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

                                  7650

                            I N  S E N A T E

                              June 11, 2012
                               ___________

Introduced  by  Sen.  SKELOS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law, in relation to establishing a  small  busi-
  ness tax credit

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

  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

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

                                                           LBD14994-06-2

S. 7650                             2

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
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. 7650                             3

  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. This act shall take effect immediately;  provided  that  sections
one  and  seven of this act shall apply to taxable years beginning on or
after January 1, 2013.