NY State Senate Bill 2021-S3961

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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 05, 2022	referred to budget and revenue
Feb 01, 2021	referred to budget and revenue

co-Sponsors

2021-S3961 (ACTIVE) - Details

See Assembly Version of this Bill:: A5250
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A902
2011-2012: A2309
2013-2014: A1619
2015-2016: A1953
2017-2018: A400
2019-2020: S7702, A3600
2023-2024: S4646, A4387

2021-S3961 (ACTIVE) - Summary

Creates a small business electric energy tax credit; specifies that the amount of credit shall be equal to the product of $0.02 per kilowatt hour; sets limit of no more than 19 full-time employees in New York state; determines that if the business is located at the primary residence of a sole proprietor, the business is not eligible for the tax credit.

2021-S3961 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3961

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the tax law, in relation to a small business electric
energy tax credit

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 210-b of the Tax Law, relating to franchise
taxes on business corporations, by adding a new subdivision 46 creating
a small business electric energy tax credit. The section defines eligi-
bility and other restrictions and requirements, and provides for a tax
credit equal to the product of two cents per kilowatt hour for all busi-
ness-related electricity usage at the taxpayer's primary business
location.

Section 2 amends Section 606 of the Tax Law, relating to personal income
tax, by adding a new subsection (w). This subsection provides for a
small business electric energy tax credit. The section defines eligibil-
ity and other restrictions and requirements, and provides for a tax

credit equal to the product of two cents per kilowatt hour for all busi-
ness-related electricity usage at the taxpayer's primary business
location

Section 3 amends subparagraph (B) of paragraph 1 of subsection (i) of

Section 606 of the tax law, by adding a new clause (xliii) to read as
follows: (xli) small business electricity energy credit under subsection
(ccc) and qualifying electricity usage under subdivision 49 of section
two hundred ten-b.

Section 4 provides for the effective date.

 
PURPOSE AND JUSTIFICATION:

Small businesses are critical to the economic health and growth of our
state. Small businesses are a powerful engine for job growth, and a
source of innovation that will keep our state competitive around the
world. Energy costs have risen faster than many small businesses could
have predicted or planned for, and as a result, many find themselves
under financial pressure. The bill applies to companies with less than
20 employees. It is estimated that 366,000 businesses employing 1.4
million New Yorkers will be impacted by this legislation. This bill will
help to offset these increased costs by offering a tax credit, and help
to ensure that our small businesses will remain healthy and productive.
These tax credits will also help to hold overhead down and make our
small businesses better able to compete both nationally and interna-
tionally.

 
PRIOR LEGISLATIVE HISTORY:

2019-2020: S. 7702 Referred to Budget and Revenue

2017-18: S. 5420/A.400 Referred to Investigations/Referred to Ways and
Means

2015-16: A.1953 referred to Ways and Means
2013-14: A.1619 referred to Ways and Means

2011-12: A.2309 referred to Ways and Means

2009-10: A.902 referred to Ways and Means

2007-08: A.10728 referred to Ways and Means/S1671 Passed Senate

2005-06: 5.6566 passed Senate

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S3961 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3961
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2021
                                ___________
 
 Introduced  by  Sens. KENNEDY, KAPLAN -- read twice and ordered printed,
   and when printed to be committed to the Committee on Budget and Reven-
   ue
 
 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 55 to read as follows:
   55.  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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02501-01-1

 S. 3961                             2
 
 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 ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (kkk) to read as follows:
   (KKK)  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-
 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.

 S. 3961                             3
 
   (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.
   §  3. 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) SMALL BUSINESS ELECTRIC       QUALIFYING ELECTRICITY USAGE
 ENERGY TAX CREDIT                    UNDER SUBDIVISION FIFTY-FIVE
 UNDER SUBSECTION (KKK)               OF SECTION TWO HUNDRED TEN-B
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2021.

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Senate Bill S3961

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2021-S3961 (ACTIVE) - Details

2021-S3961 (ACTIVE) - Summary

2021-S3961 (ACTIVE) - Sponsor Memo

2021-S3961 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3961

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Sponsored By

Timothy M. Kennedy

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

Anna M. Kaplan

2021-S3961 (ACTIVE) - Details

2021-S3961 (ACTIVE) - Summary

2021-S3961 (ACTIVE) - Sponsor Memo

2021-S3961 (ACTIVE) - Bill Text download pdf

Comments