NY State Senate Bill 2021-S540B

Senate Bill S540B

2021-2022 Legislative Session

Establishes a tax credit for any equipment or product purchased by a small business that is used to comply with a COVID-19 health and safety plan

download bill text pdf

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to budget and revenue
May 19, 2021	reported and committed to finance
May 10, 2021	print number 540b
May 10, 2021	amend and recommit to budget and revenue
May 06, 2021	print number 540a
May 06, 2021	amend (t) and recommit to budget and revenue
Jan 06, 2021	referred to budget and revenue

Votes

- May 18, 2021 - Budget And Revenue Committee Vote
  S540B
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Budget And Revenue Committee Vote: May 18, 2021
      
      aye (6)
      
      Benjamin
      
      Kaminsky
      
      Liu
      
      Rath III
      
      Salazar
      
      Weik
      
      aye wr (1)
      
      Krueger

Bill Amendments

Original

B (Active)

2021-S540 - Details

See Assembly Version of this Bill:: A6870
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in 2019-2020 Legislative Session:: S9078

2021-S540 - Summary

Establishes a tax credit for any equipment or product, including materials used in the construction of physical barriers, purchased by a small business doing business in this state that is directly used by such small business to comply with a COVID-19 health and safety plan.

2021-S540 - Sponsor Memo

                                
 
BILL NUMBER: S540

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to exempting from sales and
compensating use taxes and establishing a tax credit for any equipment
or product purchased by a small business that is used to comply with a
COVID-19 health and safety plan

 
PURPOSE:

This legislation creates a sales tax exemption for the purchase of
equipment or products purchased by small businesses to comply with a
COVID-19 health and safety plan.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 Adds a paragraph 46 to Section 1115 of the tax law. To create
a sales tax exemption for any equipment or product, including materials
used in the construction of physical barriers, including but limited to

plastic shielding walls, strip curtains, cubicle walls, plexiglass or
similar materials, as well as impermeable dividers or partitions that
were purchased by a small business. The small business must be one
hundred or fewer employees and products must be used in order to ensure
compliance with a COVID-19 health and safety plan.

Section 2 adds a new subdivision 55 to Section 210-B of the tax law to
create a sales tax credit for any equipment or product, including mate-
rials used in the construction of physical barriers, including but
limited to plastic shielding walls, strip curtains, cubicle walls, plex-
iglass or similar materials, as well as impermeable dividers or parti-
tions that were purchased by a small business. The small business must
be one hundred or fewer employees and products must be used in order to
ensure compliance with a COVID-19 health and safety plan. This credit is
for the period of time from May 15, 2020 until the effective date of
this law.

Section 3 adds a new subsection kkk to Section 606 of the tax law to
create a sales tax credit for any equipment or product, including mate-
rials used in the construction of physical barriers, including but
limited to plastic shielding walls, strip curtains, cubicle walls, plex-
iglass or similar materials, as well as impermeable dividers or parti-
tions that were purchased by a small business. The small business must
be one hundred or fewer employees and products must be used in order to
ensure compliance with a COVID-19 health and safety plan. This credit is
for the period of time from May 15, 2020 until the effective date of
this law.

Section 4 adds a new clause (xlvi) to subparagraph (B) of paragraph 1 of
subsection (i)of section 606 of the tax law, to add sales taxes paid on
materials for COVID-19 health and safety plans to the list of enumerated
items free from sales tax.

Section 5 is the effective date.

 
JUSTIFICATION:


As we enter into a new normal, the need to purchase material to meet
COVID-19 health and safety plans has become a necessity. This legis-
lation will help reduce the cost to small businesses on their purchases
of products needed to meet COVID-19 health and safety plans. As we see
employers needing to purchase these products in order to ensure a safe
working environment for their employees, the cumulative impact of
purchasing significant amounts of products will be felt, and in removing
this tax will help reduce this cost burden to the small business. The
cumulative impact of having to purchase these items could be significant
for small businesses and as such is warranted to take means to reduce
this cost for them. Employees deserve to be provided with the healthiest
and safest working environment possible, this legislation will help
incentivize the continuous purchase of the very best materials that will
help protect employees.

