senate Bill S7196A

Vetoed By Governor
2013-2014 Legislative Session

Relates to taxpayers filing under article twenty-two of the tax law to include for the purposes of the tax factor all business income attributable to a QEZE business

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Archive: Last Bill Status - Vetoed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Vetoed by Governor

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Actions

view actions (17)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 17, 2014 vetoed memo.566
Dec 05, 2014 delivered to governor
Jun 19, 2014 returned to senate
passed assembly
ordered to third reading rules cal.471
substituted for a9220c
Jun 18, 2014 referred to ways and means
delivered to assembly
passed senate
ordered to third reading cal.1492
committee discharged and committed to rules
Jun 06, 2014 print number 7196b
amend and recommit to finance
Jun 02, 2014 reported and committed to finance
May 19, 2014 print number 7196a
amend and recommit to investigations and government operations
May 05, 2014 referred to investigations and government operations

Votes

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Jun 18, 2014 - Rules committee Vote

S7196B
17
5
committee
17
Aye
5
Nay
2
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show committee vote details

Jun 2, 2014 - Investigations and Government Operations committee Vote

S7196A
7
0
committee
7
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: Jun 2, 2014

aye wr (2)

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

S7196 - Bill Details

See Assembly Version of this Bill:
A9220B
Law Section:
Tax Law
Laws Affected:
Amd §16, Tax L

S7196 - Bill Texts

view summary

Relates to taxpayers filing under article twenty-two of the tax law to include for the purposes of the tax factor all business income attributable to a QEZE business.

view sponsor memo
BILL NUMBER:S7196

TITLE OF BILL:
An act
to amend the tax law, in relation to QEZE tax reduction credits

PURPOSE OR GENERAL IDEA OF BILL: To encourage the
growth of New York
State manufacturing by allowing the inclusion of all income derived
from a business, whether producing for domestic production or
producing or export, for the purposes of claiming the QEZE tax credit.

SUMMARY OF PROVISIONS: Section 1 - Paragraph 1 of
subdivision (f) of
section 16 of the tax law, as amended by section 14 of part CC of
chapter 85 of the laws of 2002, is amended to include all business
income as income allotted for the purposes of calculating the tax
factor under article 22 of this chapter.

Section 2 - This act shall take effect immediately and shall be deemed
to apply to taxable years beginning on or after January 1, 2014.

JUSTIFICATION: The QEZE tax credit was designed to
encourage
employment in New York State. An allocation between New York and
non-New York income was not included in the original statute. The
allocation was developed out of thin air by the Tax Department and
serves no purpose because the tax credit is designed to encourage
employment in New York in manufacturing, not to encourage sales of
manufactured products in New York. In fact, our economy benefits when
New York manufacturers are able to sell overseas. The Tax
Department's interpretation of the QEZE discourages manufacturing for
export which is contrary to sound economic policy.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: There will be fiscal
implications to New York
State in regard to tax revenues collected from QEZE approved
businesses. It should be noted, however, that no such revenues have
been collected yet as the matter is currently in litigation. The
legal challenge is on the ground that the original legislation did
not include any distinction between income from domestic sales vs.
income from overseas sales.

EFFECTIVE DATE: Retroactive to January 1, 2014.

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

                                  7196

                            I N  S E N A T E

                               May 5, 2014
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN ACT to amend the tax law, in relation to QEZE tax reduction credits

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

  Section 1. Paragraph 1 of subdivision (f) of section  16  of  the  tax
law,  as  amended  by section 14 of part CC of chapter 85 of the laws of
2002, is amended to read as follows:
  (1) General. The tax factor shall be, in the case of article nine-A of
this chapter, the larger of the amounts of tax determined for the  taxa-
ble  year under paragraphs (a) and (c) of subdivision one of section two
hundred ten of such article. The tax factor shall be,  in  the  case  of
article  twenty-two  of this chapter, the tax determined for the taxable
year under subsections (a) through (d) of section  six  hundred  one  of
such article. FOR THE PURPOSES OF CALCULATING THE TAX FACTOR UNDER ARTI-
CLE TWENTY-TWO OF THIS CHAPTER, INCOME ALLOCATED TO NEW YORK STATE SHALL
INCLUDE  ALL  BUSINESS  INCOME.  The tax factor shall be, in the case of
article thirty-two of this chapter, the larger of  the  amounts  of  tax
determined  for  the taxable year under subsection (a) and paragraph two
of subsection (b) of section fourteen hundred fifty-five of  such  arti-
cle.  The  tax  factor  shall be, in the case of article thirty-three of
this chapter, the larger of the amounts of tax determined for the  taxa-
ble  year  under  paragraphs one and three of subdivision (a) of section
fifteen hundred two of such article.
  S 2. Paragraph 1 of subdivision (f) of section 16 of the tax  law,  as
amended  by  section  34 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
  (1) General. The tax factor shall be, in the case of article nine-A of
this chapter, the amount of tax determined for the  taxable  year  under
paragraph  (a)  of  subdivision  one  of section two hundred ten of such
article. The tax factor shall be, in the case of article  twenty-two  of
this  chapter, the tax determined for the taxable year under subsections
(a) through (d) of section six hundred one of such  article.    FOR  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14537-02-4

