S T A T E   O F   N E W   Y O R K
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                                  10662

                          I N  A S S E M B L Y

                             April 13, 2010
                               ___________

Introduced  by  M.  of  A. HYER-SPENCER -- read once and referred to the
  Committee on Economic Development, Job Creation, Commerce and Industry

AN ACT to amend the general municipal law, the real  property  tax  law,
  the  general  city  law,  the  tax  law and the public service law, in
  relation to enacting the New York  state  green  economic  development
  zones act

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act shall be known and may be cited as the  "New  York
state green economic development zones act."
  S 2. The general municipal law is amended by adding a new article 18-D
to read as follows:
                               ARTICLE 18-D
                    GREEN ECONOMIC DEVELOPMENT ZONES

SECTION 974. SHORT TITLE.
        974-A. LEGISLATIVE FINDINGS AND DECLARATION.
        974-B. DEFINITIONS.
        974-C. CRITERIA FOR GREEN ECONOMIC DEVELOPMENT ZONE DESIGNATION.
        974-D. RESPONSIBILITIES OF THE COMMISSIONER.
        974-E. DESIGNATION OF GREEN ECONOMIC DEVELOPMENT ZONE.
        974-F. APPLICATION  FOR  GREEN  ECONOMIC DEVELOPMENT ZONE DESIG-
                 NATION.
        974-G. GREEN ECONOMIC DEVELOPMENT ZONE DEVELOPMENT PLAN.
        974-H. LOCAL ADMINISTRATION OF GREEN ECONOMIC DEVELOPMENT ZONE.
        974-I. DESIGNATION OF  GREEN  ECONOMIC  DEVELOPMENT  ZONE  AS  A
                 FEDERAL GREEN ENTERPRISE ECONOMIC DEVELOPMENT ZONE.
        974-J. DIVISION OF TAXES BY GOVERNMENT BODIES.
        974-K. DISPOSITION OF PROPERTY.
        974-L. TERMINATION  OR REVERSION OF A GREEN ECONOMIC DEVELOPMENT
                 ZONE.
  S 974.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "NEW YORK GREEN ECONOMIC DEVELOPMENT ZONES ACT".

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16796-02-0
              

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  S  974-A.    LEGISLATIVE FINDINGS AND DECLARATION.  IT IS HEREBY FOUND
AND DECLARED THAT THERE EXISTS WITHIN THE STATE THE  NEED  TO  STIMULATE
EMPLOYMENT  AND  MORE EFFICIENT TRANSPORTATION BY UTILIZING THE EMERGING
GREEN TECHNOLOGY THAT WILL REDUCE THE OUTPUT OF CARBON IN THE ATMOSPHERE
OF  THE  STATE,  IMPROVE  THE  STATE'S ENVIRONMENTAL QUALITY OF LIFE AND
GENERAL HEALTH OF THE RESIDENTS. THIS NEED REQUIRES THE STATE GOVERNMENT
TO TARGET AREAS FOR EXTRAORDINARY ECONOMIC DEVELOPMENT PROGRAMS IN ORDER
TO STIMULATE PRIVATE INVESTMENT, PRIVATE BUSINESS  DEVELOPMENT  AND  JOB
CREATION.  IT  IS THE PUBLIC POLICY OF THE STATE TO OFFER SPECIAL INCEN-
TIVES AND ASSISTANCE THAT WILL PROMOTE  THE  DEVELOPMENT  OF  NEW  GREEN
BUSINESSES AND THE EXPANSION OF EXISTING BUSINESSES WITHIN PRE-DESIGNAT-
ED  AREAS  AND  TO  DO SO WITHOUT ENCOURAGING THE RELOCATION OF BUSINESS
INVESTMENT FROM OTHER AREAS OF  THE  STATE.  IT  IS  FURTHER  FOUND  AND
DECLARED  THAT  IT  IS  THE  PUBLIC POLICY OF THE STATE TO ACHIEVE THESE
GOALS THROUGH THE MUTUAL COOPERATION OF ALL LEVELS OF  STATE  AND  LOCAL
GOVERNMENT AND THE BUSINESS COMMUNITY.
  S  974-B.  DEFINITIONS.  AS  USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS  UNLESS  THE  CONTEXT  SHALL  INDICATE
ANOTHER OR DIFFERENT MEANING OR INTENT:
  (A)  "APPLICANT"  SHALL MEAN THE COUNTY, CITY, TOWN OR VILLAGE SUBMIT-
TING AN APPLICATION IN THE MANNER AUTHORIZED BY  LOCAL  LAW  FOR  DESIG-
NATION OF AN AREA AS A GREEN ECONOMIC DEVELOPMENT ZONE.
  (B)  "ENTERPRISE"  SHALL MEAN A BUSINESS ENTERPRISE THAT IS AUTHORIZED
TO DO BUSINESS IN THIS STATE AND IS INDEPENDENTLY OWNED AND OPERATED AND
FOUND TO COMPLY WITH GREEN ECONOMIC DEVELOPMENT ZONE CRITERIA.
  (C) "GREEN BUSINESS" SHALL MEAN A BUSINESS THAT HAS ITS PRIMARY SOURCE
OF REVENUE THE PROVISION OF SERVICES IN THE FOLLOWING AREAS:  (1)  GREEN
HOUSE  EMISSION  REDUCTION  TECHNOLOGIES;  (2) THE ASSEMBLY OF ESSENTIAL
COMPONENTS FOR A CLEAN-FUELED VEHICLE; OR (3) ENERGY EFFICIENCY TECHNOL-
OGIES; WHERE
  (A)  "GREENHOUSE  EMISSION  REDUCTION  TECHNOLOGIES"  SHALL  MEAN  AND
INCLUDE,  BUT  NOT  BE  LIMITED TO: (I) COGENERATION TECHNOLOGIES, WHICH
SHALL MEAN ANY ONE OF THE SEVERAL TECHNOLOGIES WHEREIN WASTE  HEAT  FROM
ON-SITE  ELECTRICAL  GENERATION PROCESS IS RECOVERED TO PROVIDE STEAM OR
HOT WATER TO MEET ON-SITE NEEDS, SUCH AS HEATING AND/OR AIR CONDITIONING
AND WHICH ATTAINS  OVERALL  SYSTEM  EFFICIENCY  AS  ESTABLISHED  BY  THE
DEPARTMENT  OF  ENVIRONMENTAL CONSERVATION, CONSIDERING BOTH THERMAL AND
ELECTRICAL PROCESS TOGETHER; (II) FURNACE AND  BOILER  REPLACEMENTS  AND
RETROFITS,  PROVIDED  THAT  THE  NEW OR RETROFITTED FURNACES AND BOILERS
SHALL NOT AT ANY TIME OPERATE ON DIESEL FUEL WITH SULFUR CONTENT GREATER
THAN 0.05 PERCENT BY WEIGHT; (III) THE PRODUCTION OF CLEAN-FUELED  VEHI-
CLES  OR  THE  CONVERSION OF EXISTING VEHICLES TO CLEAN-FUELED VEHICLES;
AND (IV) OTHER MEASURES THAT WILL  REDUCE  THE  DEMAND  FOR  AND/OR  THE
CONSUMPTION  OF  ENERGY INCLUDING FUELS, AS DETERMINED BY THE DEPARTMENT
OF ENVIRONMENTAL CONSERVATION WITH THE NEW YORK  STATE  ENERGY  RESEARCH
AND DEVELOPMENT AUTHORITY;
  (B)  "CLEAN-FUELED VEHICLE" SHALL MEAN ANY MOTOR VEHICLE AS DEFINED IN
SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE  AND  TRAFFIC  LAW,  THAT
USES  ELECTRICITY,  INCLUDING  ELECTRICITY  EITHER  STORED  OR GENERATED
ON-BOARD, AS ITS PRIMARY MOTIVE FORCE, OR THAT IS FUELED BY NATURAL GAS,
PROPANE, HYDROGEN OR ANY OTHER NON-CARBON PRODUCING FUEL;
  (C) "ENERGY EFFICIENCY  TECHNOLOGIES"  SHALL  MEAN  TECHNOLOGIES  THAT
REDUCE  THE CONSUMPTION OF ELECTRICITY INCLUDING BUT NOT LIMITED TO: (I)
REPLACEMENT OF INEFFICIENT LIGHTING FIXTURES; (II) APPLIANCES AND EQUIP-
MENT THAT MEET ENERGY EFFICIENCY PERFORMANCE STANDARDS AS IDENTIFIED  IN
ARTICLE  SIXTEEN  OF  THE ENERGY LAW; AND (III) OTHER SUCH MEASURES THAT

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WILL REDUCE THE DEMAND FOR AND/OR CONSUMPTION OF ELECTRICITY  AS  DETER-
MINED  BY  THE NEW YORK STATE ENERGY AND RESEARCH DEVELOPMENT AUTHORITY;
AND
  (D) "RENEWABLE ENERGY DEVELOPMENT" SHALL MEAN THE PURCHASE AND INSTAL-
LATION  OF  TECHNOLOGIES DESIGNED TO CONVERT RENEWABLE ENERGY INTO ELEC-
TRICITY OR OTHER END USES, WHERE RENEWABLE ENERGY INCLUDES SOLAR,  WIND,
TIDAL,  FUEL  CELL,  GEOTHERMAL  AND  HYDROGEN,  BUT  DOES  NOT  INCLUDE
COMBUSTION OR PYROLYSIS OF SOLID WASTE AS DEFINED IN SECTION 27-0701  OF
THE ENVIRONMENTAL CONSERVATION LAW OR ELECTRICITY GENERATED FROM NUCLEAR
POWER PLANTS.
  (D)  "COMMISSIONER"  SHALL  MEAN THE COMMISSIONER OF ECONOMIC DEVELOP-
MENT.
  S 974-C. CRITERIA FOR GREEN ECONOMIC DEVELOPMENT ZONE DESIGNATION.  TO
BE  ELIGIBLE  FOR  DESIGNATION  AS A GREEN ECONOMIC DEVELOPMENT ZONE THE
AREA MUST BE DESIGNATED BY THE FEDERAL GOVERNMENT AS  A  GREEN  ECONOMIC
DEVELOPMENT  ZONE  OR GREEN ENTERPRISE ZONE AND BE DEFINED BY PRE-DESIG-
NATED BOUNDARIES.
  S 974-D. RESPONSIBILITIES OF THE COMMISSIONER. THE COMMISSIONER SHALL:
  (A) AFTER CONSULTATION WITH ALL APPROPRIATE DIRECTORS AND  COMMISSION-
ERS  OF  STATE AGENCIES PROMULGATE REGULATIONS GOVERNING THE CRITERIA OF
ELIGIBILITY FOR LOCAL GREEN ECONOMIC DEVELOPMENT ZONE DESIGNATIONS;
  (B) RECEIVE AND REVIEW APPLICATIONS FOR DESIGNATION OF AREAS AS  LOCAL
GREEN ECONOMIC DEVELOPMENT ZONES;
  (C)  PROMULGATE  REGULATIONS, IN CONSULTATION WITH THE COMMISSIONER OF
LABOR, FOR PROGRAM EVALUATION AND COORDINATE IMPLEMENTATION OF AN EVALU-
ATION SYSTEM, WHICH IS CAPABLE OF COMPILING AND ANALYZING  ACCURATE  AND
CONSISTENT  INFORMATION NECESSARY FOR AN ASSESSMENT OF WHETHER STATUTORY
OBJECTIVES AND CRITERIA ARE BEING MET; AND
  (D) REVIEW PERFORMANCE OBJECTIVES AND PROGRESS IN MEETING OBJECTIVES.
  S 974-E. DESIGNATION OF GREEN ECONOMIC  DEVELOPMENT  ZONE.  THE  GREEN
ECONOMIC  DEVELOPMENT  ZONE SHALL BE IN COORDINATION AND CORRESPOND WITH
THE FEDERAL DESIGNATION OF GREEN ENTERPRISE DEVELOPMENT ZONES.
  S 974-F. APPLICATION FOR GREEN ECONOMIC DEVELOPMENT ZONE  DESIGNATION.
A  CITY,  COUNTY  (OTHER  THAN A COUNTY WHOLLY CONTAINED WITHIN A CITY),
TOWN OR VILLAGE MAY ADOPT A LOCAL LAW AUTHORIZING SUCH MUNICIPAL  CORPO-
RATION TO PREPARE AND SUBMIT AN APPLICATION TO THE DEPARTMENT OF ECONOM-
IC  DEVELOPMENT  FOR  DESIGNATION OF AN AREA THEREIN AS A GREEN ECONOMIC
DEVELOPMENT ZONE; AND THE ADOPTION OF SUCH A LOCAL LAW BY THE  MUNICIPAL
CORPORATION WITHIN WHICH THE PROPOSED GREEN ECONOMIC DEVELOPMENT ZONE IS
TO  BE  LOCATED SHALL BE A PREREQUISITE TO THE SUBMISSION OF AN APPLICA-
TION FOR SUCH DESIGNATION. SUCH LOCAL LAW SHALL ALSO DESIGNATE THE BOUN-
DARIES OF SUCH AREA.
  S 974-G. GREEN ECONOMIC DEVELOPMENT ZONE  DEVELOPMENT  PLAN.  A  GREEN
ECONOMIC  DEVELOPMENT  ZONE  DEVELOPMENT  PLAN  SHALL  BE FILED WITH THE
DEPARTMENT OF ECONOMIC DEVELOPMENT, AND WITH THE  LOCAL  GREEN  ECONOMIC
DEVELOPMENT  ZONE  BODY,  AND SHALL DEMONSTRATE THE METHODS BY WHICH THE
APPLICANT INTENDS TO PROMOTE THE DEVELOPMENT OF NEW GREEN  BUSINESS  AND
THE  EXPANSION  OF  EXISTING BUSINESS DEVELOPING GREEN TECHNOLOGY WITHIN
THE GREEN ECONOMIC DEVELOPMENT ZONE.
  S 974-H. LOCAL ADMINISTRATION OF GREEN ECONOMIC DEVELOPMENT ZONE.  THE
LOCAL  GREEN  ECONOMIC  DEVELOPMENT  ZONE  CERTIFICATION SHALL BE BY THE
LOCAL GREEN ECONOMIC DEVELOPMENT ZONE BODY.
  S 974-I. DESIGNATION OF GREEN ECONOMIC DEVELOPMENT ZONE AS  A  FEDERAL
GREEN  ENTERPRISE  ECONOMIC DEVELOPMENT ZONE.  (FEDERAL GREEN ENTERPRISE
ECONOMIC DEVELOPMENT ZONE PROPOSED)

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  S 974-J. DIVISION OF TAXES BY GOVERNMENT BODIES. THE GOVERNING BODY OF
ANY CITY, TOWN, VILLAGE OR COUNTY IN WHICH A GREEN ECONOMIC  DEVELOPMENT
ZONE  IS LOCATED IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL LAW
PROVIDING THAT ANY TAXES LEVIED BY OR ON  BEHALF  OF  SUCH  CITY,  TOWN,
VILLAGE  OR COUNTY UPON TAXABLE REAL PROPERTY IN SUCH ZONE MAY BE EXEMPT
FOR A TEN-YEAR PERIOD.
  S 974-K. DISPOSITION OF PROPERTY. (A) NOTWITHSTANDING ANY PROVISION OF
ANY OTHER LAW TO THE CONTRARY, IN ORDER TO FURTHER THE PURPOSES  OF  THE
GREEN  ECONOMIC  DEVELOPMENT ZONE, ANY REAL OR PERSONAL PROPERTY LOCATED
WITHIN A GREEN ECONOMIC DEVELOPMENT ZONE AND OWNED BY ANY LOCAL  GOVERN-
MENTAL ENTITY IN WHOSE JURISDICTION A GREEN ECONOMIC DEVELOPMENT ZONE IS
LOCATED,  MAY  BE  SOLD  OR  LEASED FOR A TERM NOT EXCEEDING NINETY-NINE
YEARS TO A PRIVATE USER, A COMMUNITY-BASED ORGANIZATION, A PUBLIC  BENE-
FIT  CORPORATION  OR  ANY  OTHER  PERSON;  PROVIDED,  HOWEVER, THAT EACH
CONTRACT FOR SUCH SALE, AND EACH SUCH LEASE, SHALL OBLIGATE THE BUYER OR
LESSEE TO COMPLY WITH THE PROVISIONS  OF  THIS  ARTICLE  AND  THE  GREEN
ECONOMIC  DEVELOPMENT  ZONE PLAN FILED WITH THE COMMISSIONER PURSUANT TO
SECTION NINE HUNDRED SEVENTY-FOUR-G OF THIS  ARTICLE.  SUCH  OBLIGATIONS
CONTAINED  IN  A  CONTRACT  FOR  THE SALE OF REAL PROPERTY SHALL SURVIVE
DELIVERY OF THE DEED. A BREACH BY THE BUYER  OR  LESSEE  OF  A  MATERIAL
OBLIGATION  OF  SUCH  CONTRACT  OR LEASE SHALL, IN ADDITION TO ANY OTHER
REMEDIES AVAILABLE TO THE SELLER OR LESSOR UNDER THE CONTRACT, TERMINATE
THE ELIGIBILITY OF THE BUYER OR LESSEE FOR ANY BENEFITS PROVIDED IN THIS
ARTICLE.
  S 974-L. TERMINATION OR REVERSION  OF  A  GREEN  ECONOMIC  DEVELOPMENT
ZONE. (A) EXCEPT AS PROVIDED IN THIS SECTION, ANY DESIGNATION OF AN AREA
AS  A  GREEN ECONOMIC DEVELOPMENT ZONE SHALL REMAIN IN EFFECT DURING THE
PERIOD BEGINNING ON THE DATE OF DESIGNATION AND ENDING TEN YEARS  THERE-
AFTER.  AFTER  CONSULTATION  WITH  THE  DIRECTOR  OF  THE BUDGET AND THE
COMMISSIONER OF LABOR, THE COMMISSIONER MAY TERMINATE THE DESIGNATION OF
AN AREA AS A GREEN ECONOMIC DEVELOPMENT ZONE UPON A FINDING THAT (1) THE
APPLICANT HAS FAILED  SUBSTANTIALLY  TO  IMPLEMENT  THE  GREEN  ECONOMIC
DEVELOPMENT ZONE DEVELOPMENT PLAN WITHIN THE TIME STATED THEREIN; OR (2)
THERE HAS BEEN NO SUBSTANTIAL BUSINESS DEVELOPMENT OR JOB CREATION WITH-
IN  THE AREA DESIGNATED AS A GREEN ECONOMIC DEVELOPMENT ZONE WITHIN FIVE
YEARS AFTER SUCH DESIGNATION; PROVIDED,  HOWEVER,  THAT  NO  TERMINATION
SHALL OCCUR UNLESS AND UNTIL WRITTEN NOTICE HAS BEEN GIVEN TO THE APPLI-
CANT  AND A PUBLIC HEARING HAS BEEN HELD THIRTY DAYS PRIOR TO THE EFFEC-
TIVE DATE OF SUCH TERMINATION.
  (B) UPON THE TERMINATION OF  A  GREEN  ECONOMIC  DEVELOPMENT  ZONE  AS
PROVIDED  IN  THIS  SECTION,  THE COMMISSIONER SHALL FILE NOTICE OF SUCH
TERMINATION.
  S 3. Subdivision 2 of section 499-aa of the real property tax  law  is
amended by adding a new paragraph (b-1) to read as follows:
  (B-1)  IN  ADDITION  TO THE ABATEMENT ZONE SET FORTH IN PARAGRAPHS (A)
AND (B) OF THIS SUBDIVISION, IN THE CITY OF NEW YORK THE ABATEMENT  ZONE
SHALL INCLUDE A "GREEN ZONE" AS DEFINED IN THIS SECTION.
  S  4.  Paragraphs (b), (c) and (d) of subdivision 10 of section 499-aa
of the real property tax law, paragraphs (b)  and  (c)  as  amended  and
paragraph  (d)  as added by chapter 403 of the laws of 2006, are amended
to read as follows:
  (b) With respect to the abatement zone defined  in  paragraph  (b)  OR
(B-1)  of subdivision two of this section, premises located in an eligi-
ble building that are (i) occupied or used as offices (including  ancil-
lary  uses) or are occupied or used for other lawful commercial business
activities, but not premises occupied or used as  retail  space  or  for

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hotel  or  residential purposes; or (ii) occupied or used for industrial
and manufacturing activities (including ancillary uses) OR  BY  A  GREEN
BUSINESS IN A GREEN ZONE, but not premises occupied or used for hotel or
residential purposes; and
  (c)  With  respect  to  the abatement zone defined in paragraph (c) of
subdivision two of this section, premises located in an eligible  build-
ing  that  are  occupied or used for industrial and manufacturing activ-
ities (including ancillary uses) OR USED BY A GREEN BUSINESS IN A  GREEN
ZONE,  but  not  premises  occupied  or  used  for  hotel or residential
purposes.
  (d) Notwithstanding the provisions of subparagraph (ii)  of  paragraph
(b)  or paragraph (c) of this subdivision, premises located in an eligi-
ble building shall not be eligible for the tax abatement granted  pursu-
ant  to subdivision one-b of section four hundred ninety-nine-bb of this
title unless at least fifty percent of the aggregate floor area of  such
premises is occupied or used for industrial and manufacturing activities
(exclusive  of  ancillary  uses) as defined in subdivision fourteen-a of
this section OR BY A GREEN BUSINESS AS DEFINED IN SUBDIVISION FOURTEEN-B
OF THIS SECTION.
  S 5. Section 499-aa of the real property tax law is amended by  adding
two new subdivisions 14-b and 14-c to read as follows:
  14-B.  "GREEN  BUSINESS."  A  "GREEN BUSINESS" SHALL BE DEFINED AS ONE
THAT HAS ITS PRIMARY SOURCE OF REVENUE THE PROVISION OF SERVICES IN  THE
FOLLOWING  AREAS:  (I)  GREEN HOUSE GAS EMISSION REDUCTION TECHNOLOGIES;
(II) THE ASSEMBLY OF ESSENTIAL COMPONENTS FOR A CLEAN-FUELED VEHICLE; OR
(III) ENERGY EFFICIENCY TECHNOLOGIES. FOR PURPOSES OF  THIS  TITLE,  THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "GREENHOUSE  GAS  EMISSION REDUCTION TECHNOLOGIES" SHALL MEAN AND
INCLUDE BUT NOT BE LIMITED  TO:  (I)  COGENERATION  TECHNOLOGIES,  WHICH
SHALL  MEAN  ANY ONE OF THE SEVERAL TECHNOLOGIES WHEREIN WASTE HEAT FROM
ON-SITE ELECTRICAL GENERATION PROCESS IS RECOVERED TO PROVIDE  STEAM  OR
HOT WATER TO MEET ON-SITE NEEDS, SUCH AS HEATING AND/OR AIR CONDITIONING
AND  WHICH  ATTAINS  OVERALL  SYSTEM  EFFICIENCY  AS  ESTABLISHED BY THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, CONSIDERING BOTH  THERMAL  AND
ELECTRICAL  PROCESS  TOGETHER;  (II) FURNACE AND BOILER REPLACEMENTS AND
RETROFITS, PROVIDED THAT NEW OR RETROFITTED FURNACES AND  BOILERS  SHALL
NOT  AT  ANYTIME OPERATE ON DIESEL FUEL WITH SULFUR CONTENT GREATER THAN
0.05 PERCENT BY WEIGHT; (III) THE PRODUCTION OF CLEAN-FUELED VEHICLES OR
THE CONVERSION OF EXISTING VEHICLES TO CLEAN FUELED VEHICLES;  AND  (IV)
OTHER MEASURES THAT WILL REDUCE THE DEMAND FOR AND/OR THE CONSUMPTION OF
ENERGY INCLUDING FUELS, AS DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY.
  (B)  "CLEAN-FUELED VEHICLE" SHALL MEAN ANY MOTOR VEHICLE AS DEFINED IN
SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE  AND  TRAFFIC  LAW,  THAT
USES  ELECTRICITY,  INCLUDING  ELECTRICITY  EITHER  STORED  OR GENERATED
ON-BOARD, AS ITS PRIMARY MOTIVE FORCE, OR THAT IS FUELED BY NATURAL GAS,
PROPANE, OR HYDROGEN.
  (C) "ENERGY EFFICIENCY TECHNOLOGIES"   SHALL  MEAN  TECHNOLOGIES  THAT
REDUCE  THE CONSUMPTION OF ELECTRICITY INCLUDING BUT NOT LIMITED TO: (I)
REPLACEMENT OF INEFFICIENT LIGHTING FIXTURES; (II) APPLIANCES AND EQUIP-
MENT THAT MEET ENERGY EFFICIENCY PERFORMANCE STANDARDS AS IDENTIFIED  IN
ARTICLE  SIXTEEN  OF  THE ENERGY LAW; AND (III) OTHER SUCH MEASURES THAT
WILL REDUCE THE DEMAND FOR AND/OR  THE  CONSUMPTION  OF  ELECTRICITY  AS
DETERMINED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHOR-
ITY.

