LBD15938-03-2
S. 7448 2
PART A
Section 1. Section 606 of the tax law is amended by adding a new
subsection (uu) to read as follows:
(UU) SMALL BUSINESS TAX CREDIT. (1) GENERAL. A QUALIFIED TAXPAYER
SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL
TO SIX AND SIXTY-FIVE HUNDREDTHS PERCENT OF QUALIFIED BUSINESS INCOME.
(2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM:
(A) "QUALIFIED TAXPAYER" SHALL MEAN A SOLE PROPRIETOR WHO EMPLOYS ONE
OR MORE PERSONS AND WHO HAS NET BUSINESS INCOME OF LESS THAN TWO HUNDRED
FIFTY THOUSAND DOLLARS.
(B) "QUALIFIED BUSINESS INCOME" SHALL MEAN TEN PERCENT OF THE BUSINESS
INCOME OF THE TAXPAYER AS DEFINED IN THE LAWS OF THE UNITED STATES.
(3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL 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, NO INTEREST SHALL BE PAID THEREON.
S 2. Subparagraph (iv) of 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:
(iv) for taxable years beginning on or after January first, two thou-
sand seven AND ENDING BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, 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;
S 3. Paragraph (a) of subdivision 1 of section 210 of the tax law is
amended by adding a new subparagraph (vii) to read as follows:
(VII) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND THIRTEEN, IF THE ENTIRE NET INCOME BASE IS NOT MORE THAN TWO
HUNDRED NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FIVE AND TWO-TENTHS
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) FIFTEEN THOU-
SAND EIGHTY DOLLARS, (2) NINE AND SEVENTY-FIVE ONE-HUNDREDTHS PERCENT OF
THE EXCESS OF THE ENTIRE NET INCOME BASE OVER TWO HUNDRED NINETY THOU-
SAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND (3)
SEVEN AND ONE-TENTHS PERCENT OF THE EXCESS OF THE ENTIRE NET INCOME BASE
OVER THREE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS;
S 4. The opening paragraph of subparagraph 4 of paragraph (d) of
subdivision 1 of section 210 of the tax law, as added by section 2 of
part AA-1 of chapter 57 of the laws of 2008, is amended to read as
follows:
Notwithstanding subparagraphs one and two of this paragraph, for taxa-
ble years beginning on or after January first, two thousand eight AND
ENDING BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, the amount
S. 7448 3
prescribed by this paragraph for New York S corporations will be deter-
mined in accordance with the following table:
S 5. Subparagraph 5 of paragraph (d) of subdivision 1 of section 210
of the tax law is renumbered subparagraph 6.
S 6. Paragraph (d) of subdivision 1 of section 210 of the tax law is
amended by adding a new subparagraph 5 to read as follows:
(5) NOTWITHSTANDING SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH, FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND THIR-
TEEN, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH FOR NEW YORK S CORPO-
RATIONS WILL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000 $1
MORE THAN $100,000 BUT NOT OVER $250,000 $1
MORE THAN $250,000 BUT NOT OVER $500,000 $1
MORE THAN $500,000 BUT NOT OVER $1,000,000 $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,000
MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,000
OVER $25,000,000 $4,500
OTHERWISE THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED IN
ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000 $1
MORE THAN $100,000 BUT NOT OVER $250,000 $1
MORE THAN $250,000 BUT NOT OVER $500,000 $1
MORE THAN $500,000 BUT NOT OVER $1,000,000 $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,500
MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,500
OVER $25,000,000 $5,000
FOR PURPOSES OF THIS PARAGRAPH, NEW YORK RECEIPTS ARE THE RECEIPTS
COMPUTED IN ACCORDANCE WITH SUBPARAGRAPH TWO OF PARAGRAPH (A) OF SUBDI-
VISION THREE OF THIS SECTION FOR THE TAXABLE YEAR.
S 7. Subparagraph 6 of paragraph (d) of subdivision 1 of section 210
of the tax law, as added by section 3 of part C of chapter 56 of the
laws of 2011 and as renumbered by section five of this act, is amended
to read as follows:
(6) For taxable years beginning on or after January first, two thou-
sand twelve and before January first, two thousand fifteen, the amounts
prescribed in subparagraphs one and [four] FIVE of this paragraph as the
fixed dollar minimum tax for an eligible qualified New York manufacturer
shall be one-half of the amounts stated in those subparagraphs. For
purposes of this subparagraph, the term "eligible qualified New York
manufacturer" shall have the same meaning as in subparagraph (vi) of
paragraph (a) of this subdivision.
