What's happening
This bill creates tax credits for businesses that contract with minority or women-owned business enterprises for goods or services.
Why it matters
Encourages broader participation of minority and women-owned businesses (MWBEs). by offering financial incentives for companies to use MWBEs as suppliers or service providers, potentially helping these businesses grow and gain market share outside of government-mandated programs.
Targets private-sector contracts. not already covered by existing affirmative action laws, meaning the tax credits are designed to expand MWBE opportunities into areas where they may have been previously excluded or overlooked.
Limits the benefit to prevent excessive credits. by capping the total credit at 5% of the taxpayer’s government contract revenues, which aims to balance encouraging MWBE partnerships with preventing abuse of the incentive.
Excludes MWBEs themselves from claiming the credit. for their own purchases, ensuring the incentive specifically drives new partnerships between non-MWBE firms and MWBEs, rather than simply subsidizing existing MWBE operations.
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Tax Breaks for MWBE Contracts
Plain English, a few words. Used as the page title.
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History
- Referred to ways and means
- Referred to ways and means
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Tax Credits for MWBE Contracts
In Senate Committee · Investigations And Government Operations · Sponsor José Peralta
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2190
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. PEOPLES-STOKES -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing business franchise and personal income tax credits for certain businesses which contract with the state or political subdivisions thereof and in unrelated contracts, also with minority and women-owned business enterprises
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 28 to read as follows:
28. Minority and women-owned business employment incentive credit. (a) General. A taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article for a certain portion of the consideration paid to a minority or womenowned business enterprise pursuant to a contract for the provision of goods or services. The credit provided for in this subdivision shall be allowed with respect to the tax year in which the consideration is paid to the minority or women-owned business enterprise.
(b) Definitions. For the purposes of this subdivision, the following terms shall mean:
(i) "Government agency" means a state agency or a state authority as defined in subdivision eleven of section three hundred ten of the executive law, or a political subdivision as defined in subdivision one of section one hundred of the general municipal law.
(ii) "Minority or women-owned business enterprise" means a minorityowned business enterprise as defined in subdivision seven of section three hundred ten of the executive law or a women-owned business enterprise as defined in subdivision fifteen of section three hundred ten of the executive law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00044-01-7
A. 2190 2
(c) Computation. The credit authorized by this subdivision shall be equal to one-third of all expenditures paid by the taxpayer to a minority or women-owned business enterprise pursuant to a contract for the provision of goods and services during the tax year, provided that such contract was not subject to the provisions of article fifteen-A of the executive law or any other provision of law relating to the affirmative action, and the taxpayer is not a minority or women-owned business enterprise. Furthermore, the amount of such credit shall not exceed five percent of all consideration paid to the taxpayer during the tax year pursuant to contracts with government agencies for the provision of goods or services.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliii) to read as follows: (xliii) Minority and Amount of credit women-owned business under subdivision employment incentive twenty-eight of credit under section two subsection (ccc) hundred ten-B
§ 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Minority and women-owned business employment incentive credit. (1) General. A taxpayer shall be allowed a credit to be computed as provided in this subsection, against the tax imposed by this article for a certain portion of the consideration paid to a minority or women-owned business enterprise pursuant to a contract for the provision of goods or services. The credit provided for in this subsection shall be allowed with respect to the tax year in which the consideration is paid to the minority or women-owned business enterprise.
(2) Definitions. For the purposes of this subsection, the following terms shall mean:
(i) "Government agency" means a state agency or a state authority as defined in subdivision eleven of section three hundred ten of the executive law, or a political subdivision as defined in subdivision one of section one hundred of the general municipal law.
(ii) "Minority or women-owned business enterprise" means a minorityowned business enterprise as defined in subdivision seven of section three hundred ten of the executive law or a women-owned business enterprise as defined in subdivision fifteen of section three hundred ten of the executive law.
(3) Computation. The credit authorized by this subsection shall be equal to one-third of all expenditures paid by the taxpayer to a minority or women-owned business enterprise pursuant to a contract for the provision of goods and services during the tax year, provided that such contract was not subject to the provisions of article fifteen-A of the executive law or any other provision of law relating to affirmative action, and the taxpayer is not a minority or women-owned business enterprise. Furthermore, the amount of such credit shall not exceed five percent of all consideration paid to the taxpayer during the tax year pursuant to contracts with government agencies for the provision of goods or services.
§ 4. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to tax years commencing on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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