S T A T E O F N E W Y O R K
________________________________________________________________________
2804
2009-2010 Regular Sessions
I N A S S E M B L Y
January 21, 2009
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Introduced by M. of A. KOLB, BARCLAY, FINCH, TOWNSEND, OAKS, HAWLEY,
GIGLIO, McKEVITT, ERRIGO -- Multi-Sponsored by -- M. of A. BACALLES,
BUTLER, CALHOUN, CORWIN, CROUCH, P. LOPEZ, O'MARA, QUINN, TOBACCO,
WALKER -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing a manufacturing
wage 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. MANUFACTURING WAGE CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
WHICH IS AN INDUSTRIAL OR MANUFACTURING BUSINESS (IMB), OR WHICH IS A
SOLE PROPRIETOR OF AN IMB OR A MEMBER OF A PARTNERSHIP WHICH IS AN IMB,
AND WHICH 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 (D) OF THIS SECTION, TO BE COMPUTED
AS HEREINAFTER PROVIDED.
(B) DEFINITIONS.
(1) THE TERM "INDUSTRIAL OR MANUFACTURING BUSINESS" SHALL MEAN A BUSI-
NESS WHICH DURING THE TAXABLE YEAR IS PRINCIPALLY ENGAGED IN ACTIVITIES
DESCRIBED IN SUBPARAGRAPH (I) OF PARAGRAPH (B) OF SUBDIVISION TWELVE OF
SECTION TWO HUNDRED TEN OF THIS CHAPTER.
(2) THE TERM "EMPLOYMENT INCREASE YEAR" SHALL MEAN THE TAXABLE YEAR IN
WHICH THE INCREASE IN EMPLOYMENT FOR WHICH THIS CREDIT IS CLAIMED
OCCURS.
(3) THE TERM "BASE YEAR" SHALL MEAN THE TAXABLE YEAR IMMEDIATELY
PRECEDING THE EMPLOYMENT INCREASE YEAR.
(4) THE TERM "EMPLOYMENT INCREASE LEVEL" SHALL MEAN THE DIFFERENCE
BETWEEN THE EMPLOYMENT NUMBER IN THE EMPLOYMENT INCREASE YEAR AND THE
EMPLOYMENT NUMBER IN THE BASE YEAR. IF EMPLOYMENT INCREASE LEVEL IS LESS
THAN ZERO IN ANY TAXABLE YEAR, IT SHALL BE ASSUMED TO BE ZERO.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05085-01-9
A. 2804 2
(5) THE TERM "EMPLOYMENT NUMBER" SHALL MEAN THE AVERAGE NUMBER OF
INDIVIDUALS, EXCLUDING GENERAL EXECUTIVE OFFICERS (IN THE CASE OF A
CORPORATION), EMPLOYED FULL TIME BY THE TAXPAYER FOR AT LEAST ONE-HALF
OF THE TAXABLE YEAR. SUCH NUMBER SHALL BE COMPUTED BY DETERMINING THE
NUMBER OF SUCH INDIVIDUALS EMPLOYED BY THE TAXPAYER ON THE THIRTY-FIRST
DAY OF MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER
AND THE THIRTY-FIRST DAY OF DECEMBER DURING THE APPLICABLE TAXABLE YEAR,
ADDING TOGETHER THE NUMBER OF SUCH INDIVIDUALS DETERMINED TO BE SO
EMPLOYED ON EACH OF SUCH DATES AND DIVIDING THE SUM SO OBTAINED BY THE
NUMBER OF SUCH DATES OCCURRING WITHIN SUCH APPLICABLE TAXABLE YEAR. SUCH
NUMBER SHALL NOT INCLUDE INDIVIDUALS EMPLOYED WITHIN THE IMMEDIATELY
PRECEDING SIXTY MONTHS BY A RELATED PERSON TO THE TAXPAYER, AS SUCH TERM
"RELATED PERSON" IS DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH THREE OF
SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVEN-
UE CODE.
(6) THE TERM "TOTAL WAGES" SHALL MEAN THE TOTAL SALARIES AND WAGES
PAID TO EMPLOYEES INCLUDED IN THE CALCULATION OF THE EMPLOYMENT NUMBER
IN THE EMPLOYMENT INCREASE YEAR.
(7) THE TERM "AVERAGE WAGES" SHALL MEAN TOTAL WAGES DIVIDED BY THE
EMPLOYMENT NUMBER IN THE EMPLOYMENT INCREASE YEAR.
(C) APPLICATION OF THE CREDIT.
(1) THE AMOUNT OF CREDIT SHALL EQUAL THE PRODUCT OF TWO AND ONE-HALF
PERCENT OF THE AVERAGE WAGES AND THE EMPLOYMENT INCREASE LEVEL.
(2) LENGTH OF CREDIT. THE CREDIT MAY BE ALLOWED IN THE EMPLOYMENT
INCREASE YEAR AND THE FOUR TAXABLE YEARS IMMEDIATELY FOLLOWING THE
EMPLOYMENT INCREASE YEAR, PROVIDED THAT IF THE EMPLOYMENT NUMBER IN ANY
TAXABLE YEAR IN WHICH THE CREDIT IS CLAIMED IS LESS THAN THE EMPLOYMENT
NUMBER IN THE EMPLOYMENT INCREASE YEAR, THE AMOUNT OF CREDIT MUST BE
RECALCULATED BY SUBSTITUTING THE LOWER EMPLOYMENT NUMBER IN THE CURRENT
TAXABLE YEAR FOR THE EMPLOYMENT NUMBER IN THE EMPLOYMENT INCREASE YEAR
FOR THE PURPOSE OF CALCULATING THE EMPLOYMENT INCREASE LEVEL AND THIS
LOWER EMPLOYMENT NUMBER SHALL BE DEEMED TO BE THE EMPLOYMENT NUMBER FOR
THE EMPLOYMENT INCREASE YEAR FOR ANY FUTURE APPLICATION OF THIS CREDIT.
(D) 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. MANUFACTURING WAGE CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWEN-
TY-NINE 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 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 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:
A. 2804 3
(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
(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
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(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
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
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(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
(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 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
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
A. 2804 6
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] SECTION
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)
(XXXI) MANUFACTURING WAGE CREDIT AMOUNT OF MANUFACTURING
UNDER SUBSECTION (QQ) WAGE CREDIT UNDER SUBDIVISION
FORTY-ONE 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) MANUFACTURING WAGE CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWEN-
TY-NINE 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. This act shall take effect immediately and shall apply to taxa-
ble years commencing on and after the first of January next succeeding
the date on which it shall have become a law; provided, however that 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; provided, however that effective immediately, the addi-
A. 2804 7
tion, amendment and/or repeal of any rule or regulation necessary for
the implementation of this act on its effective date is authorized and
directed to be made and completed by the department of taxation and
finance and the department of health on or before such effective date.