S 8. The tax law is amended by adding a new section 37 to read as
follows:
S 37. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER, WHICH
IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE
PRODUCT OF 6.85 PERCENT AND THE GROSS WAGES PAID 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
CONSECUTIVE YEARS OF CREDIT ELIGIBILITY. THE TAXPAYER MAY CLAIM THIS
CREDIT FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS OF
S. 7448 4
EMPLOYMENT. THE TAXPAYER MAY OFFSET QUARTERLY ESTIMATED TAX RETURNS
WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
(B) UNEMPLOYMENT ENHANCEMENT. IF A NEW EMPLOYEE WAS RECEIVING UNEM-
PLOYMENT INSURANCE BENEFITS AT THE TIME OF HIRE, AN ADDITIONAL THREE
THOUSAND DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF
EMPLOYMENT.
(C) HIRE-A-VET ENHANCEMENT. IF A NEW EMPLOYEE WAS RECEIVING UNEMPLOY-
MENT INSURANCE BENEFITS AT THE TIME OF HIRE AND IS ALSO A VETERAN, AN
ADDITIONAL FIVE THOUSAND DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST
FULL YEAR OF EMPLOYMENT.
(D) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED BY
THE TAXPAYER AFTER JULY FIRST, TWO THOUSAND TWELVE AND BEFORE APRIL
FIRST, TWO THOUSAND THIRTEEN, 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 ELEVEN.
(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 FOR THE PRIOR TAX YEARS.
(5) "VETERAN" SHALL MEAN A RESIDENT OF THIS STATE, WHO HAS SERVED ON
ACTIVE DUTY IN THE UNTIED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST
GUARD, AND/OR RESERVES THEREOF, AND/OR THE ARMY NATIONAL GUARD, AIR
NATIONAL GUARD, NEW YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA, AND
WHO IS CURRENTLY IN SERVICE, OR HAS BEEN RELEASED FROM SUCH SERVICE BY
HONORABLE DISCHARGE, OR WHO HAS BEEN FURLOUGHED TO THE RESERVE AND WHO
SERVED IN A WAR, ARMED CONFLICT AND/OR OTHER HOSTILITIES.
(E) 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
EMPLOYER RECEIVED THE CREDIT FOR THE DEPARTING EMPLOYEE.
(F) NO DOUBLE CREDIT. A TAXPAYER MAY NOT BE ALLOWED A CREDIT UNDER
BOTH SUBDIVISION (B) AND SUBDIVISION (C) OF THIS SECTION FOR THE SAME
EMPLOYEE.
(G) NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS ANY OTHER CREDIT UNDER THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASE IN EMPLOYMENT.
S 9. Section 210 of the tax law is amended by adding a new subdivision
45 to read as follows:
45. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN 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
S. 7448 5
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 10. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
(VV) HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT, TO
THE EXTENT ALLOWED UNDER SECTION THIRTY-SEVEN 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 11. 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) HIRE-NOW TAX CREDIT AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (VV) SUBDIVISION FORTY-FIVE OF SECTION
TWO HUNDRED TEN
S 12. This act shall take effect immediately; provided that section
one of this act shall apply to taxable years beginning on or after Janu-
ary 1, 2013.
PART B
Section 1. Subdivision 1 of section 209 of the tax law, as amended by
chapter 817 of the laws of 1987, is amended to read as follows:
1. For the privilege of exercising its corporate franchise, or of
doing business, or of employing capital, or of owning or leasing proper-
ty in this state in a corporate or organized capacity, or of maintaining
an office in this state, for all or any part of each of its fiscal or
calendar years, every domestic or foreign corporation, except corpo-
rations specified in subdivision four of this section, shall annually
pay a franchise tax, upon the basis of its entire net income base, or
upon such other basis as may be applicable as hereinafter provided, for
such fiscal or calendar year or part thereof, on a report which shall be
filed, except as hereinafter provided, on or before the fifteenth day of
March next succeeding the close of each such year, or, in the case of a
corporation which reports on the basis of a fiscal year, within two and
one-half months after the close of such fiscal year, and shall be paid
as hereinafter provided. PROVIDED HOWEVER, A MANUFACTURER AS DEFINED IN
SECTION TWO HUNDRED TEN OF THIS ARTICLE SHALL NOT BE SUBJECT TO TAX
UNDER THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND FIFTEEN; IF THE MANUFACTURER HAS ONE HUNDRED OR
FEWER EMPLOYEES AND LESS THAN ONE MILLION DOLLARS IN GROSS INCOME SUCH
MANUFACTURER SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN; IF THE
MANUFACTURER HAS FIFTY OR FEWER EMPLOYEES AND LESS THAN FIVE HUNDRED
THOUSAND DOLLARS IN GROSS INCOME SUCH MANUFACTURER SHALL NOT BE SUBJECT
TO TAX UNDER THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
ARY FIRST, TWO THOUSAND THIRTEEN.
