Bill S37A-2013

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.

Details

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  • Jan 23, 2014: PRINT NUMBER 37A
  • Jan 23, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S37A

TITLE OF BILL: An act to amend the tax law, in relation to establishing business franchise and personal income tax credits for certain businesses which contract with the state or political subdivisions thereof and in unrelated contracts, also with minority and women-owned business enterprises

PURPOSE:

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.

SUMMARY OF PROVISIONS:

Section 1 amends section 210 the tax law by adding a new subdivision 48 creating a business franchise tax credit for businesses that contract with both the state and, in a separate and unrelated transaction, with a women or minority owned business.

Sections 2 and 3 establish a personal income tax credit for tax payers who contract with both the state and, in a separate and unrelated transaction, with a women or minority owned business.

Section 4 establishes the effective date.

JUSTIFICATION:

New York has been a longtime leader in the promotion of minority and women owned business enterprises ("MWBEs"). The core goals of the State's efforts are 1) equality of economic opportunities for MWBEs and 2) elimination of barriers to their participation in state contracts. The problem is that the State has focused on the latter as the sole means of achieving the former. In order to help build fully self-sustaining minority and women owned businesses, the State must also do its part to encourage private entities to contract with MWBEs. This legislation would incentivize the private sector to build long-term business relationships with MWBEs by offering business franchise and personal income tax credits for companies and individuals that contract with both MWBEs and the State. State contracts are critical for initial growth, but insufficient for long-term success. This legislation would help build grow existing MWBEs while paving the way for the next generation.

LEGISLATIVE HISTORY:

2011-12: S.6754

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to tax years commencing on or after such date.


Text

STATE OF NEW YORK ________________________________________________________________________ 37--A 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment 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 committee AN ACT to amend the tax law, in relation to establishing business fran- chise and personal income tax credits for certain businesses which contract with the state or political subdivisions thereof and in unre- lated contracts, also with minority and women-owned business enter- prises 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 48 to read as follows: 48. MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT. (A) GENERAL. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN- OWNED BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS OR SERVICES. THE CREDIT PROVIDED FOR IN THIS SUBDIVISION SHALL BE ALLOWED WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID TO THE MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE. (B) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL MEAN: (I) "GOVERNMENT AGENCY" MEANS A STATE AGENCY OR A STATE AUTHORITY AS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU- TIVE LAW, OR A POLITICAL SUBDIVISION AS DEFINED IN SUBDIVISION ONE OF SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW. (II) "MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS A MINORITY-OWNED BUSINESS ENTERPRISE AS DEFINED IN SUBDIVISION SEVEN OF SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS
ENTERPRISE AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW. (C) COMPUTATION. THE CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL BE EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI- TY OR WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT SUCH CONTRACT WAS NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW OR ANY OTHER PROVISION OF LAW RELATING TO THE AFFIRMATIVE ACTION, AND THE TAXPAYER IS NOT A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE. FURTHERMORE, THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED FIVE PERCENT OF ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF GOODS OR SERVICES. S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxvii) to read as follows: (XXXVII) MINORITY AND AMOUNT OF CREDIT WOMEN-OWNED BUSINESS UNDER SUBDIVISION EMPLOYMENT INCENTIVE FORTY-EIGHT OF CREDIT UNDER SECTION TWO SUBSECTION (U) HUNDRED TEN S 3. Section 606 of the tax law is amended by adding a new subsection (u) to read as follows: (U) MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT. (1) GENERAL. A TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS OR SERVICES. THE CREDIT PROVIDED FOR IN THIS SUBSECTION SHALL BE ALLOWED WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID TO THE MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE. (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL MEAN: (I) "GOVERNMENT AGENCY" MEANS A STATE AGENCY OR A STATE AUTHORITY AS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU- TIVE LAW, OR A POLITICAL SUBDIVISION AS DEFINED IN SUBDIVISION ONE OF SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW. (II) "MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS A MINORITY-OWNED BUSINESS ENTERPRISE AS DEFINED IN SUBDIVISION SEVEN OF SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS ENTERPRISE AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW. (3) COMPUTATION. THE CREDIT AUTHORIZED BY THIS SUBSECTION SHALL BE EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI- TY OR WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT SUCH CONTRACT WAS NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW OR ANY OTHER PROVISION OF LAW RELATING TO AFFIRMATIVE ACTION, AND THE TAXPAYER IS NOT A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE. FURTHERMORE, THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED FIVE PERCENT OF ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF GOODS OR SERVICES. 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 and shall apply to tax years commencing on or after such date.

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