senate Bill S2021A

2013-2014 Legislative Session

Provides an exemption from the tax on sales and the compensating use tax for certain equipment purchased by companies located in college incubator facilities

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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
Feb 19, 2014 print number 2021a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
returned to senate
died in assembly
Jun 12, 2013 referred to ways and means
delivered to assembly
passed senate
Jun 11, 2013 ordered to third reading cal.1232
reported and committed to rules
May 21, 2013 reported and committed to finance
Jan 09, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

view additional co-sponsors

S2021 - Bill Details

See Assembly Version of this Bill:
A1929A
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §1115, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3175A, A5027A
2009-2010: S1997, A2815

S2021 - Bill Texts

view summary

Provides an exemption from the tax on sales and the compensating use tax for equipment, with a purchase price of five hundred dollars or greater, purchased by companies located in college incubator facilities or incubator facilities funded by the state.

view sponsor memo
BILL NUMBER:S2021

TITLE OF BILL: An act to amend the tax law, in relation to providing an
exemption from the tax on sales and the compensating use tax for certain
equipment purchased by companies located in academic incubator facili-
ties

PURPOSE: This legislation is consistent with our state's general
efforts to encourage the creation and growth of small business. Compa-
nies in incubators, by their nature, are small and have limited
resources. This bill alleviates a small but significant tax burden on
these firms by exempting them from sales tax on equipment that costs
$500 or more.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 1115 of the tax law which provides
companies that are located in an academic incubator facility with a
sales tax exemption for the purchase of equipment with a price of $500
or more, and provides for the definition of an academic incubator.

JUSTIFICATION: During the last decade, one of the most effective state
tools used to encourage job growth and creation has been its investment
in high technology incubators. Incubator facilities provide researchers
and entrepreneurs with the physical space and support staff necessary to
help transfer the technology developed in the laboratory into a commer-
cial product of value.

Efforts to develop research ides into viable products are usually done
with limited resources. Costs of operation must be kept at a minimum to
allow researchers the opportunity to advance their theories. Incubators
certainly provide low cost office space, however, rents are not the only
expense that these businesses incur. Equipment costs can also be a major
impediment to the success of the business. To help reduce this cost this
bill would exempt business. To help rescue this cost this bill would
exempt businesses located in incubators from sales tax on equipment
purchases. Taxing this equipment is contrary to the general concept of
incubators, which is to reduce the cost associated with a start-up firm
struggling to develop its ides/research into a product.

The amendment clarifies that the exemption is only for those companies
located in an academic incubator facility and the equipment be used in
the incubator facility.

LEGISLATIVE HISTORY: 2011-12 S.3175A/A.5027A; 2009-2010 S.1997; 2007-08
S.942B; 2005-06 S.1415A; 2003-04 S.485; 2001-02 S.2341.

FISCAL IMPLICATIONS: Implementation: There would be some loss of state
revenue.

EFFECTIVE DATE: This act shall take effect September 1, 2013.

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

    S. 2021                                                  A. 1929

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

IN  SENATE  --  Introduced  by  Sens.  LAVALLE, KENNEDY, LARKIN, O'MARA,
  RANZENHOFER -- read twice and ordered printed, and when printed to  be
  committed to the Committee on Investigations and Government Operations

IN  ASSEMBLY  --  Introduced by M. of A. SCHIMMINGER, SWEENEY, COLTON --
  Multi-Sponsored by -- M. of A. KOLB, MAGEE -- read once  and  referred
  to the Committee on Ways and Means

AN  ACT to amend the tax law, in relation to providing an exemption from
  the tax on sales and the compensating use tax  for  certain  equipment
  purchased by companies located in academic incubator facilities

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

  Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
by adding a new paragraph 44 to read as follows:
  (44) EQUIPMENT WITH A PURCHASE PRICE OF FIVE HUNDRED DOLLARS OR GREAT-
ER  PURCHASED  BY  ANY  COMPANY LOCATED IN AN INCUBATOR FACILITY THAT IS
ASSOCIATED WITH A COLLEGE, AS DEFINED IN SUBDIVISION TWO OF SECTION  TWO
OF  THE  EDUCATION  LAW,  OR AN INCUBATOR FACILITY THAT IS FUNDED BY THE
STATE. SUCH EQUIPMENT MUST BE USED  DIRECTLY  AND  PREDOMINATELY  WITHIN
SUCH INCUBATOR FACILITY.
  S 2. This act shall take effect September 1, 2013.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03803-01-3

