NY State Senate Bill 2017-S5420

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
Mar 27, 2017	referred to investigations and government operations

2017-S5420 (ACTIVE) - Details

See Assembly Version of this Bill:: A400
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:: 2009-2010: A902
2011-2012: A2309
2013-2014: A1619
2015-2016: A1953
2019-2020: A3600
2021-2022: A5250
2023-2024: A4387

2017-S5420 (ACTIVE) - Summary

Creates a small business electric energy tax credit; specifies that the amount of credit shall be equal to the product of $0.02 per kilowatt hour; sets limit of no more than 19 full-time employees in New York state; determines that if the business is located at the primary residence of a sole proprietor, the business is not eligible for the tax credit.

2017-S5420 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5420

 TITLE OF BILL :  An act to amend the tax law, in relation to a small
business electric energy tax credit

 SUMMARY OF PROVISIONS :

Section 1 amends Section 210-b of the Tax Law, relating to franchise
taxes on business corporations, by adding a new subdivision 46
creating a small business electric energy tax credit. The section
defines eligibility and other restrictions and requirements, and
provides for a tax credit equal to the product of two cents per
kilowatt hour for all business-related electricity usage at the
taxpayer's primary business location.

Section 2 amends Section 606 of the Tax Law, relating to personal
income tax, by adding a new subsection (vv). This subsection provides
for a small business electric energy tax credit. The section defines
eligibility and other restrictions and requirements, and provides for
a tax credit equal to the product of two cents per kilowatt hour for
all business-related electricity usage at the taxpayer's primary
business location

Section 3 amends subparagraph (B) of paragraph 1 of subsection (i) of
Section 606 of the tax law, by adding a new clause (xliii) to read as
follows: (xli) small business electricity energy credit under

subsection (ccc) and qualifying electricity usage under subdivision 49
of section two hundred ten-b.

Section 4 provides that this act shall take effect immediately and
shall apply for taxable years beginning after January 1, 2017.

 PURPOSE AND JUSTIFICATION :

Small businesses are critical to the economic health and growth of our
state. Small businesses are a powerful engine of new job growth, and a
source of innovation that will keep our state competitive around the
world. Energy costs have risen faster than many small businesses could
have predicted or planned for, and as a result, many find themselves
under financial pressure.

The bill applies to companies with less than 20 employees. It is
estimated that 366,000 businesses employing 1.4 million New Yorkers
will be impacted by this legislation. This bill will help to offset
these increased costs by offering a tax credit, and help to ensure
that our small businesses will remain healthy and productive. These
tax credits will also help to hold overhead down and make our small
businesses better able to compete both nationally and internationally.

 PRIOR LEGISLATIVE HISTORY :

2015-16: A1953 referred to Ways and Means
2013-14: A1619 referred to Ways and Means
2011-12: A.2309 referred to Ways and Means
2009-10: A.902 referred to Ways and Means
2007-08: A.10728 referred to Ways and Means/S1671 Passed Senate
2005-06: 5.6566 passed Senate

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.

2017-S5420 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5420
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 27, 2017
                                ___________
 
 Introduced  by  Sen. KENNEDY -- 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 a  small  business  electric
   energy tax credit
 
   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 49 to read as follows:
   49.  SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (A) A TAXPAYER THAT IS
 ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN PARAGRAPH (B) OF THIS SUBDI-
 VISION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTI-
 CLE.    THE  AMOUNT  OF  THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF TWO
 CENTS PER KILOWATT HOUR FOR ALL BUSINESS RELATED  ELECTRICITY  USAGE  AT
 THE TAXPAYER'S PRIMARY BUSINESS LOCATION.
   (B)  AN  ELIGIBLE  TAXPAYER  SHALL (I) HAVE NO MORE THAN NINETEEN FULL
 TIME EQUIVALENT EMPLOYEES IN  NEW  YORK  STATE,  INCLUDING  ANY  RELATED
 MEMBERS  OR  AFFILIATES, (II) NOT BE A SOLE-PROPRIETORSHIP IF SUCH SOLE-
 PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH SOLE-
 PROPRIETOR'S PLACE OF RESIDENCE, (III)  NOT  BE  CERTIFIED  PURSUANT  TO
 ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
 ING  ANY  ALLOCATION  OR  AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER
 ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
   (C) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL  REFER  TO
 ELECTRICAL  POWER  USAGE  USED  TO  FURTHER THE ECONOMIC ACTIVITY OF THE
 TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
 ANY SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY  BUSINESS
 LOCATION"  SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE STATE
 OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S  ECONOMIC  ACTIVITY  IS
 GENERATED  OR  COORDINATED  THROUGH.    (III) THE TERM "RELATED MEMBERS"
 SHALL HAVE THE SAME MEANING AS SET FORTH  IN  CLAUSES  (A)  AND  (B)  OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03841-01-7

