senate Bill S1906A

2013-2014 Legislative Session

Establishes a small business tax credit

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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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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 07, 2014 print number 1906a
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)

S1906 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §§606 & 210, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7650

S1906 - Bill Texts

view summary

Establishes a small business tax credit.

view sponsor memo
BILL NUMBER:S1906

TITLE OF BILL: An act to amend the tax law, in relation to establishing
a small business tax credit

PURPOSE: To create a small business personal income tax credit and
reduce corporate franchise taxes for small businesses to encourage
growth among this state's small businesses to help spur job creation.

SUMMARY OF PROVISIONS: 20% TAX CUT FOR SMALL BUSINESSES: This bill would
provide small businesses with a corporate tax rate cut from 6.5 percent
to 5.2 percent - a 20 percent reduction. The corporate tax rate for
small business applies to those businesses with entire net income base
of not more than 5290,000. It would also virtually eliminate the fixed
dollar minimum for small businesses (those businesses with New York
receipts of not more than $1 million). This reduction will save small
businesses S20 million in SFY 2012-13 and $49 million on an annual
basis.

SMALL BUSINESS JOBS CREDIT: Provides a credit of 10% of business income
for about 800,000 small businesses that have at least one employee, have
business income of less than $250,000, and that file under the personal
income tax. This tax credit would save small businesses $80 million
annually.

JUSTIFICATION: This bill will deliver tax relief to small businesses to
make New York State more economically competitive to encourage our small
businesses to stay and expand.

LEGISLATIVE HISTORY: 2012: S.7650 Passed Senate

FISCAL IMPLICATIONS: This bill will save New York businesses $20 million
this year.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  1906

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  SKELOS -- 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 establishing a  small  busi-
  ness tax credit

  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 (vv) to read as follows:
  (VV)  SMALL  BUSINESS  TAX  CREDIT.  (1) GENERAL. A QUALIFIED TAXPAYER
SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE  EQUAL
TO SIX AND SIXTY-FIVE HUNDREDTHS PERCENT OF QUALIFIED BUSINESS INCOME.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM:
  (A)  "QUALIFIED TAXPAYER" SHALL MEAN A SOLE PROPRIETOR WHO EMPLOYS ONE
OR MORE PERSONS AND WHO HAS NET BUSINESS INCOME OF LESS THAN TWO HUNDRED
FIFTY THOUSAND DOLLARS.
  (B) "QUALIFIED BUSINESS INCOME" SHALL MEAN TEN PERCENT OF THE BUSINESS
INCOME OF THE TAXPAYER AS DEFINED IN THE LAWS OF THE UNITED STATES.
  (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON.
  S  2.  Subparagraph  (iv) of paragraph (a) of subdivision 1 of section
210 of the tax law, as amended by section 2 of part N of chapter  60  of
the laws of 2007, is amended to read as follows:
  (iv)  for taxable years beginning on or after January first, two thou-
sand seven AND ENDING BEFORE JANUARY FIRST, TWO  THOUSAND  FOURTEEN,  if
the  entire net income base is not more than two hundred ninety thousand
dollars the amount shall be six and one-half percent of the  entire  net

