S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2664
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 a combat veter-
   an tax credit for entrepreneurs
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The tax law is amended by adding a new section 48 to read
 as follows:
   § 48.  COMBAT VETERAN ENTREPRENEUR CREDIT. (A) ALLOWANCE OF CREDIT.  A
 COMBAT  VETERAN  ENTREPRENEUR,  WHICH  IS  SUBJECT  TO TAX UNDER ARTICLE
 NINE-A OR TWENTY-TWO OF THIS CHAPTER AND CREATES A NEW  BUSINESS,  SHALL
 BE  ALLOWED A CREDIT AGAINST SUCH TAX. THE CREDIT SHALL BE EQUAL TO FIVE
 HUNDRED DOLLARS.  THE TOTAL AMOUNT OF CREDIT TO  BE  PROVIDED  STATEWIDE
 SHALL NOT EXCEED FIVE MILLION DOLLARS IN A TAXABLE YEAR.
   (B)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1) "COMBAT VETERAN" SHALL MEAN ANY INDIVIDUAL WHO IS  A  RESIDENT  OF
 THIS  STATE  WHO  HAS SERVED IN THE ARMED FORCES OF THE UNITED STATES IN
 HOSTILITIES THAT OCCURRED AFTER DECEMBER SIXTH, NINETEEN HUNDRED  FORTY-
 FIVE,  AS  EVIDENCED  BY  THEIR RECEIPT OF AN ARMED FORCES EXPEDITIONARY
 MEDAL, NAVY EXPEDITIONARY MEDAL, OR MARINE CORPS EXPEDITIONARY MEDAL AND
 WHO WAS DISCHARGED UNDER HONORABLE CONDITIONS, INCLUDING BUT NOT LIMITED
 TO HONORABLE DISCHARGE, DISCHARGE UNDER HONORABLE CONDITIONS, OR GENERAL
 DISCHARGE.
   (2) "ENTREPRENEUR" SHALL MEAN ANY PERSON WHO ORGANIZES AND OPERATES  A
 BUSINESS OR BUSINESSES.
   (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 28.
   (2) ARTICLE 22: SECTION 606, SUBSECTION (A-3).
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04394-01-3
 S. 2664                             2
              

 
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 28 to read as follows:
   28.  COMBAT  VETERAN  ENTREPRENEUR CREDIT. (A) ALLOWANCE OF CREDIT.  A
 COMBAT VETERAN ENTREPRENEUR WILL BE ALLOWED A CREDIT, TO BE COMPUTED  AS
 PROVIDED IN SECTION FORTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED
 BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
 THAN  THE  HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPH (D) OF SUBDIVI-
 SION 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 THUS NOT DEDUCTIBLE
 IN SUCH TAXABLE YEAR WILL 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 WILL BE PAID THEREON.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (a-3) to read as follows:
   (A-3)  COMBAT VETERAN ENTREPRENEUR CREDIT. (1) A COMBAT VETERAN ENTRE-
 PRENEUR WILL BE ALLOWED A CREDIT, TO THE EXTENT  ALLOWED  UNDER  SECTION
 FORTY-EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS WILL 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 WILL BE
 PAID THEREON.
   § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of the tax law is amended by adding a new clause (l) to read as follows:
 (L) COMBAT VETERAN ENTREPRENEUR      AMOUNT OF CREDIT UNDER
 CREDIT UNDER SUBSECTION (A-3)        SUBDIVISION TWENTY-EIGHT OF
                                      SECTION TWO HUNDRED TEN-B
   § 5. This act shall take effect immediately and shall apply to taxable
 years commencing on and after January 1, 2023.