Bill S3850-2013

Provides a tax credit for businesses in heightened flood risk zones that purchase flood insurance

Provides a tax credit for businesses in a heightened flood risk zone that purchase flood insurance: 75% of cost for 2014, 50% of cost for 2015, and 25% of cost for 2016.

Details

Actions

  • Jun 17, 2014: referred to ways and means
  • Jun 17, 2014: DELIVERED TO ASSEMBLY
  • Jun 17, 2014: PASSED SENATE
  • Jun 17, 2014: ORDERED TO THIRD READING CAL.1434
  • Jun 17, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • May 13, 2014: REPORTED AND COMMITTED TO FINANCE
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • Jun 17, 2013: referred to ways and means
  • Jun 17, 2013: DELIVERED TO ASSEMBLY
  • Jun 17, 2013: PASSED SENATE
  • Jun 17, 2013: ORDERED TO THIRD READING CAL.1381
  • Jun 17, 2013: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Feb 22, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 13, 2014
Ayes (9): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Zeldin, Hoylman, Diaz, Squadron

Memo

BILL NUMBER:S3850

TITLE OF BILL: An act to amend the tax law, in relation to providing a tax credit for businesses that purchase flood insurance; and providing for the repeal of such provisions upon expiration thereof

PURPOSE OR GENERAL IDEA OF BILL: To provide state sponsored incentives through tax credits for businesses that currently do not have flood insurance, but would like to purchase these insurance coverages.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amend Tax Law § 210 to create a corporate franchise tax credit for affected businesses that purchase flood insurance. Provides that the credit shall be equal to: (i) seventy-five percent of the cost of flood insurance for the business on or after January 1, 2014; (ii) fifty percent of the cost of flood insurance for the business on or after January 1, 2015; and (iii) twenty-five percent of the cost of flood insurance for business on or after January 1, 2016. This annual tax credit will expire on December 31, 2016.

Sections 2 and 3: Amend Tax Law § 606 to create a personal income tax credit for affected businesses that purchase flood insurance. Provides that the credit shall be equal to: (i) seventy-five percent of the cost of flood insurance for the business on or after January 1, 2014; (ii) fifty percent of the cost of flood insurance for the business on or after January 1, 2015; and (iii) twenty-five percent of the cost of flood insurance for business on or after January 1, 2016. This annual tax credit will expire on December 31, 2016.

JUSTIFICATION:

In October 2012, due to Superstorm Sandy, extensive flooding occurred across New York State and caused severe damage in many downstate communities. The widespread flooding led to many business structures being completely destroyed. Further, such businesses had to cease or curtail operations which led to job losses. The negative impacts of this disaster will be seen in New York for many years to come. This legislation provides corporate franchise tax and personal income tax credits for businesses that purchase flood insurance. The credit would be used as an incentive for businesses to purchase flood insurance to ensure that such business will be covered in the future in the event of another flooding disaster.

This legislation specifically targets businesses located in heightened flood risk zones and that do not currently have flood insurance. Heightened flood risk zones have been defined by the Federal Emergency Management Agency (FEMA) and are generally defined as geographic areas that FEMA has defined according to varying levels of flood risk. Each zone reflects the severity or type of flooding in the area.

PRIOR LEGISLATIVE HISTORY: None

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

60 days after it shall become law, that any necessary rules and regulations necessary for implementation are authorized immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3850 2013-2014 Regular Sessions IN SENATE February 22, 2013 ___________
Introduced by Sens. SAVINO, CARLUCCI, KLEIN, SMITH, VALESKY -- 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 providing a tax credit for businesses that purchase flood insurance; and providing for the repeal of such provisions upon expiration thereof 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. TAX CREDIT FOR BUSINESSES WHICH PURCHASE FLOOD INSURANCE. (A) A QUALIFIED TAXPAYER SHALL BE ALLOWED AN ANNUAL CREDIT FOR THE PURCHASE OF FLOOD INSURANCE. THE CREDIT SHALL BE EQUAL TO: (I) SEVENTY-FIVE PERCENT OF THE COST OF FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN; (II) FIFTY PERCENT OF THE COST OF FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN; AND (III) TWENTY-FIVE PERCENT OF THE COST OF FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN. (B) IN NO EVENT SHALL THE CREDIT UNDER THIS SUBDIVISION REDUCE THE TAX PAYABLE TO LESS THAN THE DOLLAR AMOUNT FIXED AS A MINIMUM TAX BY PARA- GRAPH (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR WOULD HAVE REDUCED THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT USED IN SUCH TAXABLE YEAR MAY 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. (C) FOR PURPOSES OF THIS SUBDIVISION, "QUALIFIED TAXPAYER" SHALL INCLUDE, BUT NOT BE LIMITED TO BUSINESSES OPERATING IN OR OUT OF A RESI- DENCE WHOSE BUSINESS IS LOCATED WITHIN A HEIGHTENED FLOOD RISK ZONE AND DOES NOT CURRENTLY HAVE FLOOD INSURANCE.
S 2. Section 606 of the tax law is amended by adding a new subsection (s-1) to read as follows: (S-1) CREDIT FOR ANNUAL BUSINESS PURCHASE OF FLOOD INSURANCE. (1) A QUALIFIED TAXPAYER SHALL BE ALLOWED AN ANNUAL CREDIT AS HEREINAFTER PROVIDED AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE PURCHASE OF FLOOD INSURANCE. THE AMOUNT OF THE CREDIT SHALL BE: (I) SEVENTY-FIVE PERCENT OF THE COST OF FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN; (II) FIFTY PERCENT OF THE COST OF FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN; AND (III) TWENTY-FIVE PERCENT OF THE COST OF FLOOD INSURANCE FOR THE BUSINESS ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN. (2) FOR PURPOSES OF THIS SUBSECTION, "QUALIFIED TAXPAYER" SHALL INCLUDE, BUT NOT BE LIMITED TO BUSINESSES OPERATING IN OR OUT OF A RESI- DENCE WHOSE BUSINESS IS LOCATED WITHIN A HEIGHTENED FLOOD RISK ZONE AND DOES NOT CURRENTLY HAVE FLOOD INSURANCE. (3) IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY 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) PURCHASE OF FLOOD INSURANCE AMOUNT OF CREDIT UNDER BY BUSINESSES UNDER SUBSECTION (S-1) SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED TEN S 4. The commissioner of taxation and finance shall prescribe rules and regulations necessary to establish the criteria for a heightened flood risk zone and for the implementation of the tax credit for busi- nesses which purchase flood insurance provided by this act. S 5. This act shall take effect on the sixtieth day after it shall have become a law and shall expire December 31, 2016, when upon such date the provisions of this act shall be deemed repealed.

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