Assembly Bill A1214

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

                                  1214

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced by M. of A. LENTOL -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law, in relation to authorizing a local material
  tax credit

  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 35  to  read
as follows:
  S  35. LOCAL MATERIAL CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT
PURCHASES MATERIALS FROM COMPANIES LOCATED WITHIN A FIFTEEN MILE  RADIUS
OF  SUCH  TAXPAYER'S  BUSINESS, AND THAT IS SUBJECT TO TAX UNDER ARTICLE
NINE-A OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT  AGAINST
SUCH  TAX,  PURSUANT  TO THE PROVISIONS REFERENCED IN SUBDIVISION (B) OF
THIS SECTION, EQUAL TO TEN  PERCENT  OF  THE  TOTAL  RECEIPTS  FROM  THE
PURCHASE OF MATERIALS FROM COMPANIES LOCATED WITHIN A FIFTEEN MILE RADI-
US OF SUCH TAXPAYER'S BUSINESS.
  (B)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 43.
  (2) ARTICLE 22: SECTION 606: SUBSECTION (SS).
  S 2. Section 210 of the tax law is amended by adding a new subdivision
43 to read as follows:
  43. LOCAL MATERIAL CREDIT. (A) ALLOWANCE OF CREDIT.   A TAXPAYER  THAT
IS  ELIGIBLE  PURSUANT  TO  SECTION THIRTY-FIVE OF THIS CHAPTER SHALL BE
ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION  THIRTY-FIVE
OF THIS CHAPTER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE  CREDIT  ALLOWABLE

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

                                                           LBD03538-01-1

A. 1214                             2

UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CRED-
ITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE  THOU-
SAND  EIGHTY-SIX  OF  THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING,  NO INTEREST SHALL BE PAID THEREON. THE BALANCE OF SUCH
CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY NOT BE  CARRIED
OVER TO ANY SUCCEEDING TAXABLE YEAR.
  S  3. 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) CREDIT FOR COMPANIES THAT    AMOUNT OF CREDIT UNDER
PURCHASE LOCAL MATERIALS             SUBDIVISION FORTY-THREE OF
UNDER SUBSECTION (SS)                SECTION TWO HUNDRED TEN
  S  4. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
  (SS) LOCAL MATERIAL CREDIT. (1) ALLOWANCE OF CREDIT.  A TAXPAYER  THAT
IS  ELIGIBLE  PURSUANT  TO  SECTION THIRTY-FIVE OF THIS CHAPTER SHALL BE
ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION  THIRTY-FIVE
OF THIS CHAPTER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF  CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  AMOUNT  PRESCRIBED  IN  SECTION SIX HUNDRED TWO OF THIS PART.
PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS
SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO  SUCH  AMOUNT,  THE
EXCESS  SHALL  BE  TREATED  AS  AN  OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING,  NO INTEREST SHALL BE PAID THEREON. THE BALANCE OF SUCH
CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY NOT BE  CARRIED
OVER TO  ANY SUCCEEDING TAXABLE YEAR.
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2011.