S T A T E O F N E W Y O R K
________________________________________________________________________
675
2009-2010 Regular Sessions
I N S E N A T E
January 12, 2009
___________
Introduced by Sens. LARKIN, SEWARD, BONACIC, DeFRANCISCO, GRIFFO,
LEIBELL, LITTLE, MORAHAN, VOLKER, WINNER, YOUNG -- 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 granting tax credits to
employers providing health insurance coverage to certain employees who
are not otherwise covered by health insurance and providing a personal
income tax credit for premiums paid for health insurance by certain
taxpayers
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. CREDIT FOR HEALTH INSURANCE PREMIUMS PAID FOR CERTAIN EMPLOYEES.
(A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST
THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE FOLLOWING PERCENTAGES OF
THE PREMIUMS PAID FOR HEALTH INSURANCE FOR QUALIFIED EMPLOYEES DURING
THE FOLLOWING TAXABLE YEARS:
PERCENTAGE OF
TAXABLE YEAR PREMIUMS
(1) TWO THOUSAND TEN FIVE PERCENT
(2) TWO THOUSAND ELEVEN TEN PERCENT
(3) TWO THOUSAND TWELVE FIFTEEN PERCENT
(4) TWO THOUSAND THIRTEEN TWENTY PERCENT
(5) TWO THOUSAND FOURTEEN TWENTY-FIVE
AND TAXABLE YEARS PERCENT.
THEREAFTER
(B) QUALIFIED EMPLOYEE. A QUALIFIED EMPLOYEE IS AN EMPLOYEE OF THE
TAXPAYER WHO:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05225-01-9
S. 675 2
(1) PRIOR TO THE PROVISION OF HEALTH INSURANCE BY THE TAXPAYER, DID
NOT HAVE HEALTH INSURANCE COVERAGE FOR THE PREVIOUS SIX OR MORE MONTHS
OR HAS HAD HIS OR HER COVERAGE UNDER COBRA EXPIRE; AND
(2) HAS A NEW YORK TAXABLE INCOME FOR THE TAXABLE YEAR, INCLUDING THE
NEW YORK TAXABLE INCOME OF HIS OR HER SPOUSE IF ANY, OF:
(I) FORTY THOUSAND DOLLARS OR LESS AND HAS NO DEPENDENTS;
(II) SIXTY THOUSAND DOLLARS OR LESS WITH ONE DEPENDENT;
(III) SEVENTY-FIVE THOUSAND DOLLARS OR LESS WITH TWO DEPENDENTS;
(IV) EIGHTY-FIVE THOUSAND DOLLARS OR LESS WITH THREE DEPENDENTS;
(V) AN ADDITIONAL SEVEN THOUSAND FIVE HUNDRED DOLLARS OF ANNUAL INCOME
FOR EACH DEPENDENT IN ADDITION TO THREE DEPENDENTS; AND
(3) HAS BEEN EMPLOYED BY THE TAXPAYER FOR NOT LESS THAN ONE YEAR.
(C) HEALTH INSURANCE. HEALTH INSURANCE IS ANY 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, FOUR THOUSAND THREE HUNDRED TWENTY-ONE, FOUR THOU-
SAND THREE HUNDRED TWENTY-TWO-A, FOUR THOUSAND THREE HUNDRED TWENTY-SIX
OR FOUR THOUSAND EIGHT HUNDRED ONE OF THE INSURANCE LAW, ARTICLE FORTY-
FOUR OF THE PUBLIC HEALTH LAW, SECTION THREE HUNDRED SIXTY-NINE-EE OF
THE SOCIAL SERVICES LAW OR ANY OTHER SIMILAR ACCIDENT AND HEALTH INSUR-
ANCE POLICY.
(D) TAXABLE INCOME OF EMPLOYEES. A TAXPAYER MAY REQUEST AND SHALL
RECEIVE, ON OR BEFORE FEBRUARY FIFTEENTH IMMEDIATELY FOLLOWING THE END
OF THE TAXABLE YEAR IN WHICH THE CREDIT ESTABLISHED BY THIS SUBDIVISION
IS CLAIMED, FROM ANY EMPLOYEE THE TAXPAYER REASONABLY BELIEVES IS A
QUALIFIED EMPLOYEE, A REASONABLE ESTIMATE OF SUCH EMPLOYEE'S NEW YORK
TAXABLE INCOME INCLUDING THAT OF HIS OR HER SPOUSE IF ANY.
