senate Bill S7448

Enacts the "2012 New Jobs-NY job creation act"; repealer

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 18 / May / 2012
    • REFERRED TO RULES
  • 30 / May / 2012
    • ORDERED TO THIRD READING CAL.969
  • 30 / May / 2012
    • PASSED SENATE
  • 30 / May / 2012
    • DELIVERED TO ASSEMBLY
  • 31 / May / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Enacts the "2012 New Jobs-NY job creation act"; establishes a small business credit and a hire-now credit; relates to the franchise tax on business corporations; relates to a temporary annual assessment; establishes a beer production and beer label tax credits; relates to the allocation of credit for the empire state film production credit; establishes an angel tax credit for investments made in small businesses.

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Bill Details

Versions:
S7448
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd Tax L, generally; amd §18-a, Pub Serv L; amd Part NN §6, Chap 59 of 2009; rpld Part P §7, Chap 60 of 2004; add §959-c, Gen Muni L

Sponsor Memo

BILL NUMBER:S7448

TITLE OF BILL:

An act
to amend the tax law, in relation to establishing a small business tax
credit and a hire-now tax credit (Part A);
to amend the tax law, in relation to the franchise tax on business
corporations (Part B);
to amend the public service law, in relation to a temporary annual
assessment;
to amend part NN of chapter 59 of the laws of 2009
amending the public service law relating to financing operations of the
department of public service, in relation to the effectiveness
thereof; and
to amend the public service law, in relation to reducing the amount
a utility can be assessed
(Part C);
to amend the tax law, in relation to establishing the beer production
and beer label tax credits (Part D);
to amend the tax law, in relation to the allocation of credit for the
empire state film production credit; and to repeal section 7 of part P
of chapter 60 of the laws of 2004, amending the tax law relating to the
empire state film production credit, relating thereto (Part E); and
to amend the general municipal law and the tax law, in relation to
establishing an angel tax credit for investments made in small
businesses (Part F)

PURPOSE:

To create a major job creation package designed to create thousands
of new jobs for workers across the state.

SUMMARY OF PROVISIONS:

Part A: Cuts the corporate tax rate for small businesses by 20%.
Small Business Job Credit provides a 10% tax credit for hundreds of
thousands of small businesses that have at least one employee, have
business income of less than $250,000, and that file under personal
income tax.
Hire-Now-NY for each new job created, a business would get up to a
$5,000 tax credit. That credit would grow to $8,000 if the job goes
to someone who is currently on unemployment.
Hire-a-Vet to provide a tax incentive of up to $10,000 to any business
that provides a job opportunity to a returning veteran.

Part B: Eliminates taxes on New York manufacturers under the Corporate
Franchise Tax and Personal Income Tax Over a three-year period.

Part C: Accelerates the phase-out of 18A assessment tax hike by one
year, from 2014 to 2013 and restore the permanent base tax back to
one third of one percent.

Part D: Allows a credit for the first 200,000 barrels of beer brewed
in NY, and a $150 credit for each beer label registered with the NYS


Liquor authority, only for beer labels where less than 1,500 barrels
are produced annually.

Part E: Changes the applicable credit percentage from 10 percent to 30
percent for the film post production tax credit. Also moves
unconsolidated law into consolidated law.

Part F: Creates an "Angel Investor" program with a pool of $7 million
and also creates a 35 percent angel investor credit.

JUSTIFICATION:

This comprehensive bill will help create thousands of new private
sector jobs by delivering tax relief to small businesses and
manufacturers, reducing energy costs, and enacting major fiscal
reforms to make New York State more economically competitive.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

This bill will save New York businesses $394 million this year.

EFFECTIVE DATE:

Effective immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7448

                            I N  S E N A T E

                              May 18, 2012
                               ___________

Introduced  by  Sen.  SKELOS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law, in relation to establishing a  small  busi-
  ness  tax  credit and a hire-now tax credit (Part A); to amend the tax
  law, in relation to the franchise tax on business  corporations  (Part
  B); to amend the public service law, in relation to a temporary annual
  assessment;  to amend part NN of chapter 59 of the laws of 2009 amend-
  ing the public service law relating to  financing  operations  of  the
  department  of public service, in relation to the effectiveness there-
  of; and to amend the public service law, in relation to  reducing  the
  amount  a  utility  can be assessed (Part C); to amend the tax law, in
  relation to establishing the beer production and beer label tax  cred-
  its  (Part  D); to amend the tax law, in relation to the allocation of
  credit for the empire state film  production  credit;  and  to  repeal
  section  7  of  part P of chapter 60 of the laws of 2004, amending the
  tax law relating to the empire state film production credit,  relating
  thereto  (Part  E); and to amend the general municipal law and the tax
  law, in relation to establishing an angel tax credit  for  investments
  made in small businesses (Part F)

  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  "2012  New
Jobs-NY job creation act".
  S  2.  This  act enacts into law components of legislation relating to
enacting the "2012 New Jobs-NY job creation act".    Each  component  is
wholly  contained  within  a  Part  identified as Parts A through F. The
effective date for each particular provision contained within such  Part
is  set  forth  in  the  last section of such Part. Any provision in any
section contained within a Part, including the  effective  date  of  the
Part,  which  makes  reference  to a section "of this act", when used in
connection with that particular component, shall be deemed to  mean  and
refer  to  the  corresponding  section of the Part in which it is found.
Section four of this act sets forth the general effective date  of  this
act.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15938-03-2

