTIVE) - Bill Text download pdf

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

                                  1894

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 9, 2009
                               ___________

Introduced  by  Sens.  KLEIN, STEWART-COUSINS, VALESKY -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Investigations and Government Operations

AN  ACT  to amend the tax law, in relation to enacting the medical malp-
  ractice insurance premiums credit act

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Short  title. This act shall be known and may be cited as
the "medical malpractice insurance premiums credit act".
  S 2. Section 210 of the tax law is amended by adding a new subdivision
25-b to read as follows:
  25-B. CREDIT FOR MEDICAL MALPRACTICE INSURANCE PREMIUMS. (A)  AS  USED
IN  THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
INGS: (1) "MEDICAL MALPRACTICE INSURANCE" MEANS INSURANCE AGAINST  LEGAL
LIABILITY  OF THE INSURED, AND AGAINST LOSS, DAMAGE, OR EXPENSE INCIDENT
TO A CLAIM OF SUCH LIABILITY ARISING OUT OF THE DEATH OR INJURY  OF  ANY
PERSON  DUE  TO MEDICAL, DENTAL, PODIATRIC, CERTIFIED NURSE-MIDWIFERY OR
HOSPITAL MALPRACTICE BY ANY  LICENSED  PHYSICIAN,  DENTIST,  PODIATRIST,
CERTIFIED  NURSE-MIDWIFE,  CERTIFIED  REGISTERED  NURSE  ANESTHETIST  OR
HOSPITAL.
  (2) "QUALIFIED PREMIUMS"  SHALL  INCLUDE  ALL  PREMIUMS  PAID  BY  THE
TAXPAYER  DURING  THE CURRENT TAX YEAR ON ALL MEDICAL MALPRACTICE INSUR-
ANCE POLICIES WHOSE PREMIUMS ARE REGULATED AND ESTABLISHED  BY  THE  NEW
YORK  STATE  DEPARTMENT OF INSURANCE WITH THE EXCEPTION OF PREMIUMS PAID
TO THE NEW YORK MEDICAL MALPRACTICE INSURANCE  PLAN  AS  ESTABLISHED  BY
SUCH DEPARTMENT UNDER REGULATION 170 (11 NYCRR 430).
  (3)  "QUALIFIED  INCOME"  SHALL  INCLUDE ALL NET RECEIPTS THE TAXPAYER
DERIVES FROM ACTIVITIES COVERED BY THE MALPRACTICE POLICY FOR WHICH  THE
QUALIFIED PREMIUMS ARE PAID.
  (B)  A  TAXPAYER  SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF THE AMOUNT BY WHICH  ANNUAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02634-01-9

S. 1894                             2

QUALIFIED PREMIUMS EXCEED TEN PERCENT OF THE TAXPAYER'S QUALIFIED INCOME
FOR THE CURRENT YEAR, NOT TO EXCEED THE LESSER OF THE TAXPAYER'S CURRENT
YEAR  TAX LIABILITY OR TWENTY-FIVE THOUSAND DOLLARS. THE CREDIT SHALL BE
CLAIMED  AFTER THE ALLOWANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAP-
TER.
  (C) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY 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.
IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS  SUBDIVISION  FOR
ANY  TAXABLE  YEAR  REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT
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.
  (D)  FOR  THE  PURPOSES  OF  THIS SUBDIVISION A TAXPAYER MAY INCLUDE A
PARTNERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER  S
OF  CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE CODE, OR ANY OTHER
BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A  DISTRIBUTIVE  SHARE  TO
ITS  OWNERS.  A CREDIT RECEIVED UNDER THIS SUBDIVISION BY A PARTNERSHIP,
S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED  AMONG
THE  PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS  AS  THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
  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            Investment credit base
under subsection (a)                 or qualified
                                     rehabilitation
                                     expenditures under
                                     subdivision twelve of
                                     section two hundred ten

(II) Empire zone                     Cost or other basis
investment tax credit                under subdivision
under subsection (j)                 twelve-B
                                     of section two hundred
                                     ten

(III) Empire zone                    Eligible wages under
wage tax credit                      subdivision nineteen of
under subsection (k)                 section two hundred ten
                                     or subsection (e) of
                                     section fourteen hundred
                                     fifty-six

