Bill Text: NY S00543 | 2023-2024 | General Assembly | Amended

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Bill Title: Relates to treatment of gains from qualified opportunity zones in calculating taxable income; removes exclusion of gains on property in qualified opportunity zones in calculation of income.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed) 2024-05-13 - referred to ways and means [S00543 Detail]

Download: New_York-2023-S00543-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         543--B
            Cal. No. 904

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 5, 2023
                                       ___________

        Introduced  by  Sens.  GIANARIS, HOYLMAN-SIGAL, KRUEGER, SALAZAR -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee  on  Budget  and  Revenue -- recommitted to the Committee on
          Budget and Revenue in accordance with Senate Rule 6, sec. 8 -- commit-
          tee discharged, bill amended, ordered reprinted as amended and  recom-
          mitted to said committee -- reported favorably from said committee and
          committed  to the Committee on Finance -- reported favorably from said
          committee, ordered to first report, amended on first  report,  ordered
          to  a  second report and ordered reprinted, retaining its place in the
          order of second report

        AN ACT to amend the tax law and the administrative code of the  city  of
          New York, in relation to treatment of gains from qualified opportunity
          zones in calculating taxable income

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1.  Paragraph (b) of subdivision 9 of section 208 of  the  tax
     2  law is amended by adding a new subparagraph 28 to read as follows:
     3    (28)  the  amount  of  gain excluded from federal gross income for the
     4  taxable year by subparagraph (C) of paragraph (1) of subsection  (a)  of
     5  section 1400Z-2 of the internal revenue code.
     6    §  2. Subdivision 9 of section 208 of the tax law is amended by adding
     7  a new paragraph (u) to read as follows:
     8    (u) For tax years beginning on or after January  first,  two  thousand
     9  twenty-four, upon the sale or exchange of property with respect to which
    10  the  taxpayer  has made the election under subparagraph (C) of paragraph
    11  (1) of subsection (a) of section 1400Z-2 of the internal  revenue  code,
    12  the  basis of such property under this article shall be determined as if
    13  the taxpayer had not made such election.
    14    § 3. Subsection (b) of section 612 of the tax law is amended by adding
    15  a new paragraph 44 to read as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01221-04-4
        S. 543--B                           2

     1    (44) the amount of gain excluded from federal  gross  income  for  the
     2  taxable  year  by subparagraph (C) of paragraph (1) of subsection (a) of
     3  section 1400Z-2 of the internal revenue code.
     4    §  4. Section 612 of the tax law is amended by adding a new subsection
     5  (y) to read as follows:
     6    (y) Qualified opportunity zones.  For tax years beginning on or  after
     7  January  first,  two  thousand twenty-four, upon the sale or exchange of
     8  property with respect to which the taxpayer has made the election  under
     9  subparagraph  (C)  of paragraph (1) of subsection (a) of section 1400Z-2
    10  of the internal revenue code, the basis  of  such  property  under  this
    11  article  shall  be  determined  as  if  the  taxpayer  had not made such
    12  election.
    13    § 5. Paragraph 2 of subdivision (b) of section 1503 of the tax law  is
    14  amended by adding a new subparagraph (AA) to read as follows:
    15    (AA)    the  amount of gain excluded from federal gross income for the
    16  taxable year by subparagraph (C) of paragraph (1) of subsection  (a)  of
    17  section 1400Z-2 of the internal revenue code.
    18    §  6.  Section 1503 of the tax law is amended by adding a new subdivi-
    19  sion (d) to read as follows:
    20    (d) For tax years beginning on or after January  first,  two  thousand
    21  twenty-four, upon the sale or exchange of property with respect to which
    22  the  taxpayer  has made the election under subparagraph (C) of paragraph
    23  (1) of subsection (a) of section 1400Z-2 of the internal  revenue  code,
    24  the  basis of such property under this article shall be determined as if
    25  the taxpayer had not made such election.
    26    § 7. Paragraph (b) of subdivision 8 of section 11-602 of the  adminis-
    27  trative code of the city of New York is amended by adding a new subpara-
    28  graph 23 to read as follows:
    29    (23)  the  amount  of  gain excluded from federal gross income for the
    30  taxable year by subparagraph (C) of paragraph (1) of subsection  (a)  of
    31  section 1400Z-2 of the internal revenue code.
    32    § 8. Section 11-602 of the administrative code of the city of New York
    33  is amended by adding a new subdivision 11 to read as follows:
    34    11.  For  tax  years beginning on or after January first, two thousand
    35  twenty-four, upon the sale or exchange of property with respect to which
    36  the taxpayer has made the election under subparagraph (C)  of  paragraph
    37  (1)  of  subsection (a) of section 1400Z-2 of the internal revenue code,
    38  the basis of such property under this article shall be determined as  if
    39  the taxpayer had not made such election.
    40    §  9. Paragraph (b) of subdivision 8 of section 11-652 of the adminis-
    41  trative code of the city of New York is amended by adding a new subpara-
    42  graph 24 to read as follows:
    43    (24) the amount of gain excluded from federal  gross  income  for  the
    44  taxable  year  by subparagraph (C) of paragraph (1) of subsection (a) of
    45  section 1400Z-2 of the internal revenue code.
    46    § 10. Subdivision 8 of section 11-652 of the  administrative  code  of
    47  the city of New York is amended by adding a new paragraph (u) to read as
    48  follows:
    49    (u)  For  tax  years beginning on or after January first, two thousand
    50  twenty-four, upon the sale or exchange of property with respect to which
    51  the taxpayer has made the election under subparagraph (C)  of  paragraph
    52  (1)  of  subsection (a) of section 1400Z-2 of the internal revenue code,
    53  the basis of such property under this article shall be determined as  if
    54  the taxpayer had not made such election.
        S. 543--B                           3

     1    § 11. Subdivision (b) of section 11-1712 of the administrative code of
     2  the  city of New York is amended by adding a new paragraph 40 to read as
     3  follows:
     4    (40)  the  amount  of  gain excluded from federal gross income for the
     5  taxable year by subparagraph (C) of paragraph (1) of subsection  (a)  of
     6  section 1400Z-2 of the internal revenue code.
     7    §  12.  Section  11-1712 of the administrative code of the city of New
     8  York is amended by adding a new subdivision (w) to read as follows:
     9    (w) For tax years beginning on or after January  first,  two  thousand
    10  twenty-four, upon the sale or exchange of property with respect to which
    11  the  taxpayer  has made the election under subparagraph (C) of paragraph
    12  (1) of subsection (a) of section 1400Z-2 of the internal  revenue  code,
    13  the  basis of such property under this article shall be determined as if
    14  the taxpayer had not made such election.
    15    § 13. This act shall take effect immediately and shall apply to  taxa-
    16  ble years beginning on or after January 1, 2024.