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  (D) "RENEWABLE ENERGY DEVELOPMENT" SHALL MEAN THE PURCHASE AND INSTAL-
LATION  OF  TECHNOLOGIES DESIGNED TO CONVERT RENEWABLE ENERGY INTO ELEC-
TRICITY OR OTHER END USES, WHERE RENEWABLE ENERGY INCLUDES SOLAR,  WIND,
TIDAL,  FUEL  CELL,  GEOTHERMAL  AND  HYDROGEN,  BUT  DOES  NOT  INCLUDE
COMBUSTION  OR PYROLOSIS OF SOLID WASTE AS DEFINED IN SECTION 27-0701 OF
THE ENVIRONMENTAL CONSERVATION LAW OR ELECTRICITY GENERATED FROM NUCLEAR
POWER PLANTS.
  14-C. "GREEN ZONE." A GREEN ZONE SHALL BE THE AREA IN THE  BOROUGH  OF
STATEN  ISLAND  DEFINED BY THE FOLLOWING AREA BASED ON THE NEW YORK CITY
DEPARTMENT OF CITY PLANNING ZONING MAPS: BEGINNING AT  THE  INTERSECTION
OF THE NORTH SIDE OF THE FOOT OF THE GOETHALS BRIDGE AND THE US PIERHEAD
AND  BULKHEAD  LINE;  THENCE  RUNNING  EASTERLY  3,214.78 FEET ALONG AND
PARALLEL TO THE NORTH SIDE OF  THE  GEOTHALS  BRIDGE  EXTENSION  TO  THE
CENTERLINE  OF  WESTERN  AVENUE;  THENCE RUNNING NORTH 93.71 FEET TO THE
CENTERLINE OF GOETHALS ROAD NORTH; THENCE  RUNNING  EAST  5,909.12  FEET
ALONG  AND  PARALLEL TO THE SOUTH SIDE OF GEOTHALS ROAD NORTH TO CENTER-
LINE OF SOUTH AVENUE; THENCE RUNNING SOUTH 433.81 FEET ALONG AND  PARAL-
LEL  TO THE WEST SIDE OF SOUTH AVENUE TO THE CENTERLINE OF FAHEY AVENUE;
THENCE RUNNING EAST 424.89 FEET ALONG AND PARALLEL TO THE SOUTH SIDE  OF
FAHEY  AVENUE  TO  THE CENTERLINE OF FELTON STREET; THENCE RUNNING SOUTH
1,314.02 FEET ALONG AND PARALLEL TO THE WEST SIDE OF  FELTON  STREET  TO
THE  CENTERLINE OF LAMBERTS LANE; THENCE RUNNING SOUTH 790.62 FEET ALONG
THE FELTON STREET LINE TO THE INTERSECTION OF GRAHAM AVENUE  AND  LANDER
AVENUE;  THENCE  RUNNING   SOUTH 3,413.10 FEET ALONG AND PARALLEL TO THE
WEST SIDE OF GRAHAM AVENUE  TO  THE  CENTERLINE  OF  VICTORY  BOULEVARD;
THENCE  RUNNING SOUTHEAST 3,114.21 ALONG THE WEST SIDE OF VICTORY BOULE-
VARD TO THE CENTERLINE OF TRAVIS AVENUE; THENCE  RUNNING  EAST  5,030.20
FEET  ALONG  AND  PARALLEL  TO  THE  SOUTH  SIDE OF TRAVIS AVENUE TO THE
CENTERLINE OF RICHMOND AVENUE; THENCE RUNNING SOUTH 12,265.02 FEET ALONG
AND PARALLEL TO THE WEST SIDE OF RICHMOND AVENUE TO  THE  CENTERLINE  OF
ARTHUR KILL ROAD; THENCE RUNNING WEST 14,266.19  FEET ALONG AND PARALLEL
TO  THE  NORTH  SIDE  OF ARTHUR KILL ROAD TO THE CENTERLINE OF ROSSVILLE
AVENUE; THENCE RUNNING NORTH 650 FEET ALONG THE LINE OF ROSSVILLE AVENUE
TO THE POINT OF THE US PIERHEAD AND BULKHEAD LINE; THENCE RUNNING  NORTH
34,553.83  FEET  ALONG  AND PARALLEL TO THE EAST SIDE OF THE US PIERHEAD
AND BULKHEAD LINE TO THE POINT AND PLACE OF THE BEGINNING.
  S 6. Paragraph (b) of subdivision 28 of section  499-aa  of  the  real
property  tax  law,  as  added  by  chapter  403 of the laws of 2006, is
amended to read as follows:
  (b) For eligible premises defined in subparagraph  (ii)  of  paragraph
(b)  or paragraph (c) of subdivision ten of this section, the percentage
of the eligible building's aggregate floor area allocated to the  eligi-
ble  premises  to  be  occupied or used for industrial and manufacturing
activities OR BY A GREEN BUSINESS IN A GREEN ZONE, as defined in [subdi-
vision] SUBDIVISIONS fourteen-a AND FOURTEEN-B, AS THE CASE MAY  BE,  of
this  section; provided that where the eligible premises includes expan-
sion premises, the "tenant's percentage share" shall  be  calculated  on
the  basis  of  the  eligible  building's aggregate floor area allocated
solely to expansion premises to be occupied or used for  industrial  and
manufacturing activities OR BY THE GREEN BUSINESS IN THE GREEN ZONE.
  S 7.  Section 499-bb of the real property tax law is amended by adding
a new subdivision 1-c to read as follows:
  1-C.  WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, ELIGI-
BLE BUILDINGS CONTAINING ELIGIBLE PREMISES AS  DEFINED  IN  SUBPARAGRAPH
(II)  OF  PARAGRAPH (B) OR PARAGRAPH (C) OF SUBDIVISION TEN AND OCCUPIED
BY GREEN BUSINESSES IN A GREEN ZONE AS DEFINED BY SUBDIVISION FOURTEEN-B

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OF SECTION FOUR HUNDRED NINETY-NINE-AA OF THIS TITLE OCCUPIED OR USED BY
A TENANT PURSUANT TO A LEASE HAVING A  LEASE  COMMENCEMENT  DATE  ON  OR
AFTER  JULY  FIRST,  TWO  THOUSAND TEN WITH AN INITIAL LEASE TERM OF NOT
LESS THAN THREE YEARS, SHALL RECEIVE AN ABATEMENT OF REAL PROPERTY TAXES
FOR EACH YEAR OF THE BENEFIT PERIOD EQUAL TO THE PRODUCT OBTAINED BY (I)
MULTIPLYING  THE TENANT'S  PERCENTAGE SHARE BY THE NUMBER OF SQUARE FEET
IN THE ELIGIBLE BUILDING, AS LISTED ON THE RECORDS OF THE DEPARTMENT  OF
FINANCE,  AND  (II) MULTIPLYING THE PRODUCT OBTAINED IN PARAGRAPH (I) OF
THIS SUBDIVISION BY THE ABATEMENT BASE.
  S 8. Subdivision (a) of section 25-y  of  the  general  city  law,  as
amended  by  chapter  149  of  the  laws  of 1999, is amended to read as
follows:
  (a) "Eligible business" means any person  subject  to  a  tax  imposed
under  a local law enacted pursuant to part two or three of section one,
or section two, of chapter seven hundred  seventy-two  of  the  laws  of
nineteen hundred sixty-six or a gross receipts tax imposed under a local
law enacted pursuant to subdivision (a) of section twelve hundred one of
the  tax  law  that:  (1) has been conducting substantial business oper-
ations at one or more business locations outside an  eligible  area  for
the  twenty-four  consecutive  months  immediately preceding the taxable
year during which such eligible business relocates as defined in  subdi-
vision  (j) of this section OR, IF A GREEN BUSINESS, HAS BEEN CONDUCTING
SUBSTANTIAL BUSINESS OPERATIONS OUTSIDE OF A GREEN ZONE; and (2)  on  or
after  May  twenty-seventh,  nineteen  hundred eighty-seven relocates as
defined in subdivision (j) of this section all or part of such  business
operations  OR IF A GREEN BUSINESS HAS RELOCATED INTO A GREEN ZONE AFTER
JULY FIRST, TWO THOUSAND TEN; and (3) either (i) on or after  May  twen-
ty-seventh,  nineteen  hundred eighty-seven first enters into a contract
to purchase or lease the premises to which it relocates  as  defined  in
subdivision  (j)  of  this  section,  or  a  parcel  on  which  will  be
constructed such premises, or (ii) as of  May  twenty-seventh,  nineteen
hundred  eighty-seven  owns such parcel or premises and has not prior to
such date made application for benefits pursuant to a local law  enacted
in  accordance with title two-D of article four of the real property tax
law OR IF A GREEN BUSINESS, ON OR AFTER JULY FIRST,  TWO  THOUSAND  TEN,
ENTERS INTO A CONTRACT TO PURCHASE OR LEASE PREMISES IN A GREEN ZONE.
  S 9. Section 25-y of the general city law is amended by adding two new
subdivisions (a-1) and (a-2) to read as follows:
  (A-1)  "GREEN  BUSINESS" MEANS ANY PERSON THAT CONDUCTS ELIGIBLE GREEN
ACTIVITIES AS DEFINED IN THIS  SUBDIVISION  AND  IS  SUBJECT  TO  A  TAX
IMPOSED  UNDER  A  LOCAL  LAW  ENACTED  PURSUANT TO PART TWO OR THREE OF
SECTION ONE, OR SECTION TWO, OF CHAPTER SEVEN HUNDRED SEVENTY-TWO OF THE
LAWS OF NINETEEN HUNDRED SIXTY-SIX OR A GROSS RECEIPTS TAX IMPOSED UNDER
A LOCAL LAW ENACTED  PURSUANT  TO  SUBDIVISION  (A)  OF  SECTION  TWELVE
HUNDRED ONE OF THE TAX LAW THAT HAS BEEN CONDUCTING SUBSTANTIAL BUSINESS
OPERATIONS  AT  ONE  OR  MORE BUSINESS LOCATIONS OUTSIDE A GREEN ZONE AS
DEFINED IN THIS SECTION AND ON OR AFTER JULY  FIRST,  TWO  THOUSAND  TEN
MOVES  INTO  THE  GREEN  ZONE. FOR PURPOSES OF THIS SUBDIVISION ELIGIBLE
GREEN ACTIVITIES SHALL INCLUDE: THE PROVISION OF SERVICES IN THE FOLLOW-
ING AREAS: (1) GREEN HOUSE GAS EMISSION REDUCTION TECHNOLOGIES; (2)  THE
ASSEMBLY  OF ESSENTIAL COMPONENTS FOR A CLEAN-FUELED VEHICLE; (3) ENERGY
EFFICIENCY TECHNOLOGIES; WHERE
  (A) "GREENHOUSE GAS EMISSION REDUCTION TECHNOLOGIES: SHALL INCLUDE BUT
NOT BE LIMITED TO: (I) COGENERATION TECHNOLOGIES, WHICH SHALL  MEAN  ANY
ONE  OF  THE  SEVERAL TECHNOLOGIES WHEREIN WASTE HEAT FROM ON-SITE ELEC-
TRICAL GENERATION PROCESS IS RECOVERED TO PROVIDE STEAM OR HOT WATER  TO

A. 10662                            8

MEET  ON-SITE  NEEDS,  SUCH  AS HEATING AN/OR AIR CONDITIONING AND WHICH
ATTAINS OVERALL SYSTEM EFFICIENCY AS ESTABLISHED BY  THE  DEPARTMENT  OF
ENVIRONMENTAL  CONSERVATION,  CONSIDERING  BOTH  THERMAL  AND ELECTRICAL
PROCESS  TOGETHER;  (II)  FURNACE AND BOILER REPLACEMENTS AND RETROFITS,
PROVIDED THAT NEW OR RETROFITTED  FURNACES  AND  BOILERS  SHALL  NOT  AT
ANYTIME  OPERATE  ON  DIESEL  FUEL WITH SULFUR CONTENT GREATER THAN 0.05
PERCENT BY WEIGHT; (III) THE PRODUCTION OF CLEAN FUELED VEHICLES OR  THE
CONVERSION OF EXISTING VEHICLES TO CLEAN FUELED VEHICLES; AND (IV) OTHER
MEASURES THAT WILL REDUCE THE DEMAND FOR AND/OR THE CONSUMPTION OF ENER-
GY  INCLUDING  FUELS,  AS  DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY;
  (B) "CLEAN-FUELED VEHICLE" SHALL MEAN ANY MOTOR VEHICLE AS DEFINED  IN
SECTION  ONE  HUNDRED  TWENTY-FIVE  OF THE VEHICLE AND TRAFFIC LAW, THAT
USES ELECTRICITY,  INCLUDING  ELECTRICITY  EITHER  STORED  OR  GENERATED
ON-BOARD, AS ITS PRIMARY MOTIVE FORCE, OR THAT IS FUELED BY NATURAL GAS,
PROPANE, OR HYDROGEN;
  (C)  "ENERGY  EFFICIENCY  TECHNOLOGIES"  SHALL  MEAN TECHNOLOGIES THAT
REDUCE THE CONSUMPTION OF ELECTRICITY INCLUDING BUT NOT LIMITED TO:  (I)
REPLACEMENT OF INEFFICIENT LIGHTING FIXTURES; (II) APPLIANCES AND EQUIP-
MENT  THAT MEET ENERGY EFFICIENCY PERFORMANCE STANDARDS AS IDENTIFIED IN
ARTICLE SIXTEEN OF THE ENERGY LAW; AND (III) OTHER  SUCH  MEASURES  THAT
WILL  REDUCE  THE  DEMAND  FOR  AND/OR THE CONSUMPTION OF ELECTRICITY AS
DETERMINED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHOR-
ITY; AND
  (D) "RENEWABLE ENERGY DEVELOPMENT" SHALL MEAN THE PURCHASE AND INSTAL-
LATION OF TECHNOLOGIES DESIGNED TO CONVERT RENEWABLE ENERGY  INTO  ELEC-
TRICITY  OR OTHER END USES, WHERE RENEWABLE ENERGY INCLUDES SOLAR, WIND,
TIDAL,  FUEL  CELL,  GEOTHERMAL  AND  HYDROGEN,  BUT  DOES  NOT  INCLUDE
COMBUSTION  OR PYROLOSIS OF SOLID WASTE AS DEFINED IN SECTION 27-0701 OF
THE ENVIRONMENTAL CONSERVATION LAW OR ELECTRICITY GENERATED FROM NUCLEAR
POWER PLANTS.
  (A-2) "GREEN ZONE" MEANS THE AREA OF  STATEN  ISLAND  DEFINED  BY  THE
FOLLOWING  AREA  BASED  ON THE NEW YORK CITY DEPARTMENT OF CITY PLANNING
ZONING MAPS: BEGINNING AT THE INTERSECTION OF THE NORTH SIDE OF THE FOOT
OF THE GOETHAL BRIDGE AND THE US  PIERHEAD  AND  BULKHEAD  LINE;  THENCE
RUNNING  EASTERLY  3,214.78  FEET ALONG AND PARALLEL TO THE NORTHSIDE OF
THE GOETHALS BRIDGE EXTENSION  TO  THE  CENTERLINE  OF  WESTERN  AVENUE;
THENCE  RUNNING  NORTH  93.71  FEET  TO  THE CENTERLINE OF GOETHALS ROAD
NORTH; THENCE RUNNING EAST 5,909.12 FEET ALONG AND PARALLEL TO THE SOUTH
SIDE OF GOETHALS ROAD  NORTH  TO  CENTERLINE  OF  SOUTH  AVENUE;  THENCE
RUNNING  SOUTH  433.81 FEET ALONG AND PARALLEL TO THE WEST SIDE OF SOUTH
AVENUE TO THE CENTERLINE OF FAHEY AVENUE;  THENCE  RUNNING  EAST  424.89
FEET ALONG AND PARALLEL TO THE SOUTH SIDE OF FAHEY AVENUE TO THE CENTER-
LINE  OF  FELTON  STREET;  THENCE  RUNNING SOUTH 1,314.02 FEET ALONG AND
PARALLEL TO THE WEST SIDE OF FELTON STREET TO THE CENTERLINE OF LAMBERTS
LANE; THENCE RUNNING SOUTH 790.62 FEET ALONG THE FELTON STREET  LINE  TO
THE  INTERSECTION  OF  GRAHAM  AVENUE  AND LANDER AVENUE; THENCE RUNNING
SOUTH 3,413.10 FEET ALONG AND PARALLEL TO THE WEST SIDE OF GRAHAM AVENUE
TO  THE  CENTERLINE  OF  VICTORY  BOULEVARD;  THENCE  RUNNING  SOUTHEAST
3,114.21  ALONG  THE WEST SIDE OF VICTORY BOULEVARD TO THE CENTERLINE OF
TRAVIS AVENUE; THENCE RUNNING EAST 5,030.20 FEET ALONG AND  PARALLEL  TO
THE  SOUTH  SIDE  OF TRAVIS AVENUE TO THE CENTERLINE OF RICHMOND AVENUE;
THENCE RUNNING SOUTH 12,265.02 FEET ALONG AND PARALLEL TO THE WEST  SIDE
OF RICHMOND AVENUE TO THE CENTERLINE OF ARTHUR KILL ROAD; THENCE RUNNING
WEST  14,266.19  FEET  ALONG  AND PARALLEL THE NORTH SIDE OF ARTHUR KILL