(E) CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION.
HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CRED-
IT 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.
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:
Investment tax credit Investment credit base
under subsection (a) or qualified
rehabilitation
expenditures under
subdivision twelve of
section two hundred ten
S. 675 3
Empire zone Cost or other basis
investment tax credit under subdivision
under subsection (j) twelve-B
of section two hundred
ten
Empire zone Eligible wages under
wage tax credit subdivision nineteen of
under subsection (k) section two hundred ten
or subsection (e) of
section fourteen hundred
fifty-six
Empire zone Qualified investments
capital tax credit and contributions under
under subsection (l) subdivision twenty of
section two hundred ten
or subsection (d) of
section fourteen hundred
fifty-six
Agricultural property tax Allowable school
credit under subsection (n) district property taxes under
subdivision twenty-two of
section two hundred ten
Credit for employment Qualified first-year wages or
of persons with dis- qualified second-year wages
abilities under under subdivision
subsection (o) twenty-three of section
two hundred ten
or subsection (f)
of section fourteen
hundred fifty-six
Employment incentive Applicable investment credit
credit under subsec- base under subdivision
tion (a-1) twelve-D of section two
hundred ten
Empire zone Applicable investment
employment credit under sub-
incentive credit under division twelve-C
subsection (j-1) of section two hundred ten
Alternative fuels credit Cost under subdivision
under subsection (p) twenty-four of section two
hundred ten
Qualified emerging Applicable credit base
technology company under subdivision twelve-E
employment credit of section two hundred ten
under subsection (q)
Qualified emerging Qualified investments under
technology company subdivision twelve-F of
S. 675 4
capital tax credit section two hundred ten
under subsection (r)
Credit for purchase of an Cost of an automated
automated external defibrillator external defibrillator under
under subsection (s) subdivision twenty-five of
section two hundred ten
or subsection (j) of section
fourteen hundred fifty-six
Low-income housing Credit amount under
credit under subsection (x) subdivision thirty
of section two hundred ten or
subsection (l) of section
fourteen hundred fifty-six
Credit for transportation Amount of credit under sub-
improvement contributions division thirty-two of section
under subsection (z) two hundred ten or subsection
(n) of section fourteen
hundred fifty-six
QEZE credit for real property Amount of credit under
taxes under subsection (bb) subdivision twenty-seven of
section two hundred ten or
subsection (o) of section
fourteen hundred fifty-six
QEZE tax reduction credit Amount of benefit period
under subsection (cc) factor, 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
Green building credit Amount of green building credit
under subsection (y) under subdivision thirty-one
of section two hundred ten
or subsection (m) of section
fourteen hundred fifty-six
Credit for long-term Qualified costs under
care insurance premiums subdivision twenty-five-a of
under subsection (aa) section two hundred ten
or subsection (k) of section
fourteen hundred fifty-six
Brownfield redevelopment Amount of credit
credit under subsection under subdivision
(dd) thirty-three of section
S. 675 5
two hundred ten
or subsection (q) of
section fourteen hundred
fifty-six
