NY State Senate Bill 2021-S604B

Senate Bill S604B

2021-2022 Legislative Session

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 01, 2021	print number 604b
Jun 01, 2021	amend and recommit to budget and revenue
Jan 27, 2021	print number 604a
Jan 27, 2021	amend and recommit to budget and revenue
Jan 06, 2021	referred to budget and revenue

Bill Amendments

Original

B (Active)

2021-S604 - Details

See Assembly Version of this Bill:: A7970
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6754
2013-2014: S37
2015-2016: S1114
2017-2018: S319
2019-2020: S845
2023-2024: A2719

2021-S604 - Summary

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.

2021-S604 - Sponsor Memo

                                
 
BILL NUMBER: S604

SPONSOR: BENJAMIN
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing business fran-
chise and personal income tax credits for certain businesses which
contract with the state or political subdivisions thereof and in unre-
lated contracts, also with minority and women-owned business enterprises

 
PURPOSE:

Establishes business franchise and personal income tax credits for a
portion of the consideration paid under a contract with a minority or
women-owned business.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 210-B the tax law by adding a new subdivision
28 creating a business franchise tax credit for businesses that contract
with both the state and, in a separate and unrelated transaction, with a

women or minority owned business.

Sections 2 and 3 establish a personal income tax credit for tax payers
who contract with both the state and, in a separate and unrelated trans-
action, with a women or minority owned business.

Section 4 establishes the effective date.

 
EXISTING LAW:

Current law does not provide incentive for private companies to contract
MWBEs.

 
JUSTIFICATION:

New York has been a longtime leader in the promotion of minority and
women owned business enterprises ("MWBEs"). The core goals of the
State's efforts are 1) equality of economic opportunities for MWBEs and
2) elimination of barriers to their participation in state contracts.
The problem is that the State has focused on the latter as the sole
means of achieving the former. In order to help build fully self-sus-
taining minority and women owned businesses, the State must also do its
part to encourage private entities to contract with MWBEs.  This legis-
lation would incentivize the private sector to build long-term business
relationships with MWBEs by offering business franchise and personal
income tax credits for companies and individuals that contract with both
MWBEs and the State. State contracts are critical for initial growth,
but insufficient for long-term success. This legislation would help
build grow existing MWBEs while paving the way for the next generation.

 
LEGISLATIVE HISTORY:

2019-20: S845/A7008
2017-18: S319/A.2190
2015-2016: S.1114
2013-2014: S.37
2011-12: S.6754

 
FISCAL IMPLICATIONS:

To be determined

 
LOCAL FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to tax years
commencing on or after such date.

2021-S604 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    604
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sen. BENJAMIN -- 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 establishing business  fran-
   chise  and  personal  income  tax credits for certain businesses which
   contract with the state or political subdivisions thereof and in unre-
   lated contracts, also with minority and  women-owned  business  enter-
   prises
 
   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 28 to read as follows:
   28. MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT. (A)
 GENERAL.  A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO BE COMPUTED AS
 PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED  BY  THIS  ARTICLE
 FOR  A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-
 OWNED BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR  THE  PROVISION  OF
 GOODS  OR SERVICES. THE CREDIT PROVIDED FOR IN THIS SUBDIVISION SHALL BE
 ALLOWED WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS  PAID
 TO THE MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
   (B)  DEFINITIONS.  FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING
 TERMS SHALL MEAN:
   (I) "GOVERNMENT AGENCY" MEANS A STATE AGENCY OR A STATE  AUTHORITY  AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
 TIVE  LAW,  OR  A POLITICAL SUBDIVISION AS DEFINED IN SUBDIVISION ONE OF
 SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
   (II) "MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS  A  MINORITY-
 OWNED  BUSINESS  ENTERPRISE  AS  DEFINED IN SUBDIVISION SEVEN OF SECTION
 THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS  ENTER-
 PRISE  AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF
 THE EXECUTIVE LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD04914-01-1

