NY State Senate Bill 2019-S9058

Senate Bill S9058

2019-2020 Legislative Session

Relates to providing assistance to small businesses in the procurement and purchase of personal protective equipment for employees

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules 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
Oct 19, 2020	referred to rules

2019-S9058 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Economic Development Law
Laws Affected:: Amd §134, Ec Dev L; amd §§210-B & 606, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S3142

2019-S9058 (ACTIVE) - Summary

Provides assistance to small businesses in the procurement and purchase of personal protective equipment for employees; directs bulk purchasing of PPE by the division for small business; provides a tax credit for the cost of such PPE to small business employers.

2019-S9058 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S9058

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the economic development law and the tax law, in
relation to providing assistance to small businesses' employers in the
procurement and purchasing of personal protective equipment

 
PURPOSE OR GENERAL IDEA OF BILL:

An act to amend the economic development law and the tax law, in
relation to providing assistance to small businesses' employers in the
procurement and purchasing of personal protective equipment

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 134 of the economic development law to create
a program within the Division of Small Business to make bulk purchases
of PPE and provide them at cost to small businesses. Small business is
defined in the existing section of the law as a business with 100 or

fewer employees. 'PPE' is defined as all equipment proven to help
prevent the spread of communicable disease.

Section 2: Amends section 210-b of the tax law in order to provide a tax
credit to any small business, as defined in the above section, for any
expense incurred for the purchase of PPE for use by the business. If any
amount of the allowable tax credit exceeds the taxpayer's tax in a given
year, the excess can be carried over to the subsequent year.

Section 3: Amends section 606 of the tax law in order to provide a tax
credit for small business purchase of PPE, and allows any excess credit
to be carried over to the following year.

Section 4: Adds a new clause (xlvi) to tax law section 606, subparagraph
B of paragraph 1 of section (i) referencing the above amended
subsections of tax code 606 and 210-b, as relates to the credit for
purchase of PPE.

Section 5: This act will take effect immediately, provided that sections
2, 3 and 4 will apply beginning in the taxable year beginning January 1,
2021.

 
JUSTIFICATION:

As New York's small businesses struggle to reopen during the Covidl9
pandemic, they are struggling to handle lost revenue and the increased
cost of adapting to the public health realities that are necessary to
keep employees and patrons safe as they operate their businesses. The
purchase of PPE, while necessary, is an additional cost to small busi-
nesses that are operating on very narrow margins.  This bill will create
a program in the Division for Small Businesses to bulk buy PPE, so as to
take advantage of lower costs, and distribute that equipment on to small
businesses at cost. This will allow the State to leverage its buying
power and pass on cost savings to local business owners. Additionally,
the bill creates a tax credit for any small business, as defined by
having 100 employees or less, for any cost associated with PPE. The
lowered cost combined with a tax credit is a necessary step in helping

small, local businesses, which are the fabric of our communities,
recover during the current recession.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
Immediately

2019-S9058 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9058
 
                             I N  S E N A T E
 
                             October 19, 2020
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN  ACT  to  amend  the  economic  development  law  and the tax law, in
   relation to providing assistance to small businesses' employers in the
   procurement and purchasing of personal protective equipment
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 134 of the economic development law is amended by
 adding a new subdivision 13 to read as follows:
   13. MAKE BULK PURCHASES OF PERSONAL  PROTECTIVE  EQUIPMENT  (PPE)  AND
 MAKE SUCH PPE AVAILABLE, AT COST, TO SMALL BUSINESSES AS DEFINED IN THIS
 ARTICLE. FOR PURPOSES OF THIS SUBDIVISION "PERSONAL PROTECTIVE EQUIPMENT
 (PPE)"  SHALL  MEAN ALL EQUIPMENT WORN OR USED TO MINIMIZE EXPOSURE TO A
 COMMUNICABLE DISEASE, INCLUDING BUT NOT LIMITED  TO  GLOVES,  MASKS  AND
 FACESHIELDS.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 55 to read as follows:
   55. CREDIT FOR THE PURCHASE OF PERSONAL PROTECTIVE EQUIPMENT (PPE)  BY
 SMALL  BUSINESS  EMPLOYERS.  (A)  A TAXPAYER WHO IS A SMALL BUSINESS, AS
 DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF  THE  ECONOMIC  DEVELOPMENT
 LAW,  SHALL  BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE
 FOR THE PURCHASE OF PERSONAL PROTECTIVE EQUIPMENT (PPE) FOR USE BY  SUCH
 TAXPAYER'S  EMPLOYEES.  THE TOTAL AMOUNT OF THE CREDIT SHALL BE THE COST
 INCURRED IN PURCHASING THE PERSONAL PROTECTIVE EQUIPMENT (PPE).
   (B) FOR THE PURPOSES OF THIS SUBDIVISION "PERSONAL  PROTECTIVE  EQUIP-
 MENT  (PPE)"  SHALL MEAN ALL EQUIPMENT WORN OR USED TO MINIMIZE EXPOSURE
 TO A COMMUNICABLE DISEASE, INCLUDING BUT NOT LIMITED  TO  GLOVES,  MASKS
 AND FACESHIELDS.
   (C)  IF  THE  AMOUNT  OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL
 EXCEED THE TAXPAYER'S TAX FOR SUCH  YEAR, THE EXCESS MAY BE CARRIED OVER
 TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM  THE  TAXPAYER'S
 TAX FOR SUCH YEAR OR YEARS.
   (D)  IF ALL OR ANY PART OF THE CREDIT PROVIDED FOR UNDER THIS SUBDIVI-
 SION WAS ALLOWED OR CARRIED OVER FROM A PRIOR TAXABLE YEAR OR  YEARS,  A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD17339-01-0