A. 10662                            9

ROAD TO THE CENTERLINE OF ROSSVILLE AVENUE;  THENCE  RUNNING  NORTH  650
FEET  ALONG THE LINE OF ROSSVILLE AVENUE TO THE POINT OF THE US PIERHEAD
AND BULKHEAD LINE; THENCE RUNNING NORTH 34,553.83 FEET ALONG AND  PARAL-
LEL  TO  THE EAST SIDE OF THE US PIERHEAD AND BULKHEAD LINE TO THE POINT
AND PLACE OF THE BEGINNING.
  S 10. Subdivision (e) of section 25-y  of  the  general  city  law  is
amended by adding a new paragraph 4 to read as follows:
  (4)  IF  USED  BY A GREEN BUSINESS AFTER JULY FIRST, TWO THOUSAND TEN,
NON-RESIDENTIAL PREMISES  LOCATED  ENTIRELY  IN  REAL  PROPERTY  LOCATED
PARTIALLY OR ENTIRELY IN A GREEN ZONE AS DEFINED IN THIS SECTION.
  S  11.  Subdivision  (f)  of  section 25-y of the general city law, as
added by chapter 331 of the laws of 1987, is amended to read as follows:
  (f) "Eligible area" means an area of a city having a population of one
million or more, excluding the area lying south of the  center  line  of
96th  Street,  in the borough of Manhattan in the city of New York OR IN
THE CASE OF A GREEN BUSINESS RELOCATING AFTER JULY FIRST,  TWO  THOUSAND
TEN, AN ELIGIBLE AREA SHALL INCLUDE A GREEN ZONE.
  S  12.  Subdivision  (n)  of  section 25-y of the general city law, as
added by chapter 261 of the laws of 2000, is amended to read as follows:
  (n) "Revitalization area" means any area of a city having a population
of one million or more, provided that in the city of New York a revital-
ization area shall mean: (I) any district that is zoned C4, C5, C6,  M1,
M2  or  M3  in accordance with the zoning resolution of such city in any
area such city except the area lying south of the center  line  of  96th
Street in the borough of Manhattan, OR (II) IN THE CASE OF A GREEN BUSI-
NESS RELOCATING AFTER JULY FIRST, TWO THOUSAND TEN, A GREEN ZONE.
  S  13.  Subdivision  (a)  of  section  25-s of the general city law is
amended by adding a new paragraph 1-a to read as follows:
  (1-A) IS A GREEN BUSINESS AND TAKES OCCUPANCY OF NON-RESIDENTIAL PREM-
ISES AFTER JULY FIRST, TWO THOUSAND TEN, FOR WHICH IT  HAS,  AFTER  SUCH
DATE,  ENTERED  INTO  A WRITTEN AGREEMENT TO BUY OR LEASE, PROVIDED THAT
SUCH PREMISES ARE LOCATED IN A GREEN ZONE AND THAT SUCH PREMISES  ARE  A
REPLACEMENT  FOR  PREMISES PREVIOUSLY OCCUPIED BY SUCH ENERGY USER FOR A
CONTINUOUS PERIOD OF TWENTY-FOUR MONTHS DURING THE THIRTY  MONTH  PERIOD
IMMEDIATELY  PRECEDING  SUCH  USER'S  TAKING OCCUPANCY, WHICH PREVIOUSLY
OCCUPIED PREMISES WERE OUTSIDE OF THE GREEN ZONE; OR
  S 14. Section 25-s of the general city law is amended  by  adding  two
new subdivisions (d-1) and (d-2) to read as follows:
  (D-1)  "GREEN  BUSINESS."  A  "GREEN BUSINESS" SHALL BE DEFINED AS ONE
THAT HAS ITS PRIMARY SOURCE OF REVENUE THE PROVISION OF SERVICES IN  THE
FOLLOWING  AREAS:  (1)  GREEN HOUSE GAS EMISSION REDUCTION TECHNOLOGIES,
(2) THE ASSEMBLY OF ESSENTIAL COMPONENTS FOR A CLEAN-FUELED VEHICLE;  OR
(3) ENERGY EFFICIENCY TECHNOLOGIES.
  FOR  PURPOSES  OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (A) "GREENHOUSE GAS EMISSION REDUCTION TECHNOLOGIES"  SHALL  MEAN  AND
INCLUDE  BUT  NOT  BE  LIMITED  TO: (I) COGENERATION TECHNOLOGIES, WHICH
SHALL MEAN ANY ONE OF THE SEVERAL TECHNOLOGIES WHEREIN WASTE  HEAT  FROM
ON-SITE  ELECTRICAL  GENERATION PROCESS IS RECOVERED TO PROVIDE STEAM OR
HOT WATER TO MEET ON-SITE NEEDS, SUCH AS HEATING AND/OR AIR CONDITIONING
AND WHICH ATTAINS  OVERALL  SYSTEM  EFFICIENCY  AS  ESTABLISHED  BY  THE
DEPARTMENT  OF  ENVIRONMENTAL CONSERVATION, CONSIDERING BOTH THERMAL AND
ELECTRICAL PROCESS TOGETHER; (II) FURNACE AND  BOILER  REPLACEMENTS  AND
RETROFITS,  PROVIDED  THAT NEW OR RETROFITTED FURNACES AND BOILERS SHALL
NOT AT ANYTIME OPERATE ON DIESEL FUEL WITH SULFUR CONTENT  GREATER  THAN
0.05 PERCENT BY WEIGHT; (III) THE PRODUCTION OF CLEAN-FUELED VEHICLES OR

A. 10662                           10

THE  CONVERSION  OF EXISTING VEHICLES TO CLEAN-FUELED VEHICLES; AND (IV)
OTHER MEASURES THAT WILL REDUCE THE DEMAND FOR AND/OR THE CONSUMPTION OF
ENERGY INCLUDING FUELS, AS DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY;
  (B)  "CLEAN-FUELED VEHICLE" SHALL MEAN ANY MOTOR VEHICLE AS DEFINED IN
SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE  AND  TRAFFIC  LAW,  THAT
USES  ELECTRICITY,  INCLUDING  ELECTRICITY  EITHER  STORED  OR GENERATED
ON-BOARD, AS ITS PRIMARY MOTIVE FORCE, OR THAT IS FUELED BY NATURAL GAS,
PROPANE, OR HYDROGEN;
  (C) "ENERGY EFFICIENCY  TECHNOLOGIES"  SHALL  MEAN  TECHNOLOGIES  THAT
REDUCE  THE CONSUMPTION OF ELECTRICITY INCLUDING BUT NOT LIMITED TO: (I)
REPLACEMENT OF INEFFICIENT LIGHTING FIXTURES; (II) APPLIANCES AND EQUIP-
MENT THAT MEET ENERGY EFFICIENCY PERFORMANCE STANDARDS AS IDENTIFIED  IN
ARTICLE  SIXTEEN  OF  THE ENERGY LAW; AND (III) OTHER SUCH MEASURES THAT
WILL REDUCE THE DEMAND FOR AND/OR  THE  CONSUMPTION  OF  ELECTRICITY  AS
DETERMINED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHOR-
ITY; AND
  (D) "RENEWABLE ENERGY DEVELOPMENT" SHALL MEAN THE PURCHASE AND INSTAL-
LATION  OF  TECHNOLOGIES DESIGNED TO CONVERT RENEWABLE ENERGY INTO ELEC-
TRICITY OR OTHER END USES, WHERE RENEWABLE ENERGY INCLUDES SOLAR,  WIND,
TIDAL,  FUEL  CELL,  GEOTHERMAL  AND  HYDROGEN,  BUT  DOES  NOT  INCLUDE
COMBUSTION OR PYROLOSIS OF SOLID WASTE AS DEFINED IN SECTION 27-0701  OF
THE ENVIRONMENTAL CONSERVATION LAW OR ELECTRICITY GENERATED FROM NUCLEAR
POWER PLANTS.
  (D-2) "GREEN ZONE". THE AREA OF STATEN ISLAND DEFINED BY THE FOLLOWING
AREA BASED ON THE NEW YORK CITY DEPARTMENT OF CITY PLANNING ZONING MAPS:
BEGINNING  AT  THE  INTERSECTION  OF  THE  NORTH SIDE OF THE FOOT OF THE
GOETHALS BRIDGE AND THE US PIERHEAD AND BULKHEAD  LINE;  THENCE  RUNNING
EASTERLY  3,214.78  FEET  ALONG  AND  PARALLEL  TO THE NORTH SIDE OF THE
GOETHALS BRIDGE EXTENSION TO THE CENTERLINE OF  WESTERN  AVENUE;  THENCE
RUNNING  NORTH  93.71  FEET  TO  THE  CENTERLINE OF GOETHALS ROAD NORTH;
THENCE RUNNING EAST 5,909.12 FEET ALONG AND PARALLEL TO THE  SOUTH  SIDE
OF  GOETHALS  ROAD  NORTH  TO CENTERLINE OF SOUTH AVENUE; THENCE RUNNING
SOUTH 433.81 FEET ALONG AND PARALLEL TO THE WEST SIDE OF SOUTH AVENUE TO
THE CENTERLINE OF FAHEY AVENUE; THENCE RUNNING EAST  424.89  FEET  ALONG
AND  PARALLEL  TO  THE  SOUTH  SIDE OF FAHEY AVENUE TO THE CENTERLINE OF
FELTON STREET; THENCE RUNNING SOUTH 1,314.02 FEET ALONG AND PARALLEL  TO
THE  WEST  SIDE  OF  FELTON  STREET  TO THE CENTERLINE OF LAMBERTS LANE;
THENCE RUNNING SOUTH 790.62 FEET ALONG THE FELTON  STREET  LINE  TO  THE
INTERSECTION  OF  GRAHAM  AVENUE AND LANDER AVENUE; THENCE RUNNING SOUTH
3,413.10 FEET ALONG AND PARALLEL TO THE WEST SIDE OF  GRAHAM  AVENUE  TO
THE  CENTERLINE  OF VICTORY BOULEVARD; THENCE RUNNING SOUTHEAST 3,114.21
ALONG THE WEST SIDE OF VICTORY BOULEVARD TO  THE  CENTERLINE  OF  TRAVIS
AVENUE;  THENCE  RUNNING  EAST  5,030.20  FEET ALONG AND PARALLEL TO THE
SOUTH SIDE OF TRAVIS AVENUE TO THE CENTERLINE OF RICHMOND AVENUE; THENCE
RUNNING SOUTH 12,265.02 FEET ALONG AND PARALLEL  TO  THE  WEST  SIDE  OF
RICHMOND  AVENUE  TO  THE CENTERLINE OF ARTHUR KILL ROAD; THENCE RUNNING
WEST 14,266.19 FEET ALONG AND PARALLEL TO THE NORTH SIDE OF ARTHUR  KILL
ROAD  TO  THE  CENTERLINE  OF ROSSVILLE AVENUE; THENCE RUNNING NORTH 650
FEET ALONG THE LINE OF ROSSVILLE AVENUE TO THE POINT OF THE US  PIERHEAD
AND  BULKHEAD LINE; THENCE RUNNING NORTH 34,553.83 FEET ALONG AND PARAL-
LEL TO THE EAST SIDE OF THE US PIERHEAD AND BULKHEAD LINE TO  THE  POINT
AND PLACE OF THE BEGINNING.
  S  15.  Subdivision  (g)  of  section 25-s of the general city law, as
added by chapter 551 of the laws of 1985, is amended to read as follows:

A. 10662                           11

  (g) "Eligible areas". Areas of a city designated by local law  enacted
pursuant  to  section twenty-five-t of this article as needing the bene-
fits available under this article as an inducement to economic  develop-
ment,  provided  that  the  area  lying south of the center line of 96th
Street,  in  the borough of Manhattan in the city of New York, shall not
be so designated.  NOTWITHSTANDING THE PROVISIONS OF THIS SUBDIVISION, A
GREEN ZONE SHALL BE CONSIDERED AN ELIGIBLE AREA.
  S 16. The real property tax law is amended by  adding  a  new  section
485-n to read as follows:
  S  485-N. GREEN ECONOMIC DEVELOPMENT ZONE EXEMPTION. 1. (A) REAL PROP-
ERTY CONSTRUCTED, ALTERED, INSTALLED OR IMPROVED IN AN AREA DESIGNATED A
GREEN ECONOMIC DEVELOPMENT ZONE PURSUANT TO ARTICLE  EIGHTEEN-D  OF  THE
GENERAL MUNICIPAL LAW SHALL BE EXEMPT FROM TAXATION AND SPECIAL AD VALO-
REM LEVIES BY ANY MUNICIPAL CORPORATION IN WHICH LOCATED, FOR THE PERIOD
AND  TO THE EXTENT HEREIN PROVIDED, PROVIDED THAT THE GOVERNING BOARD OF
SUCH MUNICIPAL CORPORATION, AFTER PUBLIC HEARING, ADOPTS  A  LOCAL  LAW,
ORDINANCE OR RESOLUTION PROVIDING THEREFOR.
  (B)  FOR  EXEMPTIONS COMMENCING IN THE FIRST SEVEN YEARS FROM THE DATE
ON WHICH THE GREEN ECONOMIC DEVELOPMENT ZONE WAS DESIGNATED, THE  AMOUNT
OF  SUCH EXEMPTION IN ANY OF THESE YEARS SHALL BE ONE HUNDRED PERCENT OF
THE "BASE AMOUNT",  DETERMINED  PURSUANT  TO  SUBDIVISION  TWO  OF  THIS
SECTION.  IN  THE  EIGHTH,  NINTH  AND  TENTH  YEARS,  THE AMOUNT OF THE
EXEMPTION SHALL BE SEVENTY-FIVE PERCENT, FIFTY PERCENT, AND  TWENTY-FIVE
PERCENT, RESPECTIVELY, OF SUCH BASE AMOUNT.
  (C)  FOR  EXEMPTIONS  COMMENCING  IN THE EIGHTH, NINTH AND TENTH YEARS
FROM THE DATE ON WHICH THE GREEN ECONOMIC DEVELOPMENT  ZONE  WAS  DESIG-
NATED, THE AMOUNT OF SUCH EXEMPTION SHALL BE SEVENTY-FIVE PERCENT, FIFTY
PERCENT  AND  TWENTY-FIVE  PERCENT,  RESPECTIVELY, OF THE "BASE AMOUNT",
DETERMINED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
  1-A. (A) A MUNICIPAL CORPORATION MAY PROVIDE IN SUCH LOCAL LAW,  ORDI-
NANCE OR RESOLUTION, OR IN A SEPARATE LOCAL LAW, ORDINANCE OR RESOLUTION
ADOPTED  AFTER PUBLIC HEARING, THAT THE EXEMPTION SO AUTHORIZED SHALL BE
FOR A TERM OF TEN YEARS, NOTWITHSTANDING THAT  THE  DESIGNATION  OF  THE
ZONE  MAY  EXPIRE PRIOR TO THE END OF SUCH TEN YEAR TERM. ANY SUCH LOCAL
LAW, ORDINANCE OR RESOLUTION SHALL  BE  APPLICABLE  ONLY  TO  EXEMPTIONS
COMMENCING ON ASSESSMENT ROLLS WITH TAXABLE STATUS DATES ON OR AFTER THE
EFFECTIVE DATE OF SUCH LOCAL LAW, ORDINANCE OR RESOLUTION.
  (B)  WHERE  SUCH  LOCAL LAW, ORDINANCE OR RESOLUTION HAS BEEN ADOPTED,
THE AMOUNT OF SUCH EXEMPTION IN THE FIRST SEVEN YEARS OF ITS TERM  SHALL
BE  ONE  HUNDRED  PERCENT  OF  THE "BASE AMOUNT," DETERMINED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION. THE AMOUNT  OF  THE  EXEMPTION  IN  THE
EIGHTH,  NINTH,  AND  TENTH  YEARS  OF  ITS  TERM  SHALL BE SEVENTY-FIVE
PERCENT, FIFTY PERCENT AND TWENTY-FIVE PERCENT,  RESPECTIVELY,  OF  SUCH
BASE AMOUNT.
  2.  (A)  THE  BASE  AMOUNT OF THE EXEMPTION SHALL BE THE EXTENT OF THE
INCREASE IN ASSESSED VALUE ATTRIBUTABLE  TO  SUCH  CONSTRUCTION,  ALTER-
ATION, INSTALLATION OR IMPROVEMENT AS DETERMINED IN THE INITIAL YEAR FOR
WHICH  APPLICATION  FOR  EXEMPTION IS MADE PURSUANT TO THIS SECTION. THE
BASE AMOUNT SHALL  REMAIN  CONSTANT  FOR  THE  AUTHORIZED  TERM  OF  THE
EXEMPTION, SUBJECT TO THE FOLLOWING:
  (I)  IF  THERE IS SUBSEQUENT CONSTRUCTION, ALTERATION, INSTALLATION OR
IMPROVEMENT DURING THE TERM OF THE EXEMPTION, THE BASE AMOUNT  SHALL  BE
REVISED  TO  INCLUDE THE INCREASE IN ASSESSED VALUE ATTRIBUTABLE TO SUCH
CONSTRUCTION, ALTERATION, INSTALLATION OR IMPROVEMENT.
  (II) IF A CHANGE IN LEVEL OF ASSESSMENT OF FIFTEEN PERCENT OR MORE  IS
CERTIFIED  FOR  AN  ASSESSMENT  ROLL  PURSUANT TO THE RULES OF THE STATE

A. 10662                           12

BOARD, THE BASE AMOUNT SHALL BE ADJUSTED BY  SUCH  CHANGE  IN  LEVEL  OF
ASSESSMENT.  THE  EXEMPTION  ON  THAT ASSESSMENT ROLL SHALL THEREUPON BE
RECOMPUTED, NOTWITHSTANDING THE FACT  THAT  THE  ASSESSOR  RECEIVES  THE
CERTIFICATION AFTER THE COMPLETION, VERIFICATION AND FILING OF THE FINAL
ASSESSMENT  ROLL. IN THE EVENT THE ASSESSOR DOES NOT HAVE CUSTODY OF THE
ROLL WHEN SUCH CERTIFICATION IS RECEIVED, THE ASSESSOR SHALL CERTIFY THE
RECOMPUTED EXEMPTION TO THE LOCAL OFFICERS HAVING CUSTODY AND CONTROL OF
THE ROLL, AND SUCH LOCAL OFFICERS ARE HEREBY DIRECTED AND AUTHORIZED  TO
ENTER THE RECOMPUTED EXEMPTION CERTIFIED BY THE ASSESSOR ON THE ROLL.
  (B)  NO  SUCH  EXEMPTION  SHALL BE GRANTED UNLESS, PURSUANT TO ARTICLE
EIGHTEEN-D OF THE GENERAL MUNICIPAL LAW:
  (1) NOTICE OF THE DESIGNATION OF THE GREEN ECONOMIC  DEVELOPMENT  ZONE
HAS  BEEN FILED WITH THE CLERK OF THE ASSESSING UNIT BY THE COMMISSIONER
ON OR BEFORE THE APPLICABLE TAXABLE STATUS DATE;
  (2)  THE  CONSTRUCTION,  ALTERATION,   INSTALLATION   OR   IMPROVEMENT
COMMENCED  ON  OR AFTER THE DATE THE GREEN ECONOMIC DEVELOPMENT ZONE WAS
DESIGNATED; AND
  (3) THE DESIGNATION OF THE GREEN ECONOMIC  DEVELOPMENT  ZONE  HAS  NOT
ENDED  AND  HAS NOT BEEN TERMINATED BY THE COMMISSIONER ON OR BEFORE THE
APPLICABLE TAXABLE STATUS DATE.
  (C) FOR PURPOSES OF THIS SECTION THE TERMS  CONSTRUCTION,  ALTERATION,
INSTALLATION  AND IMPROVEMENT SHALL NOT INCLUDE ORDINARY MAINTENANCE AND
REPAIRS.
  (D) NO SUCH EXEMPTION SHALL BE GRANTED CONCURRENT WITH  OR  SUBSEQUENT
TO  ANY  OTHER  REAL PROPERTY TAX EXEMPTION GRANTED TO THE SAME IMPROVE-
MENTS TO REAL PROPERTY, EXCEPT, WHERE DURING THE PERIOD OF SUCH PREVIOUS
EXEMPTION, PAYMENTS IN LIEU OF TAXES OR OTHER PAYMENTS WERE MADE TO  THE
LOCAL  GOVERNMENT  IN AN AMOUNT THAT WOULD HAVE BEEN EQUAL TO OR GREATER
THAN THE AMOUNT OF REAL PROPERTY TAXES THAT WOULD HAVE BEEN PAID ON SUCH
IMPROVEMENTS HAD SUCH PROPERTY BEEN GRANTED  AN  EXEMPTION  PURSUANT  TO
THIS  SECTION.  IN SUCH CASE, AN EXEMPTION SHALL BE GRANTED FOR A NUMBER
OF YEARS EQUAL TO THE  TEN  YEAR  EXEMPTION  GRANTED  PURSUANT  TO  THIS
SECTION LESS THE NUMBER OF YEARS THE PROPERTY WOULD HAVE BEEN PREVIOUSLY
EXEMPT FROM REAL PROPERTY TAXES.
  3.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH REAL PROPERTY ON A FORM  PRESCRIBED  BY  THE  STATE  BOARD.  THE
ORIGINAL  OF  SUCH  APPLICATION  SHALL BE FILED WITH THE ASSESSOR OF THE
ASSESSING UNIT. SUCH ORIGINAL APPLICATION SHALL BE FILED  ON  OR  BEFORE
THE  APPROPRIATE TAXABLE STATUS DATE OF SUCH ASSESSING UNIT AND NO LATER
THAN ONE YEAR FROM THE DATE OF COMPLETION OF SUCH  CONSTRUCTION,  ALTER-
ATION, INSTALLATION OR IMPROVEMENT.
  4.  IF  THE ASSESSOR RECEIVES THE NOTICE DESCRIBED IN SUBPARAGRAPH ONE
OF PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION AND  AN  APPLICATION
BY  THE OWNER OF THE REAL PROPERTY, HE SHALL APPROVE THE APPLICATION AND
SUCH REAL PROPERTY SHALL THEREAFTER BE EXEMPT FROM  TAXATION  AS  HEREIN
PROVIDED  COMMENCING WITH THE ASSESSMENT ROLL PREPARED AFTER THE TAXABLE
STATUS DATE REFERRED TO  IN  SUBDIVISION  THREE  OF  THIS  SECTION.  THE
ASSESSED  VALUE  OF ANY EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL
BE ENTERED BY THE ASSESSOR ON THE ASSESSMENT ROLL WITH THE TAXABLE PROP-
ERTY, WITH THE AMOUNT OF THE EXEMPTION ENTERED IN A SEPARATE COLUMN.
  5. EXEMPTIONS EXISTING PRIOR IN TIME TO THE TERMINATION OF THE  DESIG-
NATION  OF A GREEN ECONOMIC DEVELOPMENT ZONE BY THE COMMISSIONER, OR, IN
THE CASE OF A MUNICIPAL CORPORATION WHICH HAS ADOPTED A LOCAL LAW, ORDI-
NANCE OR RESOLUTION PURSUANT TO SUBDIVISION ONE-A OF THIS SECTION, PRIOR
IN TIME TO THE EXPIRATION OF SUCH DESIGNATION, SHALL CONTINUE AS IF  THE
DESIGNATION  OF  THE GREEN ECONOMIC DEVELOPMENT ZONE HAD NOT BEEN TERMI-

