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

                                  5591

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 23, 2011
                               ___________

Introduced by M. of A. BRENNAN, CASTRO, BARRON, STEVENSON -- Multi-Spon-
  sored  by -- M. of A.  BOYLAND, CLARK, DenDEKKER, DINOWITZ, GOTTFRIED,
  LIFTON -- read once and referred to the Committee on Ways and Means

AN ACT to amend the tax law,  in  relation  to  establishing  a  cap  on
  certain  tax  credits, to impose a surcharge against certain taxes and
  to increase the alternative minimum tax on corporations; and providing
  for the repeal of certain provisions upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  tax  law is amended by adding a new section 210-a to
read as follows:
  S 210-A. CAP ON CERTAIN CREDITS. 1. FOR PURPOSES OF THIS SECTION,  THE
TERM  "COVERED CREDITS" SHALL MEAN AND INCLUDE THE FOLLOWING: THE ALTER-
NATIVE FUELS CREDIT SET FORTH IN SUBDIVISION TWENTY-FOUR OF SECTION  TWO
HUNDRED TEN OF THIS ARTICLE, THE AUTOMATED EXTERNAL DEFIBRILLATOR CREDIT
SET  FORTH IN SUBDIVISION TWENTY-FIVE OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE, THE BIOFUEL PRODUCTION CREDIT SET FORTH IN SECTION TWENTY-EIGHT
OF THIS CHAPTER AND SUBDIVISION THIRTY-EIGHT OF SECTION TWO HUNDRED  TEN
OF  THIS  ARTICLE,  THE BROWNFIELD REDEVELOPMENT TAX CREDIT SET FORTH IN
SECTION TWENTY-ONE OF  THIS  CHAPTER  AND  SUBDIVISION  THIRTY-THREE  OF
SECTION  TWO  HUNDRED TEN OF THIS ARTICLE, THE TAX CREDIT FOR REMEDIATED
BROWNFIELDS SET FORTH IN SECTION TWENTY-TWO OF THIS CHAPTER AND SUBDIVI-
SION THIRTY-FOUR OF SECTION TWO HUNDRED TEN OF THIS ARTICLE,  THE  ENVI-
RONMENTAL REMEDIATION INSURANCE CREDIT SET FORTH IN SECTION TWENTY-THREE
OF  THIS  CHAPTER AND SUBDIVISION THIRTY-FIVE OF SECTION TWO HUNDRED TEN
OF THIS ARTICLE, THE CLEAN HEATING FUEL CREDIT SET FORTH IN  SUBDIVISION
THIRTY-NINE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE, THE CONSERVATION
EASEMENT  CREDIT  SET  FORTH  IN SUBDIVISION THIRTY-EIGHT OF SECTION TWO
HUNDRED TEN OF THIS ARTICLE, THE CREDIT FOR EMPLOYMENT OF  PERSONS  WITH
DISABILITIES  SET  FORTH  IN  SUBDIVISION  TWENTY-THREE  OF  SECTION TWO
HUNDRED TEN OF THIS ARTICLE,  THE  EMPIRE  STATE  COMMERCIAL  PRODUCTION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08073-01-1
              