 
PRIOR LEGISLATIVE HISTORY:

S. 9078 of 2020; Referred to Senate Rules Committee

 
FISCAL IMPLICATIONS:

None, as these tax receipts are unrealized.

 
EFFECTIVE DATE:
This act shall take effect on the first day of the sales tax quarterly
period commencing after this act shall have become a law.

2021-S540 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    540
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- 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  exempting  from  sales  and
   compensating use taxes and establishing a tax credit for any equipment
   or product purchased by a small business that is used to comply with a
   COVID-19 health and safety plan
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
 by adding a new paragraph 46 to read as follows:
   (46)  ANY  EQUIPMENT  OR  PRODUCT,  INCLUDING  MATERIALS  USED  IN THE
 CONSTRUCTION OF PHYSICAL BARRIERS, INCLUDING BUT NOT LIMITED TO  PLASTIC
 SHIELDING  WALLS,  STRIP  CURTAINS, CUBICLE WALLS, PLEXIGLASS OR SIMILAR
 MATERIALS, OR OTHER IMPERMEABLE DIVIDERS OR PARTITIONS, PURCHASED  BY  A
 SMALL  BUSINESS  DOING  BUSINESS  IN THIS STATE THAT IS DIRECTLY USED BY
 SUCH SMALL BUSINESS TO BE IN COMPLIANCE WITH A COVID-19 HEALTH AND SAFE-
 TY PLAN. FOR PURPOSES OF THIS PARAGRAPH, THE TERM "SMALL BUSINESS" SHALL
 MEAN A BUSINESS WITH ONE HUNDRED OR FEWER EMPLOYEES.
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 55 to read as follows:
   55.  SALES  TAX  PAID ON MATERIALS FOR COVID-19 HEALTH AND SAFETY PLAN
 COMPLIANCE. (1) FOR THE PERIOD BEGINNING  MAY  FIFTEENTH,  TWO  THOUSAND
 TWENTY  AND ENDING ON THE EFFECTIVE DATE OF THIS SUBDIVISION, A TAXPAYER
 WHO OWNS A SMALL BUSINESS SHALL BE ALLOWED A CREDIT FOR SALES  TAX  PAID
 FOR   ANY   EQUIPMENT  OR  PRODUCT,  INCLUDING  MATERIALS  USED  IN  THE
 CONSTRUCTION OF PHYSICAL BARRIERS, INCLUDING BUT NOT LIMITED TO  PLASTIC
 SHIELDING  WALLS,  STRIP  CURTAINS, CUBICLE WALLS, PLEXIGLASS OR SIMILAR
 MATERIALS, OR OTHER IMPERMEABLE DIVIDERS  OR  PARTITIONS,  PURCHASED  BY
 SUCH  SMALL BUSINESS IN ORDER TO BE IN COMPLIANCE WITH A COVID-19 HEALTH
 AND SAFETY PLAN.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD04910-01-1