S. 7196                             2

PURPOSES  OF CALCULATING THE TAX FACTOR UNDER ARTICLE TWENTY-TWO OF THIS
CHAPTER, INCOME ALLOCATED TO NEW YORK STATE SHALL INCLUDE  ALL  BUSINESS
INCOME.  The tax factor shall be, in the case of article thirty-three of
this  chapter, the larger of the amounts of tax determined for the taxa-
ble year under paragraphs one and three of subdivision  (a)  of  section
fifteen hundred two of such article.
  S  3.  This  act shall take effect immediately; provided, however that
section one of this act shall be deemed to apply to taxable years begin-
ning on or after January 1, 2014; provided further that section  two  of
this  act  shall  take effect on the same date and in the same manner as
section 34 of part A of chapter 59 of the laws of 2014 takes effect.

S7196A - Bill Details

See Assembly Version of this Bill:
A9220B
Law Section:
Tax Law
Laws Affected:
Amd §16, Tax L

S7196A - Bill Texts

view summary

Relates to taxpayers filing under article twenty-two of the tax law to include for the purposes of the tax factor all business income attributable to a QEZE business.

view sponsor memo
BILL NUMBER:S7196A

TITLE OF BILL:
An act
to amend the tax law, in relation to QEZE tax reduction credits

PURPOSE OR GENERAL IDEA OF BILL: To encourage the
growth of New York
State manufacturing by allowing the inclusion of all income derived
from a business for the purposes of claiming the QEZE tax credit.

SUMMARY OF PROVISIONS:

Section 1 - Paragraph 1 of subdivision (f) of section 16 of the Tax
Law, as amended by section 14 of part CC of Chapter 85 of the Laws of
2002, is amended to include all business income as
income allotted for the purposes of calculating the tax factor under
article 22 of this chapter.

Section 2 - This act shall take effect immediately.

JUSTIFICATION: The QEZE tax credit was designed to
encourage
employment in New York State. An allocation between New York and
non-New York income was not included in the original statute. The
allocation serves no purpose because the tax credit is designed to
encourage employment in New York in manufacturing, not to encourage
sales of manufactured products in New York. In fact, our economy
benefits when New York manufacturers are able to sell overseas. The
Tax Department interpretation of the QEZE discourages manufacturing
for export which is contrary to sound economic policy.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: There will be fiscal
implications to New York
State in regard to tax revenues collected from QEZE approved
businesses.

EFFECTIVE DATE:

Immediately.

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

                                 7196--A

                            I N  S E N A T E

                               May 5, 2014
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government  Operations  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the tax law, in relation to QEZE tax reduction credits

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

  Section  1.  Paragraph  1  of subdivision (f) of section 16 of the tax
law, as amended by section 14 of part CC of chapter 85 of  the  laws  of
2002, is amended to read as follows:
  (1) General. The tax factor shall be, in the case of article nine-A of
this  chapter, the larger of the amounts of tax determined for the taxa-
ble year under paragraphs (a) and (c) of subdivision one of section  two
hundred  ten  of  such  article. The tax factor shall be, in the case of
article twenty-two of this chapter, the tax determined for  the  taxable
year  under  subsections  (a)  through (d) of section six hundred one of
such article. FOR THE PURPOSES OF CALCULATING THE TAX FACTOR UNDER ARTI-
CLE TWENTY-TWO OF THIS CHAPTER, INCOME ALLOCATED TO NEW YORK STATE SHALL
INCLUDE ALL BUSINESS INCOME. The tax factor shall be,  in  the  case  of
article  thirty-two  of  this  chapter, the larger of the amounts of tax
determined for the taxable year under subsection (a) and  paragraph  two
of  subsection  (b) of section fourteen hundred fifty-five of such arti-
cle. The tax factor shall be, in the case  of  article  thirty-three  of
this  chapter, the larger of the amounts of tax determined for the taxa-
ble year under paragraphs one and three of subdivision  (a)  of  section
fifteen hundred two of such article.
  S  2.  Paragraph 1 of subdivision (f) of section 16 of the tax law, as
amended by section 34 of part A of chapter 59 of the laws  of  2014,  is
amended to read as follows:
  (1) General. The tax factor shall be, in the case of article nine-A of
this  chapter,  the  amount of tax determined for the taxable year under
paragraph (a) of subdivision one of section  two  hundred  ten  of  such
article.  The  tax factor shall be, in the case of article twenty-two of
this chapter, the tax determined for the taxable year under  subsections

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14537-05-4

S. 7196--A                          2

(a)  through  (d)  of  section six hundred one of such article.  FOR THE
PURPOSES OF CALCULATING THE TAX FACTOR UNDER ARTICLE TWENTY-TWO OF  THIS
CHAPTER,  INCOME  ALLOCATED TO NEW YORK STATE SHALL INCLUDE ALL BUSINESS
INCOME.  The tax factor shall be, in the case of article thirty-three of
this chapter, the larger of the amounts of tax determined for the  taxa-
ble  year  under  paragraphs one and three of subdivision (a) of section
fifteen hundred two of such article.
  S 3. This act shall take effect immediately;  provided,  however  that
section  two  of  this act shall take effect on the same date and in the
same manner as section 34 of part A of chapter 59 of the  laws  of  2014
takes effect.

