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NY Bill Would Provide Tax Credit For Open Source Contributors

An anonymous reader writes: For many years, the open source software community has made the distinction between "free as in freedom" (the software can be used or modified as the user sees fit) and "free as in beer" (the software is available at no cost). Some have added a third type of free: "free as in puppy". Like a puppy, adopting open source software has ongoing cost. What many people don't consider is that developing open source software has a cost, too. Many developers purchase extra hardware for testing or pay for code hosting, a website, etc. A pending bill in the New York Senate aims to help offset those costs. The bill, sponsored by Senator Daniel Squadron (D-26th) and co-sponsored by Senator Ruth Hassell-Thompson (D-36th), would provide a tax credit of 20% of "expenses associated with the development of open source and free software", up to an annual maximum of $200. Based on a 2006 report by the Center for American Progress, this bill appears to be the first of its kind introduced to a state legislature. I'd rather they require that any software developed at taxpayer expense be released as open source.

54 comments

  1. Software at taxpayer expense? by damn_registrars · · Score: 2

    I'd rather they require that any software developed at taxpayer expense be released as open source.

    That's not as clear of a metric as one might expect. We have lots of research efforts now that are jointly funded by government and private funds; would they need to be released as open source? And how do you dictate the release schedule for the code? Does it need to be updated regularly or can it just be released when there is something relating to it published somewhere? And who will host it, for how long? Will the authors be held responsible for making sure that their code compiles on other peoples' hardware?

    It's a good idea but the execution of it is not trivial. I can think of plenty of software in my field of work that has been at least partially funded by the government that I would love to see released but some of the above matters make it impossible or impractical to get a good release of it out publicly.

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    1. Re:Software at taxpayer expense? by Bert64 · · Score: 1

      While these practical issues apply to existing projects, for new projects going forwards it's much less of a problem...

      Would jointly funded code need to be released? Yes, so if you don't agree to that don't agree to partial government funding.

      Release the code as soon as it exists (ie develop it in the open), maybe others will contribute towards it which saves you development time, and depending on the license under which you release it you should be able to reuse other existing open source code where applicable instead of reinventing the wheel.

      There would be no obligation to update, you release what you've developed and you update it if you want.

      There would be no obligation to ensure it compiles on other systems, you just provide all information necessary to replicate *your* build environment where it does compile, if users want to build it on something else that's upto them.

      Host it yourself or on a publicly recognised source hosting service (github, sourceforge etc).

      If the code is useful other people will take it, modify it, use bits of it, etc... If the code is of no interest to anyone then it will just sit there ignored.

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    2. Re:Software at taxpayer expense? by xtronics · · Score: 2

      "That's not as clear of a metric as one might expect. "
      Clear enough

      "We have lots of research efforts now that are jointly funded by government and private funds; would they need to be released as open source?"

      Yes! -- next question?

      " And how do you dictate the release schedule for the code? "

      Post the commits

      Fake problems to muddy the water. It the tax payer pays for even part of it - or supplies the infrastructure - it belongs to the public - not Washington elite coneys. Enough of this 'cartel-socialism' where only the buddies of the insiders get the goodies.

    3. Re:Software at taxpayer expense? by Anonymous Coward · · Score: 0

      I'd Rather they require that any software developed at taxpayer expense be released as open source.

      That is currently in the works
      see https://sourcecode.cio.gov/

      This policy requires that, among other things: (1) new custom code whose development is paid for by the Federal Government be made available for reuse across Federal agencies; and (2) a portion of that new custom code be released to the public as Open Source Software (OSS).

    4. Re:Software at taxpayer expense? by El+Cubano · · Score: 3, Insightful

      On top of what you say, there are lots of places in the government that focus on tech transfer. The very essence of it is that the government and one or more private entities jointly share in the development cost and risk. The government then usually gets some perpetual royalty-free right to the product of the endeavor, while the commercial interest gets the right to further develop the technology and market/sell to the commercial public. There is almost always a requirement that those two don't interfere with each other. The biggest concern is usually on the part of the commercial interests which worry that the government will give away the technology at some later time, thereby destroying their market. So, there is usually a prohibition on just that sort of thing when a tech transfer takes place.