A. 10662                           13

NATED, OR, IF APPLICABLE, HAD NOT EXPIRED; PROVIDED, HOWEVER,  THAT  ANY
FURTHER  INCREASE IN THE VALUE ATTRIBUTABLE TO CONSTRUCTION, ALTERATION,
INSTALLATION OR IMPROVEMENT COMMENCED SUBSEQUENT TO THE DATE  OF  TERMI-
NATION, OR, IF APPLICABLE, THE DATE OF EXPIRATION, SHALL NOT BE ELIGIBLE
FOR EXEMPTION PURSUANT TO THIS SECTION.
  S 17. Section 186-a of the tax law is amended by adding a new subdivi-
sion 11 to read as follows:
  11.  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS CHAPTER OR ANY OTHER
LAW TO THE CONTRARY, ANY UTILITY (A) WHICH IS SUBJECT TO TAX  HEREUNDER,
AND  (B) WHICH IS SUBJECT TO THE SUPERVISION OF THE DEPARTMENT OF PUBLIC
SERVICE, SHALL PROVIDE, IN ADDITION TO ANY OTHER DISCOUNT,  A  REDUCTION
OF  THREE  PERCENT  IN  THE  RATE CHARGED FOR GAS, ELECTRICITY, STEAM OR
WATER SOLD, OR GAS, ELECTRIC, STEAM OR WATER SERVICE RENDERED, PRIOR  TO
NINETEEN  HUNDRED NINETY-FOUR, FOR ULTIMATE CONSUMPTION OR USE WITHIN AN
AREA DESIGNATED AS A GREEN ECONOMIC DEVELOPMENT ZONE PURSUANT TO ARTICLE
EIGHTEEN-D OF THE GENERAL MUNICIPAL LAW BY A BUSINESS, WHETHER  INCORPO-
RATED  OR  UNINCORPORATED,  OTHER THAN A RETAIL ENTERPRISE AS DEFINED IN
PARAGRAPH (K) OF SUBDIVISION TWELVE OF SECTION TWO HUNDRED TEN  OF  THIS
CHAPTER BUT WITHOUT REGARD TO SUBPARAGRAPH (III) THEREOF, WHICH HAS BEEN
CERTIFIED  PURSUANT  TO ARTICLE EIGHTEEN-D OF THE GENERAL MUNICIPAL LAW,
AND WHICH HAS CLAIMED A CREDIT UNDER SUBDIVISION TWELVE-H OF SECTION TWO
HUNDRED TEN, SUBSECTION (E) OF SECTION  FOURTEEN  HUNDRED  FIFTY-SIX  OR
SUBDIVISION (G) OF SECTION FIFTEEN HUNDRED ELEVEN OF THIS CHAPTER DURING
THE PREVIOUS FIFTEEN MONTHS, AS EVIDENCED BY A CERTIFICATE ISSUED BY THE
COMMISSIONER  TO  SUCH BUSINESS.  NINETY-SIX AND ONE-HALF PERCENT OF THE
AGGREGATE OF SUCH REDUCTIONS DURING THE YEAR MAY BE APPLIED AS A  CREDIT
AGAINST  THE  TAX  IMPOSED PURSUANT TO THIS SECTION WITH RESPECT TO SUCH
YEAR.
  S 18. Section 210 of the tax law is amended by adding two new subdivi-
sions 12-H and 12-I to read as follows:
  12-H. GREEN ECONOMIC DEVELOPMENT ZONE INVESTMENT TAX CREDIT (GED-ITC).
(A) A TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  HEREIN
PROVIDED,  AGAINST  THE  TAX IMPOSED BY THIS ARTICLE IF THE TAXPAYER HAS
BEEN CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-D OF THE  GENERAL  MUNICIPAL
LAW.  THE AMOUNT OF THE CREDIT SHALL BE TEN PERCENT OF THE COST OR OTHER
BASIS  FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPERTY AND
OTHER TANGIBLE PROPERTY, INCLUDING BUILDINGS AND  STRUCTURAL  COMPONENTS
OF  BUILDINGS,  DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION, WHICH IS
LOCATED WITHIN A GREEN ECONOMIC  DEVELOPMENT  ZONE  DESIGNATED  AS  SUCH
PURSUANT TO ARTICLE EIGHTEEN-D OF SUCH LAW, BUT ONLY IF THE ACQUISITION,
CONSTRUCTION,  RECONSTRUCTION  OR  ERECTION OF SUCH PROPERTY OCCURRED OR
WAS COMMENCED ON OR AFTER THE DATE OF SUCH DESIGNATION AND PRIOR TO  THE
EXPIRATION  THEREOF.  PROVIDED, HOWEVER, THAT IN THE CASE OF AN ACQUISI-
TION, CONSTRUCTION,  RECONSTRUCTION  OR  ERECTION  WHICH  WAS  COMMENCED
DURING  SUCH PERIOD AND CONTINUED OR COMPLETED SUBSEQUENTLY, SUCH CREDIT
SHALL BE TEN PERCENT OF THE PORTION OF  THE  COST  OR  OTHER  BASIS  FOR
FEDERAL  INCOME  TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD, WHICH PORTION
SHALL BE ASCERTAINED BY MULTIPLYING SUCH COST OR BASIS BY A FRACTION THE
NUMERATOR OF WHICH SHALL BE THE EXPENDITURES  PAID  OR  INCURRED  DURING
SUCH  PERIOD FOR SUCH PURPOSES AND THE DENOMINATOR OF WHICH SHALL BE THE
TOTAL OF  ALL  EXPENDITURES  PAID  OR  INCURRED  FOR  SUCH  ACQUISITION,
CONSTRUCTION, RECONSTRUCTION OR ERECTION.
  (B)  A  CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO
TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
INGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH (I)  ARE  DEPRECIABLE
PURSUANT  TO  SECTION  ONE  HUNDRED  SIXTY-SEVEN OF THE INTERNAL REVENUE

A. 10662                           14

CODE, (II) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (III) ARE  ACQUIRED
BY  PURCHASE  AS  DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D) OF THE
INTERNAL REVENUE CODE, (IV) HAVE A SITUS IN A GREEN ECONOMIC DEVELOPMENT
ZONE  DESIGNATED  AS  SUCH PURSUANT TO ARTICLE EIGHTEEN-D OF THE GENERAL
MUNICIPAL LAW, AND (V) ARE (A) PRINCIPALLY USED BY THE TAXPAYER  IN  THE
PRODUCTION  OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING, REFINING,
MINING, EXTRACTING, FARMING,  AGRICULTURE,  HORTICULTURE,  FLORICULTURE,
VITICULTURE OR COMMERCIAL FISHING, (B) INDUSTRIAL WASTE TREATMENT FACIL-
ITIES  OR  AIR POLLUTION CONTROL FACILITIES USED IN THE TAXPAYER'S TRADE
OR BUSINESS, (C) RESEARCH AND DEVELOPMENT PROPERTY, (D) PRINCIPALLY USED
IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR BUSINESS AS  A  BROKER
OR  DEALER  IN CONNECTION WITH THE PURCHASE OR SALE (WHICH SHALL INCLUDE
BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,  ASSUMPTION,  OFFSET,
ASSIGNMENT,  TERMINATION, OR TRANSFER) OF STOCKS, BONDS OR OTHER SECURI-
TIES AS DEFINED IN SECTION  FOUR  HUNDRED  SEVENTY-FIVE  (C)(2)  OF  THE
INTERNAL  REVENUE  CODE,  OR  OF  COMMODITIES AS DEFINED IN SECTION FOUR
HUNDRED SEVENTY-FIVE (E) OF THE INTERNAL REVENUE CODE,  (E)  PRINCIPALLY
USED  IN  THE  ORDINARY  COURSE  OF  THE TAXPAYER'S TRADE OR BUSINESS OF
PROVIDING INVESTMENT ADVISORY SERVICES FOR A REGULATED INVESTMENT COMPA-
NY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE
CODE, OR LENDING, LOAN ARRANGEMENT,  OR  LOAN  ORIGINATION  SERVICES  TO
CUSTOMERS  IN  CONNECTION WITH THE PURCHASE OR SALE (WHICH SHALL INCLUDE
BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,  ASSUMPTION,  OFFSET,
ASSIGNMENT, TERMINATION OR TRANSFER) OF SECURITIES AS DEFINED IN SECTION
FOUR  HUNDRED  SEVENTY-FIVE  (C)(2) OF THE INTERNAL REVENUE CODE, OR (F)
PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S BUSINESS AS AN
EXCHANGE REGISTERED AS A NATIONAL SECURITIES EXCHANGE WITHIN THE MEANING
OF SECTIONS 3(A)(1) AND 6(A) OF THE SECURITIES EXCHANGE ACT OF 1934 OR A
BOARD OF TRADE AS DEFINED  IN  SUBPARAGRAPH  ONE  OF  PARAGRAPH  (A)  OF
SECTION FOURTEEN HUNDRED TEN OF THE NOT-FOR-PROFIT CORPORATION LAW OR AS
AN  ENTITY  THAT IS WHOLLY OWNED BY ONE OR MORE SUCH NATIONAL SECURITIES
EXCHANGES OR BOARDS OF TRADE AND THAT PROVIDES AUTOMATION  OR  TECHNICAL
SERVICES  THERETO.  FOR PURPOSES OF CLAUSES (D), (E) AND (F) OF SUBPARA-
GRAPH (V) OF THIS PARAGRAPH, PROPERTY PURCHASED BY A TAXPAYER AFFILIATED
WITH A REGULATED BROKER, DEALER, REGISTERED INVESTMENT ADVISER, NATIONAL
SECURITIES EXCHANGE OR BOARD OF TRADE IS ALLOWED  A  CREDIT  UNDER  THIS
SUBDIVISION  IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED BROKER,
DEALER, REGISTERED INVESTMENT ADVISER OR NATIONAL SECURITIES EXCHANGE OR
BOARD OF TRADE IN ACCORDANCE WITH  THIS  SUBDIVISION.  FOR  PURPOSES  OF
DETERMINING  IF THE PROPERTY IS PRINCIPALLY USED IN QUALIFYING USES, THE
USES BY THE TAXPAYER DESCRIBED IN CLAUSES (D) AND  (E)  OF  SUBPARAGRAPH
(V)  OF  THIS  PARAGRAPH MAY BE AGGREGATED. IN ADDITION, THE USES BY THE
TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER AND REGISTERED INVEST-
MENT ADVISER UNDER EITHER OR BOTH OF THOSE CLAUSES  MAY  BE  AGGREGATED.
PROVIDED,  HOWEVER,  A TAXPAYER SHALL NOT BE ALLOWED THE CREDIT PROVIDED
BY CLAUSES (D), (E) AND (F)  OF  THIS  SUBPARAGRAPH  UNLESS  (I)  EIGHTY
PERCENT  OR  MORE  OF  THE  EMPLOYEES  PERFORMING THE ADMINISTRATIVE AND
SUPPORT FUNCTIONS RESULTING FROM OR RELATED TO THE  QUALIFYING  USES  OF
SUCH  EQUIPMENT ARE LOCATED IN THIS STATE, OR (II) THE AVERAGE NUMBER OF
EMPLOYEES THAT PERFORM THE ADMINISTRATIVE AND SUPPORT FUNCTIONS  RESULT-
ING  FROM  OR  RELATED  TO THE QUALIFYING USES OF SUCH EQUIPMENT AND ARE
LOCATED IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH  THE  CREDIT  IS
CLAIMED  IS  EQUAL TO OR GREATER THAN NINETY-FIVE PERCENT OF THE AVERAGE
NUMBER OF EMPLOYEES THAT PERFORM THESE FUNCTIONS AND ARE LOCATED IN THIS
STATE DURING THE THIRTY-SIX MONTHS IMMEDIATELY PRECEDING  THE  YEAR  FOR
WHICH THE CREDIT IS CLAIMED, OR (III) THE NUMBER OF EMPLOYEES LOCATED IN

A. 10662                           15

THIS  STATE  DURING  THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS
EQUAL TO OR GREATER THAN NINETY  PERCENT  OF  THE  NUMBER  OF  EMPLOYEES
LOCATED  IN  THIS STATE ON DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINE-
TY-EIGHT  OR,  IF THE TAXPAYER WAS NOT A CALENDAR YEAR TAXPAYER IN NINE-
TEEN HUNDRED NINETY-EIGHT, THE LAST DAY OF ITS FIRST TAXABLE YEAR ENDING
AFTER DECEMBER  THIRTY-FIRST,  NINETEEN  HUNDRED  NINETY-EIGHT.  IF  THE
TAXPAYER  BECOMES  SUBJECT  TO  TAX IN THIS STATE AFTER THE TAXABLE YEAR
BEGINNING IN NINETEEN HUNDRED NINETY-EIGHT, THEN  THE  TAXPAYER  IS  NOT
REQUIRED  TO  SATISFY  THE  EMPLOYMENT  TEST  PROVIDED  IN THE PRECEDING
SENTENCE OF THIS SUBPARAGRAPH  FOR  ITS  FIRST  TAXABLE  YEAR.  FOR  THE
PURPOSES  OF  CLAUSE (III) OF THIS SUBPARAGRAPH THE EMPLOYMENT TEST WILL
BE BASED ON THE NUMBER OF EMPLOYEES LOCATED IN THIS STATE  ON  THE  LAST
DAY  OF  THE  FIRST  TAXABLE YEAR THE TAXPAYER IS SUBJECT TO TAX IN THIS
STATE. IF THE USES OF THE  PROPERTY  MUST  BE  AGGREGATED  TO  DETERMINE
WHETHER THE PROPERTY IS PRINCIPALLY USED IN QUALIFYING USES, THEN EITHER
EACH  AFFILIATE  USING THE PROPERTY MUST SATISFY THIS EMPLOYMENT TEST OR
THIS EMPLOYMENT TEST MUST BE SATISFIED THROUGH THE  AGGREGATION  OF  THE
EMPLOYEES  OF THE TAXPAYER, ITS AFFILIATED REGULATED BROKER, DEALER, AND
REGISTERED INVESTMENT ADVISER USING THE PROPERTY.  FOR  THE  PURPOSE  OF
THIS  SUBDIVISION,  THE  TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY. FOR
PURPOSES OF THIS PARAGRAPH, MANUFACTURING  SHALL  MEAN  THE  PROCESS  OF
WORKING  RAW  MATERIALS  INTO  WARES SUITABLE FOR USE OR WHICH GIVES NEW
SHAPES, NEW QUALITY OR NEW COMBINATIONS TO MATTER WHICH ALREADY HAS GONE
THROUGH SOME ARTIFICIAL PROCESS BY THE USE OF MACHINERY,  TOOLS,  APPLI-
ANCES  AND  OTHER  SIMILAR EQUIPMENT. PROPERTY USED IN THE PRODUCTION OF
GOODS SHALL INCLUDE MACHINERY,  EQUIPMENT  OR  OTHER  TANGIBLE  PROPERTY
WHICH  IS PRINCIPALLY USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY,
EQUIPMENT OR OTHER TANGIBLE PROPERTY USED PRINCIPALLY IN THE  PRODUCTION
OF  GOODS AND SHALL INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERA-
TION, INCLUDING STORAGE OF MATERIAL TO BE USED IN PRODUCTION AND OF  THE
PRODUCTS  THAT  ARE  PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS
"RESEARCH AND DEVELOPMENT PROPERTY", "INDUSTRIAL WASTE TREATMENT FACILI-
TIES", AND "AIR POLLUTION CONTROL FACILITIES" SHALL  HAVE  THE  MEANINGS
ASCRIBED  THERETO BY CLAUSES (B), (C) AND (D), RESPECTIVELY, OF SUBPARA-
GRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION TWELVE OF THIS  SECTION,  AND
THE PROVISIONS OF SUBPARAGRAPH (III) OF SUCH PARAGRAPH (B) SHALL APPLY.
  (C)  A  TAXPAYER  SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVISION
WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE  PROP-
ERTY,  INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
IT LEASES TO ANY OTHER PERSON OR CORPORATION  EXCEPT  WHERE  A  TAXPAYER
LEASES  PROPERTY  TO  AN AFFILIATED REGULATED BROKER, DEALER, REGISTERED
INVESTMENT ADVISER, NATIONAL SECURITIES EXCHANGE OR BOARD OF  TRADE  (OR
OTHER  ENTITY  DESCRIBED  IN CLAUSE (F) OF SUBPARAGRAPH (V) OF PARAGRAPH
(B) OF THIS SUBDIVISION THAT  USES  SUCH  PROPERTY  IN  ACCORDANCE  WITH
CLAUSE  (D),  (E)  OR  (F)  OF SUBPARAGRAPH (V) OF PARAGRAPH (B) OF THIS
SUBDIVISION. FOR PURPOSES OF THE PRECEDING  SENTENCE,  ANY  CONTRACT  OR
AGREEMENT  TO  LEASE OR RENT OR FOR A LICENSE TO USE SUCH PROPERTY SHALL
BE CONSIDERED A LEASE.  PROVIDED,  HOWEVER,  IN  DETERMINING  WHETHER  A
TAXPAYER  SHALL  BE ALLOWED A CREDIT UNDER THIS SUBDIVISION WITH RESPECT
TO SUCH PROPERTY, ANY ELECTION MADE WITH RESPECT TO SUCH PROPERTY PURSU-
ANT TO THE PROVISIONS OF PARAGRAPH EIGHT OF SUBSECTION  (F)  OF  SECTION
ONE  HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE CODE, AS SUCH PARAGRAPH
WAS IN EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO JANUARY FIRST,  NINE-
TEEN HUNDRED EIGHTY-FOUR, SHALL BE DISREGARDED.
  (D)  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN  THE  HIGHER  OF

A. 10662                           16

THE  AMOUNTS  PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF
THIS SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT  OF  CREDIT  ALLOWED
UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT,  ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE
CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. IN LIEU OF  SUCH  CARRYOVER,  ANY
SUCH  TAXPAYER  WHICH QUALIFIES AS A NEW BUSINESS UNDER PARAGRAPH (J) OF
SUBDIVISION TWELVE OF THIS SECTION MAY ELECT,  ON  ITS  REPORT  FOR  ITS
TAXABLE  YEAR  WITH  RESPECT  TO  WHICH SUCH CREDIT IS ALLOWED, TO TREAT
FIFTY PERCENT OF THE AMOUNT OF SUCH CARRYOVER AS AN OVERPAYMENT  OF  TAX
TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION
TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER. IN ADDITION, ANY TAXPAYER  WHICH
IS  APPROVED AS THE OWNER OF A QUALIFIED INVESTMENT PROJECT OR A SIGNIF-
ICANT CAPITAL INVESTMENT  PROJECT  PURSUANT  TO  RULES  AND  REGULATIONS
PROMULGATED  BY  THE COMMISSIONER OF ECONOMIC DEVELOPMENT, ON ITS REPORT
FOR ITS TAXABLE YEAR WITH RESPECT TO WHICH SUCH CREDIT  IS  ALLOWED,  IN
LIEU  OF  SUCH CARRYOVER, MAY ELECT TO TREAT FIFTY PERCENT OF THE AMOUNT
OF SUCH CARRYOVER WHICH IS ATTRIBUTABLE TO THE CREDIT ALLOWED UNDER THIS
SUBDIVISION FOR PROPERTY WHICH IS PART OF SUCH PROJECT AS AN OVERPAYMENT
OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE  PROVISIONS  OF
SECTION  TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, SUCH
OWNER SHALL BE ALLOWED SUCH REFUND FOR A MAXIMUM OF  TEN  TAXABLE  YEARS
WITH  RESPECT  TO SUCH QUALIFIED INVESTMENT PROJECT AND EACH SIGNIFICANT
CAPITAL INVESTMENT PROJECT, STARTING WITH  THE  FIRST  TAXABLE  YEAR  IN
WHICH  PROPERTY COMPRISING SUCH PROJECT IS PLACED IN SERVICE.  PROVIDED,
FURTHER, HOWEVER, THE  PROVISIONS  OF  SUBSECTION  (C)  OF  SECTION  TEN
HUNDRED  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL
BE PAID THEREON.
  (D-1) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT  BE
ALLOWED  IF  A  GREEN ECONOMIC DEVELOPMENT ZONE RETENTION CERTIFICATE IS
NOT ISSUED PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE  COMMIS-
SIONER  OF  ECONOMIC  DEVELOPMENT TO THE GREEN ECONOMIC DEVELOPMENT ZONE
ENTERPRISE WHICH IS THE BASIS OF THE CREDIT.
  (E) AT THE OPTION OF THE  TAXPAYER  AIR  OR  WATER  POLLUTION  CONTROL
FACILITIES  WHICH QUALIFY FOR ELECTIVE DEDUCTIONS UNDER PARAGRAPH (G) OF
SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT  OF  THIS  ARTICLE  OR  AN
ELIGIBLE  BUSINESS FACILITY FOR WHICH A CREDIT IS ALLOWED UNDER SUBDIVI-
SION ELEVEN OF THIS SECTION,  OR  RESEARCH  AND  DEVELOPMENT  FACILITIES
WHICH  QUALIFY  FOR ELECTIVE DEDUCTION UNDER SUBPARAGRAPHS TWO AND THREE
OF PARAGRAPH (E) OF SUBDIVISION THREE OF THIS SECTION, OR PROPERTY WHICH
QUALIFIES FOR THE CREDIT PROVIDED UNDER SUBDIVISION TWELVE  OR  EIGHTEEN
OF  THIS  SECTION  MAY  BE  TREATED  AS PROPERTY PRINCIPALLY USED BY THE
TAXPAYER IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEM-
BLING, REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE,
VITICULTURE OR COMMERCIAL FISHING, PROVIDED THE PROPERTY OTHERWISE QUAL-
IFIES UNDER  PARAGRAPH  (B)  OF  THIS  SUBDIVISION,  IN  WHICH  EVENT  A
DEDUCTION  SHALL NOT BE ALLOWED UNDER SUCH PARAGRAPH (G), A CREDIT SHALL
NOT BE ALLOWED UNDER SUCH SUBDIVISION ELEVEN AND A DEDUCTION  SHALL  NOT
BE  ALLOWED  UNDER SUCH SUBPARAGRAPH THREE OF PARAGRAPH (E) AND A CREDIT
SHALL NOT BE ALLOWED UNDER SUCH SUBDIVISION TWELVE OR EIGHTEEN.
  (F) (1) WITH RESPECT TO PROPERTY  WHICH  IS  DEPRECIABLE  PURSUANT  TO
SECTION  ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE BUT IS NOT
SUBJECT TO THE PROVISIONS OF SECTION ONE  HUNDRED  SIXTY-EIGHT  OF  SUCH
CODE  AND WHICH IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT  IS  TO  BE  TAKEN,  THE
AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF THE CREDIT PROVIDED FOR IN

