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History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.888
- Reported and committed to finance
- Referred to investigations and government operations
- Print number 4990a
- Amend (t) and recommit to investigations and government operations
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4990A
Title of bill
An act to amend the tax law, in relation to an investment tax credit
Purpose or general idea of bill
To provide technical corrections to Part YY-1 of the 2008-2009 Education, Labor and Family Assistance Article VII Budget Bill, in order for the Investment Tax Credit to continue to retain and grow the financial services industry in New York and to make it competitive with other states.
Summary of specific provisions
Sections 1-3: Expands the investment tax credit (ITC) definition of investment advisory activity so that investment advisory services beyond those provided to Regulated Investment Companies (i.e., mutual funds) will qualify for the ITC. The expanded definition reflects changes in the business model that have occurred since the ITC was originally enacted in 1998.
Section 4: Effective Date
Justification
In 2008 the Legislature extended the ITC and made two technical changes to the law. The first allowed a financial services taxpayer to aggregate its broker/dealer and investment advisory activities in determining whether property qualifies for the ITC (in order to achieve more than 50% of use requirement). The second revised eligibility requirements pertaining to the location of employees.
However, in order for the ITC to have its intended economic impact, the definition of "investment advisory activity" must be updated to reflect current business activities. In 1998 when the ITC was first enacted, investment advisory services were primarily provided to Regulated Investment Companies (i,e, mutual funds). The business has grown since then to advising pension funds and endowments among others.
By enacting this legislation into law, the financial services industry will be prepared to expand and grow in New York. Facilities planning that are currently taking place can consider New York State as competitive with other states that have more favorable tax treatment.
Prior legislative history
New Bill.
Fiscal implications for state and local governments
This bill will ultimately result in increased revenue to the state and city of New York as high paying jobs are created and maintained in New York.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.