S. 7448                             2

                                 PART A

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (uu) to read as follows:
  (UU) SMALL BUSINESS TAX CREDIT.  (1)  GENERAL.  A  QUALIFIED  TAXPAYER
SHALL  BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL
TO SIX AND SIXTY-FIVE HUNDREDTHS PERCENT OF QUALIFIED BUSINESS INCOME.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE TERM:
  (A) "QUALIFIED TAXPAYER" SHALL MEAN A SOLE PROPRIETOR WHO EMPLOYS  ONE
OR MORE PERSONS AND WHO HAS NET BUSINESS INCOME OF LESS THAN TWO HUNDRED
FIFTY THOUSAND DOLLARS.
  (B) "QUALIFIED BUSINESS INCOME" SHALL MEAN TEN PERCENT OF THE BUSINESS
INCOME OF THE TAXPAYER AS DEFINED IN THE LAWS OF THE UNITED STATES.
  (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON.
  S 2. Subparagraph (iv) of paragraph (a) of subdivision  1  of  section
210  of  the tax law, as amended by section 2 of part N of chapter 60 of
the laws of 2007, is amended to read as follows:
  (iv) for taxable years beginning on or after January first, two  thou-
sand  seven  AND  ENDING BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, if
the entire net income base is not more than two hundred ninety  thousand
dollars  the  amount shall be six and one-half percent of the entire net
income base; if the entire net income base  is  more  than  two  hundred
ninety  thousand  dollars  but  not  over  three hundred ninety thousand
dollars the amount shall be the  sum  of  (1)  eighteen  thousand  eight
hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
the entire net income base over two hundred ninety thousand dollars  but
not  over three hundred ninety thousand dollars and (3) four and thirty-
five hundredths percent of the excess of the entire net income base over
three hundred fifty thousand dollars but not over three  hundred  ninety
thousand dollars;
  S  3.  Paragraph (a) of subdivision 1 of section 210 of the tax law is
amended by adding a new subparagraph (vii) to read as follows:
  (VII) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND THIRTEEN, IF THE ENTIRE NET  INCOME  BASE  IS  NOT  MORE  THAN  TWO
HUNDRED  NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FIVE AND TWO-TENTHS
PERCENT OF THE ENTIRE NET INCOME BASE; IF THE ENTIRE NET INCOME BASE  IS
MORE THAN TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) FIFTEEN THOU-
SAND EIGHTY DOLLARS, (2) NINE AND SEVENTY-FIVE ONE-HUNDREDTHS PERCENT OF
THE  EXCESS  OF THE ENTIRE NET INCOME BASE OVER TWO HUNDRED NINETY THOU-
SAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND  (3)
SEVEN AND ONE-TENTHS PERCENT OF THE EXCESS OF THE ENTIRE NET INCOME BASE
OVER  THREE  HUNDRED  FIFTY  THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS;
  S 4. The opening paragraph of  subparagraph  4  of  paragraph  (d)  of
subdivision  1  of  section 210 of the tax law, as added by section 2 of
part AA-1 of chapter 57 of the laws of  2008,  is  amended  to  read  as
follows:
  Notwithstanding subparagraphs one and two of this paragraph, for taxa-
ble  years  beginning  on or after January first, two thousand eight AND
ENDING  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  THIRTEEN,   the   amount

S. 7448                             3

prescribed  by this paragraph for New York S corporations will be deter-
mined in accordance with the following table:
  S  5.  Subparagraph 5 of paragraph (d) of subdivision 1 of section 210
of the tax law is renumbered subparagraph 6.
  S 6. Paragraph (d) of subdivision 1 of section 210 of the tax  law  is
amended by adding a new subparagraph 5 to read as follows:
  (5)  NOTWITHSTANDING  SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH, FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  THIR-
TEEN,  THE  AMOUNT  PRESCRIBED  BY  THIS PARAGRAPH FOR NEW YORK S CORPO-
RATIONS WILL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE:               THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000                                      $1
MORE THAN $100,000 BUT NOT OVER $250,000                    $1
MORE THAN $250,000 BUT NOT OVER $500,000                    $1
MORE THAN $500,000 BUT NOT OVER $1,000,000                  $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000                $1,000
MORE THAN $5,000,000 BUT NOT OVER $25,000,000               $3,000
OVER $25,000,000                                            $4,500
OTHERWISE THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED  IN
ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE:               THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000                                      $1
MORE THAN $100,000 BUT NOT OVER $250,000                    $1
MORE THAN $250,000 BUT NOT OVER $500,000                    $1
MORE THAN $500,000 BUT NOT OVER $1,000,000                  $1
MORE THAN $1,000,000 BUT NOT OVER $5,000,000                $1,500
MORE THAN $5,000,000 BUT NOT OVER $25,000,000               $3,500
OVER $25,000,000                                            $5,000
FOR  PURPOSES  OF  THIS  PARAGRAPH,  NEW  YORK RECEIPTS ARE THE RECEIPTS
COMPUTED IN ACCORDANCE WITH SUBPARAGRAPH TWO OF PARAGRAPH (A) OF  SUBDI-
VISION THREE OF THIS SECTION FOR THE TAXABLE YEAR.
  S  7.  Subparagraph 6 of paragraph (d) of subdivision 1 of section 210
of the tax law, as added by section 3 of part C of  chapter  56  of  the
laws  of  2011 and as renumbered by section five of this act, is amended
to read as follows:
  (6) For taxable years beginning on or after January first,  two  thou-
sand  twelve and before January first, two thousand fifteen, the amounts
prescribed in subparagraphs one and [four] FIVE of this paragraph as the
fixed dollar minimum tax for an eligible qualified New York manufacturer
shall be one-half of the amounts  stated  in  those  subparagraphs.  For
purposes  of  this  subparagraph,  the term "eligible qualified New York
manufacturer" shall have the same meaning as  in  subparagraph  (vi)  of
paragraph (a) of this subdivision.
  S  8.  The  tax  law  is amended by adding a new section 37 to read as
follows:
  S 37. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER,  WHICH
IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
AMOUNT  OF  THE  CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE
PRODUCT OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW  EMPLOYEE.
THE  CREDIT  SHALL  NOT  BE  MORE THAN FIVE THOUSAND DOLLARS FOR ANY NEW
EMPLOYEE FOR ONE FULL YEAR OF EMPLOYMENT; IF A  NEW  EMPLOYEE  HAS  BEEN
HIRED  FOR  LESS  THAN A FULL TAX YEAR THIS AMOUNT SHALL BE PRORATED AND
APPORTIONED TO EACH TAX YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE
CONSECUTIVE YEARS OF CREDIT ELIGIBILITY. THE  TAXPAYER  MAY  CLAIM  THIS
CREDIT  FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS OF