A. 10662                           17

THIS  SUBDIVISION  WHICH REPRESENTS THE RATIO WHICH THE MONTHS OF QUALI-
FIED USE BEAR TO THE MONTHS OF USEFUL LIFE. IF PROPERTY ON WHICH  CREDIT
HAS  BEEN TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE  END OF ITS USEFUL LIFE, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND
THE CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED  BACK  IN  THE  YEAR  OF
DISPOSITION. PROVIDED, HOWEVER, IF SUCH PROPERTY IS DISPOSED OF OR CEAS-
ES  TO  BE  IN QUALIFIED USE AFTER IT HAS BEEN IN QUALIFIED USE FOR MORE
THAN TWELVE CONSECUTIVE YEARS, IT SHALL NOT BE NECESSARY TO ADD BACK THE
CREDIT AS PROVIDED IN THIS SUBPARAGRAPH. THE AMOUNT  OF  CREDIT  ALLOWED
FOR ACTUAL USE SHALL BE DETERMINED BY MULTIPLYING THE ORIGINAL CREDIT BY
THE RATIO WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE MONTHS OF USEFUL
LIFE.  FOR  PURPOSES OF THIS SUBPARAGRAPH, USEFUL LIFE OF PROPERTY SHALL
BE THE SAME AS THE TAXPAYER USES FOR DEPRECIATION PURPOSES WHEN  COMPUT-
ING HIS FEDERAL INCOME TAX LIABILITY.
  (2) EXCEPT WITH RESPECT TO THAT PROPERTY TO WHICH SUBPARAGRAPH FOUR OF
THIS  PARAGRAPH APPLIES, WITH RESPECT TO THREE-YEAR PROPERTY, AS DEFINED
IN SUBSECTION (E) OF SECTION ONE HUNDRED  SIXTY-EIGHT  OF  THE  INTERNAL
REVENUE  CODE,  WHICH  IS  DISPOSED  OF OR CEASES TO BE IN QUALIFIED USE
PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT IS TO BE TAKEN,
THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF  THE  CREDIT  PROVIDED
FOR  IN  THIS SUBDIVISION WHICH REPRESENTS THE RATIO WHICH THE MONTHS OF
QUALIFIED USE BEAR TO THIRTY-SIX. IF PROPERTY ON WHICH CREDIT  HAS  BEEN
TAKEN  IS  DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO THE END
OF THIRTY-SIX MONTHS, THE DIFFERENCE BETWEEN THE CREDIT  TAKEN  AND  THE
CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF DISPOSI-
TION. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL USE SHALL BE DETERMINED BY
MULTIPLYING  THE ORIGINAL CREDIT BY THE RATIO WHICH THE MONTHS OF QUALI-
FIED USE BEAR TO THIRTY-SIX.
  (3) EXCEPT WITH RESPECT TO THAT PROPERTY TO WHICH SUBPARAGRAPH FOUR OF
THIS  PARAGRAPH  APPLIES,  WITH  RESPECT  TO  PROPERTY  SUBJECT  TO  THE
PROVISIONS  OF  SECTION  ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE
CODE OTHER THAN THREE-YEAR PROPERTY AS DEFINED IN SUBSECTION (E) OF SUCH
SECTION ONE HUNDRED SIXTY-EIGHT WHICH IS DISPOSED OF OR CEASES TO BE  IN
QUALIFIED  USE  PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT
IS TO BE TAKEN, THE AMOUNT OF THE CREDIT SHALL BE THAT  PORTION  OF  THE
CREDIT PROVIDED FOR IN THIS SUBDIVISION WHICH REPRESENTS THE RATIO WHICH
THE  MONTHS  OF QUALIFIED USE BEAR TO SIXTY. IF PROPERTY ON WHICH CREDIT
HAS BEEN TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR  TO
THE END OF SIXTY MONTHS, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND THE
CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF DISPOSI-
TION. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL USE SHALL BE DETERMINED BY
MULTIPLYING  THE ORIGINAL CREDIT BY THE RATIO WHICH THE MONTHS OF QUALI-
FIED USE BEAR TO SIXTY.
  (4) WITH  RESPECT  TO  ANY  PROPERTY  TO  WHICH  SECTION  ONE  HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE APPLIES, WHICH IS A BUILDING OR
A  STRUCTURAL COMPONENT OF A BUILDING AND WHICH IS DISPOSED OF OR CEASES
TO BE IN QUALIFIED USE PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE
CREDIT IS TO BE TAKEN, THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF
THE CREDIT PROVIDED FOR IN THIS SUBDIVISION WHICH REPRESENTS  THE  RATIO
WHICH  THE  MONTHS  OF  QUALIFIED USE BEAR TO THE TOTAL NUMBER OF MONTHS
OVER WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE  INTER-
NAL REVENUE CODE. IF PROPERTY ON WHICH CREDIT HAS BEEN TAKEN IS DISPOSED
OF  OR CEASES TO BE IN QUALIFIED USE PRIOR TO THE END OF THE PERIOD OVER
WHICH THE TAXPAYER CHOOSES TO DEDUCT THE  PROPERTY  UNDER  THE  INTERNAL
REVENUE  CODE,  THE  DIFFERENCE  BETWEEN THE CREDIT TAKEN AND THE CREDIT
ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE  YEAR  OF  DISPOSITION.

A. 10662                           18

PROVIDED,  HOWEVER,  IF  SUCH PROPERTY IS DISPOSED OF OR CEASES TO BE IN
QUALIFIED USE AFTER IT HAS BEEN IN QUALIFIED USE FOR  MORE  THAN  TWELVE
CONSECUTIVE  YEARS,  IT SHALL NOT BE NECESSARY TO ADD BACK THE CREDIT AS
PROVIDED  IN  THIS SUBPARAGRAPH. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL
USE SHALL BE DETERMINED BY MULTIPLYING THE ORIGINAL CREDIT BY THE  RATIO
WHICH  THE  MONTHS  OF  QUALIFIED USE BEAR TO THE TOTAL NUMBER OF MONTHS
OVER WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE  INTER-
NAL REVENUE CODE.
  (5) FOR PURPOSES OF THIS PARAGRAPH, DISPOSAL OR CESSATION OF QUALIFIED
USE  SHALL NOT BE DEEMED TO HAVE OCCURRED SOLELY BY REASON OF THE TERMI-
NATION OR EXPIRATION OF A GREEN ECONOMIC DEVELOPMENT ZONE'S  DESIGNATION
AS SUCH.
  (6)(A)  FOR PURPOSES OF THIS PARAGRAPH, THE DECERTIFICATION OF A BUSI-
NESS ENTERPRISE WITH RESPECT TO A GREEN ECONOMIC DEVELOPMENT ZONE  SHALL
CONSTITUTE  A  DISPOSAL OR CESSATION OF QUALIFIED USE OF THE PROPERTY ON
WHICH THE CREDIT WAS TAKEN WHICH IS LOCATED IN THE  ZONE  TO  WHICH  THE
DECERTIFICATION APPLIES, ON THE EFFECTIVE DATE OF SUCH DECERTIFICATION.
  (B)  WHERE A BUSINESS ENTERPRISE HAS BEEN DECERTIFIED BASED ON A FIND-
ING PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE COMMISSIONER OF
ECONOMIC DEVELOPMENT, THE AMOUNT REQUIRED TO BE ADDED BACK BY REASON  OF
THIS  PARAGRAPH  SHALL BE AUGMENTED BY AN AMOUNT EQUAL TO THE PRODUCT OF
THE AMOUNT OF CREDIT, WITH RESPECT TO PROPERTY WHICH IS DISPOSED  OF  OR
CEASES  TO  BE  IN QUALIFIED USE, WHICH WAS DEDUCTED FROM THE TAXPAYER'S
TAX OTHERWISE DUE  UNDER  THIS  ARTICLE  FOR  ALL  PRIOR  TAXABLE  YEARS
(SUBJECT  TO THE LIMIT SET FORTH IN THIS SUBPARAGRAPH) AND THE UNDERPAY-
MENT RATE OF INTEREST (WITHOUT REGARD TO COMPOUNDING) SET BY THE COMMIS-
SIONER OF TAXATION AND FINANCE PURSUANT TO SUBSECTION (E) OF SECTION TEN
HUNDRED NINETY-SIX OF THIS CHAPTER, IN EFFECT ON THE  LAST  DAY  OF  THE
TAXABLE  YEAR. THE LIMIT SHALL BE (I) THE AMOUNT OF CREDIT, WITH RESPECT
TO THE PROPERTY WHICH IS DISPOSED OF OR CEASES TO BE IN  QUALIFIED  USE,
WHICH  WAS  DEDUCTED  FROM  THE  TAXPAYER'S TAX OTHERWISE DUE UNDER THIS
ARTICLE FOR ALL PRIOR TAXABLE YEARS, REDUCED (BUT  NOT  BELOW  ZERO)  BY
(II)  THE  CREDIT ALLOWED FOR ACTUAL USE.  FOR PURPOSES OF THIS SUBPARA-
GRAPH, THE ATTRIBUTION TO SPECIFIC PROPERTY OF CREDIT  AMOUNTS  DEDUCTED
FROM  TAX  SHALL BE ESTABLISHED IN ACCORDANCE WITH THE DATE OF PLACEMENT
IN SERVICE OF SUCH PROPERTY IN THE GREEN ECONOMIC DEVELOPMENT ZONE.
  (C) IN NO EVENT SHALL THE AMOUNT OF THE  CREDIT  ALLOWED  PURSUANT  TO
THIS  SUBDIVISION  BE  RENDERED,  SOLELY BY REASON OF CLAUSE (A) OF THIS
SUBPARAGRAPH, LESS THAN THE AMOUNT OF THE CREDIT TO WHICH  THE  TAXPAYER
WOULD OTHERWISE BE ENTITLED UNDER SUBDIVISION TWELVE OF THIS SECTION.
  (D)  NOTWITHSTANDING  ANY  OTHER PROVISION OF THIS SUBDIVISION, IN THE
CASE OF A BUSINESS ENTERPRISE WHICH HAS BEEN DECERTIFIED, ANY AMOUNT  OF
CREDIT  ALLOWED WITH RESPECT TO THE PROPERTY OF SUCH BUSINESS ENTERPRISE
LOCATED IN THE ZONE  TO  WHICH  THE  DECERTIFICATION  APPLIES  WHICH  IS
CARRIED  OVER PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION SHALL NOT BE
CARRIED OVER BEYOND THE SEVENTH TAXABLE YEAR NEXT FOLLOWING THE  TAXABLE
YEAR  WITH  RESPECT TO WHICH THE CREDIT PROVIDED FOR IN THIS SUBDIVISION
WAS ALLOWED.
  (7) FOR PURPOSES OF THIS PARAGRAPH, WHERE A  CREDIT  IS  ALLOWED  WITH
RESPECT  TO  AN AIR POLLUTION CONTROL FACILITY ON THE BASIS OF A CERTIF-
ICATE OF COMPLIANCE ISSUED PURSUANT TO  THE  ENVIRONMENTAL  CONSERVATION
LAW  AND  THE  CERTIFICATE  IS  REVOKED PURSUANT TO SUBDIVISION THREE OF
SECTION 19-0309 OF THE ENVIRONMENTAL CONSERVATION LAW,  SUCH  REVOCATION
SHALL  CONSTITUTE  A DISPOSAL OR CESSATION OF QUALIFIED USE, EXCEPT WITH
RESPECT TO PROPERTY CONTAINED IN OR COMPRISING SUCH  FACILITY  WHICH  IS
DESCRIBED IN CLAUSE (A), (B) OR (C) OF SUBPARAGRAPH (V) OF PARAGRAPH (B)

A. 10662                           19

OF THIS SUBDIVISION OTHER THAN AS PART OF OR COMPRISING AN AIR POLLUTION
CONTROL FACILITY. ALSO FOR PURPOSES OF THIS PARAGRAPH, THE USE OF AN AIR
POLLUTION CONTROL FACILITY OR AN INDUSTRIAL WASTE TREATMENT FACILITY FOR
THE PRIMARY PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE IN THE MANU-
FACTURING  PROCESS  OR  ARE  MARKETABLE  SHALL CONSTITUTE A CESSATION OF
QUALIFIED USE, EXCEPT WITH RESPECT TO PROPERTY CONTAINED IN OR  COMPRIS-
ING  SUCH  FACILITY  WHICH IS DESCRIBED IN CLAUSE (A) OR (C) OF SUBPARA-
GRAPH (V) OF PARAGRAPH (B) OF THIS SUBDIVISION.
  (8) EXCEPT AS PROVIDED IN THIS SUBPARAGRAPH, THIS PARAGRAPH SHALL  NOT
APPLY  TO  A  CREDIT ALLOWED BY THIS SUBDIVISION TO A TAXPAYER THAT IS A
PARTNER  IN  A  PARTNERSHIP  IN  THE  CASE  OF  MANUFACTURING  PROPERTY;
PROVIDED,  AT THE TIME SUCH PROPERTY WAS PLACED IN SERVICE BY SUCH PART-
NERSHIP IN A GREEN ECONOMIC  DEVELOPMENT  ZONE  THE  BASIS  FOR  FEDERAL
INCOME  TAX  PURPOSES  OF SUCH PROPERTY (OR A PROJECT THAT INCLUDES SUCH
PROPERTY) EQUALED OR EXCEEDED THREE HUNDRED  MILLION  DOLLARS  AND  SUCH
PARTNER OWNED ITS PARTNERSHIP INTEREST FOR AT LEAST THREE YEARS FROM THE
DATE  SUCH PROPERTY WAS PLACED IN SERVICE. IF SUCH PROPERTY CEASES TO BE
IN QUALIFIED USE AFTER IT IS PLACED IN  SERVICE,  THIS  PARAGRAPH  SHALL
APPLY TO SUCH PARTNER IN THE YEAR SUCH PROPERTY CEASES TO BE IN QUALIFY-
ING USE.
  (9)  IF  A TAXPAYER, WHICH IS APPROVED BY THE COMMISSIONER OF ECONOMIC
DEVELOPMENT AS THE OWNER OF A QUALIFIED INVESTMENT PROJECT OR A  SIGNIF-
ICANT CAPITAL INVESTMENT PROJECT, FAILS TO (A) CREATE AT LEAST THE MINI-
MUM  NUMBER  OF  JOBS AT SUCH PROJECT AS REQUIRED BY THE RULES AND REGU-
LATIONS PROMULGATED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT  OR  (B)
PLACE  IN  SERVICE PROPERTY COMPRISING SUCH QUALIFIED INVESTMENT PROJECT
OR SIGNIFICANT CAPITAL INVESTMENT  PROJECT  WITH  A  BASIS  FOR  FEDERAL
INCOME  TAX  PURPOSES  EQUALING  OR  EXCEEDING  THE  APPLICABLE  MINIMUM
REQUIRED BASIS AS PROVIDED IN SUCH RULES AND REGULATIONS PROMULGATED  BY
THE  COMMISSIONER OF ECONOMIC DEVELOPMENT, WHICHEVER IS RELEVANT, BY THE
LAST DAY OF THE FIFTH TAXABLE YEAR FOLLOWING THE TAXABLE YEAR IN WHICH A
CREDIT IS FIRST ALLOWED UNDER THIS SUBDIVISION FOR  THE  PROPERTY  WHICH
COMPRISES  SUCH QUALIFIED INVESTMENT PROJECT OR SUCH SIGNIFICANT CAPITAL
INVESTMENT PROJECT, THE TOTAL AMOUNT OF THE CREDIT  ALLOWED  UNDER  THIS
SUBDIVISION  FOR  ALL  TAXABLE  YEARS WITH RESPECT TO THE PROPERTY WHICH
COMPRISES SUCH PROJECT WHICH HAS BEEN REFUNDED TO SUCH TAXPAYER SHALL BE
ADDED BACK IN SUCH TAXABLE YEAR.
  12-I. GREEN ECONOMIC  DEVELOPMENT  ZONE  EMPLOYMENT  INCENTIVE  CREDIT
(GED-EIC).    (A) WHERE A TAXPAYER IS ALLOWED A CREDIT UNDER SUBDIVISION
TWELVE-H OF THIS SECTION, THE TAXPAYER SHALL BE  ALLOWED  A  CREDIT  FOR
EACH  OF  THE THREE YEARS NEXT SUCCEEDING THE TAXABLE YEAR FOR WHICH THE
CREDIT UNDER SUBDIVISION TWELVE-H  OF  THIS  SECTION  IS  ALLOWED,  WITH
RESPECT TO SUCH PROPERTY, WHETHER OR NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
OR  IN SUBSEQUENT TAXABLE YEARS PURSUANT TO PARAGRAPH (D) OF SUCH SUBDI-
VISION TWELVE-H, OF THIRTY PERCENT OF THE CREDIT  ALLOWABLE  UNDER  SUCH
SUBDIVISION TWELVE-H; PROVIDED, HOWEVER, THAT THE CREDIT ALLOWABLE UNDER
THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL ONLY BE ALLOWED IF THE AVER-
AGE  NUMBER  OF EMPLOYEES EMPLOYED BY THE TAXPAYER IN THE GREEN ECONOMIC
DEVELOPMENT ZONE, DESIGNATED  PURSUANT  TO  ARTICLE  EIGHTEEN-D  OF  THE
GENERAL  MUNICIPAL  LAW,  IN  WHICH SUCH PROPERTY IS LOCATED DURING SUCH
TAXABLE YEAR IS AT LEAST ONE HUNDRED ONE PERCENT OF THE  AVERAGE  NUMBER
OF EMPLOYEES EMPLOYED BY THE TAXPAYER IN SUCH GREEN ECONOMIC DEVELOPMENT
ZONE  OR,  WHERE APPLICABLE, IN THE GEOGRAPHIC AREA SUBSEQUENTLY CONSTI-
TUTING SUCH ZONE, DURING THE  TAXABLE  YEAR  IMMEDIATELY  PRECEDING  THE
TAXABLE  YEAR  FOR  WHICH  THE CREDIT UNDER SUBDIVISION TWELVE-H OF THIS
SECTION IS ALLOWED AND PROVIDED, FURTHER, THAT IF THE TAXPAYER  WAS  NOT

A. 10662                           20

SUBJECT TO TAX AND DID NOT HAVE A TAXABLE YEAR IMMEDIATELY PRECEDING THE
TAXABLE  YEAR  FOR  WHICH  THE CREDIT UNDER SUBDIVISION TWELVE-H OF THIS
SECTION IS ALLOWED, THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR  ANY
TAXABLE  YEAR  SHALL  BE  ALLOWED  IF  THE  AVERAGE  NUMBER OF EMPLOYEES
EMPLOYED IN SUCH GREEN ECONOMIC DEVELOPMENT ZONE IN SUCH TAXABLE YEAR IS
AT LEAST ONE HUNDRED ONE PERCENT OF THE AVERAGE NUMBER OF SUCH EMPLOYEES
DURING THE TAXABLE YEAR IN  WHICH  THE  CREDIT  UNDER  SUCH  SUBDIVISION
TWELVE-H IS ALLOWED.
  (B)  THE  AVERAGE  NUMBER  OF  EMPLOYEES  EMPLOYED IN A GREEN ECONOMIC
DEVELOPMENT ZONE, OR, WHERE APPLICABLE, IN THE  GEOGRAPHIC  AREA  SUBSE-
QUENTLY  CONSTITUTING  SUCH ZONE, IN A TAXABLE YEAR SHALL BE COMPUTED BY
ASCERTAINING THE NUMBER OF SUCH EMPLOYEES WITHIN SUCH  ZONE,  OR,  WHERE
APPLICABLE,  IN THE GEOGRAPHIC AREA SUBSEQUENTLY CONSTITUTING SUCH ZONE,
EXCEPT GENERAL EXECUTIVE OFFICERS, EMPLOYED BY THE TAXPAYER ON THE THIR-
TY-FIRST DAY OF MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH  DAY  OF
SEPTEMBER  AND  THE THIRTY-FIRST DAY OF DECEMBER IN THE TAXABLE YEAR, BY
ADDING TOGETHER THE NUMBER OF EMPLOYEES  ASCERTAINED  ON  EACH  OF  SUCH
DATES  AND DIVIDING THE SUM SO OBTAINED BY THE NUMBER OF SUCH ABOVE-MEN-
TIONED DATES OCCURRING WITHIN THE TAXABLE YEAR. FOR THE PURPOSES OF THIS
SUBDIVISION, THE TERM "EMPLOYEES" AND THE TERM "GENERAL EXECUTIVE  OFFI-
CERS"  SHALL  MEAN THE SAME AS IN SUBPARAGRAPH THREE OF PARAGRAPH (A) OF
SUBDIVISION THREE OF THIS SECTION.
  (C) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN  AN
AMOUNT  WHICH  WILL  REDUCE  THE  TAX  PAYABLE  TO  LESS THAN THE AMOUNT
PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF  THIS  SECTION.
PROVIDED,  HOWEVER,  THAT  IF  THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS
SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX  TO  SUCH  AMOUNT,  ANY
AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
TO  THE  FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S
TAX FOR SUCH YEAR OR YEARS. IN LIEU OF SUCH CARRYOVER, ANY SUCH  TAXPAY-
ER,  WHICH IS APPROVED AS THE OWNER OF A QUALIFIED INVESTMENT PROJECT OR
A SIGNIFICANT CAPITAL INVESTMENT PROJECT PURSUANT  TO  RULES  AND  REGU-
LATIONS  PROMULGATED  BY  THE  COMMISSIONER OF ECONOMIC DEVELOPMENT, MAY
ELECT, ON ITS REPORT FOR ITS TAXABLE YEAR WITH  RESPECT  TO  WHICH  SUCH
CREDIT  IS  ALLOWED, TO TREAT FIFTY PERCENT OF THE AMOUNT OF SUCH CARRY-
OVER AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE
WITH  THE  PROVISIONS OF SECTION TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER.
PROVIDED, HOWEVER, IN THE CASE OF SUCH OWNER OF A  QUALIFIED  INVESTMENT
PROJECT  OR A SIGNIFICANT CAPITAL INVESTMENT PROJECT, ONLY FIFTY PERCENT
OF THE AMOUNT OF SUCH CARRYOVER WHICH  IS  ATTRIBUTABLE  TO  THE  CREDIT
ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO PROPERTY WHICH IS PART OF
SUCH  PROJECT SHALL BE ALLOWED TO BE CREDITED OR REFUNDED AND SUCH OWNER
SHALL BE ALLOWED SUCH CREDIT OR REFUND ONLY FOR THOSE TAXABLE  YEARS  IN
WHICH  SUCH  OWNER  WOULD  BE  ALLOWED  A  CREDIT OR REFUND OF THE GREEN
ECONOMIC DEVELOPMENT ZONE INVESTMENT TAX CREDIT  PURSUANT  TO  PARAGRAPH
(D) OF SUBDIVISION TWELVE-H OF THIS SECTION. PROVIDED, FURTHER, HOWEVER,
THE  PROVISIONS OF SUBSECTION (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  (C-1) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT  BE
ALLOWED  IF  AN EMPIRE ZONE RETENTION CERTIFICATE IS NOT ISSUED PURSUANT
TO RULES AND REGULATIONS PROMULGATED BY  THE  COMMISSIONER  OF  ECONOMIC
DEVELOPMENT  TO  THE GREEN ECONOMIC DEVELOPMENT ZONE ENTERPRISE WHICH IS
THE BASIS OF THE CREDIT.
  S 19. Section 210 of the tax law is amended by adding a  new  subdivi-
sion 41 to read as follows:

