S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4507
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 13, 2019
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to a small business grid renew-
   able 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 53 to read as follows:
   53. SMALL BUSINESS GRID RENEWABLE ENERGY TAX CREDIT.  (A)  A  TAXPAYER
 THAT  IS  ELIGIBLE  UNDER  THE LIMITATIONS SPECIFIED IN PARAGRAPH (B) OF
 THIS SUBDIVISION SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED  BY
 THIS ARTICLE.  THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY PERCENT
 OF THE COST OF CONVERSION FROM ELECTRIC OR GAS TO RENEWABLE ENERGY.
   (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, (IV) NOT BE RECEIVING
 ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER ARTICLE
 SIX OF THE ECONOMIC DEVELOPMENT LAW, AND (V) SHALL BE LOCATED  WITHIN  A
 CERTAIN RADIUS OF OTHER QUALIFIED SMALL BUSINESSES.
   (C) (I) THE TERM "BUSINESS RELATED RENEWABLE ENERGY USAGE" SHALL REFER
 TO RENEWABLE ENERGY POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF
 THE  TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED
 FROM ANY SHARED RENEWABLE ENERGY  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 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
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10337-01-9

 S. 4507                             2
 
 GROUP (AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVEN-
 UE CODE) AS THE TAXPAYER.
   (D)  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 (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 ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
 HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (jjj) to read as follows:
   (JJJ)  SMALL BUSINESS GRID RENEWABLE 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 TWENTY  PERCENT
 OF THE COST OF CONVERSION FROM ELECTRIC OR GAS TO RENEWABLE ENERGY.
   (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, (IV) NOT BE RECEIVING
 ANY ALLOCATION OR AWARD PURSUANT TO ANY PROGRAM AUTHORIZED UNDER ARTICLE
 SIX OF THE ECONOMIC DEVELOPMENT LAW, AND (V) SHALL BE LOCATED  WITHIN  A
 CERTAIN RADIUS OF OTHER QUALIFIED SMALL BUSINESSES.
   (3) (I) THE TERM "BUSINESS RELATED RENEWABLE ENERGY USAGE" SHALL REFER
 TO RENEWABLE ENERGY POWER USAGE USED TO FURTHER THE ECONOMIC ACTIVITY OF
 THE  TAXPAYER AT THE PRIMARY BUSINESS LOCATION THAT IS CLEARLY DELIMITED
 FROM ANY SHARED RENEWABLE ENERGY POWER USAGE COST. (II) THE TERM "PRIMA-
 RY BUSINESS LOCATION" SHALL MEAN THE PHYSICAL SITE OF THE TAXPAYER WITH-
 IN 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 SUBPARAGRAPH ONE OF PARAGRAPH (O) OF SUBDIVISION NINE OF SECTION  TWO
 HUNDRED  EIGHT  OF  THIS  CHAPTER,  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.
   (4)  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.
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
 follows:
 (XLIV) SMALL BUSINESS GRID RENEWABLE    QUALIFYING GRID RENEWABLE ENERGY
 ENERGY TAX CREDIT UNDER                 USAGE UNDER SUBDIVISION
 SUBSECTION (JJJ)                        FIFTY-THREE OF SECTION TWO
                                         HUNDRED TEN-B
   § 4. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.