Co-Sponsors

S7196B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9220B
Law Section:
Tax Law
Laws Affected:
Amd §16, Tax L

S7196B (ACTIVE) - Bill Texts

view summary

Relates to taxpayers filing under article twenty-two of the tax law to include for the purposes of the tax factor all business income attributable to a QEZE business.

view sponsor memo
BILL NUMBER:S7196B

TITLE OF BILL: An act to amend the tax law, in relation to QEZE tax
reduction credits

PURPOSE OR GENERAL IDEA OF BILL: To encourage the growth of New York
State manufacturing by allowing the inclusion of all income derived
from a business for the purposes of claiming the QEZE tax credit.

SUMMARY OF PROVISIONS:

Section 1 - Paragraph 1 of subdivision (f) of section 16 of the Tax
Law, as amended by section 14 of part CC of Chapter 85 of the Laws of
2002, is amended to include all business income as income allotted for
the purposes of calculating the tax factor under article 22 of this
chapter.

Section 2 - This act shall take effect immediately.

JUSTIFICATION: The QEZE tax credit was designed to encourage
employment in New York State. An allocation between New York and
non-New York income was not included in the original statute. The
allocation serves no purpose because the tax credit is designed to
encourage employment in New York in manufacturing, not to encourage
sales of manufactured products in New York. In fact, our economy
benefits when New York manufacturers are able to sell overseas. The
Tax Department interpretation of the QEZE discourages manufacturing
for export which is contrary to sound economic policy.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: There will be fiscal implications to New York
State in regard to tax revenues collected from QEZE approved
businesses.

EFFECTIVE DATE: To take effect immediately.

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

                                 7196--B

                            I N  S E N A T E

                               May 5, 2014
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government  Operations  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to  said  committee  --  reported
  favorably  from  said  committee  and  committed  to  the Committee on
  Finance -- committee discharged, bill amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN ACT to amend the tax law, in relation to QEZE tax reduction credits

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

  Section 1. Paragraph 1 of subdivision (f) of section  16  of  the  tax
law,  as  amended  by section 14 of part CC of chapter 85 of the laws of
2002, is amended to read as follows:
  (1) General. The tax factor shall be, in the case of article nine-A of
this chapter, the larger of the amounts of tax determined for the  taxa-
ble  year under paragraphs (a) and (c) of subdivision one of section two
hundred ten of such article. The tax factor shall be,  in  the  case  of
article  twenty-two  of this chapter, the tax determined for the taxable
year under subsections (a) through (d) of section  six  hundred  one  of
such   article.   PROVIDED   HOWEVER,  TAXPAYERS  FILING  UNDER  ARTICLE
TWENTY-TWO OF THIS CHAPTER SHALL INCLUDE FOR THE  PURPOSES  OF  THE  TAX
FACTOR  ALL  BUSINESS  INCOME  ATTRIBUTABLE  TO A QEZE BUSINESS WHICH IS
TAXABLE UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER. The tax  factor  shall
be, in the case of article thirty-two of this chapter, the larger of the
amounts  of tax determined for the taxable year under subsection (a) and
paragraph two of subsection (b) of section fourteen  hundred  fifty-five
of  such  article. The tax factor shall be, in the case of article thir-
ty-three of this chapter, the larger of the amounts  of  tax  determined
for  the  taxable year under paragraphs one and three of subdivision (a)
of section fifteen hundred two of such article.
  S 2. Paragraph 1 of subdivision (f) of section 16 of the tax  law,  as
amended  by  section  34 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14537-07-4

S. 7196--B                          2

  (1) General. The tax factor shall be, in the case of article nine-A of
this chapter, the amount of tax determined for the  taxable  year  under
paragraph  (a)  of  subdivision  one  of section two hundred ten of such
article. The tax factor shall be, in the case of article  twenty-two  of
this  chapter, the tax determined for the taxable year under subsections
(a) through (d) of section six hundred one  of  such  article.  PROVIDED
HOWEVER, TAXPAYERS FILING UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL
INCLUDE FOR THE PURPOSES OF THE TAX FACTOR ALL BUSINESS INCOME ATTRIBUT-
ABLE  TO  A  QEZE  BUSINESS WHICH IS TAXABLE UNDER ARTICLE TWENTY-TWO OF
THIS CHAPTER. The tax factor shall be, in the case  of  article  thirty-
three  of  this chapter, the larger of the amounts of tax determined for
the taxable year under paragraphs one and three of  subdivision  (a)  of
section fifteen hundred two of such article.
  S  3.  This  act shall take effect immediately; provided, however that
section two of this act shall take effect on the same date  and  in  the
same  manner  as  section 34 of part A of chapter 59 of the laws of 2014
takes effect.

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