S. 7448                             4

EMPLOYMENT.  THE TAXPAYER MAY OFFSET  QUARTERLY  ESTIMATED  TAX  RETURNS
WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
  (B)  UNEMPLOYMENT ENHANCEMENT.   IF A NEW EMPLOYEE WAS RECEIVING UNEM-
PLOYMENT INSURANCE BENEFITS AT THE TIME OF  HIRE,  AN  ADDITIONAL  THREE
THOUSAND  DOLLAR  CREDIT  WILL  BE  ALLOWED  FOR  THE FIRST FULL YEAR OF
EMPLOYMENT.
  (C) HIRE-A-VET ENHANCEMENT.  IF A NEW EMPLOYEE WAS RECEIVING UNEMPLOY-
MENT INSURANCE BENEFITS AT THE TIME OF HIRE AND IS ALSO  A  VETERAN,  AN
ADDITIONAL  FIVE  THOUSAND  DOLLAR  CREDIT WILL BE ALLOWED FOR THE FIRST
FULL YEAR OF EMPLOYMENT.
  (D) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED BY
THE TAXPAYER AFTER JULY FIRST, TWO  THOUSAND  TWELVE  AND  BEFORE  APRIL
FIRST,  TWO THOUSAND THIRTEEN, THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES
TO INCREASE ABOVE BASE EMPLOYMENT OR  CREDIT  EMPLOYMENT,  WHICHEVER  IS
HIGHER.
  (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND ELEVEN.
  (3)  "BASE  EMPLOYMENT"  SHALL  MEAN  THE  AVERAGE NUMBER OF FULL TIME
EMPLOYEES OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR  A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (4)  "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
  (5) "VETERAN" SHALL MEAN A RESIDENT OF THIS STATE, WHO HAS  SERVED  ON
ACTIVE  DUTY  IN THE UNTIED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST
GUARD, AND/OR RESERVES THEREOF, AND/OR  THE  ARMY  NATIONAL  GUARD,  AIR
NATIONAL  GUARD,  NEW  YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA, AND
WHO IS CURRENTLY IN SERVICE, OR HAS BEEN RELEASED FROM SUCH  SERVICE  BY
HONORABLE  DISCHARGE,  OR WHO HAS BEEN FURLOUGHED TO THE RESERVE AND WHO
SERVED IN A WAR, ARMED CONFLICT AND/OR OTHER HOSTILITIES.
  (E) REPLACEMENT EMPLOYEES. IF A NEW EMPLOYEE FOR WHICH  A  CREDIT  WAS
EARNED  LEAVES  THE  PAYROLL AND AN EMPLOYEE IS HIRED WHICH BRINGS TOTAL
EMPLOYMENT ABOVE BASE EMPLOYMENT  BUT  AT  OR  BELOW  CREDIT  EMPLOYMENT
LEVEL,  THE  CREDIT  ELIGIBILITY PERIOD FOR SUCH EMPLOYEE SHALL BE THREE
YEARS MINUS THE AMOUNT OF TIME (ROUNDED TO  THE  NEXT  FULL  MONTH)  THE
EMPLOYER RECEIVED THE CREDIT FOR THE DEPARTING EMPLOYEE.
  (F)  NO  DOUBLE  CREDIT.  A TAXPAYER MAY NOT BE ALLOWED A CREDIT UNDER
BOTH SUBDIVISION (B) AND SUBDIVISION (C) OF THIS SECTION  FOR  THE  SAME
EMPLOYEE.
  (G)  NO  CREDIT  SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS  ANY  OTHER  CREDIT  UNDER  THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASE IN EMPLOYMENT.
  S 9. Section 210 of the tax law is amended by adding a new subdivision
45 to read as follows:
  45.  HIRE-NOW  TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN  OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT 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
ALLOWED  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE  IN  SUCH  TAXABLE
YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
IN  ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF

S. 7448                             5

THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST WILL BE PAID THEREON.
  S 10. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV)  HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT, TO
THE EXTENT ALLOWED UNDER SECTION THIRTY-SEVEN OF THIS  CHAPTER,  AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
PAID THEREON.
  S 11. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xxxiv)  to  read  as
follows:
(XXXIV) HIRE-NOW TAX CREDIT             AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (VV)                   SUBDIVISION FORTY-FIVE OF SECTION
                                        TWO HUNDRED TEN
  S  12.  This  act shall take effect immediately; provided that section
one of this act shall apply to taxable years beginning on or after Janu-
ary 1, 2013.

                                 PART B

  Section 1. Subdivision 1 of section 209 of the tax law, as amended  by
chapter 817 of the laws of 1987, is amended to read as follows:
  1.  For  the  privilege  of  exercising its corporate franchise, or of
doing business, or of employing capital, or of owning or leasing proper-
ty in this state in a corporate or organized capacity, or of maintaining
an office in this state, for all or any part of each of  its  fiscal  or
calendar  years,  every  domestic  or foreign corporation, except corpo-
rations specified in subdivision four of this  section,  shall  annually
pay  a  franchise  tax, upon the basis of its entire net income base, or
upon such other basis as may be applicable as hereinafter provided,  for
such fiscal or calendar year or part thereof, on a report which shall be
filed, except as hereinafter provided, on or before the fifteenth day of
March  next succeeding the close of each such year, or, in the case of a
corporation which reports on the basis of a fiscal year, within two  and
one-half  months  after the close of such fiscal year, and shall be paid
as hereinafter provided.  PROVIDED HOWEVER, A MANUFACTURER AS DEFINED IN
SECTION TWO HUNDRED TEN OF THIS ARTICLE SHALL  NOT  BE  SUBJECT  TO  TAX
UNDER  THIS  ARTICLE  FOR  TAXABLE  YEARS  BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND FIFTEEN; IF THE  MANUFACTURER  HAS  ONE  HUNDRED  OR
FEWER  EMPLOYEES  AND LESS THAN ONE MILLION DOLLARS IN GROSS INCOME SUCH
MANUFACTURER SHALL NOT BE SUBJECT TO TAX UNDER THIS ARTICLE FOR  TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN; IF THE
MANUFACTURER  HAS  FIFTY  OR  FEWER EMPLOYEES AND LESS THAN FIVE HUNDRED
THOUSAND DOLLARS IN GROSS INCOME SUCH MANUFACTURER SHALL NOT BE  SUBJECT
TO  TAX UNDER THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
ARY FIRST, TWO THOUSAND THIRTEEN.
  S 2. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 39 to read as follows:
  (39) IN THE CASE OF A TAXPAYER WHO IS A PROPRIETOR OF, A  PARTNER  IN,
AN  S-CORPORATION  SHAREHOLDER OF, A LIMITED LIABILITY COMPANY MEMBER OF

