S T A T E O F N E W Y O R K
________________________________________________________________________
5262
2009-2010 Regular Sessions
I N A S S E M B L Y
February 11, 2009
___________
Introduced by M. of A. GIANARIS, ENGLEBRIGHT, PHEFFER -- Multi-Sponsored
by -- M. of A. BOYLAND, BRADLEY, CHRISTENSEN, COLTON, COOK, CUSICK,
DelMONTE, DIAZ, FIELDS, GALEF, JOHN, V. LOPEZ, MARKEY, MILLMAN,
MORELLE, P. RIVERA, SCHIMMINGER, SWEENEY -- read once and referred to
the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a tax credit
against corporation taxes, business corporation taxes and personal
income taxes, for the purchase of hybrid vehicles
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 187-o to
read as follows:
S 187-O. HYBRID VEHICLE CREDIT. 1. GENERAL. A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE CREDITED AGAINST THE TAXES IMPOSED UNDER
SECTIONS ONE HUNDRED EIGHTY-THREE, ONE HUNDRED EIGHTY-FOUR AND ONE
HUNDRED EIGHTY-FIVE OF THIS ARTICLE. SUCH CREDIT, TO BE COMPUTED AS
PROVIDED IN THIS SECTION, SHALL BE ALLOWED FOR QUALIFIED HYBRID VEHICLES
PLACED IN SERVICE DURING THE TAXABLE YEAR. PROVIDED, HOWEVER, THAT THE
AMOUNT OF SUCH CREDIT ALLOWABLE AGAINST THE TAX IMPOSED BY SECTION ONE
HUNDRED EIGHTY-FOUR OF THIS ARTICLE SHALL BE THE EXCESS OF THE CREDIT
ALLOWED BY THIS SECTION OVER THE AMOUNT OF SUCH CREDIT ALLOWABLE AGAINST
THE TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE.
2. QUALIFIED HYBRID VEHICLES. THE CREDIT UNDER THIS SECTION FOR QUALI-
FIED HYBRID VEHICLES SHALL EQUAL FOUR THOUSAND DOLLARS PER VEHICLE
REGISTERED IN THIS STATE.
3. DEFINITION. THE TERM "QUALIFIED HYBRID VEHICLE" SHALL HAVE THE
SAME MEANING AS PROVIDED FOR UNDER PARAGRAPH THREE OF SUBSECTION (U) OF
SECTION SIX HUNDRED SIX OF THIS CHAPTER.
4. CARRYOVERS. 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 EIGHTY-THREE OR ONE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05746-01-9
A. 5262 2
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
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
5. CREDIT RECAPTURE. (A) IF, WITHIN THREE FULL YEARS FROM THE DATE A
QUALIFIED HYBRID VEHICLE IS PLACED IN SERVICE, SUCH QUALIFIED HYBRID
VEHICLE CEASES TO BE QUALIFIED, A RECAPTURE AMOUNT MUST BE ADDED BACK IN
THE TAX YEAR IN WHICH SUCH CESSATION OCCURS.
(B) A QUALIFIED HYBRID VEHICLE CEASES TO BE QUALIFIED IF:
(I) IT IS MODIFIED BY THE TAXPAYER SO THAT IT NO LONGER MEETS THE
REQUIREMENTS OF A QUALIFIED HYBRID VEHICLE AS DEFINED IN PARAGRAPH THREE
OF SUBSECTION (U) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER, OR
(II) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SECTION SELLS OR
DISPOSES OF THE VEHICLE AND KNOWS OR HAS REASON TO KNOW THAT THE VEHICLE
WILL BE SO MODIFIED.
(C) THE RECAPTURE AMOUNT IS EQUAL TO THE CREDIT ALLOWABLE UNDER THIS
SECTION MULTIPLIED BY:
(I) ONE HUNDRED PERCENT, IF THE CESSATION OF QUALIFICATION OCCURS
WITHIN THE FIRST FULL YEAR AFTER THE DATE THE VEHICLE IS PLACED IN
SERVICE,
(II) SIXTY-SIX AND TWO-THIRDS PERCENT, IF THE CESSATION OF QUALIFICA-
TION OCCURS WITHIN THE SECOND FULL YEAR AFTER THE DATE THE VEHICLE IS
PLACED IN SERVICE, OR
(III) THIRTY-THREE AND ONE-THIRD PERCENT, IF THE CESSATION OF QUALI-
FICATION OCCURS WITHIN THE THIRD FULL YEAR AFTER THE DATE THE VEHICLE IS
PLACED IN SERVICE.