      To make the "all software developed at tax payer expense open source" thing come true, the government would have to completely re-think the idea of how tech transfer works. Don't get me wrong. I am in favor making as much government-funded software as possible open source. I'm just saying it is more complex than that.

    5. Re:Software at taxpayer expense? by 110010001000 · · Score: 1

      100% correct. This isn't a problem at all. You take the public money, you release the source under an Open License. End of story.

    6. Re: Software at taxpayer expense? by Anonymous Coward · · Score: 0

      There is no black and white. Airforce One was paid for with tax dollars. Do I get to take it for a spin?

    7. Re: Software at taxpayer expense? by jon3k · · Score: 1

      I don't know, is Air Force one open source software? That is the dumbest analogy I've ever seen in my life.

  2. $200? What a joke by selectspec · · Score: 2

    Meanwhile companies that contribute to open source can write down the entire expense of development including salaries, benefits, software, facility, and equipment.

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  3. Comment removed by account_deleted · · Score: 2

    Comment removed based on user account deletion

  4. And you wonder why taxes are hell by xxxJonBoyxxx · · Score: 5, Insightful

    $200? Why bother with the paperwork? Only, now there will be more paperwork, as the state spends hundreds of thousands of dollars to implement the program and add the little checkbox to a form somewhere.

    My real take is even more cynical: this will be sold to the public as "$200 for independent open source software developers" but the final version will have a mysterious change in it that allows corporations with thousands of machines running some little piece of open source code to take a couple of million-dollar tax credits for "contributing to open source". In fact, the presser the politicians put out is little more than a sales brochure: "I'm offering up a tax credit for open source contributors (wink wink) - please contact my office (write a big check) if you want to know more (get in on the tax break for your company)."

    1. Re:And you wonder why taxes are hell by Anonymous Coward · · Score: 0

      Even Bush's tax rebate checks for the middle class were for more than $200.

    2. Re:And you wonder why taxes are hell by jbmartin6 · · Score: 1

      Because that is 200 lottery tickets.

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    3. Re:And you wonder why taxes are hell by Anonymous Coward · · Score: 0

      yea that $200 is really going to entice someone to do OSS when the going rate for contract work is $150 and hour.

    4. Re:And you wonder why taxes are hell by Anonymous Coward · · Score: 0

      It's also a way to register all open source developer with the government, then pull an "Apple" move micro scale...
      http://www.iphoneincanada.ca/news/fbi-source-code-ios/

      The real scary part is the following dystopia:

      Then they would cherry pick contributors to selected projects and strong arm the "Poor" dummy into a National security Letter, pushed via the Fisa Court and a nasty gag order the tax payers end up having a nicely doctored back-door into code specific to ones open source speciality, nicely sponsored by the government with a guaranteed "Club Fed" Holiday in the advent of conscientious objection...

    5. Re:And you wonder why taxes are hell by UnderCoverPenguin · · Score: 1

      Yes, but the Republicans complained when most people used it to pay down their on their debts instead of rushing to spend it all on splurge purchases.

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    6. Re:And you wonder why taxes are hell by Anonymous Coward · · Score: 0

      Lying faggot. Go suck another junkie's dick.

    7. Re:And you wonder why taxes are hell by DidgetMaster · · Score: 2

      Wait until you get the 20 pages of tax forms (and the 100 pages of instructions) required to claim this tax deduction. You might have to keep track of every line of code you wrote and document how long it took you to code it. If you make more than $50,000 in income, be prepared to have this deduction reduced or completely eliminated by the AMT or some other tax tacked on. Also save everything for 7 years in case of an audit (claiming this deduction will also increase your chances of being audited).

