S. 1891 2
TO THE AMOUNT OF WITHHOLDING, REQUIRED BY ARTICLE TWENTY-TWO OF THIS
CHAPTER, REMITTED TO THE STATE FOR EACH NEW EMPLOYEE. THE CREDIT SHALL
NOT BE MORE THAN FIVE THOUSAND DOLLARS FOR ANY NEW EMPLOYEE FOR ONE FULL
YEAR OF EMPLOYMENT; IF A NEW EMPLOYEE HAS BEEN HIRED FOR LESS THAN A
FULL TAX YEAR THIS AMOUNT SHALL BE PRORATED AND APPORTIONED TO EACH TAX
YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE YEARS OF CREDIT ELIGI-
BILITY. THE TAXPAYER MAY CLAIM THIS CREDIT FOR EACH NEW EMPLOYEE FOR A
PERIOD OF THREE YEARS OF EMPLOYMENT. THE TAXPAYER MAY OFFSET QUARTERLY
ESTIMATED RETURNS WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS
QUARTER.
(B) FOR CALENDAR YEARS TWO THOUSAND ELEVEN AND TWO THOUSAND TWELVE IF
A NEW EMPLOYEE WAS RECEIVING UNEMPLOYMENT INSURANCE BENEFITS AT THE TIME
OF HIRE, AN ADDITIONAL THREE THOUSAND DOLLAR CREDIT WILL BE ALLOWED FOR
THE FIRST FULL YEAR OF EMPLOYMENT.
(C) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
(2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND TEN.
(3) "BASE EMPLOYMENT" SHALL MEAN THE AVERAGE NUMBER OF FULL TIME
EMPLOYEES OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
(4) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
(5) "WITHHOLDING" FOR THE PURPOSES OF THIS SECTION SHALL BE THE WITH-
HOLDING REQUIRED BY ARTICLE TWENTY-TWO OF THIS CHAPTER CALCULATED USING
THE EMPLOYEES APPLICABLE WAGE AND FILING STATUS WITH ONE EXEMPTION.
(D) REPLACEMENT EMPLOYEES. IF A NEW EMPLOYEE FOR WHICH A CREDIT WAS
EARNED LEAVES THE PAYROLL AND AN EMPLOYEE IS HIRED WHICH BRINGS TOTAL
EMPLOYMENT ABOVE BASE EMPLOYMENT BUT AT OR BELOW CREDIT EMPLOYMENT
LEVEL, THE CREDIT ELIGIBILITY PERIOD FOR SUCH EMPLOYEE SHALL BE THREE
YEARS MINUS THE AMOUNT OF TIME (ROUNDED TO THE NEXT FULL MONTH) THE
DEPARTING EMPLOYEE RECEIVED THE CREDIT.
(E) FEDERAL ARRA (AMERICAN RECOVERY AND REINVESTMENT ACT) FUNDS SUFFI-
CIENT TO COVER THE TOTAL AMOUNT OF THE ADDITIONAL THREE THOUSAND DOLLAR
CREDIT CLAIMED FOR HIRING OFF THE UNEMPLOYMENT ROLLS FOUND IN SUBDIVI-
SION (B) OF THIS SECTION SHALL BE TRANSFERRED FROM THE SPECIAL FUND
ESTABLISHED IN SECTION FIVE HUNDRED FIFTY-TWO OF THE LABOR LAW TO THE
GENERAL FUND.
S 2. Section 210 of the tax law is amended by adding a new subdivision
43 to read as follows:
43. NEW YORK JOBS TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL
BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-ONE-A
OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY 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. 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 WILL 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 WILL BE PAID THEREON.
S. 1891 3
S 3. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
(SS) NEW YORK JOBS TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CRED-
IT, TO THE EXTENT ALLOWED UNDER SECTION THIRTY-ONE-A OF THIS CHAPTER,
AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL 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 WILL BE
PAID THEREON.
S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xxxii) to read as
follows:
(XXXII) NEW YORK JOBS TAX AMOUNT OF CREDIT UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (SS) FORTY-THREE OF SECTION TWO HUNDRED TEN
S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2011.