Remediated brownfield Amount of credit under
credit for real property subdivision thirty-four
taxes for qualified of section two hundred
sites under subsection ten or subsection (r) of
(ee) section fourteen hundred
fifty-six
Environmental Amount of credit under
remediation subdivision thirty-five of
insurance credit under section two hundred
subsection (ff) ten or subsection
(s) of section
fourteen hundred
fifty-six
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
Qualified emerging Qualifying expenditures and
technology company facilities, development activities under
operations and training credit subdivision twelve-G of section
under subsection (nn) two hundred ten
Security training tax Amount of credit
credit under under subdivision thirty-seven
subsection (ii) of section two hundred ten or
under subsection (t) of
section fourteen hundred fifty-six
Credit for qualified fuel Amount of credit under
cell electric generating equipment subdivision thirty-seven
expenditures under subsection (g-2) of section two hundred ten
or subsection (t) of
section fourteen hundred
fifty-six
Empire state commercial production Amount of credit for qualified
credit under subsection (jj) production costs in production
of a qualified commercial under
subdivision thirty-eight of sec-
tion two hundred ten
Biofuel production Amount of credit
tax credit under under subdivision
subsection (jj) thirty-eight of
section two hundred ten
S. 675 6
Clean heating fuel credit Amount of credit under
under subsection (mm) subdivision thirty-nine of
section two hundred ten
Credit for rehabilitation Amount of credit under
of historic properties subdivision forty of
under subsection (oo) [subsection] SECTION
two hundred ten
Credit for companies who Amount of credit under
provide transportation subdivision forty of
to individuals section two hundred ten
with disabilities
under subsection (oo)
CREDIT FOR HEALTH CREDIT UNDER SUBDIVISION
INSURANCE PREMIUMS FOR FORTY-ONE OF SECTION
CERTAIN EMPLOYEES TWO HUNDRED TEN
UNDER SUBSECTION (QQ)
S 3. Section 606 of the tax law is amended by adding two new
subsections (qq) and (rr) to read as follows:
(QQ) CREDIT FOR HEALTH INSURANCE PREMIUMS PAID FOR CERTAIN EMPLOYEES.
(1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST
THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE FOLLOWING PERCENTAGES OF
THE PREMIUMS PAID FOR HEALTH INSURANCE FOR QUALIFIED EMPLOYEES DURING
THE FOLLOWING TAXABLE YEARS:
PERCENTAGE OF
TAXABLE YEAR PREMIUMS
(A) TWO THOUSAND TEN FIVE PERCENT
(B) TWO THOUSAND ELEVEN TEN PERCENT
(C) TWO THOUSAND TWELVE FIFTEEN PERCENT
(D) TWO THOUSAND THIRTEEN TWENTY PERCENT
(E) TWO THOUSAND TWENTY-FIVE
FOURTEEN AND TAXABLE YEARS PERCENT.
THEREAFTER
(2) QUALIFIED EMPLOYEE. A QUALIFIED EMPLOYEE IS AN EMPLOYEE OF THE
TAXPAYER WHO:
(A) PRIOR TO THE PROVISION OF HEALTH INSURANCE BY THE TAXPAYER, DID
NOT HAVE HEALTH INSURANCE COVERAGE FOR THE PREVIOUS SIX MONTHS OR MORE
OR HAS HAD HIS OR HER COVERAGE UNDER COBRA EXPIRE; AND
(B) HAS A NEW YORK TAXABLE INCOME FOR THE TAXABLE YEAR, INCLUDING THE
NEW YORK TAXABLE INCOME OF HIS OR HER SPOUSE IF ANY, OF:
(I) FORTY THOUSAND DOLLARS OR LESS AND HAS NO DEPENDENTS;
(II) SIXTY THOUSAND DOLLARS OR LESS WITH ONE DEPENDENT;
(III) SEVENTY-FIVE THOUSAND DOLLARS OR LESS WITH TWO DEPENDENTS;
(IV) EIGHTY-FIVE THOUSAND DOLLARS OR LESS WITH THREE DEPENDENTS;
(V) AN ADDITIONAL SEVEN THOUSAND FIVE HUNDRED DOLLARS OF ANNUAL INCOME
FOR EACH DEPENDENT IN ADDITION TO THREE DEPENDENTS; AND
(C) HAS BEEN EMPLOYED BY THE TAXPAYER FOR NOT LESS THAN ONE YEAR.
