S T A T E O F N E W Y O R K
________________________________________________________________________
3763
2009-2010 Regular Sessions
I N A S S E M B L Y
January 28, 2009
___________
Introduced by M. of A. MAGNARELLI, MORELLE, DESTITO, DelMONTE, SCHIM-
MINGER, JAFFEE, BENEDETTO, LUPARDO, KOON, GABRYSZAK, CAHILL, HOYT,
STIRPE, ESPAILLAT -- Multi-Sponsored by -- M. of A. BOYLAND, BRENNAN,
CAMARA, LATIMER, MAISEL, MARKEY, PEOPLES, PERRY, PHEFFER, SCHIMEL,
SWEENEY, WEISENBERG, ZEBROWSKI -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to refundability of the invest-
ment tax credit for research and development property
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (e) of subdivision 12 of section 210 of the tax
law, as amended by section 9 of part M of chapter 407 of the laws of
1999, is amended to read as follows:
(e) Except as otherwise provided in this paragraph, 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 para-
graphs (c) and (d) of subdivision one of this section. However, if the
amount of credit allowable under this subdivision for any taxable year
reduces the tax to such amount, any amount of credit allowed for a taxa-
ble year commencing prior to January first, nineteen hundred eighty-sev-
en and 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 but in no event shall such credit be carried over to
taxable years commencing on or after January first, two thousand two,
and any amount of credit allowed for a taxable year commencing on or
after January first, nineteen hundred eighty-seven and not deductible in
such year may be carried over to the fifteen taxable years next follow-
ing such taxable year and may be deducted from the taxpayer's tax for
such year or years. In lieu of such carryover, any such taxpayer which
qualifies as a new business under paragraph (j) of this subdivision AND
ANY SUCH TAXPAYER ALLOWED A CREDIT UNDER CLAUSE (C) OF SUBPARAGRAPH (I)
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00553-01-9
A. 3763 2
OF PARAGRAPH (B) OF THIS SUBDIVISION THAT CONDUCTS BASIC, APPLIED OR
TRANSLATIONAL RESEARCH THAT LEADS TO THE DEVELOPMENT OF PRODUCTS THAT
IMPROVE HUMAN HEALTH OR AGRICULTURE AND THAT REQUIRE APPROVAL BY THE
FEDERAL FOOD AND DRUG ADMINISTRATION AND THE CONDUCT OF CLINICAL TRIALS
TO OBTAIN SUCH APPROVAL may elect to treat the amount of such carryover
as an overpayment of tax to be credited or refunded in accordance with
the provisions of section [ten hundred] ONE THOUSAND eighty-six of this
chapter, provided, however, the provisions of subsection (c) of section
[ten hundred] ONE THOUSAND eighty-eight of this chapter notwithstanding,
no interest shall be paid thereon.
S 2. Paragraph 5 of subsection (a) of section 606 of the tax law, as
amended by chapter 170 of the laws of 1994, is amended to read as
follows:
(5) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
allowed for a taxable year commencing prior to January first, nineteen
hundred eighty-seven may be carried over to the following year or years
and may be deducted from the taxpayer's tax for such year or years, but
in no event shall such credit be carried over to taxable years commenc-
ing on or after January first, nineteen hundred ninety-seven, and any
amount of credit allowed for a taxable year commencing on or after Janu-
ary first, nineteen hundred eighty-seven and not deductible in such year
may be carried over to the ten taxable years next following such taxable
year and may be deducted from the taxpayer's tax for such year or years.
In lieu of carrying over any such excess, a taxpayer who qualifies as an
owner of a new business for purposes of paragraph ten of this subsection
OR WHO QUALIFIES AS AN OWNER OF A BUSINESS THAT CONDUCTS BASIC, APPLIED
OR TRANSLATIONAL RESEARCH THAT LEADS TO THE DEVELOPMENT OF PRODUCTS THAT
IMPROVE HUMAN HEALTH OR AGRICULTURE AND THAT REQUIRE APPROVAL BY THE
FEDERAL FOOD AND DRUG ADMINISTRATION AND THE CONDUCT OF CLINICAL TRIALS
TO OBTAIN SUCH APPROVAL may, at his option, receive such excess as a
refund. Any refund paid pursuant to this paragraph shall be deemed to be
a refund of an overpayment of tax as provided in section six hundred
eighty-six of this article, provided, however, that no interest shall be
paid thereon.
S 3. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.