S. 7448                             6

OR A LIMITED LIABILITY COMPANY MEMBER OF, A BUSINESS THAT IS A  MANUFAC-
TURER,  AS  THE TERM IS DEFINED IN SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED  TEN  OF  THIS  ARTICLE,  TO  THE
EXTENT  INCLUDED  IN FEDERAL GROSS INCOME FOR THE TAXABLE YEAR, BUSINESS
INCOME OR SHARE OF BUSINESS INCOME FROM SUCH MANUFACTURING BUSINESS  FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN,
PROVIDED HOWEVER IF SUCH BUSINESS THAT IS A MANUFACTURER HAS ONE HUNDRED
OR FEWER EMPLOYEES AND LESS THAN ONE MILLION DOLLARS IN BUSINESS INCOME,
THIS  PARAGRAPH  SHALL  BE  APPLICABLE FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, FURTHER PROVIDED HOWEVER  IF
SUCH  BUSINESS  THAT  IS A MANUFACTURER HAS FIFTY OR FEWER EMPLOYEES AND
LESS THAN FIVE HUNDRED THOUSAND DOLLARS IN BUSINESS  INCOME  THIS  PARA-
GRAPH  SHALL BE APPLICABLE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
ARY FIRST, TWO THOUSAND THIRTEEN.
  S 3.  This act shall take effect immediately.

                                 PART C

  Section 1. Paragraph (a) of subdivision  6  of  section  18-a  of  the
public  service  law,  as added by section 4 of part NN of chapter 59 of
the laws of 2009, is amended to read as follows:
  (a) Notwithstanding any provision of law to the contrary, and  subject
to the exceptions provided for in paragraph (b) of this subdivision, for
the  state  fiscal  year beginning on April first, two thousand nine and
[four] THREE state fiscal years thereafter, a temporary  annual  assess-
ment  (hereinafter "temporary state energy and utility service conserva-
tion assessment") is hereby imposed on public utility companies (includ-
ing for the purposes  of  this  subdivision  municipalities  other  than
municipalities  as  defined  in  section eighty-nine-l of this chapter),
corporations (including for purposes of this subdivision the Long Island
power authority), and persons subject  to  the  commission's  regulation
(hereinafter  such  public  utility companies, corporations, and persons
are referred to collectively as the "utility entities") to encourage the
conservation of energy and  other  resources  provided  through  utility
entities,  to  be  assessed  in the manner provided in this subdivision;
provided, however, that such assessment shall not be imposed upon  tele-
phone corporations as defined in subdivision seventeen of section two of
this article.
  S  2. Section 6 of part NN of chapter 59 of the laws of 2009, amending
the public service law relating to financing operations of  the  depart-
ment of public service is amended to read as follows:
  S  6.  This act shall take effect immediately; provided, however, that
subdivision 6 of section 18-a of the public service  law,  as  added  by
section  four  of  this  act  shall  take effect April 1, 2009 and shall
expire and be deemed repealed  March  31,  [2014]  2013;  and  provided,
further,  that  if section four of this act shall become law after April
1, 2009, it shall take effect immediately and shall be  deemed  to  have
been in full force and effect on and after April 1, 2009.
  S  3.  Paragraph  (g)  of  subdivision 2 of section 18-a of the public
service law, as amended by section 2 of part NN of  chapter  59  of  the
laws of 2009, is amended to read as follows:
  (g) The total amount which may be charged to any public utility compa-
ny  under  authority of this subdivision for any state fiscal year shall
not exceed ONE-THIRD OF one per centum of such public utility  company's
gross  operating  revenues derived from intrastate utility operations in
the last preceding calendar year, or other twelve month period as deter-

S. 7448                             7

mined by the chairman; provided, however, that no corporation or  person
that  is subject to the jurisdiction of the commission only with respect
to safety, or the power authority of the state of  New  York,  shall  be
subject to the general assessment provided for under this subdivision.
  S  4.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on the same  date  and  in  the  same
manner  as  part  NN  of  chapter  59  of  the laws of 2009 took effect;
provided that the amendment to paragraph (a) of subdivision 6 of section
18-a of the public service law made by section one of this act shall not
affect the expiration and repeal of such subdivision 6 and shall  expire
and  be  deemed  repealed  therewith;  and provided further that section
three of this act shall take effect April 1, 2013.