PART B
Section 1. The opening paragraph of subsection (a), the opening para-
graph of subsection (b) and the opening paragraph of subsection (c) of
section 601 of the tax law, as amended by section 1 of part Z-1 of chap-
ter 57 of the laws of 2009, are amended to read as follows:
Resident married individuals filing joint returns and resident surviv-
ing spouses. There is hereby imposed for each taxable year on the New
York taxable income of every resident married individual who makes a
single return jointly with his spouse under subsection (b) of section
six hundred fifty-one OF THIS ARTICLE and on the New York taxable income
of every resident surviving spouse a tax determined in accordance with
the following tables. PROVIDED HOWEVER, FOR THE TAXABLE YEAR BEGINNING
IN TWO THOUSAND ELEVEN, IF THE TAXPAYER HAS SMALL BUSINESS TAXABLE
INCOME, AS CALCULATED IN SECTION SIX HUNDRED ELEVEN OF THIS ARTICLE,
THEN THE TAX DETERMINED BY THIS SUBSECTION SHALL BE THE COMBINATION OF
THE TAX ON SMALL BUSINESS TAXABLE INCOME DETERMINED BY USING THE TABLE
IN PARAGRAPH TWO OF THIS SUBSECTION AND THE TAX ON THE AMOUNT RESULTING
WHEN SMALL BUSINESS TAXABLE INCOME IS SUBTRACTED FROM NEW YORK TAXABLE
INCOME, DETERMINED BY USING THE TABLE IN PARAGRAPH ONE OF THIS
SUBSECTION:
Resident heads of households. There is hereby imposed for each taxable
year on the New York taxable income of every resident head of a house-
hold a tax determined in accordance with the following tables. PROVIDED
HOWEVER, FOR THE TAXABLE YEAR BEGINNING IN TWO THOUSAND ELEVEN, IF THE
TAXPAYER HAS SMALL BUSINESS TAXABLE INCOME, AS CALCULATED IN SECTION SIX
HUNDRED ELEVEN OF THIS ARTICLE, THEN THE TAX DETERMINED BY THIS
SUBSECTION SHALL BE THE COMBINATION OF THE TAX ON SMALL BUSINESS TAXABLE
INCOME DETERMINED BY USING THE TABLE IN PARAGRAPH TWO OF THIS SUBSECTION
AND THE TAX ON THE AMOUNT RESULTING WHEN SMALL BUSINESS TAXABLE INCOME
IS SUBTRACTED FROM NEW YORK TAXABLE INCOME, DETERMINED BY USING THE
TABLE IN PARAGRAPH ONE OF THIS SUBSECTION:
Resident unmarried individuals, resident married individuals filing
separate returns and resident estates and trusts. There is hereby
imposed for each taxable year on the New York taxable income of every
resident individual who is not a married individual who makes a single
S. 1891 4
return jointly with his spouse under subsection (b) of section six
hundred fifty-one OF THIS ARTICLE or a resident head of a household or a
resident surviving spouse, and on the New York taxable income of every
resident estate and trust a tax determined in accordance with the
following tables. PROVIDED HOWEVER, FOR THE TAXABLE YEAR BEGINNING IN
TWO THOUSAND ELEVEN, IF THE TAXPAYER HAS SMALL BUSINESS TAXABLE INCOME,
AS CALCULATED IN SECTION SIX HUNDRED ELEVEN OF THIS ARTICLE, THEN THE
TAX DETERMINED BY THIS SUBSECTION SHALL BE THE COMBINATION OF THE TAX ON
SMALL BUSINESS TAXABLE INCOME DETERMINED BY USING THE TABLE IN PARAGRAPH
TWO OF THIS SUBSECTION AND THE TAX ON THE AMOUNT RESULTING WHEN SMALL
BUSINESS TAXABLE INCOME IS SUBTRACTED FROM NEW YORK TAXABLE INCOME,
DETERMINED BY USING THE TABLE IN PARAGRAPH ONE OF THIS SUBSECTION:
S 2. Subparagraph (B) of paragraph 2 and subparagraph (B) of paragraph
3 of subsection (d) of section 601 of the tax law, subparagraph (B) of
paragraph 2 as amended by section 2 and subparagraph (B) of paragraph 3
as amended by section 3 of part Z-1 of chapter 57 of the laws of 2009,
are amended to read as follows:
(B) For taxable years beginning after two thousand two and before two
thousand six, the fraction is computed as follows: the numerator is the
lesser of fifty thousand dollars or the excess of New York adjusted
gross income for the taxable year over one hundred fifty thousand
dollars and the denominator is fifty thousand dollars. For taxable years
beginning after two thousand eight and before two thousand twelve, the
fraction is computed as follows: the numerator is the lesser of fifty
thousand dollars or the excess of New York adjusted gross income for the
taxable year over three hundred thousand dollars and the denominator is
fifty thousand dollars. FOR THE PURPOSES OF THIS SUBPARAGRAPH, FOR THE
TAXABLE YEAR BEGINNING IN TWO THOUSAND ELEVEN, INCOME DERIVED AS A SOLE
PROPRIETOR, MEMBER OF A PARTNERSHIP OR A SHAREHOLDER OF A BUSINESS THAT
EMPLOYS FIFTY OR LESS EMPLOYEES OR THE ENTIRE NET INCOME BASE OF THE
BUSINESS ENTITY IS LESS THAN TWO MILLION DOLLARS SHALL NOT BE INCLUDED
IN ADJUSTED GROSS INCOME.
