STATE OF NEW YORK ________________________________________________________________________ 6813 2019-2020 Regular Sessions IN ASSEMBLY March 20, 2019 ___________ Introduced by M. of A. CRESPO -- 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 Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 53 to read as follows: 3 53. Small business electric energy tax credit. (a) A taxpayer that is 4 eligible under the limitations specified in paragraph (b) of this subdi- 5 vision shall be allowed a credit against the tax imposed by this arti- 6 cle. The amount of the credit shall be equal to the product of two 7 cents per kilowatt hour for all business related electricity usage at 8 the taxpayer's primary business location up to a one thousand dollar 9 limit during the taxable year. 10 (b) An eligible taxpayer shall (i) have no more than nineteen full 11 time equivalent employees in New York state, including any related 12 members or affiliates, (ii) not be a sole-proprietorship if such sole- 13 proprietor's primary business location is sited in or part of such sole- 14 proprietor's place of residence, (iii) not be certified pursuant to 15 article eighteen-B of the general municipal law, and (iv) not be receiv- 16 ing any allocation or award pursuant to any program authorized under 17 article six of the economic development law. 18 (c) (i) The term "business related electricity usage" shall refer to 19 electrical power usage used to further the economic activity of the 20 taxpayer at the primary business location that is clearly delimited from 21 any shared electrical power usage cost. (ii) The term "primary business 22 location" shall mean the physical site of the taxpayer within the state 23 of New York where the majority of the taxpayer's economic activity is 24 generated or coordinated through. (iii) The term "related members" 25 shall have the same meaning as set forth in clauses (A) and (B) of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01640-01-9

A. 6813 2 1 subparagraph one of paragraph (o) of subdivision nine of section two 2 hundred eight of this article, and the term "affiliates" shall mean 3 those corporations that are members of the same affiliated group (as 4 defined in section fifteen hundred four of the internal revenue code) as 5 the taxpayer. 6 (d) The eligible usage level shall be the total kilowatt hour usage of 7 the taxpayer for business related electricity usage during the taxpay- 8 er's taxable year as verified through bills or other form of usage chart 9 provided to the taxpayer by the taxpayer's electricity power service 10 provider. 11 (e) The credit allowed under this subdivision for any taxable year 12 shall not reduce the tax due for such year to less than the higher of 13 the amounts prescribed in paragraph (d) of subdivision one of section 14 two hundred ten of this article. However, if the amount of credit 15 allowed under this subdivision for any taxable year reduces the tax to 16 such amount, any amount of credit not deductible in such taxable year 17 shall be treated as an overpayment of tax to be credited or refunded in 18 accordance with the provisions of section one thousand eighty-six of 19 this chapter. Provided, however, the provisions of subsection (c) of 20 section one thousand eighty-eight of this chapter notwithstanding, no 21 interest shall be paid thereon. 22 § 2. Section 606 of the tax law is amended by adding a new subsection 23 (jjj) to read as follows: 24 (jjj) Small business electric energy tax credit. (1) A taxpayer that 25 is eligible under the limitations specified in paragraph two of this 26 subsection shall be allowed a credit against the tax imposed by this 27 article. The amount of the credit shall be equal to the product (or pro 28 rata share of the product in the case of a partnership) of two cents per 29 kilowatt hour for all business related electricity usage at the taxpay- 30 er's primary business location up to a one thousand dollar limit during 31 the taxable year. 32 (2) An eligible taxpayer shall (i) have no more than nineteen full 33 time equivalent employees in New York state, including any related 34 members or affiliates, (ii) shall not be a sole-proprietorship if such 35 sole-proprietor's primary business location is sited in or part of such 36 sole-proprietor's place of residence, (iii) not be certified pursuant to 37 article eighteen-B of the general municipal law, and (iv) not be receiv- 38 ing any allocation or award pursuant to any program authorized under 39 article six of the economic development law. 40 (3) (i) The term "business related electricity usage" shall refer to 41 electrical power usage used to further the economic activity of the 42 taxpayer at the primary business location that is clearly delimited from 43 any shared electrical power usage cost. (ii) The term "primary business 44 location" shall mean the physical site of the taxpayer within the state 45 of New York where the majority of the taxpayer's economic activity is 46 generated or coordinated through. (iii) The term "related members" shall 47 have the same meaning as set forth in clauses (A) and (B) of subpara- 48 graph one of paragraph (o) of subdivision nine of section two hundred 49 eight of this chapter, and the term "affiliates" shall mean those corpo- 50 rations that are members of the same affiliated group (as defined in 51 section fifteen hundred four of the internal revenue code) as the 52 taxpayer. 53 (4) The eligible usage level shall be the total kilowatt hour usage of 54 the taxpayer for business related electricity usage during the taxpay- 55 er's taxable year as verified through bills or other form of usage chart

A. 6813 3 1 provided to the taxpayer by the taxpayer's electricity power service 2 provider. 3 (5) If the amount of credit allowed under this subsection for any 4 taxable year shall exceed the taxpayer's tax for such year, the excess 5 shall be treated as an overpayment of tax to be credited or refunded in 6 accordance with the provisions of section six hundred eighty-six of this 7 article, provided, however, that no interest shall be paid thereon. 8 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 9 of the tax law is amended by adding a new clause (xliv) to read as 10 follows: 11 (xliv) Small business electric Qualifying electricity usage 12 energy tax credit under subdivision fifty-three 13 under subsection (jjj) of section two hundred ten-B 14 § 4. This act shall take effect on the first of January next succeed- 15 ing the date on which it shall have become a law.

Creates a small business electric energy tax credit

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