senate Bill S173A

2013-2014 Legislative Session

Provides a maximum $200 tax credit for taxpayer expenses associated with the development of open source and free software license programs

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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
Mar 28, 2014 print number 173a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S173 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S43
2009-2010: S4046

S173 - Bill Texts

view summary

Provides a maximum $200 tax credit for taxpayer expenses associated with the development of open source and free software license programs.

view sponsor memo
BILL NUMBER:S173

TITLE OF BILL:
An act
to amend the tax law, in relation to providing a tax credit to
individuals for up to two hundred dollars of expenses related to the
development and posting of an open source or free license program

PURPOSE:
The purpose of this bill is to incentivize individuals to develop Open
Source Software with a tax credit.

SUMMARY OF PROVISIONS:
New subsection (aaa) (1) amends § 606 of the Tax Law by providing for an
Open Source tax credit to the creators of Open Source software. (2)
amends § 606 of the Tax Law by providing for the type of programs
that qualify for the Open Source tax credit. (3) amends § 606 of the
Tax Law by providing to whom the Open Source tax credit applies. (4)
amends § 606 of the Tax Law by providing the limits and regulations
of the tax credit itself.

JUSTIFICATION:
"Open Source" refers to software offered for free online download
along with its instruction set ("source code"). The New York State
Assembly currently uses Open Source programs such as Mozilla for
email, Firefox for web browsing, and WebCal for electronic
calendars.. The Assembly's use of this software has led to
significant cost savings for the Assembly's operating budget. Once
an Open Source program is downloaded with its source code, anyone can
view the instructions, modify the program, and redistribute it with
the same freedoms". A 2006 report authorized by John Irons and Carl
Malamud from the Center for American Progress details how Open Source
software provides a high social value amongst the group, but a
relatively low economic incentive for individual developer"s. By
allowing open access to the technology's source code, Open Source
software enhances a broader dissemination of knowledge and ideas
Although large corporations such as IBM develop and use Open Source
programs, most Open Source software is written by individuals
volunteering from home. Currently, corporations and self-employed
individuals who create Open Source technology are eligible for a tax
deduction for their software development costs. The vast majority
of Open Source software creators (individual volunteers), however,
do not receive this tax credit. This legislation creates a similar
tax credit incentive for individuals who currently have no means to
deduct these expenses. The tax credit would apply only to
out-of-pocket expenses such as Internet hosting and depreciated cost
of capital expenses such as computers and education. The increased
incentive for individuals would attract more Open
Source developers to New York State, resulting in job creation and a
reinvigoration of our State's technology sector. Additionally, an
influx of Open Source software would lower operating costs for larger
agencies (such as the Assembly), by providing usable software without
charge.

LEGISLATIVE HISTORY:


2009-10: S.4046 (Squadron) - Finance, A.6380 (Bing) - Ways and Means.
2012: Referred to Investigations and Government Operations

FISCAL IMPLICATIONS:
To be determined.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act will take effect immediately and shall apply to taxable years
beginning on and after the first of January next succeeding the date
on which it shall have become a law.

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

                                   173

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. SQUADRON -- 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 providing a  tax  credit  to
  individuals  for  up to two hundred dollars of expenses related to the
  development and posting of an open source or free license program

