S1694-2013 - NY Senate Open Legislation - Creates a small business electric energy tax credit

Creates a small business electric energy tax credit; the term "business related electricity usage" shall refer to electrical power usage to further the economic activity of the taxpayer at the primary business location that is clearly delimited from any shared electrical power usage cost.

Sponsor: RANZENHOFER

Co-sponsor(s): BONACIC, DEFRANCISCO, FELDER, LARKIN, MAZIARZ, O'MARA, YOUNG

Committee: FINANCE
Law Section: Tax Law
Law: Amd SS210 & 606, Tax L

S1694-2013 Actions

May 21, 2013: REPORTED AND COMMITTED TO FINANCE
Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S1694-2013 Meetings

Investigations and Government Operations: May 21, 2013

S1694-2013 Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 21, 2013

Ayes (7): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Zeldin, Hoylman
Ayes W/R (1): Squadron
Nays (1): Diaz

S1694-2013 Memo

BILL NUMBER:S1694

TITLE OF BILL:  An act to amend the tax law, in relation to a small
business electric energy tax credit

SUMMARY OF PROVISIONS: This bill amends the Tax Law.

Section 1 amends Section 210 of the Tax Law, relating to franchise
taxes on business corporations, by adding a new subdivision 46
creating a small business electric energy tax credit. The section
defines eligibility and other restrictions and requirements, and
provides for a tax credit equal to the product of two cents per
kilowatt hour for all business-related electricity usage at the
taxpayer's primary business location, with a cap of S 1,000 per
taxable year.

Section 2 amends Section 606 of the Tax Law, relating to personal
income tax, by adding a new subsection (vv). This subsection provides
for a small business electric energy tax credit. The section defines
eligibility and other restrictions and requirements, and provides for
a tax credit equal to the product of two cents per kilowatt hour for
all business-related electricity usage at the taxpayer's primary
business location.

Section 3 amends subparagraph (B) of subdivision 1 of subsection (i)
of Section 606 of the tax law, relating to S corporations, adds the
small business electricity energy credit under subsection (vv).

Section 4 provides that this act shall take effect on the first of
January next succeeding the date on which it shall have become law and
shall apply for taxable years beginning such date.

PURPOSE AND JUSTIFICATION:  Small businesses are critical to the
economic health and growth of our state. Small businesses are a
powerful engine of new job growth, and a source of innovation that
will keep our state competitive around the world. Energy costs have
risen faster than many small businesses could have predicted or
planned for, and as a result, many find themselves under financial
pressure.

The bill applies to companies with less than 20 employees. It is
estimated that 386,000 businesses employing 1.4 million New Yorkers
will be impacted by this legislation. This bill will help to offset
these increased costs by offering a tax credit, and help to ensure
that our small businesses will remain healthy and productive. These
tax credits will also help to hold overhead down and make our small
businesses better able to compete both nationally and internationally.

PRIOR LEGISLATIVE HISTORY:  2006 - S.6566 - PASSED SENATE 2007 -
S.1671 -- PASSED SENATE 2008 - S.1671 -- PASSED SENATE/Ways & Means
2010 - S.2987 -- INVESTIGATIONS 2011-12 - S.3191-A/A.10122 --
RULES/Ways & Means

FISCAL IMPLICATIONS: To be determined.


EFFECTIVE DATE: This act shall take effect one the first day of
January next succeeding the date on which it becomes law.

S1694-2013 Text


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

                                    1694

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sens. RANZENHOFER, BONACIC, DeFRANCISCO, LARKIN, MAZIARZ
    -- read twice and ordered printed, and when printed to be committed to
    the Committee on Investigations and Government Operations

  AN ACT to amend the tax law, in relation to a  small  business  electric
    energy tax credit

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Section 210 of the tax law  is  amended  by  adding  a  new
  subdivision 46 to read as follows:

    46.  SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (A) A TAXPAYER THAT IS
  ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN PARAGRAPH (B) OF THIS SUBDI-
  VISION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTI-
  CLE.    THE  AMOUNT  OF  THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF TWO
  CENTS PER KILOWATT HOUR FOR ALL BUSINESS RELATED  ELECTRICITY  USAGE  AT
  THE  TAXPAYER'S  PRIMARY  BUSINESS  LOCATION UP TO A ONE THOUSAND DOLLAR
  LIMIT DURING THE TAXABLE YEAR.
    (B) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO  MORE  THAN  NINETEEN  FULL
  TIME  EQUIVALENT  EMPLOYEES  IN  NEW  YORK  STATE, INCLUDING ANY RELATED
  MEMBERS OR  AFFILIATES,  (II)  NOT  BE  A  SOLE-PROPRIETORSHIP  IF  SUCH
  SOLE-PROPRIETOR'S  PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH
  SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
  ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
  ING ANY ALLOCATION OR AWARD PURSUANT TO  ANY  PROGRAM  AUTHORIZED  UNDER
  ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
    (C)  (I)  THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL REFER TO
  ELECTRICAL POWER USAGE USED TO FURTHER  THE  ECONOMIC  ACTIVITY  OF  THE
  TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
  ANY  SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY BUSINESS
  LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE  STATE
  OF  NEW  YORK  WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC ACTIVITY IS

