Bill S1495-2009

Provides for tax credits for employer sponsored tissue typing programs

Allows a credit against the corporation tax and personal income tax of an employer who sponsors tissue typing programs to identify bone marrow donors; provides that such credit shall be an amount equal to twenty-five percent of the expenses incurred by such employer in providing such programs.

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  • Jan 6, 2010: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Feb 2, 2009: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

 BILL NUMBER:  S1495

TITLE OF BILL : An act to amend the tax law, in relation to providing for business tax credits for a portion of the cost of employer sponsored tissue typing programs

PURPOSE : To provide a tax credit to certain employers who sponsor a tissue typing program.

SUMMARY OF PROVISIONS : Section 1 -- Adds a section 187-o to the Tax Law. Defines, for purposes of section 187-o, "employer" and "employee." This section of the bill also establishes a corporate tax credit of 25% for employers' tissue typing programs.

Section 2 -- Adds a new subdivision 20-a to section 210 of the Tax Law, Provides for a corporate franchise tax credit equal to 25% of expenses of an employer tissue typing program in any taxable year. Also defines, for purposes of this subdivision, the terms "employee" and "employer."

Section 3 -- Adds a new subsection (i-1) to Tax Law section 606. Establishes a tax credit for a shareholder of an S corporation in an amount equal to their pro rata share of the credits created under Section 2 of the bill.

Section 4-- Adds a new subsection (r-1) to Tax Law section 606. Provides for a personal income tax credit equal to 25% of expenses of a tissue typing donor program in any taxable year. Defines, for purposes of this subsection, the terms "employee" and "employer."

Section 5 -- Adds a subsection (u) to Tax Law section 1456. Provides for a banking corporations tax credit equal to 25% of expenses of a tissue typing donor program in any taxable year. Defines, for purposes of this subsection, the terms "employee" and "employer."

Section 6 -- Adds a subdivision (y) to Tax Law section 1511. Provides for an insurance corporations tax credit equal to 25% of expenses of a tissue typing program in any taxable year. Defines for the purposes of this subdivision, the terms "employee" and "employer."

Section 7 -- Effective date.

JUSTIFICATION : Because of recent advances in bone marrow transplants, people dying of blood-related diseases such as leukemia and a plastic anemia can be saved. Saved, that is, if they can find a donor whose bone marrow matches their own. Unfortunately, finding a match is not easy. On average, only about 1 in 20,000 unrelated people match closely enough for a marrow donation.

A national donor registry was begun in 1987 to assist in finding suitable donors from a pool of "typed" readily available volunteers. However, it is estimated that at least 1 million potential donors worldwide must be listed on registries if the majority of the 10,000 victims presently waiting for matches are to be saved. The national registry has approximately 90,000 potential donors listed and must continue to increase its pool of potential donors as rapidly as possible.

This legislation would provide much needed incentives to encourage employers to set up tissue typing programs, thus enlarging the registry's pool of potential bone marrow donors. LEGISLATIVE HISTORY : 1989-90 - S.7300 1991-92 - S.2442 1993-94 - S.2659 1995-96 - S.281 1997-98 - S.2068-A 1999 - S.2693 2000 - S.5880-A 2001-02 - S.433 2003-04 - S.1155-A 2005-06 - S.38-A. 2007-08 - S.1274/A.7601

FISCAL IMPLICATIONS : Undetermined.

EFFECTIVE DATE : This act shall take effect immediately and shall apply to taxable years beginning on and after the first of January next succeeding the date on which it shall have become a law.