 S. 604                              2
 
   (C) COMPUTATION. THE CREDIT AUTHORIZED BY THIS  SUBDIVISION  SHALL  BE
 EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
 TY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE PURSUANT TO A CONTRACT FOR THE
 PROVISION OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT  SUCH
 CONTRACT  WAS  NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A OF THE
 EXECUTIVE LAW OR ANY OTHER PROVISION OF LAW RELATING TO THE  AFFIRMATIVE
 ACTION,  AND  THE  TAXPAYER  IS  NOT  A MINORITY OR WOMEN-OWNED BUSINESS
 ENTERPRISE.  FURTHERMORE, THE AMOUNT OF SUCH  CREDIT  SHALL  NOT  EXCEED
 FIVE  PERCENT  OF  ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX
 YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF
 GOODS OR SERVICES.
   § 2. 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) MINORITY AND                  AMOUNT OF CREDIT
 WOMEN-OWNED BUSINESS                 UNDER SUBDIVISION
 EMPLOYMENT INCENTIVE                 TWENTY-EIGHT OF
 CREDIT UNDER                         SECTION TWO
 SUBSECTION (KKK)                     HUNDRED TEN-B
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (kkk) to read as follows:
   (KKK)  MINORITY  AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT.
 (1) GENERAL. A TAXPAYER SHALL BE ALLOWED A  CREDIT  TO  BE  COMPUTED  AS
 PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
 A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-OWNED
 BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS OR
 SERVICES.    THE CREDIT PROVIDED FOR IN THIS SUBSECTION SHALL BE ALLOWED
 WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID  TO  THE
 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
   (2)  DEFINITIONS.  FOR  THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
 TERMS SHALL MEAN:
   (I) "GOVERNMENT AGENCY" MEANS A STATE AGENCY OR A STATE  AUTHORITY  AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
 TIVE  LAW,  OR  A POLITICAL SUBDIVISION AS DEFINED IN SUBDIVISION ONE OF
 SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
   (II) "MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS  A  MINORITY-
 OWNED  BUSINESS  ENTERPRISE  AS  DEFINED IN SUBDIVISION SEVEN OF SECTION
 THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS  ENTER-
 PRISE  AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF
 THE EXECUTIVE LAW.
   (3) COMPUTATION. THE CREDIT AUTHORIZED BY  THIS  SUBSECTION  SHALL  BE
 EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
 TY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE PURSUANT TO A CONTRACT FOR THE
 PROVISION OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT  SUCH
 CONTRACT  WAS  NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A OF THE
 EXECUTIVE LAW OR ANY OTHER PROVISION  OF  LAW  RELATING  TO  AFFIRMATIVE
 ACTION,  AND  THE  TAXPAYER  IS  NOT  A MINORITY OR WOMEN-OWNED BUSINESS
 ENTERPRISE.  FURTHERMORE, THE AMOUNT OF SUCH  CREDIT  SHALL  NOT  EXCEED
 FIVE  PERCENT  OF  ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX
 YEAR PURSUANT TO CONTRACTS WITH GOVERNMENT AGENCIES FOR THE PROVISION OF
 GOODS OR SERVICES.
   § 4. This act shall take effect on the first of January next  succeed-
 ing  the date on which it shall have become a law and shall apply to tax
 years commencing on or after such date.

2021-S604A - Details

See Assembly Version of this Bill:: A7970
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6754
2013-2014: S37
2015-2016: S1114
2017-2018: S319
2019-2020: S845
2023-2024: A2719

2021-S604A - Summary

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.

2021-S604A - Sponsor Memo

                                
 
BILL NUMBER: S604A

SPONSOR: BENJAMIN
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing business fran-
chise and personal income tax credits for certain businesses which
contract with the state or political subdivisions thereof and in unre-
lated contracts, also with minority and women-owned business enterprises

 
PURPOSE:

Establishes business franchise and personal income tax credits for a
portion of the consideration paid under a contract with a minority or
women-owned business.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 210-B the tax law by adding a new subdivision
28 creating a business franchise tax credit for businesses that contract
with both the state and, in a separate and unrelated transaction, with a

women or minority owned business. The credit is capped at $15,000.

Sections 2 and 3 establish a personal income tax credit for tax payers
who contract with both the state and, in a separate and unrelated trans-
action, with a women or minority owned business. The credit is capped at
$15,000.

Section 4 establishes the effective date.

 
EXISTING LAW:

Current law does not provide incentive for private companies to contract
MWBEs.

 
JUSTIFICATION:

New York has been a longtime leader in the promotion of minority and
women owned business enterprises ("MWBEs"). The core goals of the
State's efforts are 1) equality of economic opportunities for MWBEs and
2) elimination of barriers to their participation in state contracts.
The problem is that the State has focused on the latter as the sole
means of achieving the former. In order to help build fully self-sus-
taining minority and women owned businesses, the State must also do its
part to encourage private entities to contract with MWBEs. This legis-
lation would incentivize the private sector to build long-term business
relationships with MWBEs by offering business franchise and personal
income tax credits for companies and individuals that contract with both
MWBEs and the State. State contracts are critical for initial growth,
but insufficient for long-term success. This legislation would help
build grow existing MWBEs while paving the way for the next generation.