S 2. Section 210 of the tax law is amended by adding a new subdivision
29 to read as follows:
29. HYBRID VEHICLE CREDIT. (A) GENERAL. A TAXPAYER SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX
IMPOSED BY THIS ARTICLE, FOR QUALIFIED HYBRID VEHICLES PLACED IN SERVICE
DURING THE TAXABLE YEAR.
(B) QUALIFIED HYBRID VEHICLES. THE CREDIT UNDER THIS SUBDIVISION FOR
QUALIFIED HYBRID VEHICLES SHALL EQUAL FOUR THOUSAND DOLLARS PER VEHICLE
REGISTERED IN THIS STATE.
(C) DEFINITION. THE TERM "QUALIFIED HYBRID VEHICLE" SHALL HAVE THE
SAME MEANING AS PROVIDED FOR UNDER PARAGRAPH THREE OF SUBSECTION (U) OF
SECTION SIX HUNDRED SIX OF THIS CHAPTER.
(D) CARRYOVERS. IN NO EVENT SHALL THE CREDIT UNDER THIS SUBDIVISION BE
ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF CRED-
IT 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.
(E) CREDIT RECAPTURE. (I) IF, WITHIN THREE FULL YEARS FROM THE DATE A
QUALIFIED HYBRID VEHICLE IS PLACED IN SERVICE, SUCH QUALIFIED HYBRID
VEHICLE CEASES TO BE QUALIFIED, A RECAPTURE AMOUNT MUST BE ADDED BACK IN
THE TAX YEAR IN WHICH SUCH CESSATION OCCURS.
(II) A QUALIFIED HYBRID VEHICLE CEASES TO BE QUALIFIED IF:
(A) IT IS MODIFIED BY THE TAXPAYER SO THAT IT NO LONGER MEETS THE
REQUIREMENTS OF A QUALIFIED HYBRID VEHICLE AS DEFINED IN PARAGRAPH THREE
OF SUBSECTION (U) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER, OR
A. 5262 3
(B) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBDIVISION SELLS OR
DISPOSES OF THE VEHICLE AND KNOWS OR HAS REASON TO KNOW THAT THE VEHICLE
WILL BE SO MODIFIED.
(III) THE RECAPTURE AMOUNT IS EQUAL TO THE CREDIT ALLOWABLE UNDER THIS
SUBDIVISION MULTIPLIED BY:
(A) ONE HUNDRED PERCENT, IF THE CESSATION OF QUALIFICATION OCCURS
WITHIN THE FIRST FULL YEAR AFTER THE DATE THE VEHICLE IS PLACED IN
SERVICE,
(B) SIXTY-SIX AND TWO-THIRDS PERCENT, IF THE CESSATION OF QUALIFICA-
TION OCCURS WITHIN THE SECOND FULL YEAR AFTER THE DATE THE VEHICLE IS
PLACED IN SERVICE, OR
(C) THIRTY-THREE AND ONE-THIRD PERCENT, IF THE CESSATION OF QUALIFICA-
TION OCCURS WITHIN THE THIRD FULL YEAR AFTER THE DATE THE VEHICLE IS
PLACED IN SERVICE.
(F) AFFILIATES. (I) IF A CREDIT UNDER THIS SUBDIVISION IS ALLOWED TO A
TAXPAYER WITH RESPECT TO A TAXABLE YEAR, THE ACTION TAKEN BY SUCH
TAXPAYER WHICH RESULTED IN SUCH CREDIT BEING ALLOWED THERETO MAY, AT THE
ELECTION OF THE TAXPAYER AND AN AFFILIATE THEREOF, BE ASCRIBED TO SUCH
AFFILIATE. WHERE SUCH AFFILIATE, BASED ON SUCH ASCRIPTION, IS ALLOWED
SUCH CREDIT AND DEDUCTS FROM THE TAX OTHERWISE DUE THE AMOUNT OF SUCH
CREDIT, SUCH CREDIT SHALL BE DEEMED IN ALL RESPECTS TO HAVE BEEN ALLOWED
TO SUCH AFFILIATE, PROVIDED THAT ANY ACTION OR INACTION BY THE TAXPAYER
WHICH CONSTITUTES AN EVENT OF RECAPTURE DESCRIBED IN PARAGRAPH (E) OF
THIS SUBDIVISION SHALL BE ASCRIBED TO THE AFFILIATE AND SHALL CONSTITUTE
AN EVENT OF RECAPTURE WITH RESPECT TO THE CREDIT ALLOWED TO THE AFFIL-
IATE PURSUANT TO THIS SUBDIVISION.
