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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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| Jan 03, 2018 |
referred to investigations and government operations |
| Jan 11, 2017 |
referred to investigations and government operations |
Senate Bill S1991
2017-2018 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
co-Sponsors
(D) Senate District
(D) 36th Senate District
(D, WF) Senate District
(D) Senate District
2017-S1991 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A3554
- 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:
-
2015-2016:
S7091, A9459
2019-2020: S303, A3976
2021-2022: S999, A2195
2023-2024: A1415
2017-S1991 (ACTIVE) - Sponsor Memo
BILL NUMBER: S1991
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
Sections 3: of the bill provides a special rule Special rule for
2017-S1991 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
1991
2017-2018 Regular Sessions
I N S E N A T E
January 11, 2017
___________
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.
§ 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:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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