NY State Senate Bill 2017-S319

Senate Bill S319

2017-2018 Legislative Session

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business

download bill text pdf

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations
Jan 04, 2017	referred to investigations and government operations

2017-S319 (ACTIVE) - Details

See Assembly Version of this Bill:: A2190
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6754, A10138
2013-2014: S37, A4199
2015-2016: S1114, A6982
2019-2020: S845, A7008
2021-2022: S604

2017-S319 (ACTIVE) - Summary

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.

2017-S319 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S319

 TITLE OF BILL :

An act to amend the tax law, in relation to establishing business
franchise and personal income tax credits for certain businesses which
contract with the state or political subdivisions thereof and in
unrelated contracts, also with minority and women-owned business
enterprises

 PURPOSE :

Establishes business franchise and personal income tax credits for a
portion of the consideration paid under a contract with a minority or
women-owned business.

 SUMMARY OF PROVISIONS :

Section 1 amends section 210-B the tax law by adding a new subdivision
28 creating a business franchise tax credit for businesses that
contract with both the state and, in a separate and unrelated
transaction, with a women or minority owned business.

Sections 2 and 3 establish a personal income tax credit for tax payers
who contract with both the state and, in a separate and unrelated
transaction, with a women or minority owned business.

Section 4 establishes the effective date.

 JUSTIFICATION :

New York has been a longtime leader in the promotion of minority and
women owned business enterprises ("MWBEs"). The core goals of the
State's efforts are 1) equality of economic opportunities for MWBEs
and 2) elimination of barriers to their participation in state
contracts. The problem is that the State has focused on the latter as
the sole means of achieving the former. In order to help build fully
self-sustaining minority and women owned businesses, the State must
also do its part to encourage private entities to contract with MWBEs.
This legislation would incentivize the private sector to build
long-term business relationships with MWBEs by offering business
franchise and personal income tax credits for companies and
individuals that contract with both MWBEs and the State. State
contracts are critical for initial growth, but insufficient for
long-term success. This legislation would help build grow existing
MWBEs while paving the way for the next generation.

 LEGISLATIVE HISTORY :

2015-2016--S1114
2013-2014 - S.37
2011-12: S.6754

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to tax years
commencing on or after such date.

2017-S319 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    319
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen. PERALTA -- 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 establishing business  fran-
   chise  and  personal  income  tax credits for certain businesses which
   contract with the state or political subdivisions thereof and in unre-
   lated contracts, also with minority and  women-owned  business  enter-
   prises
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 210-B of the tax law is amended  by  adding  a  new
 subdivision 28 to read as follows:
   28. MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT. (A)
 GENERAL.  A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO BE COMPUTED AS
 PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED  BY  THIS  ARTICLE
 FOR  A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-
 OWNED BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR  THE  PROVISION  OF
 GOODS  OR SERVICES. THE CREDIT PROVIDED FOR IN THIS SUBDIVISION SHALL BE
 ALLOWED WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS  PAID
 TO THE MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
   (B)  DEFINITIONS.  FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING
 TERMS SHALL MEAN:
   (I) "GOVERNMENT AGENCY" MEANS A STATE AGENCY OR A STATE  AUTHORITY  AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
 TIVE  LAW,  OR  A POLITICAL SUBDIVISION AS DEFINED IN SUBDIVISION ONE OF
 SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
   (II) "MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS  A  MINORITY-
 OWNED  BUSINESS  ENTERPRISE  AS  DEFINED IN SUBDIVISION SEVEN OF SECTION
 THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS  ENTER-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00044-01-7

 S. 319                              2
 
 PRISE  AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF
 THE EXECUTIVE LAW.
   (C)  COMPUTATION.  THE  CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL BE
 EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
 TY OR WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO  A  CONTRACT  FOR  THE
 PROVISION  OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT SUCH
 CONTRACT WAS NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A  OF  THE
 EXECUTIVE  LAW OR ANY OTHER PROVISION OF LAW RELATING TO THE AFFIRMATIVE
 ACTION, AND THE TAXPAYER IS  NOT  A  MINORITY  OR  WOMEN-OWNED  BUSINESS
 ENTERPRISE.    FURTHERMORE,  THE  AMOUNT OF SUCH CREDIT SHALL NOT EXCEED
 FIVE PERCENT OF ALL CONSIDERATION PAID TO THE TAXPAYER  DURING  THE  TAX
 YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF
 GOODS OR SERVICES.
   §  2. 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) MINORITY AND                 AMOUNT OF CREDIT
 WOMEN-OWNED BUSINESS                 UNDER SUBDIVISION
 EMPLOYMENT INCENTIVE                 TWENTY-EIGHT OF
 CREDIT UNDER                         SECTION TWO
 SUBSECTION (CCC)                     HUNDRED TEN-B
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (ccc) to read as follows:
   (CCC) MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT  INCENTIVE  CREDIT.
 (1)  GENERAL.  A  TAXPAYER  SHALL  BE ALLOWED A CREDIT TO BE COMPUTED AS
 PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
 A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-OWNED
 BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS OR
 SERVICES.  THE CREDIT PROVIDED FOR IN THIS SUBSECTION SHALL  BE  ALLOWED
 WITH  RESPECT  TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID TO THE
 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
   (2) DEFINITIONS. FOR THE PURPOSES OF THIS  SUBSECTION,  THE  FOLLOWING
 TERMS SHALL MEAN:
   (I)  "GOVERNMENT  AGENCY" MEANS A STATE AGENCY OR A STATE AUTHORITY AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
 TIVE LAW, OR A POLITICAL SUBDIVISION AS DEFINED IN  SUBDIVISION  ONE  OF
 SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
   (II)  "MINORITY  OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS A MINORITY-
 OWNED BUSINESS ENTERPRISE AS DEFINED IN  SUBDIVISION  SEVEN  OF  SECTION
 THREE  HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS ENTER-
 PRISE AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN  OF
 THE EXECUTIVE LAW.
   (3)  COMPUTATION.  THE  CREDIT  AUTHORIZED BY THIS SUBSECTION SHALL BE
 EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
 TY OR WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO  A  CONTRACT  FOR  THE
 PROVISION  OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT SUCH
 CONTRACT WAS NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A  OF  THE
 EXECUTIVE  LAW  OR  ANY  OTHER  PROVISION OF LAW RELATING TO AFFIRMATIVE
 ACTION, AND THE TAXPAYER IS  NOT  A  MINORITY  OR  WOMEN-OWNED  BUSINESS
 ENTERPRISE.    FURTHERMORE,  THE  AMOUNT OF SUCH CREDIT SHALL NOT EXCEED
 FIVE PERCENT OF ALL CONSIDERATION PAID TO THE TAXPAYER  DURING  THE  TAX
 YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF
 GOODS OR SERVICES.
   §  4. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law and shall apply to  tax
 years commencing on or after such date.

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