STATE OF NEW YORK ________________________________________________________________________ 4646 2023-2024 Regular Sessions IN SENATE February 13, 2023 ___________ Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue 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 59 to read as follows: 3 59. 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. 9 (b) An eligible taxpayer shall (i) have no more than nineteen full 10 time equivalent employees in New York state, including any related 11 members or affiliates, (ii) not be a sole-proprietorship if such sole- 12 proprietor's primary business location is sited in or part of such sole- 13 proprietor's place of residence, (iii) not be certified pursuant to 14 article eighteen-B of the general municipal law, and (iv) not be receiv- 15 ing any allocation or award pursuant to any program authorized under 16 article six of the economic development law. 17 (c) (i) The term "business related electricity usage" shall refer to 18 electrical power usage used to further the economic activity of the 19 taxpayer at the primary business location that is clearly delimited from 20 any shared electrical power usage cost. (ii) The term "primary business 21 location" shall mean the physical site of the taxpayer within the state 22 of New York where the majority of the taxpayer's economic activity is 23 generated or coordinated through. (iii) The term "related members" 24 shall have the same meaning as set forth in clauses (A) and (B) of 25 subparagraph one of paragraph (o) of subdivision nine of section two EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09056-01-3

S. 4646 2 1 hundred eight of this article, and the term "affiliates" shall mean 2 those corporations that are members of the same affiliated group (as 3 defined in section fifteen hundred four of the internal revenue code) as 4 the taxpayer. 5 (d) The eligible usage level shall be the total kilowatt hour usage of 6 the taxpayer for business related electricity usage during the taxpay- 7 er's taxable year as verified through bills or other form of usage chart 8 provided to the taxpayer by the taxpayer's electricity power service 9 provider. 10 (e) In no event shall the credit provided for in this subdivision be 11 allowed in an amount which will reduce the tax payable to less than the 12 fixed dollar minimum amount prescribed in paragraph (d) of subdivision 13 one of section two hundred ten of this article. However, if the amount 14 of credit allowed under this subdivision for any taxable year reduces 15 the tax to such amount, any amount of credit not deductible in such 16 taxable year shall be treated as an overpayment of tax to be credited or 17 refunded in accordance with the provisions of section one thousand 18 eighty-six of this chapter. Provided, however, the provisions of 19 subsection (c) of section one thousand eighty-eight of this chapter 20 notwithstanding, no interest shall be paid thereon. 21 § 2. Section 606 of the tax law is amended by adding a new subsection 22 (ooo) to read as follows: 23 (ooo) Small business electric energy tax credit. (1) A taxpayer that 24 is eligible under the limitations specified in paragraph two of this 25 subsection shall be allowed a credit against the tax imposed by this 26 article. The amount of the credit shall be equal to the product (or pro 27 rata share of the product in the case of a partnership) of two cents per 28 kilowatt hour for all business related electricity usage at the taxpay- 29 er's primary business location. 30 (2) An eligible taxpayer shall (i) have no more than nineteen full 31 time equivalent employees in New York state, including any related 32 members or affiliates, (ii) shall not be a sole-proprietorship if such 33 sole-proprietor's primary business location is sited in or part of such 34 sole-proprietor's place of residence, (iii) not be certified pursuant to 35 article eighteen-B of the general municipal law, and (iv) not be receiv- 36 ing any allocation or award pursuant to any program authorized under 37 article six of the economic development law. 38 (3) (i) The term "business related electricity usage" shall refer to 39 electrical power usage used to further the economic activity of the 40 taxpayer at the primary business location that is clearly delimited from 41 any shared electrical power usage cost. (ii) The term "primary business 42 location" shall mean the physical site of the taxpayer within the state 43 of New York where the majority of the taxpayer's economic activity is 44 generated or coordinated through. (iii) The term "related members" shall 45 have the same meaning as set forth in clauses (A) and (B) of subpara- 46 graph one of paragraph (o) of subdivision nine of section two hundred 47 eight of this chapter, and the term "affiliates" shall mean those corpo- 48 rations that are members of the same affiliated group (as defined in 49 section fifteen hundred four of the internal revenue code) as the 50 taxpayer. 51 (4) The eligible usage level shall be the total kilowatt hour usage of 52 the taxpayer for business related electricity usage during the taxpay- 53 er's taxable year as verified through bills or other form of usage chart 54 provided to the taxpayer by the taxpayer's electricity power service 55 provider.

S. 4646 3 1 (5) If the amount of credit allowed under this subsection for any 2 taxable year shall exceed the taxpayer's tax for such year, the excess 3 shall be treated as an overpayment of tax to be credited or refunded in 4 accordance with the provisions of section six hundred eighty-six of this 5 article, provided, however, that no interest shall be paid thereon. 6 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 7 of the tax law is amended by adding a new clause (l) to read as follows: 8 (l) Small business electric Qualifying electricity usage 9 energy tax credit under subdivision fifty-nine 10 under subsection (ooo) of section two hundred ten-B 11 § 4. This act shall take effect immediately and shall apply to taxable 12 years beginning on or after January 1, 2023.

Creates a small business electric energy tax credit

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