S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    543
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced by Sens. GIANARIS, KRUEGER -- read twice and ordered printed,
   and when printed to be committed to the Committee on Budget and Reven-
   ue
 
 AN  ACT  to amend the tax law and the administrative code of the city of
   New York, in relation to treatment of gains from qualified opportunity
   zones in calculating taxable income

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.   Paragraph (b) of subdivision 9 of section 208 of the tax
 law is amended by adding a new subparagraph 28 to read as follows:
   (28) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 2. Subdivision 9 of section 208 of the tax law is amended by  adding
 a new paragraph (u) to read as follows:
   (U)  FOR  TAX  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-THREE, UPON THE SALE OR EXCHANGE  OF  PROPERTY  WITH  RESPECT  TO
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH  (1)  OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE
 CODE, THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE  DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 3. Subsection (b) of section 612 of the tax law is amended by adding
 a new paragraph 44 to read as follows:
   (44)  THE  AMOUNT  OF  GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  4. Section 612 of the tax law is amended by adding a new subsection
 (y) to read as follows:
   (Y) QUALIFIED OPPORTUNITY ZONES.  FOR TAX YEARS BEGINNING ON OR  AFTER
 JANUARY  FIRST,  TWO THOUSAND TWENTY-THREE, UPON THE SALE OR EXCHANGE OF
 PROPERTY WITH RESPECT TO WHICH THE TAXPAYER HAS MADE THE ELECTION  UNDER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01221-01-3
              

 S. 543                              2
 
 SUBPARAGRAPH  (C)  OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2
 OF THE INTERNAL REVENUE CODE, THE BASIS  OF  SUCH  PROPERTY  UNDER  THIS
 ARTICLE  SHALL  BE  DETERMINED  AS  IF  THE  TAXPAYER  HAD NOT MADE SUCH
 ELECTION.
   §  5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
 amended by adding a new subparagraph (AA) to read as follows:
   (AA)  THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 6. Section 1503 of the tax law is amended by adding a  new  subdivi-
 sion (d) to read as follows:
   (D)  FOR  TAX  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-THREE, UPON THE SALE OR EXCHANGE  OF  PROPERTY  WITH  RESPECT  TO
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH  (1)  OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE
 CODE, THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE  DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   §  7. 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) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 8. Section 11-602 of the administrative code of the city of New York
 is amended by adding a new subdivision 11 to read as follows:
   11. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-THREE,  UPON  THE  SALE  OR  EXCHANGE OF PROPERTY WITH RESPECT TO
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE  INTERNAL  REVENUE
 CODE,  THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 9. 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)  THE  AMOUNT  OF  GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  10.  Subdivision  8 of section 11-652 of the administrative code of
 the city of New York is amended by adding a new paragraph (u) to read as
 follows:
   (U) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-THREE,  UPON  THE  SALE  OR  EXCHANGE OF PROPERTY WITH RESPECT TO
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE  INTERNAL  REVENUE
 CODE,  THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 11. Subdivision (b) of section 11-1712 of the administrative code of
 the city of New York is amended by adding a new paragraph 40 to read  as
 follows:
   (40)  THE  AMOUNT  OF  GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  12.  Section  11-1712 of the administrative code of the city of New
 York is amended by adding a new subdivision (w) to read as follows:
   (W) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-THREE,  UPON  THE  SALE  OR  EXCHANGE OF PROPERTY WITH RESPECT TO
 S. 543                              3
 
 WHICH THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARA-
 GRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE  INTERNAL  REVENUE
 CODE,  THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED
 AS IF THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   §  13. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on or after January 1, 2023.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  543--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by  Sens. GIANARIS, HOYLMAN-SIGAL, KRUEGER -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Budget  and  Revenue  --  recommitted  to  the Committee on Budget and
   Revenue in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the tax law and the administrative code of the city of
   New York, in relation to treatment of gains from qualified opportunity
   zones in calculating taxable income
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.   Paragraph (b) of subdivision 9 of section 208 of the tax
 law is amended by adding a new subparagraph 28 to read as follows:
   (28) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 2. Subdivision 9 of section 208 of the tax law is amended by  adding
 a new paragraph (u) to read as follows:
   (U)  FOR  TAX  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-FOUR, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
 THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C)  OF  PARAGRAPH
 (1)  OF  SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
 THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS  IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 3. Subsection (b) of section 612 of the tax law is amended by adding
 a new paragraph 44 to read as follows:
   (44)  THE  AMOUNT  OF  GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  4. Section 612 of the tax law is amended by adding a new subsection
 (y) to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01221-02-3
              

 S. 543--A                           2
 
   (Y) QUALIFIED OPPORTUNITY ZONES.  FOR TAX YEARS BEGINNING ON OR  AFTER
 JANUARY  FIRST,  TWO  THOUSAND TWENTY-FOUR, UPON THE SALE OR EXCHANGE OF
 PROPERTY WITH RESPECT TO WHICH THE TAXPAYER HAS MADE THE ELECTION  UNDER
 SUBPARAGRAPH  (C)  OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2
 OF  THE  INTERNAL  REVENUE  CODE,  THE BASIS OF SUCH PROPERTY UNDER THIS
 ARTICLE SHALL BE DETERMINED  AS  IF  THE  TAXPAYER  HAD  NOT  MADE  SUCH
 ELECTION.
   §  5. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
 amended by adding a new subparagraph (AA) to read as follows:
   (AA)  THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 6. Section 1503 of the tax law is amended by adding a  new  subdivi-
 sion (d) to read as follows:
   (D)  FOR  TAX  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-FOUR, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
 THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C)  OF  PARAGRAPH
 (1)  OF  SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
 THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS  IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   §  7. 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) THE AMOUNT OF GAIN EXCLUDED FROM FEDERAL  GROSS  INCOME  FOR  THE
 TAXABLE  YEAR  BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION (A) OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   § 8. Section 11-602 of the administrative code of the city of New York
 is amended by adding a new subdivision 11 to read as follows:
   11. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-FOUR, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
 THE  TAXPAYER  HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
 (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL  REVENUE  CODE,
 THE  BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 9. 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)  THE  AMOUNT  OF  GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
   §  10.  Subdivision  8 of section 11-652 of the administrative code of
 the city of New York is amended by adding a new paragraph (u) to read as
 follows:
   (U) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND
 TWENTY-FOUR, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
 THE  TAXPAYER  HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C) OF PARAGRAPH
 (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL  REVENUE  CODE,
 THE  BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   § 11. Subdivision (b) of section 11-1712 of the administrative code of
 the city of New York is amended by adding a new paragraph 40 to read  as
 follows:
   (40)  THE  AMOUNT  OF  GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE
 TAXABLE YEAR BY SUBPARAGRAPH (C) OF PARAGRAPH (1) OF SUBSECTION  (A)  OF
 SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE.
 S. 543--A                           3
 
   §  12.  Section  11-1712 of the administrative code of the city of New
 York is amended by adding a new subdivision (w) to read as follows:
   (W)  FOR  TAX  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-FOUR, UPON THE SALE OR EXCHANGE OF PROPERTY WITH RESPECT TO WHICH
 THE TAXPAYER HAS MADE THE ELECTION UNDER SUBPARAGRAPH (C)  OF  PARAGRAPH
 (1)  OF  SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE,
 THE BASIS OF SUCH PROPERTY UNDER THIS ARTICLE SHALL BE DETERMINED AS  IF
 THE TAXPAYER HAD NOT MADE SUCH ELECTION.
   §  13. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on or after January 1, 2024.