Bill Text: NY S01894 | 2009-2010 | General Assembly | Introduced
Bill Title: Enacts the medical malpractice insurance premium credit act; provides a tax credit for a percentage of medical malpractice premiums paid by such taxpayer; defines relevant terms.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S01894 Detail]
Download: New_York-2009-S01894-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
1894
2009-2010 Regular Sessions
I N S E N A T E
February 9, 2009
___________
Introduced by Sens. KLEIN, STEWART-COUSINS, VALESKY -- read twice and
ordered printed, and when printed to be committed to the Committee on
Investigations and Government Operations
AN ACT to amend the tax law, in relation to enacting the medical malp-
ractice insurance premiums credit act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "medical malpractice insurance premiums credit act".
3 S 2. Section 210 of the tax law is amended by adding a new subdivision
4 25-b to read as follows:
5 25-B. CREDIT FOR MEDICAL MALPRACTICE INSURANCE PREMIUMS. (A) AS USED
6 IN THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
7 INGS: (1) "MEDICAL MALPRACTICE INSURANCE" MEANS INSURANCE AGAINST LEGAL
8 LIABILITY OF THE INSURED, AND AGAINST LOSS, DAMAGE, OR EXPENSE INCIDENT
9 TO A CLAIM OF SUCH LIABILITY ARISING OUT OF THE DEATH OR INJURY OF ANY
10 PERSON DUE TO MEDICAL, DENTAL, PODIATRIC, CERTIFIED NURSE-MIDWIFERY OR
11 HOSPITAL MALPRACTICE BY ANY LICENSED PHYSICIAN, DENTIST, PODIATRIST,
12 CERTIFIED NURSE-MIDWIFE, CERTIFIED REGISTERED NURSE ANESTHETIST OR
13 HOSPITAL.
14 (2) "QUALIFIED PREMIUMS" SHALL INCLUDE ALL PREMIUMS PAID BY THE
15 TAXPAYER DURING THE CURRENT TAX YEAR ON ALL MEDICAL MALPRACTICE INSUR-
16 ANCE POLICIES WHOSE PREMIUMS ARE REGULATED AND ESTABLISHED BY THE NEW
17 YORK STATE DEPARTMENT OF INSURANCE WITH THE EXCEPTION OF PREMIUMS PAID
18 TO THE NEW YORK MEDICAL MALPRACTICE INSURANCE PLAN AS ESTABLISHED BY
19 SUCH DEPARTMENT UNDER REGULATION 170 (11 NYCRR 430).
20 (3) "QUALIFIED INCOME" SHALL INCLUDE ALL NET RECEIPTS THE TAXPAYER
21 DERIVES FROM ACTIVITIES COVERED BY THE MALPRACTICE POLICY FOR WHICH THE
22 QUALIFIED PREMIUMS ARE PAID.
23 (B) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
24 THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF THE AMOUNT BY WHICH ANNUAL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02634-01-9
S. 1894 2
1 QUALIFIED PREMIUMS EXCEED TEN PERCENT OF THE TAXPAYER'S QUALIFIED INCOME
2 FOR THE CURRENT YEAR, NOT TO EXCEED THE LESSER OF THE TAXPAYER'S CURRENT
3 YEAR TAX LIABILITY OR TWENTY-FIVE THOUSAND DOLLARS. THE CREDIT SHALL BE
4 CLAIMED AFTER THE ALLOWANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAP-
5 TER.
6 (C) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY YEAR SHALL NOT
7 REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS
8 PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION.
9 IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
10 ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT
11 NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
12 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
13 OR YEARS.
14 (D) FOR THE PURPOSES OF THIS SUBDIVISION A TAXPAYER MAY INCLUDE A
15 PARTNERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER S
16 OF CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE CODE, OR ANY OTHER
17 BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A DISTRIBUTIVE SHARE TO
18 ITS OWNERS. A CREDIT RECEIVED UNDER THIS SUBDIVISION BY A PARTNERSHIP,
19 S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED AMONG
20 THE PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
21 TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS AS THOSE
22 IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
23 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
24 of the tax law, as amended by section 2 of part ZZ-1 of chapter 57 of
25 the laws of 2008, is amended to read as follows:
26 (B) shall be treated as the owner of a new business with respect to
27 such share if the corporation qualifies as a new business pursuant to
28 paragraph (j) of subdivision twelve of section two hundred ten of this
29 chapter.