                                 PART D

  Section 1. The tax law is amended by adding two new sections 37 and 38
to read as follows:
  S 37. BEER PRODUCTION CREDIT. (A) GENERAL. A TAXPAYER SUBJECT  TO  TAX
UNDER  ARTICLE  NINE-A  OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A
CREDIT AGAINST SUCH TAX PURSUANT TO THE PROVISIONS REFERENCED IN  SUBDI-
VISION  (B)  OF  THIS  SECTION.  THE CREDIT (OR PRO RATA SHARE OF EARNED
CREDIT IN THE CASE OF A PARTNERSHIP) FOR EACH GALLON OF BEER PRODUCED IN
NEW YORK STATE BY A LICENSED BREWERY OR A LICENSED TENANT BREWER  ON  OR
AFTER  APRIL FIRST, TWO THOUSAND TWELVE SHALL BE EQUAL TO FOURTEEN CENTS
MULTIPLIED BY THE NUMBER OF GALLONS PRODUCED NOT TO EXCEED  SIX  MILLION
TWO HUNDRED THOUSAND GALLONS. IF THE TAXPAYER IS A PARTNER IN A PARTNER-
SHIP OR SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP IMPOSED BY
THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE  CREDIT  ALLOWED  TO  ALL THE PARTNERS OR SHAREHOLDERS OF EACH
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED SIX MILLION TWO  HUNDRED
THOUSAND GALLONS TIMES FOURTEEN CENTS.
  (B)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 45.
  (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (UU).
  S 38. BEER LABEL CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO TAX  UNDER
ARTICLE  NINE-A  OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED A CREDIT
AGAINST SUCH TAX PURSUANT TO THE PROVISIONS  REFERENCED  IN  SUBDIVISION
(B)  OF  THIS SECTION. THE CREDIT (OR PRO RATA SHARE OF EARNED CREDIT IN
THE CASE OF A PARTNERSHIP) SHALL EQUAL ONE  HUNDRED  FIFTY  DOLLARS  FOR
EACH BRAND OR TRADE NAME LABEL REGISTERED WITH THE STATE LIQUOR AUTHORI-
TY  FOR BEER THAT IS BREWED IN NEW YORK STATE BY THE TAXPAYER IN BATCHES
TOTALING FIFTEEN HUNDRED BARRELS OR LESS DURING THE TAXABLE YEAR.
  (B) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210, SUBDIVISION 46.
  (2) ARTICLE 22: SECTION 606, SUBSECTIONS (I) AND (VV).
  S  2. Section 210 of the tax law is amended by adding two new subdivi-
sions 45 and 46 to read as follows:
  45. BEER PRODUCTION CREDIT. A TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO
BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER, AGAINST
THE  TAX IMPOSED BY THIS ARTICLE. THE CREDIT ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR SHALL NOT 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
ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO

S. 7448                             8

SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR SHALL BE TREATED AS  AN  OVERPAYMENT  OF  TAX  TO  BE  CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  46.  BEER  LABEL CREDIT.   A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
COMPUTED AS PROVIDED IN SECTION THIRTY-EIGHT OF  THIS  CHAPTER,  AGAINST
THE  TAX IMPOSED BY THIS ARTICLE. THE CREDIT ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR SHALL NOT 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
ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO
SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR SHALL BE TREATED AS  AN  OVERPAYMENT  OF  TAX  TO  BE  CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax law is amended by adding two new clauses (xxxiv) and (xxxv)
to read as follows:

(XXXIV) BEER PRODUCTION TAX CREDIT   AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (UU)                SUBDIVISION FORTY-FIVE OF SECTION
                                     TWO HUNDRED TEN

(XXXV) BEER LABEL CREDIT UNDER       AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (VV)                SUBDIVISION FORTY-SIX OF
                                     SECTION TWO HUNDRED TEN
  S 4. Section 606  of  the  tax  law  is  amended  by  adding  two  new
subsections (uu) and (vv) to read as follows:
  (UU)  BEER  PRODUCTION CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO
BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER  AGAINST
THE  TAX  IMPOSED  BY  THIS ARTICLE. IF THE AMOUNT OF THE CREDIT ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED  THE  TAXPAYER'S
TAX  FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX
TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF  SECTION
SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER THAT NO INTER-
EST SHALL BE PAID THEREON.
  (VV)  BEER  LABEL  CREDIT.  A TAXPAYER SHALL BE ALLOWED A CREDIT TO BE
COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER AGAINST THE
TAX IMPOSED BY THIS ARTICLE. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
HUNDRED  EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER THAT NO INTEREST
SHALL BE PAID THEREON.
  S 5. This act shall take effect immediately.

                                 PART E

  Section 1. Section 7 of part P of chapter 60  of  the  laws  of  2004,
amending  the tax law relating to the empire state film production cred-
it, is REPEALED.