(II) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN
THE CASE OF THE CREDIT PROVIDED FOR UNDER THIS SUBDIVISION BEING ALLOWED
TO, OR ASSERTED TO BE ALLOWED TO, AN AFFILIATE, PURSUANT TO SUBPARAGRAPH
(I) OF THIS PARAGRAPH, THE COMMISSIONER SHALL HAVE THE SAME POWERS WITH
RESPECT TO EXAMINING THE BOOKS AND RECORDS OF THE TAXPAYER, AND HAVE
SUCH OTHER POWERS OF INVESTIGATION WITH RESPECT TO THE TAXPAYER, AS ARE
AFFORDED UNDER THIS CHAPTER WITH RESPECT TO A TAXPAYER WHICH HAS
DEDUCTED THE CREDIT ALLOWED UNDER THIS SECTION FROM TAX OTHERWISE DUE,
AS IF IT WERE THE TAXPAYER WHICH HAD DEDUCTED SUCH CREDIT FROM TAX
OTHERWISE DUE.
(III) THE TERM "AFFILIATE" SHALL MEAN A CORPORATION SUBSTANTIALLY ALL
THE CAPITAL STOCK OF WHICH IS OWNED OR CONTROLLED EITHER DIRECTLY OR
INDIRECTLY BY THE TAXPAYER, OR WHICH OWNS OR CONTROLS EITHER DIRECTLY OR
INDIRECTLY SUBSTANTIALLY ALL THE CAPITAL STOCK OF THE TAXPAYER, OR
SUBSTANTIALLY ALL THE CAPITAL STOCK OF WHICH IS OWNED OR CONTROLLED
EITHER DIRECTLY OR INDIRECTLY BY INTERESTS WHICH OWN OR CONTROL EITHER
DIRECTLY OR INDIRECTLY SUBSTANTIALLY ALL THE CAPITAL STOCK OF THE
TAXPAYER.
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:
A. 5262 4
Investment tax credit Investment credit base
under subsection (a) or qualified
rehabilitation
expenditures under
subdivision twelve of
section two hundred ten
Empire zone Cost or other basis
investment tax credit under subdivision
under subsection (j) twelve-B
of section two hundred
ten
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
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
Agricultural property tax Allowable school
credit under subsection (n) district property taxes under
subdivision twenty-two of
section two hundred ten
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
Employment incentive Applicable investment credit
credit under subsec- base under subdivision
tion (a-1) twelve-D of section two
hundred ten
Empire zone Applicable investment
employment credit under sub-
incentive credit under division twelve-C
subsection (j-1) of section two hundred ten
Alternative fuels credit Cost under subdivision
under subsection (p) twenty-four of section two
hundred ten
A. 5262 5
Qualified emerging Applicable credit base
technology company under subdivision twelve-E
employment credit of section two hundred ten
under subsection (q)
Qualified emerging Qualified investments under
technology company subdivision twelve-F of
capital tax credit section two hundred ten
under subsection (r)
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
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
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
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
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
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
A. 5262 6
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
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
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
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
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
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
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
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
Empire state commercial production Amount of credit for qualified
credit under subsection (jj) production costs in production
of a qualified commercial under
A. 5262 7
subdivision thirty-eight of sec-
tion two hundred ten
Biofuel production Amount of credit
tax credit under under subdivision
subsection (jj) thirty-eight of
section two hundred ten
Clean heating fuel credit Amount of credit under
under subsection (mm) subdivision thirty-nine of
section two hundred ten
Credit for rehabilitation Amount of credit under
of historic properties subdivision forty of
under subsection (oo) [subsection] SECTION two hundred
ten
Credit for companies who Amount of credit under
provide transportation subdivision forty of
to individuals section two hundred ten
with disabilities
under subsection (oo)
HYBRID VEHICLE CREDIT COST UNDER SUBDIVISION
UNDER SUBSECTION (U) TWENTY-NINE OF SECTION
TWO HUNDRED TEN
S 4. Section 606 of the tax law is amended by adding a new subsection
(u) to read as follows:
(U) HYBRID VEHICLE CREDIT. (1) GENERAL. A TAXPAYER SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX
IMPOSED BY THIS ARTICLE, FOR QUALIFIED HYBRID VEHICLES PLACED IN SERVICE
DURING THE TAXABLE YEAR.
