S T A T E O F N E W Y O R K
________________________________________________________________________
3776
2011-2012 Regular Sessions
I N A S S E M B L Y
January 27, 2011
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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.