Assembly Bill A2374

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2374
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 18, 2017
                                ___________
 
 Introduced by M. of A. LENTOL -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to authorizing a local material
   tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The tax law is amended by adding a new section 43  to  read
 as follows:
   §  43. LOCAL MATERIAL CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT
 PURCHASES MATERIALS FROM COMPANIES LOCATED WITHIN A FIFTEEN MILE  RADIUS
 OF  SUCH  TAXPAYER'S  BUSINESS, AND THAT IS SUBJECT TO TAX UNDER ARTICLE
 NINE-A OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT  AGAINST
 SUCH  TAX,  PURSUANT  TO THE PROVISIONS REFERENCED IN SUBDIVISION (B) OF
 THIS SECTION, EQUAL TO TEN  PERCENT  OF  THE  TOTAL  RECEIPTS  FROM  THE
 PURCHASE OF MATERIALS FROM COMPANIES LOCATED WITHIN A FIFTEEN MILE RADI-
 US OF SUCH TAXPAYER'S BUSINESS.
   (B)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 49.
   (2) ARTICLE 22: SECTION 606: SUBSECTION (CCC).
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 49 to read as follows:
   49. LOCAL MATERIAL CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS
 ELIGIBLE  PURSUANT  TO  SECTION  FORTY-THREE  OF  THIS  CHAPTER SHALL BE
 ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION  FORTY-THREE
 OF THIS CHAPTER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE.  PROVIDED, HOWEVER, THAT IF THE
 AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03423-01-7

 A. 2374                             2
 
 YEAR  REDUCES  THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN
 OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
 PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
 HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON. THE BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE
 YEAR MAY NOT BE CARRIED OVER TO ANY SUCCEEDING TAXABLE YEAR.
   §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new  clause  (xliii)  to  read  as
 follows:
 
 (XLIII) CREDIT FOR COMPANIES THAT    AMOUNT OF CREDIT UNDER
 PURCHASE LOCAL MATERIALS             SUBDIVISION FORTY-NINE OF
 UNDER SUBSECTION (CCC)               SECTION TWO HUNDRED TEN-B
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (ccc) to read as follows:
   (CCC) LOCAL MATERIAL CREDIT. (1) ALLOWANCE OF CREDIT.  A TAXPAYER THAT
 IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF  THIS  CHAPTER  SHALL  BE
 ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION FORTY-THREE
 OF THIS CHAPTER AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
 FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
 THAN THE AMOUNT PRESCRIBED IN SECTION SIX  HUNDRED  TWO  OF  THIS  PART.
 PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS
 SUBSECTION  FOR  ANY  TAXABLE  YEAR  REDUCES THE TAX TO SUCH AMOUNT, THE
 EXCESS SHALL BE TREATED AS AN OVERPAYMENT  OF  TAX  TO  BE  CREDITED  OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. THE BALANCE OF  SUCH
 CREDIT  NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY NOT BE CARRIED
 OVER TO  ANY SUCCEEDING TAXABLE YEAR.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2017.