30 The corporation's credit base under
31 section two hundred ten or section
32 With respect to the following fourteen hundred fifty-six of this
33 credit under this section: chapter is:
34 (I) Investment tax credit Investment credit base
35 under subsection (a) or qualified
36 rehabilitation
37 expenditures under
38 subdivision twelve of
39 section two hundred ten
40 (II) Empire zone Cost or other basis
41 investment tax credit under subdivision
42 under subsection (j) twelve-B
43 of section two hundred
44 ten
45 (III) Empire zone Eligible wages under
46 wage tax credit subdivision nineteen of
47 under subsection (k) section two hundred ten
48 or subsection (e) of
49 section fourteen hundred
50 fifty-six
S. 1894 3
1 (IV) Empire zone Qualified investments
2 capital tax credit and contributions under
3 under subsection (l) subdivision twenty of
4 section two hundred ten
5 or subsection (d) of
6 section fourteen hundred
7 fifty-six
8 (V) Agricultural property tax Allowable school
9 credit under subsection (n) district property taxes under
10 subdivision twenty-two of
11 section two hundred ten
12 (VI) Credit for employment Qualified first-year wages or
13 of persons with dis- qualified second-year wages
14 abilities under under subdivision
15 subsection (o) twenty-three of section
16 two hundred ten
17 or subsection (f)
18 of section fourteen
19 hundred fifty-six
20 (VII) Employment incentive Applicable investment credit
21 credit under subsec- base under subdivision
22 tion (a-1) twelve-D of section two
23 hundred ten
24 (VIII) Empire zone Applicable investment
25 employment credit under sub-
26 incentive credit under division twelve-C
27 subsection (j-1) of section two hundred ten
28 (IX) Alternative fuels credit Cost under subdivision
29 under subsection (p) twenty-four of section two
30 hundred ten
31 (X) Qualified emerging Applicable credit base
32 technology company under subdivision twelve-E
33 employment credit of section two hundred ten
34 under subsection (q)
35 (XI) Qualified emerging Qualified investments under
36 technology company subdivision twelve-F of
37 capital tax credit section two hundred ten
38 under subsection (r)
39 (XII) Credit for purchase of an Cost of an automated
40 automated external defibrillator external defibrillator under
41 under subsection (s) subdivision twenty-five of
42 section two hundred ten
43 or subsection (j) of section
44 fourteen hundred fifty-six
45 (XIII) Low-income housing Credit amount under
46 credit under subsection (x) subdivision thirty
47 of section two hundred ten or
S. 1894 4
1 subsection (l) of section
2 fourteen hundred fifty-six
3 (XIV) Credit for transportation Amount of credit under sub-
4 improvement contributions division thirty-two of section
5 under subsection (z) two hundred ten or subsection
6 (n) of section fourteen
7 hundred fifty-six
8 (XV) QEZE credit for real property Amount of credit under
9 taxes under subsection (bb) subdivision twenty-seven of
10 section two hundred ten or
11 subsection (o) of section
12 fourteen hundred fifty-six
13 (XVI) QEZE tax reduction credit Amount of benefit period
14 under subsection (cc) factor, employment increase factor
15 and zone allocation
16 factor (without regard
17 to pro ration) under
18 subdivision twenty-eight of
19 section two hundred ten or
20 subsection (p) of section
21 fourteen hundred fifty-six
22 and amount of tax factor
23 as determined under
24 subdivision (f) of section sixteen
25 (XVII) Green building credit Amount of green building credit
26 under subsection (y) under subdivision thirty-one
27 of section two hundred ten
28 or subsection (m) of section
29 fourteen hundred fifty-six
30 (XVIII) Credit for long-term Qualified costs under
31 care insurance premiums subdivision twenty-five-a of
32 under subsection (aa) section two hundred ten
33 or subsection (k) of section
34 fourteen hundred fifty-six
35 (XIX) Brownfield redevelopment Amount of credit
36 credit under subsection under subdivision
37 (dd) thirty-three of section
38 two hundred ten
39 or subsection (q) of
40 section fourteen hundred
41 fifty-six
42 (XX) Remediated brownfield Amount of credit under
43 credit for real property subdivision thirty-four
44 taxes for qualified of section two hundred
45 sites under subsection ten or subsection (r) of
46 (ee) section fourteen hundred
47 fifty-six
S. 1894 5
1 (XXI) Environmental Amount of credit under
2 remediation subdivision thirty-five of
3 insurance credit under section two hundred
4 subsection (ff) ten or subsection
5 (s) of section
6 fourteen hundred
7 fifty-six
8 (XXII) Empire state film pro- Amount of credit for qualified
9 duction credit under subsection production costs in production
10 (gg) of a qualified film under
11 subdivision thirty-six of
12 section two hundred ten
13 (XXIII) Qualified emerging Qualifying expenditures and
14 technology company facilities, development activities under