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05836-01-3

S. 1906                             2

income  base;  if  the  entire  net income base is more than two hundred
ninety thousand dollars but  not  over  three  hundred  ninety  thousand
dollars  the  amount  shall  be  the  sum of (1) eighteen thousand eight
hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
the entire net income base over two hundred ninety thousand dollars  but
not  over three hundred ninety thousand dollars and (3) four and thirty-
five hundredths percent of the excess of the entire net income base over
three hundred fifty thousand dollars but not over three  hundred  ninety
thousand dollars;
  S  3.  Paragraph (a) of subdivision 1 of section 210 of the tax law is
amended by adding a new subparagraph (vii) to read as follows:
  (VII) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND FOURTEEN, IF THE ENTIRE NET  INCOME  BASE  IS  NOT  MORE  THAN  TWO
HUNDRED  NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FIVE AND TWO-TENTHS
PERCENT OF THE ENTIRE NET INCOME BASE; IF THE ENTIRE NET INCOME BASE  IS
MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) FIFTEEN THOU-
SAND EIGHTY DOLLARS, (2) NINE AND SEVENTY-FIVE ONE-HUNDREDTHS PERCENT OF
THE  EXCESS  OF THE ENTIRE NET INCOME BASE OVER TWO HUNDRED NINETY THOU-
SAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND  (3)
SEVEN AND ONE-TENTHS PERCENT OF THE EXCESS OF THE ENTIRE NET INCOME BASE
OVER  THREE  HUNDRED  FIFTY  THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS;
  S 4. The opening paragraph of  subparagraph  4  of  paragraph  (d)  of
subdivision  1  of  section 210 of the tax law, as added by section 2 of
part AA-1 of chapter 57 of the laws of  2008,  is  amended  to  read  as
follows:
  Notwithstanding subparagraphs one and two of this paragraph, for taxa-
ble  years  beginning  on or after January first, two thousand eight AND
ENDING  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  FOURTEEN,   the   amount
prescribed  by this paragraph for New York S corporations will be deter-
mined in accordance with the following table:
  S 5. Subparagraph 5 of paragraph (d) of subdivision 1 of  section  210
of the tax law is renumbered subparagraph 6.
  S  6.  Paragraph (d) of subdivision 1 of section 210 of the tax law is
amended by adding a new subparagraph 5 to read as follows:
  (5) NOTWITHSTANDING SUBPARAGRAPHS ONE AND TWO OF THIS  PARAGRAPH,  FOR
TAXABLE  YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND FOUR-
TEEN, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH  FOR  NEW  YORK  S  CORPO-
RATIONS WILL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE:               THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000                                      $1
MORE THAN $100,000 BUT NOT OVER $250,000                    $1
MORE THAN $250,000 BUT NOT OVER $500,000                    $1
MORE THAN $500,000 BUT NOT OVER $1,000,000                  $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000                $1,000
MORE THAN $5,000,000 BUT NOT OVER $25,000,000               $3,000
OVER $25,000,000                                            $4,500
OTHERWISE  THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED IN
ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE:               THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000                                      $1
MORE THAN $100,000 BUT NOT OVER $250,000                    $1
MORE THAN $250,000 BUT NOT OVER $500,000                    $1
MORE THAN $500,000 BUT NOT OVER $1,000,000                  $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000                $1,500

S. 1906                             3

MORE THAN $5,000,000 BUT NOT OVER $25,000,000               $3,500
OVER $25,000,000                                            $5,000
FOR  PURPOSES  OF  THIS  PARAGRAPH,  NEW  YORK RECEIPTS ARE THE RECEIPTS
COMPUTED IN ACCORDANCE WITH SUBPARAGRAPH TWO OF PARAGRAPH (A) OF  SUBDI-
VISION THREE OF THIS SECTION FOR THE TAXABLE YEAR.
  S  7.  Subparagraph 6 of paragraph (d) of subdivision 1 of section 210
of the tax law, as added by section 3 of part C of  chapter  56  of  the
laws  of  2011 and as renumbered by section five of this act, is amended
to read as follows:
  (6) For taxable years beginning on or after January first,  two  thou-
sand  twelve and before January first, two thousand fifteen, the amounts
prescribed in subparagraphs one and [four] FIVE of this paragraph as the
fixed dollar minimum tax for an eligible qualified New York manufacturer
shall be one-half of the amounts  stated  in  those  subparagraphs.  For
purposes  of  this  subparagraph,  the term "eligible qualified New York
manufacturer" shall have the same meaning as  in  subparagraph  (vi)  of
paragraph (a) of this subdivision.
  S  8.  This  act shall take effect immediately; provided that sections
one and seven of this act shall apply to taxable years beginning  on  or
after January 1, 2014.

