Bill S3752-2011

Relates to extending the dates of application of the investment tax credit

Relates to extending the dates of application of the investment tax credit.

Details

  • Versions
  • Sponsor:
  • Multi-sponsor(s):
  • Co-sponsor(s):
  • Committee:
  • Law Section:
  • Law:

Actions

  • Jan 9, 2012: RECOMMIT, ENACTING CLAUSE STRICKEN
  • Jan 4, 2012: REFERRED TO BANKS
  • Mar 9, 2011: REPORTED AND COMMITTED TO FINANCE
  • Mar 3, 2011: REFERRED TO BANKS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Banks - Mar 9, 2011
Ayes (16): Griffo, Farley, Bonacic, DeFrancisco, Gallivan, Golden, Johnson, O'Mara, Marcellino, Ranzenhofer, Smith, Breslin, Rivera, Carlucci, Savino, Valesky
Ayes W/R (3): Diaz, Kruger, Serrano

Memo

BILL NUMBER:S3752

TITLE OF BILL:

An act to amend the banking law, in relation to eligibility of investment funds for tax credits; to amend chapter 56 of the laws of 1998, amending the tax law and other laws relating to extending the dates of application of the investment tax credit under articles 9-A, 22 and 32 of the tax law; and to amend chapter 63 of the laws of 2000, amending the tax law and other laws relating to extending the dates of application of the investment tax credit under article 33 of the tax law, in relation to extending the effectiveness thereof

PURPOSE:

This bill would extend the investment tax credit for four years for certain financial services taxpayers.

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend section 235 of the banking law to provide that investments of funds would be subject to taxation under articles 9-A, 22, 32 and 33 of the tax law.

Section 2 of this bill would extend the end date of the period during which qualifying property may be placed in service to qualify for the investment tax credits applicable to financial services taxpayers under Tax Law Articles 9-A, 22 and 32 from October 1, 2011 to October 1, 2015.

Section 3 of the bill extends the end date for the period during which qualifying property may be placed in service to qualify for the investment tax credit applicable to financial services taxpayers under Tax Law Article 33 from October 1, 2011 to October 1, 2015.

JUSTIFICATION:

The financial services investment tax credit has allowed taxpayers in the financial services industry to invest in property and buildings in New York. In order to be eligible for the tax credit, the property must be principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with transactions involving stocks, bonds, and other securities. Property that is principally used in the ordinary course of the taxpayer's business of providing investment advisory services for loan origination services or a regulated investment company in connection with the purchase or sale of securities is also eligible for the tax credit.

Taxpayers only qualify for the tax credit if all or substantially all of the employees performing the administrative or support functions relating to the property are located in New York State.

The credit was last extended in 2008. Another four year extension of the tax credit will ensure continued investment in New York property by taxpayers of the financial services industry.

LEGISLATIVE HISTORY:

This is a new bill for 2011.

FISCAL IMPLICATIONS:

The annual revenue foregone due to the extension of this tax credit has been included in the Executive Budget.

EFFECTIVE DATE:

This bill takes effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3752 2011-2012 Regular Sessions IN SENATE March 3, 2011 ___________
Introduced by Sens. GRIFFO, FARLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to eligibility of invest- ment funds for tax credits; to amend chapter 56 of the laws of 1998, amending the tax law and other laws relating to extending the dates of application of the investment tax credit under articles 9-A, 22 and 32 of the tax law; and to amend chapter 63 of the laws of 2000, amending the tax law and other laws relating to extending the dates of applica- tion of the investment tax credit under article 33 of the tax law, in relation to extending the effectiveness thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 235 of the banking law is amended by adding a new subdivision 32 to read as follows: 32. INVESTMENTS OF FUNDS MADE PURSUANT TO THIS SECTION SHALL BE TAXA- BLE IN ACCORDANCE WITH ARTICLES NINE-A, TWENTY-TWO, THIRTY-TWO AND THIR- TY-THREE OF THE TAX LAW AND SHALL BE ELIGIBLE FOR AN INVESTMENT TAX CREDIT, UNDER SUCH ARTICLES AS APPLICABLE. S 2. Paragraph c of subdivision 2 of section 124 of part A of chapter 56 of the laws of 1998, amending the tax law and other laws relating to extending the dates of application of the investment tax credit under articles 9-A, 22 and 32 of the tax law, as amended by section 1 of part YY-1 of chapter 57 of the laws of 2008, is amended to read as follows: c. Sections fifteen through twenty-seven of this act shall apply to property placed in service on or after October 1, 1998 and before Octo- ber 1, [2011] 2015. S 3. Section 2 of part L of chapter 63 of the laws of 2000, amending the tax law and other laws relating to extending the dates of applica- tion of the investment tax credit under article 33 of the tax law, as amended by section 2 of part YY-1 of chapter 57 of the laws of 2008, is amended to read as follows:
S 2. This act shall take effect immediately and shall apply to proper- ty placed in service on or after January 1, 2002 and before October 1, [2011] 2015. S 4. This act shall take effect immediately.

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