Assembly Actions -
Senate Actions - UPPERCASE
|Mar 23, 2016||
referred to investigations and government operations
Senate Bill S7091
2015-2016 Legislative Session
Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee
- In Committee Assembly
- On Floor Calendar Assembly
- Passed Assembly
- Delivered to Governor
- Signed By Governor
2015-S7091 (ACTIVE) - Details
- See Assembly Version of this Bill:
- Current Committee:
- Senate Investigations And Government Operations
- Law Section:
- Tax Law
- Laws Affected:
- Amd §§208, 210, 617, 631 & 632, Tax L
- Versions Introduced in Other Legislative Sessions:
2019-2020: S303, A3976
2021-2022: S999, A2195
2015-S7091 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7091 TITLE OF BILL : An act to amend the tax law, in relation to investment management services to a partnership or other entity PURPOSE : This bill aims to close the Carried Interest Tax Loophole on the State level by taxing the Carried Interest Income of hedgefund and private equity investors as traditional ordinary earned income. SUMMARY OF PROVISIONS : Section 1: of the bill amends the tax law by adding (a) (i) The term "investment income" means income, including capital gains in excess of capital losses, from investment capital, to the extent included in computing entire net income, less, any of capital gain included in federal taxable income that has to be recharacterized as business income Section 2: of the bill adds the net operating loss deduction allowed under section one hundred seventy-two of the internal revenue code shall for purposes of this Paragraph be determined taking into consideration the re-characterization of income
2015-S7091 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7091 I N S E N A T E March 23, 2016 ___________ Introduced by Sen. KLEIN -- 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 investment management services to a partnership or other entity THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (a) of subdivision 6 of section 208 of the tax law, as amended by section 5 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (a) (i) The term "investment income" means income, including capital gains in excess of capital losses, from investment capital, to the extent included in computing entire net income, less, (A) in the discretion of the commissioner, any interest deductions allowable in computing entire net income which are directly or indirectly attribut- able to investment capital or investment income, (B) ANY OF CAPITAL GAIN INCLUDED IN FEDERAL TAXABLE INCOME THAT HAS TO BE RECHARACTERIZED AS BUSINESS INCOME PURSUANT TO PARAGRAPH (U) OF SUBDIVISION NINE OF THIS SECTION; provided, however, that in no case shall investment income exceed entire net income. (ii) If the amount of interest deductions subtracted under subparagraph (i) of this paragraph exceeds investment income, the excess of such amount over investment income must be added back to entire net income. (iii) If the taxpayer's investment income determined without regard to the interest deductions subtracted under subparagraph (i) of this paragraph comprises more than eight percent of the taxpayer's entire net income, investment income determined without regard to such interest deductions cannot exceed eight percent of the taxpayer's entire net income. S 2. Subparagraph (ix) of paragraph (a) of subdivision 1 of section 210 of the tax law is amended by adding a new clause 8 to read as follows: (8) THE NET OPERATING LOSS DEDUCTION ALLOWED UNDER SECTION ONE HUNDRED SEVENTY-TWO OF THE INTERNAL REVENUE CODE SHALL FOR PURPOSES OF THIS PARAGRAPH BE DETERMINED TAKING INTO CONSIDERATION THE RE-CHARACTERIZA- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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