Text

STATE OF NEW YORK ________________________________________________________________________ 1495 2009-2010 Regular Sessions IN SENATE February 2, 2009 ___________
Introduced by Sens. DeFRANCISCO, ALESI, GRIFFO, MORAHAN, SAMPSON, SKELOS, VOLKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Oper- ations AN ACT to amend the tax law, in relation to providing for business tax credits for a portion of the cost of employer sponsored tissue typing programs 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 187-o to read as follows: S 187-O. CREDIT FOR TISSUE TYPING DONOR PROGRAM. 1. FOR PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "EMPLOYEE" MEANS A PERSON WHO PERFORMS SERVICES FOR HIRE FOR AN EMPLOYER, FOR AN AVERAGE OF TWENTY OR MORE HOURS PER WEEK, AND INCLUDES ALL INDIVIDUALS EMPLOYED AT ANY SITE OWNED OR OPERATED BY AN EMPLOYER BUT SHALL NOT INCLUDE AN INDEPENDENT CONTRACTOR. (B) "EMPLOYER" MEANS A TAXPAYER THAT EMPLOYS TWENTY OR MORE EMPLOYEES AT AT LEAST ONE SITE AND INCLUDES AN INDIVIDUAL, CORPORATION, PARTNER- SHIP, ASSOCIATION, NONPROFIT ORGANIZATION, GROUP OF PERSONS, STATE, COUNTY, TOWN, CITY, SCHOOL DISTRICT, PUBLIC AUTHORITY OR OTHER GOVERN- MENTAL SUBDIVISION OF ANY KIND. 2. A TAXPAYER WHO IS AN EMPLOYER, SHALL BE ALLOWED A CREDIT TO BE CREDITED AGAINST THE TAX IMPOSED BY THIS ARTICLE, AFTER ALLOWANCE OF ANY OTHER THAN THE TAXES AND FEES IMPOSED BY SECTIONS ONE HUNDRED EIGHTY, ONE HUNDRED EIGHTY-ONE AND ONE HUNDRED EIGHTY-SIX-A OF THIS ARTICLE, FOR ANY TAXABLE YEAR IN AN AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF EXPENSES PAID OR INCURRED IN PROVIDING A PROGRAM FOR THE TISSUE TYPING OF EMPLOY- EES EMPLOYED IN THIS STATE WHO AGREE TO SERVE AS POTENTIAL BONE MARROW DONORS. PROGRAM EXPENSES ELIGIBLE FOR THE CREDIT INCLUDE PAYMENTS TO
HEALTH CARE PROVIDERS AND WAGES PAID TO EMPLOYEES FOR TIME REASONABLY RELATED TO BONE MARROW DONATION. 3. IN NO EVENT SHALL THE CREDIT PROVIDED FOR IN THIS SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE MINIMUM FIXED BY SECTION ONE HUNDRED EIGHTY-THREE OR ONE HUNDRED EIGHT- Y-FIVE OF THIS ARTICLE. 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 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAY- ER'S TAX FOR SUCH YEAR OR YEARS. S 2. Section 210 of the tax law is amended by adding a new subdivision 20-a to read as follows: 20-A. CREDIT FOR TISSUE TYPING DONOR PROGRAM. (A) FOR PURPOSES OF THIS SUBDIVISION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (I) "EMPLOYEE" MEANS A PERSON WHO PERFORMS SERVICES FOR HIRE FOR AN EMPLOYER, FOR AN AVERAGE OF TWENTY OR MORE HOURS PER WEEK, AND INCLUDES ALL INDIVIDUALS EMPLOYED AT ANY SITE OWNED OR OPERATED BY AN EMPLOYER BUT SHALL NOT INCLUDE AN INDEPENDENT CONTRACTOR. (II) "EMPLOYER" MEANS A PERSON OR ENTITY THAT EMPLOYS TWENTY OR MORE EMPLOYEES AT AT LEAST ONE SITE AND INCLUDES AN INDIVIDUAL, CORPORATION, PARTNERSHIP, ASSOCIATION, NONPROFIT ORGANIZATION, GROUP OF PERSONS, STATE, COUNTY, TOWN, CITY, SCHOOL DISTRICT, PUBLIC AUTHORITY OR OTHER GOVERNMENTAL SUBDIVISION OF ANY KIND. (B) A TAXPAYER WHO IS AN EMPLOYER, SHALL BE ALLOWED A CREDIT TO BE CREDITED AGAINST THE TAX IMPOSED BY THIS ARTICLE, AFTER ALLOWANCE OF ANY OTHER CREDIT PROVIDED UNDER THIS SECTION, FOR ANY TAXABLE YEAR IN AN AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF EXPENSES PAID OR INCURRED IN PROVIDING A PROGRAM FOR THE TISSUE