S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2719
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
   Committee on Ways and Means
 
 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.
                                                            LBD01872-01-3
 A. 2719                             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 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  (OOO) 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  (xlx)  to  read  as
 follows:
 (XLX) MINORITY AND                   AMOUNT OF CREDIT
 WOMEN-OWNED BUSINESS                 UNDER SUBDIVISION
 EMPLOYMENT INCENTIVE                 TWENTY-EIGHT OF
 CREDIT UNDER                         SECTION TWO
 SUBSECTION (OOO)                     HUNDRED TEN-B
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (ooo) to read as follows:
   (OOO) 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-
 A. 2719                             3
 
 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.