Senate Bill S5240

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

                                  5240

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 15, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 the  definition  of  "entire
  net income"

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

  Section 1. Paragraph (a) of subdivision 9 of section 208  of  the  tax
law is amended by adding a new subparagraph 19 to read as follows:
  (19)  ANY  OTHER  PROVISION  OF ANY OTHER LAW TO THE CONTRARY NOTWITH-
STANDING, FOR QUALIFIED PROPERTY AS DESCRIBED IN SECTION 167, 168 OR 179
OF THE INTERNAL REVENUE CODE WHICH WAS ACQUIRED BY AN ENTITY  DESIGNATED
AS A NEW YORK STATE INCUBATOR PURSUANT TO SECTION SIXTEEN-V OF THE URBAN
DEVELOPMENT  CORPORATION  ACT, OR BY A TAXPAYER WHICH IS OR WAS A TENANT
IN OR CLIENT OF SUCH NEW  YORK  STATE  INCUBATOR,  THAT  WAS  PLACED  IN
SERVICE  DURING  A  TAXABLE  YEAR  BEGINNING WITH THE FIRST TAXABLE YEAR
DURING WHICH THE TAXPAYER BECOMES A TENANT IN OR CLIENT OF  A  NEW  YORK
STATE  INCUBATOR  AND  ENDING  ON THE FIFTH TAXABLE YEAR THEREAFTER, THE
TAXPAYER MAY ELECT TO DEDUCT DEPRECIATION FOR SUCH PROPERTY IN AN AMOUNT
THAT IS EQUAL TO ONE HUNDRED PERCENT OF THE DEPRECIATION OF  THE  QUALI-
FIED  PROPERTY  FOR THE TOTAL OF ITS USEFUL LIFE THAT WOULD OTHERWISE BE
ALLOWED PURSUANT TO SUCH SECTION 167, 168 OR 179 OF THE INTERNAL REVENUE
CODE, PROVIDED THAT FOR ANY QUALIFIED PROPERTY FOR WHICH  SUCH  TAXPAYER
DOES  NOT MAKE SUCH ELECTION, THE TAXPAYER SHALL BE ALLOWED THE DEPRECI-
ATION DEDUCTION ALLOWED PURSUANT TO SECTION  167,  168  OR  179  OF  THE
INTERNAL  REVENUE  CODE. A TAXPAYER WHO ELECTS TO DEDUCT DEPRECIATION IN
AN AMOUNT THAT IS EQUAL TO ONE HUNDRED PERCENT OF THE COST  OF  PROPERTY
PLACED  IN  SERVICE  DURING  THE  TAXABLE  YEAR  MAY NOT CLAIM ANY OTHER
DEDUCTION ON THE COST OF SUCH PROPERTY. IF PROPERTY  ON  WHICH  DEPRECI-
ATION HAS BEEN TAKEN IS DISPOSED OF PRIOR TO THE END ON ITS USEFUL LIFE,
THE  TAXPAYER  SHALL  IN THE YEAR OF DISPOSITION ADD BACK THE DIFFERENCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11026-01-3
              

S. 5240                             2

BETWEEN THE DEPRECIATION TAKEN AND THE DEPRECIATION  ALLOWABLE  PURSUANT
TO SECTION 167 OF THE INTERNAL REVENUE CODE FOR EACH YEAR OF THE REMAIN-
ING USEFUL LIFE OF THE PROPERTY.
  S  2. Paragraph (o) of subdivision 9 of section 208 of the tax law, as
added by section 3 of part O3 of chapter 62 of  the  laws  of  2003,  is
amended to read as follows:
  (o) For taxable years beginning after December thirty-first, two thou-
sand  two,  in the case of qualified property described in paragraph two
of subsection k of section 168 of the internal revenue code, other  than
qualified  resurgence  zone  property described in paragraph (q) of this
subdivision, and other than qualified New  York  Liberty  Zone  property
described  in  paragraph  two  of  subsection  b of section 1400L of the
internal revenue code (without regard to clause (i) of subparagraph  (C)
of  such paragraph), which was placed in service on or after June first,
two thousand three, AND OTHER THAN PROPERTY ACQUIRED BY A NEW YORK STATE
INCUBATOR DESIGNATED PURSUANT TO SECTION SIXTEEN-V OF THE URBAN DEVELOP-
MENT CORPORATION ACT, OR BY A TAXPAYER WHICH IS OR WAS A CLIENT OF  SUCH
NEW  YORK  STATE INCUBATOR DURING A PERIOD OF FIVE TAXABLE YEARS, BEGIN-
NING WITH THE FIRST TAXABLE YEAR DURING WHICH  THE  TAXPAYER  BECOMES  A
TENANT  IN  OR CLIENT OF SUCH NEW YORK STATE INCUBATOR, a taxpayer shall
be allowed with respect to  such  property  the  depreciation  deduction
allowable under section 167 of the internal revenue code as such section
would have applied to such property had it been acquired by the taxpayer
on September tenth, two thousand one.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2013.