New York A 7016: Relates to expanding New York's manufacturing tax incentive to S corporations

Bill Text

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A07016 Summary:

BILL NOA07016 

&nbsp

SAME ASNo Same As

&nbsp

SPONSORStirpe

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §§612 & 631, Tax L

&nbsp

Relates to expanding New York's manufacturing tax incentive to S corporations which are qualified New York state manufacturers.

Go to top A07016 Actions:

BILL NOA07016 

&nbsp

03/18/2025referred to ways and means

01/07/2026referred to ways and means

Go to topA07016 Committee&nbspVotes:

Go to topA07016 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA07016 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7016

 2025-2026 Regular Sessions

 IN ASSEMBLY

 March 18, 2025
 ___________

 Introduced by M. of A. STIRPE -- read once and referred to the Committee
 on Ways and Means

 AN ACT to amend the tax law, in relation to expanding New York's manu-
 facturing incentive to S corporations

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

 1 Section 1. Paragraph 22 of subsection (c) of section 612 of the tax
 2 law, as amended by chapter 606 of the laws of 1984, subparagraph (A) as
 3 amended by chapter 28 of the laws of 1987, and subparagraph (B) as
 4 amended by chapter 190 of the laws of 1990, is amended to read as
 5 follows:
 6 (22) In the case of a shareholder of an S corporation (A) where the
 7 election provided for in subsection (a) of section six hundred sixty of
 8 this article has not been made with respect to such corporation, any
 9 item of income of the corporation included in federal gross income
 10 pursuant to section thirteen hundred sixty-six of the internal revenue
 11 code, [and]
 12 (B) in the case of a New York S termination year, subparagraph (A) of
 13 this paragraph shall apply to the amounts of income determined under
 14 subsection (s) of this section, and
 15 (C) in the case of distributions as defined by sections three hundred
 16 one and thirteen hundred sixty-eight of the internal revenue code from
 17 corporations described in subparagraph (A) of this paragraph, and that
 18 are qualified New York manufacturers as defined by subparagraph (vi) of
 19 paragraph (a) of subdivision one of section two hundred ten of this
 20 chapter, received during the tax year of the shareholder, the lesser of:
 21 (1) the shareholder's combined separately stated items of income,
 22 loss, or deduction, described in paragraph two of subsection (a) of
 23 section thirteen hundred sixty-six of the internal revenue code and
 24 regulations promulgated thereunder, that are includable in, or deduct-
 25 ible from, a shareholder's federal taxable income, multiplied by the

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD10131-01-5

 A. 7016 2

 1 highest marginal federal tax rate for individuals in section one of the
 2 internal revenue code, in effect for the shareholder's tax year,
 3 provided, however, that if there is more than one such rate in effect
 4 during such year, a blended rate, considering each rate and the number
 5 of months in effect, shall be used, and
 6 (2) the amount of actual distributions made to the shareholder during
 7 the shareholder's tax year.
 8 § 2. Paragraph 2 of subsection (e) of section 612 of the tax law, as
 9 amended by chapter 166 of the laws of 1991, is amended to read as
 10 follows:
 11 (2) Shareholders of S corporations which are New York C corporations.
 12 In the case of a shareholder of an S corporation which is a New York C
 13 corporation, (A) the modifications under this section which relate to
 14 the corporation's items of income, loss and deduction shall not apply,
 15 except for the modifications provided under paragraph nineteen of
 16 subsection (b) and paragraph twenty-two of subsection (c) of this
 17 section, and
 18 (B) the modification for corporate distributions described in subpara-
 19 graph (C) of paragraph twenty-two of subsection (c) of this section
 20 shall apply.
 21 § 3. Paragraph 2 of subsection (a) of section 631 of the tax law, as
 22 amended by chapter 170 of the laws of 1994, is amended to read as
 23 follows:
 24 (2) The portion of the modifications described in subsections (b) and
 25 (c) of section six hundred twelve of