S1906A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §§606 & 210, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7650

S1906A (ACTIVE) - Bill Texts

view summary

Establishes a small business tax credit.

view sponsor memo
BILL NUMBER:S1906A

TITLE OF BILL: An act to amend the tax law, in relation to
establishing a small business tax credit

PURPOSE:

To create a small business personal income tax credit and reduce
corporate franchise taxes for small businesses to encourage growth
among this state's small businesses to help spur job creation.

SUMMARY OF PROVISIONS:

This bill would provide small businesses with a corporate tax rate cut
from 6.5 percent to 5.2 percent - a 20 percent reduction. The
corporate tax rate for small business applies to those businesses with
an entire net income base of not more than $290,000. It would also
virtually eliminate the fixed dollar minimum for small businesses
(those businesses with New York receipts of not more than $1 million).
This reduction will save small businesses $20 million in SFY 2014-15
and $49 million on an annual basis.

The Small Business Job Credit provides a credit of 10 percent of
business income for about 800,000 small businesses that have at least
one employee, have business income of less than $250,000, and that
file under the personal income tax. This tax credit would save small
businesses $80 million annually.

JUSTIFICATION:

This bill will deliver tax relief to small businesses to make New York
State more economically competitive to encourage small businesses to
stay in the state and expand.

LEGISLATIVE HISTORY:

2012: S.7650 Passed Senate;
2013 - S.1906 - Referred to Senate Committee on Investigations and
Government Operations

FISCAL IMPLICATIONS:

This bill will save New York businesses millions of dollars each year.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                 1906--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  SKELOS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment 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 establishing a small busi-
  ness tax credit

  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 (u) to read as follows:
  (U) SMALL BUSINESS TAX CREDIT. (1) GENERAL. A QUALIFIED TAXPAYER SHALL
BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO SIX
AND SIXTY-FIVE HUNDREDTHS PERCENT OF QUALIFIED BUSINESS INCOME.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM:
  (A) "QUALIFIED TAXPAYER" SHALL MEAN A SOLE PROPRIETOR WHO EMPLOYS  ONE
OR MORE PERSONS AND WHO HAS NET BUSINESS INCOME OF LESS THAN TWO HUNDRED
FIFTY THOUSAND DOLLARS.
  (B) "QUALIFIED BUSINESS INCOME" SHALL MEAN TEN PERCENT OF THE BUSINESS
INCOME OF THE TAXPAYER AS DEFINED IN THE LAWS OF THE UNITED STATES.
  (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON.
  S 2. Subparagraph (iv) of paragraph (a) of subdivision  1  of  section
210  of  the tax law, as amended by section 2 of part N of chapter 60 of
the laws of 2007, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05836-02-4