15 operations and training credit subdivision twelve-G of section
16 under subsection (nn) two hundred ten
17 (XXIV) Security training tax Amount of credit
18 credit under under subdivision thirty-seven
19 subsection (ii) of section two hundred ten or
20 under subsection (t) of
21 section fourteen hundred fifty-six
22 (XXV) Credit for qualified fuel Amount of credit under
23 cell electric generating equipment subdivision thirty-seven
24 expenditures under subsection (g-2) of section two hundred ten
25 or subsection (t) of
26 section fourteen hundred
27 fifty-six
28 (XXVI) Empire state commercial Amount of credit for qualified
29 production credit under subsection production costs in production
30 (jj) of a qualified commercial under
31 subdivision thirty-eight of sec-
32 tion two hundred ten
33 (XXVII) Biofuel production Amount of credit
34 tax credit under under subdivision
35 subsection (jj) thirty-eight of
36 section two hundred ten
37 (XXVIII) Clean heating fuel credit Amount of credit under
38 under subsection (mm) subdivision thirty-nine of
39 section two hundred ten
40 (XXIX) Credit for rehabilitation Amount of credit under
41 of historic properties subdivision forty of
42 under subsection (oo) subsection two hundred ten
43 (XXX) Credit for companies who Amount of credit under
44 provide transportation subdivision forty of
45 to individuals section two hundred ten
46 with disabilities
47 under subsection (oo)
S. 1894 6
1 (XXXI) MEDICAL MALPRACTICE QUALIFIED PREMIUMS UNDER
2 INSURANCE PREMIUMS CREDIT SUBDIVISION TWENTY-FIVE-B
3 UNDER SUBSECTION (QQ) OF SECTION TWO HUNDRED TEN
4 S 4. Section 606 of the tax law is amended by adding a new subsection
5 (qq) to read as follows:
6 (QQ) MEDICAL MALPRACTICE INSURANCE PREMIUMS TAX CREDIT. (1) AS USED IN
7 THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
8 (A) "MEDICAL MALPRACTICE INSURANCE" MEANS INSURANCE AGAINST LEGAL
9 LIABILITY OF THE INSURED, AND AGAINST LOSS, DAMAGE, OR EXPENSE INCIDENT
10 TO A CLAIM OF SUCH LIABILITY ARISING OUT OF THE DEATH OR INJURY OF ANY
11 PERSON DUE TO MEDICAL, DENTAL, PODIATRIC, CERTIFIED NURSE-MIDWIFERY OR
12 HOSPITAL MALPRACTICE BY ANY LICENSED PHYSICIAN, DENTIST, PODIATRIST,
13 CERTIFIED NURSE-MIDWIFE, CERTIFIED REGISTERED NURSE ANESTHETIST OR
14 HOSPITAL.
15 (B) "QUALIFIED PREMIUMS" SHALL INCLUDE ALL PREMIUMS PAID BY THE
16 TAXPAYER DURING THE CURRENT TAX YEAR ON ALL MEDICAL MALPRACTICE INSUR-
17 ANCE POLICIES WHOSE PREMIUMS ARE REGULATED AND ESTABLISHED BY THE NEW
18 YORK STATE DEPARTMENT OF INSURANCE WITH THE EXCEPTION OF PREMIUMS PAID
19 TO THE NEW YORK MEDICAL MALPRACTICE INSURANCE PLAN AS ESTABLISHED BY
20 SUCH DEPARTMENT UNDER REGULATION 170 (11 NYCRR 430).
21 (C) "QUALIFIED INCOME" SHALL INCLUDE ALL NET RECEIPTS THE TAXPAYER
22 DERIVES FROM ACTIVITIES COVERED BY THE MALPRACTICE POLICY FOR WHICH THE
23 QUALIFIED PREMIUMS ARE PAID.
24 (2) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
25 THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF THE AMOUNT BY WHICH ANNUAL
26 QUALIFIED PREMIUMS EXCEED TEN PERCENT OF THE TAXPAYER'S QUALIFIED INCOME
27 FOR THE CURRENT YEAR, NOT TO EXCEED THE LESSER OF THE TAXPAYER'S CURRENT
28 YEAR TAX LIABILITY OR TWENTY-FIVE THOUSAND DOLLARS. THE CREDIT SHALL BE
29 CLAIMED AFTER THE ALLOWANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAP-
30 TER.
31 (3) ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN A TAXABLE YEAR MAY BE
32 CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE
33 TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
34 (4) FOR THE PURPOSES OF THIS SUBSECTION A TAXPAYER MAY INCLUDE A PART-
35 NERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER S OF
36 CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE CODE, OR ANY OTHER
37 BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A DISTRIBUTIVE SHARE TO
38 ITS OWNERS. A CREDIT RECEIVED UNDER THIS SUBSECTION BY A PARTNERSHIP,
39 S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED AMONG
40 THE PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
41 TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS AS THOSE
42 IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
43 S 5. This act shall take effect immediately and shall apply to taxable
44 years commencing on or after January 1, 2009 through December 31, 2018;
45 provided, however that the empire state film production credit under
46 subsection (gg), the empire state commercial production credit under
47 subsection (jj) and the credit for companies who provide transportation
48 to individuals with disabilities under subsection (oo) of section 606 of
49 the tax law contained in section three of this act shall expire on the
50 same date as provided in section 9 of part P of chapter 60 of the laws
51 of 2004, as amended, section 10 of part V of chapter 62 of the laws of
52 2006, as amended and section 5 of chapter 522 of the laws of 2006, as
53 amended, respectively.