(B) For such taxpayers with adjusted gross income over five hundred
thousand dollars, for taxable years beginning after two thousand eight
and before two thousand twelve, the fraction is computed as follows: the
numerator is the lesser of fifty thousand dollars or the excess of New
York adjusted gross income for the taxable year over five hundred thou-
sand dollars and the denominator is fifty thousand dollars. Provided,
however, that the total tax prior to the application of any tax credits
shall not exceed the highest rate of tax set forth in the tax table in
subsection (a) of this section multiplied by the taxpayer's taxable
income. FOR THE PURPOSES OF THIS SUBPARAGRAPH, FOR THE TAXABLE YEAR
BEGINNING IN TWO THOUSAND ELEVEN, INCOME DERIVED AS A SOLE PROPRIETOR,
MEMBER OF A PARTNERSHIP OR A SHAREHOLDER OF A BUSINESS THAT EMPLOYS
FIFTY OR LESS EMPLOYEES OR THE ENTIRE NET INCOME BASE OF THE BUSINESS
ENTITY IS LESS THAN TWO MILLION DOLLARS SHALL NOT BE INCLUDED IN
ADJUSTED GROSS INCOME.
S 3. Section 611 of the tax law is amended by adding a new subsection
(c) to read as follows:
(C) FOR THE TAXABLE YEAR BEGINNING IN TWO THOUSAND ELEVEN, TAXABLE
INCOME DERIVED AS A SOLE PROPRIETOR, MEMBER OF A PARTNERSHIP OR SHARE-
HOLDER OF A BUSINESS THAT EMPLOYS FIFTY OR LESS EMPLOYEES OR THE ENTIRE
NET INCOME BASE OF THE BUSINESS ENTITY IS LESS THAN TWO MILLION DOLLARS
SHALL BE REFERRED TO AS "SMALL BUSINESS TAXABLE INCOME" CALCULATED AS
FOLLOWS: TOTAL TAXABLE INCOME OF THE TAXPAYER SHALL BE MULTIPLIED BY A
FRACTION, THE NUMERATOR BEING THE AMOUNT OF ADJUSTED GROSS INCOME
S. 1891 5
DERIVED AS A SOLE PROPRIETOR, MEMBER OF A PARTNERSHIP OR SHAREHOLDER OF
A BUSINESS THAT EMPLOYS FIFTY OR LESS EMPLOYEES OR THE ENTIRE NET INCOME
BASE OF THE BUSINESS ENTITY IS LESS THAN TWO MILLION DOLLARS AND THE
DENOMINATOR BEING THE TOTAL ADJUSTED GROSS INCOME OF THE TAXPAYER.
S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2011.
PART C
Section 1. Paragraph (a) of subdivision 1 of section 210 of the tax
law, as amended by section 2 of part N of chapter 60 of the laws of
2007, is amended to read as follows:
(a) Entire net income base. For taxable years beginning before July
first, nineteen hundred ninety-nine, the amount prescribed by this para-
graph shall be computed at the rate of nine percent of the taxpayer's
entire net income base. For taxable years beginning after June thirti-
eth, nineteen hundred ninety-nine and before July first, two thousand,
the amount prescribed by this paragraph shall be computed at the rate of
eight and one-half percent of the taxpayer's entire net income base. For
taxable years beginning after June thirtieth, two thousand and before
July first, two thousand one, the amount prescribed by this paragraph
shall be computed at the rate of eight percent of the taxpayer's entire
net income base. For taxable years beginning after June thirtieth, two
thousand one and before January first, two thousand seven, the amount
prescribed by this paragraph shall be computed at the rate of seven and
one-half percent of the taxpayer's entire net income base. For taxable
years beginning on or after January first, two thousand seven, the
amount prescribed by this paragraph shall be computed at the rate of
seven and one-tenth percent of the taxpayer's entire net income base.
The taxpayer's entire net income base shall mean the portion of the
taxpayer's entire net income allocated within the state as hereinafter
provided, subject to any modification required by paragraphs (d) and (e)
of subdivision three of this section. However, in the case of a small
business taxpayer, as defined in paragraph (f) of this subdivision, the
amount prescribed by this paragraph shall be computed pursuant to
subparagraph (iv) of this paragraph and in the case of a manufacturer,
as defined in subparagraph [(vi)] (VIII) of this paragraph, the amount
prescribed by this paragraph shall be computed pursuant to subparagraph
[(vi)] (VIII) of this paragraph.
