NY State Senate Bill 2015-S866

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to investigations and government operations
Jan 07, 2015	referred to investigations and government operations

co-Sponsors

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2015-S866 (ACTIVE) - Details

See Assembly Version of this Bill:: A6544
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2987
2011-2012: S3191, A10122
2013-2014: S1694, A761
2017-2018: S3511, A6679
2019-2020: S1992, A6813

2015-S866 (ACTIVE) - Summary

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

2015-S866 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S866

TITLE OF BILL:

An act to amend the tax law, in relation to a small business electric
energy tax credit

SUMMARY OF PROVISIONS:

This bill amends the Tax Law.

Section 1 amends Section 210 of the Tax Law, relating to franchise
taxes on business corporations, by adding a new subdivision 49
creating a small business electric energy tax credit. The section
defines eligibility and other restrictions and requirements, and
provides for a tax credit equal to the product of two cents per
kilowatt hour for all business-related electricity usage at the
taxpayer's primary business location, with a cap of $1,000 per taxable
year.

Section 2 amends Section 606 of the Tax Law, relating to personal
income tax, by adding a new subsection (ccc). This subsection provides
for a small business electric energy tax credit. The section defines
eligibility and other restrictions and requirements, and provides for
a tax credit equal to the product of two cents per kilowatt hour for
all business-related electricity usage at the taxpayer's primary

business location.

Section 3 amends subparagraph (B) of paragraph 1 of subsection (i) of
Section 606 of the Tax Law, relating to S corporations, adds a new
clause (xli) regarding the small business electricity energy credit
under subsection (ccc).

Section 4 provides that this act shall take effect on the first of
January next succeeding the date on which it shall have become law and
shall apply for taxable years beginning such date.

PURPOSE AND JUSTIFICATION:

Small businesses are critical to the economic health and growth of our
state. Small businesses are a powerful engine of new job growth, and a
source of innovation that will keep our state competitive around the
world. Energy costs have risen faster than many small businesses could
have predicted or planned for, and as a result, many find themselves
under financial pressure.

The bill applies to companies with less than 20 employees. It is
estimated that 386,000 businesses employing 1.4 million New Yorkers
will be impacted by this legislation. This bill will help to offset
these increased costs by offering a tax credit, and help to ensure
that our small businesses will remain healthy and productive. These
tax credits will also help to hold overhead down and make our small
businesses better able to compete both nationally and internationally.

PRIOR LEGISLATIVE HISTORY:

2006 - S.6566 -- PASSED SENATE


2007 - S.1671 -- PASSED SENATE
2008 - S.1671 -- PASSED SENATE/Ways & Means
2010 - S.2987 -- INVESTIGATIONS
2011-12 - S.3191-A/A.10122 -- RULES/Ways & Means
2013-14 - S.1694-A/A.761-B - INVESTIGATIONS/Ways & Means

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect the first of January next succeeding.

2015-S866 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   866

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 7, 2015
                               ___________

Introduced  by  Sens.  RANZENHOFER,  DeFRANCISCO, GOLDEN, LARKIN -- 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 a small business electric
  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-B  of the tax law is amended by adding a new
subdivision 49 to read as follows:
  49. SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (A) A TAXPAYER THAT  IS
ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN PARAGRAPH (B) OF THIS SUBDI-
VISION  SHALL  BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.  THE AMOUNT OF THE CREDIT SHALL BE EQUAL  TO  THE  PRODUCT  OF  TWO
CENTS  PER  KILOWATT  HOUR FOR ALL BUSINESS RELATED ELECTRICITY USAGE AT
THE TAXPAYER'S PRIMARY BUSINESS LOCATION UP TO  A  ONE  THOUSAND  DOLLAR
LIMIT DURING THE TAXABLE YEAR.
  (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, AND (IV) NOT BE RECEIV-
ING  ANY  ALLOCATION  OR  AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER
ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
  (C) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL  REFER  TO
ELECTRICAL  POWER  USAGE  USED  TO  FURTHER THE ECONOMIC ACTIVITY OF THE
TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
ANY SHARED ELECTRICAL 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"

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02045-01-5

S. 866                              2

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 REVENUE CODE) AS
THE TAXPAYER.
  (D) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
THE TAXPAYER FOR BUSINESS RELATED ELECTRICITY USAGE DURING  THE  TAXPAY-
ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
PROVIDED  TO  THE  TAXPAYER  BY THE TAXPAYER'S ELECTRICITY POWER SERVICE
PROVIDER.
  (E) 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 PARAGRAPH (D) OF SUBDIVISION  ONE  OF  SECTION
TWO  HUNDRED  TEN  OF  THIS  ARTICLE.   HOWEVER, IF THE AMOUNT OF CREDIT
ALLOWED UNDER THIS SUBDIVISION 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  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST SHALL BE PAID THEREON.
  S 2. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  SMALL  BUSINESS ELECTRIC 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 THE PRODUCT (OR  PRO
RATA SHARE OF THE PRODUCT IN THE CASE OF A PARTNERSHIP) OF TWO CENTS PER
KILOWATT  HOUR FOR ALL BUSINESS RELATED ELECTRICITY USAGE AT THE TAXPAY-
ER'S PRIMARY BUSINESS LOCATION UP TO A ONE THOUSAND DOLLAR LIMIT  DURING
THE TAXABLE YEAR.
  (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, AND (IV) NOT BE RECEIV-
ING  ANY  ALLOCATION  OR  AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER
ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
  (3) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL  REFER  TO
ELECTRICAL  POWER  USAGE  USED  TO  FURTHER THE ECONOMIC ACTIVITY OF THE
TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
ANY SHARED ELECTRICAL 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 SUBPARA-
GRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF  SECTION  TWO  HUNDRED
EIGHT OF THIS CHAPTER, AND THE TERM "AFFILIATES" SHALL MEAN THOSE CORPO-
RATIONS  THAT  ARE  MEMBERS  OF THE SAME AFFILIATED GROUP (AS DEFINED IN
SECTION FIFTEEN HUNDRED FOUR  OF  THE  INTERNAL  REVENUE  CODE)  AS  THE
TAXPAYER.
  (4) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
THE  TAXPAYER  FOR BUSINESS RELATED ELECTRICITY USAGE DURING THE TAXPAY-
ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART

S. 866                              3

PROVIDED TO THE TAXPAYER BY THE  TAXPAYER'S  ELECTRICITY  POWER  SERVICE
PROVIDER.
  (5)  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 ELECTRIC        QUALIFYING ELECTRICITY USAGE
ENERGY TAX CREDIT                    UNDER SUBDIVISION FORTY-NINE
UNDER SUBSECTION (CCC)               OF SECTION TWO HUNDRED TEN-B
  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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Senate Bill S866

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2015-S866 (ACTIVE) - Details

2015-S866 (ACTIVE) - Summary

2015-S866 (ACTIVE) - Sponsor Memo

2015-S866 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S866

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Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2015-S866 (ACTIVE) - Details

2015-S866 (ACTIVE) - Summary

2015-S866 (ACTIVE) - Sponsor Memo

2015-S866 (ACTIVE) - Bill Text download pdf

Comments