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History
- Referred 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:S5240
Title of bill
An act to amend the tax law, in relation to the definition of "entire net income"
Purpose
To create an accelerated depreciation schedule for companies in an incubator and for two years after graduation
Summary of provisions
Section 1. Amends paragraph (a) of subdivision 9 of section 208 of the tax law by adding a new paragraph (19) to allow a company a five year period from he time it is a client in an incubator and for two years after graduation to take accelerated depreciation matching the federal straight line or bonus depreciation schedules, or to take 100% depreciation in the year in which the property is placed in service. A taxpayer who takes the 100% depreciation schedule cannot take any other, and if the property is disposed of prior to the end of its useful life, the taxpayer must repay what would otherwise be the remaining depreciation.
Section 2. Amend paragraph (o) of subdivision 9 of section 208 of the tax law to conform
Existing law
New bill.
Justification
New York currently only allows straight line depreciation on property, and the schedule tracks the federal 167 of the IRC. This legislation broadens the opportunities for companies which are in an incubator, or have just graduated, and are moving into the community. This is a difficult financial time for most companies, as they have begun to have transactions, but are still not financially well-off. Allowing for an adjustment in the purchase of necessary equipment, or land or buildings will help these companies make the adjustment, and may tend to help keep them in New York.
Fiscal implications
To be determined.
Effective date
Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.