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

                                  1953

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 13, 2015
                               ___________

Introduced  by  M.  of A. GUNTHER, SCHIMMINGER, LUPARDO, COLTON, CUSICK,
  ZEBROWSKI, PEOPLES-STOKES, JAFFEE, HOOPER, AUBRY, SCARBOROUGH,  PERRY,
  McLAUGHLIN,  BORELLI,  RAIA, TENNEY, LOPEZ -- Multi-Sponsored by -- M.
  of A. BROOK-KRASNY, COOK, DAVILA,  GOODELL,  HEASTIE,  MAGEE,  MARKEY,
  MOSLEY,  ORTIZ,  RIVERA, ROBINSON, TITONE -- read once and referred to
  the Committee on Ways and Means

AN ACT to amend the tax law, in relation to a  small  business  electric
  energy tax credit

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

  Section 1. Section 210-B of the tax law is amended  by  adding  a  new
subdivision 49 to read as follows:
  49.  SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (A) A TAXPAYER THAT IS
ELIGIBLE UNDER THE LIMITATIONS SPECIFIED IN PARAGRAPH (B) OF THIS SUBDI-
VISION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTI-
CLE.    THE  AMOUNT  OF  THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF TWO
CENTS PER KILOWATT HOUR FOR ALL BUSINESS RELATED  ELECTRICITY  USAGE  AT
THE TAXPAYER'S PRIMARY BUSINESS LOCATION.
  (B)  AN  ELIGIBLE  TAXPAYER  SHALL (I) HAVE NO MORE THAN NINETEEN FULL
TIME EQUIVALENT EMPLOYEES IN  NEW  YORK  STATE,  INCLUDING  ANY  RELATED
MEMBERS  OR  AFFILIATES,  (II)  NOT  BE  A  SOLE-PROPRIETORSHIP  IF SUCH
SOLE-PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF  SUCH
SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
ING  ANY  ALLOCATION  OR  AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER
ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
  (C) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL  REFER  TO
ELECTRICAL  POWER  USAGE  USED  TO  FURTHER THE ECONOMIC ACTIVITY OF THE
TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
ANY SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY  BUSINESS
LOCATION"  SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE STATE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04174-01-5
              

A. 1953                             2

OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S  ECONOMIC  ACTIVITY  IS
GENERATED  OR  COORDINATED  THROUGH.    (III) THE TERM "RELATED MEMBERS"
SHALL HAVE THE SAME MEANING AS SET FORTH  IN  CLAUSES  (A)  AND  (B)  OF
SUBPARAGRAPH  ONE  OF  PARAGRAPH  (O) OF SUBDIVISION NINE OF SECTION TWO
HUNDRED EIGHT OF THIS ARTICLE, AND  THE  TERM  "AFFILIATES"  SHALL  MEAN
THOSE  CORPORATIONS  THAT  ARE  MEMBERS OF THE SAME AFFILIATED GROUP (AS
DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE) AS
THE TAXPAYER.
  (D) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
THE TAXPAYER FOR BUSINESS RELATED ELECTRICITY USAGE DURING  THE  TAXPAY-
ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
PROVIDED  TO  THE  TAXPAYER  BY THE TAXPAYER'S ELECTRICITY POWER SERVICE
PROVIDER.
  (E) IN NO EVENT SHALL THE CREDIT PROVIDED FOR IN THIS  SUBDIVISION  BE
ALLOWED  IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE
FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH (D)  OF  SUBDIVISION
ONE  OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF THE AMOUNT
OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY  TAXABLE  YEAR  REDUCES
THE  TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT 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  2. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) SMALL BUSINESS ELECTRIC ENERGY TAX CREDIT. (1) A  TAXPAYER  THAT
IS  ELIGIBLE  UNDER  THE  LIMITATIONS SPECIFIED IN PARAGRAPH TWO OF THIS
SUBSECTION SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED  BY  THIS
ARTICLE.  THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE PRODUCT (OR PRO
RATA SHARE OF THE PRODUCT IN THE CASE OF A PARTNERSHIP) OF TWO CENTS PER
KILOWATT HOUR FOR ALL BUSINESS RELATED ELECTRICITY USAGE AT THE  TAXPAY-
ER'S PRIMARY BUSINESS LOCATION.
  (2)  AN  ELIGIBLE  TAXPAYER  SHALL (I) HAVE NO MORE THAN NINETEEN FULL
TIME EQUIVALENT EMPLOYEES IN  NEW  YORK  STATE,  INCLUDING  ANY  RELATED
MEMBERS  OR  AFFILIATES, (II) SHALL NOT BE A SOLE-PROPRIETORSHIP IF SUCH
SOLE-PROPRIETOR'S PRIMARY BUSINESS LOCATION IS SITED IN OR PART OF  SUCH
SOLE-PROPRIETOR'S PLACE OF RESIDENCE, (III) NOT BE CERTIFIED PURSUANT TO
ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, AND (IV) NOT BE RECEIV-
ING  ANY  ALLOCATION  OR  AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER
ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.
  (3) (I) THE TERM "BUSINESS RELATED ELECTRICITY USAGE" SHALL  REFER  TO
ELECTRICAL  POWER  USAGE  USED  TO  FURTHER THE ECONOMIC ACTIVITY OF THE
TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED FROM
ANY SHARED ELECTRICAL POWER USAGE COST. (II) THE TERM "PRIMARY  BUSINESS
LOCATION"  SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITHIN THE STATE
OF NEW YORK WHERE THE MAJORITY OF THE TAXPAYER'S  ECONOMIC  ACTIVITY  IS
GENERATED OR COORDINATED THROUGH. (III) THE TERM "RELATED MEMBERS" SHALL
HAVE  THE  SAME  MEANING AS SET FORTH IN CLAUSES (A) AND (B) OF SUBPARA-
GRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF  SECTION  TWO  HUNDRED
EIGHT OF THIS CHAPTER, AND THE TERM "AFFILIATES" SHALL MEAN THOSE CORPO-
RATIONS  THAT  ARE  MEMBERS  OF THE SAME AFFILIATED GROUP (AS DEFINED IN
SECTION FIFTEEN HUNDRED FOUR  OF  THE  INTERNAL  REVENUE  CODE)  AS  THE
TAXPAYER.
  (4) THE ELIGIBLE USAGE LEVEL SHALL BE THE TOTAL KILOWATT HOUR USAGE OF
THE  TAXPAYER  FOR BUSINESS RELATED ELECTRICITY USAGE DURING THE TAXPAY-

A. 1953                             3

ER'S TAXABLE YEAR AS VERIFIED THROUGH BILLS OR OTHER FORM OF USAGE CHART
PROVIDED TO THE TAXPAYER BY THE  TAXPAYER'S  ELECTRICITY  POWER  SERVICE
PROVIDER.
  (5)  IF  THE  AMOUNT  OF  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 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
follows:
(XLI) SMALL BUSINESS ELECTRIC        QUALIFYING ELECTRICITY USAGE
ENERGY TAX CREDIT                    UNDER SUBDIVISION FORTY-NINE
UNDER SUBSECTION (CCC)               OF SECTION TWO HUNDRED TEN-B
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.