Bill Text: NY S06696 | 2009-2010 | General Assembly | Introduced

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Bill Title: Establishes a small business tax credit for SBA guaranty fees paid by a taxpayer in connection with obtaining financing from the U.S. small business administration.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2010-06-23 - referred to ways and means [S06696 Detail]

Download: New_York-2009-S06696-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6696
                                   I N  S E N A T E
                                   January 28, 2010
                                      ___________
       Introduced  by  Sen.  FOLEY  -- read twice and ordered printed, and when
         printed to be committed to the Committee on Investigations and Govern-
         ment Operations
       AN ACT to amend the tax law, in relation to establishing a  small  busi-
         ness tax credit for SBA guaranty fees paid
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 210 of the tax law  is  amended  by  adding  a  new
    2  subdivision 41 to read as follows:
    3     41.  SMALL  BUSINESS  TAX CREDIT. (A) GENERAL. A TAXPAYER WHO HAS ONE
    4  HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED  AS
    5  PROVIDED  IN  THIS  SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE
    6  FOR ANY AMOUNT PAID TO THE UNITED STATES SMALL  BUSINESS  ADMINISTRATION
    7  (SBA)  AS A GUARANTY FEE PURSUANT TO THE OBTAINING OF A SBA 7(A) GUARAN-
    8  TEED LOAN.
    9    (B) AMOUNT OF CREDIT. A CREDIT  AUTHORIZED  BY  THIS  SECTION  MAY  BE
   10  CLAIMED  FOR  GUARANTY FEES PAID ON OR AFTER JANUARY FIRST, TWO THOUSAND
   11  ELEVEN.
   12    (C) NO CREDIT MAY BE CLAIMED PURSUANT TO THIS SUBDIVISION IF, PURSUANT
   13  TO THE AGREEMENT BETWEEN THE BANKING ASSOCIATION OR CREDIT UNION AND THE
   14  ENTITY TO WHICH PROCEEDS ARE MADE AVAILABLE, THE BANKING ASSOCIATION  OR
   15  CREDIT  UNION  ADDS  THE AMOUNT OF THE SBA 7(A) LOAN GUARANTY FEE TO THE
   16  AMOUNT FINANCED BY THE BORROWER OR IN ANY OTHER WAY RECOVERS THE GUARAN-
   17  TY FEE AMOUNT FROM THE BORROWER.
   18    (D) CARRYOVERS. THE CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION  MAY  BE
   19  CLAIMED  AND  IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH THE CREDIT
   20  IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE FIVE SUCCEEDING
   21  TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBDIVISION MAY NOT BE USED
   22  TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
   23    S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
   24  of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
   25  follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08416-04-0
       S. 6696                             2
    1  (XXXI) SBA GUARANTY FEE CREDIT       COSTS UNDER SUBDIVISION
    2  UNDER SUBSECTION (R-1)               FORTY-ONE OF SECTION
    3                                       TWO HUNDRED TEN
    4    S  3. Section 606 of the tax law is amended by adding a new subsection
    5  (r-1) to read as follows:
    6    (R-1) SMALL BUSINESS GUARANTY FEE TAX CREDIT. (1) GENERAL. A  TAXPAYER
    7  WHO  HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CREDIT, TO BE
    8  COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS
    9  ARTICLE FOR ANY AMOUNT PAID TO THE UNITED STATES SMALL BUSINESS ADMINIS-
   10  TRATION (SBA) AS A GUARANTY FEE PURSUANT TO THE OBTAINING OF SBA GUARAN-
   11  TEED FINANCING.
   12    (2) AMOUNT OF CREDIT. A CREDIT  AUTHORIZED  BY  THIS  SECTION  MAY  BE
   13  CLAIMED  FOR  GUARANTY FEES PAID ON OR AFTER JANUARY FIRST, TWO THOUSAND
   14  ELEVEN.
   15    (3) NO CREDIT MAY BE CLAIMED PURSUANT TO THIS SUBSECTION IF,  PURSUANT
   16  TO THE AGREEMENT BETWEEN THE BANKING ASSOCIATION OR CREDIT UNION AND THE
   17  ENTITY  TO WHICH PROCEEDS ARE MADE AVAILABLE, THE BANKING ASSOCIATION OR
   18  CREDIT UNION ADDS THE AMOUNT OF THE SBA 7(A) LOAN GUARANTY  FEE  TO  THE
   19  AMOUNT FINANCED BY THE BORROWER OR IN ANY OTHER WAY RECOVERS THE GUARAN-
   20  TY FEE AMOUNT FROM THE BORROWER.
   21    (4)  CARRYOVERS.  THE  CREDIT  ALLOWED  UNDER  THIS  SUBSECTION MAY BE
   22  CLAIMED AND IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH  THE  CREDIT
   23  IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE FIVE SUCCEEDING
   24  TAXABLE  YEARS. THE CREDIT AUTHORIZED BY THIS SUBSECTION MAY NOT BE USED
   25  TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
   26    S 4.  This act shall take effect immediately.