(3) HEALTH INSURANCE. HEALTH INSURANCE IS ANY 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, FOUR THOUSAND THREE HUNDRED TWENTY-ONE, FOUR THOU-
S. 675 7
SAND THREE HUNDRED TWENTY-TWO-A, FOUR THOUSAND THREE HUNDRED TWENTY-SIX
OR FOUR THOUSAND EIGHT HUNDRED ONE OF THE INSURANCE LAW, ARTICLE FORTY-
FOUR OF THE PUBLIC HEALTH LAW, SECTION THREE HUNDRED SIXTY-NINE-EE OF
THE SOCIAL SERVICES LAW OR ANY OTHER SIMILAR ACCIDENT AND HEALTH INSUR-
ANCE POLICY.
(4) TAXABLE INCOME OF EMPLOYEES. A TAXPAYER MAY REQUEST AND SHALL
RECEIVE, ON OR BEFORE FEBRUARY FIFTEENTH IMMEDIATELY FOLLOWING THE END
OF THE TAXABLE YEAR IN WHICH THE CREDIT ESTABLISHED BY THIS SUBSECTION
IS CLAIMED, FROM ANY EMPLOYEE THE TAXPAYER REASONABLY BELIEVES IS A
QUALIFIED EMPLOYEE, A REASONABLE ESTIMATE OF SUCH EMPLOYEE'S NEW YORK
TAXABLE INCOME INCLUDING THAT OF HIS OR HER SPOUSE IF ANY.
(5) CARRYOVER. IF THE AMOUNT OF 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.
(RR) CREDIT FOR HEALTH INSURANCE PREMIUMS. (1) ALLOWANCE OF CREDIT. A
QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE EQUAL TO THE FOLLOWING PERCENTAGES OF THE PREMIUMS PAID FOR
HEALTH INSURANCE DURING THE FOLLOWING TAXABLE YEARS:
PERCENTAGE OF
TAXABLE YEAR PREMIUMS
(A) TWO THOUSAND TEN FIVE PERCENT
(B) TWO THOUSAND ELEVEN TEN PERCENT
(C) TWO THOUSAND TWELVE FIFTEEN PERCENT
(D) TWO THOUSAND THIRTEEN TWENTY PERCENT
(E) TWO THOUSAND FOURTEEN AND TAXABLE TWENTY-FIVE PERCENT.
YEARS THEREAFTER
(2) QUALIFIED TAXPAYER. A QUALIFIED TAXPAYER IS A TAXPAYER WHO:
(A) DID NOT HAVE HEALTH INSURANCE COVERAGE FOR THE PREVIOUS SIX MONTHS
OR MORE OR HAS HAD HIS OR HER COVERAGE UNDER COBRA EXPIRE; AND
(B) HAS A NEW YORK TAXABLE INCOME FOR THE TAXABLE YEAR, INCLUDING THE
NEW YORK TAXABLE INCOME OF HIS OR HER SPOUSE IF ANY, OF:
(I) FORTY THOUSAND DOLLARS OR LESS AND NO DEPENDENTS;
(II) SIXTY THOUSAND DOLLARS OR LESS WITH ONE DEPENDENT;
(III) SEVENTY-FIVE THOUSAND DOLLARS OR LESS WITH TWO DEPENDENTS;
(IV) EIGHTY-FIVE THOUSAND DOLLARS OR LESS WITH THREE DEPENDENTS; AND
(V) AN ADDITIONAL SEVEN THOUSAND FIVE HUNDRED DOLLARS OF ANNUAL INCOME
FOR EACH DEPENDENT IN ADDITION TO THREE DEPENDENTS.
(3) HEALTH INSURANCE. HEALTH INSURANCE IS ANY 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, FOUR THOUSAND THREE HUNDRED TWENTY-ONE, FOUR THOU-
SAND THREE HUNDRED TWENTY-TWO-A, FOUR THOUSAND THREE HUNDRED TWENTY-SIX
OR FOUR THOUSAND EIGHT HUNDRED ONE OF THE INSURANCE LAW, ARTICLE FORTY-
FOUR OF THE PUBLIC HEALTH LAW, SECTION THREE HUNDRED SIXTY-NINE-EE OF
THE SOCIAL SERVICES LAW OR ANY OTHER SIMILAR ACCIDENT AND HEALTH INSUR-
ANCE POLICY.
(4) CARRYOVER. IF THE AMOUNT OF 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.