(i) if the entire net income base is not more than two hundred thou-
sand dollars, (1) for taxable years beginning before July first, nine-
teen hundred ninety-nine, the amount shall be eight percent of the
entire net income base; (2) for taxable years beginning after June thir-
tieth, nineteen hundred ninety-nine and before July first, two thousand
three, the amount shall be seven and one-half percent of the entire net
income base; and (3) for taxable years beginning after June thirtieth,
two thousand three and before January first, two thousand five, the
amount shall be 6.85 percent of the entire net income base;
(ii) if the entire net income base is more than two hundred thousand
dollars but not over two hundred ninety thousand dollars, (1) for taxa-
ble years beginning before July first, nineteen hundred ninety-nine, the
amount shall be the sum of (a) sixteen thousand dollars, (b) nine
percent of the excess of the entire net income base over two hundred
thousand dollars and (c) five percent of the excess of the entire net
income base over two hundred fifty thousand dollars; (2) for taxable
years beginning after June thirtieth, nineteen hundred ninety-nine and
S. 1891 6
before July first, two thousand, the amount shall be the sum of (a)
fifteen thousand dollars, (b) eight and one-half percent of the excess
of the entire net income base over two hundred thousand dollars and (c)
five percent of the excess of the entire net income base over two
hundred fifty thousand dollars; (3) for taxable years beginning after
June thirtieth, two thousand and before July first, two thousand one,
the amount shall be the sum of (a) fifteen thousand dollars, (b) eight
percent of the excess of the entire net income base over two hundred
thousand dollars and (c) two and one-half percent of the excess of the
entire net income base over two hundred fifty thousand dollars; (4) for
taxable years beginning after June thirtieth, two thousand one and
before July first, two thousand three, the amount shall be seven and
one-half percent of the entire net income base; and (5) for taxable
years beginning after June thirtieth, two thousand three and before
January first, two thousand five, the amount shall be the sum of (a)
thirteen thousand seven hundred dollars, (b) 7.5 percent of the excess
of the entire net income base over two hundred thousand dollars and (c)
3.25 percent of the excess of the entire net income base over two
hundred fifty thousand dollars;
(iii) for taxable years beginning on or after January first, two thou-
sand five and ending before January first, two thousand seven, if the
entire net income base is not more than two hundred ninety thousand
dollars the amount shall be six and one-half percent of the entire net
income base; if the entire net income base is more than two hundred
ninety thousand dollars but not over three hundred ninety thousand
dollars the amount shall be the sum of (1) eighteen thousand eight
hundred fifty dollars, (2) seven and one-half percent of the excess of
the entire net income base over two hundred ninety thousand dollars but
not over three hundred ninety thousand dollars and (3) seven and one-
quarter percent of the excess of the entire net income base over three
hundred fifty thousand dollars but not over three hundred ninety thou-
sand dollars;
(iv) for taxable years beginning on or after January first, two thou-
sand seven, if the entire net income base is not more than two hundred
ninety thousand dollars the amount shall be six and one-half percent of
the entire net income base; if the entire net income base is more than
two hundred ninety thousand dollars but not over three hundred ninety
thousand dollars the amount shall be the sum of (1) eighteen thousand
eight hundred fifty dollars, (2) seven and one-tenth percent of the
excess of the entire net income base over two hundred ninety thousand
dollars but not over three hundred ninety thousand dollars and (3) four
and thirty-five hundredths percent of the excess of the entire net
income base over three hundred fifty thousand dollars but not over three
hundred ninety thousand dollars;
(v) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND ELEVEN, IF A TAXPAYER, OR ITS AFFILIATES, WHETHER DOMICILED IN THIS
STATE OR NOT, AT ANY TIME IN THE TAXPAYER'S TAXABLE YEAR, EMPLOYS NO
MORE THAN FIFTY PERSONS, OR IF THE TAXPAYER'S ENTIRE NET INCOME BASE IS
LESS THAN TWO MILLION DOLLARS, THE AMOUNT SHALL BE THREE AND ONE-QUARTER
PERCENT OF THE ENTIRE INCOME BASE;
(VI) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, IF A TAXPAYER, OR ITS AFFILIATES, WHETHER DOMICILED IN THIS
STATE OR NOT, AT ANY TIME IN THE TAXPAYER'S TAXABLE YEAR, EMPLOYS NO
MORE THAN FIFTY PERSONS, OR IF THE TAXPAYER'S ENTIRE NET INCOME BASE IS
LESS THAN TWO MILLION DOLLARS, THE AMOUNT SHALL BE ZERO;
S. 1891 7
(VII) if the taxable period to which subparagraphs (i), (ii), (iii),
[and] (iv) AND (V) of this paragraph apply is less than twelve months,
the amount prescribed by this paragraph shall be computed as follows:
(A) Multiply the entire net income base for such taxpayer by twelve;
(B) Divide the result obtained in (A) by the number of months in the
taxable year;
(C) Compute an amount pursuant to subparagraphs (i) and (ii) OF THIS
PARAGRAPH as if the result obtained in (B) were the taxpayer's entire
net income base;
(D) Multiply the result obtained in (C) by the number of months in the
taxpayer's taxable year;
(E) Divide the result obtained in (D) by twelve.