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

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (aaa) to read as follows:
  (AAA) OPEN SOURCE OR FREE LICENSE CREDIT.  (1)  A  TAXPAYER  SHALL  BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST
THE  TAX  IMPOSED  PURSUANT TO SECTION SIX HUNDRED ONE OF THIS PART. THE
AMOUNT OF  CREDIT  SHALL  EQUAL  UP  TO  TWENTY  PERCENT  OF  THE  TOTAL
OUT-OF-POCKET  EXPENSES  OF  THE  TAXPAYER  USED IN THE DEVELOPMENT OF A
PROGRAM THAT IS PROVIDED TO THE PUBLIC UNDER  AN  OPEN  SOURCE  OR  FREE
SOFTWARE LICENSE, UP TO A MAXIMUM OF TWO HUNDRED DOLLARS.
  (2)  FOR  THE PURPOSES OF THIS SUBSECTION, A PROGRAM SHALL QUALIFY FOR
THE CREDIT PROVIDED BY THIS SUBSECTION IF THE CODE FOR SUCH PROGRAM  HAS
BEEN RELEASED UNDER AN OPEN SOURCE LICENSE RECOGNIZED BY THE OPEN SOURCE
INITIATIVE,  OR  HAS  BEEN RELEASED UNDER A FREE SOFTWARE LICENSE RECOG-
NIZED BY THE FREE SOFTWARE FOUNDATION.
  (3) THIS SUBSECTION SHALL APPLY TO ANY INDIVIDUAL FOR ANY TAXABLE YEAR
ONLY IF SUCH INDIVIDUAL ELECTS TO HAVE THIS SECTION APPLY FOR SUCH TAXA-
BLE YEAR. AN ELECTION TO HAVE THIS SECTION APPLY MAY NOT BE MADE FOR ANY
TAXABLE YEAR IF SUCH ELECTION IS IN EFFECT WITH RESPECT TO SUCH INDIVID-
UAL FOR ANY OTHER TAXABLE YEAR AND PERTAINING TO THE SAME PROGRAM OR ANY
PORTION THEREOF.
  (4) IN NO EVENT SHALL THE  AMOUNT  OF  THE  CREDIT  PROVIDED  BY  THIS
SUBSECTION  EXCEED  THE TAXPAYER'S TAX FOR THE TAXABLE YEAR. HOWEVER, IF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00298-01-3

S. 173                              2

THE AMOUNT OF CREDIT OTHERWISE ALLOWABLE PURSUANT TO THIS SUBSECTION FOR
ANY TAXABLE YEAR RESULTS IN SUCH EXCESS AMOUNT, ANY AMOUNT OF CREDIT 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.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on and after the first of January  next  succeeding  the
date on which it shall have become a law.

Co-Sponsors

S173A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S43
2009-2010: S4046

S173A (ACTIVE) - Bill Texts

view summary

Provides a maximum $200 tax credit for taxpayer expenses associated with the development of open source and free software license programs.

view sponsor memo
BILL NUMBER:S173A

TITLE OF BILL: An act to amend the tax law, in relation to providing
a tax credit to individuals for up to two hundred dollars of expenses
related to the development and posting of an open source or free
license program

PURPOSE:

The purpose of this bill is to incentivize individuals to develop Open
Source Software with a tax credit.

SUMMARY OF PROVISIONS:

Amends § 606 of the Tax Law by providing for an Open Source tax credit
to the creators of Open Source software. (2) amends § 606 of the Tax
Law by providing for the type of programs that qualify for the Open
Source tax credit. (3) amends § 606 of the Tax Law by providing to
whom the Open Source tax credit applies. (4) amends § 606 of the Tax
Law by providing the limits and regulations of the tax credit itself.

JUSTIFICATION:

"Open Source" refers to software offered for free online download
along with its instruction set ("source code"). The New York State
Assembly currently uses Open Source programs such as Mozilla for
email, Firefox for web browsing, and WebCal for electronic calendars.
The Assembly's use of this software has led to significant cost
savings for the Assembly's operating budget. Once an Open Source
program is downloaded with its source code, anyone can view the
instructions, modify the program, and redistribute it with the same
freedoms". A 2006 report authorized by John Irons and Carl Malamud
from the Center for American Progress details how Open Source software
provides a high social value amongst the group, but a relatively low
economic incentive for individual developer"s. By allowing open access
to the technology's source code, Open Source software enhances a
broader dissemination of knowledge and ideas Although large
corporations such as IBM develop and use Open Source programs, most
Open Source software is written by individuals volunteering from home.
Currently, corporations and self-employed individuals who create Open
Source technology are eligible for a tax deduction for their software
development costs. The vast majority of Open Source software creators
(individual volunteers), however, do not receive this tax credit. This
legislation creates a similar tax credit incentive for individuals who
currently have no means to deduct these expenses. The tax credit would
apply only to out-of-pocket expenses such as Internet hosting and
depreciated cost of capital expenses such as computers and education.
The increased incentive for individuals would attract more Open Source
developers to New York State, resulting in job creation and a
reinvigoration of our State's technology sector. Additionally, an
influx of Open Source software would lower operating costs for larger
agencies (such as the Assembly), by providing usable software without
charge.