 
LEGISLATIVE HISTORY:

2019-20: S845/A7008
2017-18: S319/A.2190
2015-2016: S.1114
2013-2014: S.37
2011-12: 5.6754
 
FISCAL IMPLICATIONS:

To be determined

 
LOCAL FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to tax years
commencing on or after such date.

2021-S604A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  604--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sen. BENJAMIN -- 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 business  fran-
   chise  and  personal  income  tax credits for certain businesses which
   contract with the state or political subdivisions thereof and in unre-
   lated contracts, also with minority and  women-owned  business  enter-
   prises
 
   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 28 to read as follows:
   28. MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT. (A)
 GENERAL.  A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO BE COMPUTED AS
 PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED  BY  THIS  ARTICLE
 FOR  A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-
 OWNED BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR  THE  PROVISION  OF
 GOODS  OR SERVICES. THE CREDIT PROVIDED FOR IN THIS SUBDIVISION SHALL BE
 ALLOWED WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS  PAID
 TO THE MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
   (B)  DEFINITIONS.  FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING
 TERMS SHALL MEAN:
   (I) "GOVERNMENT AGENCY" MEANS A STATE AGENCY OR A STATE  AUTHORITY  AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
 TIVE  LAW,  OR  A POLITICAL SUBDIVISION AS DEFINED IN SUBDIVISION ONE OF
 SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
   (II) "MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS  A  MINORITY-
 OWNED  BUSINESS  ENTERPRISE  AS  DEFINED IN SUBDIVISION SEVEN OF SECTION
 THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS  ENTER-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD04914-02-1

 S. 604--A                           2
 
 PRISE  AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF
 THE EXECUTIVE LAW.
   (C)  COMPUTATION.  THE  CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL BE
 EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
 TY OR WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO  A  CONTRACT  FOR  THE
 PROVISION  OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT SUCH
 CONTRACT WAS NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A  OF  THE
 EXECUTIVE  LAW  OR ANY OTHER PROVISION OF LAW MANDATING CONTRACTS WITH A
 MINORITY OR WOMEN-OWNED BUSINESS, AND THE TAXPAYER IS NOT A MINORITY  OR
 WOMEN-OWNED BUSINESS ENTERPRISE.  FURTHERMORE, THE AMOUNT OF SUCH CREDIT
 SHALL  NOT EXCEED THE LESSER OF FIFTEEN THOUSAND DOLLARS OR FIVE PERCENT
 OF ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX  YEAR  PURSUANT
 TO  CONTRACTS  WITH  GOVERNMENT  AGENCIES  FOR THE PROVISION OF GOODS OR
 SERVICES.  FOR COMPANIES WITH NO CONTRACTS WITH GOVERNMENT AGENCIES, THE
 AMOUNT OF THE CREDIT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS.
   (D) CARRYOVER. IN NO EVENT SHALL THE CREDIT AUTHORIZED BY THIS  SUBDI-
 VISION  BE  ALLOWED  IN  AN AMOUNT WHICH SHALL 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.  PROVIDED,
 HOWEVER, THAT IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR
 ANY  TAXABLE  YEAR  REDUCES  THE  TAX  TO SUCH AMOUNT OR IF THE TAXPAYER
 OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM 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. 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) MINORITY AND                  AMOUNT OF CREDIT
 WOMEN-OWNED BUSINESS                 UNDER SUBDIVISION
 EMPLOYMENT INCENTIVE                 TWENTY-EIGHT OF
 CREDIT UNDER                         SECTION TWO
 SUBSECTION (KKK)                     HUNDRED TEN-B
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (kkk) to read as follows:
   (KKK)  MINORITY  AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT.
 (1) GENERAL. A TAXPAYER SHALL BE ALLOWED A  CREDIT  TO  BE  COMPUTED  AS
 PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
 A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-OWNED
 BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS OR
 SERVICES.    THE CREDIT PROVIDED FOR IN THIS SUBSECTION SHALL BE ALLOWED
 WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID  TO  THE
 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
   (2)  DEFINITIONS.  FOR  THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
 TERMS SHALL MEAN:
   (I) "GOVERNMENT AGENCY" MEANS A STATE AGENCY OR A STATE  AUTHORITY  AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
 TIVE  LAW,  OR  A POLITICAL SUBDIVISION AS DEFINED IN SUBDIVISION ONE OF
 SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
   (II) "MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS  A  MINORITY-
 OWNED  BUSINESS  ENTERPRISE  AS  DEFINED IN SUBDIVISION SEVEN OF SECTION
 THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS  ENTER-
 PRISE  AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF
 THE EXECUTIVE LAW.
   (3) COMPUTATION. THE CREDIT AUTHORIZED BY  THIS  SUBSECTION  SHALL  BE
 EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-