 S. 540                              2
 
   (2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE SMALL BUSINESS'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 EIGHT-
 Y-SIX OF THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
 THEREON.
   (3)  FOR PURPOSES OF THIS SUBDIVISION, THE TERM "SMALL BUSINESS" SHALL
 MEAN A BUSINESS WITH ONE HUNDRED OR FEWER EMPLOYEES.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (kkk) to read as follows:
   (KKK)  SALES TAX PAID ON MATERIALS FOR COVID-19 HEALTH AND SAFETY PLAN
 COMPLIANCE. (1) FOR THE PERIOD BEGINNING  MAY  FIFTEENTH,  TWO  THOUSAND
 TWENTY  AND  ENDING ON THE EFFECTIVE DATE OF THIS SUBSECTION, A TAXPAYER
 WHO OWNS A SMALL BUSINESS SHALL BE ALLOWED A CREDIT FOR SALES  TAX  PAID
 FOR   ANY   EQUIPMENT  OR  PRODUCT,  INCLUDING  MATERIALS  USED  IN  THE
 CONSTRUCTION OF PHYSICAL BARRIERS, INCLUDING BUT NOT LIMITED TO  PLASTIC
 SHIELDING  WALLS,  STRIP  CURTAINS, CUBICLE WALLS, PLEXIGLASS OR SIMILAR
 MATERIALS, OR OTHER IMPERMEABLE DIVIDERS  OR  PARTITIONS,  PURCHASED  BY
 SUCH  SMALL BUSINESS IN ORDER TO BE IN COMPLIANCE WITH A COVID-19 HEALTH
 AND SAFETY PLAN.
   (2) IF THE AMOUNT OF THE 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)  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "SMALL BUSINESS" SHALL
 MEAN A BUSINESS WITH ONE HUNDRED OR FEWER EMPLOYEES.
   § 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) SALES TAX PAID ON MATERIALS   SALES TAX PAID ON
 FOR COVID-19 HEALTH AND SAFETY       MATERIALS FOR
 PLAN COMPLIANCE UNDER                COVID-19 HEALTH
 SUBSECTION (KKK)                     AND SAFETY PLAN
                                      COMPLIANCE UNDER
                                      SUBDIVISION FIFTY-FIVE
                                      OF SECTION TWO
                                      HUNDRED TEN-B
   § 5. This act shall take effect on the first  day  of  the  sales  tax
 quarterly  period commencing after this act shall have become a law, and
 shall apply to sales made and uses occurring on and after such  date  in
 accordance  with applicable transitional provisions of sections 1106 and
 1217 of the tax law; provided that  the  commissioner  of  taxation  and
 finance  shall  be  authorized on and after the date this act shall have
 become a law to take steps necessary to implement the provisions of this
 act on its effective date.

2021-S540A - Details

See Assembly Version of this Bill:: A6870
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in 2019-2020 Legislative Session:: S9078

2021-S540A - Summary

2021-S540A - Sponsor Memo

                                
 
BILL NUMBER: S540A

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a tax credit
for any equipment or product purchased by a small business that is used
to comply with a COVID-19 health and safety plan

 
PURPOSE:

This legislation creates a tax credit for the purchase of equipment or
products purchased by small businesses to comply with a COVID-19 health
and safety plan.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds a new subdivision 55 to Section 210-B of the tax law to
create a sales tax credit for any equipment or product, including mate-
rials used in the construction of physical barriers, including but
limited to plastic shielding walls, strip curtains, cubicle walls, plex-

iglass or similar materials, as well as impermeable dividers or parti-
tions that were purchased by a small business. The small business must
be one hundred or fewer employees and products must be used in order to
ensure compliance with a COVID-19 health and safety plan. This credit is
for the period of time from May 15, 2020 until the effective date of
this law.

Section 2 adds a new subsection kkk to Section 606 of the tax law to
create a sales tax credit for any equipment or product, including mate-
rials used in the construction of physical barriers, including but
limited to plastic shielding walls, strip curtains, cubicle walls, plex-
iglass or similar materials, as well as impermeable dividers or parti-
tions that were purchased by a small business. The small business must
be one hundred or fewer employees and products must be used in order to
ensure compliance with a COVID-19 health and safety plan. This credit is
for the period of time from May 15, 2020 until the effective date of
this law.

Section 3 adds a new clause (xlvi) to subparagraph (B) of paragraph 1 of
subsection (i)of section 606 of the tax law, to add sales taxes paid on
materials for COVID-19 health and safety plans to the list of enumerated
items free from sales tax.

Section 5 is the effective date.

 
JUSTIFICATION:

As we enter into a new normal, the need to purchase material to meet
COVID-19 health and safety plans has become a necessity. This legis-
lation will help reduce the cost to small businesses on their purchases
of products needed to meet COVID-19 health and safety plans. As we see
employers needing to purchase these products in order to ensure a safe
working environment for their employees, the cumulative impact of
purchasing significant amounts of products will be felt, and in removing
this tax will help reduce this cost burden to the small business. The
cumulative impact of having to purchase these items could be significant
for small businesses and as such is warranted to take means to reduce
this cost for them. Employees deserve to be provided with the healthiest
and safest working environment possible, this legislation will help
incentivize the continuous purchase of the very best materials that will
help protect employees.

 
PRIOR LEGISLATIVE HISTORY:

S. 9078 of 2020; Referred to Senate Rules Committee

 
FISCAL IMPLICATIONS:

None, as these tax receipts are unrealized.

