senate Bill S2383

2011-2012 Legislative Session

Relates to a tax credit for the purchase of certain health insurance policies

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Senate Actions - UPPERCASE
Jan 04, 2012 referred to investigations and government operations
Jan 19, 2011 referred to investigations and government operations

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S2383 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210, 606, 1456 & 1511, Tax L
Versions Introduced in 2009-2010 Legislative Session:
S3052

S2383 - Bill Texts

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Provides a tax credit for certain health insurance plans purchased by small employers and certain individuals.

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BILL NUMBER:S2383

TITLE OF BILL:
An act
to amend the tax law, in relation to providing a
tax credit for the purchase of certain health insurance

PURPOSE:
The purpose of this legislation is to provide tax credits for
small businesses to encourage them to provide health insurance to
their employees.

SUMMARY OF PROVISIONS:
This bill amends sections 210, 606, 1456 and
1511 of the tax law to provide small businesses of fifty employees or
less and individuals purchasing their own insurance a state tax
credit equal to ten percent of the cost of health insurance premiums.
The tax credits would be phased in over two years.

EXISTING LAW:
Current law does not provide a tax credit to small
businesses or individuals for the purchase of health insurance.

JUSTIFICATION:
Individuals and employers are currently struggling with
the skyrocketing cost of health insurance in New York inevitably,
as health care costs increase, so do the number of uninsured in the
state. There are already nearly 3 million New Yorkers without health
insurance. and we can ill afford any more, Small business owners are
struggling with rising health care costs, and are particularly
burdened by the expense of providing health insurance to their
employees. They are often forced to either shift more of the cost to
employees, or to terminate benefits altogether. By giving tax credits
to small businesses. we can reduce their financial burden and provide
them with an incentive to purchase health insurance for their
employees.

LEGISLATIVE HISTORY:
S.3052 of 2009-10; S.2968-A of 2007-08

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
January 1, 2012.

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

                                  2383

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 19, 2011
                               ___________

Introduced  by  Sens.  SEWARD,  BONACIC,  DeFRANCISCO, GOLDEN, GRISANTI,
  HANNON, JOHNSON, LANZA, LARKIN, O'MARA, RANZENHOFER -- 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 providing a tax  credit  for
  the purchase of certain health insurance

  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 43 to read as follows:
  43.  (A) A TAXPAYER WHO IS A QUALIFIED SMALL EMPLOYER SHALL BE ALLOWED
A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE APPLICABLE
PERCENTAGE OF PREMIUMS PAID DURING THE TAXABLE YEAR FOR HEALTH INSURANCE
BY SUCH EMPLOYER. THE APPLICABLE PERCENTAGE SHALL BE  (I)  FIVE  PERCENT
FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
ELEVEN AND (II) TEN PERCENT FOR TAXABLE  YEARS  BEGINNING  ON  OR  AFTER
JANUARY FIRST, TWO THOUSAND TWELVE.
  (B)  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.
  (C) FOR THE PURPOSES OF THIS SUBDIVISION  "QUALIFIED  SMALL  EMPLOYER"
SHALL  MEAN  AN  INDIVIDUAL  PROPRIETOR  WHO IS THE SOLE EMPLOYEE OF THE
BUSINESS OR AN EMPLOYER WITH NOT MORE THAN  FIFTY  EMPLOYEES  WHO  IS  A
"SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE
OF THIS SECTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05750-01-1

S. 2383                             2

  (D)  FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "HEALTH INSURANCE"
MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE  PROVISIONS
OF  SECTION  THREE  THOUSAND  TWO  HUNDRED  SIXTEEN,  THREE THOUSAND TWO
HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR  FOUR  THOUSAND
EIGHT  HUNDRED  ONE  OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
IN A HEALTH SAVINGS ACCOUNT PURSUANT TO  SECTION  1201  OF  THE  FEDERAL
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
  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 EMPLOYER HEALTH           CREDIT UNDER SUBDIVISION
CARE INSURANCE CREDIT                   FORTY-THREE OF SECTION TWO
UNDER SUBSECTION (SS)                   HUNDRED TEN
  S  3. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
  (SS) SMALL EMPLOYER HEALTH CARE INSURANCE CREDIT. (1) A  TAXPAYER  WHO
IS  A QUALIFIED SMALL EMPLOYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX
IMPOSED BY THIS ARTICLE EQUAL TO THE APPLICABLE PERCENTAGE OF THE PREMI-
UMS PAID DURING THE TAXABLE YEAR FOR HEALTH INSURANCE BY SUCH  EMPLOYER.
THE  APPLICABLE  PERCENTAGE  SHALL BE (A) FIVE PERCENT FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND  ELEVEN  AND  (B)  TEN
PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND  TWELVE.    IF  THE  AMOUNT  OF  THE  CREDIT  ALLOWABLE  UNDER THIS
SUBSECTION FOR ANY TAXABLE YEAR 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.
  (2)  FOR  THE  PURPOSES  OF THIS SUBSECTION "QUALIFIED SMALL EMPLOYER"
SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS  THE  SOLE  EMPLOYEE  OF  THE
BUSINESS  OR  AN  EMPLOYER  WITH  NOT MORE THAN FIFTY EMPLOYEES WHO IS A
"SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (3) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM  "HEALTH  INSURANCE"
MEANS  AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
OF SECTION THREE  THOUSAND  TWO  HUNDRED  SIXTEEN,  THREE  THOUSAND  TWO
HUNDRED  TWENTY-ONE,  FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE  FORTY-FOUR  OF  THE
PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
IN  A  HEALTH  SAVINGS  ACCOUNT  PURSUANT TO SECTION 1201 OF THE FEDERAL
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
  S 4. Section 1456 of the tax law is amended by adding a new subsection
(f-1) to read as follows:
  (F-1) SMALL EMPLOYER TAX CREDIT.  (1) A TAXPAYER WHO  IS  A  QUALIFIED
SMALL EMPLOYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS
ARTICLE  EQUAL  TO THE APPLICABLE PERCENTAGE OF THE PREMIUMS PAID DURING
THE TAXABLE YEAR FOR HEALTH INSURANCE BY SUCH EMPLOYER.  THE  APPLICABLE
PERCENTAGE  SHALL  BE (A) FIVE PERCENT FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND ELEVEN AND (B) TEN PERCENT FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE.
  (2) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR,  AND  CARRYOVERS
OF  SUCH CREDIT, BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYA-
BLE TO LESS THAN THE DOLLAR AMOUNT FIXED AS A MINIMUM TAX BY  SUBSECTION
(B) OF SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS ARTICLE. IF, HOWEVER,
THE  AMOUNT  OF  CREDIT OR CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWABLE
UNDER THIS SUBSECTION FOR ANY TAXABLE  YEAR  REDUCES  THE  TAX  TO  SUCH
AMOUNT,  ANY  AMOUNT  OF  CREDIT  OR  CARRYOVERS OF SUCH CREDIT THUS NOT