(2) QUALIFIED HYBRID VEHICLE. THE CREDIT UNDER THIS SUBSECTION FOR
QUALIFIED HYBRID VEHICLES SHALL EQUAL FOUR THOUSAND DOLLARS PER VEHICLE
REGISTERED IN THIS STATE.
(3) DEFINITION. THE TERM "QUALIFIED HYBRID VEHICLE" MEANS A MOTOR
VEHICLE, AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE
AND TRAFFIC LAW, THAT:
(A) DRAWS PROPULSION ENERGY FROM BOTH:
(I) AN INTERNAL COMBUSTION ENGINE (OR HEAT ENGINE THAT USES COMBUSTI-
BLE FUEL); AND
(II) AN ENERGY STORAGE DEVICE;
(B) EMPLOYS A REGENERATIVE VEHICLE BRAKING SYSTEM THAT RECOVERS WASTE
ENERGY TO CHARGE SUCH ENERGY STORAGE DEVICE; AND
(C) (I) IS MORE FUEL EFFICIENT THAN THE AVERAGE FUEL EFFICIENCY OF
MOTOR VEHICLES, WHICH DO NOT MEET THE REQUIREMENTS OF SUBPARAGRAPHS (A)
AND (B) OF THIS PARAGRAPH, AND ARE IN THE NEXT LOWER VEHICLE CLASS THAN
THE SUBJECT MOTOR VEHICLE; OR
(II) IS ONE AND ONE-HALF TIMES MORE FUEL EFFICIENT THAN MOTOR VEHI-
CLES, WHICH DO NOT MEET THE REQUIREMENTS OF SUBPARAGRAPHS (A) AND (B) OF
THIS PARAGRAPH, AND ARE IN THE SAME CLASS AS THE SUBJECT MOTOR VEHICLE.
(4) CARRYOVERS. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS
SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY
BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
A. 5262 8
(5) CREDIT RECAPTURE. (A) IF, WITHIN THREE FULL YEARS FROM THE DATE A
QUALIFIED HYBRID VEHICLE IS PLACED IN SERVICE, SUCH QUALIFIED HYBRID
VEHICLE CEASES TO BE QUALIFIED, A RECAPTURE AMOUNT MUST BE ADDED BACK IN
THE TAX YEAR IN WHICH SUCH CESSATION OCCURS.
(B) A QUALIFIED HYBRID VEHICLE CEASES TO BE QUALIFIED IF:
(I) IT IS MODIFIED BY THE TAXPAYER SO THAT IT NO LONGER MEETS THE
REQUIREMENTS OF A QUALIFIED HYBRID VEHICLE AS DEFINED IN PARAGRAPH THREE
OF THIS SUBSECTION.
(II) THE TAXPAYER RECEIVING THE CREDIT UNDER THIS SUBSECTION SELLS OR
DISPOSES OF THE VEHICLE AND KNOWS OR HAS REASON TO KNOW THAT THE VEHICLE
WILL BE SO MODIFIED.
(C) THE RECAPTURE AMOUNT IS EQUAL TO THE CREDIT ALLOWABLE UNDER THIS
SUBSECTION MULTIPLIED BY:
(I) ONE HUNDRED PERCENT, IF THE CESSATION OF QUALIFICATION OCCURS
WITHIN THE FIRST FULL YEAR AFTER THE DATE THE VEHICLE IS PLACED IN
SERVICE,
(II) SIXTY-SIX AND TWO-THIRDS PERCENT, IF THE CESSATION OF QUALIFICA-
TION OCCURS WITHIN THE SECOND FULL YEAR AFTER THE DATE THE VEHICLE IS
PLACED IN SERVICE, OR
(III) THIRTY-THREE AND ONE-THIRD PERCENT, IF THE CESSATION OF QUALI-
FICATION OCCURS WITHIN THE THIRD FULL YEAR AFTER THE DATE THE VEHICLE IS
PLACED IN SERVICE.
S 5. 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 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.