 
EFFECTIVE DATE:
This act shall take effect on the first day of the sales tax quarterly
period commencing after this act shall have become a law.

2021-S540A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  540--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee

 AN ACT to amend the tax law, in relation to establishing  a  tax  credit
   for  any  equipment  or  product purchased by a small business that is
   used to comply with a COVID-19 health and safety plan
 
   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 58 to read as follows:
   58. SALES TAX PAID ON MATERIALS FOR COVID-19 HEALTH  AND  SAFETY  PLAN
 COMPLIANCE.  (1)  FOR  THE  PERIOD BEGINNING MAY FIFTEENTH, TWO THOUSAND
 TWENTY AND ENDING ON THE EFFECTIVE DATE OF THIS SUBDIVISION, A  TAXPAYER
 WHO  OWNS  A SMALL BUSINESS SHALL BE ALLOWED A CREDIT FOR SALES TAX PAID
 FOR  ANY  EQUIPMENT  OR  PRODUCT,  INCLUDING  MATERIALS  USED   IN   THE
 CONSTRUCTION  OF PHYSICAL BARRIERS, INCLUDING BUT NOT LIMITED TO PLASTIC
 SHIELDING WALLS, STRIP CURTAINS, CUBICLE WALLS,  PLEXIGLASS  OR  SIMILAR
 MATERIALS,  OR  OTHER  IMPERMEABLE  DIVIDERS OR PARTITIONS, PURCHASED BY
 SUCH SMALL BUSINESS IN ORDER TO BE IN COMPLIANCE WITH A COVID-19  HEALTH
 AND SAFETY PLAN.
   (2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
 TAXABLE  YEAR  SHALL  EXCEED THE SMALL BUSINESS'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 EIGHT-
 Y-SIX OF THIS CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
 THEREON.
   (3)  FOR PURPOSES OF THIS SUBDIVISION, THE TERM "SMALL BUSINESS" SHALL
 MEAN A BUSINESS WITH ONE HUNDRED OR FEWER EMPLOYEES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04910-02-1

 S. 540--A                           2
 
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (nnn) to read as follows:
   (NNN)  SALES TAX PAID ON MATERIALS FOR COVID-19 HEALTH AND SAFETY PLAN
 COMPLIANCE. (1) FOR THE PERIOD BEGINNING  MAY  FIFTEENTH,  TWO  THOUSAND
 TWENTY  AND  ENDING ON THE EFFECTIVE DATE OF THIS SUBSECTION, A TAXPAYER
 WHO OWNS A SMALL BUSINESS SHALL BE ALLOWED A CREDIT FOR SALES  TAX  PAID
 FOR   ANY   EQUIPMENT  OR  PRODUCT,  INCLUDING  MATERIALS  USED  IN  THE
 CONSTRUCTION OF PHYSICAL BARRIERS, INCLUDING BUT NOT LIMITED TO  PLASTIC
 SHIELDING  WALLS,  STRIP  CURTAINS, CUBICLE WALLS, PLEXIGLASS OR SIMILAR
 MATERIALS, OR OTHER IMPERMEABLE DIVIDERS  OR  PARTITIONS,  PURCHASED  BY
 SUCH  SMALL BUSINESS IN ORDER TO BE IN COMPLIANCE WITH A COVID-19 HEALTH
 AND SAFETY PLAN.
   (2) IF THE AMOUNT OF THE 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)  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "SMALL BUSINESS" SHALL
 MEAN A BUSINESS WITH ONE HUNDRED OR FEWER EMPLOYEES.
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xlix) to read as
 follows:
 (XLIX) SALES TAX PAID ON MATERIALS   SALES TAX PAID ON
 FOR COVID-19 HEALTH AND SAFETY       MATERIALS FOR
 PLAN COMPLIANCE UNDER                COVID-19 HEALTH
 SUBSECTION (NNN)                     AND SAFETY PLAN
                                      COMPLIANCE UNDER
                                      SUBDIVISION FIFTY-EIGHT
                                      OF SECTION TWO
                                      HUNDRED TEN-B
   § 4. This act shall take effect on the first  day  of  the  sales  tax
 quarterly  period commencing after this act shall have become a law, and
 shall apply to sales made and uses occurring on and after such  date  in
 accordance  with applicable transitional provisions of sections 1106 and
 1217 of the tax law; provided that  the  commissioner  of  taxation  and
 finance  shall  be  authorized on and after the date this act shall have
 become a law to take steps necessary to implement the provisions of this
 act on its effective date.

