NY State Senate Bill 2017-S490

Senate Bill S490

2017-2018 Legislative Session

Provides a maximum $200 tax credit for taxpayer expenses associated with the development of open source and free software license programs

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2017	referred to investigations and government operations

2017-S490 (ACTIVE) - Details

See Assembly Version of this Bill:: A4521
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S4046
2011-2012: S43, A8831, A8682
2013-2014: S173, A3158
2015-2016: S161, A2102
2019-2020: A1710
2021-2022: A94

2017-S490 (ACTIVE) - Summary

Provides a maximum $200 tax credit for taxpayer expenses associated with the development of open source and free software license programs.

2017-S490 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S490

 TITLE OF BILL :  An act to amend the tax law, in relation to
providing a tax credit to individuals for up to two hundred dollars of
expenses related to the development and posting of an open source or
free license program

 PURPOSE :

The purpose of this bill is to incentivize individuals to develop Open
Source Software with a tax credit.

 SUMMARY OF PROVISIONS :

Amends § 606 of the Tax Law by providing for an Open Source tax credit
to the creators of Open Source software. (2) amends § 606 of the Tax
Law by providing for the type of programs that qualify for the Open
Source tax credit. (3) amends § 606 of the Tax Law by providing to
whom the Open Source tax credit applies. (4) amends § 606 of the Tax
Law by providing the limits and regulations of the tax credit itself.

 JUSTIFICATION :

"Open Source" refers to software offered for free online download
along with its instruction set ("source code"). The New York State
Assembly currently uses Open Source programs such as Mozilla for

email, Firefox for web browsing, and WebCal for electronic calendars.
The Assembly's use of this software has led to significant cost
savings for the Assembly's operating budget. Once an Open Source
program is downloaded with its source code, anyone can view the
instructions, modify the program, and redistribute it with the same
freedoms". A 2006 report authorized by John Irons and Carl Malamud
from the Center for American Progress details how Open Source software
provides a high social value amongst the group, but a relatively low
economic incentive for individual developers. By allowing open access
to the technology's source code, Open Source software enhances a
broader dissemination of knowledge and ideas Although large
corporations such as IBM develop and use Open Source programs, most
Open Source software is written by individuals volunteering from home.
Currently, corporations and self-employed individuals who create Open
Source technology are eligible for a tax deduction for their software
development costs. The vast majority of Open Source software creators
(individual volunteers), however, do not receive this tax credit. This
legislation creates a similar tax credit incentive for individuals who
currently have no means to deduct these expenses. The tax credit would
apply only to out-of-pocket expenses such as Internet hosting and
depreciated cost of capital expenses such as computers and education.
The increased incentive for individuals would attract more Open Source
developers to New York State, resulting in job creation and a
reinvigoration of our State's technology sector. Additionally, an
influx of Open Source software would lower operating costs for larger
agencies (such as the Assembly), by providing usable software without
charge.

 LEGISLATIVE HISTORY :

2016: S161/A2102 - COMMITTED TO FINANCE/ referred to ways and means
2015: S161/A2102 - REFERRED TO INVESTIGATIONS AND GOVERNMENT
OPERATIONS/ referred to ways and means
2013-2014: S173-A - REFERRED TO INVESTIGATIONS AND GOVERNMENT
OPERATIONS
2011-2012: S43 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
2009-10: S4046/A6380 - REFERRED TO INVESTIGATIONS AND GOVERNMENT
OPERATIONS/referred to ways and means

 FISCAL IMPLICATIONS :
To be determined.

 LOCAL FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act will take effect immediately and shall apply to taxable years
beginning on and after the first of January next succeeding the date
on which it shall have become a law.

2017-S490 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    490
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation to providing a  tax  credit  to
   individuals  for  up to two hundred dollars of expenses related to the
   development and posting of an open source or free license program
 
   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 (ccc) to read as follows:
   (CCC) OPEN SOURCE OR FREE LICENSE CREDIT.  (1)  A  TAXPAYER  SHALL  BE
 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST
 THE  TAX  IMPOSED  PURSUANT TO SECTION SIX HUNDRED ONE OF THIS PART. THE
 AMOUNT OF CREDIT SHALL EQUAL UP TO TWENTY PERCENT OF THE  TOTAL  OUT-OF-
 POCKET  EXPENSES  OF  THE  TAXPAYER USED IN THE DEVELOPMENT OF A PROGRAM
 THAT IS PROVIDED TO THE PUBLIC UNDER AN OPEN  SOURCE  OR  FREE  SOFTWARE
 LICENSE, UP TO A MAXIMUM OF TWO HUNDRED DOLLARS.
   (2)  FOR  THE PURPOSES OF THIS SUBSECTION, A PROGRAM SHALL QUALIFY FOR
 THE CREDIT PROVIDED BY THIS SUBSECTION IF THE CODE FOR SUCH PROGRAM  HAS
 BEEN RELEASED UNDER AN OPEN SOURCE LICENSE RECOGNIZED BY THE OPEN SOURCE
 INITIATIVE,  OR  HAS  BEEN RELEASED UNDER A FREE SOFTWARE LICENSE RECOG-
 NIZED BY THE FREE SOFTWARE FOUNDATION.
   (3) THIS SUBSECTION SHALL APPLY TO ANY INDIVIDUAL FOR ANY TAXABLE YEAR
 ONLY IF SUCH INDIVIDUAL ELECTS TO HAVE THIS SECTION APPLY FOR SUCH TAXA-
 BLE YEAR. AN ELECTION TO HAVE THIS SECTION APPLY MAY NOT BE MADE FOR ANY
 TAXABLE YEAR IF SUCH ELECTION IS IN EFFECT WITH RESPECT TO SUCH INDIVID-
 UAL FOR ANY OTHER TAXABLE YEAR AND PERTAINING TO THE SAME PROGRAM OR ANY
 PORTION THEREOF.
   (4) IN NO EVENT SHALL THE  AMOUNT  OF  THE  CREDIT  PROVIDED  BY  THIS
 SUBSECTION  EXCEED  THE TAXPAYER'S TAX FOR THE TAXABLE YEAR. HOWEVER, IF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD00854-01-7

 S. 490                              2
 
 THE AMOUNT OF CREDIT OTHERWISE ALLOWABLE PURSUANT TO THIS SUBSECTION FOR
 ANY TAXABLE YEAR RESULTS IN SUCH EXCESS AMOUNT, ANY AMOUNT OF CREDIT NOT
 DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED  OVER  TO  THE  FOLLOWING
 YEAR  OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
 OR YEARS.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after the first of January  next  succeeding  the
 date on which it shall have become a law.

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