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

                                  3697

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 26, 2011
                               ___________

Introduced by M. of A. MORELLE, SCHIMMINGER, DESTITO, TOWNS -- read once
  and referred to the Committee on Ways and Means

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 43 to read as follows:
   43. 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
THIRTEEN.
  (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  (xxxii)  to  read  as
follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05491-01-1
              

A. 3697                             2

(XXXII) SBA GUARANTY FEE CREDIT      COSTS UNDER SUBDIVISION
UNDER SUBSECTION (SS)                FORTY-THREE OF SECTION
                                     TWO HUNDRED TEN

  S  3. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
  (SS) 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
THIRTEEN.
  (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.