 S. 604--A                           3
 
 TY  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE PURSUANT TO A CONTRACT FOR THE
 PROVISION OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT  SUCH
 CONTRACT  WAS  NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A OF THE
 EXECUTIVE  LAW  OR ANY OTHER PROVISION OF LAW MANDATING CONTRACTS WITH A
 MINORITY OR WOMEN-OWNED BUSINESS, AND THE TAXPAYER IS NOT A MINORITY  OR
 WOMEN-OWNED BUSINESS ENTERPRISE.  FURTHERMORE, THE AMOUNT OF SUCH CREDIT
 SHALL  NOT EXCEED THE LESSER OF FIFTEEN THOUSAND DOLLARS OR FIVE PERCENT
 OF ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX  YEAR  PURSUANT
 TO  CONTRACTS  WITH  GOVERNMENT  AGENCIES  FOR THE PROVISION OF GOODS OR
 SERVICES.  FOR COMPANIES WITH NO CONTRACTS WITH GOVERNMENT AGENCIES, THE
 AMOUNT OF THE CREDIT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS.
   (4) CARRYOVER. IF THE AMOUNT OF CREDIT PROVIDED BY THIS SUBSECTION FOR
 ANY TAXABLE YEAR EXCEEDS 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. This act shall take effect on the first of January next  succeed-
 ing  the date on which it shall have become a law and shall apply to tax
 years commencing on or after such date.

2021-S604B (ACTIVE) - Details

See Assembly Version of this Bill:: A7970
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6754
2013-2014: S37
2015-2016: S1114
2017-2018: S319
2019-2020: S845
2023-2024: A2719

2021-S604B (ACTIVE) - Summary

Establishes business franchise and personal income tax credits for a portion of the consideration paid under a contract with a minority or women-owned business.

2021-S604B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S604B

SPONSOR: BENJAMIN
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing business fran-
chise and personal income tax credits for certain businesses which
contract with the state or political subdivisions thereof and in unre-
lated contracts, also with minority and women-owned business enterprises

 
PURPOSE:

Establishes business franchise and personal income tax credits for a
portion of the consideration paid under a contract with a minority or
women-owned business.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 210-B the tax law by adding a new subdivision
28 creating a business franchise tax credit for businesses that contract
with both the state and, in a separate and unrelated transaction, with a

women or minority owned business. Sets a total amount of tax credits at
$5m/year.

Sections 2 and 3 establish a personal income tax credit for tax payers
who contract with both the state and, in a separate and unrelated trans-
action, with a women or minority owned business.

Section 4 establishes the effective date.

 
EXISTING LAW:

Current law does not provide incentive for private companies to contract
MWBEs.

 
JUSTIFICATION:

New York has been a longtime leader in the promotion of minority and
women owned business enterprises ("MWBEs"). The core goals of the
State's efforts are 1) equality of economic opportunities for MWBEs and
2) elimination of barriers to their participation in state contracts.
The problem is that the State has focused on the latter as the sole
means of achieving the former.

In order to help build fully self-sustaining minority and women owned
businesses, the State must also do its part to encourage private enti-
ties to contract with MWBEs. This legislation would incentivize the
private sector to build long-term business relationships with MWBEs by
offering business franchise and personal income tax credits for compa-
nies and individuals that contract with both MWBEs and the State. State
contracts are critical for initial growth, but insufficient for long-
term success. This legislation would help build grow existing MWBEs
while paving the way for the next generation.

 
LEGISLATIVE HISTORY:

2019-20: S845/A7008
2017-18: S319/A.2190
2015-2016: S.1114
2013-2014: S.37
2011-12: S.6754

 
FISCAL IMPLICATIONS:

Carries potential loss of state revenue of $5 million dollars.