S 2. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 39 to read as follows:
(39) IN THE CASE OF A TAXPAYER WHO IS A PROPRIETOR OF, A PARTNER IN,
AN S-CORPORATION SHAREHOLDER OF, A LIMITED LIABILITY COMPANY MEMBER OF
S. 7448 6
OR A LIMITED LIABILITY COMPANY MEMBER OF, A BUSINESS THAT IS A MANUFAC-
TURER, AS THE TERM IS DEFINED IN SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE, TO THE
EXTENT INCLUDED IN FEDERAL GROSS INCOME FOR THE TAXABLE YEAR, BUSINESS
INCOME OR SHARE OF BUSINESS INCOME FROM SUCH MANUFACTURING BUSINESS FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN,
PROVIDED HOWEVER IF SUCH BUSINESS THAT IS A MANUFACTURER HAS ONE HUNDRED
OR FEWER EMPLOYEES AND LESS THAN ONE MILLION DOLLARS IN BUSINESS INCOME,
THIS PARAGRAPH SHALL BE APPLICABLE FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, FURTHER PROVIDED HOWEVER IF
SUCH BUSINESS THAT IS A MANUFACTURER HAS FIFTY OR FEWER EMPLOYEES AND
LESS THAN FIVE HUNDRED THOUSAND DOLLARS IN BUSINESS INCOME THIS PARA-
GRAPH SHALL BE APPLICABLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
ARY FIRST, TWO THOUSAND THIRTEEN.
S 3. This act shall take effect immediately.
PART C
Section 1. Paragraph (a) of subdivision 6 of section 18-a of the
public service law, as added by section 4 of part NN of chapter 59 of
the laws of 2009, is amended to read as follows:
(a) Notwithstanding any provision of law to the contrary, and subject
to the exceptions provided for in paragraph (b) of this subdivision, for
the state fiscal year beginning on April first, two thousand nine and
[four] THREE state fiscal years thereafter, a temporary annual assess-
ment (hereinafter "temporary state energy and utility service conserva-
tion assessment") is hereby imposed on public utility companies (includ-
ing for the purposes of this subdivision municipalities other than
municipalities as defined in section eighty-nine-l of this chapter),
corporations (including for purposes of this subdivision the Long Island
power authority), and persons subject to the commission's regulation
(hereinafter such public utility companies, corporations, and persons
are referred to collectively as the "utility entities") to encourage the
conservation of energy and other resources provided through utility
entities, to be assessed in the manner provided in this subdivision;
provided, however, that such assessment shall not be imposed upon tele-
phone corporations as defined in subdivision seventeen of section two of
this article.
S 2. Section 6 of part NN of chapter 59 of the laws of 2009, amending
the public service law relating to financing operations of the depart-
ment of public service is amended to read as follows:
S 6. This act shall take effect immediately; provided, however, that
subdivision 6 of section 18-a of the public service law, as added by
section four of this act shall take effect April 1, 2009 and shall
expire and be deemed repealed March 31, [2014] 2013; and provided,
further, that if section four of this act shall become law after April
1, 2009, it shall take effect immediately and shall be deemed to have
been in full force and effect on and after April 1, 2009.
S 3. Paragraph (g) of subdivision 2 of section 18-a of the public
service law, as amended by section 2 of part NN of chapter 59 of the
laws of 2009, is amended to read as follows:
(g) The total amount which may be charged to any public utility compa-
ny under authority of this subdivision for any state fiscal year shall
not exceed ONE-THIRD OF one per centum of such public utility company's
gross operating revenues derived from intrastate utility operations in
the last preceding calendar year, or other twelve month period as deter-
S. 7448 7
mined by the chairman; provided, however, that no corporation or person
that is subject to the jurisdiction of the commission only with respect
to safety, or the power authority of the state of New York, shall be
subject to the general assessment provided for under this subdivision.
