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Sponsors
Senator · Senate District 59
2 Co-sponsors
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.712
- Reported and committed to finance
- Referred to energy and telecommunications
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.548
- Reported and committed to finance
- Referred to energy and telecommunications
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S1441
Title of bill
An act to amend the tax law, in relation to certain exemptions from sales and use taxes
Purpose
To incentivize manufacturing in New York while allowing businesses to make efficient use of their resources.
Summary of provisions
Section one amends paragraph 1 of subdivision (c) of section 1115 of the tax law, as amended by section 7 of part B of chapter 63 of the laws of 2000 by removing the words "directly and exclusively."
Section two provides for an immediate effective date.
Existing law
Energy must be used exclusively and directly for manufacturing in order to be excluded from sales and use taxation.
Justification
Currently, only energy that is used exclusively and directly for manufacturing is excluded from sales and use taxation. The purpose of this exclusion is to encourage manufacturers to locate in and produce goods in New York. However, the existing, law's strict limitations run counter to this goal. For example, lighting that is required for workers to see the machines they work on is not excluded from taxation.
The limitation also leads businesses to organize their operations in less than efficient ways. For example, the air conditioning costs to keep computer servers from overheating would no longer be excluded from taxation if a business were to also add a technician's desk into that room. Even though predominantly a manufacturing cost, the addition of one desk causes the air conditioning not to be an exclusively manufacturing expense. This leads to absurd workplace designs and an inefficient use of resources. By removing the exclusive and direct requirements, this bill incentivizes manufacturing in New York while still requiring that tax free energy actively contributes to the manufacturing of goods.
Legislative history
New bill
Fiscal implications
None
Local fiscal implications
None
Effective date
Immediate
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.