Bill S3175A-2011

Provides an exemption from the tax on sales and the compensating use tax for certain equipment purchased by companies located in college incubator facilities

Provides an exemption from the tax on sales and the compensating use tax for equipment, with a purchase price of five hundred dollars or greater, purchased by companies located in college incubator facilities or incubator facilities funded by the state.

Details

Actions

  • Jun 12, 2012: referred to ways and means
  • Jun 12, 2012: DELIVERED TO ASSEMBLY
  • Jun 12, 2012: PASSED SENATE
  • Jun 4, 2012: ADVANCED TO THIRD READING
  • May 31, 2012: 2ND REPORT CAL.
  • May 30, 2012: 1ST REPORT CAL.951
  • May 22, 2012: REPORTED AND COMMITTED TO FINANCE
  • Mar 2, 2012: PRINT NUMBER 3175A
  • Mar 2, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Feb 10, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 22, 2012
Ayes (8): Marcellino, Alesi, Golden, Nozzolio, Zeldin, Squadron, Diaz, Peralta

Memo

BILL NUMBER:S3175A

TITLE OF BILL: An act to amend the tax law, in relation to providing an exemption from the tax on sales and the compensating use tax for certain equipment purchased by companies located in academic incubator facilities

PURPOSE: This legislation is consistent with our state's general efforts to encourage the creation and growth of small business. Companies in incubators, by their nature, are small and have limited resources. This bill alleviates a small but significant tax burden on these firms by exempting them from sales tax on equipment that costs $500 or more.

SUMMARY OF PROVISIONS: Section 1 of the bill amends section 1115 of the tax law which provides companies that are located in an academic incubator facility with a sales tax exemption for the purchase of equipment with a price of $500 or more, and provides for the definition of an academic incubator.

JUSTIFICATION: During the last decade, one of the most effective state tools used to encourage job growth and creation has been its investment in high technology incubators. Incubator facilities provide researchers and entrepreneurs with the physical space and support staff necessary to help transfer the technology developed in the laboratory into a commercial product of value.

Efforts to develop research ides into viable products are usually done with limited resources. Costs of operation must be kept at a minimum to allow researchers the opportunity to advance their theories. Incubators certainly provide low cost office space, however, rents are not the only expense that these businesses incur. Equipment costs can also be a major impediment to the success of the business. To help reduce this cost this bill would exempt business. To help rescue this cost this bill would exempt businesses located in incubators from sales tax on equipment purchases. Taxing this equipment is contrary to the general concept of incubators, which is to reduce the cost associated with a start-up firm struggling to develop its ides/research into a product.

The amendment clarifies that the exemption is only for those companies located in an academic incubator facility and the equipment be used in the incubator facility.

LEGISLATIVE HISTORY: 2009-10: S.1997 2007-08 S.942B 2005-06 S.1415A 2003-04 S.485 2001-02: S.2341

FISCAL IMPLICATIONS: Implementation: There would be some loss of state revenue.

EFFECTIVE DATE: This act shall take effect September 1, 2012.


Text

STATE OF NEW YORK ________________________________________________________________________ S. 3175--A A. 5027--A 2011-2012 Regular Sessions S E N A T E - A S S E M B L Y February 10, 2011 ___________
IN SENATE -- Introduced by Sens. LAVALLE, ALESI, LARKIN, O'MARA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee IN ASSEMBLY -- Introduced by M. of A. SCHIMMINGER, SWEENEY, COLTON -- Multi-Sponsored by -- M. of A. KOLB, MAGEE -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to providing an exemption from the tax on sales and the compensating use tax for certain equipment purchased by companies located in academic incubator facilities THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) EQUIPMENT WITH A PURCHASE PRICE OF FIVE HUNDRED DOLLARS OR GREAT- ER PURCHASED BY ANY COMPANY LOCATED IN AN INCUBATOR FACILITY THAT IS ASSOCIATED WITH A COLLEGE, AS DEFINED IN SUBDIVISION TWO OF SECTION TWO OF THE EDUCATION LAW, OR AN INCUBATOR FACILITY THAT IS FUNDED BY THE STATE. SUCH EQUIPMENT MUST BE USED DIRECTLY AND PREDOMINATELY WITHIN SUCH INCUBATOR FACILITY. S 2. This act shall take effect September 1, 2012.

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