S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7692
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2023
                                ___________
 
 Introduced  by M. of A. ZACCARO -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  permitting  certain  tax deductions related to the sale,
   production, or distribution of cannabis products

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  (c)  of section 11-506 of the administrative
 code of the city of New York is amended by adding a new paragraph 13  to
 read as follows:
   (13)  FOR BUSINESSES AUTHORIZED PURSUANT TO THE CANNABIS LAW TO ENGAGE
 IN THE SALE, PRODUCTION,  OR  DISTRIBUTION  OF  (A)  ADULT-USE  CANNABIS
 PRODUCTS,  AS DEFINED IN ARTICLE TWENTY-C OF THE TAX LAW, OR (B) MEDICAL
 CANNABIS, AS DEFINED IN SECTION THREE OF THE CANNABIS LAW, THE AMOUNT OF
 ANY FEDERAL DEDUCTION DISALLOWED PURSUANT TO SECTION TWO HUNDRED  EIGHT-
 Y-E  OF  THE  INTERNAL  REVENUE CODE RELATED TO THE SALE, PRODUCTION, OR
 DISTRIBUTION OF SUCH ADULT-USE CANNABIS PRODUCTS OR SUCH MEDICAL  CANNA-
 BIS  NOT  USED  AS  THE BASIS FOR ANY OTHER TAX DEDUCTION, EXEMPTION, OR
 CREDIT AND NOT OTHERWISE REQUIRED TO BE ADDED BACK BY SUBDIVISION (B) OF
 THIS SECTION IN COMPUTING ENTIRE NET INCOME.
   § 2. Paragraph (a) of subdivision 8 of section 11-602 of the  adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 17 to read as follows:
   (17)  FOR  TAXPAYERS AUTHORIZED PURSUANT TO THE CANNABIS LAW TO ENGAGE
 IN THE SALE, PRODUCTION,  OR  DISTRIBUTION  OF  (I)  ADULT-USE  CANNABIS
 PRODUCTS, AS DEFINED IN ARTICLE TWENTY-C OF THE TAX LAW, OR (II) MEDICAL
 CANNABIS, AS DEFINED IN SECTION THREE OF THE CANNABIS LAW, THE AMOUNT OF
 ANY  FEDERAL DEDUCTION DISALLOWED PURSUANT TO SECTION TWO HUNDRED EIGHT-
 Y-E OF THE INTERNAL REVENUE CODE RELATED TO  THE  SALE,  PRODUCTION,  OR
 DISTRIBUTION  OF SUCH ADULT-USE CANNABIS PRODUCTS OR SUCH MEDICAL CANNA-
 BIS NOT USED AS THE BASIS FOR ANY OTHER  TAX  DEDUCTION,  EXEMPTION,  OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11715-01-3
              

 A. 7692                             2
 
 CREDIT  AND  NOT OTHERWISE REQUIRED TO BE ADDED BACK BY PARAGRAPH (B) OF
 THIS SUBDIVISION IN COMPUTING ENTIRE NET INCOME.
   §  3. Paragraph (a) of subdivision 8 of section 11-652 of the adminis-
 trative code of the city of New York is amended by adding a new subpara-
 graph 18 to read as follows:
   (18) FOR TAXPAYERS AUTHORIZED PURSUANT TO THE CANNABIS LAW  TO  ENGAGE
 IN  THE  SALE,  PRODUCTION,  OR  DISTRIBUTION  OF (I) ADULT-USE CANNABIS
 PRODUCTS, AS DEFINED IN ARTICLE TWENTY-SIX-C OF THE  TAX  LAW,  OR  (II)
 MEDICAL  CANNABIS,  AS DEFINED IN SECTION THREE OF THE CANNABIS LAW, THE
 AMOUNT OF ANY FEDERAL  DEDUCTION  DISALLOWED  PURSUANT  TO  SECTION  TWO
 HUNDRED  EIGHTY-E  OF  THE  INTERNAL  REVENUE  CODE RELATED TO THE SALE,
 PRODUCTION, OR DISTRIBUTION OF SUCH ADULT-USE CANNABIS PRODUCTS OR  SUCH
 MEDICAL  CANNABIS  NOT  USED  AS  THE BASIS FOR ANY OTHER TAX DEDUCTION,
 EXEMPTION, OR CREDIT AND NOT OTHERWISE REQUIRED  TO  BE  ADDED  BACK  BY
 PARAGRAPH (B) OF THIS SUBDIVISION IN COMPUTING ENTIRE NET INCOME.
   §  4.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after January  1,  2022.  This
 act shall apply to tax years beginning on or after January 1, 2022.