S 4. This act shall take effect immediately and shall be deemed to
have been in full force and effect on the same date and in the same
manner as part NN of chapter 59 of the laws of 2009 took effect;
provided that the amendment to paragraph (a) of subdivision 6 of section
18-a of the public service law made by section one of this act shall not
affect the expiration and repeal of such subdivision 6 and shall expire
and be deemed repealed therewith; and provided further that section
three of this act shall take effect April 1, 2013.
PART D
Section 1. The tax law is amended by adding two new sections 37 and 38
to read as follows:
S 37. BEER PRODUCTION CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX
UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A
CREDIT AGAINST SUCH TAX PURSUANT TO THE PROVISIONS REFERENCED IN SUBDI-
VISION (B) OF THIS SECTION. THE CREDIT (OR PRO RATA SHARE OF EARNED
CREDIT IN THE CASE OF A PARTNERSHIP) FOR EACH GALLON OF BEER PRODUCED IN
NEW YORK STATE BY A LICENSED BREWERY OR A LICENSED TENANT BREWER ON OR
AFTER APRIL FIRST, TWO THOUSAND TWELVE SHALL BE EQUAL TO FOURTEEN CENTS
MULTIPLIED BY THE NUMBER OF GALLONS PRODUCED NOT TO EXCEED SIX MILLION
TWO HUNDRED THOUSAND GALLONS. IF THE TAXPAYER IS A PARTNER IN A PARTNER-
SHIP OR SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP IMPOSED BY
THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED SIX MILLION TWO HUNDRED
THOUSAND GALLONS TIMES FOURTEEN CENTS.
(B) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE 9-A: SECTION 210, SUBDIVISION 45.
(2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (UU).
S 38. BEER LABEL CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX UNDER
ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A CREDIT
AGAINST SUCH TAX PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION
(B) OF THIS SECTION. THE CREDIT (OR PRO RATA SHARE OF EARNED CREDIT IN
THE CASE OF A PARTNERSHIP) SHALL EQUAL ONE HUNDRED FIFTY DOLLARS FOR
EACH BRAND OR TRADE NAME LABEL REGISTERED WITH THE STATE LIQUOR AUTHORI-
TY FOR BEER THAT IS BREWED IN NEW YORK STATE BY THE TAXPAYER IN BATCHES
TOTALING FIFTEEN HUNDRED BARRELS OR LESS DURING THE TAXABLE YEAR.
(B) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE 9-A: SECTION 210, SUBDIVISION 46.
(2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (VV).
S 2. Section 210 of the tax law is amended by adding two new subdivi-
sions 45 and 46 to read as follows:
45. BEER PRODUCTION CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO
BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER, AGAINST
THE TAX IMPOSED BY THIS ARTICLE. THE CREDIT ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR SHALL 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
S. 7448 8
SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR SHALL 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 SHALL BE PAID THEREON.
46. BEER LABEL CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
COMPUTED AS PROVIDED IN SECTION THIRTY-EIGHT OF THIS CHAPTER, AGAINST
THE TAX IMPOSED BY THIS ARTICLE. THE CREDIT ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR SHALL 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 SHALL 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 SHALL BE PAID THEREON.
S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding two new clauses (xxxiv) and (xxxv)
to read as follows:
(XXXIV) BEER PRODUCTION TAX CREDIT AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (UU) SUBDIVISION FORTY-FIVE OF SECTION
TWO HUNDRED TEN
(XXXV) BEER LABEL CREDIT UNDER AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (VV) SUBDIVISION FORTY-SIX OF
SECTION TWO HUNDRED TEN
S 4. Section 606 of the tax law is amended by adding two new
subsections (uu) and (vv) to read as follows:
(UU) BEER PRODUCTION CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO
BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER AGAINST
THE TAX IMPOSED BY THIS ARTICLE. IF THE AMOUNT OF THE CREDIT ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
TAX FOR SUCH YEAR, THE EXCESS SHALL 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 INTER-
EST SHALL BE PAID THEREON.