2021-S540B (ACTIVE) - Details

See Assembly Version of this Bill:: A6870
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in 2019-2020 Legislative Session:: S9078

2021-S540B (ACTIVE) - Summary

2021-S540B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S540B

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a tax credit
for any equipment or product purchased by a small business that is used
to comply with a COVID-19 health and safety plan

 
PURPOSE:

This legislation creates a tax credit for the purchase of equipment or
products purchased by small businesses to comply with a COVID-19 health
and safety plan.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds a new subdivision 58 to Section 210-B of the tax law to
create a sales tax credit for any equipment or product, including mate-
rials used in the construction of physical barriers, including but
limited to plastic shielding walls, strip curtains, cubicle walls, plex-

iglass or similar materials, as well as impermeable dividers or parti-
tions that were purchased by a small business. The small business must
be one hundred or fewer employees and products must be used in order to
ensure compliance with a COVID-19 health and safety plan. This credit is
for the period of time from May 15, 2020 until the effective date of
this law.

Section 2 adds a new subsection nnn to Section 606 of the tax law to
create a sales tax credit for any equipment or product, including mate-
rials used in the construction of physical barriers, including but
limited to plastic shielding walls, strip curtains, cubicle walls, plex-
iglass or similar materials, as well as impermeable dividers or parti-
tions that were purchased by a small business. The small business must
be one hundred or fewer employees and products must be used in order to
ensure compliance with a COVID-19 health and safety plan. This credit is
- for the period of time from May 15, 2020 until the effective date of
this law.

Section 3 adds a new clause (xlix) to subsection (i) of section 606 of
the tax law, to add sales taxes paid on materials for COVID-19 health
and safety plans to the list of enumerated items free from sales tax.

Section 5 is the effective date.

 
JUSTIFICATION:

As we enter into a new normal, the need to purchase material to meet
COVID-19 health and safety plans has become a necessity. This legis-
lation will help reduce the cost to small businesses on their purchases
of products needed to meet COVID-19 health and safety plans. As we see
employers needing to purchase these products in order to ensure a safe
working environment for their employees, the cumulative impact of
purchasing significant amounts of products will be felt, and in removing
this tax will help reduce this cost burden to the small business. The
cumulative impact of having to purchase these items could be significant
for small businesses and as such is warranted to take means to reduce
this cost for them. Employees deserve to be provided with the healthiest
and.safest working environment possible, this legislation will help
incentivize the continuous purchase of the very best materials that will
help protect employees.

 
PRIOR LEGISLATIVE HISTORY:

S.9078 of 2020; Referred to Senate Rules Committee

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately, and shall apply to taxable years
on and after January 1, 2021.

2021-S540B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  540--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- committee discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend the tax law, in relation to establishing a tax credit
   for any equipment or product purchased by a  small  business  that  is
   used to comply with a COVID-19 health and safety plan
 
