NY State Senate Bill 2009-S6696

Senate Bill S6696

2009-2010 Legislative Session

Establishes a small business tax credit for Small Business Administration (SBA) guaranty fees paid by a taxpayer

download bill text pdf

Archive: Last Bill Status - In Assembly 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 23, 2010	referred to ways and means
Jun 22, 2010	delivered to assembly passed senate ordered to third reading cal.1092 committee discharged and committed to rules
Jan 28, 2010	referred to investigations and government operations

Votes

- Jun 22, 2010 - Floor Vote
  S6696
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 22, 2010
      
      aye (61)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (1)
      
      Morahan
  Jun 22, 2010 - Rules Committee Vote
  S6696
  
  21
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 22, 2010
      
      aye (21)
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Hassell-Thompson
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Montgomery
      
      Padavan
      
      Parker
      
      Saland
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stewart-Cousins
      
      Valesky
      
      Volker
      
      aye wr (2)
      
      Hannon
      
      Larkin

2009-S6696 (ACTIVE) - Details

See Assembly Version of this Bill:: A5247
Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in 2011-2012 Legislative Session:: A3697

2009-S6696 (ACTIVE) - Summary

Establishes a small business tax credit for SBA guaranty fees paid by a taxpayer in connection with obtaining financing from the U.S. small business administration.

2009-S6696 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6696

 TITLE OF BILL :
An act to amend the tax law, in relation to establishing a small
business tax credit for SBA guaranty fees paid


 PURPOSE OR GENERAL IDEA OF BILL :
The purpose of this legislation is to assist small businesses in
obtaining loans by providing a tax credit for the fees which are a
part of the United States Small Business Administration (SBA) loan
processing.

 SUMMARY OF SPECIFIC PROVISIONS :
This bill would allow small businesses in New York State that have
paid a loan guaranty fee to the SBA in order to obtain an SBA 7(a)
guaranteed loan, to receive a tax credit, beginning January 1, 2006,
for the full amount of the guaranty fee. The tax credit may only be
claimed by the small business and may not be claimed if the guaranty
fee has been added to the amount financed by the borrower. Any unused
tax credit may be carried over for five years.

 JUSTIFICATION :
A major concern for today's small business owners is access to capital
and credit. The SBA's loan guarantee program provides guarantees on
loans to small businesses looking to expand, invest in new equipment

or refinance existing debt. Many of these firms are considered
high-risk and most likely would not receive financing without SBA
support.

The 7(a) Loan Guaranty Program is the SBA's primary loan program.  The
SBA reduces the risk to lenders by guaranteeing up to 80 percent of
the loan made to a small business by the private lender.  By providing
this guaranty, the SBA is able to help tens of thousands of small
businesses every year get financing they would not otherwise obtain.

The SBA charges the lender a nominal fee (guaranty fee) to provide a
guaranty, and the lender may pass this charge on to the small
business. The guaranty fee is determined on a sliding scale based on
the maturity of the loan and the dollar amount that the SBA
guarantees.

In an effort to encourage business growth worth and to assist small
businesses, a number of other states have been providing tax credits
for the fees which are part of the SBA loan processing. New York State
should offer its small businesses the same tax credit for any fees
paid to the SBA in order to obtain a loan.

 LEGISLATIVE HISTORY :
A.544 of 2003-2004
A.2007 of 2005-2006
A.4427 of 2007-2008

 FISCAL IMPLICATIONS :
Undetermined.

 EFFECTIVE DATE :
Immediately.

2009-S6696 (ACTIVE) - Bill Text download pdf

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

                                  6696

                            I N  S E N A T E

                            January 28, 2010
                               ___________

Introduced  by  Sen.  FOLEY  -- 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 establishing a  small  busi-
  ness tax credit for SBA guaranty fees paid

  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.  SMALL  BUSINESS  TAX CREDIT. (A) GENERAL. A TAXPAYER WHO HAS ONE
HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED  AS
PROVIDED  IN  THIS  SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE
FOR ANY AMOUNT PAID TO THE UNITED STATES SMALL  BUSINESS  ADMINISTRATION
(SBA)  AS A GUARANTY FEE PURSUANT TO THE OBTAINING OF A SBA 7(A) GUARAN-
TEED LOAN.
  (B) AMOUNT OF CREDIT. A CREDIT  AUTHORIZED  BY  THIS  SECTION  MAY  BE
CLAIMED  FOR  GUARANTY FEES PAID ON OR AFTER JANUARY FIRST, TWO THOUSAND
ELEVEN.
  (C) NO CREDIT MAY BE CLAIMED PURSUANT TO THIS SUBDIVISION IF, PURSUANT
TO THE AGREEMENT BETWEEN THE BANKING ASSOCIATION OR CREDIT UNION AND THE
ENTITY TO WHICH PROCEEDS ARE MADE AVAILABLE, THE BANKING ASSOCIATION  OR
CREDIT  UNION  ADDS  THE AMOUNT OF THE SBA 7(A) LOAN GUARANTY FEE TO THE
AMOUNT FINANCED BY THE BORROWER OR IN ANY OTHER WAY RECOVERS THE GUARAN-
TY FEE AMOUNT FROM THE BORROWER.
  (D) CARRYOVERS. THE CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION  MAY  BE
CLAIMED  AND  IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH THE CREDIT
IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE FIVE SUCCEEDING
TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBDIVISION MAY NOT BE USED
TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
  S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08416-04-0

S. 6696                             2

(XXXI) SBA GUARANTY FEE CREDIT       COSTS UNDER SUBDIVISION
UNDER SUBSECTION (R-1)               FORTY-ONE OF SECTION
                                     TWO HUNDRED TEN

  S  3. Section 606 of the tax law is amended by adding a new subsection
(r-1) to read as follows:
  (R-1) SMALL BUSINESS GUARANTY FEE TAX CREDIT. (1) GENERAL. A  TAXPAYER
WHO  HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CREDIT, TO BE
COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS
ARTICLE FOR ANY AMOUNT PAID TO THE UNITED STATES SMALL BUSINESS ADMINIS-
TRATION (SBA) AS A GUARANTY FEE PURSUANT TO THE OBTAINING OF SBA GUARAN-
TEED FINANCING.
  (2) AMOUNT OF CREDIT. A CREDIT  AUTHORIZED  BY  THIS  SECTION  MAY  BE
CLAIMED  FOR  GUARANTY FEES PAID ON OR AFTER JANUARY FIRST, TWO THOUSAND
ELEVEN.
  (3) NO CREDIT MAY BE CLAIMED PURSUANT TO THIS SUBSECTION IF,  PURSUANT
TO THE AGREEMENT BETWEEN THE BANKING ASSOCIATION OR CREDIT UNION AND THE
ENTITY  TO WHICH PROCEEDS ARE MADE AVAILABLE, THE BANKING ASSOCIATION OR
CREDIT UNION ADDS THE AMOUNT OF THE SBA 7(A) LOAN GUARANTY  FEE  TO  THE
AMOUNT FINANCED BY THE BORROWER OR IN ANY OTHER WAY RECOVERS THE GUARAN-
TY FEE AMOUNT FROM THE BORROWER.
  (4)  CARRYOVERS.  THE  CREDIT  ALLOWED  UNDER  THIS  SUBSECTION MAY BE
CLAIMED AND IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH  THE  CREDIT
IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE FIVE SUCCEEDING
TAXABLE  YEARS. THE CREDIT AUTHORIZED BY THIS SUBSECTION MAY NOT BE USED
TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
  S 4.  This act shall take effect immediately.

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