S T A T E O F N E W Y O R K
________________________________________________________________________
3052
2009-2010 Regular Sessions
I N S E N A T E
March 10, 2009
___________
Introduced by Sens. SEWARD, ALESI, BONACIC, DeFRANCISCO, HANNON,
O. JOHNSON, LANZA, MAZIARZ, MORAHAN, RANZENHOFER, VOLKER -- 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
the purchase of certain health insurance
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 41 to read as follows:
41. (A) A TAXPAYER WHO IS A QUALIFIED SMALL EMPLOYER SHALL BE ALLOWED
A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE APPLICABLE
PERCENTAGE OF PREMIUMS PAID DURING THE TAXABLE YEAR FOR HEALTH INSURANCE
BY SUCH EMPLOYER. THE APPLICABLE PERCENTAGE SHALL BE (I) FIVE PERCENT
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE
AND (II) TEN PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND TEN.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY 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.
IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT
NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
OR YEARS.
(C) FOR THE PURPOSES OF THIS SUBDIVISION "QUALIFIED SMALL EMPLOYER"
SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES WHO IS A
"SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE
OF THIS SECTION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07605-01-9
S. 3052 2
(D) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "HEALTH INSURANCE"
MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
IN A HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of
the laws of 2008, is amended to read as follows:
(B) shall be treated as the owner of a new business with respect to
such share if the corporation qualifies as a new business pursuant to
paragraph (j) of subdivision twelve of section two hundred ten of this
chapter.
The corporation's credit base under
section two hundred ten or section
With respect to the following fourteen hundred fifty-six of this
credit under this section: chapter is:
(I) Investment tax credit under Investment credit base or qualified
subsection (a) rehabilitation expenditures under
subdivision twelve of section two
hundred ten
(II) Empire zone investment Cost or other basis under
tax credit under subsection (j) subdivision twelve-B of section
two hundred ten
(III) Empire zone wage tax credit Eligible wages under subdivision
under subsection (k) nineteen of section two hundred
ten or subsection (e) of section
fourteen hundred fifty-six
(IV) Empire zone capital tax Qualified investments and
credit under subsection (l) contributions under subdivision
twenty of section two hundred ten
or subsection (d) of section
fourteen hundred fifty-six
(V) Agricultural property tax Allowable school district property
credit under subsection (n) taxes under subdivision twenty-two
of section two hundred ten
(VI) Credit for employment of Qualified first-year wages or
persons with disabilities qualified second-year wages under
under subsection (o) subdivision twenty-three of
section two hundred ten or
subsection (f) of section
fourteen hundred fifty-six
(VII) Employment incentive credit Applicable investment credit base
under subsection (a-1) under subdivision twelve-D of
section two hundred ten
S. 3052 3
(VIII) Empire zone employment Applicable investment credit
incentive credit under subsection under subdivision twelve-C of
(j-1) section two hundred ten
(IX) Alternative fuels credit Cost under subdivision twenty-four
under subsection (p) of section two hundred ten
(X) Qualified emerging technology Applicable credit base under
company employment credit under subdivision twelve-E of section
subsection (q) two hundred ten
(XI) Qualified emerging technology Qualified investments under
company capital tax credit under subdivision twelve-F of section
subsection (r) two hundred ten
(XII) Credit for purchase of an Cost of an automated external
automated external defibrillator defibrillator under subdivision
under subsection (s) twenty-five of section two hundred
ten or subsection (j) of section
fourteen hundred fifty-six
(XIII) Low-income housing credit Credit amount under subdivision
under subsection (x) thirty of section two hundred ten
or subsection (l) of section
fourteen hundred fifty-six
(XIV) Credit for transportation Amount of credit under subdivision
improvement contributions under thirty-two of section two hundred
subsection (z) ten or subsection (n) of section
fourteen hundred fifty-six
(XV) QEZE credit for real property Amount of credit under subdivision
taxes under subsection (bb) twenty-seven of section two hundred
ten or subsection (o) of section
fourteen hundred fifty-six
(XVI) QEZE tax reduction credit Amount of benefit period factor,