 
LOCAL FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to tax years
commencing on or after such date.

2021-S604B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  604--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by Sen. BENJAMIN -- 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 business fran-
   chise and personal income tax credits  for  certain  businesses  which
   contract with the state or political subdivisions thereof and in unre-
   lated  contracts,  also  with minority and women-owned business enter-
   prises
 
   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 28 to read as follows:
   28. MINORITY AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT. (A)
 GENERAL. A TAXPAYER SHALL  BE  ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS
 PROVIDED  IN  THIS  SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE
 FOR A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR  WOMEN-
 OWNED  BUSINESS  ENTERPRISE  PURSUANT TO A CONTRACT FOR THE PROVISION OF
 GOODS OR SERVICES. THE CREDIT PROVIDED FOR IN THIS SUBDIVISION SHALL  BE
 ALLOWED  WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID
 TO THE MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
   (B) DEFINITIONS. FOR THE PURPOSES OF THIS SUBDIVISION,  THE  FOLLOWING
 TERMS SHALL MEAN:
   (I)  "GOVERNMENT  AGENCY" MEANS A STATE AGENCY OR A STATE AUTHORITY AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
 TIVE LAW, OR A POLITICAL SUBDIVISION AS DEFINED IN  SUBDIVISION  ONE  OF
 SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.
   (II)  "MINORITY  OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS A MINORITY-
 OWNED BUSINESS ENTERPRISE AS DEFINED IN  SUBDIVISION  SEVEN  OF  SECTION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD04914-03-1

 S. 604--B                           2
 
 THREE  HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS ENTER-
 PRISE AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN  OF
 THE EXECUTIVE LAW.
   (C)  COMPUTATION.  THE  CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL BE
 EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
 TY OR WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO  A  CONTRACT  FOR  THE
 PROVISION  OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT SUCH
 CONTRACT WAS NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A  OF  THE
 EXECUTIVE  LAW  OR ANY OTHER PROVISION OF LAW MANDATING CONTRACTS WITH A
 MINORITY OR WOMEN-OWNED BUSINESS, AND THE TAXPAYER IS NOT A MINORITY  OR
 WOMEN-OWNED BUSINESS ENTERPRISE.  FURTHERMORE, THE AMOUNT OF SUCH CREDIT
 SHALL  NOT EXCEED THE LESSER OF FIFTEEN THOUSAND DOLLARS OR FIVE PERCENT
 OF ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX  YEAR  PURSUANT
 TO  CONTRACTS  WITH  GOVERNMENT  AGENCIES  FOR THE PROVISION OF GOODS OR
 SERVICES.  FOR COMPANIES WITH NO CONTRACTS WITH GOVERNMENT AGENCIES, THE
 AMOUNT OF THE CREDIT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS.
   (D) CARRYOVER. IN NO EVENT SHALL THE CREDIT AUTHORIZED BY THIS  SUBDI-
 VISION  BE  ALLOWED  IN  AN AMOUNT WHICH SHALL 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.  PROVIDED,
 HOWEVER, THAT IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR
 ANY  TAXABLE  YEAR  REDUCES  THE  TAX  TO SUCH AMOUNT OR IF THE TAXPAYER
 OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM 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.
   (E) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SUBDIVISION
 AND SUBSECTION (NNN) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER  IN  ANY
 CALENDAR  YEAR  STATEWIDE SHALL BE FIVE MILLION DOLLARS.  SUCH AGGREGATE
 AMOUNT OF CREDITS SHALL BE ALLOCATED PURSUANT TO  RULES AND  REGULATIONS
 PROMULGATED BY THE COMMISSIONER.
   § 2. 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) MINORITY AND                  AMOUNT OF CREDIT
 WOMEN-OWNED BUSINESS                 UNDER SUBDIVISION
 EMPLOYMENT INCENTIVE                 TWENTY-EIGHT OF
 CREDIT UNDER                         SECTION TWO
 SUBSECTION (NNN)                     HUNDRED TEN-B
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (nnn) to read as follows:
   (NNN)  MINORITY  AND WOMEN-OWNED BUSINESS EMPLOYMENT INCENTIVE CREDIT.
 (1) GENERAL. A TAXPAYER SHALL BE ALLOWED A  CREDIT  TO  BE  COMPUTED  AS
 PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
 A CERTAIN PORTION OF THE CONSIDERATION PAID TO A MINORITY OR WOMEN-OWNED
 BUSINESS ENTERPRISE PURSUANT TO A CONTRACT FOR THE PROVISION OF GOODS OR
 SERVICES.    THE CREDIT PROVIDED FOR IN THIS SUBSECTION SHALL BE ALLOWED
 WITH RESPECT TO THE TAX YEAR IN WHICH THE CONSIDERATION IS PAID  TO  THE
 MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE.
   (2)  DEFINITIONS.  FOR  THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
 TERMS SHALL MEAN:
   (I) "GOVERNMENT AGENCY" MEANS A STATE AGENCY OR A STATE  AUTHORITY  AS
 DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED TEN OF THE EXECU-
 TIVE  LAW,  OR  A POLITICAL SUBDIVISION AS DEFINED IN SUBDIVISION ONE OF
 SECTION ONE HUNDRED OF THE GENERAL MUNICIPAL LAW.

