What's happening
This bill creates a tax credit for businesses that purchase materials from companies within a fifteen-mile radius of their location.
Why it matters
Encourages hyper-local supply chains. By offering a tax credit for materials purchased within a fifteen-mile radius, the bill incentivizes businesses to source inputs from nearby companies, potentially strengthening local economies and fostering business-to-business relationships within communities.
Supports local job creation and retention. Increased demand for local materials could help sustain or grow employment at small and medium-sized suppliers, as businesses may shift purchasing away from distant or out-of-state suppliers to qualify for the credit.
Limits financial risk for the state. The bill specifies that any unused portion of the tax credit cannot be carried forward to future years and that overpayments will not accrue interest, which helps control the long-term fiscal impact on state revenues.
Environmental and logistical benefits. Shorter supply chains can reduce transportation distances, potentially lowering greenhouse gas emissions and transportation costs, while also increasing resiliency against supply chain disruptions.
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Who cares
Headline styles
Tax Credit for Buying Local
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
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2374
2017-2018 Regular Sessions
IN ASSEMBLY
January 18, 2017
Introduced by M. of A. LENTOL -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to authorizing a local material tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 43 to read as follows:
§ 43. Local material credit. (a) Allowance of credit. A taxpayer that purchases materials from companies located within a fifteen mile radius of such taxpayer's business, and that is subject to tax under article nine-A or twenty-two of this chapter, shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (b) of this section, equal to ten percent of the total receipts from the purchase of materials from companies located within a fifteen mile radius of such taxpayer's business.
(b) Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter:
(1) article 9-A: section 210-B: subdivision 49.
(2) article 22: section 606: subsection (ccc).
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 49 to read as follows:
49. Local material credit. (a) Allowance of credit. A taxpayer that is eligible pursuant to section forty-three of this chapter shall be allowed a credit to be computed as provided in such section forty-three of this chapter against the tax imposed by this article.
(b) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. Provided, however, that if the amount of the credit allowable under this subdivision for any taxable
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03423-01-7
A. 2374 2
year reduces the tax to such amount, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon. The balance of such credit not credited or refunded in such taxable year may not be carried over to any succeeding taxable year.
§ 3. 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) Credit for companies that Amount of credit under purchase local materials subdivision forty-nine of under subsection (ccc) section two hundred ten-B
§ 4. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Local material credit. (1) Allowance of credit. A taxpayer that is eligible pursuant to section forty-three of this chapter shall be allowed a credit to be computed as provided in such section forty-three of this chapter against the tax imposed by this article.
(2) Application of credit. The credit allowed under this subsection for any taxable year shall not reduce the tax due for such year to less than the amount prescribed in section six hundred two of this part. Provided, however, that if the amount of the credit allowable under this subsection for any taxable year reduces the tax to such amount, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon. The balance of such credit not credited or refunded in such taxable year may not be carried over to any succeeding taxable year.
§ 5. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2017.
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