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

                                  10138

                          I N  A S S E M B L Y

                               May 9, 2012
                               ___________

Introduced by M. of A. CAMARA -- read once and referred to the Committee
  on Ways and Means

AN  ACT to amend the tax law, in relation to establishing business fran-
  chise and personal income tax credits  for  certain  businesses  which
  contract with the state or political subdivisions thereof and in unre-
  lated  contracts,  also  with minority and women-owned business enter-
  prises

  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 45 to read as follows:
  45. MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT. (A)
GENERAL. A TAXPAYER SHALL  BE  ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS
PROVIDED  IN  THIS  SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE
FOR A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR  WOMEN-
OWNED  BUSINESS  ENTERPRISE  PURSUANT TO A CONTRACT FOR THE PROVISION OF
GOODS OR SERVICES. THE CREDIT PROVIDED FOR IN THIS SUBDIVISION SHALL  BE
ALLOWED  WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID
TO THE MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
  (B) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION,  THE  FOLLOWING
TERMS SHALL MEAN:
  (I)  "GOVERNMENT  AGENCY" MEANS A STATE AGENCY OR A STATE AUTHORITY AS
DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
TIVE LAW, OR A POLITICAL SUBDIVISION AS DEFINED IN  SUBDIVISION  ONE  OF
SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
  (II)   "MINORITY   OR   WOMEN-OWNED   BUSINESS   ENTERPRISE"  MEANS  A
MINORITY-OWNED BUSINESS ENTERPRISE AS DEFINED IN  SUBDIVISION  SEVEN  OF
SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS
ENTERPRISE  AS  DEFINED  IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED
TEN OF THE EXECUTIVE LAW.
  (C) COMPUTATION. THE CREDIT AUTHORIZED BY THIS  SUBDIVISION  SHALL  BE
EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
TY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE PURSUANT TO A CONTRACT FOR THE
PROVISION OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT  SUCH

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

                                                           LBD14861-01-2

A. 10138                            2

CONTRACT  WAS  NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A OF THE
EXECUTIVE LAW OR ANY OTHER PROVISION OF LAW RELATING TO THE  AFFIRMATIVE
ACTION,  AND  THE  TAXPAYER  IS  NOT  A MINORITY OR WOMEN-OWNED BUSINESS
ENTERPRISE.    FURTHERMORE,  THE  AMOUNT OF SUCH CREDIT SHALL NOT EXCEED
FIVE PERCENT OF ALL CONSIDERATION PAID TO THE TAXPAYER  DURING  THE  TAX
YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF
GOODS OR SERVICES.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xxxiv)  to  read  as
follows:
(XXXIV) MINORITY AND                 AMOUNT OF CREDIT
WOMEN-OWNED BUSINESS                 UNDER SUBDIVISION
EMPLOYMENT INCENTIVE                 FORTY-FIVE OF
CREDIT UNDER                         SECTION TWO
SUBSECTION (UU)                      HUNDRED TEN
  S  3. Section 606 of the tax law is amended by adding a new subsection
(uu) to read as follows:
  (UU) MINORITY AND WOMEN-OWNED BUSINESS  EMPLOYMENT  INCENTIVE  CREDIT.
(1)  GENERAL.  A  TAXPAYER  SHALL  BE ALLOWED A CREDIT TO BE COMPUTED AS
PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-OWNED
BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS OR
SERVICES.  THE CREDIT PROVIDED FOR IN THIS SUBSECTION SHALL  BE  ALLOWED
WITH  RESPECT  TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID TO THE
MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS  SUBSECTION,  THE  FOLLOWING
TERMS SHALL MEAN:
  (I)  "GOVERNMENT  AGENCY" MEANS A STATE AGENCY OR A STATE AUTHORITY AS
DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
TIVE LAW, OR A POLITICAL SUBDIVISION AS DEFINED IN  SUBDIVISION  ONE  OF
SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
  (II)   "MINORITY   OR   WOMEN-OWNED   BUSINESS   ENTERPRISE"  MEANS  A
MINORITY-OWNED BUSINESS ENTERPRISE AS DEFINED IN  SUBDIVISION  SEVEN  OF
SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS
ENTERPRISE  AS  DEFINED  IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED
TEN OF THE EXECUTIVE LAW.
  (3) COMPUTATION. THE CREDIT AUTHORIZED BY  THIS  SUBSECTION  SHALL  BE
EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
TY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE PURSUANT TO A CONTRACT FOR THE
PROVISION OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT  SUCH
CONTRACT  WAS  NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A OF THE
EXECUTIVE LAW OR ANY OTHER PROVISION  OF  LAW  RELATING  TO  AFFIRMATIVE
ACTION,  AND  THE  TAXPAYER  IS  NOT  A MINORITY OR WOMEN-OWNED BUSINESS
ENTERPRISE.  FURTHERMORE, THE AMOUNT OF SUCH  CREDIT  SHALL  NOT  EXCEED
FIVE  PERCENT  OF  ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX
YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF
GOODS OR SERVICES.
  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 and shall apply to tax
years commencing on or after such date.