(VV) BEER LABEL CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO BE
COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER AGAINST THE
TAX IMPOSED BY THIS ARTICLE. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL 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
SHALL BE PAID THEREON.
S 5. This act shall take effect immediately.
PART E
Section 1. Section 7 of part P of chapter 60 of the laws of 2004,
amending the tax law relating to the empire state film production cred-
it, is REPEALED.
S. 7448 9
S 2. Section 24 of the tax law is amended by adding a new subdivision
(e) to read as follows:
(E) ALLOCATION OF CREDIT. (1) THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER THIS SECTION, SUBDIVISION THIRTY-SIX OF SECTION TWO
HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX HUNDRED SIX OF THIS CHAP-
TER IN ANY CALENDAR YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS IN TWO
THOUSAND FOUR AND TWO THOUSAND FIVE, SIXTY MILLION DOLLARS IN TWO THOU-
SAND SIX AND TWO THOUSAND SEVEN, SIXTY-FIVE MILLION DOLLARS IN TWO THOU-
SAND EIGHT, SEVENTY-FIVE MILLION DOLLARS IN TWO THOUSAND NINE,
EIGHTY-FIVE MILLION DOLLARS IN TWO THOUSAND TEN, NINETY MILLION DOLLARS
IN TWO THOUSAND ELEVEN AND TWO THOUSAND TWELVE, AND ONE HUNDRED TEN
MILLION DOLLARS IN TWO THOUSAND THIRTEEN. SUCH AGGREGATE AMOUNT OF CRED-
ITS SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND
TELEVISION DEVELOPMENT AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON
THE DATE OF FILING AN APPLICATION FOR ALLOCATION OF FILM PRODUCTION
CREDIT WITH SUCH OFFICE. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS
APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX
CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE
TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT
YEAR.
(2) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED PURSUANT TO THE
AUTHORITY OF SUBDIVISION (B) OF SECTION TWELVE HUNDRED ONE-A OF THIS
CHAPTER IN ANY CALENDAR YEAR SHALL BE TWELVE MILLION FIVE HUNDRED THOU-
SAND DOLLARS IN TWO THOUSAND FOUR AND TWO THOUSAND FIVE AND THIRTY
MILLION DOLLARS IN TWO THOUSAND SIX THROUGH TWO THOUSAND ELEVEN. SUCH
AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE MAYOR'S OFFICE OF
FILM, THEATER AND BROADCASTING AMONG TAXPAYERS IN ORDER OF PRIORITY
BASED UPON THE DATE OF FILING AN APPLICATION FOR ALLOCATION OF FILM
PRODUCTION CREDIT WITH SUCH OFFICE. IF THE TOTAL AMOUNT OF ALLOCATED
CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT
OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS
SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE
SUBSEQUENT YEAR.
(3) ADDITIONAL POOL 1 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITIONAL
THREE HUNDRED FIFTY MILLION DOLLARS IN TWO THOUSAND NINE. THIS ADDI-
TIONAL AMOUNT SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION
PICTURE AND TELEVISION DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH
SUBDIVISION (A) OF THIS SECTION.
(4) ADDITIONAL POOL 2 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITION FOUR
HUNDRED TWENTY MILLION DOLLARS IN TWO THOUSAND TEN, FOUR HUNDRED TWENTY
MILLION DOLLARS IN TWO THOUSAND ELEVEN, FOUR HUNDRED TWENTY MILLION
DOLLARS IN TWO THOUSAND TWELVE, FOUR HUNDRED TWENTY MILLION DOLLARS IN
TWO THOUSAND THIRTEEN AND FOUR HUNDRED TWENTY MILLION DOLLARS IN TWO
THOUSAND FOURTEEN PROVIDED HOWEVER, SEVEN MILLION DOLLARS OF THE ANNUAL
ALLOCATION SHALL BE AVAILABLE FOR THE EMPIRE STATE FILM POST PRODUCTION
CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS CHAPTER. THIS AMOUNT
SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELE-
VISION DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH SUBDIVISION (A) OF
THIS SECTION. IF THE DIRECTOR OF THE GOVERNOR'S OFFICE FOR MOTION
PICTURE AND TELEVISION DEVELOPMENT DETERMINES THAT THE AGGREGATE AMOUNT
OF TAX CREDITS AVAILABLE FROM ADDITIONAL POOL 2 FOR THE EMPIRE STATE
FILM PRODUCTION TAX CREDIT HAVE BEEN PREVIOUSLY ALLOCATED, AND DETER-
MINES THAT THE PENDING APPLICATIONS FROM ELIGIBLE APPLICANTS FOR THE
POST PRODUCTION TAX CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS CHAP-
S. 7448 10
TER IS INSUFFICIENT TO UTILIZE THE BALANCE OF UNALLOCATED POST
PRODUCTION TAX CREDITS FROM SUCH POOL, THE REMAINDER, AFTER SUCH PENDING
APPLICATIONS ARE CONSIDERED, SHALL BE MADE AVAILABLE FOR ALLOCATION IN
THE EMPIRE STATE FILM TAX CREDIT PURSUANT TO THIS SECTION, SUBDIVISION
THIRTY-SIX OF SECTION TWO HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX
HUNDRED SIX OF THIS CHAPTER. THE GOVERNOR'S OFFICE FOR MOTION PICTURE
AND TELEVISION DEVELOPMENT MUST NOTIFY TAXPAYERS OF THEIR ALLOCATION
YEAR AND INCLUDE THE ALLOCATION YEAR ON THE CERTIFICATE OF TAX CREDIT.