   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 58 to read as follows:
   58.  SALES  TAX  PAID ON MATERIALS FOR COVID-19 HEALTH AND SAFETY PLAN
 COMPLIANCE. (1) A TAXPAYER THAT IS A SMALL BUSINESS SHALL BE  ALLOWED  A
 CREDIT  FOR  SALES TAX PAID DURING THE ELIGIBILITY PERIOD FOR ANY EQUIP-
 MENT OR PRODUCT, INCLUDING MATERIALS USED IN THE CONSTRUCTION  OF  PHYS-
 ICAL  BARRIERS,  INCLUDING  BUT  NOT LIMITED TO PLASTIC SHIELDING WALLS,
 STRIP CURTAINS, CUBICLE WALLS, PLEXIGLASS OR SIMILAR MATERIALS, OR OTHER
 IMPERMEABLE DIVIDERS OR PARTITIONS, PURCHASED BY SUCH SMALL BUSINESS  IN
 ORDER  TO  BE IN COMPLIANCE WITH A COVID-19 HEALTH AND SAFETY PLAN.  THE
 ELIGIBILITY PERIOD  SHALL  BE  THE  PERIOD  OF  TIME  BEGINNING  ON  MAY
 FIFTEENTH,  TWO  THOUSAND TWENTY AND ENDING WITH THE END OF THE DECLARED
 COVID-19 STATE OF EMERGENCY AS SET OUT PURSUANT TO EXECUTIVE  ORDER  TWO
 HUNDRED  TWO  OF TWO THOUSAND TWENTY AND AS CONTINUED IN EACH SUBSEQUENT
 EXECUTIVE ORDER.
   (2) THE  CREDIT  ALLOWED  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR
 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR 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 CRED-
 IT  ALLOWED  UNDER  THIS SUBDIVISION FOR ANY  TAXABLE  YEAR  REDUCES THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD04910-04-1

 S. 540--B                           2
 
 TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX  BASED  ON  THE
 FIXED DOLLAR  MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS 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  CHAP-
 TER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (3)  FOR PURPOSES OF THIS SUBDIVISION, THE TERM "SMALL BUSINESS" SHALL
 MEAN A BUSINESS WITH ONE HUNDRED OR FEWER EMPLOYEES.
   § 2. Section 606 of the tax law is amended by adding a new  subsection
 (nnn) to read as follows:
   (NNN)  SALES TAX PAID ON MATERIALS FOR COVID-19 HEALTH AND SAFETY PLAN
 COMPLIANCE. (1) A TAXPAYER WHO OWNS A SMALL BUSINESS SHALL BE ALLOWED  A
 CREDIT  FOR  SALES TAX PAID DURING THE ELIGIBILITY PERIOD FOR ANY EQUIP-
 MENT OR PRODUCT, INCLUDING MATERIALS USED IN THE CONSTRUCTION  OF  PHYS-
 ICAL  BARRIERS,  INCLUDING  BUT  NOT LIMITED TO PLASTIC SHIELDING WALLS,
 STRIP CURTAINS, CUBICLE WALLS, PLEXIGLASS OR SIMILAR MATERIALS, OR OTHER
 IMPERMEABLE DIVIDERS OR PARTITIONS, PURCHASED BY SUCH SMALL BUSINESS  IN
 ORDER  TO  BE  IN COMPLIANCE WITH A COVID-19 HEALTH AND SAFETY PLAN. THE
 ELIGIBILITY PERIOD  SHALL  BE  THE  PERIOD  OF  TIME  BEGINNING  ON  MAY
 FIFTEENTH,  TWO  THOUSAND TWENTY AND ENDING WITH THE END OF THE DECLARED
 COVID-19 STATE OF EMERGENCY AS SET OUT PURSUANT TO EXECUTIVE  ORDER  TWO
 HUNDRED  TWO OF  TWO THOUSAND TWENTY AND AS CONTINUED IN EACH SUBSEQUENT
 EXECUTIVE ORDER.
   (2) IF THE AMOUNT OF THE 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)  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "SMALL BUSINESS" SHALL
 MEAN A BUSINESS WITH ONE HUNDRED OR FEWER EMPLOYEES.
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xlix) to read as
 follows:
 (XLIX) SALES TAX PAID ON MATERIALS   SALES TAX PAID ON
 FOR COVID-19 HEALTH AND SAFETY       MATERIALS FOR
 PLAN COMPLIANCE UNDER                COVID-19 HEALTH
 SUBSECTION (NNN)                     AND SAFETY PLAN
                                      COMPLIANCE UNDER
                                      SUBDIVISION FIFTY-EIGHT
                                      OF SECTION TWO
                                      HUNDRED TEN-B
   § 4. This act shall take effect immediately, and shall apply to  taxa-
 ble  years  beginning  on  and  after January 1, 2021; provided that the
 commissioner of taxation and finance shall be authorized  on  and  after
 the  date  this  act  shall have become a law to take steps necessary to
 implement the provisions of this act on its effective date.

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