Assembly Bill A3482

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

                                  3482

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2013
                               ___________

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 38  to  read
as follows:
  S  38. 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 46.
  (2) ARTICLE 22: SECTION 606: SUBSECTION (VV).
  S 2. Section 210 of the tax law is amended by adding a new subdivision
46 to read as follows:
  46. LOCAL MATERIAL CREDIT. (A) ALLOWANCE OF CREDIT.   A TAXPAYER  THAT
IS  ELIGIBLE  PURSUANT  TO SECTION THIRTY-EIGHT OF THIS CHAPTER SHALL BE
ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION THIRTY-EIGHT
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
UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE  TAX  TO  SUCH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04472-01-3
              

A. 3482                             2

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 (xxxv) to read as
follows:

(XXXV) CREDIT FOR COMPANIES THAT     AMOUNT OF CREDIT UNDER
PURCHASE LOCAL MATERIALS             SUBDIVISION FORTY-SIX OF
UNDER SUBSECTION (VV)                SECTION TWO HUNDRED TEN
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(vv) to read as follows:
  (VV)  LOCAL MATERIAL CREDIT. (1) ALLOWANCE OF CREDIT.  A TAXPAYER THAT
IS ELIGIBLE PURSUANT TO SECTION THIRTY-EIGHT OF THIS  CHAPTER  SHALL  BE
ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION THIRTY-EIGHT
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, 2013.