Senate Bill S4312

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4312
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 a combat veter-
   an tax credit for entrepreneurs
 
   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 50 to read
 as follows:
   § 50.  COMBAT VETERAN ENTREPRENEUR CREDIT. (A) ALLOWANCE OF CREDIT.  A
 COMBAT  VETERAN  ENTREPRENEUR,  WHICH  IS  SUBJECT  TO TAX UNDER ARTICLE
 NINE-A OR TWENTY-TWO OF THIS CHAPTER AND CREATES A NEW  BUSINESS,  SHALL
 BE  ALLOWED A CREDIT AGAINST SUCH TAX. THE CREDIT SHALL BE EQUAL TO FIVE
 HUNDRED DOLLARS.  THE TOTAL AMOUNT OF CREDIT TO  BE  PROVIDED  STATEWIDE
 SHALL NOT EXCEED FIVE MILLION DOLLARS IN A TAXABLE YEAR.
   (B)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1) "COMBAT VETERAN" SHALL MEAN ANY INDIVIDUAL WHO IS  A  RESIDENT  OF
 THIS  STATE  WHO  HAS SERVED IN THE ARMED FORCES OF THE UNITED STATES IN
 HOSTILITIES THAT OCCURRED AFTER DECEMBER SIXTH, NINETEEN HUNDRED  FORTY-
 FIVE,  AS  EVIDENCED  BY  THEIR RECEIPT OF AN ARMED FORCES EXPEDITIONARY
 MEDAL, NAVY EXPEDITIONARY MEDAL, OR MARINE CORPS EXPEDITIONARY MEDAL AND
 WHO WAS DISCHARGED UNDER HONORABLE CONDITIONS, INCLUDING BUT NOT LIMITED
 TO HONORABLE DISCHARGE, DISCHARGE UNDER HONORABLE CONDITIONS, OR GENERAL
 DISCHARGE.
   (2) "ENTREPRENEUR" SHALL MEAN ANY PERSON WHO ORGANIZES AND OPERATES  A
 BUSINESS OR BUSINESSES.
   (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 28.
   (2) ARTICLE 22: SECTION 606, SUBSECTION (A-3).
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05494-01-5
 S. 4312                             2
              

 
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 28 to read as follows:
   28.  COMBAT  VETERAN  ENTREPRENEUR CREDIT. (A) ALLOWANCE OF CREDIT.  A
 COMBAT VETERAN ENTREPRENEUR WILL BE ALLOWED A CREDIT, TO BE COMPUTED  AS
 PROVIDED  IN  SECTION  FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY
 THIS ARTICLE.
   (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPH (D)  OF  SUBDIVI-
 SION  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 THUS NOT DEDUCTIBLE
 IN  SUCH  TAXABLE  YEAR  WILL  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 WILL BE PAID THEREON.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (a-3) to read as follows:
   (A-3) COMBAT VETERAN ENTREPRENEUR CREDIT. (1) A COMBAT VETERAN  ENTRE-
 PRENEUR  WILL  BE  ALLOWED A CREDIT, TO THE EXTENT ALLOWED UNDER SECTION
 FIFTY OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS WILL 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 WILL  BE
 PAID THEREON.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding  a  new  clause  (lii)  to  read  as
 follows:
 (LII) COMBAT VETERAN ENTREPRENEUR    AMOUNT OF CREDIT UNDER
 CREDIT UNDER SUBSECTION (A-3)        SUBDIVISION TWENTY-EIGHT OF
                                      SECTION TWO HUNDRED TEN-B
   § 5. This act shall take effect immediately and shall apply to taxable
 years commencing on and after January 1, 2025.