A. 5591                             2

CREDIT,  SET  FORTH IN SECTION TWENTY-EIGHT OF THIS CHAPTER AND SUBDIVI-
SION THIRTY-EIGHT OF SECTION TWO HUNDRED TEN OF THIS ARTICLE, THE EMPIRE
STATE FILM PRODUCTION CREDIT SET FORTH IN SECTION  TWENTY-FOUR  OF  THIS
CHAPTER  AND  SUBDIVISION  THIRTY-SIX OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE, THE EMPIRE ZONE CAPITAL TAX CREDIT  SET  FORTH  IN  SUBDIVISION
TWENTY  OF  SECTION  TWO  HUNDRED  TEN  OF THIS ARTICLE, THE EMPIRE ZONE
INVESTMENT TAX CREDIT SET FORTH IN SUBDIVISION TWELVE-B OF  SECTION  TWO
HUNDRED TEN OF THIS ARTICLE, THE EMPIRE ZONE EMPLOYMENT INCENTIVE CREDIT
SET  FORTH  IN  SUBDIVISION  TWELVE-C OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE, THE INVESTMENT TAX CREDIT SET FORTH IN  SUBDIVISION  TWELVE  OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE, THE EMPIRE ZONE WAGE TAX CREDIT
SET  FORTH  IN  SUBDIVISION  NINETEEN OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE, THE GREEN BUILDING CREDIT SET FORTH IN SECTION NINETEEN OF THIS
CHAPTER AND SUBDIVISION THIRTY-ONE OF SECTION TWO HUNDRED  TEN  OF  THIS
ARTICLE, THE CREDIT FOR COMPANIES WHO PROVIDE TRANSPORTATION TO INDIVID-
UALS  WITH  DISABILITIES  SET  FORTH IN SUBDIVISION FORTY OF SECTION TWO
HUNDRED TEN OF THIS ARTICLE, THE LOW INCOME HOUSING CREDIT SET FORTH  IN
SECTION  EIGHTEEN  OF THIS CHAPTER AND SUBDIVISION THIRTY OF SECTION TWO
HUNDRED TEN OF THIS ARTICLE, THE CREDIT FOR THE SPECIAL ADDITIONAL MORT-
GAGE RECORDING TAX SET FORTH IN SUBDIVISION  SEVENTEEN  OF  SECTION  TWO
HUNDRED  TEN OF THIS ARTICLE, THE CREDIT FOR SERVICING CERTAIN MORTGAGES
SET FORTH IN SUBDIVISION TWENTY-ONE-A OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE, THE QUALIFIED EMERGING TECHNOLOGY COMPANY  CAPITAL  TAX  CREDIT
SET  FORTH  IN  SUBDIVISION  TWELVE-F OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE, THE QUALIFIED EMERGING TECHNOLOGY COMPANY EMPLOYMENT CREDIT SET
FORTH IN SUBDIVISION TWELVE-E OF SECTION TWO HUNDRED TEN OF  THIS  ARTI-
CLE,  THE  QUALIFIED  EMERGING TECHNOLOGY COMPANY FACILITIES, OPERATIONS
AND TRAINING CREDIT SET FORTH IN SUBDIVISION  TWELVE-G  OF  SECTION  TWO
HUNDRED TEN OF THIS ARTICLE, THE QEZE CREDIT FOR REAL PROPERTY TAXES SET
FORTH IN SECTION FIFTEEN OF THIS CHAPTER AND SUBDIVISION TWENTY-SEVEN OF
SECTION  TWO  HUNDRED TEN OF THIS ARTICLE, THE QEZE TAX REDUCTION CREDIT
SET  FORTH  IN  SECTION  SIXTEEN  OF  THIS   CHAPTER   AND   SUBDIVISION
TWENTY-EIGHT  OF SECTION TWO HUNDRED TEN OF THIS ARTICLE, THE CREDIT FOR
REHABILITATION OF HISTORIC PROPERTIES SET FORTH IN SUBDIVISION FORTY  OF
SECTION  TWO  HUNDRED  TEN OF THIS ARTICLE AND THE SECURITY TRAINING TAX
CREDIT SET FORTH IN SECTION TWENTY-SIX OF THIS CHAPTER  AND  SUBDIVISION
THIRTY-SEVEN OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.
  2.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, THE TOTAL ALLOWABLE
COVERED CREDITS THAT MAY BE CREDITED OR REFUNDED TO A  TAXPAYER  IN  ANY
TAX  YEAR  SHALL  BE  LIMITED TO A TOTAL OF FIFTEEN MILLION DOLLARS. ANY
AMOUNT OF CREDIT EXCEEDING FIFTEEN MILLION DOLLARS NOT CREDITED PURSUANT
TO THIS SECTION IN ANY TAX YEAR MAY BE CARRIED OVER TO THE FOLLOWING TAX
YEAR OR YEARS AND MAY BE CREDITED AGAINST SUCH TAXPAYER'S TAX  FOR  SUCH
YEAR OR YEARS.
  S  2.  The tax law is amended by adding a new section 210-b to read as
follows:
  S 210-B. SURCHARGE. 1. FOR PURPOSES OF  THIS  SECTION,  THE  FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  A.  "TAXES SUBJECT TO SURCHARGE" SHALL MEAN AND INCLUDE THE FOLLOWING:
THE CORPORATION TAX IMPOSED PURSUANT TO ARTICLE NINE  OF  THIS  CHAPTER,
THE  FRANCHISE  TAX ON BUSINESS CORPORATIONS IMPOSED PURSUANT TO ARTICLE
NINE-A OF THIS  CHAPTER,  THE  FRANCHISE  TAX  ON  BANKING  CORPORATIONS
IMPOSED PURSUANT TO ARTICLE THIRTY-TWO OF THIS CHAPTER AND THE FRANCHISE
TAX  ON  INSURANCE CORPORATIONS IMPOSED PURSUANT TO ARTICLE THIRTY-THREE
OF THIS CHAPTER; AND

A. 5591                             3

  B. "FINAL TAX LIABILITY" SHALL MEAN THE TAX LIABILITY  OF  A  TAXPAYER
AFTER  ALL  DEDUCTIONS  AND  CREDITS FOR WHICH SUCH TAXPAYER IS ELIGIBLE
HAVE BEEN TAKEN.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THERE IS HEREBY IMPOSED
A  SURCHARGE  AGAINST TAXES SUBJECT TO SURCHARGE FOR ANY TAXPAYER WHO IS
SUBJECT TO ONE  OR  MORE  OF  SUCH  TAXES  SUBJECT  TO  SURCHARGE.  SUCH
SURCHARGE  SHALL BE FIFTEEN PERCENT OF SUCH TAXPAYER'S FINAL TAX LIABIL-
ITY FOR THE TAX YEAR.
  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,
THE 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.
FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
ELEVEN, 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. The "taxpayer's minimum taxable income base" shall mean the
portion  of  the  taxpayer's minimum taxable income allocated within the
state as hereinafter provided, subject to any modifications required  by
paragraphs (d) and (e) of subdivision three of this section.
  S 4. This act shall take effect immediately and shall apply to taxable
years  beginning  on or after January 1, 2010, provided that section two
of this act shall expire and be deemed repealed January 1, 2015.