STATE OF NEW YORK ________________________________________________________________________ 689--A 2017-2018 Regular Sessions IN SENATE January 4, 2017 ___________ Introduced by Sens. ORTT, KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investi- gations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to providing an asbestos reme- diation tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 23-a to read 2 as follows: 3 § 23-a. Asbestos remediation credit. (a) Definitions. As used in this 4 section, the following terms shall have the following meanings: 5 (1) Qualified structure. "Qualified structure" shall mean (i) a build- 6 ing, principally used by the taxpayer for residential, industrial, 7 commercial, recreational or environmental conservation purposes, and 8 (ii) which was originally placed in service at least twenty-five years 9 prior to the taxable year in which the credit is claimed. 10 (2) Eligible costs. "Eligible costs" shall mean all amounts properly 11 chargeable to a capital account, which are incurred in direct connection 12 to asbestos remediation of a qualified asbestos project. 13 (3) Qualified asbestos project. "Qualified asbestos project" shall be 14 an asbestos project as defined in section nine hundred one of the labor 15 law and undertaken by the taxpayer, on a qualified structure, and 16 completed pursuant to the applicable regulations at part fifty-six of 17 title twelve of the official compilation of rules and regulations of the 18 state. 19 (b) Asbestos remediation credit. (1) Allowance of credit. A taxpayer 20 who has undertaken a qualified asbestos project on a qualified struc- 21 ture, and who is subject to tax under article nine, nine-A or twenty-two EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04320-02-8

S. 689--A 2 1 of this chapter, shall be allowed a credit against such tax, pursuant to 2 the provisions referenced in subdivision (c) of this section. 3 (2) Amount of credit. The amount of the credit shall be twenty percent 4 of all eligible costs which are incurred in the taxable year, as a 5 result of asbestos remediation with a completed qualified asbestos 6 project. The credit shall be allowed for the taxable year in which the 7 qualified asbestos project is first commenced and for the next two 8 succeeding taxable years. The credit authorized pursuant to this section 9 shall not exceed the total sum of one million dollars for the three 10 taxable years allowed and claimed. The costs, expenses and other amounts 11 for which a credit is allowed and claimed under this subdivision shall 12 not be used in the calculation of any other credit allowed under this 13 chapter. 14 (c) Cross-references. For application of the credit provided for in 15 this section, see the following provisions of this chapter: 16 Article 9: Section 187-q. 17 Article 9-A: Section 210-B, subdivision 53. 18 Article 22: Section 606, subsections (i) and (ccc). 19 § 2. The tax law is amended by adding a new section 187-q to read as 20 follows: 21 § 187-q. Asbestos remediation credit. 1. Allowance of credit. A 22 taxpayer shall be allowed a credit, to be computed as provided in 23 section twenty-three-a of this chapter, against the taxes imposed by 24 this article. Provided, however, that the amount of such credit allow- 25 able against the tax imposed by section one hundred eighty-four of this 26 article shall be the excess of the amount of such credit over the amount 27 of any credit allowed by this section against the tax imposed by section 28 one hundred eighty-three of this article. 29 2. Application of credit. The credit under this section for any taxa- 30 ble year shall not reduce the tax due for such year to less than the 31 applicable minimum tax prescribed by this article. If, however, the 32 amount of credit allowable under this section for any taxable year 33 reduces the tax to such amount, any amount of credit not deductible in 34 such taxable year shall be treated as an overpayment of tax to be 35 refunded in accordance with the provisions of section one thousand 36 eighty-six of this chapter. Provided, however, the provisions of 37 subsection (c) of section one thousand eighty-eight of this chapter 38 notwithstanding, no interest shall be paid thereon. 39 § 3. Section 210-B of the tax law is amended by adding a new subdivi- 40 sion 53 to read as follows: 41 53. Asbestos remediation credit. (a) Allowance of credit. A taxpayer 42 who has undertaken a qualified asbestos project on an existing structure 43 shall be allowed a credit, to be computed as provided in section twen- 44 ty-three-a of this chapter, against the tax imposed by this article. 45 (b) Application of credit. The credit allowed under this subdivision 46 for any taxable year shall not reduce the tax due for such year to less 47 than the higher amount prescribed in paragraph (d) of subdivision one of 48 this section. However, if the amount of credits allowed under this 49 subdivision for any taxable year reduces the tax to such amount, any 50 amount of credit thus not deductible in such taxable year shall be 51 treated as an overpayment of tax to be credited or refunded in accord- 52 ance with the provisions of section one thousand eighty-six of this 53 chapter. Provided, however, the provisions of subsection (c) of section 54 one thousand eighty-eight of this chapter notwithstanding, no interest 55 shall be paid thereon.

S. 689--A 3 1 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 2 of the tax law is amended by adding a new clause (xliv) to read as 3 follows: 4 (xliv) Asbestos remediation Amount of credit under 5 credit under subsection (ccc) subdivision fifty-three of 6 section two hundred ten-B 7 § 5. Section 606 of the tax law is amended by adding a new subsection 8 (ccc) to read as follows: 9 (ccc) Asbestos remediation credit. (1) Allowance of credit. A taxpayer 10 who has undertaken a qualified asbestos project on an existing structure 11 shall be allowed a credit, to be computed as provided in section twen- 12 ty-three-a of this chapter, against the tax imposed by this article. 13 (2) Application of credit. If the amount of the credit allowed under 14 this subsection for any taxable year shall exceed the taxpayer's tax for 15 such year, the excess shall be treated as an overpayment of tax to be 16 credited or refunded in accordance with the provisions of section six 17 hundred eighty-six of this article, provided, however, that no interest 18 shall be paid thereon. 19 § 6. This act shall take effect immediately and shall apply to taxable 20 years commencing on or after such date.