TAXPAYERS ELIGIBLE TO CLAIM A CREDIT MUST REPORT THE ALLOCATION YEAR
DIRECTLY ON THEIR EMPIRE STATE FILM PRODUCTION CREDIT TAX FORM FOR EACH
YEAR A CREDIT IS CLAIMED AND INCLUDE A COPY OF THE CERTIFICATE WITH
THEIR TAX RETURN. IN THE CASE OF A QUALIFIED FILM THAT RECEIVES FUNDS
FROM ADDITIONAL POOL 2, NO EMPIRE STATE FILM PRODUCTION CREDIT SHALL BE
CLAIMED BEFORE THE LATER OF THE TAXABLE YEAR THE PRODUCTION OF THE QUAL-
IFIED FILM IS COMPLETE, OR THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE
ALLOCATION YEAR FOR WHICH THE FILM HAS BEEN ALLOCATED CREDIT BY THE
GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT.
S 3. Paragraph 2 of subdivision (a) and subdivision (c) of section 31
of the tax law, as added by section 12 of part Q of chapter 57 of the
laws of 2010, are amended to read as follows:
(2) The amount of the credit shall be the product (or pro rata share
of the product, in the case of a member of a partnership) of [ten] THIR-
TY percent and the qualified post production costs paid in the
production of a qualified film at a qualified post production facility.
(c) Notwithstanding any other provision of law to the contrary, the
aggregate amount of tax credits available under this section shall not
exceed the amounts allowed pursuant to PARAGRAPH FOUR OF subdivision (e)
of section [seven of part P of chapter sixty of the laws of two thousand
four] TWENTY-FOUR OF THIS ARTICLE and shall be allocated in the same
manner as provided for in PARAGRAPH ONE OF subdivision [(a)] (E) of
section [seven of part P of chapter sixty of the laws of two thousand
four] TWENTY-FOUR OF THIS ARTICLE.
S 4. This act shall take effect immediately.
PART F
Section 1. The general municipal law is amended by adding a new
section 959-c to read as follows:
S 959-C. CERTIFIED STARTUP BUSINESS ENTERPRISE. (A) CERTIFICATION. (I)
THE COMMISSIONER SHALL APPROVE APPLICATIONS FOR QUALIFICATION OF A BUSI-
NESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE. AS A CONDI-
TION FOR APPROVAL OF SUCH APPLICATION, THE COMMISSIONER IS AUTHORIZED TO
SPECIFY CERTAIN REQUIREMENTS TO BE SATISFIED AS A CONDITION FOR APPROVAL
OF A BUSINESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE AS
THE COMMISSIONER DEEMS NECESSARY TO ENSURE THE QUALIFYING ANGEL INVEST-
MENT WILL MAKE A SUBSTANTIAL CONTRIBUTION TO THE ECONOMIC DEVELOPMENT OF
THIS STATE, INCLUDING THE USE OF A SYSTEM OF EVALUATION OF VARIOUS
APPLICANT BUSINESS ENTERPRISES IN A COMPETITIVE FASHION.