 S. 9058                             2
 
 TAXPAYER  SHALL  REDUCE  THE  ALLOWABLE CREDIT FOR ADDITIONAL QUALIFYING
 EXPENDITURES IN A SUBSEQUENT TAX YEAR BY THE AMOUNT OF THE CREDIT PREVI-
 OUSLY ALLOWED OR CARRIED OVER.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (kkk) to read as follows:
   (KKK) CREDIT FOR THE PURCHASE OF PERSONAL PROTECTIVE  EQUIPMENT  (PPE)
 BY SMALL BUSINESS EMPLOYERS.  (1) A TAXPAYER WHO IS A SMALL BUSINESS, AS
 DEFINED  IN  SECTION  ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT
 LAW, SHALL BE ALLOWED A CREDIT OF PERSONAL  PROTECTIVE  EQUIPMENT  (PPE)
 FOR  USE  BY  SUCH  TAXPAYER'S EMPLOYEES. THE TOTAL AMOUNT OF THE CREDIT
 SHALL BE THE COST INCURRED IN PURCHASING  THE PERSONAL PROTECTIVE EQUIP-
 MENT (PPE).
   (2) FOR THE PURPOSES OF THIS SUBSECTION "PERSONAL PROTECTIVE EQUIPMENT
 (PPE)" SHALL MEAN ALL EQUIPMENT WORN OR USED TO MINIMIZE EXPOSURE  TO  A
 COMMUNICABLE  DISEASE,  INCLUDING  BUT  NOT LIMITED TO GLOVES, MASKS AND
 FACESHIELDS.
   (3) IF THE AMOUNT OF CREDIT  ALLOWABLE  UNDER  THIS  SUBSECTION  SHALL
 EXCEED  THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
 TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM  THE  TAXPAYER'S
 TAX FOR SUCH YEAR OR YEARS.
   (4)  IF  ALL  OR  ANY  PART  OF  THE  CREDIT  PROVIDED  FOR UNDER THIS
 SUBSECTION WAS ALLOWED OR CARRIED OVER FROM  A  PRIOR  TAXABLE  YEAR  OR
 YEARS, A TAXPAYER SHALL REDUCE THE ALLOWABLE CREDIT FOR ADDITIONAL QUAL-
 IFYING EXPENDITURES IN A SUBSEQUENT TAX YEAR BY THE AMOUNT OF THE CREDIT
 PREVIOUSLY ALLOWED OR CARRIED OVER.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xlvi)  to  read  as
 follows:
 
 (XLVI) CREDIT FOR                    AMOUNT OF CREDIT
 THE PURCHASE OF PERSONAL             UNDER SUBDIVISION
 PROTECTIVE EQUIPMENT (PPE)           FIFTY-FIVE OF SECTION
 BY SMALL BUSINESS EMPLOYERS          TWO HUNDRED TEN-B
 UNDER SUBSECTION (KKK)
 
   §  5.  This  act shall take effect immediately; provided that sections
 two, three and four of this act shall apply to taxable  years  beginning
 on and after January 1, 2020.

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