[(vi)] (VIII) for taxable years beginning on or after January thirty-
first, two thousand seven, the amount prescribed by this paragraph for a
taxpayer which is a qualified New York manufacturer, shall be computed
at the rate of six and one-half (6.5) percent of the taxpayer's entire
net income base. The term "manufacturer" shall mean a taxpayer which
during the taxable year is principally engaged in the production of
goods by manufacturing, processing, assembling, refining, mining,
extracting, farming, agriculture, horticulture, floriculture, viticul-
ture or commercial fishing. However, the generation and distribution of
electricity, the distribution of natural gas, and the production of
steam associated with the generation of electricity shall not be quali-
fying activities for a manufacturer under this subparagraph. Moreover,
the combined group shall be considered a "manufacturer" for purposes of
this subparagraph only if the combined group during the taxable year is
principally engaged in the activities set forth in this paragraph, or
any combination thereof. A taxpayer or a combined group shall be "prin-
cipally engaged" in activities described above if, during the taxable
year, more than fifty percent of the gross receipts of the taxpayer or
combined group, respectively, are derived from receipts from the sale of
goods produced by such activities. In computing a combined group's gross
receipts, intercorporate receipts shall be eliminated. A "qualified New
York manufacturer" is a manufacturer which has property in New York
which is described in clause (A) of subparagraph (i) of paragraph (b) of
subdivision twelve of this section and either (I) the adjusted basis of
such property for federal income tax purposes at the close of the taxa-
ble year is at least one million dollars or (II) all of its real and
personal property is located in New York. In addition, a "qualified New
York manufacturer" means a taxpayer which is defined as a qualified
emerging technology company under paragraph (c) of subdivision one of
section thirty-one hundred two-e of the public authorities law regard-
less of the ten million dollar limitation expressed in subparagraph one
of such paragraph (c).
(IX) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND ELEVEN, A TAXPAYER OR ITS AFFILIATES, WHETHER DOMICILED IN THIS
STATE OR NOT, THAT IS A "SMALL MANUFACTURER", THE AMOUNT SHALL BE THREE
AND ONE-QUARTER PERCENT OF THE ENTIRE INCOME BASE. A SMALL MANUFACTURER
IS A TAXPAYER, THAT AT ANY TIME IN THE TAXPAYER'S TAXABLE YEAR EMPLOYS
NO MORE THAN FIFTY PERSONS, OR THE TAXPAYER'S ENTIRE NET INCOME BASE IS
LESS THAN TWO MILLION DOLLARS, AND THE TAXPAYER MEETS THE DEFINITION OF
"MANUFACTURER" IN SUBPARAGRAPH (VIII) OF THIS PARAGRAPH;
(X) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND TWELVE, A TAXPAYER OR ITS AFFILIATES, WHETHER DOMICILED IN THIS
STATE OR NOT, THAT IS A "SMALL MANUFACTURER", THE AMOUNT SHALL BE ZERO.
A SMALL MANUFACTURER IS A TAXPAYER, THAT AT ANY TIME IN THE TAXPAYER'S
S. 1891 8
TAXABLE YEAR EMPLOYS NO MORE THAN FIFTY PERSONS, OR THE TAXPAYER'S
ENTIRE NET INCOME BASE IS LESS THAN TWO MILLION DOLLARS, AND THE TAXPAY-
ER MEETS THE DEFINITION OF "MANUFACTURER" IN SUBPARAGRAPH (VIII) OF THIS
PARAGRAPH.