(II) WITH RESPECT TO AN APPROVED APPLICATION FOR QUALIFICATION OF A
BUSINESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE, THE
COMMISSIONER SHALL ISSUE TO SUCH BUSINESS ENTERPRISE A CERTIFICATE OF
QUALIFICATION AS A CERTIFIED STARTUP BUSINESS ENTERPRISE SETTING FORTH
THE EFFECTIVE DATE OF THE CERTIFICATION AND THE AMOUNT OF QUALIFYING
ANGEL INVESTMENT AWARDED TO SUCH BUSINESS ENTERPRISE, WHICH AMOUNT SHALL
BE NO LESS THAN ONE HUNDRED THOUSAND DOLLARS AND NO MORE THAN ONE
MILLION DOLLARS.
S. 7448 11
(III) FOR THE PERIOD JULY FIRST, TWO THOUSAND TWELVE THROUGH JUNE
THIRTIETH, TWO THOUSAND THIRTEEN, THE COMMISSIONER MAY CERTIFY UP TO
SEVEN MILLION DOLLARS IN QUALIFYING ANGEL INVESTMENT. FOR THE PERIOD
JULY FIRST, TWO THOUSAND THIRTEEN THROUGH JUNE THIRTIETH, TWO THOUSAND
FOURTEEN, THE COMMISSIONER MAY CERTIFY UP TO SEVEN MILLION DOLLARS IN
QUALIFYING ANGEL INVESTMENT. FOR THE PERIOD JULY FIRST, TWO THOUSAND
FOURTEEN THROUGH JUNE THIRTIETH, TWO THOUSAND FIFTEEN, THE COMMISSIONER
MAY CERTIFY UP TO SEVEN MILLION DOLLARS IN QUALIFYING ANGEL INVESTMENT.
(B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(I) "CERTIFIED STARTUP BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS
ENTERPRISE LOCATED IN NEW YORK STATE:
(1) WITH LESS THAN FIVE MILLION DOLLARS IN ANNUAL REVENUES;
(2) WHOSE PRIMARY ACTIVITY CONSISTS OF A QUALIFYING TECHNOLOGY OR
INNOVATION ACTIVITY; AND
(3) THAT HAS BEEN CERTIFIED AS A CERTIFIED STARTUP BUSINESS ENTERPRISE
BY THE COMMISSIONER.
(II) "QUALIFYING TECHNOLOGY OR INNOVATION ACTIVITY" SHALL MEAN:
(1) BIOTECHNOLOGIES, WHICH SHALL BE DEFINED AS TECHNOLOGIES INVOLVING
THE SCIENTIFIC MANIPULATION OF LIVING ORGANISMS, ESPECIALLY AT THE
MOLECULAR AND/OR THE SUB-MOLECULAR GENETIC LEVEL, TO PRODUCE PRODUCTS
CONDUCIVE TO IMPROVING THE LIVES AND HEALTH OF PLANTS, ANIMALS, AND
HUMANS; AND THE ASSOCIATED SCIENTIFIC RESEARCH, PHARMACOLOGICAL, MECHAN-
ICAL, AND COMPUTATIONAL APPLICATIONS AND SERVICES CONNECTED WITH THESE
IMPROVEMENTS;
(2) INFORMATION AND COMMUNICATION TECHNOLOGIES, EQUIPMENT AND SYSTEMS
THAT INVOLVE ADVANCED COMPUTER SOFTWARE AND HARDWARE, VISUALIZATION
TECHNOLOGIES, AND HUMAN INTERFACE TECHNOLOGIES;
(3) ADVANCED MATERIALS AND PROCESSING TECHNOLOGIES THAT INVOLVE THE
DEVELOPMENT, MODIFICATION, OR IMPROVEMENT OF ONE OR MORE MATERIALS OR
METHODS TO PRODUCE DEVICES AND STRUCTURES WITH IMPROVED PERFORMANCE
CHARACTERISTICS OR SPECIAL FUNCTIONAL ATTRIBUTES, OR TO ACTIVATE, SPEED
UP, OR OTHERWISE ALTER CHEMICAL, BIOCHEMICAL, OR MEDICAL PROCESSES;
(4) ELECTRONIC AND PHOTONIC DEVICES AND COMPONENTS FOR USE IN PRODUC-
ING ELECTRONIC, OPTOELECTRONIC, MECHANICAL EQUIPMENT AND PRODUCTS OF
ELECTRONIC DISTRIBUTION WITH INTERACTIVE MEDIA CONTENT;
(5) ENERGY EFFICIENCY, RENEWABLE ENERGY AND ENVIRONMENTAL TECHNOLO-
GIES, PRODUCTS, DEVICES AND SERVICES; OR
(6) SMALL SCALE SYSTEMS INTEGRATION AND PACKAGING.
