S T A T E   O F   N E W   Y O R K
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                                  3776

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2011
                               ___________

Introduced  by  M. of A. GIGLIO, RAIA, BURLING, HAWLEY, SAYWARD, KOLB --
  Multi-Sponsored by -- M. of  A.  BARCLAY,  CROUCH,  HAYES,  McDONOUGH,
  McKEVITT,  REILICH  -- read once and referred to the Committee on Ways
  and Means

AN ACT to amend the tax law, in relation to establishing business  fran-
  chise  and personal income tax credits for certain small businesses in
  a village or small city

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

  Section  1.  Section  210  of  the  tax law is amended by adding a new
subdivision 29 to read as follows:
  29. SMALL BUSINESS CAPITAL TAX CREDIT. (A) A TAXPAYER SHALL BE ALLOWED
A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS  SUBDIVISION,  AGAINST  THE
TAX IMPOSED BY THIS ARTICLE. SUCH CREDIT SHALL BE GRANTED TO ANY TAXPAY-
ER  WHICH  IS  A  SMALL BUSINESS WHEN THE SMALL BUSINESS IS LOCATED IN A
VILLAGE OR IN A CITY WITH A POPULATION OF LESS THAN THIRTY-FIVE THOUSAND
AS DETERMINED BY THE MOST RECENT FEDERAL DECENNIAL CENSUS. THE AMOUNT OF
THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE SUM OF QUALIFIED
INVESTMENTS IN SUCH SMALL BUSINESS, AS DETERMINED BY THE COMMISSIONER.
  (B) FOR THE PURPOSES OF THIS SUBDIVISION, THE  TERM  "SMALL  BUSINESS"
MEANS A BUSINESS WHICH EMPLOYS LESS THAN FIFTEEN EMPLOYEES.
  (C) THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS SUBDI-
VISION  FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, 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 OR CARRYOVERS OF  SUCH  CREDIT,  OR  BOTH,  ALLOWED
UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, ANY AMOUNT OF CREDIT OR  CARRYOVERS  OF  SUCH  CREDIT  THUS  NOT
DEDUCTIBLE  IN  SUCH  TAXABLE  YEAR MAY BE CARRIED OVER TO THE FOLLOWING
YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAX FOR SUCH YEAR OR YEARS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06928-01-1

              

A. 3776                             2

  S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xxxii) to read as
follows:
(XXXII) SMALL BUSINESS               AMOUNT OF CREDIT UNDER
CAPITAL TAX CREDIT                   SUBDIVISION TWENTY-NINE OF
UNDER SUBSECTION (SS)                SECTION TWO HUNDRED TEN
  S  3. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
  (SS) SMALL BUSINESS CAPITAL  TAX  CREDIT.  (1)  A  TAXPAYER  SHALL  BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST
THE  TAX  IMPOSED  BY  THIS ARTICLE. SUCH CREDIT SHALL BE GRANTED TO ANY
TAXPAYER WHICH IS A SMALL BUSINESS WHEN THE SMALL BUSINESS IS LOCATED IN
A VILLAGE OR IN A CITY WITH A POPULATION OF LESS THAN THIRTY-FIVE  THOU-
SAND  AS  DETERMINED  BY  THE MOST RECENT FEDERAL DECENNIAL CENSUS.  THE
AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE SUM OF
QUALIFIED INVESTMENTS IN SUCH  SMALL  BUSINESS,  AS  DETERMINED  BY  THE
COMMISSIONER.
  (2)  FOR  THE  PURPOSES  OF THIS SUBSECTION, THE TERM "SMALL BUSINESS"
MEANS A BUSINESS WHICH EMPLOYS LESS THAN FIFTEEN EMPLOYEES.
  (3) THE CREDIT AND  CARRYOVERS  OF  SUCH  CREDIT  ALLOWED  UNDER  THIS
SUBSECTION  FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE
TAX DUE FOR SUCH YEAR  TO  BE  LESS  THAN  THE  HIGHER  OF  THE  AMOUNTS
PRESCRIBED  IN  PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED TEN OF THIS CHAPTER.  HOWEVER, IF THE AMOUNT OF CREDIT OR CARRY-
OVERS OF SUCH CREDIT, OR BOTH, ALLOWED UNDER  THIS  SUBSECTION  FOR  ANY
TAXABLE  YEAR  REDUCES  THE  TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT OR
CARRYOVERS OF SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE  YEAR  MAY
BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAX FOR SUCH YEAR OR YEARS.
  S 4. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
taxable years commencing on or after such date.