  5. Now THAT is generous by mi · · Score: 1

    up to an annual maximum of $200

    The proposal sure is generous... My tax-bill from NY for 2015 is thousands of dollars, being able to lower it by the whopping $200 is not going to move the needle. Especially, if claiming the deduction is going to increase the accountant's fee...

    Like a puppy, adopting open source software has ongoing cost.

    Yay! Let's give tax-credits to dog-owners as well.

    The whole idea is pure vote-pandering — people work on open-source (and get dogs) for fun...

    --
    In Soviet Washington the swamp drains you.
    1. Re:Now THAT is generous by frnic · · Score: 1

      That is a very limited view point from your perspective. Many people work on Open Source for a living. However, they do pay taxes on the money they make down it. This is simply a way to encourage open source startups/individuals.

    2. Re:Now THAT is generous by mi · · Score: 1

      Many people work on Open Source for a living.

      First, $200 is not going to affect them. Second, while I fully support all measures reducing the taxes, I fail to see, why this particular activity needs special encouragement.

      --
      In Soviet Washington the swamp drains you.
    3. Re:Now THAT is generous by TsuruchiBrian · · Score: 1

      It's a not so simple way (i.e. altering state law) to provide an extremely small amount of encouragement to open source development.

      They will no doubt spend more money trying to pass this bill and enforce it than the amount of money ultimately provided to open source.

      As a person who sometimes contributes code to open source projects, I think this pointless. I think it's too small an amount of money to be of any real benefit. It's a way for legislators to pretend like they are being useful. It will no doubt be most effectively exploited by people who are the most effective at exploiting tax laws.

    4. Re:Now THAT is generous by frnic · · Score: 1

      I agree with you, it is too little, but it is a step in the right direction.

    5. Re:Now THAT is generous by TsuruchiBrian · · Score: 1

      I don't think it's even a step in the right direction. As a programmer, the tax code is about the most horrifying thing I can imagine. It's the real world embodiment of code bloat.

      Even if they wanted to give lots of money towards open source development, tax breaks in a specific state is not a good way to do it. It would probably much better if they just took a bunch of money and donated to to whatever open source projects they wanted.

      It's like trying to help homeless people by spending $15 at the grocery store to make 1 sandwich and then spending $8 in gas and an hour of your time to drive downtown to give the sandwich to a homeless person. You could have probably feed 10+ homeless people by donating what you make in hour + $23 to an organization that already has the infrastructure to use money to help homeless people efficiently.

      Government has the capability to make some big positive differences, but the downside is that using the machinery of government to do anything comes with a lot of overhead, and this bill is just adding to that overhead with no real benefit.

  6. Work/study? by mwvdlee · · Score: 1

    I don't know about US tax laws, but aren't there some tax laws regarding work- or study-related costs like the situation the vast majority of open source developers is in. I don't know any FOSS developer who isn't either an IT worker or an IT student.

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    1. Re:Work/study? by Anonymous Coward · · Score: 0

      I suppose if the company you work for is fronting the costs, then they'd get the credit. And typically, if costs related to something you do aren't directly employment related (read business expense, and all related to having a business), then it's considered a hobby and isn't deductible, even if it is related to your job. As for education deductions, there's so many limitations on those.... When I did my masters, my company paid for most of it, but I was still typically out of pocket something like 3K a year. Couldn't deduct one cent of that.

  7. Re:Exactly what is wrong with tax codes by smooth+wombat · · Score: 1

    I accept all the responsibilities of owning that puppy. I don't expect my neighbor, or a person in another city to help me.

    Hey now, that's personal responsibility talk. We don't cater to such nonsense round these parts.

    You take your "I can take care of myself without leeching off others" and mosey on down the road. We here are proud of requiring others to hand over their money whether they want to or not so we can live the good life without having to worry bout none of that fancy responsibility stuff.

    --
    We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
  8. Of course you would, Timothy by Anonymous Coward · · Score: 0

    > I'd rather they require that any software developed at taxpayer expense be released as open source.
    Of course you would, Timothy. Just like your whiney demand for Microsoft to make their patents free (effectively subsidizing their competition). Children like free stuff.

