NY State Senate Bill 2019-S1992

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to budget and revenue
Jan 18, 2019	referred to budget and revenue

co-Sponsors

2019-S1992 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2987
2011-2012: S3191
2013-2014: S1694
2015-2016: S866
2017-2018: S3511

2019-S1992 (ACTIVE) - Summary

Creates a small business electric energy tax credit; the term "business related electricity usage" shall refer to electrical power usage to further the economic activity of the taxpayer at the primary business location that is clearly delimited from any shared electrical power usage cost.

2019-S1992 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1992

SPONSOR: RANZENHOFER
 
TITLE OF BILL:

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

 
SUMMARY OF PROVISIONS:

This bill amends the Tax Law.

Section 1 amends Section 210 of the Tax Law, relating to franchise taxes
on business corporations, by adding a new subdivision 53 creating a
small business electric energy tax credit. The section defines eligibil-
ity and other restrictions and requirements, and provides for a tax
credit equal to the product of two cents per kilowatt hour for all busi-
ness-related electricity usage at the taxpayer's primary business
location, with a cap of $1,000 per taxable year.

Section 2 amends Section 606 of the Tax Law, relating to personal income
tax, by adding a new subsection (xx). This subsection provides for a

small business electric energy tax credit. The section defines eligibil-
ity and other restrictions and requirements, and provides for a tax
credit equal to the product of two cents per kilowatt hour for all busi-
ness-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, relating to S corporations, adds a new
clause (xliv) regarding the small business electricity energy credit
under subsection (ccc).

Section 4 provides that this act shall take effect on the first of Janu-
ary next succeeding the date on which it shall have become law and shall
apply for taxable years beginning such date.

 
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 esti-
mated that 386,000 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:

2006 - S.6566 -- PASSED SENATE
2007-08 - S.1671/A.10728 -- PASSED SENATE/PASSED SENATE-Ways & Means
2010 - S.2987 - INVESTIGATIONS
2011-12 - S.3191-A/A.10122 -- RULES/Ways & Means
2013-14 - S.1694-A/A.761-B - INVESTIGATIONS/Ways & Means
2015-16 - S.866/A.6544 - INVESTIGATIONS/Ways & Means
2017-18 - S.3511-A/A.6679-A - INVESTIGATIONS/ Ways & Means

 
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 law.

2019-S1992 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1992
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2019
                                ___________
 
 Introduced  by Sens. RANZENHOFER, FELDER, FUNKE, YOUNG -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Budget and Revenue
 
 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 53 to read as follows:
   53. 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 UP TO  A  ONE  THOUSAND  DOLLAR
 LIMIT DURING THE TAXABLE YEAR.
   (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"
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01640-01-9

 S. 1992                             2
 
 SHALL HAVE THE SAME MEANING AS SET FORTH  IN  CLAUSES  (A)  AND  (B)  OF
 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) THE CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
 SHALL  NOT  REDUCE  THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF
 THE AMOUNTS 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 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.
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ)  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 UP TO A ONE THOUSAND DOLLAR LIMIT  DURING
 THE TAXABLE YEAR.
   (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

 S. 1992                             3

 PROVIDED TO THE TAXPAYER BY THE  TAXPAYER'S  ELECTRICITY  POWER  SERVICE
 PROVIDER.
   (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 (xliv) to read as
 follows:
 
 (XLIV) SMALL BUSINESS ELECTRIC       QUALIFYING ELECTRICITY USAGE
 ENERGY TAX CREDIT                    UNDER SUBDIVISION FIFTY-THREE
 UNDER SUBSECTION (JJJ)               OF SECTION TWO HUNDRED TEN-B
   § 4. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.

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Senate Bill S1992

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

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co-Sponsors

2019-S1992 (ACTIVE) - Details

2019-S1992 (ACTIVE) - Summary

2019-S1992 (ACTIVE) - Sponsor Memo

2019-S1992 (ACTIVE) - Bill Text download pdf

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Sponsored By

Michael H. Ranzenhofer

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Actions

co-Sponsors

Alessandra Biaggi

Simcha Felder

Rich Funke

Catharine Young

2019-S1992 (ACTIVE) - Details

2019-S1992 (ACTIVE) - Summary

2019-S1992 (ACTIVE) - Sponsor Memo

2019-S1992 (ACTIVE) - Bill Text download pdf

Comments