S T A T E O F N E W Y O R K
________________________________________________________________________
6800--A
2021-2022 Regular Sessions
I N S E N A T E
May 17, 2021
___________
Introduced by Sens. GIANARIS, KRUEGER -- read twice and ordered printed,
and when printed to be committed to the Committee on Budget and Reven-
ue -- recommitted to the Committee on Budget and Revenue in accordance
with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law and the administrative code of the city of
New York, in relation to treatment of gains from qualified opportunity
zones in calculating taxable income
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (b) of subdivision 9 of section 208 of the tax
law is amended by adding a new subparagraph 28 to read as follows:
(28) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 2. Subdivision 9 of section 208 of the tax law is amended by adding
a new paragraph (u) to read as follows:
(U) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-TWO, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 3. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 44 to read as follows:
(44) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 4. Section 612 of the tax law is amended by adding a new subsection
(y) to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11490-03-2
S. 6800--A 2
(Y) QUALIFIED OPPORTUNITY ZONES. FOR TAX YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-TWO, UPON THE SALE OR EXCHANGE OF
PROPERTY WITH RESPECT TO WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER
SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2
OF THE INTERNAL REVENUE CODE, THE BASIS OF SUCH PROPERTY UNDER THIS
ARTICLE SHALL BE DETERMINED AS IF THE TAXPAYER HAD NOT MADE SUCH
ELECTION.
§ 5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (AA) to read as follows:
(AA) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 6. Section 1503 of the tax law is amended by adding a new subdivi-
sion (d) to read as follows:
(D) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-TWO, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 7. Paragraph (a) of subdivision 8 of section 11-602 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph 16 to read as follows:
(16) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 8. Section 11-602 of the administrative code of the city of New York
is amended by adding a new subdivision 11 to read as follows:
11. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-TWO, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 9. Paragraph (a) of subdivision 8 of section 11-652 of the adminis-
trative code of the city of New York is amended by adding a new subpara-
graph 17 to read as follows:
(17) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
§ 10. Subdivision 8 of section 11-652 of the administrative code of
the city of New York is amended by adding a new paragraph (u) to read as
follows:
(U) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-TWO, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 11. Subdivision (b) of section 11-1712 of the administrative code of
the city of New York is amended by adding a new paragraph 40 to read as
follows:
(40) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
S. 6800--A 3
§ 12. Section 11-1712 of the administrative code of the city of New
York is amended by adding a new subdivision (w) to read as follows:
(W) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-TWO, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
(1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
THE TAXPAYER HAD NOT MADE SUCH ELECTION.
§ 13. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2022.