S 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210
of the tax law, as amended by section 1 of part GG-1 of chapter 57 of
the laws of 2008, is amended to read as follows:
(1) The amount prescribed by this paragraph for taxable years begin-
ning before January first, two thousand eight shall be computed at .178
percent for each dollar of the taxpayer's total business and investment
capital, or the portion thereof allocated within the state as hereinaft-
er provided. For taxable years beginning on or after January first, two
thousand eight, the amount prescribed by this paragraph shall be
computed at .15 percent for each dollar of the taxpayer's total business
and investment capital, or the portion thereof allocated within the
state as hereinafter provided. However, in the case of a cooperative
housing corporation as defined in the internal revenue code, the appli-
cable rate shall be .04 percent. IF A TAXPAYER EMPLOYS NO MORE THAN
FIFTY EMPLOYEES AND HAS ENTIRE NET INCOME BASE LESS THAN TWO MILLION
DOLLARS THEN THE AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE ZERO
DOLLARS. In no event shall the amount prescribed by this paragraph
exceed three hundred fifty thousand dollars for qualified New York
manufacturers and for all other taxpayers ten million dollars for taxa-
ble years beginning on or after January first, two thousand eight but
before January first, two thousand eleven and one million dollars for
taxable years beginning on or after January first, two thousand eleven.
S 3. Subparagraph (ii) of paragraph (c) of subdivision 1 of section
210 of the tax law, as amended by section 5 of part N of chapter 60 of
the laws of 2007, is amended to read as follows:
(ii) For taxable years beginning in nineteen hundred ninety, nineteen
hundred ninety-one, nineteen hundred ninety-two, nineteen hundred nine-
ty-three and nineteen hundred ninety-four the amount prescribed by this
paragraph shall be computed at the rate of five percent of the taxpay-
er's minimum taxable income base. For taxable years beginning after
nineteen hundred ninety-four and before July first, nineteen hundred
ninety-eight, the amount prescribed by this paragraph shall be computed
at the rate of three and one-half percent of the taxpayer's minimum
taxable income base. For taxable years beginning after June thirtieth,
nineteen hundred ninety-eight and before July first, nineteen hundred
ninety-nine, the amount prescribed by this paragraph shall be computed
at the rate of three and one-quarter percent of the taxpayer's minimum
taxable income base. For taxable years beginning after June thirtieth,
nineteen hundred ninety-nine and before July first, two thousand, the
amount prescribed by this paragraph shall be computed at the rate of
three percent of the taxpayer's minimum taxable income base. For taxa-
ble years beginning after June thirtieth, two thousand, the amount
prescribed by this paragraph shall be computed at the rate of two and
one-half percent of the taxpayer's minimum taxable income base. For
taxable years beginning on or after January first, two thousand seven,
amount prescribed by this paragraph shall be computed at the rate of one
and one-half percent of the taxpayer's minimum taxable income base. The
"taxpayer's minimum taxable income base" shall mean the portion of the
taxpayer's minimum taxable income allocated within the state as herein-
after provided, subject to any modifications required by paragraphs (d)
and (e) of subdivision three of this section. HOWEVER, IF A TAXPAYER
EMPLOYS NO MORE THAN FIFTY EMPLOYEES AND HAS ENTIRE NET INCOME BASE LESS
S. 1891 9
THAN TWO MILLION DOLLARS THE AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL
BE COMPUTED AT THE RATE OF ZERO.
S 4. Clause (F) of subparagraph 1 of paragraph (d) of subdivision 1 of
section 210 of the tax law, as amended by section 12 of part A of chap-
ter 56 of the laws of 1998, is amended and a new clause (G) is added to
read as follows:
(F) a gross payroll of one thousand dollars or less, with total
receipts within and without this state of one thousand dollars or less,
and the average value of the assets of which are one thousand dollars or
less, eight hundred dollars[.];
(G) A TAXPAYER WHICH EMPLOYS NO MORE THAN FIFTY EMPLOYEES AND HAS
ENTIRE NET INCOME BASE LESS THAN TWO MILLION DOLLARS, REGARDLESS OF
GROSS PAYROLL, ZERO DOLLARS.
S 5. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2011.
PART D
Section 1. Legislative findings. The legislature hereby finds and
declares that the current regulatory environment in New York state has a
significant impact on the state's businesses, economy and global econom-
ic competitiveness. In order to provide New York businesses the opportu-
nity for growth and the ability to compete, along with providing the
citizens of this state the ability to find gainful employment and the
benefits of a strong economy, New York state must provide a regulatory
environment that reduces the cost of doing business in the state,
promotes business growth and encourages job creation.
The legislature further finds that it is in the interest of the state
to undertake at this time a rational, independent review of all regu-
lations that impact the business environment of this state which stifles
the potential of New York's workers and businesses. In order to under-
take such review rationally and equitably, the legislature determines
that it is necessary to establish a commission separate and apart from
existing bodies responsible for promulgating rules and regulations which
affect the business environment, to review all existing rules and regu-
lations and to provide continued oversight on future proposed rules and
regulations in an effort to cut waste, reduce paperwork and create an
efficient and cost effective environment for doing business in New York.