 S. 604--B                           3
 
   (II) "MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE" MEANS  A  MINORITY-
 OWNED  BUSINESS  ENTERPRISE  AS  DEFINED IN SUBDIVISION SEVEN OF SECTION
 THREE HUNDRED TEN OF THE EXECUTIVE LAW OR A WOMEN-OWNED BUSINESS  ENTER-
 PRISE  AS DEFINED IN SUBDIVISION FIFTEEN OF SECTION THREE HUNDRED TEN OF
 THE EXECUTIVE LAW.
   (3)  COMPUTATION.  THE  CREDIT  AUTHORIZED BY THIS SUBSECTION SHALL BE
 EQUAL TO ONE-THIRD OF ALL EXPENDITURES PAID BY THE TAXPAYER TO A MINORI-
 TY OR WOMEN-OWNED BUSINESS ENTERPRISE PURSUANT TO  A  CONTRACT  FOR  THE
 PROVISION  OF GOODS AND SERVICES DURING THE TAX YEAR, PROVIDED THAT SUCH
 CONTRACT WAS NOT SUBJECT TO THE PROVISIONS OF ARTICLE FIFTEEN-A  OF  THE
 EXECUTIVE  LAW  OR ANY OTHER PROVISION OF LAW MANDATING CONTRACTS WITH A
 MINORITY OR WOMEN-OWNED BUSINESS, AND THE TAXPAYER IS NOT A MINORITY  OR
 WOMEN-OWNED BUSINESS ENTERPRISE.  FURTHERMORE, THE AMOUNT OF SUCH CREDIT
 SHALL  NOT EXCEED THE LESSER OF FIFTEEN THOUSAND DOLLARS OR FIVE PERCENT
 OF ALL CONSIDERATION PAID TO THE TAXPAYER DURING THE TAX  YEAR  PURSUANT
 TO  CONTRACTS  WITH  GOVERNMENT  AGENCIES  FOR THE PROVISION OF GOODS OR
 SERVICES.  FOR COMPANIES WITH NO CONTRACTS WITH GOVERNMENT AGENCIES, THE
 AMOUNT OF THE CREDIT SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS.
   (4) CARRYOVER. IF THE AMOUNT OF CREDIT PROVIDED BY THIS SUBSECTION FOR
 ANY TAXABLE YEAR EXCEEDS 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.
   (5) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS  SUBSECTION
 AND  SUBDIVISION TWENTY-EIGHT OF SECTION TWO HUNDRED TEN-B OF THIS CHAP-
 TER IN ANY CALENDAR YEAR STATEWIDE SHALL BE FIVE MILLION  DOLLARS.  SUCH
 AGGREGATE  AMOUNT  OF  CREDITS SHALL BE ALLOCATED PURSUANT TO RULES  AND
 REGULATIONS PROMULGATED BY THE COMMISSIONER.
   § 4. This act shall take effect on the first of January next  succeed-
 ing  the date on which it shall have become a law and shall apply to tax
 years commencing on or after such date.

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Senate Bill S604B

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Sponsored By

Brian Benjamin

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

Bill Amendments

2021-S604 - Details

2021-S604 - Summary

2021-S604 - Sponsor Memo

2021-S604 - Bill Text download pdf

2021-S604A - Details

2021-S604A - Summary

2021-S604A - Sponsor Memo

2021-S604A - Bill Text download pdf

2021-S604B (ACTIVE) - Details

2021-S604B (ACTIVE) - Summary

2021-S604B (ACTIVE) - Sponsor Memo

2021-S604B (ACTIVE) - Bill Text download pdf

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