A. 10662                           21

  41.  GREEN  ECONOMIC  DEVELOPMENT ZONE WAGE TAX CREDIT. (A) A TAXPAYER
SHALL BE ALLOWED A CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER  PROVIDED,
AGAINST  THE  TAX  IMPOSED  BY  THIS ARTICLE WHERE THE TAXPAYER HAS BEEN
CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-D OF THE GENERAL  MUNICIPAL  LAW.
THE  AMOUNT  OF  SUCH  CREDIT SHALL BE AS PRESCRIBED BY PARAGRAPH (D) OF
THIS SUBDIVISION.
  (B) FOR THE PURPOSES OF THIS SUBDIVISION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "GREEN  ECONOMIC  DEVELOPMENT ZONE WAGES" MEANS WAGES PAID BY THE
TAXPAYER FOR FULL-TIME EMPLOYMENT, OTHER THAN TO GENERAL EXECUTIVE OFFI-
CERS, DURING THE TAXABLE YEAR IN AN AREA DESIGNATED OR PREVIOUSLY DESIG-
NATED AS A GREEN ECONOMIC  DEVELOPMENT  ZONE  OR  ZONE  EQUIVALENT  AREA
PURSUANT  TO ARTICLE EIGHTEEN-D OF THE GENERAL MUNICIPAL LAW, WHERE SUCH
EMPLOYMENT IS IN A JOB CREATED IN THE AREA (I) DURING THE PERIOD OF  ITS
DESIGNATION AS A GREEN ECONOMIC DEVELOPMENT ZONE, (II) WITHIN FOUR YEARS
OF  THE  EXPIRATION  OF  SUCH  DESIGNATION, OR (III) DURING THE TEN YEAR
PERIOD IMMEDIATELY FOLLOWING THE DATE OF DESIGNATION AS  A  ZONE  EQUIV-
ALENT  AREA,  PROVIDED,  HOWEVER,  THAT  IF THE TAXPAYER'S CERTIFICATION
UNDER ARTICLE EIGHTEEN-D OF THE GENERAL MUNICIPAL LAW  IS  REVOKED  WITH
RESPECT  TO  A  GREEN ECONOMIC DEVELOPMENT ZONE OR ZONE EQUIVALENT AREA,
ANY WAGES PAID BY THE TAXPAYER, ON OR AFTER THE EFFECTIVE DATE  OF  SUCH
DECERTIFICATION, FOR EMPLOYMENT IN SUCH ZONE SHALL NOT CONSTITUTE EMPIRE
ZONE WAGES.
  (2)  "TARGETED  EMPLOYEE" MEANS A NEW YORK RESIDENT WHO RECEIVES GREEN
ECONOMIC DEVELOPMENT ZONE WAGES AND WHO IS (A)  AN  ELIGIBLE  INDIVIDUAL
UNDER  THE PROVISIONS OF THE TARGETED JOBS TAX CREDIT (SECTION FIFTY-ONE
OF THE INTERNAL REVENUE CODE),  (B)  ELIGIBLE  FOR  BENEFITS  UNDER  THE
PROVISIONS  OF  THE  WORKFORCE  INVESTMENT ACT AS A DISLOCATED WORKER OR
LOW-INCOME INDIVIDUAL (P.L.  105-220, AS AMENDED), (C)  A  RECIPIENT  OF
PUBLIC  ASSISTANCE BENEFITS, (D) AN INDIVIDUAL WHOSE INCOME IS BELOW THE
MOST RECENTLY ESTABLISHED POVERTY RATE PROMULGATED BY THE UNITED  STATES
DEPARTMENT  OF  COMMERCE, OR A MEMBER OF A FAMILY WHOSE FAMILY INCOME IS
BELOW THE MOST RECENTLY ESTABLISHED  POVERTY  RATE  PROMULGATED  BY  THE
APPROPRIATE  FEDERAL AGENCY OR (E) AN HONORABLY DISCHARGED MEMBER OF ANY
BRANCH OF THE ARMED FORCES OF THE UNITED STATES.
  AN INDIVIDUAL WHO SATISFIES THE CRITERIA SET FORTH IN CLAUSE (A),  (B)
OR (D) OF THIS SUBPARAGRAPH AT THE TIME OF INITIAL EMPLOYMENT IN THE JOB
WITH RESPECT TO WHICH THE CREDIT IS CLAIMED, OR WHO SATISFIES THE CRITE-
RION SET FORTH IN CLAUSE (C) OF THIS SUBPARAGRAPH AT SUCH TIME OR AT ANY
TIME WITHIN THE PREVIOUS TWO YEARS, SHALL BE A TARGETED EMPLOYEE SO LONG
AS  SUCH INDIVIDUAL CONTINUES TO RECEIVE GREEN ECONOMIC DEVELOPMENT ZONE
WAGES.
  (3) "AVERAGE NUMBER OF INDIVIDUALS, EXCLUDING GENERAL EXECUTIVE  OFFI-
CERS,  EMPLOYED  FULL-TIME" SHALL BE COMPUTED BY ASCERTAINING THE NUMBER
OF SUCH INDIVIDUALS EMPLOYED BY THE TAXPAYER ON THE THIRTY-FIRST DAY  OF
MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE
THIRTY-FIRST  DAY OF DECEMBER DURING EACH TAXABLE YEAR OR OTHER APPLICA-
BLE PERIOD, BY ADDING TOGETHER THE NUMBER  OF  SUCH  INDIVIDUALS  ASCER-
TAINED  ON  EACH  OF  SUCH DATES AND DIVIDING THE SUM SO OBTAINED BY THE
NUMBER OF SUCH DATES OCCURRING WITHIN SUCH TAXABLE YEAR OR OTHER  APPLI-
CABLE PERIOD.
  (C)  THE  CREDIT  PROVIDED  FOR HEREIN SHALL BE ALLOWED ONLY WHERE THE
AVERAGE NUMBER OF INDIVIDUALS,  EXCLUDING  GENERAL  EXECUTIVE  OFFICERS,
EMPLOYED  FULL-TIME  BY  THE TAXPAYER IN (A) THE STATE AND (B) THE GREEN
ECONOMIC DEVELOPMENT ZONE OR AREA PREVIOUSLY CONSTITUTING SUCH  ZONE  OR
ZONE EQUIVALENT AREA, DURING THE TAXABLE YEAR EXCEEDS THE AVERAGE NUMBER

A. 10662                           22

OF  SUCH INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN (A) THE STATE
AND (B) SUCH ZONE OR AREA SUBSEQUENTLY OR PREVIOUSLY  CONSTITUTING  SUCH
ZONE  OR  SUCH ZONE EQUIVALENT AREA, RESPECTIVELY, DURING THE FOUR YEARS
IMMEDIATELY  PRECEDING  THE  FIRST  TAXABLE  YEAR IN WHICH THE CREDIT IS
CLAIMED WITH RESPECT TO SUCH ZONE OR AREA. WHERE THE  TAXPAYER  PROVIDED
FULL-TIME  EMPLOYMENT  WITHIN  (A)  THE  STATE  OR (B) SUCH ZONE OR AREA
DURING ONLY A PORTION OF SUCH FOUR-YEAR PERIOD,  THEN  FOR  PURPOSES  OF
THIS PARAGRAPH THE TERM "FOUR YEARS" SHALL BE DEEMED TO REFER INSTEAD TO
SUCH PORTION, IF ANY.
  THE  CREDIT  SHALL  BE  ALLOWED ONLY WITH RESPECT TO THE FIRST TAXABLE
YEAR DURING WHICH PAYMENTS OF GREEN ECONOMIC DEVELOPMENT ZONE WAGES  ARE
MADE  AND  THE CONDITIONS SET FORTH IN THIS PARAGRAPH ARE SATISFIED, AND
WITH RESPECT TO EACH OF THE FOUR TAXABLE YEARS NEXT FOLLOWING (BUT ONLY,
WITH RESPECT TO EACH OF SUCH YEARS, IF SUCH CONDITIONS  ARE  SATISFIED),
IN ACCORDANCE WITH PARAGRAPH (D) OF THIS SUBDIVISION. SUBSEQUENT CERTIF-
ICATIONS  OF  THE TAXPAYER PURSUANT TO ARTICLE EIGHTEEN-D OF THE GENERAL
MUNICIPAL LAW, AT THE SAME OR A DIFFERENT LOCATION  IN  THE  SAME  GREEN
ECONOMIC  DEVELOPMENT ZONE OR ZONE EQUIVALENT AREA OR AT A LOCATION IN A
DIFFERENT GREEN ECONOMIC DEVELOPMENT ZONE OR ZONE EQUIVALENT AREA, SHALL
NOT EXTEND THE FIVE TAXABLE YEAR TIME LIMITATION ON THE ALLOWANCE OF THE
CREDIT SET FORTH IN THE PRECEDING SENTENCE.  PROVIDED, FURTHER, HOWEVER,
THAT NO CREDIT SHALL BE ALLOWED WITH RESPECT TO ANY TAXABLE YEAR  BEGIN-
NING  MORE  THAN  FOUR  YEARS FOLLOWING THE TAXABLE YEAR IN WHICH DESIG-
NATION AS A GREEN ECONOMIC DEVELOPMENT ZONE EXPIRED  OR  MORE  THAN  TEN
YEARS  AFTER  THE  DESIGNATION AS A ZONE EQUIVALENT AREA. IN LIEU OF THE
FIVE YEAR TIME PERIOD DESCRIBED IN THE PRECEDING SENTENCES OF THIS PARA-
GRAPH FOR THE ALLOWANCE OF THIS  CREDIT,  WITH  RESPECT  TO  A  BUSINESS
ENTERPRISE  WHICH QUALIFIES AS A NEW BUSINESS PURSUANT TO PARAGRAPH FIVE
OF SUBDIVISION (J) OF SECTION FOURTEEN OF THIS CHAPTER, THE CREDIT SHALL
BE ALLOWED WITH RESPECT TO THE FIRST TAXABLE YEAR OF THE BUSINESS ENTER-
PRISE'S BUSINESS TAX BENEFIT PERIOD, AS DETERMINED PURSUANT TO PARAGRAPH
ONE-A OF SUBDIVISION (A) OF SECTION FOURTEEN  OF  THIS  CHAPTER,  DURING
WHICH  PAYMENTS  OF  GREEN  ECONOMIC DEVELOPMENT ZONE WAGES ARE MADE AND
WITH RESPECT TO EACH OF  THE  FOUR  TAXABLE  YEARS  NEXT  FOLLOWING,  IN
ACCORDANCE WITH PARAGRAPH (D) OF THIS SUBDIVISION.
  (D) THE AMOUNT OF THE CREDIT SHALL EQUAL THE SUM OF (1) THE PRODUCT OF
THREE  THOUSAND DOLLARS AND THE AVERAGE NUMBER OF INDIVIDUALS (EXCLUDING
GENERAL EXECUTIVE OFFICERS) EMPLOYED FULL-TIME BY THE TAXPAYER, COMPUTED
PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH THREE  OF  PARAGRAPH  (B)  OF
THIS SUBDIVISION, WHO
  (A)  RECEIVED GREEN ECONOMIC DEVELOPMENT ZONE WAGES FOR MORE THAN HALF
OF THE TAXABLE YEAR,
  (B) RECEIVED, WITH RESPECT TO MORE THAN HALF OF THE PERIOD OF  EMPLOY-
MENT  BY  THE TAXPAYER DURING THE TAXABLE YEAR, AN HOURLY WAGE WHICH WAS
AT LEAST ONE HUNDRED THIRTY-FIVE PERCENT OF THE MINIMUM  WAGE  SPECIFIED
IN SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR LAW, AND
  (C) ARE TARGETED EMPLOYEES; AND
  (2)  THE  PRODUCT OF FIFTEEN HUNDRED DOLLARS AND THE AVERAGE NUMBER OF
INDIVIDUALS  (EXCLUDING  GENERAL  EXECUTIVE  OFFICERS  AND   INDIVIDUALS
DESCRIBED  IN  SUBPARAGRAPH ONE OF THIS PARAGRAPH) EMPLOYED FULL-TIME BY
THE TAXPAYER, COMPUTED PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH  THREE
OF PARAGRAPH (B) OF THIS SUBDIVISION, WHO RECEIVED GREEN ECONOMIC DEVEL-
OPMENT ZONE WAGES FOR MORE THAN HALF OF THE TAXABLE YEAR.
  PROVIDED,  FURTHER,  HOWEVER, THAT THE CREDIT PROVIDED FOR HEREIN WITH
RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH CREDIT TO THE  TAXA-
BLE  YEAR,  DEDUCTED  FROM THE TAX OTHERWISE DUE, MAY NOT, IN THE AGGRE-

A. 10662                           23

GATE, EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER SECTION TWO  HUNDRED
NINE  OF THIS ARTICLE COMPUTED WITHOUT REGARD TO ANY CREDIT PROVIDED FOR
BY THIS ARTICLE.
  (3)  FOR PURPOSES OF CALCULATING THE AMOUNT OF THE CREDIT, INDIVIDUALS
EMPLOYED WITHIN A GREEN ECONOMIC DEVELOPMENT  ZONE  OR  ZONE  EQUIVALENT
AREA  WITHIN THE IMMEDIATELY PRECEDING SIXTY MONTHS BY A RELATED PERSON,
AS SUCH TERM IS DEFINED  IN  SUBPARAGRAPH  (C)  OF  PARAGRAPH  THREE  OF
SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVEN-
UE  CODE,  SHALL  NOT  BE  INCLUDED IN THE AVERAGE NUMBER OF INDIVIDUALS
DESCRIBED IN SUBPARAGRAPH ONE OR SUBPARAGRAPH  TWO  OF  THIS  PARAGRAPH,
UNLESS  SUCH RELATED PERSON WAS NEVER ALLOWED A CREDIT UNDER THIS SUBDI-
VISION WITH RESPECT TO SUCH EMPLOYEES. FOR THE PURPOSES OF THIS SUBPARA-
GRAPH, A "RELATED PERSON" SHALL INCLUDE AN ENTITY WHICH WOULD HAVE QUAL-
IFIED AS A  "RELATED  PERSON"  TO  THE  TAXPAYER  IF  IT  HAD  NOT  BEEN
DISSOLVED, LIQUIDATED, MERGED WITH ANOTHER ENTITY OR OTHERWISE CEASED TO
EXIST OR OPERATE.
  (4)  IF  A  TAXPAYER IS CERTIFIED IN A GREEN ECONOMIC DEVELOPMENT ZONE
DESIGNATED UNDER SECTION NINE  HUNDRED  SEVENTY-FOUR-C  OF  THE  GENERAL
MUNICIPAL  LAW,  THE  DOLLAR AMOUNTS SPECIFIED UNDER SUBPARAGRAPH ONE OR
TWO OF THIS PARAGRAPH SHALL BE INCREASED BY  FIVE  HUNDRED  DOLLARS  FOR
EACH QUALIFYING INDIVIDUAL UNDER SUCH SUBPARAGRAPHS WHO RECEIVED, DURING
THE TAXABLE YEAR, WAGES IN EXCESS OF FORTY THOUSAND DOLLARS.
  (5)  THE  REQUIREMENT  IN THIS PARAGRAPH THAT AN EMPLOYEE MUST RECEIVE
GREEN ECONOMIC DEVELOPMENT ZONE WAGES FOR MORE  THAN  HALF  THE  TAXABLE
YEAR  SHALL NOT APPLY IN THE FIRST TAXABLE YEAR OF A TAXPAYER SATISFYING
THE CRITERIA SET FORTH IN THIS SUBPARAGRAPH. IN SUCH A CASE, THE  CREDIT
ALLOWED UNDER THIS SUBDIVISION SHALL BE COMPUTED BY UTILIZING THE NUMBER
OF INDIVIDUALS (EXCLUDING GENERAL EXECUTIVE OFFICERS) EMPLOYED FULL TIME
BY  THE  TAXPAYER  ON THE LAST DAY OF ITS FIRST TAXABLE YEAR. A TAXPAYER
SHALL SATISFY THE FOLLOWING CRITERIA: (A) SUCH TAXPAYER ACQUIRED REAL OR
TANGIBLE PERSONAL PROPERTY DURING ITS FIRST TAXABLE YEAR FROM AN  ENTITY
WHICH  IS  NOT  A RELATED PERSON (AS SUCH TERM IS DEFINED IN SUBDIVISION
(G) OF SECTION FOURTEEN OF THIS CHAPTER); (B) THE FIRST TAXABLE YEAR  OF
SUCH  TAXPAYER  SHALL  BE  A  SHORT  TAXABLE YEAR OF NOT MORE THAN SEVEN
MONTHS IN DURATION; AND (C) THE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME
ON THE LAST DAY OF SUCH FIRST TAXABLE YEAR SHALL BE AT LEAST ONE HUNDRED
NINETY AND SUBSTANTIALLY ALL OF SUCH INDIVIDUALS MUST HAVE  BEEN  PREVI-
OUSLY  EMPLOYED  BY  THE  ENTITY  FROM  WHOM SUCH TAXPAYER PURCHASED ITS
ASSETS.
  (E) THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS SUBDI-
VISION FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE  TAX
DUE  FOR  SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN
PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION.  HOWEVER,  IF
THE  AMOUNT  OF  CREDIT  OR  CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWED
UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE  TAX  TO  SUCH
AMOUNT,  OR  IF  ANY PART OF THE CREDIT OR CARRYOVERS OF SUCH CREDIT MAY
NOT BE DEDUCTED FROM THE TAX  OTHERWISE  DUE  BY  REASON  OF  THE  FINAL
SENTENCE  OF  PARAGRAPH (D) OF THIS SUBDIVISION, ANY AMOUNT OF CREDIT OR
CARRYOVERS OF SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE  YEAR  MAY
BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAX FOR SUCH YEAR OR YEARS. IN LIEU  OF  SUCH  CARRYOVER,  ANY  SUCH
TAXPAYER WHICH QUALIFIES AS A NEW BUSINESS UNDER PARAGRAPH (J) OF SUBDI-
VISION  TWELVE  OF  THIS  SECTION OR A TAXPAYER WHICH IS APPROVED AS THE
OWNER OF A QUALIFIED INVESTMENT PROJECT OR A SIGNIFICANT CAPITAL INVEST-
MENT PROJECT PURSUANT  TO  RULES  AND  REGULATIONS  PROMULGATED  BY  THE
COMMISSIONER  OF  ECONOMIC  DEVELOPMENT MAY ELECT, ON ITS REPORT FOR ITS

A. 10662                           24

TAXABLE YEAR WITH RESPECT TO WHICH SUCH  CREDIT  IS  ALLOWED,  TO  TREAT
FIFTY  PERCENT  OF THE AMOUNT OF SUCH CARRYOVER AS AN OVERPAYMENT OF TAX
TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF  SECTION
TEN  HUNDRED  EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, IN THE CASE
OF SUCH OWNER OF A QUALIFIED INVESTMENT PROJECT OR  SIGNIFICANT  CAPITAL
INVESTMENT  PROJECT,  ONLY FIFTY PERCENT OF THE AMOUNT OF SUCH CARRYOVER
WHICH IS ATTRIBUTABLE TO THE CREDIT ALLOWED UNDER THIS  SUBDIVISION  FOR
INDIVIDUALS  EMPLOYED AT SUCH PROJECT SHALL BE ALLOWED TO BE CREDITED OR
REFUNDED. PROVIDED, FURTHER, HOWEVER, THE PROVISIONS OF  SUBSECTION  (C)
OF  SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST SHALL BE PAID THEREON.
  (E-1) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT  BE
ALLOWED  IF  A  GREEN ECONOMIC DEVELOPMENT ZONE RETENTION CERTIFICATE IS
NOT ISSUED PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE  COMMIS-
SIONER  OF  ECONOMIC  DEVELOPMENT TO THE GREEN ECONOMIC DEVELOPMENT ZONE
ENTERPRISE WHICH IS THE BASIS OF THE CREDIT.
  (F) FOR THE INTERACTION OF THIS SUBDIVISION AND  SUBDIVISION  TWELVE-D
OF THIS SECTION (EMPLOYMENT INCENTIVE CREDIT), SEE PARAGRAPH (B) OF SUCH
SUBDIVISION TWELVE-D.
  S 20. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:
(XXXI) GREEN ECONOMIC DEVELOPMENT ZONE         AMOUNT OF CREDIT UNDER
WAGE TAX CREDIT UNDER SUBSECTION               SUBDIVISION FORTY-ONE OF
(QQ)                                           SECTION TWO HUNDRED TEN
  S 21. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) GREEN ECONOMIC DEVELOPMENT ZONE WAGE TAX CREDIT. (1)  A  TAXPAYER
SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS HEREINAFTER PROVIDED,
AGAINST THE TAX IMPOSED BY THIS ARTICLE, WHERE  THE  TAXPAYER  HAS  BEEN
CERTIFIED  PURSUANT  TO ARTICLE EIGHTEEN-D OF THE GENERAL MUNICIPAL LAW.
THE AMOUNT OF SUCH CREDIT SHALL BE AS PRESCRIBED IN  PARAGRAPH  FOUR  OF
THIS SUBSECTION.
  (2)  FOR  THE  PURPOSES  OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS: (A) "GREEN ECONOMIC DEVELOPMENT ZONE WAGES"
MEANS WAGES PAID BY THE TAXPAYER FOR  FULL-TIME  EMPLOYMENT  DURING  THE
TAXABLE  YEAR, IN AN AREA DESIGNATED OR PREVIOUSLY DESIGNATED AS A GREEN
ECONOMIC DEVELOPMENT ZONE OR ZONE EQUIVALENT AREA  PURSUANT  TO  ARTICLE
EIGHTEEN-D  OF  THE GENERAL MUNICIPAL LAW, WHERE SUCH EMPLOYMENT IS IN A
JOB CREATED IN THE AREA (I) DURING THE PERIOD OF ITS  DESIGNATION  AS  A
GREEN  ECONOMIC  DEVELOPMENT ZONE, (II) WITHIN FOUR YEARS OF THE EXPIRA-
TION OF SUCH DESIGNATION, OR (III) DURING THE TEN YEAR PERIOD IMMEDIATE-
LY FOLLOWING  THE  DATE  OF  DESIGNATION  AS  A  ZONE  EQUIVALENT  AREA,
PROVIDED,  HOWEVER,  THAT  IF THE TAXPAYER'S CERTIFICATION UNDER ARTICLE
EIGHTEEN-D OF THE GENERAL MUNICIPAL LAW IS REVOKED  WITH  RESPECT  TO  A
GREEN  ECONOMIC DEVELOPMENT ZONE OR ZONE EQUIVALENT AREA, ANY WAGES PAID
BY THE TAXPAYER, ON OR AFTER THE EFFECTIVE DATE OF SUCH DECERTIFICATION,
FOR EMPLOYMENT IN SUCH ZONE SHALL NOT CONSTITUTE GREEN ECONOMIC DEVELOP-
MENT ZONE WAGES.
  (B) "TARGETED EMPLOYEE" MEANS A NEW YORK RESIDENT WHO  RECEIVES  GREEN
ECONOMIC  DEVELOPMENT  ZONE  WAGES AND WHO IS (I) AN ELIGIBLE INDIVIDUAL
UNDER THE PROVISIONS OF THE TARGETED JOBS TAX CREDIT (SECTION  FIFTY-ONE
OF  THE  INTERNAL  REVENUE  CODE),  (II) ELIGIBLE FOR BENEFITS UNDER THE
PROVISIONS OF THE WORKFORCE INVESTMENT ACT AS  A  DISLOCATED  WORKER  OR
LOW-INCOME  INDIVIDUAL (P.L.  105-220, AS AMENDED), (III) A RECIPIENT OF
PUBLIC ASSISTANCE BENEFITS, (IV) AN INDIVIDUAL WHOSE INCOME IS BELOW THE

