S T A T E O F N E W Y O R K
________________________________________________________________________
7970
2021-2022 Regular Sessions
I N A S S E M B L Y
June 4, 2021
___________
Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the
Committee on Ways and Means
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-
PRISE AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF
THE EXECUTIVE LAW.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04914-04-1
A. 7970 2
(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 MANDATING CONTRACTS WITH A
MINORITY OR WOMEN-OWNED BUSINESS, AND THE TAXPAYER IS NOT A MINORITY OR
WOMEN-OWNED BUSINESS ENTERPRISE. FURTHERMORE, THE AMOUNT OF SUCH CREDIT
SHALL NOT EXCEED THE LESSER OF FIFTEEN THOUSAND DOLLARS OR 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. FOR COMPANIES WITH NO CONTRACTS WITH GOVERNMENT AGENCIES, THE
AMOUNT OF THE CREDIT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS.
(D) CARRYOVER. IN NO EVENT SHALL THE CREDIT AUTHORIZED BY THIS SUBDI-
VISION BE ALLOWED IN AN AMOUNT WHICH SHALL 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. PROVIDED,
HOWEVER, THAT IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR
ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER
OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT
OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE
FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR
SUCH YEAR OR YEARS.
(E) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SUBDIVISION
AND SUBSECTION (NNN) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
CALENDAR YEAR STATEWIDE SHALL BE FIVE MILLION DOLLARS. SUCH AGGREGATE
AMOUNT OF CREDITS SHALL BE ALLOCATED PURSUANT TO RULES AND REGULATIONS
PROMULGATED BY THE COMMISSIONER.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xlvi) to read as
follows:
(XLVI) MINORITY AND AMOUNT OF CREDIT
WOMEN-OWNED BUSINESS UNDER SUBDIVISION
EMPLOYMENT INCENTIVE TWENTY-EIGHT OF
CREDIT UNDER SECTION TWO
SUBSECTION (NNN) HUNDRED TEN-B
§ 3. Section 606 of the tax law is amended by adding a new subsection
(nnn) to read as follows:
(NNN) 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-
A. 7970 3
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 MANDATING CONTRACTS WITH A
MINORITY OR WOMEN-OWNED BUSINESS, AND THE TAXPAYER IS NOT A MINORITY OR
WOMEN-OWNED BUSINESS ENTERPRISE. FURTHERMORE, THE AMOUNT OF SUCH CREDIT
SHALL NOT EXCEED THE LESSER OF FIFTEEN THOUSAND DOLLARS OR 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. FOR COMPANIES WITH NO CONTRACTS WITH GOVERNMENT AGENCIES, THE
AMOUNT OF THE CREDIT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS.
(4) CARRYOVER. IF THE AMOUNT OF CREDIT PROVIDED BY THIS SUBSECTION FOR
ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
(5) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SUBSECTION
AND SUBDIVISION TWENTY-EIGHT OF SECTION TWO HUNDRED TEN-B OF THIS CHAP-
TER IN ANY CALENDAR YEAR STATEWIDE SHALL BE FIVE MILLION DOLLARS. SUCH
AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED PURSUANT TO RULES AND
REGULATIONS PROMULGATED BY THE COMMISSIONER.
§ 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.