S 4. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
(U) CREDIT FOR HEALTH INSURANCE PREMIUMS PAID FOR CERTAIN EMPLOYEES.
(1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST
THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE FOLLOWING PERCENTAGES OF
S. 675 8
THE PREMIUMS PAID FOR HEALTH INSURANCE FOR QUALIFIED EMPLOYEES DURING
THE FOLLOWING TAXABLE YEARS:
PERCENTAGE OF
TAXABLE YEAR PREMIUMS
(A) TWO THOUSAND TEN FIVE PERCENT
(B) TWO THOUSAND ELEVEN TEN PERCENT
(C) TWO THOUSAND TWELVE FIFTEEN PERCENT
(D) TWO THOUSAND THIRTEEN TWENTY PERCENT
(E) TWO THOUSAND FOURTEEN TWENTY-FIVE PERCENT.
AND TAXABLE YEARS
THEREAFTER
(2) QUALIFIED EMPLOYEE. A QUALIFIED EMPLOYEE IS AN EMPLOYEE OF THE
TAXPAYER WHO:
(A) PRIOR TO THE PROVISION OF HEALTH INSURANCE BY THE TAXPAYER, DID
NOT HAVE HEALTH INSURANCE COVERAGE FOR THE PREVIOUS SIX MONTHS OR MORE
OR HAS HAD HIS OR HER COVERAGE UNDER COBRA EXPIRE; AND
(B) HAS A NEW YORK TAXABLE INCOME FOR THE TAXABLE YEAR, INCLUDING THE
NEW YORK TAXABLE INCOME OF HIS OR HER SPOUSE IF ANY, OF:
(I) FORTY THOUSAND DOLLARS OR LESS AND HAS NO DEPENDENTS;
(II) SIXTY THOUSAND DOLLARS OR LESS WITH ONE DEPENDENT;
(III) SEVENTY-FIVE THOUSAND DOLLARS OR LESS WITH TWO DEPENDENTS;
(IV) EIGHTY-FIVE THOUSAND DOLLARS OR LESS WITH THREE DEPENDENTS;
(V) AN ADDITIONAL SEVEN THOUSAND FIVE HUNDRED DOLLARS OF ANNUAL INCOME
FOR EACH DEPENDENT IN ADDITION TO THREE DEPENDENTS; AND
(C) HAS BEEN EMPLOYED BY THE TAXPAYER FOR NOT LESS THAN ONE YEAR.
(3) HEALTH INSURANCE. HEALTH INSURANCE IS ANY 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, FOUR THOUSAND THREE HUNDRED TWENTY-ONE, FOUR THOU-
SAND THREE HUNDRED TWENTY-TWO-A, FOUR THOUSAND THREE HUNDRED TWENTY-SIX
OR FOUR THOUSAND EIGHT HUNDRED ONE OF THE INSURANCE LAW, ARTICLE FORTY-
FOUR OF THE PUBLIC HEALTH LAW, SECTION THREE HUNDRED SIXTY-NINE-EE OF
THE SOCIAL SERVICES LAW OR ANY SIMILAR ACCIDENT AND HEALTH INSURANCE
POLICY.
(4) TAXABLE INCOME OF EMPLOYEES. A TAXPAYER MAY REQUEST AND SHALL
RECEIVE, ON OR BEFORE FEBRUARY FIFTEENTH IMMEDIATELY FOLLOWING THE END
OF THE TAXABLE YEAR IN WHICH THE CREDIT ESTABLISHED BY THIS SUBSECTION
IS CLAIMED, FROM ANY EMPLOYEE THE TAXPAYER REASONABLY BELIEVES IS A
QUALIFIED EMPLOYEE, A REASONABLE ESTIMATE OF SUCH EMPLOYEE'S NEW YORK
TAXABLE INCOME INCLUDING THAT OF HIS OR HER SPOUSE IF ANY.
(5) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED
FIFTY-FIVE OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, THEN ANY AMOUNT OF CREDIT THUS 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 5. Section 1511 of the tax law is amended by adding a new subdivi-
sion (y) to read as follows:
S. 675 9
(Y) CREDIT FOR HEALTH INSURANCE PREMIUMS PAID FOR CERTAIN EMPLOYEES.