Co-Sponsors

view additional co-sponsors

S2021A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A1929A
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §1115, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3175A, A5027A
2009-2010: S1997, A2815

S2021A (ACTIVE) - Bill Texts

view summary

Provides an exemption from the tax on sales and the compensating use tax for equipment, with a purchase price of five hundred dollars or greater, purchased by companies located in college incubator facilities or incubator facilities funded by the state.

view sponsor memo
BILL NUMBER:S2021A

TITLE OF BILL: An act to amend the tax law, in relation to providing
an exemption from the tax on sales and the compensating use tax for
certain equipment purchased by companies located in academic incubator
facilities

PURPOSE:

This legislation is consistent with our state's general efforts to
encourage the creation and growth of small business. Companies in
incubators, by their nature, are small and have limited resources.
This bill alleviates a small but significant tax burden on these firms
by exempting them from sales tax on equipment that costs $500 or more.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 1115 of the tax law which
provides companies that are located in an academic incubator facility
with a sales tax exemption for the purchase of equipment with a price
of $500 or more, and provides for the definition of an academic
incubator.

JUSTIFICATION:

During the last decade, one of the most effective state tools used to
encourage job growth and creation has been its investment in high
technology incubators. Incubator facilities provide researchers and
entrepreneurs with the physical space and support staff necessary to
help transfer the technology developed in the laboratory into a
commercial product of value.

Efforts to develop research ides into viable products are usually done
with limited resources. Costs of operation must be kept at a minimum
to allow researchers the opportunity to advance their theories.
Incubators certainly provide low cost office space, however, rents are
not the only expense that these businesses incur. Equipment costs can
also be a major impediment to the success of the business. To help
reduce this cost this bill would exempt business. To help rescue this
cost this bill would exempt businesses located in incubators from
sales tax on equipment purchases. Taxing this equipment is contrary to
the general concept of incubators, which is to reduce the cost
associated with a start-up firm struggling to develop its
ides/research into a product.

The amendment clarifies that the exemption is only for those companies
located in an academic incubator facility and the equipment be used in
the incubator facility.

LEGISLATIVE HISTORY:

2011-12 S.3175A/A.5027A;
2009-2010 S.1997;
2007-08 S.942B;
2005-06 S.1415A;
2003-04 S.485;
2001-02 S.2341.


FISCAL IMPLICATIONS:

Implementation: There would be some loss of state revenue.

EFFECTIVE DATE:

This act shall take effect September 1, 2014.

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

    S. 2021--A                                            A. 1929--A

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

IN  SENATE  --  Introduced  by  Sens.  LAVALLE, GOLDEN, KENNEDY, LARKIN,
  O'MARA, RANZENHOFER, VALESKY -- read twice and  ordered  printed,  and
  when  printed  to  be committed to the Committee on Investigations and
  Government Operations -- recommitted  to  the  Committee  on  Investi-
  gations  and  Government  Operations in accordance with Senate Rule 6,
  sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

IN  ASSEMBLY  --  Introduced by M. of A. SCHIMMINGER, SWEENEY, COLTON --
  Multi-Sponsored by -- M. of A. KOLB, MAGEE -- read once  and  referred
  to  the Committee on Ways and Means -- recommitted to the Committee on
  Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the tax law, in relation to providing an exemption  from
  the  tax  on  sales and the compensating use tax for certain equipment
  purchased by companies located in academic incubator facilities

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

  Section  1.  Subdivision (a) of section 1115 of the tax law is amended
by adding a new paragraph 44 to read as follows:
  (44) EQUIPMENT WITH A PURCHASE PRICE OF FIVE HUNDRED DOLLARS OR GREAT-
ER PURCHASED BY ANY COMPANY LOCATED IN AN  INCUBATOR  FACILITY  THAT  IS
ASSOCIATED  WITH A COLLEGE, AS DEFINED IN SUBDIVISION TWO OF SECTION TWO
OF THE EDUCATION LAW, OR AN INCUBATOR FACILITY THAT  IS  FUNDED  BY  THE
STATE.  SUCH  EQUIPMENT  MUST  BE USED DIRECTLY AND PREDOMINATELY WITHIN
SUCH INCUBATOR FACILITY.
  S 2. This act shall take effect September 1, 2014.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03803-02-4

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