LEGISLATIVE HISTORY:

2009-10: S.4046 (Squadron) - Finance, A.6380 (Bing) - Ways and Means.


2012:Referred to Investigations and Government Operations

FISCAL IMPLICATIONS:

To be determined.

LOCAL FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act will take effect immediately and shall apply to taxable years
beginning on and after the first of January next succeeding the date
on which it shall have become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 173--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. SQUADRON, HASSELL-THOMPSON -- read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations  and  Government Operations -- recommitted to the Committee on
  Investigations and Government Operations  in  accordance  with  Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to providing a  tax  credit  to
  individuals  for  up to two hundred dollars of expenses related to the
  development and posting of an open source or free license program

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

  Section 1. Subsections (yy) and (zz) of section 606 of the tax law, as
relettered  by section 5 of part H of chapter 1 of the laws of 2003, are
relettered subsections (yyy) and (zzz) and  a  new  subsection  (yy)  is
added to read as follows:
  (YY)  OPEN  SOURCE  OR  FREE  LICENSE  CREDIT. (1) A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST
THE TAX IMPOSED PURSUANT TO SECTION SIX HUNDRED ONE OF  THIS  PART.  THE
AMOUNT  OF  CREDIT  SHALL  EQUAL  UP  TO  TWENTY  PERCENT  OF  THE TOTAL
OUT-OF-POCKET EXPENSES OF THE TAXPAYER USED  IN  THE  DEVELOPMENT  OF  A
PROGRAM  THAT  IS  PROVIDED  TO  THE PUBLIC UNDER AN OPEN SOURCE OR FREE
SOFTWARE LICENSE, UP TO A MAXIMUM OF TWO HUNDRED DOLLARS.
  (2) FOR THE PURPOSES OF THIS SUBSECTION, A PROGRAM SHALL  QUALIFY  FOR
THE  CREDIT PROVIDED BY THIS SUBSECTION IF THE CODE FOR SUCH PROGRAM HAS
BEEN RELEASED UNDER AN OPEN SOURCE LICENSE RECOGNIZED BY THE OPEN SOURCE
INITIATIVE, OR HAS BEEN RELEASED UNDER A FREE  SOFTWARE  LICENSE  RECOG-
NIZED BY THE FREE SOFTWARE FOUNDATION.
  (3) THIS SUBSECTION SHALL APPLY TO ANY INDIVIDUAL FOR ANY TAXABLE YEAR
ONLY IF SUCH INDIVIDUAL ELECTS TO HAVE THIS SECTION APPLY FOR SUCH TAXA-
BLE YEAR. AN ELECTION TO HAVE THIS SECTION APPLY MAY NOT BE MADE FOR ANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00298-02-4

S. 173--A                           2

TAXABLE YEAR IF SUCH ELECTION IS IN EFFECT WITH RESPECT TO SUCH INDIVID-
UAL FOR ANY OTHER TAXABLE YEAR AND PERTAINING TO THE SAME PROGRAM OR ANY
PORTION THEREOF.
  (4)  IN  NO  EVENT  SHALL  THE  AMOUNT  OF THE CREDIT PROVIDED BY THIS
SUBSECTION EXCEED THE TAXPAYER'S TAX FOR THE TAXABLE YEAR.  HOWEVER,  IF
THE AMOUNT OF CREDIT OTHERWISE ALLOWABLE PURSUANT TO THIS SUBSECTION FOR
ANY TAXABLE YEAR RESULTS IN SUCH EXCESS AMOUNT, ANY AMOUNT OF CREDIT 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.
  S 2. This act shall take effect immediately and shall apply to taxable
years  beginning  on  and after the first of January next succeeding the
date on which it shall have become a law.

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