Senate Bill S8853

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8853
 
                             I N  S E N A T E
 
                              March 21, 2024
                                ___________
 
 Introduced  by  Sen. HELMING -- 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 establishing  the  New  York
   manufacturing adequate domestic equipment credit (NY MADE)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The tax law is amended by adding a new section 49  to  read
 as follows:
   §  49.  NEW  YORK MANUFACTURING ADEQUATE DOMESTIC EQUIPMENT CREDIT (NY
 MADE). (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER  ARTICLE  NINE-A  OR
 TWENTY-TWO  OF  THIS  CHAPTER,  PRODUCES  MEDICAL  EQUIPMENT OR PERSONAL
 PROTECTIVE EQUIPMENT, AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION TWO  OF
 SECTION  ONE HUNDRED FORTY-EIGHT OF THE STATE FINANCE LAW, IN THIS STATE
 DURING THE TAXABLE YEAR, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAXES IN
 THE AMOUNT SPECIFIED IN SUBDIVISION (B) OF THIS SECTION AND PURSUANT  TO
 THE  PROVISIONS  REFERENCED  IN SUBDIVISION (C) OF THIS SECTION. FOR THE
 PURPOSES OF THIS SECTION,  "MEDICAL  EQUIPMENT"  SHALL  MEAN  MACHINERY,
 APPARATUS,  AND  OTHER  DEVICES  WHICH ARE INTENDED FOR USE IN THE CURE,
 MITIGATION, TREATMENT OR PREVENTION OF  ILLNESSES  OR  DISEASES  OR  THE
 CORRECTION  OR  ALLEVIATION OF PHYSICAL INCAPACITY IN HUMAN BEINGS. SUCH
 EQUIPMENT MUST BE PRIMARILY AND CUSTOMARILY USED  FOR  MEDICAL  PURPOSES
 AND  NOT BE GENERALLY USEFUL IN THE ABSENCE OF ILLNESS, INJURY, OR PHYS-
 ICAL INCAPACITY.
   (B) THE AMOUNT OF THE CREDIT PER TAXPAYER PER  TAXABLE  YEAR  (OR  PRO
 RATA SHARE OF EARNED CREDIT IN THE CASE OF A PARTNERSHIP) FOR PRODUCTION
 OF  MEDICAL  EQUIPMENT  OR  PERSONAL PROTECTIVE EQUIPMENT, AS DEFINED IN
 PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION ONE HUNDRED  FORTY-EIGHT  OF
 THE STATE FINANCE LAW, SHALL BE DETERMINED AS FOLLOWS:
   (1)  FOR  TAXPAYERS  WHO  ARE CURRENTLY PRODUCING MEDICAL EQUIPMENT OR
 PERSONAL PROTECTIVE EQUIPMENT, AS DEFINED IN PARAGRAPH (A)  OF  SUBDIVI-
 SION TWO OF SECTION ONE HUNDRED FORTY-EIGHT OF THE STATE FINANCE LAW, OR
 WERE  PRODUCING  MEDICAL  EQUIPMENT OR PERSONAL PROTECTIVE EQUIPMENT, AS
 DEFINED IN PARAGRAPH (A) OF  SUBDIVISION  TWO  OF  SECTION  ONE  HUNDRED
 FORTY-EIGHT  OF  THE  STATE  FINANCE  LAW, IN CALENDAR YEAR TWO THOUSAND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14924-01-4
 S. 8853                             2

 TWENTY-FOUR OR IN JANUARY TWO THOUSAND TWENTY-FIVE, THE CREDIT SHALL  BE
 TWENTY  PERCENT  OF THE WHOLESALE MARKET VALUE OF SUCH SUPPLIES PRODUCED
 IN EXCESS OF THE MONTHLY AVERAGE PRODUCTION FOR THE TWO  THOUSAND  TWEN-
 TY-FOUR  CALENDAR  YEAR OR MONTHLY AVERAGE PRODUCTION EQUIVALENT IF SUCH
 SUPPLIES WERE NOT PRODUCED FOR THE ENTIRE CALENDAR YEAR; OR
   (2) FOR TAXPAYERS WHO HAVE NOT PRODUCED SUCH  SUPPLIES  PRIOR  TO  THE
 ENACTMENT  DATE  OF THIS SECTION, THIRTY PERCENT OF THE WHOLESALE MARKET
 VALUE OF SUCH SUPPLIES PRODUCED.
   (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 60.
   (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (A-3).
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 60 to read as follows:
   60. NEW YORK MANUFACTURING  ADEQUATE  DOMESTIC  EQUIPMENT  CREDIT  (NY
 MADE).  A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN SECTION FORTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED  BY  THIS
 ARTICLE. IN NO EVENT SHALL THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR
 ANY  TAXABLE  YEAR  REDUCE  THE  TAX  DUE FOR SUCH YEAR TO LESS THAN THE
 AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF  THIS  SECTION.
 HOWEVER,  IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
 TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF  CREDIT  THUS
 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.
   §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by  adding  a  new  clause  (li)  to  read  as
 follows:
 
 (LI) NEW YORK MANUFACTURING ADEQUATE AMOUNT OF CREDIT UNDER SUBDIVISION
 DOMESTIC EQUIPMENT CREDIT (NY MADE)  SIXTY OF SECTION TWO HUNDRED
 UNDER SUBSECTION (A-3)               TEN-B

   §  4. Section 606 of the tax law is amended by adding a new subsection
 (a-3) to read as follows:
   (A-3) NEW YORK MANUFACTURING ADEQUATE DOMESTIC  EQUIPMENT  CREDIT  (NY
 MADE).  A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
 IN SECTION FORTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED  BY  THIS
 ARTICLE.  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 EIGHT-
 Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
 THEREON.
   § 5. This act shall take effect immediately, and shall apply to  taxa-
 ble years beginning on or after January 1, 2025.