What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Exempts insurance companies from tax credit deferrals; repealer
In Assembly Committee · Ways And Means · Sponsor Robin Schimminger
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S8511
Title of bill
An act to amend the tax law, in relation to exempting insurance compa- nies from the temporary deferral of tax credits and to repeal certain provisions of such law relating thereto
Purpose of the bill
To exempt the QEZE tax reduction credit for insurance companies (Article 33 taxpayers) from the temporary deferral of tax credits found in the 2010-2011 Revenue Bill, S.6610C/A.9710D.
Summary of specific provisions
§ 1-Removes the QEZE tax reduction credit from the list of tax credits subject to deferral pursuant to part Y of S.6610C/A.9710D as applied to Article 33 taxpayers.
§ 2-Removes the reference to Article 33 taxpayers and the applicable section of the tax law.
§ 3-Removes the provisions dealing with the calculation of the deferral of the tax credits which no longer apply to Article 33 taxpayers.
§ 4-Sets forth the effective date.
Justification
This bill ensures that insurance companies (Article 33 taxpayers) won't be severely harmed by the impact of the deferral of these credits by exempting them from the deferral provision. Insurance companies are required to follow the accounting principles prescribed by the NAIC (National Association of Insurance Companies) which is known as Statuto- ry Accounting. Insurance companies are required to utilize this basis of accounting in preparing their financial statements. This basis of accounting differs from the standard GAAP (Generally Accepted Accounting Principles) practice of accounting which all non insurance companies utilize to prepare their financial statements. Under statutory account- ing the deferral period for the tax credits is too long for the asset to be considered an admitted asset and therefore the amount deferred will be a direct reduction to surplus no matter how the deferral is recorded on the income statement. This direct reduction to surplus is a unique set of circumstances experienced only by insurance companies.
Prior legislative history
New bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall be deemed to have been in full force and effect on and after August 11, 2010.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.