S. 1906--A                          2

  (iv) for taxable years beginning on or after January first, two  thou-
sand seven AND ENDING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, if the
entire  net  income  base  is  not more than two hundred ninety thousand
dollars the amount shall be six and one-half percent of the  entire  net
income  base;  if  the  entire  net income base is more than two hundred
ninety thousand dollars but  not  over  three  hundred  ninety  thousand
dollars  the  amount  shall  be  the  sum of (1) eighteen thousand eight
hundred fifty dollars, (2) seven and one-tenth percent of the excess  of
the  entire net income base over two hundred ninety thousand dollars but
not over three hundred ninety thousand dollars and (3) four and  thirty-
five hundredths percent of the excess of the entire net income base over
three  hundred  fifty thousand dollars but not over three hundred ninety
thousand dollars;
  S 3. Paragraph (a) of subdivision 1 of section 210 of the tax  law  is
amended by adding a new subparagraph (viii) to read as follows:
  (VIII)  FOR  TAXABLE  YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, IF THE ENTIRE NET INCOME BASE IS  NOT  MORE  THAN  TWO
HUNDRED  NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FIVE AND TWO-TENTHS
PERCENT OF THE ENTIRE NET INCOME BASE; IF THE ENTIRE NET INCOME BASE  IS
MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) FIFTEEN THOU-
SAND EIGHTY DOLLARS, (2) NINE AND SEVENTY-FIVE ONE-HUNDREDTHS PERCENT OF
THE  EXCESS  OF THE ENTIRE NET INCOME BASE OVER TWO HUNDRED NINETY THOU-
SAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND  (3)
SEVEN AND ONE-TENTHS PERCENT OF THE EXCESS OF THE ENTIRE NET INCOME BASE
OVER  THREE  HUNDRED  FIFTY  THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS;
  S 4. The opening paragraph of  subparagraph  4  of  paragraph  (d)  of
subdivision  1  of  section 210 of the tax law, as added by section 2 of
part AA-1 of chapter 57 of the laws of  2008,  is  amended  to  read  as
follows:
  Notwithstanding subparagraphs one and two of this paragraph, for taxa-
ble  years  beginning  on or after January first, two thousand eight AND
ENDING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, the amount prescribed
by this paragraph for New York S  corporations  will  be  determined  in
accordance with the following table:
  S  5.  Subparagraphs  5  and  6  of  paragraph (d) of subdivision 1 of
section 210 of the tax law are renumbered subparagraphs 6 and 7.
  S 6. Paragraph (d) of subdivision 1 of section 210 of the tax  law  is
amended by adding a new subparagraph 5 to read as follows:
  (5)  NOTWITHSTANDING  SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH, FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN,
THE AMOUNT PRESCRIBED BY THIS PARAGRAPH FOR NEW YORK S CORPORATIONS WILL
BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE:               THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000                                      $1
MORE THAN $100,000 BUT NOT OVER $250,000                    $1
MORE THAN $250,000 BUT NOT OVER $500,000                    $1
MORE THAN $500,000 BUT NOT OVER $1,000,000                  $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000                $1,000
MORE THAN $5,000,000 BUT NOT OVER $25,000,000               $3,000
OVER $25,000,000                                            $4,500
OTHERWISE THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED  IN
ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE:               THE FIXED DOLLAR MINIMUM TAX IS:

S. 1906--A                          3

NOT MORE THAN $100,000                                      $1
MORE THAN $100,000 BUT NOT OVER $250,000                    $1
MORE THAN $250,000 BUT NOT OVER $500,000                    $1
MORE THAN $500,000 BUT NOT OVER $1,000,000                  $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000                $1,500
MORE THAN $5,000,000 BUT NOT OVER $25,000,000               $3,500
OVER $25,000,000                                            $5,000
FOR  PURPOSES  OF  THIS  PARAGRAPH,  NEW  YORK RECEIPTS ARE THE RECEIPTS
COMPUTED IN ACCORDANCE WITH SUBPARAGRAPH TWO OF PARAGRAPH (A) OF  SUBDI-
VISION THREE OF THIS SECTION FOR THE TAXABLE YEAR.
  S  7.  Subparagraph 6 of paragraph (d) of subdivision 1 of section 210
of the tax law, as added by section 3 of part C of  chapter  56  of  the
laws  of  2011 and as renumbered by section five of this act, is amended
to read as follows:
  (6) For taxable years beginning on or after January first,  two  thou-
sand  twelve and before January first, two thousand fifteen, the amounts
prescribed in subparagraphs one and [four] FIVE of this paragraph as the
fixed dollar minimum tax for an eligible qualified New York manufacturer
shall be one-half of the amounts  stated  in  those  subparagraphs.  For
purposes  of  this  subparagraph,  the term "eligible qualified New York
manufacturer" shall have the same meaning as  in  subparagraph  (vi)  of
paragraph (a) of this subdivision.
  S  8.  This  act shall take effect immediately; provided that sections
one and seven of this act shall apply to taxable years beginning  on  or
after January 1, 2015.

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