S T A T E O F N E W Y O R K
________________________________________________________________________
2590
2019-2020 Regular Sessions
I N A S S E M B L Y
January 24, 2019
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Introduced by M. of A. CROUCH, DiPIETRO, GIGLIO, LAWRENCE, MORINELLO,
NORRIS -- Multi-Sponsored by -- M. of A. HAWLEY -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to creating a doing business
with a vocational program tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 606 of the tax law is amended by adding a new
subsection (jjj) to read as follows:
(JJJ) DOING BUSINESS WITH A VOCATIONAL PROGRAM TAX CREDIT. (1) ALLOW-
ANCE OF CREDIT. A TAXPAYER WHO OWNS A BUSINESS THAT MAKES PURCHASES FROM
A VOCATIONAL PROGRAM SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, AGAINST THE TAX IMPOSED
BY THIS ARTICLE. TO QUALIFY FOR THE CREDIT PROVIDED IN THIS SECTION, A
TAXPAYER MUST BE A NEW YORK RESIDENT AND OWN A BUSINESS LOCATED IN NEW
YORK.
(2) DEFINITION. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "VOCA-
TIONAL PROGRAM" SHALL HAVE THE SAME DEFINITION AS SET FORTH BY THE
COMMISSIONER OF THE OFFICE OF PEOPLE WITH DEVELOPMENTAL DISABILITIES.
(3) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL ONE HUNDRED
PERCENT OF THE PURCHASES MADE BY THE TAXPAYER TO A BUSINESS THAT IS A
VOCATIONAL PROGRAM.
(4) APPLICATION OF CREDIT. IF THE AMOUNT OF THE 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.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliv) to read as
follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03051-01-9
A. 2590 2
(XLIV) DOING BUSINESS WITH A AMOUNT OF CREDIT
VOCATIONAL PROGRAM UNDER SUBDIVISION
TAX CREDIT UNDER FIFTY-THREE OF SECTION
SUBSECTION (JJJ) TWO HUNDRED TEN-B
§ 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 53 to read as follows:
53. DOING BUSINESS WITH A VOCATIONAL PROGRAM TAX CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER WHO OWNS A BUSINESS THAT MAKES PURCHASES FROM A
VOCATIONAL PROGRAM SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN PARAGRAPH (C) OF THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS
ARTICLE. TO QUALIFY FOR THE CREDIT PROVIDED IN THIS SECTION, A TAXPAYER
MUST BE A NEW YORK RESIDENT AND OWN A BUSINESS LOCATED IN NEW YORK.
(B) DEFINITION. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "VOCA-
TIONAL PROGRAM" SHALL HAVE THE SAME DEFINITION AS SET FORTH BY THE
COMMISSIONER OF THE OFFICE OF PEOPLE WITH DEVELOPMENTAL DISABILITIES.
(C) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL EQUAL ONE HUNDRED
PERCENT OF THE PURCHASES MADE BY THE TAXPAYER TO A BUSINESS THAT IS A
VOCATIONAL PROGRAM.
(D) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBDIVISION 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 CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
§ 4. This act shall take effect immediately and shall apply to all
taxable years beginning on and after January 1, 2019.