S 853: Establishes the New York manufacturing adequate domestic equipment credit (NY MADE); defines medical equipment; makes related provisions.

  
  STATE OF NEW YORK ________________________________________________________________________ 853 2025-2026 Regular Sessions  IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sens. HELMING, BORRELLO, GALLIVAN, WEBER, WEIK -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to establishing the New York manufacturing adequate domestic equipment credit (NY MADE) 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 50 to read 2 as follows: 3 § 50. New York manufacturing adequate domestic equipment credit (NY 4 MADE). (a) General. A taxpayer subject to tax under article nine-A or 5 twenty-two of this chapter, produces medical equipment or personal 6 protective equipment, as defined in paragraph (a) of subdivision two of 7 section one hundred forty-eight of the state finance law, in this state 8 during the taxable year, shall be allowed a credit against such taxes in 9 the amount specified in subdivision (b) of this section and pursuant to 10 the provisions referenced in subdivision (c) of this section. For the 11 purposes of this section, "medical equipment" shall mean machinery, 12 apparatus, and other devices which are intended for use in the cure, 13 mitigation, treatment or prevention of illnesses or diseases or the 14 correction or alleviation of physical incapacity in human beings. Such 15 equipment must be primarily and customarily used for medical purposes 16 and not be generally useful in the absence of illness, injury, or phys- 17 ical incapacity. 18 (b) The amount of the credit per taxpayer per taxable year (or pro 19 rata share of earned credit in the case of a partnership) for production 20 of medical equipment or personal protective equipment, as defined in 21 paragraph (a) of subdivision two of section one hundred forty-eight of 22 the state finance law, shall be determined as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01072-01-5 
 S. 853 2 1 (1) for taxpayers who are currently producing medical equipment or 2 personal protective equipment, as defined in paragraph (a) of subdivi- 3 sion two of section one hundred forty-eight of the state finance law, or 4 were producing medical equipment or personal protective equipment, as 5 defined in paragraph (a) of subdivision two of section one hundred 6 forty-eight of the state finance law, in calendar year two thousand 7 twenty-five or in January two thousand twenty-six, the credit shall be 8 twenty percent of the wholesale market value of such supplies produced 9 in excess of the monthly average production for the two thousand twen- 10 ty-five calendar year or monthly average production equivalent if such 11 supplies were not produced for the entire calendar year; or 12 (2) for taxpayers who have not produced such supplies prior to the 13 enactment date of this section, thirty percent of the wholesale market 14 value of such supplies produced. 15 (c) Cross-references. For application of the credit provided for in 16 this section, see the following provisions of this chapter: 17 (1) Article 9-A: Section 210-B, subdivision 61. 18 (2) Article 22: Section 606, subsections (i) and (a-3). 19 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 20 sion 61 to read as follows: 21 61. New York manufacturing adequate domestic equipment credit (NY 22 MADE). A taxpayer shall be allowed a credit, to be computed as provided 23 in section fifty of this chapter, against the tax imposed by this arti- 24 cle. In no event shall the credit allowed under this subdivision for any 25 taxable year reduce the tax due for such year to less than the amount 26 prescribed in paragraph (d) of subdivision one of this section. However, 27 if the amount of credit allowed under this subdivision for any taxable 28 year reduces the tax to such amount, any amount of credit thus not 29 deductible in such taxable year shall be treated as an overpayment of 30 tax to be credited or refunded in accordance with the provisions of 31 section one thousand eighty-six of this chapter. Provided, however, the 32 provisions of subsection (c) of section one thousand eighty-eight of 33 this chapter notwithstanding, no interest shall be paid thereon. 34 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 35 of the tax law is amended by adding a new clause (lii) to read as 36 follows: 37 (lii) New York Manufacturing  Amount of credit under 38 Adequate subdivision 39 Domestic Equipment credit  sixty-one of section two hundred 40 (NY MADE) under subsection (a-3) ten-B 41 § 4. Section 606 of the tax law is amended by adding a new subsection 42 (a-3) to read as follows: 43 (a-3) New York Manufacturing Adequate Domestic Equipment credit (NY 44 MADE). A taxpayer shall be allowed a credit, to be computed as provided 45 in section fifty of this chapter, against the tax imposed by this arti- 46 cle. If the amount of the credit allowed under this subsection for any 47 taxable year shall exceed the taxpayer's tax for such year, the excess 48 shall be treated as an overpayment of tax to be credited or refunded in 49 accordance with the provisions of section six hundred eighty-six of this 50 article, provided, however, that no interest shall be paid thereon. 51 § 5. This act shall take effect immediately, and shall apply to taxa- 52 ble years beginning on or after January 1, 2026.