under subsection (cc) employment increase factor and zone
allocation factor (without regard
to pro ration) under subdivision
twenty-eight of section two hundred
ten or subsection (p) of section
fourteen hundred fifty-six and
amount of tax factor as determined
under subdivision (f) of section
sixteen
(XVII) Green building credit under Amount of green building credit
subsection (y) under subdivision thirty-one of
section two hundred ten or
subsection (m) of section fourteen
hundred fifty-six
(XVIII) Credit for long-term care Qualified costs under subdivision
insurance premiums under subsection twenty-five-a of section two
(aa) hundred ten or subsection (k) of
S. 3052 4
section fourteen hundred fifty-six
(XIX) Brownfield redevelopment Amount of credit under subdivision
credit under subsection (dd) thirty-three of section two hundred
ten or subsection (q) of section
fourteen hundred fifty-six
(XX) Remediated brownfield credit Amount of credit under subdivision
for real property taxes for thirty-four of section two hundred
qualified sites under subsection ten or subsection (r) of section
(ee) fourteen hundred fifty-six
(XXI) Environmental remediation Amount of credit under subdivision
insurance credit under subsection thirty-five of section two hundred
(ff) ten or subsection (s) of section
fourteen hundred fifty-six
(XXII) Empire state film production Amount of credit for qualified
credit under subsection (gg) production costs in production of a
qualified film under subdivision
thirty-six of section two hundred
ten
(XXIII) Qualified emerging Qualifying expenditures and
technology company facilities, development activities under
operations and training credit subdivision twelve-G of section two
under subsection (nn) hundred ten
(XXIV) Security training tax credit Amount of credit under subdivision
under subsection (ii) thirty-seven of section two hundred
ten or under subsection (t) of
section fourteen hundred fifty-six
(XXV) Credit for qualified fuel Amount of credit under subdivision
cell electric generating equipment thirty-seven of section two hundred
expenditures under subsection (g-2) ten or subsection (t) of section
fourteen hundred fifty-six
(XXVI) Empire state commercial Amount of credit for qualified
production credit under subsection production costs in production of
(jj) a qualified commercial under
subdivision thirty-eight of
section two hundred ten
(XXVII) Biofuel production tax Amount of credit under subdivision
credit under subsection (jj) thirty-eight of section two hundred
ten
(XXVIII) Clean heating fuel credit Amount of credit under subdivision
under subsection (mm) thirty-nine of section two hundred
ten
(XXIX) Credit for rehabilitation Amount of credit under subdivision
of historic properties under forty of [subsection] SECTION
subsection (oo) two hundred ten
S. 3052 5
(XXX) Credit for companies who Amount of credit under subdivision
provide transportation to forty of section two hundred ten
individuals with disabilities under
subsection (oo)
(XXXI) SMALL EMPLOYER HEALTH CREDIT UNDER SUBDIVISION
CARE INSURANCE CREDIT FORTY-ONE OF SECTION TWO
UNDER SUBSECTION (QQ) HUNDRED TEN
S 3. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
(QQ) SMALL EMPLOYER HEALTH CARE INSURANCE CREDIT. (1) A TAXPAYER WHO
IS A QUALIFIED SMALL EMPLOYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX
IMPOSED BY THIS ARTICLE EQUAL TO THE APPLICABLE PERCENTAGE OF THE PREMI-
UMS PAID DURING THE TAXABLE YEAR FOR HEALTH INSURANCE BY SUCH EMPLOYER.
THE APPLICABLE PERCENTAGE SHALL BE (A) FIVE PERCENT FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE AND (B) TEN
PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TEN. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE
EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
(2) FOR THE PURPOSES OF THIS SUBSECTION "QUALIFIED SMALL EMPLOYER"
SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES WHO IS A
"SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
(3) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "HEALTH INSURANCE"
MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
IN A HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
S 4. Section 1456 of the tax law is amended by adding a new subsection
(f-1) to read as follows:
(F-1) SMALL EMPLOYER TAX CREDIT. (1) A TAXPAYER WHO IS A QUALIFIED
SMALL EMPLOYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS
ARTICLE EQUAL TO THE APPLICABLE PERCENTAGE OF THE PREMIUMS PAID DURING
THE TAXABLE YEAR FOR HEALTH INSURANCE BY SUCH EMPLOYER. THE APPLICABLE
PERCENTAGE SHALL BE (A) FIVE PERCENT FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND NINE AND (B) TEN PERCENT FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN.