(1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST
THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE FOLLOWING PERCENTAGES OF
THE PREMIUMS PAID FOR HEALTH INSURANCE FOR QUALIFIED EMPLOYEES DURING
THE FOLLOWING TAXABLE YEARS:
PERCENTAGE OF
TAXABLE YEAR PREMIUMS
(A) TWO THOUSAND TEN FIVE PERCENT
(B) TWO THOUSAND ELEVEN TEN PERCENT
(C) TWO THOUSAND TWELVE FIFTEEN PERCENT
(D) TWO THOUSAND THIRTEEN TWENTY PERCENT
(E) TWO THOUSAND FOURTEEN TWENTY-FIVE PERCENT.
AND TAXABLE YEARS
THEREAFTER
(2) QUALIFIED EMPLOYEES. A QUALIFIED EMPLOYEE IS AN EMPLOYEE OF THE
TAXPAYER WHO:
(A) PRIOR TO THE PROVISION OF HEALTH INSURANCE BY THE TAXPAYER, DID
NOT HAVE HEALTH INSURANCE COVERAGE FOR THE PREVIOUS SIX MONTHS OR MORE
OR HAS HAD HIS OR HER COVERAGE UNDER COBRA EXPIRE; AND
(B) HAS A NEW YORK TAXABLE INCOME FOR THE TAXABLE YEAR, INCLUDING THE
NEW YORK TAXABLE INCOME OF HIS OR HER SPOUSE IF ANY, OF:
(I) FORTY THOUSAND DOLLARS OR LESS AND HAS NO DEPENDANTS;
(II) SIXTY THOUSAND DOLLARS OR LESS WITH ONE DEPENDANT;
(III) SEVENTY-FIVE THOUSAND DOLLARS OR LESS WITH TWO DEPENDANTS;
(IV) EIGHTY-FIVE THOUSAND DOLLARS OR LESS WITH THREE DEPENDANTS;
(V) AN ADDITIONAL SEVEN THOUSAND FIVE HUNDRED DOLLARS OF ANNUAL INCOME
FOR EACH DEPENDANT IN ADDITION TO THREE DEPENDANTS; AND
(C) HAS BEEN EMPLOYED BY THE TAXPAYER FOR NOT LESS THAN ONE YEAR.
(3) HEALTH INSURANCE. HEALTH INSURANCE IS ANY 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, FOUR THOUSAND THREE HUNDRED TWENTY-ONE, FOUR THOU-
SAND THREE HUNDRED TWENTY-TWO-A, FOUR THOUSAND THREE HUNDRED TWENTY-SIX
OR FOUR THOUSAND EIGHT HUNDRED ONE OF THE INSURANCE LAW, ARTICLE FORTY-
FOUR OF THE PUBLIC HEALTH LAW, SECTION THREE HUNDRED SIXTY-NINE-EE OF
THE SOCIAL SERVICES LAW OR ANY SIMILAR ACCIDENT AND HEALTH INSURANCE
POLICY.
(4) TAXABLE INCOME OF EMPLOYEES. A TAXPAYER MAY REQUEST AND SHALL
RECEIVE, ON OR BEFORE FEBRUARY FIFTEENTH IMMEDIATELY FOLLOWING THE END
OF THE TAXABLE YEAR IN WHICH THE CREDIT ESTABLISHED BY THIS SUBDIVISION
IS CLAIMED, FROM ANY EMPLOYEE THE TAXPAYER REASONABLY BELIEVES IS A
QUALIFIED EMPLOYEE, A REASONABLE ESTIMATE OF SUCH EMPLOYEE'S NEW YORK
TAXABLE INCOME INCLUDING THAT OF HIS OR HER SPOUSE IF ANY.
(5) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF
SECTION FIFTEEN HUNDRED TWO 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 THUS 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 6. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2010; provided, however, that
S. 675 10
the empire state film production credit under subsection (gg), the
empire state commercial production credit under subsection (jj) and the
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.
