senate Bill S3243

2011-2012 Legislative Session

Exempts insurance companies from tax credit deferrals; repealer

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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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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to investigations and government operations
Feb 14, 2011 referred to investigations and government operations

Co-Sponsors

S3243 - Bill Details

See Assembly Version of this Bill:
A8079
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §33, rpld §34 sub 3 ¶(a) sub¶ 5, ¶(b) sub¶ 5, §1511 subs (y) & (z), Tax L
Versions Introduced in 2009-2010 Legislative Session:
A11723, S8511

S3243 - Bill Texts

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Exempts insurance companies from tax credit deferrals implemented in the 2010 budget.

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BILL NUMBER:S3243

TITLE OF BILL:
An act
to amend the tax law, in relation to exempting insurance companies from
the temporary deferral of tax credits and to repeal certain provisions
of such law relating thereto

PURPOSE:
To exempt the QEZE tax reduction credit for insurance companies
(Article 33 taxpayers) from the temporary deferral of tax credits
found in the 2010-2011 Revenue Bill, S.6610C/A.9710D.

SUMMARY OF PROVISIONS:

§ 1-Removes the QEZE tax reduction credit from the list of tax credits
subject to deferral pursuant to part Y of S.6610c/A.9710D as applied
to Article 33 taxpayers.

§ 2-Removes the reference to Article 33 taxpayers and the applicable
section of the tax law

§ 3-Removes the provisions dealing with the calculation of the
deferral of the tax credits which no longer apply to Article 33
taxpayers.

§ 4-Sets forth the effective date.

JUSTIFICATION:
This bill ensures that insurance companies (Article 33 taxpayers)
won't be severely harmed by the impact of the deferral of these
credits by exempting them from the deferral provision. Insurance
companies are required to follow the accounting principles prescribed
by
the NARC (National Association of Insurance Companies) which is known
as Statutory Accounting. Insurance companies are required to utilize
this basis of accounting in preparing their financial statements.
This basis of accounting differs from the standard GAAP (Generally
Accepted Accounting Principles) practice of accounting which all non
insurance companies utilize to prepare their financial statements.
Under statutory accounting the deferral period for the tax credits is
too long for the asset to be considered an admitted asset and
therefore the amount deferred will be a direct reduction to surplus
no matter how the deferral is recorded on the income statement. This
direct reduction to surplus is a unique set of circumstances
experienced only by insurance companies.

LEGISLATIVE HISTORY:
A.11723/S.8511 of 2010

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:


This act shall take effect immediately and shall be deemed to have
been in full force and effect on and after August 11,
2011.

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

                                  3243

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 14, 2011
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to exempting  insurance  compa-
  nies  from the temporary deferral of tax credits and to repeal certain
  provisions of such law relating thereto

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

  Section  1. The opening paragraph of paragraph (a) of subdivision 3 of
section 33 of the tax law, as added by section 1 of part Y of chapter 57
of the laws of 2010, is amended to read as follows:
  This section shall apply to the credits allowed  under  the  following
provisions in article nine-a of this chapter and any applicable counter-
part  provisions  in  articles  nine,  twenty-two[,] AND thirty-two [and
thirty-three] of this chapter:
  S 2. Subparagraph 5 of paragraph (a) and subparagraph 5  of  paragraph
(b) of subdivision 3 of section 34 of the tax law, as added by section 2
of part Y of chapter 57 of the laws of 2010, are REPEALED.
  S 3. Subdivisions (y) and (z) of section 1511 of the tax law, subdivi-
sion  (y)  as  added by section 7 of part Y of chapter 57 of the laws of
2010, are REPEALED.
  S 4. This act shall take effect immediately; except that if  this  act
shall  have become a law on or after August 11, 2011 this act shall take
effect immediately and shall be deemed to have been in  full  force  and
effect on and after August 11, 2011.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08831-01-1

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