S 2. Commission established. (a) There is hereby created in the execu-
tive department a commission to be known as the "Commission on Regulato-
ry Reform and Economic Competitiveness," hereafter referred to as the
"commission," which shall be charged with examining all current rules
and regulations affecting the business community in New York state and
recommending changes to that system in light of factors submitted pursu-
ant to section five of this act and additional factors established by
the commission. It shall be further charged to review the economic
impact and cost of any new proposed rules or regulations and make recom-
mendations pursuant to section nine of this act.
(b) The commission shall consist of seventeen members. The seventeen
members shall be appointed as follows: (i) two members shall be
appointed by the temporary president of the senate; (ii) two members
shall be appointed by the speaker of the assembly; (iii) one member
shall be appointed by the minority leader of the senate; (iv) one member
shall be appointed by the minority leader of the assembly; and (v) elev-
en members shall be appointed by the governor to consist of the follow-
ing: (1) two members of the business community; (2) one member of the
S. 1891 10
small business community; (3) two members from the labor community; (4)
one member from the agricultural community; (5) one member of the local
government community; and (6) four at large members. The governor shall
designate the chair from among the members of the commission.
(c) The members of the commission shall receive no compensation for
their services as members, but shall be allowed their actual and neces-
sary expenses incurred in the performance of their duties. Members of
the commission shall be considered public officers for purposes of
section 17 of the public officers law.
(d) The commission shall begin to act forty-five days after this act
shall have become a law. A quorum shall consist of a majority of the
members of the commission entitled to vote on the matter under consider-
ation. Approval of any matter shall require the affirmative vote of a
majority of the members voting thereon.
(e) The commission shall adopt by-laws for the management and regu-
lation of its affairs.
S 3. Appointments to commission. The legislative leaders shall submit
their appointments to the governor, and the governor shall make his or
her appointments, no later than forty-five days after this act becomes a
law. If any such appointment is not made by such date, the appointing
officer may make the appointment after that date, but the vacant
appointment shall not count for calculation of a quorum until it is
filled. Vacancies in the commission shall be filled in the same manner
as the member whose vacancy is being filled was appointed.
S 4. Commission staff. The commission, acting by the chair of the
commission, may employ staff and consultants, who shall be paid from
amounts available to the commission for that purpose.
S 5. Factors and information for consideration. The commissioner of
each agency or department which promulgates rules and regulations shall
submit to the commission, no later than one hundred eighty days after
this act becomes a law, a list of factors to be considered in its delib-
erations, which shall include:
(a) the need for each rule or regulation currently in force;
(b) a list of rules and regulations which may be rescinded;
(c) the economic impact of the rules and regulations on the business
environment and job market of the state;
(d) a list of the rules and regulations which generate funds for the
state and the amount of funds generated by that rule or regulation;
(e) a list of rules or regulations which may be amended that will
result in reduced paperwork and create efficiencies in the agency or
department;
(f) a summary of how the department or agency's rules and regulations
compare to other states and other nations; and
(g) a summary of the agency or department's plans to create efficien-
cies, reduce paperwork and promote the business environment in the
state.
The agency or department may submit additional relevant factors to be
considered in the deliberations of the commission. The commission may
also adopt additional factors to be considered in its deliberations.
S 6. Deliberations of commission. The deliberations, meetings and
other proceedings of the commission and any committee thereof shall be
governed by article 7 of the public officers law, provided that,
notwithstanding section 105 of the public officers law, the commission
and any committee thereof shall conduct business in executive session
anytime it is addressing in detail the medical, financial, or credit
history of a particular general hospital or nursing home. Any one or
S. 1891 11
more members of a committee may participate in a meeting of such commit-
tee by means of a conference telephone, conference video or similar
communications equipment allowing all persons participating in the meet-
ing to hear each other at the same time. Participation by such means
shall constitute presence in person at a meeting. At any meetings of the
commission conducted by means of a conference telephone, conference
video or similar communications equipment, other than executive
sessions, the public shall be given an opportunity to listen. If a meet-
ing other than an executive session is to be conducted by means of a
conference telephone, conference video or similar communications equip-
ment, the public notice for the meeting shall inform the public that
such equipment will be used, and identify the means by which the public
may listen to such meeting.
S 7. Commission recommendations. (a) The commission shall develop
recommendations to (i) eliminate wasteful regulations which increase
business costs, stunt business growth and discourage job creation with
no clear or significant benefit to the state; and (ii) reduce paperwork,
create efficiencies, and increase the competitiveness of the state's
business environment.