(III) "QUALIFYING ANGEL INVESTMENT" SHALL MEAN A CONTRIBUTION TO THE
CAPITAL OF A CERTIFIED STARTUP BUSINESS ENTERPRISE, PROVIDED THAT SUCH
CONTRIBUTION TO CAPITAL IS MADE WITHIN TWELVE MONTHS AFTER THE EFFECTIVE
DATE OF THE CERTIFIED TECHNOLOGY VENTURE'S CERTIFICATE OF QUALIFICATION
AS A CERTIFIED TECHNOLOGY VENTURE AND SUCH CONTRIBUTION IS APPLIED BY
THE CERTIFIED STARTUP BUSINESS ENTERPRISE AGAINST ITS ALLOCATION OF
QUALIFYING ANGEL INVESTMENT. TOGETHER WITH ALL OTHER QUALIFYING ANGEL
INVESTMENTS MADE TO A SINGLE CERTIFIED STARTUP BUSINESS ENTERPRISE, THE
TOTAL QUALIFYING ANGEL INVESTMENT MAY NOT EXCEED ONE MILLION DOLLARS.
NOTHING HEREIN SHALL PROHIBIT A PERSON MAKING A QUALIFYING ANGEL INVEST-
MENT FROM MAKING ADDITIONAL CONTRIBUTIONS TO THE CAPITAL OF THE CERTI-
FIED STARTUP BUSINESS ENTERPRISE OR MAKING LOANS TO OR OTHER INVESTMENTS
IN THE CERTIFIED STARTUP BUSINESS ENTERPRISE, PROVIDED, HOWEVER, THAT
SUCH OTHER CONTRIBUTIONS, LOANS AND INVESTMENTS SHALL NOT BE TREATED AS
QUALIFYING ANGEL INVESTMENTS.
S 2. Section 210 of the tax law is amended by adding a new subdivision
12-H to read as follows:
S. 7448 12
12-H. ANGEL TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III) OF SUBDIVISION (B) OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO THIRTY-FIVE
PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL 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 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT-
Y-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION
(C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING,
NO INTEREST SHALL BE PAID THEREON.
S 3. Section 606 of the tax law is amended by adding a new subdivision
(uu) to read as follows:
(UU) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III) OF SUBDIVISION (B) OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
GENERAL MUNICIPAL LAW, OR THAT IS A MEMBER OF A PARTNERSHIP THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, SHALL BE ALLOWED A CREDIT EQUAL TO
THIRTY-FIVE PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT
OR, IN THE CASE OF A TAXPAYER WHO IS A MEMBER OF A PARTNERSHIP THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, A PORTION OF SUCH QUALIFYING ANGEL
INVESTMENT EQUAL TO THE PORTION OF ITEMS OF INCOME, GAIN, LOSS AND
DEDUCTION ASSOCIATED WITH THE QUALIFYING ANGEL INVESTMENT PROPERLY ALLO-
CABLE TO SUCH TAXPAYER UNDER SECTION 704 OF THE INTERNAL REVENUE CODE
FOR THE TAXABLE YEAR.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL 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
SHALL BE PAID THEREON.
S 4. Section 1456 of the tax law is amended by adding a new subdivi-
sion (z) to read as follows:
(Z) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III) OF SUBDIVISION (B) OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO THIRTY-FIVE
PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
(2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY SUBSECTION (B) OF SECTION FOURTEEN HUNDRED
FIFTY-FIVE OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT-
Y-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION
(C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING,
NO INTEREST SHALL BE PAID THEREON.
S 5. Section 1511 of the tax law is amended by adding a new subdivi-
sion (cc) to read as follows:
S. 7448 13
(CC) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III) OF SUBDIVISION (B) OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO THIRTY-FIVE
PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
(2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF
SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE OR BY SECTION FIFTEEN
HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF THE
AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT THUS NOT
DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF
TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE
PROVISIONS OF SUBSECTION (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS
CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 6. This act shall take effect immediately.
S 3. 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 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 4. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through F of this act shall be
as specifically set forth in the last section of such Parts.