Bill S7196B-2013

Relates to taxpayers filing under article twenty-two of the tax law to include for the purposes of the tax factor all business income attributable to a QEZE business

Relates to taxpayers filing under article twenty-two of the tax law to include for the purposes of the tax factor all business income attributable to a QEZE business.

Details

Actions

  • Jun 19, 2014: returned to senate
  • Jun 19, 2014: passed assembly
  • Jun 19, 2014: ordered to third reading rules cal.471
  • Jun 19, 2014: substituted for a9220c
  • Jun 18, 2014: referred to ways and means
  • Jun 18, 2014: DELIVERED TO ASSEMBLY
  • Jun 18, 2014: PASSED SENATE
  • Jun 18, 2014: ORDERED TO THIRD READING CAL.1492
  • Jun 18, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jun 6, 2014: PRINT NUMBER 7196B
  • Jun 6, 2014: AMEND AND RECOMMIT TO FINANCE
  • Jun 2, 2014: REPORTED AND COMMITTED TO FINANCE
  • May 19, 2014: PRINT NUMBER 7196A
  • May 19, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • May 5, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 18, 2014
Ayes (17): Skelos, Libous, Bonacic, Carlucci, Farley, Flanagan, Hannon, Larkin, LaValle, Marcellino, Maziarz, Nozzolio, Seward, Valesky, Little, Breslin, Montgomery
Ayes W/R (2): Stewart-Cousins, Perkins
Nays (5): Dilan, Hassell-Thompson, Krueger, Parker, Gianaris
Excused (1): Espaillat

Memo

BILL NUMBER:S7196B

TITLE OF BILL: An act to amend the tax law, in relation to QEZE tax reduction credits

PURPOSE OR GENERAL IDEA OF BILL: To encourage the growth of New York State manufacturing by allowing the inclusion of all income derived from a business for the purposes of claiming the QEZE tax credit.

SUMMARY OF PROVISIONS:

Section 1 - Paragraph 1 of subdivision (f) of section 16 of the Tax Law, as amended by section 14 of part CC of Chapter 85 of the Laws of 2002, is amended to include all business income as income allotted for the purposes of calculating the tax factor under article 22 of this chapter.

Section 2 - This act shall take effect immediately.

JUSTIFICATION: The QEZE tax credit was designed to encourage employment in New York State. An allocation between New York and non-New York income was not included in the original statute. The allocation serves no purpose because the tax credit is designed to encourage employment in New York in manufacturing, not to encourage sales of manufactured products in New York. In fact, our economy benefits when New York manufacturers are able to sell overseas. The Tax Department interpretation of the QEZE discourages manufacturing for export which is contrary to sound economic policy.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: There will be fiscal implications to New York State in regard to tax revenues collected from QEZE approved businesses.

EFFECTIVE DATE: To take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7196--B IN SENATE May 5, 2014 ___________
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to QEZE tax reduction credits THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subdivision (f) of section 16 of the tax law, as amended by section 14 of part CC of chapter 85 of the laws of 2002, is amended to read as follows: (1) General. The tax factor shall be, in the case of article nine-A of this chapter, the larger of the amounts of tax determined for the taxa- ble year under paragraphs (a) and (c) of subdivision one of section two hundred ten of such article. The tax factor shall be, in the case of article twenty-two of this chapter, the tax determined for the taxable year under subsections (a) through (d) of section six hundred one of such article. PROVIDED HOWEVER, TAXPAYERS FILING UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL INCLUDE FOR THE PURPOSES OF THE TAX FACTOR ALL BUSINESS INCOME ATTRIBUTABLE TO A QEZE BUSINESS WHICH IS TAXABLE UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER. The tax factor shall be, in the case of article thirty-two of this chapter, the larger of the amounts of tax determined for the taxable year under subsection (a) and paragraph two of subsection (b) of section fourteen hundred fifty-five of such article. The tax factor shall be, in the case of article thir- ty-three of this chapter, the larger of the amounts of tax determined for the taxable year under paragraphs one and three of subdivision (a) of section fifteen hundred two of such article. S 2. Paragraph 1 of subdivision (f) of section 16 of the tax law, as amended by section 34 of part A of chapter 59 of the laws of 2014, is amended to read as follows:
(1) General. The tax factor shall be, in the case of article nine-A of this chapter, the amount of tax determined for the taxable year under paragraph (a) of subdivision one of section two hundred ten of such article. The tax factor shall be, in the case of article twenty-two of this chapter, the tax determined for the taxable year under subsections (a) through (d) of section six hundred one of such article. PROVIDED HOWEVER, TAXPAYERS FILING UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL INCLUDE FOR THE PURPOSES OF THE TAX FACTOR ALL BUSINESS INCOME ATTRIBUT- ABLE TO A QEZE BUSINESS WHICH IS TAXABLE UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER. The tax factor shall be, in the case of article thirty- three of this chapter, the larger of the amounts of tax determined for the taxable year under paragraphs one and three of subdivision (a) of section fifteen hundred two of such article. S 3. This act shall take effect immediately; provided, however that section two of this act shall take effect on the same date and in the same manner as section 34 of part A of chapter 59 of the laws of 2014 takes effect.

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