NY State Senate Bill 2011-S6754

Senate Bill S6754

2011-2012 Legislative Session

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 16, 2012	referred to investigations and government operations

2011-S6754 (ACTIVE) - Details

See Assembly Version of this Bill:: A10138
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S37, A4199
2015-2016: S1114, A6982
2017-2018: S319, A2190
2019-2020: S845, A7008
2021-2022: S604

2011-S6754 (ACTIVE) - Summary

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.

2011-S6754 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6754

TITLE OF BILL:
An act
to amend the tax law, in relation to establishing business franchise and
personal income tax credits for certain businesses which contract with
the state or political subdivisions thereof and in unrelated contracts,
also with minority and women-owned business enterprises

PURPOSE:
Establishes business franchise and personal income tax credits for a
portion of the consideration paid under a contract with a minority or
women-owned business.

SUMMARY OF PROVISIONS:
Section 1 amends section 210 the tax law by adding a new subdivision
45 creating a business franchise tax credit for businesses that
contract with both the state and, in a separate and unrelated
transaction, with a women or minority owned business.

Sections 2 and 3 establish a personal income tax credit for tax payers
who contract with both the state and, in a separate and unrelated
transaction, with a Women or minority owned business.

Section 4 establishes the effective date.

JUSTIFICATION:
New York has been a longtime leader in the promotion of minority and
women owned business enterprises ("MWBEs"). The core goals of the
State's efforts are 1) equality of economic opportunities for MWBEs
and 2) elimination of barriers to their participation in state
contracts.
The problem is that the State has focused on the latter as the sole
means of achieving the former.
In order to help build fully self-sustaining minority and women owned
businesses, the State must also do its part to encourage private
entities to contract with MWBEs. This legislation would incentivize
the private sector to build long-term business relationships with
MWBEs by offering business franchise and personal income tax credits
for companies and individuals that contract with both MWBEs and the
State. State contracts are critical for initial growth, but
insufficient for long-term success. This legislation would help build
grow existing MWBEs while paving the way for the next generation.

LEGISLATIVE HISTORY:
This is a new bill.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which It shall have
become a law and shall apply to tax years commencing on or after such
date.

2011-S6754 (ACTIVE) - Bill Text download pdf

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

                                  6754

                            I N  S E N A T E

                             March 16, 2012
                               ___________

Introduced  by  Sen. PERALTA -- 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 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

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

                                                           LBD14861-01-2

S. 6754                             2

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 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.

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