(2) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR, AND CARRYOVERS
OF SUCH CREDIT, BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYA-
BLE TO LESS THAN THE DOLLAR AMOUNT FIXED AS A MINIMUM TAX BY SUBSECTION
(B) OF SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS ARTICLE. IF, HOWEVER,
THE AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWABLE
UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, ANY AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT THUS NOT
DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
OR YEARS.
(3) FOR THE PURPOSES OF THIS SECTION THE TERM "QUALIFIED SMALL EMPLOY-
ER" SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE OF THE
BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES WHO IS A
S. 3052 6
"SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE
OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
(4) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM "HEALTH INSURANCE"
MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
IN A HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
S 5. Section 1511 of the tax law is amended by adding a new subdivi-
sion (y) to read as follows:
(Y) SMALL EMPLOYER HEALTH CARE INSURANCE CREDIT. (1) A TAXPAYER SHALL
BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE
APPLICABLE PERCENTAGE OF THE PREMIUMS PAID DURING THE TAXABLE YEAR FOR
HEALTH INSURANCE BY SUCH EMPLOYER. THE APPLICABLE PERCENTAGE SHALL BE
(A) FIVE PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND NINE AND (B) TEN PERCENT FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND TEN.
(2) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN AN
AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE MINIMUM FIXED
BY SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE. IF,
HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY
TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT
DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
OR YEARS.
(3) FOR THE PURPOSES OF THIS SUBDIVISION THE TERM "QUALIFIED SMALL
EMPLOYER" SHALL MEAN AN INDIVIDUAL PROPRIETOR WHO IS THE SOLE EMPLOYEE
OF THE BUSINESS OR AN EMPLOYER WITH NOT MORE THAN FIFTY EMPLOYEES WHO IS
A "SMALL BUSINESS TAXPAYER" AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION
ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
(4) FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "HEALTH INSURANCE"
MEANS AN ACCIDENT AND HEALTH INSURANCE POLICY SUBJECT TO THE PROVISIONS
OF SECTION THREE THOUSAND TWO HUNDRED SIXTEEN, THREE THOUSAND TWO
HUNDRED TWENTY-ONE, FOUR THOUSAND THREE HUNDRED THREE OR FOUR THOUSAND
EIGHT HUNDRED ONE OF THE INSURANCE LAW, AND ARTICLE FORTY-FOUR OF THE
PUBLIC HEALTH LAW AND SHALL INCLUDE A POLICY INTENDED TO QUALIFY FOR USE
IN A HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL
MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003.
S 6. Section 606 of the tax law is amended by adding a new subsection
(h-1) to read as follows:
(H-1) INDIVIDUAL ENROLLEE HEALTH INSURANCE CREDIT. A TAXPAYER SHALL BE
ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE
APPLICABLE PERCENTAGE OF THE PREMIUM PAID DURING THE TAXABLE YEAR FOR
HEALTH INSURANCE PURCHASED PURSUANT TO SECTION FOUR THOUSAND THREE
HUNDRED TWENTY-ONE OR FOUR THOUSAND THREE HUNDRED TWENTY-TWO OF THE
INSURANCE LAW, INCLUDING POLICIES INTENDED TO QUALIFY FOR USE IN A
HEALTH SAVINGS ACCOUNT PURSUANT TO SECTION 1201 OF THE FEDERAL MEDICARE
PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003. THE APPLI-
CABLE PERCENTAGE SHALL BE (1) FIVE PERCENT FOR TAXABLE YEARS BEGINNING
ON OR AFTER JANUARY FIRST, TWO THOUSAND NINE AND (2) TEN PERCENT FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TEN.
S 7. This act shall take effect January 1, 2010; provided, however
that the empire state film production credit under subsection (gg), the
empire state commercial production credit under subsection (jj) and the
S. 3052 7
credit for companies who provide transportation to individuals with
disabilities under subsection (oo) of section 606 of the tax law
contained in section two of this act shall expire on the same date as
provided in section 9 of part P of chapter 60 of the laws of 2004, as
amended, section 10 of part V of chapter 62 of the laws of 2006, as
amended and section 5 of chapter 522 of the laws of 2006, as amended,
respectively.