    Taxpayers paid for it. Releasing it as open source makes it available to non-taxpayers (e.g. other states/countries). Keeping it closed source helps ensure that the benefits of that software are retained within the polis that funded it.

  9. Smart programmers don't re-invent the wheel, eithe by raymorris · · Score: 2

    > It's a good idea but the execution of it is not trivial.

    100% agreed. The biggest thing that jumps out at me, in terms of making that a -requirement-, is that 95% of software projects involve adding to existing systems, not writing an entire system from scratch. Even for a brand-new agency, you're going to use Active Directory or something similar, not author your own AD from scratch.

    At my last job, I spent three years writing software for a government agency in an environment which included a big GPLv3 system I was responsible for, which stored all of its data in Microsoft SQL server and ran on Windows, using the Microsoft database driver. It interfaced with legacy Scantron systems, using Scantron's API code under their license. Being non-stupid, I used a lot of libraries and copy-pasted functions that were under GPLv2, CC, and BSD licenses. There is no license that all the software I wrote could be released under. I did release a lot of it under GPLv3, but a -requirement- that it all be released under any specific type of license would mean we simply couldn't do the project at all, the code would never have been written and we'd still be stuck with paper and pencil Scantrons for everything.

  10. Look forward to even more by Anonymous Coward · · Score: 0

    Look forward to even more claims that open source is does nothing to promote women, lesbians, blacks, Irish, dog fuckers or what ever.

    1. Re:Look forward to even more by Anonymous Coward · · Score: 0

      Look forward to even more claims that open source is does nothing to promote women, lesbians, blacks, Irish, dog fuckers or what ever.

      I've found them to be totally unsympathetic to dog fuckers. All I can say is that blind guy shouldn't have bought his dog to the convention if he didn't want it fucked.

  11. Re:Exactly what is wrong with tax codes by tomhath · · Score: 1

    If you raise a puppy as a public service you might get your neighbors to pay at least some of the costs.

    One could argue that developing something useful as open source is also a public service, although I don't think this bill is the answer.

  12. Re:Exactly what is wrong with tax codes by j-beda · · Score: 1

    Do something special in taxes just for this class and me. Next thing, we have complicated State and Fed tax codes. Just like we do.

    Additionally, these sorts of credits which seem good in priniciple (giving an additional incentive to behaviour we thing is "good" like getting exercise or promoting children's education) often do not in fact result in a much increase in that behaviour, but rather just divert money to people who would be doing these things even without the incentives. When sold as benifits to the poor downtroden masses, often they end up being benifficial mostly to upper middle class taxpayers.

    Then there is the difficulty of keeping track of all of them. How much of a cost are they to the tax system? How many of them are there? Since they do not apear as line-items in annual budgets, they tend to make it more difficult to judge how much money we are spending in different areas.

  13. Where's my $200? by Anonymous Coward · · Score: 0

    I'm open sourcing my program to consecutively list all integers from 1 t 100.

  14. little, if any, value by Anonymous Coward · · Score: 0

    I've worked in 4 government agencies. Trust me, you don't want ~80% of the code. Absolute garbage.

    Hold your horses, though, lolbertarians. I walked away from 4 private sector coding jobs without even a single function in my notebook. They should've been embarrassed.

  15. What planet are you from? by Anonymous Coward · · Score: 0

    The idea makes sense - as if that had anything to do with the tax laws.

    Proprietary software vendors are deeply embedded in our political system.
    And they might lobby against a tax break for open source.

    If enough schools used open source to result in a demonstrated tax saving,
    you might have something to talk about.

    As it stands, the big boys control the market. They control the software
    that employers want to see on a resume. They control the kickbacks,

    GOOD LUCK!

  16. NY Bill by Anonymous Coward · · Score: 0

    I first read that as "Bill Nye."

    1. Re:NY Bill by Anonymous Coward · · Score: 0

      LOL, me too!

