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.