S T A T E   O F   N E W   Y O R K
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                                  1249

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 8, 2015
                               ___________

Introduced  by  M.  of A. LAVINE, PERRY -- read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation to providing  certain  benefits
  to veterans

  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 42  to  read
as follows:
  S 42. NATIONAL GUARD AND RESERVIST COMPENSATION TAX CREDIT. (A) ALLOW-
ANCE  OF  CREDIT.  A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A,
TWENTY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL  BE  ALLOWED  A  CREDIT
AGAINST SUCH TAX IN AN AMOUNT EQUAL TO ANY COMPENSATION WHICH IS PAID TO
AN EMPLOYEE WHO IS A MEMBER OF THE ORGANIZED MILITIA OR OF RESERVE FORC-
ES  OR RESERVE COMPONENTS OF THE ARMED FORCES OF THE UNITED STATES WHILE
SUCH EMPLOYEE IS ON ACTIVE DUTY AS SUCH TERM IS DEFINED IN THE  MILITARY
LAW.
  (B)  A  TAXPAYER  WISHING  TO  CLAIM A CREDIT UNDER THIS SECTION SHALL
ANNUALLY CERTIFY TO THE COMMISSIONER, ON FORMS SUPPLIED BY  THE  COMMIS-
SIONER, AMOUNTS PAID TO ELIGIBLE EMPLOYEES SERVING ON ACTIVE DUTY.
  (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9: SECTION 187-T.
  (2) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 49.
  (3) ARTICLE 22: SECTION 606: SUBSECTION (CCC).
  (4) ARTICLE 33: SECTION 1511: SUBDIVISION (A-1).
  S 2. The tax law is amended by adding a new section 187-t to  read  as
follows:
  S  187-T.  NATIONAL  GUARD  AND RESERVIST COMPENSATION TAX CREDIT.  1.
ALLOWANCE OF CREDIT. A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE
COMPUTED  AS  PROVIDED  IN  SUBDIVISION (A) OF SECTION FORTY-TWO OF THIS
CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03092-01-5
              

A. 1249                             2

  2. APPLICATION OF CREDIT. IN NO EVENT  SHALL  THE  CREDIT  UNDER  THIS
SECTION  BE  ALLOWED  IN  AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO
LESS THAN THE FIXED DOLLAR MINIMUM PRESCRIBED IN PARAGRAPH (D) OF SUBDI-
VISION ONE OF SECTION TWO HUNDRED TEN OF ARTICLE 9-A.  IF, HOWEVER,  THE
AMOUNT  OF  CREDIT  ALLOWABLE  UNDER  THIS  SECTION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT  DEDUCTIBLE  IN
SUCH  TAXABLE  YEAR  SHALL  BE  TREATED  AS  AN OVERPAYMENT OF TAX TO BE
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.
  S  3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49. NATIONAL GUARD AND RESERVIST COMPENSATION TAX CREDIT.  (A)  ALLOW-
ANCE  OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE  TAX  IMPOSED
BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN THE HIGHER AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION  TWO  HUNDRED  TEN  OF THIS ARTICLE.   HOWEVER, IF THE AMOUNT OF
CREDITS 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.
  S  4. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) NATIONAL GUARD AND RESERVIST COMPENSATION TAX CREDIT. (1) ALLOW-
ANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED  AS
PROVIDED  IN  SECTION FORTY-TWO 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 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  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
  S 5. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (a-1) to read as follows:
  (A-1) NATIONAL GUARD AND RESERVIST COMPENSATION TAX CREDIT. (1) ALLOW-
ANCE  OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE  TAX  IMPOSED
BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  MINIMUM FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION
FIFTEEN HUNDRED TWO OR SECTION FIFTEEN HUNDRED TWO-A  OF  THIS  ARTICLE.
HOWEVER, IF THE AMOUNT OF CREDITS 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

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PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S  6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
follows:

(XLI) CREDIT FOR NATIONAL            AMOUNT OF CREDIT UNDER
GUARD AND RESERVIST                  SUBDIVISION FORTY-NINE OF
COMPENSATION UNDER                   SECTION TWO HUNDRED TEN-B
SUBSECTION (CCC)

  S 7. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.