  17. Up to an annual maximum of $200 ? by Anonymous Coward · · Score: 0

    Great, now I can finally quit my day job !

  18. Re:Exactly what is wrong with tax codes by TsuruchiBrian · · Score: 1

    But what if I offer you $200? Now are you willing to further complicate an already over-complicated tax code?

  19. Re:Exactly what is wrong with tax codes by Anonymous Coward · · Score: 0

    As long as I make money preparing taxes for other people,
    there is no such thing as "an over-complicated tax code".

    BTW - Only 28 days left to file ;)

  20. Re:Exactly what is wrong with tax codes by mjtaylor24601 · · Score: 1

    You take your "I can take care of myself without leeching off others" and mosey on down the road.

    I assume that you paved that road yourself and didn't "leech off others" to do it for you ;-)

    --
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  21. Bill Nye????? by downright · · Score: 0

    Anybody else do the double take about "Bill NYE Would Provide Tax Credit For Open Source Contributors". Gotta love brain noise.

  22. Re:Exactly what is wrong with tax codes by smooth+wombat · · Score: 1

    The road benefits all. That is not leeching.

    Leeching is when you get to be as fat as you want, smoke as much as you want, do as many drugs as you want and expect, nay, demand everyone else around you be forced to pay to protect you from your own doings.

    The very opposite of what the OP said, not expect anyone else to care for the animal they have taken in.

    --
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  23. warning warning will robinson by Anonymous Coward · · Score: 0

    Beware of greeks bearing gifts. This sounds like step one for a state that has the highest taxes in the country to set the precident that open source contrubutuons are something to which tax oversight might apply. first they give you a tax credit, identify the taxable opportunity, then tax the crap out of it.

    1. Re: warning warning will robinson by Anonymous Coward · · Score: 0

      exactly....it wont take them long to come up with tax strategy where you have to pay taxes for using open source or congrubuting to it. they would tax you for taking a crap if they thought they could.

    2. Re: warning warning will robinson by Anonymous Coward · · Score: 0

      a politician trying to cook up a new way to raise revenue through new taxes.... nah... its for the children and those unfortunate among us who need a safety net so they can have a free apartment and free cable tv.

  24. dimothy continues to fail by Hognoxious · · Score: 1

    I'd rather they require that any software developed at taxpayer expense be released as open source.

    Great idea, having the Chinese and Russians poring over the F-35's avionics.

    If that's not giving you nightmares, imagine them getting their filthy commie hands on something that actually works.

    --
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    1. Re:dimothy continues to fail by Anonymous Coward · · Score: 0

      If that's not giving you nightmares, imagine them getting their filthy commie hands on something that actually works.

      Noooo, the skies will darken from the swarms of C-10 "Capitalist Pig" anti-tank support aircraft!

  25. Re:$200? What a joke by Anonymous Coward · · Score: 0

    And if you code the project professionally, even as an individual under the blanket of an LLC, you can too! Hazaa!!!!

    There's no evil scheme here. The door swings both ways.

  26. NY Bill by theGreyMuppet · · Score: 1

    What, the science guy?

  27. What does release as open source mean? by DidgetMaster · · Score: 1

    Can we do like Hillary Clinton did with her emails? Print the source code out on paper; release them a few pages at a time over a few years; and black out large portions of it after swearing that it didn't exist in the first place? Can we leave out whole functions or classes of objects while insisting they were private and only used to schedule our yoga classes or daughter's wedding? Can we make it so the only way certain people can get the code is with an FBI investigation and subpoenas from Congress?

  28. Re:$200? What a joke by Anonymous Coward · · Score: 0

    Only if you formed the business with the intent and eventually ability to make a profit. If you don't eventually show that profit or prove that you had a solid business plan that simply didn't come together, you'll get audited, fined (because it was a hobby not a business), and have the chance of being tossed in jail for tax fraud. Intent matters, but the big guys can lump in those costs against the profits from another section of their business.

    The door swings both ways, but you have to be a heavy weight to push it open as the wind is constantly blowing against it from the other side.