S. 2383                             3

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.
  (3) FOR THE PURPOSES OF THIS SECTION THE TERM "QUALIFIED SMALL EMPLOY-
ER"  SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
BUSINESS OR AN EMPLOYER WITH NOT MORE THAN  FIFTY  EMPLOYEES  WHO  IS  A
"SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (4)  FOR  THE PURPOSES OF THIS SUBSECTION, THE TERM "HEALTH INSURANCE"
MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE  PROVISIONS
OF  SECTION  THREE  THOUSAND  TWO  HUNDRED  SIXTEEN,  THREE THOUSAND TWO
HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR  FOUR  THOUSAND
EIGHT  HUNDRED  ONE  OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
IN A HEALTH SAVINGS ACCOUNT PURSUANT TO  SECTION  1201  OF  THE  FEDERAL
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
  S  5.  Section 1511 of the tax law is amended by adding a new subdivi-
sion (aa) to read as follows:
  (AA) SMALL EMPLOYER HEALTH CARE INSURANCE CREDIT. (1) A TAXPAYER SHALL
BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE
APPLICABLE PERCENTAGE OF THE PREMIUMS PAID DURING THE TAXABLE  YEAR  FOR
HEALTH  INSURANCE  BY  SUCH EMPLOYER. THE APPLICABLE PERCENTAGE SHALL BE
(A) FIVE PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY  FIRST,
TWO  THOUSAND  ELEVEN AND (B) TEN PERCENT FOR TAXABLE YEARS BEGINNING ON
OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE.
  (2) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN  AN
AMOUNT  WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE MINIMUM FIXED
BY SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS  ARTICLE.  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.
  (3)  FOR  THE  PURPOSES  OF THIS SUBDIVISION THE TERM "QUALIFIED SMALL
EMPLOYER" SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE  SOLE  EMPLOYEE
OF THE BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES WHO IS
A  "SMALL  BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION
ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (4) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "HEALTH  INSURANCE"
MEANS  AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
OF SECTION THREE  THOUSAND  TWO  HUNDRED  SIXTEEN,  THREE  THOUSAND  TWO
HUNDRED  TWENTY-ONE,  FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE  FORTY-FOUR  OF  THE
PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
IN  A  HEALTH  SAVINGS  ACCOUNT  PURSUANT TO SECTION 1201 OF THE FEDERAL
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
  S 6. Section 606 of the tax law is amended by adding a new  subsection
(h-1) to read as follows:
  (H-1) INDIVIDUAL ENROLLEE HEALTH INSURANCE CREDIT. A TAXPAYER SHALL BE
ALLOWED  A  CREDIT  AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE
APPLICABLE PERCENTAGE OF THE PREMIUM PAID DURING THE  TAXABLE  YEAR  FOR
HEALTH  INSURANCE  PURCHASED  PURSUANT  TO  SECTION  FOUR THOUSAND THREE
HUNDRED TWENTY-ONE OR FOUR THOUSAND  THREE  HUNDRED  TWENTY-TWO  OF  THE
INSURANCE  LAW,  INCLUDING  POLICIES  INTENDED  TO  QUALIFY FOR USE IN A
HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL  MEDICARE
PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003. THE APPLI-

S. 2383                             4

CABLE  PERCENTAGE  SHALL BE (1) FIVE PERCENT FOR TAXABLE YEARS BEGINNING
ON OR AFTER JANUARY FIRST, TWO THOUSAND ELEVEN AND (2) TEN  PERCENT  FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE.
  S 7. This act shall take effect January 1, 2012.

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