S. 7448                             9

  S 2. Section 24 of the tax law is amended by adding a new  subdivision
(e) to read as follows:
  (E)  ALLOCATION  OF  CREDIT.  (1)  THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER  THIS  SECTION,  SUBDIVISION  THIRTY-SIX  OF  SECTION  TWO
HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX HUNDRED SIX OF THIS CHAP-
TER  IN  ANY  CALENDAR  YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS IN TWO
THOUSAND FOUR AND TWO THOUSAND FIVE, SIXTY MILLION DOLLARS IN TWO  THOU-
SAND SIX AND TWO THOUSAND SEVEN, SIXTY-FIVE MILLION DOLLARS IN TWO THOU-
SAND   EIGHT,   SEVENTY-FIVE  MILLION  DOLLARS  IN  TWO  THOUSAND  NINE,
EIGHTY-FIVE MILLION DOLLARS IN TWO THOUSAND TEN, NINETY MILLION  DOLLARS
IN  TWO  THOUSAND  ELEVEN  AND  TWO THOUSAND TWELVE, AND ONE HUNDRED TEN
MILLION DOLLARS IN TWO THOUSAND THIRTEEN. SUCH AGGREGATE AMOUNT OF CRED-
ITS SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION  PICTURE  AND
TELEVISION  DEVELOPMENT  AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON
THE DATE OF FILING AN APPLICATION  FOR  ALLOCATION  OF  FILM  PRODUCTION
CREDIT  WITH  SUCH  OFFICE.  IF  THE  TOTAL  AMOUNT OF ALLOCATED CREDITS
APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT  OF  TAX
CREDITS  ALLOWED  FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE
TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY  OF  THE  SUBSEQUENT
YEAR.
  (2)  THE  AGGREGATE  AMOUNT  OF  TAX  CREDITS  ALLOWED PURSUANT TO THE
AUTHORITY OF SUBDIVISION (B) OF SECTION TWELVE  HUNDRED  ONE-A  OF  THIS
CHAPTER  IN ANY CALENDAR YEAR SHALL BE TWELVE MILLION FIVE HUNDRED THOU-
SAND DOLLARS IN TWO THOUSAND FOUR  AND  TWO  THOUSAND  FIVE  AND  THIRTY
MILLION  DOLLARS  IN  TWO THOUSAND SIX THROUGH TWO THOUSAND ELEVEN. SUCH
AGGREGATE AMOUNT OF CREDITS  SHALL BE ALLOCATED BY THE MAYOR'S OFFICE OF
FILM, THEATER AND BROADCASTING AMONG  TAXPAYERS  IN  ORDER  OF  PRIORITY
BASED  UPON  THE  DATE  OF  FILING AN APPLICATION FOR ALLOCATION OF FILM
PRODUCTION CREDIT WITH SUCH OFFICE. IF THE  TOTAL  AMOUNT  OF  ALLOCATED
CREDITS  APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT
OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER  THIS  SECTION,  SUCH  EXCESS
SHALL  BE  TREATED  AS  HAVING  BEEN APPLIED FOR ON THE FIRST DAY OF THE
SUBSEQUENT YEAR.
  (3) ADDITIONAL POOL 1 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL  BE  INCREASED  BY  AN  ADDITIONAL
THREE  HUNDRED  FIFTY  MILLION  DOLLARS IN TWO THOUSAND NINE. THIS ADDI-
TIONAL AMOUNT SHALL BE ALLOCATED BY THE  GOVERNOR'S  OFFICE  FOR  MOTION
PICTURE  AND  TELEVISION  DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH
SUBDIVISION (A) OF THIS SECTION.
  (4) ADDITIONAL POOL 2 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN
SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN  ADDITION  FOUR
HUNDRED  TWENTY MILLION DOLLARS IN TWO THOUSAND TEN, FOUR HUNDRED TWENTY
MILLION DOLLARS IN TWO THOUSAND  ELEVEN,  FOUR  HUNDRED  TWENTY  MILLION
DOLLARS  IN  TWO THOUSAND TWELVE, FOUR HUNDRED TWENTY MILLION DOLLARS IN
TWO THOUSAND THIRTEEN AND FOUR HUNDRED TWENTY  MILLION  DOLLARS  IN  TWO
THOUSAND  FOURTEEN PROVIDED HOWEVER, SEVEN MILLION DOLLARS OF THE ANNUAL
ALLOCATION SHALL BE AVAILABLE FOR THE EMPIRE STATE FILM POST  PRODUCTION
CREDIT  PURSUANT  TO  SECTION  THIRTY-ONE OF THIS CHAPTER.   THIS AMOUNT
SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELE-
VISION DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH SUBDIVISION (A) OF
THIS SECTION. IF THE  DIRECTOR  OF  THE  GOVERNOR'S  OFFICE  FOR  MOTION
PICTURE  AND TELEVISION DEVELOPMENT DETERMINES THAT THE AGGREGATE AMOUNT
OF TAX CREDITS AVAILABLE FROM ADDITIONAL POOL 2  FOR  THE  EMPIRE  STATE
FILM  PRODUCTION  TAX  CREDIT HAVE BEEN PREVIOUSLY ALLOCATED, AND DETER-
MINES THAT THE PENDING APPLICATIONS FROM  ELIGIBLE  APPLICANTS  FOR  THE
POST  PRODUCTION TAX CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS CHAP-

S. 7448                            10

TER  IS  INSUFFICIENT  TO  UTILIZE  THE  BALANCE  OF  UNALLOCATED   POST
PRODUCTION TAX CREDITS FROM SUCH POOL, THE REMAINDER, AFTER SUCH PENDING
APPLICATIONS  ARE  CONSIDERED, SHALL BE MADE AVAILABLE FOR ALLOCATION IN
THE  EMPIRE  STATE FILM TAX CREDIT PURSUANT TO THIS SECTION, SUBDIVISION
THIRTY-SIX OF SECTION TWO HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX
HUNDRED SIX OF THIS CHAPTER. THE GOVERNOR'S OFFICE  FOR  MOTION  PICTURE
AND  TELEVISION  DEVELOPMENT  MUST  NOTIFY TAXPAYERS OF THEIR ALLOCATION
YEAR AND INCLUDE THE ALLOCATION YEAR ON THE CERTIFICATE OF  TAX  CREDIT.
TAXPAYERS  ELIGIBLE  TO  CLAIM  A CREDIT MUST REPORT THE ALLOCATION YEAR
DIRECTLY ON THEIR EMPIRE STATE FILM PRODUCTION CREDIT TAX FORM FOR  EACH
YEAR  A  CREDIT  IS  CLAIMED  AND INCLUDE A COPY OF THE CERTIFICATE WITH
THEIR TAX RETURN. IN THE CASE OF A QUALIFIED FILM  THAT  RECEIVES  FUNDS
FROM  ADDITIONAL POOL 2, NO EMPIRE STATE FILM PRODUCTION CREDIT SHALL BE
CLAIMED BEFORE THE LATER OF THE TAXABLE YEAR THE PRODUCTION OF THE QUAL-
IFIED FILM IS COMPLETE, OR THE TAXABLE YEAR  IMMEDIATELY  FOLLOWING  THE
ALLOCATION  YEAR  FOR  WHICH  THE  FILM HAS BEEN ALLOCATED CREDIT BY THE
GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT.
  S 3. Paragraph 2 of subdivision (a) and subdivision (c) of section  31
of  the  tax  law, as added by section 12 of part Q of chapter 57 of the
laws of 2010, are amended to read as follows:
  (2) The amount of the credit shall be the product (or pro  rata  share
of the product, in the case of a member of a partnership) of [ten] THIR-
TY  percent  and  the  qualified  post  production  costs  paid  in  the
production of a qualified film at a qualified post production facility.
  (c) Notwithstanding any other provision of law to  the  contrary,  the
aggregate  amount  of tax credits available under this section shall not
exceed the amounts allowed pursuant to PARAGRAPH FOUR OF subdivision (e)
of section [seven of part P of chapter sixty of the laws of two thousand
four] TWENTY-FOUR OF THIS ARTICLE and shall be  allocated  in  the  same
manner  as  provided  for  in  PARAGRAPH ONE OF subdivision [(a)] (E) of
section [seven of part P of chapter sixty of the laws  of  two  thousand
four] TWENTY-FOUR OF THIS ARTICLE.
  S 4. This act shall take effect immediately.