A. 10662                           25

MOST RECENTLY ESTABLISHED POVERTY RATE PROMULGATED BY THE UNITED  STATES
DEPARTMENT  OF  COMMERCE, OR A MEMBER OF A FAMILY WHOSE FAMILY INCOME IS
BELOW THE MOST RECENTLY ESTABLISHED  POVERTY  RATE  PROMULGATED  BY  THE
APPROPRIATE  FEDERAL AGENCY OR (V) AN HONORABLY DISCHARGED MEMBER OF ANY
BRANCH OF THE ARMED FORCES OF THE UNITED STATES.
  AN INDIVIDUAL WHO SATISFIES THE CRITERIA  SET  FORTH  IN  CLAUSE  (I),
(II), (IV) OR (V) OF THIS SUBPARAGRAPH AT THE TIME OF INITIAL EMPLOYMENT
IN THE JOB WITH RESPECT TO WHICH THE CREDIT IS CLAIMED, OR WHO SATISFIES
THE  CRITERION  SET  FORTH  IN CLAUSE (III) OF THIS SUBPARAGRAPH AT SUCH
TIME OR AT ANY TIME WITHIN THE PREVIOUS TWO YEARS, SHALL BE  A  TARGETED
EMPLOYEE  SO LONG AS SUCH INDIVIDUAL CONTINUES TO RECEIVE GREEN ECONOMIC
DEVELOPMENT ZONE WAGES.
  (C) "AVERAGE  NUMBER  OF  INDIVIDUALS  EMPLOYED  FULL-TIME"  SHALL  BE
COMPUTED  BY ASCERTAINING THE NUMBER OF SUCH INDIVIDUALS EMPLOYED BY THE
TAXPAYER ON THE THIRTY-FIRST DAY OF MARCH, THE THIRTIETH  DAY  OF  JUNE,
THE  THIRTIETH  DAY  OF  SEPTEMBER  AND THE THIRTY-FIRST DAY OF DECEMBER
DURING EACH TAXABLE YEAR OR OTHER APPLICABLE PERIOD, BY ADDING  TOGETHER
THE  NUMBER  OF  SUCH  INDIVIDUALS ASCERTAINED ON EACH OF SUCH DATES AND
DIVIDING THE SUM SO OBTAINED BY THE NUMBER OF SUCH DATES OCCURRING WITH-
IN SUCH TAXABLE YEAR OR OTHER APPLICABLE PERIOD.
  (3) THE CREDIT PROVIDED FOR HEREIN SHALL BE  ALLOWED  ONLY  WHERE  THE
AVERAGE  NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN (A)
THE STATE AND (B) THE GREEN ECONOMIC DEVELOPMENT ZONE OR AREA PREVIOUSLY
CONSTITUTING SUCH ZONE OR ZONE EQUIVALENT AREA, DURING THE TAXABLE  YEAR
EXCEEDS THE AVERAGE NUMBER OF SUCH INDIVIDUALS EMPLOYED FULL-TIME BY THE
TAXPAYER  IN  (A)  THE  STATE  AND (B) SUCH ZONE OR AREA SUBSEQUENTLY OR
PREVIOUSLY CONSTITUTING SUCH ZONE OR SUCH ZONE EQUIVALENT AREA,  RESPEC-
TIVELY,  DURING  THE  FOUR YEARS IMMEDIATELY PRECEDING THE FIRST TAXABLE
YEAR IN WHICH THE CREDIT IS CLAIMED WITH RESPECT TO SUCH ZONE  OR  AREA.
WHERE THE TAXPAYER PROVIDED FULL-TIME EMPLOYMENT WITHIN (A) THE STATE OR
(B)  SUCH  ZONE  OR AREA DURING ONLY A PORTION OF SUCH FOUR-YEAR PERIOD,
THEN FOR PURPOSES OF THIS PARAGRAPH  THE  TERM  "FOUR  YEARS"  SHALL  BE
DEEMED TO REFER INSTEAD TO SUCH PORTION, IF ANY.
  THE  CREDIT  SHALL  BE  ALLOWED ONLY WITH RESPECT TO THE FIRST TAXABLE
YEAR DURING WHICH PAYMENTS OF GREEN ECONOMIC DEVELOPMENT ZONE WAGES  ARE
MADE  AND  THE CONDITIONS SET FORTH IN THIS PARAGRAPH ARE SATISFIED, AND
WITH RESPECT TO EACH OF THE FOUR TAXABLE YEARS NEXT FOLLOWING (BUT ONLY,
WITH RESPECT TO EACH OF SUCH YEARS, IF SUCH CONDITIONS  ARE  SATISFIED),
IN ACCORDANCE WITH PARAGRAPH FOUR OF THIS SUBSECTION. SUBSEQUENT CERTIF-
ICATIONS  OF  THE TAXPAYER PURSUANT TO ARTICLE EIGHTEEN-D OF THE GENERAL
MUNICIPAL LAW, AT THE SAME OR A DIFFERENT LOCATION  IN  THE  SAME  GREEN
ECONOMIC  DEVELOPMENT ZONE OR ZONE EQUIVALENT AREA OR AT A LOCATION IN A
DIFFERENT GREEN ECONOMIC DEVELOPMENT ZONE OR ZONE EQUIVALENT AREA, SHALL
NOT EXTEND THE FIVE TAXABLE YEAR TIME LIMITATION ON THE ALLOWANCE OF THE
CREDIT SET FORTH IN THE PRECEDING SENTENCE.  PROVIDED, FURTHER, HOWEVER,
THAT NO CREDIT SHALL BE ALLOWED WITH RESPECT TO ANY TAXABLE YEAR  BEGIN-
NING  MORE  THAN  FOUR  YEARS FOLLOWING THE TAXABLE YEAR IN WHICH DESIG-
NATION AS A GREEN ECONOMIC DEVELOPMENT ZONE EXPIRED  OR  MORE  THAN  TEN
YEARS AFTER THE DESIGNATION AS A ZONE EQUIVALENT AREA.
  (4) THE AMOUNT OF THE CREDIT SHALL EQUAL THE SUM OF
  (A)  THE  PRODUCT  OF THREE THOUSAND DOLLARS AND THE AVERAGE NUMBER OF
INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER, COMPUTED PURSUANT TO THE
PROVISIONS OF SUBPARAGRAPH (C) OF PARAGRAPH TWO OF THIS SUBSECTION, WHO
  (I) RECEIVED GREEN ECONOMIC DEVELOPMENT ZONE WAGES FOR MORE THAN  HALF
OF THE TAXABLE YEAR,

A. 10662                           26

  (II)  RECEIVED WITH RESPECT TO MORE THAN HALF OF THE PERIOD OF EMPLOY-
MENT BY THE TAXPAYER DURING THE TAXABLE YEAR, AN HOURLY WAGE  WHICH  WAS
AT  LEAST  ONE HUNDRED THIRTY-FIVE PERCENT OF THE MINIMUM WAGE SPECIFIED
IN SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR LAW, AND
  (III) ARE TARGETED EMPLOYEES; AND
  (B)  THE  PRODUCT OF FIFTEEN HUNDRED DOLLARS AND THE AVERAGE NUMBER OF
INDIVIDUALS (EXCLUDING INDIVIDUALS DESCRIBED IN SUBPARAGRAPH (A) OF THIS
PARAGRAPH) EMPLOYED FULL-TIME BY THE TAXPAYER, COMPUTED PURSUANT TO  THE
PROVISIONS  OF SUBPARAGRAPH (C) OF PARAGRAPH TWO OF THIS SUBSECTION, WHO
RECEIVED GREEN ECONOMIC DEVELOPMENT ZONE WAGES FOR MORE THAN HALF OF THE
TAXABLE YEAR.
  PROVIDED, FURTHER, HOWEVER, THAT THE CREDIT PROVIDED FOR  HEREIN  WITH
RESPECT  TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH CREDIT TO THE TAXA-
BLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE, MAY NOT,  IN  THE  AGGRE-
GATE,  EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER SECTION SIX HUNDRED
ONE OF THIS PART COMPUTED WITHOUT REGARD  TO  ANY  CREDIT  PROVIDED  FOR
UNDER THIS ARTICLE.
  (C)  FOR PURPOSES OF CALCULATING THE AMOUNT OF THE CREDIT, INDIVIDUALS
EMPLOYED WITHIN A GREEN ECONOMIC DEVELOPMENT  ZONE  OR  ZONE  EQUIVALENT
AREA  WITHIN THE IMMEDIATELY PRECEDING SIXTY MONTHS BY A RELATED PERSON,
AS SUCH TERM IS DEFINED  IN  SUBPARAGRAPH  (C)  OF  PARAGRAPH  THREE  OF
SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVEN-
UE  CODE,  SHALL  NOT  BE  INCLUDED IN THE AVERAGE NUMBER OF INDIVIDUALS
DESCRIBED IN SUBPARAGRAPH (A) OR SUBPARAGRAPH  (B)  OF  THIS  PARAGRAPH,
UNLESS  SUCH  RELATED  PERSON  WAS  NEVER  ALLOWED  A  CREDIT UNDER THIS
SUBSECTION WITH RESPECT TO SUCH EMPLOYEES. FOR PURPOSES OF THIS SUBPARA-
GRAPH, A "RELATED PERSON" SHALL INCLUDE AN ENTITY WHICH WOULD HAVE QUAL-
IFIED AS A  "RELATED  PERSON"  TO  THE  TAXPAYER  IF  IT  HAD  NOT  BEEN
DISSOLVED, LIQUIDATED, MERGED WITH ANOTHER ENTITY OR OTHERWISE CEASED TO
EXIST OR OPERATE.
  (D)  IF  A  TAXPAYER IS CERTIFIED IN A GREEN ECONOMIC DEVELOPMENT ZONE
DESIGNATED UNDER SECTION NINE  HUNDRED  SEVENTY-FOUR-C  OF  THE  GENERAL
MUNICIPAL  LAW,  THE  DOLLAR AMOUNTS SPECIFIED UNDER SUBPARAGRAPH (A) OR
(B) OF THIS PARAGRAPH SHALL BE INCREASED BY  FIVE  HUNDRED  DOLLARS  FOR
EACH QUALIFYING INDIVIDUAL UNDER SUCH SUBPARAGRAPHS WHO RECEIVED, DURING
THE TAXABLE YEAR, WAGES IN EXCESS OF FORTY THOUSAND DOLLARS.
  (E)  THE  REQUIREMENT  IN THIS PARAGRAPH THAT AN EMPLOYEE MUST RECEIVE
GREEN ECONOMIC DEVELOPMENT ZONE WAGES FOR MORE  THAN  HALF  THE  TAXABLE
YEAR  SHALL NOT APPLY IN THE FIRST TAXABLE YEAR OF A TAXPAYER SATISFYING
THE CRITERIA SET FORTH IN THIS SUBPARAGRAPH. IN SUCH A CASE, THE  CREDIT
ALLOWED  UNDER THIS SUBSECTION SHALL BE COMPUTED BY UTILIZING THE NUMBER
OF INDIVIDUALS (EXCLUDING GENERAL EXECUTIVE OFFICERS) EMPLOYED FULL-TIME
BY THE TAXPAYER ON THE LAST DAY OF ITS FIRST TAXABLE  YEAR.  A  TAXPAYER
SHALL SATISFY THE FOLLOWING CRITERIA: (I) SUCH TAXPAYER ACQUIRED REAL OR
TANGIBLE  PERSONAL PROPERTY DURING ITS FIRST TAXABLE YEAR FROM AN ENTITY
WHICH IS NOT A RELATED PERSON (AS SUCH TERM IS  DEFINED  IN  SUBDIVISION
(G) OF SECTION FOURTEEN OF THIS CHAPTER); (II) THE FIRST TAXABLE YEAR OF
SUCH  TAXPAYER  SHALL  BE  A  SHORT  TAXABLE YEAR OF NOT MORE THAN SEVEN
MONTHS IN  DURATION;  AND  (III)  THE  NUMBER  OF  INDIVIDUALS  EMPLOYED
FULL-TIME  ON  THE LAST DAY OF SUCH FIRST TAXABLE YEAR SHALL BE AT LEAST
ONE HUNDRED NINETY AND SUBSTANTIALLY ALL OF SUCH INDIVIDUALS  MUST  HAVE
BEEN PREVIOUSLY EMPLOYED BY THE ENTITY FROM WHOM SUCH TAXPAYER PURCHASED
ITS ASSETS.
  (5)  IF THE AMOUNT OF THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED  THE  TAXPAYER'S
TAX  FOR  SUCH  YEAR,  THE  EXCESS, AS WELL AS ANY PART OF THE CREDIT OR

A. 10662                           27

CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED  FROM  THE
TAX  OTHERWISE  DUE BY REASON OF THE FINAL SENTENCE IN PARAGRAPH FOUR OF
THIS SUBSECTION, MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS  AND
MAY  BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. IN LIEU
OF CARRYING OVER ANY SUCH EXCESS, A TAXPAYER WHO QUALIFIES AS  AN  OWNER
OF  A  NEW  BUSINESS  FOR PURPOSES OF PARAGRAPH TEN OF SUBSECTION (A) OF
THIS SECTION MAY, AT HIS OPTION, RECEIVE FIFTY PERCENT OF SUCH EXCESS AS
A REFUND. ANY REFUND PAID PURSUANT TO THIS PARAGRAPH SHALL BE DEEMED  TO
BE  A REFUND OF AN OVERPAYMENT OF TAX AS PROVIDED IN SECTION SIX HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE
PAID THEREON.
  (5-A) ANY CARRYOVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL  NOT  BE
ALLOWED  IF  A  GREEN ECONOMIC DEVELOPMENT ZONE RETENTION CERTIFICATE IS
NOT ISSUED PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE  COMMIS-
SIONER  OF  ECONOMIC  DEVELOPMENT TO THE GREEN ECONOMIC DEVELOPMENT ZONE
ENTERPRISE WHICH IS THE BASIS OF THE CREDIT.
  S 22. Section 1456  of  the  tax  law  is  amended  by  adding  a  new
subsection (u) to read as follows:
  (U)  GREEN  ECONOMIC  DEVELOPMENT ZONE WAGE TAX CREDIT. (1) A TAXPAYER
SHALL BE ALLOWED A CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER  PROVIDED,
AGAINST  THE  TAX  IMPOSED  BY  THIS ARTICLE WHERE THE TAXPAYER HAS BEEN
CERTIFIED PURSUANT TO ARTICLE EIGHTEEN-D OF THE GENERAL  MUNICIPAL  LAW.
THE  AMOUNT  OF  SUCH CREDIT SHALL BE AS PRESCRIBED IN PARAGRAPH FOUR OF
THIS SUBSECTION.
  (2) FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  TERMS  SHALL  HAVE
THE  FOLLOWING  MEANINGS:  (A)  "GREEN  ECONOMIC DEVELOPMENT ZONE WAGES"
MEANS WAGES PAID BY THE TAXPAYER FOR FULL-TIME EMPLOYMENT, OTHER THAN TO
GENERAL EXECUTIVE OFFICERS, DURING THE TAXABLE YEAR IN  AN  AREA  DESIG-
NATED  OR  PREVIOUSLY DESIGNATED AS A GREEN ECONOMIC DEVELOPMENT ZONE OR
ZONE EQUIVALENT AREA PURSUANT  TO  ARTICLE  EIGHTEEN-D  OF  THE  GENERAL
MUNICIPAL  LAW WHERE SUCH EMPLOYMENT IS IN A JOB CREATED IN THE AREA (I)
DURING THE PERIOD OF ITS DESIGNATION AS  A  GREEN  ECONOMIC  DEVELOPMENT
ZONE,  (II)  WITHIN FOUR YEARS OF THE EXPIRATION OF SUCH DESIGNATION, OR
(III) DURING THE TEN YEAR  PERIOD  IMMEDIATELY  FOLLOWING  THE  DATE  OF
DESIGNATION  AS  A  ZONE EQUIVALENT AREA, PROVIDED, HOWEVER, THAT IF THE
TAXPAYER'S CERTIFICATION UNDER ARTICLE EIGHTEEN-D OF THE GENERAL MUNICI-
PAL LAW IS REVOKED WITH RESPECT TO A GREEN ECONOMIC DEVELOPMENT ZONE  OR
ZONE  EQUIVALENT  AREA,  ANY WAGES PAID BY THE TAXPAYER, ON OR AFTER THE
EFFECTIVE DATE OF SUCH DECERTIFICATION,  FOR  EMPLOYMENT  IN  SUCH  ZONE
SHALL NOT CONSTITUTE EMPIRE ZONE WAGES.
  (B)  "TARGETED  EMPLOYEE" MEANS A NEW YORK RESIDENT WHO RECEIVES GREEN
ECONOMIC DEVELOPMENT ZONE WAGES AND WHO IS (I)  AN  ELIGIBLE  INDIVIDUAL
UNDER  THE PROVISIONS OF THE TARGETED JOBS TAX CREDIT (SECTION FIFTY-ONE
OF THE INTERNAL REVENUE CODE), (II)  ELIGIBLE  FOR  BENEFITS  UNDER  THE
PROVISIONS  OF  THE  WORKFORCE  INVESTMENT ACT AS A DISLOCATED WORKER OR
LOW-INCOME INDIVIDUAL (P.L.  105-220, AS AMENDED), (III) A RECIPIENT  OF
PUBLIC ASSISTANCE BENEFITS, (IV) AN INDIVIDUAL WHOSE INCOME IS BELOW THE
MOST  RECENTLY ESTABLISHED POVERTY RATE PROMULGATED BY THE UNITED STATES
DEPARTMENT OF COMMERCE, OR A MEMBER OF A FAMILY WHOSE FAMILY  INCOME  IS
BELOW  THE  MOST  RECENTLY  ESTABLISHED  POVERTY RATE PROMULGATED BY THE
APPROPRIATE FEDERAL AGENCY OR (V) AN HONORABLY DISCHARGED MEMBER OF  ANY
BRANCH OF THE ARMED FORCES OF THE UNITED STATES.
  AN  INDIVIDUAL  WHO  SATISFIES  THE  CRITERIA SET FORTH IN CLAUSE (I),
(II), (IV) OR (V) OF THIS SUBPARAGRAPH AT THE TIME OF INITIAL EMPLOYMENT
IN THE JOB WITH RESPECT TO WHICH THE CREDIT IS CLAIMED, OR WHO SATISFIES
THE CRITERION SET FORTH IN CLAUSE (III) OF  THIS  SUBPARAGRAPH  AT  SUCH