 S. 5420                             2
 
 SUBPARAGRAPH  ONE  OF  PARAGRAPH  (O) OF SUBDIVISION NINE OF SECTION TWO
 HUNDRED EIGHT OF THIS ARTICLE, AND  THE  TERM  "AFFILIATES"  SHALL  MEAN
 THOSE  CORPORATIONS  THAT  ARE  MEMBERS OF THE SAME AFFILIATED GROUP (AS
 DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE) AS
 THE TAXPAYER.
   (D) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
 THE  TAXPAYER  FOR BUSINESS RELATED ELECTRICITY USAGE DURING THE TAXPAY-
 ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
 PROVIDED TO THE TAXPAYER BY THE  TAXPAYER'S  ELECTRICITY  POWER  SERVICE
 PROVIDER.
   (E)  IN  NO EVENT SHALL THE CREDIT PROVIDED FOR IN THIS SUBDIVISION BE
 ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN  THE
 FIXED  DOLLAR  MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION
 ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF THE  AMOUNT
 OF  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES
 THE TAX TO SUCH AMOUNT, ANY AMOUNT OF  CREDIT  NOT  DEDUCTIBLE  IN  SUCH
 TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
 REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT-
 Y-SIX  OF  THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION
 (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING,
 NO INTEREST SHALL BE PAID THEREON.
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC)  SMALL  BUSINESS ELECTRIC ENERGY TAX CREDIT. (1) A TAXPAYER THAT
 IS ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN  PARAGRAPH  TWO  OF  THIS
 SUBSECTION  SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS
 ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE PRODUCT (OR  PRO
 RATA SHARE OF THE PRODUCT IN THE CASE OF A PARTNERSHIP) OF TWO CENTS PER
 KILOWATT  HOUR FOR ALL BUSINESS RELATED ELECTRICITY USAGE AT THE TAXPAY-
 ER'S PRIMARY BUSINESS LOCATION.
   (2) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO  MORE  THAN  NINETEEN  FULL
 TIME  EQUIVALENT  EMPLOYEES  IN  NEW  YORK  STATE, INCLUDING ANY RELATED
 MEMBERS OR AFFILIATES, (II) SHALL NOT BE A SOLE-PROPRIETORSHIP  IF  SUCH
 SOLE-PROPRIETOR'S  PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH
 SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
 ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
 ING ANY ALLOCATION OR AWARD PURSUANT TO  ANY  PROGRAM  AUTHORIZED  UNDER
 ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
   (3)  (I)  THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL REFER TO
 ELECTRICAL POWER USAGE USED TO FURTHER  THE  ECONOMIC  ACTIVITY  OF  THE
 TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
 ANY  SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY BUSINESS
 LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE  STATE
 OF  NEW  YORK  WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC ACTIVITY IS
 GENERATED OR COORDINATED THROUGH. (III) THE TERM "RELATED MEMBERS" SHALL
 HAVE THE SAME MEANING AS SET FORTH IN CLAUSES (A) AND  (B)  OF  SUBPARA-
 GRAPH  ONE  OF  PARAGRAPH (O) OF SUBDIVISION NINE OF SECTION TWO HUNDRED
 EIGHT OF THIS CHAPTER, AND THE TERM "AFFILIATES" SHALL MEAN THOSE CORPO-
 RATIONS THAT ARE MEMBERS OF THE SAME AFFILIATED  GROUP  (AS  DEFINED  IN
 SECTION  FIFTEEN  HUNDRED  FOUR  OF  THE  INTERNAL  REVENUE CODE) AS THE
 TAXPAYER.
   (4) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
 THE TAXPAYER FOR BUSINESS RELATED ELECTRICITY USAGE DURING  THE  TAXPAY-
 ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
 PROVIDED  TO  THE  TAXPAYER  BY THE TAXPAYER'S ELECTRICITY POWER SERVICE
 PROVIDER.

 S. 5420                             3
 
   (5) IF THE AMOUNT OF CREDIT ALLOWED  UNDER  THIS  SUBSECTION  FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  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) SMALL BUSINESS ELECTRIC      QUALIFYING ELECTRICITY USAGE
 ENERGY TAX CREDIT                    UNDER SUBDIVISION FORTY-NINE
 UNDER SUBSECTION (CCC)               OF SECTION TWO HUNDRED TEN-B
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.

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Senate Bill S5420

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2017-S5420 (ACTIVE) - Details

2017-S5420 (ACTIVE) - Summary

2017-S5420 (ACTIVE) - Sponsor Memo

2017-S5420 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5420

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Sponsored By

Timothy M. Kennedy

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2017-S5420 (ACTIVE) - Details

2017-S5420 (ACTIVE) - Summary

2017-S5420 (ACTIVE) - Sponsor Memo

2017-S5420 (ACTIVE) - Bill Text download pdf

Comments