TYPING OF EMPLOYEES EMPLOYED IN THIS STATE WHO AGREE TO SERVE AS POTENTIAL BONE MARROW DONORS. PROGRAM EXPENSES ELIGIBLE FOR THE CREDIT INCLUDE PAYMENTS TO HEALTH CARE PROVID- ERS AND WAGES PAID TO EMPLOYEES FOR TIME REASONABLY RELATED TO BONE MARROW DONATION. (C) IN NO EVENT SHALL THE CREDIT PROVIDED FOR IN THIS SUBDIVISION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE MINIMUM FIXED BY PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS PARA- GRAPH FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 3. Section 606 of the tax law is amended by adding a new subsection (i-1) to read as follows: (I-1) (1) IN THE CASE OF A SHAREHOLDER OF AN S CORPORATION WHERE THE ELECTION PROVIDED FOR IN SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY OF THIS ARTICLE IS IN EFFECT, THERE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AFTER ALLOWANCE OF ANY OTHER CREDIT PROVIDED UNDER THIS SECTION AND ANY CREDITS PERMITTED UNDER SECTIONS SIX HUNDRED TWENTY, SIX HUNDRED TWENTY-ONE AND SIX HUNDRED THIRTY-FIVE OF THIS ARTI- CLE. THE AMOUNT OF THE CREDIT SHALL BE HIS PRO RATA SHARE OF THE CRED- ITS UNDER SUBDIVISION TWENTY-A OF SECTION TWO HUNDRED TEN OF THIS CHAP- TER DETERMINED FOR THE CORPORATION FOR WHICH SUCH ELECTION IS IN EFFECT, FOR THE CORPORATION'S TAXABLE YEAR ENDING WITH OR WITHIN THE SHAREHOLD- ER'S TAXABLE YEAR. SUCH CREDIT SHALL NOT, HOWEVER, INCLUDE ANY CREDIT ARISING FOR A TAXABLE YEAR WHEN SUCH ELECTION WAS NOT IN EFFECT. (2) ANY REDETERMINATION OF CREDIT UPON DISPOSITION OR CESSATION OF QUALIFIED USE OF PROPERTY PURSUANT TO SUBDIVISION TWENTY-A OF SECTION
TWO HUNDRED TEN OF THIS CHAPTER SHALL BE ATTRIBUTED IN PRO RATA SHARES TO THE SHAREHOLDERS WHO WERE ALLOWED CREDIT UNDER THIS SUBSECTION WITH RESPECT TO SUCH PROPERTY, AND THE REDUCTION OF A SHAREHOLDER'S PROPOR- TIONATE STOCK INTEREST SHALL BE TREATED AS A DISPOSITION OF PROPERTY FOR WHICH A REDETERMINATION OF CREDIT UNDER SUCH SUBDIVISION IS REQUIRED WITH RESPECT TO SUCH SHAREHOLDER. S 4. Section 606 of the tax law is amended by adding a new subsection (r-1) to read as follows: (R-1) CREDIT FOR TISSUE TYPING PROGRAM. (1) FOR PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "EMPLOYEE" MEANS A PERSON WHO PERFORMS SERVICES FOR HIRE FOR AN EMPLOYER, FOR AN AVERAGE OF TWENTY OR MORE HOURS PER WEEK, AND INCLUDES ALL INDIVIDUALS EMPLOYED AT ANY SITE OWNED OR OPERATED BY AN EMPLOYER BUT SHALL NOT INCLUDE AN INDEPENDENT CONTRACTOR. (B) "EMPLOYER" MEANS A PERSON OR ENTITY THAT EMPLOYS TWENTY OR MORE EMPLOYEES AT AT LEAST ONE SITE AND INCLUDES AN INDIVIDUAL, CORPORATION, PARTNERSHIP, ASSOCIATION, NONPROFIT ORGANIZATION, GROUP OF PERSONS, STATE, COUNTY, TOWN, CITY, SCHOOL DISTRICT, PUBLIC AUTHORITY OR OTHER GOVERNMENTAL SUBDIVISION OF ANY KIND. (2) A TAXPAYER WHO IS AN EMPLOYER SHALL BE ALLOWED A CREDIT TO BE CREDITED AGAINST THE TAX IMPOSED BY THIS ARTICLE, AFTER ALLOWANCE OF ANY OTHER CREDIT PROVIDED UNDER THIS SECTION, FOR ANY TAXABLE YEAR IN AN AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF EXPENSES PAID OR INCURRED IN PROVIDING A PROGRAM FOR THE TISSUE TYPING OF EMPLOYEES EMPLOYED IN THIS STATE WHO AGREE TO SERVE AS POTENTIAL BONE MARROW DONORS. PROGRAM EXPENSES ELIGIBLE FOR THE CREDIT INCLUDE PAYMENTS TO HEALTH CARE PROVID- ERS AND WAGES PAID TO EMPLOYEES FOR TIME REASONABLY RELATED TO BONE MARROW DONATION. (3) IN NO EVENT SHALL THE CREDIT PROVIDED FOR IN THIS SUBSECTION BE ALLOWED IN EXCESS OF THE TAXPAYER'S TAX FOR SUCH YEAR. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 5. Section 1456 of the tax law is amended by adding a new subsection (u) to read as follows: (U) CREDIT FOR TISSUE TYPING PROGRAM. (1) FOR PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "EMPLOYEE" MEANS A PERSON WHO PERFORMS SERVICES FOR HIRE FOR AN EMPLOYER, FOR AN AVERAGE OF TWENTY OR MORE HOURS PER WEEK, AND INCLUDES ALL INDIVIDUALS EMPLOYED AT ANY SITE OWNED OR OPERATED BY AN EMPLOYER BUT SHALL NOT INCLUDE AN INDEPENDENT CONTRACTOR. (B) "EMPLOYER" MEANS A PERSON OR ENTITY THAT EMPLOYS TWENTY OR MORE EMPLOYEES AT AT LEAST ONE SITE AND INCLUDES AN INDIVIDUAL, CORPORATION, PARTNERSHIP, ASSOCIATION, NONPROFIT ORGANIZATION, GROUP OF PERSONS, STATE, COUNTY, TOWN, CITY, SCHOOL DISTRICT, PUBLIC AUTHORITY OR OTHER GOVERNMENTAL SUBDIVISION OF ANY KIND. (2) A TAXPAYER WHO IS AN EMPLOYER SHALL BE ALLOWED A CREDIT TO BE CREDITED AGAINST THE TAX IMPOSED BY THIS ARTICLE, AFTER ALLOWANCE OF ANY OTHER CREDIT PROVIDED UNDER THIS SECTION, FOR ANY TAXABLE YEAR IN AN AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF EXPENSES PAID OR INCURRED IN PROVIDING A PROGRAM FOR THE TISSUE TYPING OF EMPLOYEES EMPLOYED IN THIS STATE WHO AGREE TO SERVE AS POTENTIAL BONE MARROW DONORS. PROGRAM EXPENSES ELIGIBLE FOR THE CREDIT INCLUDE PAYMENTS TO HEALTH CARE PROVID- ERS AND WAGES PAID TO EMPLOYEES FOR TIME REASONABLY RELATED TO BONE MARROW DONATION.
(3) IN NO EVENT SHALL THE CREDIT PROVIDED FOR IN THIS SUBSECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE MINIMUM FIXED BY PARAGRAPH ONE OF SUBSECTION (B) OF SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 6. Section 1511 of the tax law is amended by adding a new subdivi- sion (y) to read as follows: (Y) CREDIT FOR TISSUE TYPING PROGRAM. (1) FOR PURPOSES OF THIS SUBDI- VISION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "EMPLOYEE" MEANS A PERSON WHO PERFORMS SERVICES FOR HIRE FOR AN EMPLOYER, FOR AN AVERAGE OF TWENTY OR MORE HOURS PER WEEK, AND INCLUDES ALL INDIVIDUALS EMPLOYED AT ANY SITE OWNED OR OPERATED BY AN EMPLOYER BUT SHALL NOT INCLUDE AN INDEPENDENT CONTRACTOR. (B) "EMPLOYER" MEANS A PERSON OR ENTITY THAT EMPLOYS TWENTY OR MORE EMPLOYEES AT AT LEAST ONE SITE AND INCLUDES AN INDIVIDUAL, CORPORATION, PARTNERSHIP, ASSOCIATION, NONPROFIT ORGANIZATION, GROUP OF PERSONS, STATE, COUNTY, TOWN, CITY, SCHOOL DISTRICT, PUBLIC AUTHORITY OR OTHER GOVERNMENTAL SUBDIVISION OF ANY KIND. (2) A TAXPAYER WHO IS AN EMPLOYER SHALL BE ALLOWED A CREDIT TO BE CREDITED AGAINST THE TAX IMPOSED BY THIS ARTICLE, AFTER ALLOWANCE OF ANY OTHER CREDIT PROVIDED UNDER THIS SECTION, FOR ANY TAXABLE YEAR IN AN AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF EXPENSES PAID OR INCURRED IN PROVIDING A PROGRAM FOR THE TISSUE TYPING OF EMPLOYEES EMPLOYED IN THIS STATE WHO AGREE TO SERVE AS POTENTIAL BONE MARROW DONORS. PROGRAM EXPENSES ELIGIBLE FOR THE CREDIT INCLUDE PAYMENTS TO HEALTH CARE PROVID- ERS AND WAGES PAID TO EMPLOYEES FOR TIME REASONABLY RELATED TO BONE MARROW DONATION. (3) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 7. This act shall take effect immediately and shall apply to taxable years beginning on and after the first of January next succeeding the date on which it shall have become a law.

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