A. 10662                           28

TIME  OR  AT ANY TIME WITHIN THE PREVIOUS TWO YEARS, SHALL BE A TARGETED
EMPLOYEE SO LONG AS SUCH INDIVIDUAL CONTINUES TO RECEIVE GREEN  ECONOMIC
DEVELOPMENT ZONE WAGES.
  (C)  "AVERAGE NUMBER OF INDIVIDUALS, EXCLUDING GENERAL EXECUTIVE OFFI-
CERS, EMPLOYED FULL-TIME" SHALL BE COMPUTED BY ASCERTAINING  THE  NUMBER
OF  SUCH INDIVIDUALS EMPLOYED BY THE TAXPAYER ON THE THIRTY-FIRST DAY OF
MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE
THIRTY-FIRST DAY OF DECEMBER DURING EACH TAXABLE YEAR OR OTHER  APPLICA-
BLE  PERIOD,  BY  ADDING  TOGETHER THE NUMBER OF SUCH INDIVIDUALS ASCER-
TAINED ON EACH OF SUCH DATES AND DIVIDING THE SUM  SO  OBTAINED  BY  THE
NUMBER  OF SUCH DATES OCCURRING WITHIN SUCH TAXABLE YEAR OR OTHER APPLI-
CABLE PERIOD.
  (3) THE CREDIT PROVIDED FOR HEREIN SHALL BE  ALLOWED  ONLY  WHERE  THE
AVERAGE  NUMBER  OF  INDIVIDUALS,  EXCLUDING GENERAL EXECUTIVE OFFICERS,
EMPLOYED FULL-TIME BY THE TAXPAYER IN (I) THE STATE AND (II)  THE  GREEN
ECONOMIC  DEVELOPMENT  ZONE OR AREA PREVIOUSLY CONSTITUTING SUCH ZONE OR
ZONE EQUIVALENT AREA, DURING THE TAXABLE YEAR EXCEEDS THE AVERAGE NUMBER
OF SUCH INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN (I) THE  STATE
AND  (II) SUCH ZONE OR AREA SUBSEQUENTLY OR PREVIOUSLY CONSTITUTING SUCH
ZONE OR SUCH ZONE EQUIVALENT AREA, RESPECTIVELY, DURING THE  FOUR  YEARS
IMMEDIATELY  PRECEDING  THE  FIRST  TAXABLE  YEAR IN WHICH THE CREDIT IS
CLAIMED WITH RESPECT TO SUCH ZONE OR AREA. WHERE THE  TAXPAYER  PROVIDED
FULL-TIME  EMPLOYMENT  WITHIN  (I)  THE  STATE OR (II) SUCH ZONE OR AREA
DURING ONLY A PORTION OF SUCH FOUR-YEAR PERIOD,  THEN  FOR  PURPOSES  OF
THIS PARAGRAPH THE TERM "FOUR YEARS" SHALL BE DEEMED TO REFER INSTEAD TO
SUCH PORTION, IF ANY.
  THE  CREDIT  SHALL  BE  ALLOWED ONLY WITH RESPECT TO THE FIRST TAXABLE
YEAR DURING WHICH PAYMENTS OF GREEN ECONOMIC DEVELOPMENT ZONE WAGES  ARE
MADE  AND  THE CONDITIONS SET FORTH IN THIS PARAGRAPH ARE SATISFIED, AND
WITH RESPECT TO EACH OF THE FOUR TAXABLE YEARS NEXT FOLLOWING (BUT ONLY,
WITH RESPECT TO EACH OF SUCH YEARS, IF SUCH CONDITIONS  ARE  SATISFIED),
IN ACCORDANCE WITH PARAGRAPH FOUR OF THIS SUBSECTION. SUBSEQUENT CERTIF-
ICATIONS  OF  THE TAXPAYER PURSUANT TO ARTICLE EIGHTEEN-D OF THE GENERAL
MUNICIPAL LAW, AT THE SAME OR A DIFFERENT LOCATION  IN  THE  SAME  GREEN
ECONOMIC  DEVELOPMENT ZONE OR ZONE EQUIVALENT AREA OR AT A LOCATION IN A
DIFFERENT GREEN ECONOMIC DEVELOPMENT ZONE OR ZONE EQUIVALENT AREA, SHALL
NOT EXTEND THE FIVE TAXABLE YEAR TIME LIMITATION ON THE ALLOWANCE OF THE
CREDIT SET FORTH IN THE PRECEDING SENTENCE.  PROVIDED, FURTHER, HOWEVER,
THAT NO CREDIT SHALL BE ALLOWED WITH RESPECT TO ANY TAXABLE YEAR  BEGIN-
NING  MORE  THAN  FOUR  YEARS FOLLOWING THE TAXABLE YEAR IN WHICH DESIG-
NATION AS A GREEN ECONOMIC DEVELOPMENT ZONE EXPIRED  OR  MORE  THAN  TEN
YEARS AFTER THE DESIGNATION AS A ZONE EQUIVALENT AREA.
  (4) THE AMOUNT OF THE CREDIT SHALL EQUAL THE SUM OF (A) THE PRODUCT OF
THREE  THOUSAND DOLLARS AND THE AVERAGE NUMBER OF INDIVIDUALS (EXCLUDING
GENERAL EXECUTIVE OFFICERS) EMPLOYED FULL-TIME BY THE TAXPAYER, COMPUTED
PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF PARAGRAPH TWO OF  THIS
SUBSECTION,  WHO  (I) RECEIVED GREEN ECONOMIC DEVELOPMENT ZONE WAGES FOR
MORE THAN HALF OF THE TAXABLE YEAR, (II) RECEIVED, WITH RESPECT TO  MORE
THAN HALF OF THE PERIOD OF EMPLOYMENT BY THE TAXPAYER DURING THE TAXABLE
YEAR,  AN HOURLY WAGE WHICH WAS AT LEAST ONE HUNDRED THIRTY-FIVE PERCENT
OF THE MINIMUM WAGE SPECIFIED IN SECTION SIX HUNDRED  FIFTY-TWO  OF  THE
LABOR LAW, AND (III) ARE TARGETED EMPLOYEES; AND
  (B)  THE  PRODUCT OF FIFTEEN HUNDRED DOLLARS AND THE AVERAGE NUMBER OF
INDIVIDUALS  (EXCLUDING  GENERAL  EXECUTIVE  OFFICERS  AND   INDIVIDUALS
DESCRIBED  IN  SUBPARAGRAPH (A) OF THIS PARAGRAPH) EMPLOYED FULL-TIME BY
THE TAXPAYER, COMPUTED PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF

A. 10662                           29

PARAGRAPH TWO OF THIS SUBSECTION, WHO RECEIVED GREEN  ECONOMIC  DEVELOP-
MENT ZONE WAGES FOR MORE THAN HALF OF THE TAXABLE YEAR.
  (C)  FOR PURPOSES OF CALCULATING THE AMOUNT OF THE CREDIT, INDIVIDUALS
EMPLOYED WITHIN A GREEN ECONOMIC DEVELOPMENT  ZONE  OR  ZONE  EQUIVALENT
AREA  WITHIN THE IMMEDIATELY PRECEDING SIXTY MONTHS BY A RELATED PERSON,
AS SUCH TERM IS DEFINED  IN  SUBPARAGRAPH  (C)  OF  PARAGRAPH  THREE  OF
SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVEN-
UE  CODE,  SHALL  NOT  BE  INCLUDED IN THE AVERAGE NUMBER OF INDIVIDUALS
DESCRIBED IN SUBPARAGRAPH (A) OR SUBPARAGRAPH  (B)  OF  THIS  PARAGRAPH,
UNLESS  SUCH  RELATED  PERSON  WAS  NEVER  ALLOWED  A  CREDIT UNDER THIS
SUBSECTION WITH RESPECT TO SUCH EMPLOYEES.  FOR  THE  PURPOSES  OF  THIS
SUBPARAGRAPH,  A  "RELATED  PERSON"  SHALL INCLUDE AN ENTITY WHICH WOULD
HAVE QUALIFIED AS A "RELATED PERSON" TO THE TAXPAYER IF IT HAD NOT  BEEN
DISSOLVED, LIQUIDATED, MERGED WITH ANOTHER ENTITY OR OTHERWISE CEASED TO
EXIST OR OPERATE.
  (D)  IF  A  TAXPAYER IS CERTIFIED IN A GREEN ECONOMIC DEVELOPMENT ZONE
DESIGNATED UNDER SECTION NINE  HUNDRED  SEVENTY-FOUR-C  OF  THE  GENERAL
MUNICIPAL  LAW,  THE  DOLLAR AMOUNTS SPECIFIED UNDER SUBPARAGRAPH (A) OR
(B) OF THIS PARAGRAPH SHALL BE INCREASED BY  FIVE  HUNDRED  DOLLARS  FOR
EACH QUALIFYING INDIVIDUAL UNDER SUCH SUBPARAGRAPHS WHO RECEIVED, DURING
THE TAXABLE YEAR, WAGES IN EXCESS OF FORTY THOUSAND DOLLARS.
  (E)  THE  REQUIREMENT  IN THIS PARAGRAPH THAT AN EMPLOYEE MUST RECEIVE
EMPIRE ZONE WAGES FOR MORE THAN HALF THE TAXABLE YEAR SHALL NOT APPLY IN
THE FIRST TAXABLE YEAR OF A TAXPAYER SATISFYING THE CRITERIA  SET  FORTH
IN  THIS  SUBPARAGRAPH.  IN  SUCH  A CASE, THE CREDIT ALLOWED UNDER THIS
SUBSECTION SHALL BE COMPUTED BY  UTILIZING  THE  NUMBER  OF  INDIVIDUALS
(EXCLUDING GENERAL EXECUTIVE OFFICERS) EMPLOYED FULL TIME BY THE TAXPAY-
ER  ON  THE LAST DAY OF ITS FIRST TAXABLE YEAR. A TAXPAYER SHALL SATISFY
THE FOLLOWING CRITERIA: (I) SUCH  TAXPAYER  ACQUIRED  REAL  OR  TANGIBLE
PERSONAL  PROPERTY DURING ITS FIRST TAXABLE YEAR FROM AN ENTITY WHICH IS
NOT A RELATED PERSON (AS SUCH TERM IS  DEFINED  IN  SUBDIVISION  (G)  OF
SECTION  FOURTEEN  OF THIS CHAPTER); (II) THE FIRST TAXABLE YEAR OF SUCH
TAXPAYER SHALL BE A SHORT TAXABLE YEAR OF NOT MORE THAN SEVEN MONTHS  IN
DURATION;  AND (III) THE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME ON THE
LAST DAY OF SUCH FIRST TAXABLE YEAR SHALL BE AT LEAST ONE HUNDRED NINETY
AND SUBSTANTIALLY ALL OF SUCH  INDIVIDUALS  MUST  HAVE  BEEN  PREVIOUSLY
EMPLOYED BY THE ENTITY FROM WHOM SUCH TAXPAYER PURCHASED ITS ASSETS.
  PROVIDED,  FURTHER,  HOWEVER, THAT THE CREDIT PROVIDED FOR HEREIN WITH
RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH CREDIT TO THE  TAXA-
BLE  YEAR,  DEDUCTED  FROM THE TAX OTHERWISE DUE, MAY NOT, IN THE AGGRE-
GATE, EXCEED FIFTY PERCENT OF THE TAX  IMPOSED  UNDER  SECTION  FOURTEEN
HUNDRED FIFTY-FIVE OF THIS ARTICLE COMPUTED WITHOUT REGARD TO ANY CREDIT
PROVIDED FOR UNDER THIS ARTICLE.
  (5)  THE  CREDIT  AND  CARRYOVERS  OF  SUCH  CREDIT ALLOWED UNDER THIS
SUBSECTION FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE  THE
TAX  DUE  FOR SUCH YEAR TO LESS THAN THE MINIMUM TAX FIXED BY SUBSECTION
(B) OF SECTION FOURTEEN HUNDRED FIFTY-FIVE OF THIS ARTICLE. HOWEVER,  IF
THE  AMOUNT  OF  CREDIT  OR  CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE  YEAR  REDUCES  THE  TAX  TO  SUCH
AMOUNT,  OR  IF  ANY PART OF THE CREDIT OR CARRYOVERS OF SUCH CREDIT MAY
NOT BE DEDUCTED FROM THE TAX  OTHERWISE  DUE  BY  REASON  OF  THE  FINAL
SENTENCE IN PARAGRAPH FOUR HEREOF, ANY AMOUNT OF CREDIT OR CARRYOVERS OF
SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
TO  THE  FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S
TAX FOR SUCH YEAR OR YEARS.

A. 10662                           30

  (5-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT  BE
ALLOWED  IF  A  GREEN ECONOMIC DEVELOPMENT ZONE RETENTION CERTIFICATE IS
NOT ISSUED PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE  COMMIS-
SIONER  OF  ECONOMIC  DEVELOPMENT TO THE GREEN ECONOMIC DEVELOPMENT ZONE
ENTERPRISE WHICH IS THE BASIS OF THE CREDIT.
  S  23. Section 1511 of the tax law is amended by adding a new subdivi-
sion (y) to read as follows:
  (Y) GREEN ECONOMIC DEVELOPMENT ZONE CAPITAL CREDIT.   (1)  A  TAXPAYER
SHALL  BE  ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE
AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE SUM OF
THE FOLLOWING INVESTMENTS AND CONTRIBUTIONS MADE DURING THE TAXABLE YEAR
AND CERTIFIED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT: (A) FOR TAXA-
BLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND ELEVEN, QUALIFIED
INVESTMENTS MADE IN, OR CONTRIBUTIONS IN THE FORM OF DONATIONS MADE  TO,
ONE  OR  MORE GREEN ECONOMIC DEVELOPMENT ZONE CAPITAL CORPORATIONS PRIOR
TO JANUARY FIRST, TWO THOUSAND  ELEVEN,  (B)  QUALIFIED  INVESTMENTS  IN
CERTIFIED  ZONE  BUSINESSES  WHICH  DURING THE TWELVE MONTH PERIOD IMME-
DIATELY PRECEDING THE MONTH IN WHICH SUCH INVESTMENT  IS  MADE  EMPLOYED
FULL-TIME  WITHIN  THE STATE AN AVERAGE NUMBER OF INDIVIDUALS, EXCLUDING
GENERAL EXECUTIVE OFFICERS, OF TWO  HUNDRED  FIFTY  OR  FEWER,  COMPUTED
PURSUANT  TO  THE  PROVISIONS  OF  SUBPARAGRAPH  (C) OF PARAGRAPH TWO OF
SUBDIVISION (G) OF THIS SECTION, EXCEPT FOR INVESTMENTS MADE  BY  OR  ON
BEHALF  OF  AN  OWNER  OF THE BUSINESS, INCLUDING, BUT NOT LIMITED TO, A
STOCKHOLDER, PARTNER OR SOLE  PROPRIETOR,  OR  ANY  RELATED  PERSON,  AS
DEFINED  IN  SUBPARAGRAPH  (C)  OF  PARAGRAPH THREE OF SUBSECTION (B) OF
SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVENUE  CODE,  AND  (C)
CONTRIBUTIONS  OF  MONEY TO COMMUNITY DEVELOPMENT PROJECTS AS DEFINED IN
REGULATIONS PROMULGATED BY THE  COMMISSIONER  OF  ECONOMIC  DEVELOPMENT.
"QUALIFIED  INVESTMENTS"  MEANS THE CONTRIBUTION OF PROPERTY TO A CORPO-
RATION IN EXCHANGE FOR ORIGINAL ISSUE CAPITAL STOCK OR  OTHER  OWNERSHIP
INTEREST,  THE CONTRIBUTION OF PROPERTY TO A PARTNERSHIP IN EXCHANGE FOR
AN INTEREST IN THE PARTNERSHIP, AND SIMILAR CONTRIBUTIONS IN THE CASE OF
A BUSINESS ENTITY NOT IN CORPORATE OR PARTNERSHIP FORM IN  EXCHANGE  FOR
AN  OWNERSHIP INTEREST IN SUCH ENTITY. THE TOTAL AMOUNT OF CREDIT ALLOW-
ABLE TO A TAXPAYER UNDER THIS PROVISION FOR  ALL  YEARS,  TAKEN  IN  THE
AGGREGATE,  SHALL  NOT  EXCEED THREE HUNDRED THOUSAND DOLLARS, AND SHALL
NOT EXCEED ONE HUNDRED THOUSAND DOLLARS WITH RESPECT TO THE  INVESTMENTS
AND CONTRIBUTIONS DESCRIBED IN EACH OF SUBPARAGRAPHS (A), (B) AND (C) OF
THIS PARAGRAPH.
  (2)  THE CREDIT AND CARRYOVER OF SUCH CREDIT ALLOWED UNDER THIS SUBDI-
VISION FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE  TAX
DUE  FOR  SUCH  YEAR TO LESS THAN THE MINIMUM FIXED BY PARAGRAPH FOUR OF
SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF  THIS  ARTICLE  OR  BY
SECTION  FIFTEEN HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE.
HOWEVER, IF THE AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT, OR  BOTH,
ALLOWED  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, OR IF ANY PART OF THE CREDIT OR CARRYOVERS OF  SUCH  CREDIT
MAY  NOT  BE  DEDUCTED FROM THE TAX OTHERWISE DUE BY REASON OF THE FINAL
SENTENCE OF THIS PARAGRAPH, ANY AMOUNT OF CREDIT OR CARRYOVERS  OF  SUCH
CREDIT  THUS  NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO
THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE  TAX  FOR  SUCH
YEAR OR YEARS. IN ADDITION, THE AMOUNT OF SUCH CREDIT, AND CARRYOVERS OF
SUCH CREDIT TO THE TAXABLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE MAY
NOT,  IN  THE  AGGREGATE,  EXCEED  FIFTY  PERCENT  OF (I) IN THE CASE OF
TAXPAYERS SUBJECT TO  TAX  UNDER  SUBDIVISION  (B)  OF  SECTION  FIFTEEN
HUNDRED  TEN  OF  THIS  ARTICLE, THE LESSER OF (I) THE LIMITATION ON TAX

A. 10662                           31

COMPUTED PURSUANT TO SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED FIVE, OR
(II) THE GREATER OF THE SUM OF THE TAXES IMPOSED UNDER SECTIONS  FIFTEEN
HUNDRED ONE AND FIFTEEN HUNDRED TEN OR THE AMOUNT OF TAX COMPUTED PURSU-
ANT  TO SUBDIVISION (B) OF SECTION FIFTEEN HUNDRED FIVE, OR (II) FOR ALL
OTHER INSURANCE CORPORATIONS, THE  TAX  IMPOSED  UNDER  SECTION  FIFTEEN
HUNDRED  TWO-A  OF  THIS  ARTICLE, COMPUTED WITHOUT REGARD TO ANY CREDIT
PROVIDED FOR UNDER THIS ARTICLE.
  (2-A) ANY CARRY OVER OF A CREDIT FROM PRIOR TAXABLE YEARS WILL NOT  BE
ALLOWED  TO  A  GREEN  ECONOMIC DEVELOPMENT ZONE ENTERPRISE WHICH IS THE
BASIS OF THE CREDIT, IF A  GREEN  ECONOMIC  DEVELOPMENT  ZONE  RETENTION
CERTIFICATE  IS  NOT  ISSUED  TO SUCH ENTITY PURSUANT TO RULES AND REGU-
LATIONS PROMULGATED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT.
  (3) WHERE THE STOCK, PARTNERSHIP INTEREST OR OTHER OWNERSHIP  INTEREST
ARISING  FROM  A  QUALIFIED INVESTMENT AS DESCRIBED IN SUBPARAGRAPHS (A)
AND (B) OF PARAGRAPH ONE OF THIS SUBDIVISION IS DISPOSED OF, THE TAXPAY-
ER'S ENTIRE NET  INCOME  SHALL  BE  COMPUTED,  PURSUANT  TO  REGULATIONS
PROMULGATED  BY  THE COMMISSIONER, SO AS TO PROPERLY REFLECT THE REDUCED
COST THEREOF ARISING FROM THE APPLICATION OF  THE  CREDIT  PROVIDED  FOR
HEREIN.
  (4)(A)  WHERE  A  TAXPAYER  SELLS,  TRANSFERS OR OTHERWISE DISPOSES OF
CORPORATE STOCK, A PARTNERSHIP  INTEREST  OR  OTHER  OWNERSHIP  INTEREST
ARISING  FROM  THE MAKING OF A QUALIFIED INVESTMENT WHICH WAS THE BASIS,
IN WHOLE OR IN PART, FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR  UNDER
THIS  SUBDIVISION,  OR  WHERE A CONTRIBUTION OR INVESTMENT WHICH WAS THE
BASIS FOR SUCH ALLOWANCE IS IN ANY MANNER, IN WHOLE OR IN  PART,  RECOV-
ERED  BY  SUCH  TAXPAYER, AND SUCH DISPOSITION OR RECOVERY OCCURS DURING
THE TAXABLE YEAR OR WITHIN THIRTY-SIX MONTHS FROM THE CLOSE OF THE TAXA-
BLE YEAR WITH RESPECT TO WHICH SUCH CREDIT IS ALLOWED, SUBPARAGRAPH  (B)
OF THIS PARAGRAPH SHALL APPLY.
  (B)  THE  TAXPAYER  SHALL ADD BACK WITH RESPECT TO THE TAXABLE YEAR IN
WHICH THE DISPOSITION OR RECOVERY DESCRIBED IN SUBPARAGRAPH (A) OF  THIS
PARAGRAPH  OCCURRED  THE  REQUIRED  PORTION  OF  THE  CREDIT  ORIGINALLY
ALLOWED.
  (C) THE REQUIRED PORTION OF THE CREDIT ORIGINALLY ALLOWED SHALL BE THE
PRODUCT OF (I) THE PORTION OF SUCH CREDIT ATTRIBUTABLE TO  THE  PROPERTY
DISPOSED OF OR THE PAYMENT OR CONTRIBUTION RECOVERED AND (II) THE APPLI-
CABLE PERCENTAGE.
  (D) THE APPLICABLE PERCENTAGE SHALL BE:
  (I)  ONE HUNDRED PERCENT, IF THE DISPOSITION OR RECOVERY OCCURS WITHIN
THE TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED  OR  WITHIN
TWELVE MONTHS OF THE END OF SUCH TAXABLE YEAR,
  (II)  SIXTY-SEVEN  PERCENT, IF THE DISPOSITION OR RECOVERY OCCURS MORE
THAN TWELVE BUT NOT MORE THAN TWENTY-FOUR MONTHS AFTER THE  END  OF  THE
TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED, OR
  (III) THIRTY-THREE PERCENT, IF THE DISPOSITION OR RECOVERY OCCURS MORE
THAN  TWENTY-FOUR  BUT  NOT MORE THAN THIRTY-SIX MONTHS AFTER THE END OF
THE TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED.
  S 24. Section 66 of the public service law is amended by adding a  new
subdivision 12-d to read as follows:
  12-D.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, UPON APPLICATION OF
A GAS OR ELECTRIC  CORPORATION,  THE  COMMISSION  SHALL  AUTHORIZE  SUCH
CORPORATION  TO  CHARGE  A  SPECIAL GREEN ECONOMIC DEVELOPMENT ZONE RATE
EQUAL TO THE INCREMENTAL COST OF PROVIDING SERVICE TO  CUSTOMERS  CERTI-
FIED  AS  ELIGIBLE  FOR  SUCH RATE PURSUANT TO ARTICLE EIGHTEEN-D OF THE
GENERAL MUNICIPAL LAW.
  S 25. This act shall take effect immediately.