                                 PART F

  Section  1.  The  general  municipal  law  is  amended by adding a new
section 959-c to read as follows:
  S 959-C. CERTIFIED STARTUP BUSINESS ENTERPRISE. (A) CERTIFICATION. (I)
THE COMMISSIONER SHALL APPROVE APPLICATIONS FOR QUALIFICATION OF A BUSI-
NESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE. AS A  CONDI-
TION FOR APPROVAL OF SUCH APPLICATION, THE COMMISSIONER IS AUTHORIZED TO
SPECIFY CERTAIN REQUIREMENTS TO BE SATISFIED AS A CONDITION FOR APPROVAL
OF  A  BUSINESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE AS
THE COMMISSIONER DEEMS NECESSARY TO ENSURE THE QUALIFYING ANGEL  INVEST-
MENT WILL MAKE A SUBSTANTIAL CONTRIBUTION TO THE ECONOMIC DEVELOPMENT OF
THIS  STATE,  INCLUDING  THE  USE  OF  A SYSTEM OF EVALUATION OF VARIOUS
APPLICANT BUSINESS ENTERPRISES IN A COMPETITIVE FASHION.
  (II) WITH RESPECT TO AN APPROVED APPLICATION FOR  QUALIFICATION  OF  A
BUSINESS  ENTERPRISE  AS  A  CERTIFIED  STARTUP BUSINESS ENTERPRISE, THE
COMMISSIONER SHALL ISSUE TO SUCH BUSINESS ENTERPRISE  A  CERTIFICATE  OF
QUALIFICATION  AS  A CERTIFIED STARTUP BUSINESS ENTERPRISE SETTING FORTH
THE EFFECTIVE DATE OF THE CERTIFICATION AND  THE  AMOUNT  OF  QUALIFYING
ANGEL INVESTMENT AWARDED TO SUCH BUSINESS ENTERPRISE, WHICH AMOUNT SHALL
BE  NO  LESS  THAN  ONE  HUNDRED  THOUSAND  DOLLARS AND NO MORE THAN ONE
MILLION DOLLARS.

S. 7448                            11

  (III) FOR THE PERIOD JULY FIRST,  TWO  THOUSAND  TWELVE  THROUGH  JUNE
THIRTIETH,  TWO  THOUSAND  THIRTEEN,  THE COMMISSIONER MAY CERTIFY UP TO
SEVEN MILLION DOLLARS IN QUALIFYING ANGEL  INVESTMENT.  FOR  THE  PERIOD
JULY  FIRST,  TWO THOUSAND THIRTEEN THROUGH JUNE THIRTIETH, TWO THOUSAND
FOURTEEN,  THE  COMMISSIONER  MAY CERTIFY UP TO SEVEN MILLION DOLLARS IN
QUALIFYING ANGEL INVESTMENT. FOR THE PERIOD  JULY  FIRST,  TWO  THOUSAND
FOURTEEN  THROUGH JUNE THIRTIETH, TWO THOUSAND FIFTEEN, THE COMMISSIONER
MAY CERTIFY UP TO SEVEN MILLION DOLLARS IN QUALIFYING ANGEL INVESTMENT.
  (B) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (I)  "CERTIFIED  STARTUP  BUSINESS  ENTERPRISE"  SHALL MEAN A BUSINESS
ENTERPRISE LOCATED IN NEW YORK STATE:
  (1) WITH LESS THAN FIVE MILLION DOLLARS IN ANNUAL REVENUES;
  (2) WHOSE PRIMARY ACTIVITY CONSISTS  OF  A  QUALIFYING  TECHNOLOGY  OR
INNOVATION ACTIVITY; AND
  (3) THAT HAS BEEN CERTIFIED AS A CERTIFIED STARTUP BUSINESS ENTERPRISE
BY THE COMMISSIONER.
  (II) "QUALIFYING TECHNOLOGY OR INNOVATION ACTIVITY" SHALL MEAN:
  (1)  BIOTECHNOLOGIES, WHICH SHALL BE DEFINED AS TECHNOLOGIES INVOLVING
THE SCIENTIFIC MANIPULATION  OF  LIVING  ORGANISMS,  ESPECIALLY  AT  THE
MOLECULAR  AND/OR  THE  SUB-MOLECULAR GENETIC LEVEL, TO PRODUCE PRODUCTS
CONDUCIVE TO IMPROVING THE LIVES AND  HEALTH  OF  PLANTS,  ANIMALS,  AND
HUMANS; AND THE ASSOCIATED SCIENTIFIC RESEARCH, PHARMACOLOGICAL, MECHAN-
ICAL,  AND  COMPUTATIONAL APPLICATIONS AND SERVICES CONNECTED WITH THESE
IMPROVEMENTS;
  (2) INFORMATION AND COMMUNICATION TECHNOLOGIES, EQUIPMENT AND  SYSTEMS
THAT  INVOLVE  ADVANCED  COMPUTER  SOFTWARE  AND HARDWARE, VISUALIZATION
TECHNOLOGIES, AND HUMAN INTERFACE TECHNOLOGIES;
  (3) ADVANCED MATERIALS AND PROCESSING TECHNOLOGIES  THAT  INVOLVE  THE
DEVELOPMENT,  MODIFICATION,  OR  IMPROVEMENT OF ONE OR MORE MATERIALS OR
METHODS TO PRODUCE DEVICES  AND  STRUCTURES  WITH  IMPROVED  PERFORMANCE
CHARACTERISTICS  OR SPECIAL FUNCTIONAL ATTRIBUTES, OR TO ACTIVATE, SPEED
UP, OR OTHERWISE ALTER CHEMICAL, BIOCHEMICAL, OR MEDICAL PROCESSES;
  (4) ELECTRONIC AND PHOTONIC DEVICES AND COMPONENTS FOR USE IN  PRODUC-
ING  ELECTRONIC,  OPTOELECTRONIC,  MECHANICAL  EQUIPMENT AND PRODUCTS OF
ELECTRONIC DISTRIBUTION WITH INTERACTIVE MEDIA CONTENT;
  (5) ENERGY EFFICIENCY, RENEWABLE ENERGY  AND  ENVIRONMENTAL  TECHNOLO-
GIES, PRODUCTS, DEVICES AND SERVICES; OR
  (6) SMALL SCALE SYSTEMS INTEGRATION AND PACKAGING.
  (III)  "QUALIFYING  ANGEL INVESTMENT" SHALL MEAN A CONTRIBUTION TO THE
CAPITAL OF A CERTIFIED STARTUP BUSINESS ENTERPRISE, PROVIDED  THAT  SUCH
CONTRIBUTION TO CAPITAL IS MADE WITHIN TWELVE MONTHS AFTER THE EFFECTIVE
DATE  OF THE CERTIFIED TECHNOLOGY VENTURE'S CERTIFICATE OF QUALIFICATION
AS A CERTIFIED TECHNOLOGY VENTURE AND SUCH CONTRIBUTION  IS  APPLIED  BY
THE  CERTIFIED  STARTUP  BUSINESS  ENTERPRISE  AGAINST ITS ALLOCATION OF
QUALIFYING ANGEL INVESTMENT. TOGETHER WITH ALL  OTHER  QUALIFYING  ANGEL
INVESTMENTS  MADE TO A SINGLE CERTIFIED STARTUP BUSINESS ENTERPRISE, THE
TOTAL QUALIFYING ANGEL INVESTMENT MAY NOT EXCEED  ONE  MILLION  DOLLARS.
NOTHING HEREIN SHALL PROHIBIT A PERSON MAKING A QUALIFYING ANGEL INVEST-
MENT  FROM  MAKING ADDITIONAL CONTRIBUTIONS TO THE CAPITAL OF THE CERTI-
FIED STARTUP BUSINESS ENTERPRISE OR MAKING LOANS TO OR OTHER INVESTMENTS
IN THE CERTIFIED STARTUP BUSINESS ENTERPRISE,  PROVIDED,  HOWEVER,  THAT
SUCH  OTHER CONTRIBUTIONS, LOANS AND INVESTMENTS SHALL NOT BE TREATED AS
QUALIFYING ANGEL INVESTMENTS.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
12-H to read as follows:

S. 7448                            12

  12-H. ANGEL TAX CREDIT.  (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT  HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III)  OF  SUBDIVISION  (B)  OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT  EQUAL  TO  THIRTY-FIVE
PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
  (B)  APPLICATION  OF CREDIT. 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 THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND  (D)  OF
SUBDIVISION  ONE  OF  THIS  SECTION.  HOWEVER,  IF  THE AMOUNT OF CREDIT
ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO
SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR SHALL BE TREATED AS  AN  OVERPAYMENT  OF  TAX  TO  BE  CREDITED  OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT-
Y-SIX  OF  THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION
(C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING,
NO INTEREST SHALL BE PAID THEREON.
  S 3. Section 606 of the tax law is amended by adding a new subdivision
(uu) to read as follows:
  (UU) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A  TAXPAYER  THAT  HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III)  OF  SUBDIVISION  (B)  OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
GENERAL MUNICIPAL LAW, OR THAT IS A MEMBER OF  A  PARTNERSHIP  THAT  HAS
MADE  A  QUALIFYING ANGEL INVESTMENT, SHALL BE ALLOWED A CREDIT EQUAL TO
THIRTY-FIVE PERCENT OF THE AMOUNT OF SUCH  QUALIFYING  ANGEL  INVESTMENT
OR,  IN THE CASE OF A TAXPAYER WHO IS A MEMBER OF A PARTNERSHIP THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, A PORTION OF SUCH  QUALIFYING  ANGEL
INVESTMENT  EQUAL  TO  THE  PORTION  OF  ITEMS OF INCOME, GAIN, LOSS AND
DEDUCTION ASSOCIATED WITH THE QUALIFYING ANGEL INVESTMENT PROPERLY ALLO-
CABLE TO SUCH TAXPAYER UNDER SECTION 704 OF THE  INTERNAL  REVENUE  CODE
FOR THE TAXABLE YEAR.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
SHALL BE PAID THEREON.
  S  4.  Section 1456 of the tax law is amended by adding a new subdivi-
sion (z) to read as follows:
  (Z) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT.  A  TAXPAYER  THAT  HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III)  OF  SUBDIVISION  (B)  OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
GENERAL MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT  EQUAL  TO  THIRTY-FIVE
PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
  (2)  APPLICATION  OF  CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR SHALL NOT 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 ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE  YEAR  REDUCES  THE  TAX  TO  SUCH
AMOUNT,  THEN  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR SHALL BE TREATED AS  AN  OVERPAYMENT  OF  TAX  TO  BE  CREDITED  OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION TEN HUNDRED EIGHT-
Y-SIX  OF  THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION
(C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING,
NO INTEREST SHALL BE PAID THEREON.
  S 5. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (cc) to read as follows:

S. 7448                            13

  (CC)  ANGEL  TAX  CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III) OF SUBDIVISION (B) OF SECTION NINE  HUNDRED  FIFTY-NINE-C  OF  THE
GENERAL  MUNICIPAL  LAW,  SHALL BE ALLOWED A CREDIT EQUAL TO THIRTY-FIVE
PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
  (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  MINIMUM  TAX  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 ALLOWED UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE  YEAR
REDUCES  THE  TAX  TO  SUCH  AMOUNT,  THEN ANY AMOUNT OF CREDIT THUS NOT
DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED 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,  THE
PROVISIONS OF SUBSECTION (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS
CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 6. This act shall take effect immediately.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 4. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through F of this act shall be
as specifically set forth in the last section of such Parts.

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