memojustificationa03381.txt

JUSTIFICATION:

"Open Source" refers to software offered for free online download along with
its instruction set ("source code"). The New York State Assembly currently uses
Open Source programs such as Mozilla for email, Firefox for web browsing, and
WebCal for electronic calendars. The Assembly's use of this software has led to
significant cost savings for the Assembly's operating budget. Once an Open
Source program is downloaded with its source code, anyone can view the
instructions, modify the program, and redistribute it with the same freedoms. A
2006 report authored by John Irons and Carl Malamud from the Center for
American Progress details how Open Source software provides a high social value
amongst the group, but a relatively low economic incentive for individual
developers. By allowing open access to the technology's source code, Open
Source software enhances a broader dissemination of knowledge and ideas.
Although large corporations such as IBM develop and use Open Source programs,
most Open Source software is written by individuals volunteering from home.
Currently, corporations and self-employed individuals who create Open Source
technology are eligible for a tax deduction for their software development
costs. The vast majority of Open Source software creators (individual
volunteers), however, do not receive this tax credit. This legislation creates
a similar tax credit incentive for individuals who currently have no means to
deduct these expenses. The tax credit would apply only to out-of-pocket
expenses such as Internet hosting and depreciated cost of capital expenses such
as computers and education. The increased incentive for individuals would
attract more Open Source developers to New York State, resulting in job
creation and a reinvigoration of our State's technology sector. Additionally,
an influx of Open Source software would lower operating costs for larger
agencies (such as the Assembly), by providing usable software without charge.