Bill S7572-2013

Creates a small business grid renewable energy tax credit

Creates a small business renewable tax credit; the term "business related renewable energy usage" shall refer to renewable power usage to further the economic activity of the taxpayer at the primary business location that is clearly delimited from any shared renewable energy power usage cost.

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  • May 15, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S7572

TITLE OF BILL: An act to amend the tax law, in relation to a small business grid renewable energy tax credit

PURPOSE: To create incentives for small businesses located within a business grid to retrofit or improve existing structures with renewable energy generation sources.

SUMMARY OF PROVISIONS:

Section One of the bill creates a small business grid renewable energy tax credit.

Section Two provides for the parameters within a small business may be eligible for such a renewable energy tax credit.

Section Four that this act shall take effect on the first of January next succeeding the date on which it shall have become law.

JUSTIFICATION: New York's most effective creators of jobs are small and "micro" businesses. Beginning the early 2000s, those two areas of the economy have begun employing the largest number of employees, and are the largest contributors of salary and investment "spin-off" effects in our communities, replacing the roles traditionally played by large corporations.

Despite that reality however, New York does not provide enough support for its vibrant small and micro-business community. This bill will provide tax credits to small and micro-businesses located in business grids that will incentivize such businesses to retrofit or improve their properties by installing renewable energy generation equipment. Freeing these job creating entities from the unpredictable price increases of the energy market, and stemming capital outflow will enable our small and micro-businesses to invest more capital on expanding and honing their businesses, and upon creating the additional jobs needed to drag New York's economy upward from the lingering effects of the Great Recession of 2008-2013.

LEGISLATIVE HISTORY: None. This is a new bill.

FISCAL IMPLICATIONS: It is anticipated that the revenues arising from the increase in small business activity will offset the cost of the credit.

EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 7572 IN SENATE May 15, 2014 ___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to a small business grid renew- able energy tax credit 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 50 to read as follows: 50. SMALL BUSINESS GRID RENEWABLE ENERGY TAX CREDIT. (A) A TAXPAYER THAT IS ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN PARAGRAPH (B) OF THIS SUBDIVISION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY PERCENT OF THE COST OF CONVERSION FROM ELECTRIC OR GAS TO RENEWABLE ENERGY. (B) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO MORE THAN NINETEEN FULL TIME EQUIVALENT EMPLOYEES IN NEW YORK STATE, INCLUDING ANY RELATED MEMBERS OR AFFILIATES, (II) NOT BE A SOLE-PROPRIETORSHIP IF SUCH SOLE-PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, (IV) NOT BE RECEIVING ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW, AND (V) SHALL BE LOCATED WITHIN A CERTAIN RADIUS OF OTHER QUALIFIED SMALL BUSINESSES. (C) (I) THE TERM "BUSINESS RELATED RENEWABLE ENERGY USAGE" SHALL REFER TO RENEWABLE ENERGY POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF THE TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM ANY SHARED RENEWABLE ENERGY POWER USAGE COST. (II) THE TERM "PRIMARY BUSINESS LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE STATE OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC ACTIVITY IS GENERATED OR COORDINATED THROUGH. (III) THE TERM "RELATED MEMBERS" SHALL HAVE THE SAME MEANING AS SET FORTH IN CLAUSES (A) AND (B) OF SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE, AND THE TERM "AFFILIATES" SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF THE SAME AFFILIATED
GROUP (AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVEN- UE CODE) AS THE TAXPAYER. (D) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDI- VISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL 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. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT- Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER- EON. S 2. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) SMALL BUSINESS GRID RENEWABLE ENERGY TAX CREDIT. (1) A TAXPAYER THAT IS ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN PARAGRAPH TWO OF THIS SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY PERCENT OF THE COST OF CONVERSION FROM ELECTRIC OR GAS TO RENEWABLE ENERGY. (2) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO MORE THAN NINETEEN FULL TIME EQUIVALENT EMPLOYEES IN NEW YORK STATE, INCLUDING ANY RELATED MEMBERS OR AFFILIATES, (II) SHALL NOT BE A SOLE-PROPRIETORSHIP IF SUCH SOLE-PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF SUCH SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, (IV) NOT BE RECEIVING ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW, AND (V) SHALL BE LOCATED WITHIN A CERTAIN RADIUS OF OTHER QUALIFIED SMALL BUSINESSES. (3) (I) THE TERM "BUSINESS RELATED RENEWABLE ENERGY USAGE" SHALL REFER TO RENEWABLE ENERGY POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF THE TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM ANY SHARED RENEWABLE ENERGY POWER USAGE COST. (II) THE TERM "PRIMA- RY BUSINESS LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITH- IN THE STATE OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S ECONOMIC ACTIVITY IS GENERATED OR COORDINATED THROUGH. (III) THE TERM "RELATED MEMBERS" SHALL HAVE THE SAME MEANING AS SET FORTH IN CLAUSES (A) AND (B) OF SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER, AND THE TERM "AFFILIATES" SHALL MEAN THOSE CORPORATIONS THAT ARE MEMBERS OF THE SAME AFFILIATED GROUP (AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE) AS THE TAXPAYER. (4) IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL 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 (xli) to read as follows: (XLI) SMALL BUSINESS GRID RENEWABLE QUALIFYING GRID RENEWABLE ENERGY ENERGY TAX CREDIT UNDER USAGE UNDER SUBDIVISION FIFTY SUBSECTION (CCC) OF SECTION TWO HUNDRED TEN 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.

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