S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2390
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by  M.  of  A. J. M. GIGLIO -- 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 small businesses in
   a village or small city

   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 59 to read as follows:
   59. SMALL BUSINESS CAPITAL TAX CREDIT. (A) A TAXPAYER SHALL BE ALLOWED
 A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS  SUBDIVISION,  AGAINST  THE
 TAX IMPOSED BY THIS ARTICLE. SUCH CREDIT SHALL BE GRANTED TO ANY TAXPAY-
 ER  WHICH  IS  A  SMALL BUSINESS WHEN THE SMALL BUSINESS IS LOCATED IN A
 VILLAGE OR IN A CITY WITH A POPULATION OF LESS THAN THIRTY-FIVE THOUSAND
 AS DETERMINED BY THE MOST RECENT FEDERAL DECENNIAL CENSUS. THE AMOUNT OF
 THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE SUM OF QUALIFIED
 INVESTMENTS IN SUCH SMALL BUSINESS, AS DETERMINED BY THE COMMISSIONER.
   (B) FOR THE PURPOSES OF THIS SUBDIVISION, THE  TERM  "SMALL  BUSINESS"
 MEANS A BUSINESS WHICH EMPLOYS LESS THAN FIFTEEN EMPLOYEES.
   (C) THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS SUBDI-
 VISION  FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, 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 OR CARRYOVERS OF SUCH  CREDIT,
 OR BOTH, ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
 TAX  TO  SUCH  AMOUNT, ANY AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT
 THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY  BE  CARRIED  OVER  TO  THE
 FOLLOWING  YEAR  OR YEARS AND MAY BE DEDUCTED FROM THE TAX FOR SUCH YEAR
 OR YEARS.
   § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of the tax law is amended by adding a new clause (l) to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05483-01-3
              

 A. 2390                             2
 
 (L) SMALL BUSINESS                   AMOUNT OF CREDIT UNDER
 CAPITAL TAX CREDIT                   SUBDIVISION FIFTY-NINE OF
 UNDER SUBSECTION (OOO)               SECTION TWO HUNDRED TEN-B
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (ooo) to read as follows:
   (OOO) SMALL BUSINESS CAPITAL TAX  CREDIT.  (1)  A  TAXPAYER  SHALL  BE
 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST
 THE  TAX  IMPOSED  BY  THIS ARTICLE. SUCH CREDIT SHALL BE GRANTED TO ANY
 TAXPAYER WHICH IS A SMALL BUSINESS WHEN THE SMALL BUSINESS IS LOCATED IN
 A VILLAGE OR IN A CITY WITH A POPULATION OF LESS THAN THIRTY-FIVE  THOU-
 SAND  AS  DETERMINED  BY  THE MOST RECENT FEDERAL DECENNIAL CENSUS.  THE
 AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE SUM OF
 QUALIFIED INVESTMENTS IN SUCH  SMALL  BUSINESS,  AS  DETERMINED  BY  THE
 COMMISSIONER.
   (2)  FOR  THE  PURPOSES  OF THIS SUBSECTION, THE TERM "SMALL BUSINESS"
 MEANS A BUSINESS WHICH EMPLOYS LESS THAN FIFTEEN EMPLOYEES.
   (3) THE CREDIT AND  CARRYOVERS  OF  SUCH  CREDIT  ALLOWED  UNDER  THIS
 SUBSECTION  FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE
 TAX DUE FOR SUCH YEAR  TO  BE  LESS  THAN  THE  HIGHER  OF  THE  AMOUNTS
 PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED
 TEN OF THIS CHAPTER.  HOWEVER, IF THE AMOUNT OF CREDIT OR CARRYOVERS  OF
 SUCH CREDIT, OR BOTH, ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR
 REDUCES  THE  TAX  TO SUCH AMOUNT, ANY AMOUNT OF CREDIT OR CARRYOVERS OF
 SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
 TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAX FOR SUCH
 YEAR OR YEARS.
   § 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
 taxable years commencing on and after such date.