Senate Bill S3343

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

                                  3343

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 17, 2011
                               ___________

Introduced  by  Sen.  KRUGER -- 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 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)
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06432-01-1
              

S. 3343                             2

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.