What's happening
This bill creates a tax credit for small businesses in New York with under 20 employees for business-related electricity usage.
Why it matters
Provides direct financial relief to the smallest businesses. , specifically those with 19 or fewer full-time equivalent employees (including affiliates/related members), helping to offset one of their core operating costs—electricity—which can be especially burdensome for small enterprises.
Targets businesses that do not already benefit from other major state economic development incentives. , ensuring the credit supports small firms that may otherwise be excluded from existing programs and are less able to negotiate lower utility rates or obtain other forms of state assistance.
Encourages transparency and accountability in claiming the credit. , as businesses must verify their electricity usage with official utility documentation and can only claim for usage clearly separated from non-business or shared electricity consumption, reducing the risk of abuse.
Allows unused credits to be refunded or credited for future tax years (but without interest). , making the benefit accessible even to businesses with low or no tax liability in a given year, which helps startups and struggling businesses manage cash flow.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Tax Credit for Small Businesses
Plain English, a few words. Used as the page title.
Sponsors
11 Co-sponsors
History
- Referred to ways and means
- Referred to ways and means
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3600
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
Introduced by M. of A. GUNTHER, SCHIMMINGER, LUPARDO, COLTON, CUSICK, ZEBROWSKI, PEOPLES-STOKES, JAFFEE, AUBRY, PERRY, RAIA -- Multi-Sponsored by -- M. of A. COOK, DAVILA, GOODELL, MOSLEY, ORTIZ, RIVERA -read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to a small business electric energy tax credit
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 53 to read as follows:
53. Small business electric energy tax credit. (a) A taxpayer that is eligible under the limitations specified in paragraph (b) of this subdivision shall be allowed a credit against the tax imposed by this article. The amount of the credit shall be equal to the product of two cents per kilowatt hour for all business related electricity usage at the taxpayer's primary business location.
(b) An eligible taxpayer shall (i) have no more than nineteen full time equivalent employees in New York state, including any related members or affiliates, (ii) not be a sole-proprietorship if such soleproprietor's primary business location is sited in or part of such soleproprietor's place of residence, (iii) not be certified pursuant to article eighteen-B of the general municipal law, and (iv) not be receiving any allocation or award pursuant to any program authorized under article six of the economic development law.
(c) (i) The term "business related electricity usage" shall refer to electrical power usage used to further the economic activity of the taxpayer at the primary business location that is clearly delimited from any shared electrical power usage cost. (ii) The term "primary business location" shall mean the physical site of the taxpayer within the state of New York where the majority of the taxpayer's economic activity is generated or coordinated through. (iii) The term "related members"
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00570-01-9
A. 3600 2
shall have the same meaning as set forth in clauses (A) and (B) of subparagraph one of paragraph (o) of subdivision nine of section two hundred eight of this article, and the term "affiliates" shall mean those corporations that are members of the same affiliated group (as defined in section fifteen hundred four of the internal revenue code) as the taxpayer.
(d) The eligible usage level shall be the total kilowatt hour usage of the taxpayer for business related electricity usage during the taxpayer's taxable year as verified through bills or other form of usage chart provided to the taxpayer by the taxpayer's electricity power service provider.
(e) In no event shall the credit provided for in this subdivision be allowed in an amount which will reduce the tax payable to less than the fixed dollar minimum amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section ten hundred eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section ten hundred eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
§ 2. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Small business electric energy tax credit. (1) A taxpayer that is eligible under the limitations specified in paragraph two of this subsection shall be allowed a credit against the tax imposed by this article. The amount of the credit shall be equal to the product (or pro rata share of the product in the case of a partnership) of two cents per kilowatt hour for all business related electricity usage at the taxpayer's primary business location.
(2) An eligible taxpayer shall (i) have no more than nineteen full time equivalent employees in New York state, including any related members or affiliates, (ii) shall not be a sole-proprietorship if such sole-proprietor's primary business location is sited in or part of such sole-proprietor's place of residence, (iii) not be certified pursuant to article eighteen-B of the general municipal law, and (iv) not be receiving any allocation or award pursuant to any program authorized under article six of the economic development law.
(3) (i) The term "business related electricity usage" shall refer to electrical power usage used to further the economic activity of the taxpayer at the primary business location that is clearly delimited from any shared electrical power usage cost. (ii) The term "primary business location" shall mean the physical site of the taxpayer within the state of New York where the majority of the taxpayer's economic activity is generated or coordinated through. (iii) The term "related members" shall have the same meaning as set forth in clauses (A) and (B) of subparagraph one of paragraph (o) of subdivision nine of section two hundred eight of this chapter, and the term "affiliates" shall mean those corporations that are members of the same affiliated group (as defined in section fifteen hundred four of the internal revenue code) as the taxpayer.
(4) The eligible usage level shall be the total kilowatt hour usage of the taxpayer for business related electricity usage during the taxpayer's taxable year as verified through bills or other form of usage chart
A. 3600 3
provided to the taxpayer by the taxpayer's electricity power service provider.
(5) If the amount of credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (xliv) Small business electric Qualifying electricity usage energy tax credit under subdivision fifty-three under subsection (jjj) of section two hundred ten-B
§ 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.