S. 1894                             3

(IV) Empire zone                     Qualified investments
capital tax credit                   and contributions under
under subsection (l)                 subdivision twenty of
                                     section two hundred ten
                                     or subsection (d) of
                                     section fourteen hundred
                                     fifty-six

(V) Agricultural property tax        Allowable school
credit under subsection (n)          district property taxes under
                                     subdivision twenty-two of
                                     section two hundred ten

(VI) Credit for employment           Qualified first-year wages or
of persons with dis-                 qualified second-year wages
abilities under                      under subdivision
subsection (o)                       twenty-three of section
                                     two hundred ten
                                     or subsection (f)
                                     of section fourteen
                                     hundred fifty-six

(VII) Employment incentive           Applicable investment credit
credit under subsec-                 base under subdivision
tion (a-1)                           twelve-D of section two
                                     hundred ten

(VIII) Empire zone                   Applicable investment
employment                           credit under sub-
incentive credit under               division twelve-C
subsection (j-1)                     of section two hundred ten

(IX) Alternative fuels credit        Cost under subdivision
under subsection (p)                 twenty-four of section two
                                     hundred ten

(X) Qualified emerging               Applicable credit base
technology company                   under subdivision twelve-E
employment credit                    of section two hundred ten
under subsection (q)

(XI) Qualified emerging              Qualified investments under
technology company                   subdivision twelve-F of
capital tax credit                   section two hundred ten
under subsection (r)

(XII) Credit for purchase of an      Cost of an automated
automated external defibrillator     external defibrillator under
under subsection (s)                 subdivision twenty-five of
                                     section two hundred ten
                                     or subsection (j) of section
                                     fourteen hundred fifty-six

(XIII) Low-income housing            Credit amount under
credit under subsection (x)          subdivision thirty
                                     of section two hundred ten or

S. 1894                             4

                                     subsection (l) of section
                                     fourteen hundred fifty-six

(XIV) Credit for transportation      Amount of credit under sub-
improvement contributions            division thirty-two of section
under subsection (z)                 two hundred ten or subsection
                                     (n) of section fourteen
                                     hundred fifty-six

(XV) QEZE credit for real property   Amount of credit under
taxes under subsection (bb)          subdivision 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
under subsection (cc)                factor, 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         Amount of green building credit
under 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         Qualified costs under
care insurance premiums              subdivision twenty-five-a of
under subsection (aa)                section two hundred ten
                                     or subsection (k) of section
                                     fourteen hundred fifty-six

(XIX) Brownfield redevelopment       Amount of credit
credit under subsection              under subdivision
(dd)                                 thirty-three of section
                                     two hundred ten
                                     or subsection (q) of
                                     section fourteen hundred
                                     fifty-six

(XX) Remediated brownfield           Amount of credit under
credit for real property             subdivision thirty-four
taxes for qualified                  of section two hundred
sites under subsection               ten or subsection (r) of
(ee)                                 section fourteen hundred
                                     fifty-six

S. 1894                             5

(XXI) Environmental                  Amount of credit under
remediation                          subdivision thirty-five of
insurance credit under               section two hundred
subsection (ff)                      ten or subsection
                                     (s) of section
                                     fourteen hundred
                                     fifty-six

(XXII) Empire state film pro-        Amount of credit for qualified
duction credit under subsection      production costs in production
(gg)                                 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
under subsection (nn)                two hundred ten

(XXIV) Security training tax         Amount of credit
credit under                         under subdivision thirty-seven
subsection (ii)                      of section two hundred ten or
                                     under subsection (t) of
                                     section fourteen hundred fifty-six

(XXV) Credit for qualified fuel      Amount of credit under
cell electric generating equipment   subdivision thirty-seven
expenditures under subsection (g-2)  of section two hundred 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
(jj)                                 of a qualified commercial under
                                     subdivision thirty-eight of sec-
                                     tion two hundred ten

(XXVII) Biofuel production           Amount of credit
tax credit under                     under subdivision
subsection (jj)                      thirty-eight of
                                     section two hundred ten

(XXVIII) Clean heating fuel credit   Amount of credit under
under subsection (mm)                subdivision thirty-nine of
                                     section two hundred ten

(XXIX) Credit for rehabilitation     Amount of credit under
of historic properties               subdivision forty of
under subsection (oo)                subsection two hundred ten