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02563-02-3

 S. 1694                             2

  GENERATED OR COORDINATED THROUGH.   (III)  THE  TERM  "RELATED  MEMBERS"
  SHALL  HAVE  THE  SAME  MEANING  AS  SET FORTH IN CLAUSES (A) AND (B) OF
  SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION  NINE  OF  SECTION  TWO
  HUNDRED  EIGHT  OF  THIS ARTICLE, AS AMENDED BY SECTION ONE OF PART M OF
  CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO  THOUSAND  THREE,  AND
  THE  TERM "AFFILIATES" SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF
  THE SAME AFFILIATED GROUP (AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF
  THE INTERNAL REVENUE CODE) AS THE TAXPAYER.
    (D) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
  THE TAXPAYER FOR BUSINESS RELATED ELECTRICITY USAGE DURING  THE  TAXPAY-
  ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
  PROVIDED  TO  THE  TAXPAYER  BY THE TAXPAYER'S ELECTRICITY POWER SERVICE
  PROVIDER.
    (E) THE CREDIT ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
  SHALL  NOT  REDUCE  THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF
  THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION  ONE  OF
  THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDI-
  VISION  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 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 EIGHT-
  Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
  EON.
    S 2. Section 606 of the tax law is amended by adding a new  subsection
  (vv) to read as follows:

    (VV) SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (1) A TAXPAYER THAT IS
  ELIGIBLE  UNDER  THE  LIMITATIONS  SPECIFIED  IN  PARAGRAPH  TWO OF THIS
  SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED  BY  THIS
  ARTICLE.  THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE PRODUCT (OR PRO
  RATA SHARE OF THE PRODUCT IN THE CASE OF A PARTNERSHIP) OF TWO CENTS PER
  KILOWATT HOUR FOR ALL BUSINESS RELATED ELECTRICITY USAGE AT THE  TAXPAY-
  ER'S  PRIMARY BUSINESS LOCATION UP TO A ONE THOUSAND DOLLAR LIMIT DURING
  THE TAXABLE YEAR.
    (2) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO  MORE  THAN  NINETEEN  FULL
  TIME  EQUIVALENT  EMPLOYEES  IN  NEW  YORK  STATE, INCLUDING ANY RELATED
  MEMBERS OR AFFILIATES, (II) SHALL NOT BE A SOLE-PROPRIETORSHIP  IF  SUCH
  SOLE-PROPRIETOR'S  PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH
  SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
  ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
  ING ANY ALLOCATION OR AWARD PURSUANT TO  ANY  PROGRAM  AUTHORIZED  UNDER
  ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
    (3)  (I)  THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL REFER TO
  ELECTRICAL POWER USAGE USED TO FURTHER  THE  ECONOMIC  ACTIVITY  OF  THE
  TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
  ANY  SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY BUSINESS
  LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE  STATE
  OF  NEW  YORK  WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC ACTIVITY IS
  GENERATED OR COORDINATED THROUGH. (III) THE TERM "RELATED MEMBERS" SHALL
  HAVE THE SAME MEANING AS SET FORTH IN CLAUSES (A) AND  (B)  OF  SUBPARA-
  GRAPH  ONE  OF  PARAGRAPH (O) OF SUBDIVISION NINE OF SECTION TWO HUNDRED
  EIGHT OF THIS CHAPTER, AS AMENDED BY SECTION ONE OF PART  M  OF  CHAPTER
  SIX  HUNDRED  EIGHTY-SIX OF THE LAWS OF TWO THOUSAND THREE, AND THE TERM
  "AFFILIATES" SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF THE  SAME
  AFFILIATED  GROUP  (AS  DEFINED  IN  SECTION FIFTEEN HUNDRED FOUR OF THE
  INTERNAL REVENUE CODE) AS THE TAXPAYER.

 S. 1694                             3

    (4) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
  THE TAXPAYER FOR BUSINESS RELATED ELECTRICITY USAGE DURING  THE  TAXPAY-
  ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
  PROVIDED  TO  THE  TAXPAYER  BY THE TAXPAYER'S ELECTRICITY POWER SERVICE
  PROVIDER.
    (5)  IF  THE  AMOUNT  OF  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 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
  of  the  tax  law  is  amended  by adding a new clause (xxxv) to read as
  follows:


  (XXXV) SMALL BUSINESS ELECTRIC       QUALIFYING ELECTRICITY USAGE
  ENERGY TAX CREDIT                    UNDER SUBDIVISION FORTY-SIX
  UNDER SUBSECTION (VV)                OF SECTION TWO HUNDRED TEN
    S 4. This act shall take effect on the first of January next  succeed-
  ing the date on which it shall have become a law.

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S1694-2013: Creates a small business electric energy tax credit

S1694-2013 Actions

S1694-2013 Meetings

S1694-2013 Votes

S1694-2013 Memo

S1694-2013 Text

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