(b) Such recommendations shall include: (i) recommended dates by which
such actions should occur; (ii) necessary investments, if any, that
should be made in each case to carry out the commission's recommenda-
tions, including any necessary workforce, training, or other invest-
ments; and (iii) the commission's justification for its recommendations,
including the use of the factors pursuant to section five of this act.
(c) In addition, the commission may include in its report: (i) recom-
mended areas of further improvement in agencies or departments outside
their rules and regulations; (ii) recommendations for the elimination of
duplicative oversight or functions shared by more than one agency or
department; (iii) recommendations on the consolidation of agencies or
departments which may have concurrent areas of jurisdiction.
(d) On or before December 1, 2012, the commission shall transmit to
the governor and the legislature a report containing its recommenda-
tions, which shall include specific recommendations regarding the elimi-
nation of rules and regulations, elimination of overlapping oversight
and functions, proposed rules or regulations, proposed initiatives to
reduce paperwork and create efficiencies and other proposals to decrease
the cost of doing business in the state.
S 8. Implementation of recommendations. (a) Notwithstanding any
contrary provision of law, rule or regulation, the commissioner or head
of any rule or regulation making agency or department shall take all
actions necessary to implement, in a reasonable, cost-efficient manner,
the recommendations of the commission pursuant to subdivisions (b) and
(c) of section seven of this act, including, but not limited to coordi-
nating with state or local government officials and other parties as the
commissioner deems appropriate.
(b) The provisions of subdivision (a) of this section shall not apply:
(i) unless the governor has transmitted the commission's report under
section seven of this act with his or her written approval of the recom-
mendations of the commission pursuant to subdivisions (b) and (c) of
section seven of this act to the head of each agency or department
affected by these recommendations and transmitted a message to the
legislature stating his or her approval of the report on or before
December 5, 2012; and (ii) if a majority of the members of each house of
the legislature vote to adopt a concurrent resolution rejecting the
recommendations of the commission pursuant to subdivisions (b) and (c)
S. 1891 12
of section seven of this act in their entirety by December 31, 2012,
after receiving a message from the governor under this subdivision.
S 9. Continuing responsibility to review proposed rules and regu-
lations. After submission of the commission's report to the governor
and the legislature, the commission shall be responsible for the contin-
ued review of any agency or department's proposed rules or regulations
which may impact the business environment of this state.
(a) The commission shall within thirty days of the receipt of the
proposed rule or regulation and the accompanied report outlined in
section ten of this act, vote on whether such rule or regulation shall
be implemented;
(b) no rule shall be approved unless a vote of a majority of the
commission's members present shall so vote;
(c) upon a vote disapproving a rule or regulation the commission shall
give notice to the agency or department that such rule or regulation has
been disapproved, the reason for its disapproval and any recommendations
the commission shall deem appropriate to improve the proposed rule or
regulation;
(d) if the commission shall fail to act upon any proposed rule or
regulation within the thirty day period, that rule or regulation shall
have been deemed to have been approved and may be implemented; and
(e) any rule or regulation that has been disapproved by the commission
may be appealed provided that (i) the department or agency appeals with-
in thirty days of the disapproval; (ii) the agency or department details
why the disapproval may be detrimental to the health, safety or welfare
of the state or its residents; and (iii) if applicable explain why the
commission's recommended improvements are not able to be enacted.
S 10. Department and agency's responsibility to submit proposed rules
and regulations. Notwithstanding any contrary provision of law, rule or
regulation any agency or department proposing a new rule or regulation
may not implement that rule or regulation without the approval of the
commission. The department or agency when seeking to gain the approval
of a new rule or regulation must:
(a) provide the commission with a copy of the new rule or regulation;
(b) provide a summary of the rule or regulation and the reasoning for
implementing it; and
(c) provide an economic impact statement of the proposed rule or regu-
lation to include but not be limited to (i) cost or benefit to the
state; (ii) business sector or industry affected by the rule or regu-
lation; (iii) number of jobs affected by the rule or regulation; and
(iv) any other information which will assist the commission in under-
standing the economic impact of the rule or regulation.
S 11. Moratorium on rate of tax. Notwithstanding any other law to the
contrary, there is hereby imposed a moratorium on any increase in the
rate of any tax or fee imposed by any agency, public benefit corporation
or authority that is paid directly by any business.
S 12. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S. 1891 13
S 13. This act shall take effect immediately and shall expire June 30,
2015 when upon such date the provisions of this act shall be deemed
repealed.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which the judg-
ment shall have been rendered. It is hereby declared to be the intent
of the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through D of this act shall be
as specifically set forth in the last section of such Parts.