(XXX) Credit for companies who       Amount of credit under
provide transportation               subdivision forty of
to individuals                       section two hundred ten
with disabilities
under subsection (oo)

S. 1894                             6

(XXXI) MEDICAL MALPRACTICE           QUALIFIED PREMIUMS UNDER
INSURANCE PREMIUMS CREDIT            SUBDIVISION TWENTY-FIVE-B
UNDER SUBSECTION (QQ)                OF 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) MEDICAL MALPRACTICE INSURANCE PREMIUMS TAX CREDIT. (1) AS USED IN
THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING  MEANINGS:
(A)  "MEDICAL  MALPRACTICE  INSURANCE"  MEANS  INSURANCE  AGAINST  LEGAL
LIABILITY OF THE INSURED, AND AGAINST LOSS, DAMAGE, OR EXPENSE  INCIDENT
TO  A  CLAIM OF SUCH LIABILITY ARISING OUT OF THE DEATH OR INJURY OF ANY
PERSON DUE TO MEDICAL, DENTAL, PODIATRIC, CERTIFIED  NURSE-MIDWIFERY  OR
HOSPITAL  MALPRACTICE  BY  ANY  LICENSED PHYSICIAN, DENTIST, PODIATRIST,
CERTIFIED  NURSE-MIDWIFE,  CERTIFIED  REGISTERED  NURSE  ANESTHETIST  OR
HOSPITAL.
  (B)  "QUALIFIED  PREMIUMS"  SHALL  INCLUDE  ALL  PREMIUMS  PAID BY THE
TAXPAYER DURING THE CURRENT TAX YEAR ON ALL MEDICAL  MALPRACTICE  INSUR-
ANCE  POLICIES  WHOSE  PREMIUMS ARE REGULATED AND ESTABLISHED BY THE NEW
YORK STATE DEPARTMENT OF INSURANCE WITH THE EXCEPTION OF  PREMIUMS  PAID
TO  THE  NEW  YORK  MEDICAL MALPRACTICE INSURANCE PLAN AS ESTABLISHED BY
SUCH DEPARTMENT UNDER REGULATION 170 (11 NYCRR 430).
  (C) "QUALIFIED INCOME" SHALL INCLUDE ALL  NET  RECEIPTS  THE  TAXPAYER
DERIVES  FROM ACTIVITIES COVERED BY THE MALPRACTICE POLICY FOR WHICH THE
QUALIFIED PREMIUMS ARE PAID.
  (2) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED  BY
THIS  ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF THE AMOUNT BY WHICH ANNUAL
QUALIFIED PREMIUMS EXCEED TEN PERCENT OF THE TAXPAYER'S QUALIFIED INCOME
FOR THE CURRENT YEAR, NOT TO EXCEED THE LESSER OF THE TAXPAYER'S CURRENT
YEAR TAX LIABILITY OR TWENTY-FIVE THOUSAND DOLLARS. THE CREDIT SHALL  BE
CLAIMED  AFTER THE ALLOWANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAP-
TER.
  (3) ANY AMOUNT OF CREDIT NOT DEDUCTIBLE  IN  A  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.
  (4) FOR THE PURPOSES OF THIS SUBSECTION A TAXPAYER MAY INCLUDE A PART-
NERSHIP,  A  CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER S OF
CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE  CODE,  OR  ANY  OTHER
BUSINESS  ENTITY  THROUGH  WHICH INCOME FLOWS AS A DISTRIBUTIVE SHARE TO
ITS OWNERS. A CREDIT RECEIVED UNDER THIS SUBSECTION  BY  A  PARTNERSHIP,
S-CORPORATION,  OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED AMONG
THE PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP,  S-CORPORA-
TION,  OR  OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS AS THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
  S 5. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2009 through December 31,  2018;
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 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.

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Senate Bill S1894

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2009-S1894 (ACTIVE) - Details

2009-S1894 (ACTIVE) - Summary

2009-S1894 (ACTIVE) - Sponsor Memo

2009-S1894 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1894

Share this bill

Sponsored By

Jeffrey D. Klein

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

Andrea Stewart-Cousins

David J. Valesky

2009-S1894 (ACTIVE) - Details

2009-S1894 (ACTIVE) - Summary

2009-S1894 (ACTIVE) - Sponsor Memo

2009-S1894 (ACTIVE) - Bill Text download pdf

Comments