TAF-48-07-00004-P Handicapped-Accessible Taxicabs and Livery Service Vehicles Credit

11/28/07 N.Y. St. Reg. TAF-48-07-00004-P

NEW YORK STATE REGISTER

VOLUME XXIX, ISSUE 48

November 28, 2007

RULE MAKING ACTIVITIES

DEPARTMENT OF TAXATION AND FINANCE

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. TAF-48-07-00004-P

Handicapped-Accessible Taxicabs and Livery Service Vehicles Credit

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed action:

This is a consensus rule making to add Subpart 5-5 and section 106.5 to Title 20 NYCRR.

Statutory authority:

Tax Law, sections 171, subd. First; 697(a); 1096(a); and L. 2006, ch. 522, section 4

Subject:

Handicapped-accessible taxicabs and livery service vehicles credit.

Purpose:

To provide a rule regarding eligibility for the handicapped-accessible taxicabs and livery service vehicles credit.

Text of proposed rule:

Section 1. A new Subpart 5-5 is added to such regulations to read as follows:

SUBPART 5-5 HANDICAPPED-ACCESSIBLE TAXICABS AND LIVERY SERVICE VEHICLES CREDIT

(Statutory authority: Tax Law § 210(40))

Section 5-5.1 General.

As provided in section 210.40 of the Tax Law and this Subpart, a taxpayer providing a taxicab or livery service that incurred an incremental cost associated with the purchase of a handicapped-accessible vehicle or the conversion of a motor vehicle to a handicapped-accessible vehicle that is used in providing such service is allowed to claim a handicapped-accessible taxicabs and livery service vehicle credit against the tax imposed by article 9-A of the Tax Law. Chapter 522 of the Laws of 2006, which added the credit, provided that it would remain in effect until December 31, 2008, at which time it would be deemed to be repealed.

Section 5-5.2 Meaning of terms.

In addition to the terms defined in section 210.40 of the Tax Law, the following terms, as used in this Subpart, have these meanings:

(a) The term “providing a taxicab or livery service” means the operation of a taxicab or livery in New York State in accordance with required licenses, permits or registrations issued by a local authority and the New York State Department of Motor Vehicles.

(b) The term “taxicab” shall have the same meaning as such term is defined in section 148-a of the New York State Vehicle and Traffic Law.

(c) The term “livery” shall have the same meaning as such term is defined in section 121-e of the New York State Vehicle and Traffic Law.

(d) The term “incremental cost” means the expenses specifically associated with the excess purchase price of a handicapped-accessible vehicle over the purchase price of a motor vehicle that is the same make and model except for the equipment necessary to convert it to a handicapped-accessible vehicle. In the case of a conversion of an existing motor vehicle, it includes the equipment and installation costs necessary to convert it to a handicapped-accessible vehicle.

Section 5-5.3 Computation of the Handicapped-Accessible Taxicabs and Livery Service Vehicles Credit.

The amount of the credit that a taxpayer is allowed is equal to the incremental cost incurred for each handicapped-accessible vehicle used in providing a taxicab or livery service.

Section 5-5.4 Limitations and carryover.

(a) The credit may not exceed $10,000 per vehicle and may only be claimed once per vehicle.

(b) The credit and carryover of such credit allowed for any taxable year, in the aggregate, may reduce the tax due to zero.

(c) If the taxpayer has an excess credit after reducing the tax due to zero, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for that year or years.

Section 2. A new section 106.5 is added to such regulations to read as follows:

Section 106.5 Handicapped-Accessible Taxicabs and Livery Service Vehicles Credit. (Tax Law § 606(oo))

(a) General. As provided in section 606(oo) of the Tax Law, a taxpayer that provides a taxicab or livery service in New York State in accordance with required licenses or permits issued by a local authority and the New York State Department of Motor Vehicles that incurred an incremental cost associated with the purchase of a handicapped-accessible vehicle or the conversion of a motor vehicle to a handicapped-accessible vehicle that is used in providing such service is allowed to claim a handicapped-accessible taxicabs and livery service vehicles credit against the tax imposed by article 22 of the Tax Law. The provisions of Subpart 5-5 of this Title addressing the handicapped-accessible taxicabs and livery service vehicles credit against the tax imposed by article 9-A are applicable to the handicapped-accessible taxicabs and livery service vehicles credit allowed by section 606(oo) of the Tax Law.

Text of proposed rule and any required statements and analyses may be obtained from:

John W. Bartlett, Tax Regulations Specialist 4, Department of Taxation and Finance, Bldg. 9, State Campus, Albany, NY 12227, [phone], e-mail: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Consensus Rule Making Determination

The Department of Taxation and Finance has determined that no person is likely to object to the rule as written because the amendments merely reflect statutory amendments, and existing interpretation of those statutory amendments, made by Chapter 522 of the Laws of 2006.

Chapter 522 of the Laws of 2006 added a tax credit for handicapped-accessible taxicabs and livery service vehicles to the business corporation franchise tax and the personal income tax. Section 4 of Chapter 522 of the Laws of 2006 directs the Commissioner to prescribe a rule with regard to establishing the requirements of companies eligible for the credit. The purpose of this amendment is to fulfill that statutory direction by reflecting the legislative enactment of the credit in the business corporation franchise tax regulations and the personal income tax regulations. In addition, the Department previously issued guidance on the new credit. The amendments also reflect this guidance.

Job Impact Statement

A Job Impact Statement is not being submitted with this rule because it is evident from the subject matter of the rule that it would have no adverse impact on jobs and employment opportunities. The purpose of the amendments is to provide a rule regarding the handicapped-accessible taxicabs and livery service vehicles credit.