senate Bill S5797

Amends various provisions of law relating to Lower Manhattan

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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

  • 14 / Jun / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 21 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1659
  • 21 / Jun / 2013
    • SUBSTITUTED BY A7806A

Summary

Amends various provisions of law relating to Lower Manhattan; relates to real property tax abatements; relates to applications for tax abatements for industrial and commercial construction work on properties in a city of one million or more; relates to extending the relocation and employment assistance program and the Lower Manhattan relocation and employment assistance program; relates to extending the special rebates and discounts provided pursuant to the energy cost savings program and the lower Manhattan energy program; relates to the amount of special reduction allowed; exempts certain personal property from sales and compensating use taxes; extends real estate tax abatement programs in New York city.

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Bill Details

See other versions of this Bill:
A7806A
, A8173
Versions:
S5797
Legislative Cycle:
2013-2014
Law Section:
Tax Law
Laws Affected:
Amd §1115, Tax L; amd Part C §2, Chap 2 of 2005; amd §§499-a, 499-c, 499-d, 489-dddddd, 499-aa & 499-cc, RPT L; amd §§11-704, 11-271, 22-622, 22-624, 22-601, 22-602, NYC Ad Cd; amd §§25-z, 25-ee, 25-s, 25-t, 25-aa & 25-bb, Gen City L

Sponsor Memo

BILL NUMBER:S5797

TITLE OF BILL:
An act
to amend the tax law, in relation to exempting tangible personal
property purchased by a tenant for use directly and exclusively to
furnish and equip the tenant's leased premises for use as a commercial
office space; and to amend part C of chapter 2 of the laws of 2005
amending the tax law relating to exemptions from sales and use taxes, in
relation to the effectiveness thereof (Part A);
to amend the real property tax law and the administrative code of the
city of New York, in relation to extending a real property tax abatement
program for certain commercial properties in cities having a population
of one million or more and in relation to extending a special reduction
under the commercial rent tax in the city of New York
(Part B);
to amend the real property tax law and the administrative code of the
city of New York, in relation to applications for tax abatements for
industrial and commercial construction work on properties in a city of
one million or more persons (Part C);
to amend the general city law and the administrative code of the city of
New York, in relation to extending the relocation and employment
assistance program and the Lower Manhattan relocation and employment
assistance program (Part D);
to amend the general city law and the administrative code of the city of
New York, in relation to extending the special rebates and discounts
provided pursuant to the energy cost savings program and the Lower
Manhattan energy program (Part E);
to amend the
administrative code of the city of New York, in relation to the amount
of special reduction allowed (Part F); and
to amend the real property tax law, in relation to a real estate tax
abatement program for certain commercial, industrial and manufacturing
properties in a city of one million or more persons (Part G)

PURPOSE:

This bill would amend provisions of the Tax Law, the Real Property Tax
Law, the Administrative Code of the City of New York, and the General
City Law to extend the sunset dales of the Lower Manhattan Slate and
Local Sales Tax Exemptions, the Lower Manhattan Commercial
Revitalization Program, the New York City Industrial and Commercial
Abatement Program, the New York City and Lower Manhattan Relocation
and Employment Assistance Programs, the New York City Energy Cost
Savings Program, the Lower Manhattan Energy Program, the Commercial Rent
Special Reduction, and the New York City Commercial Expansion Program
to two additional years.

SUMMARY OF SPECIFIC PROVISIONS:

Part A Lower Manhattan State and Local Sales Tax Exemptions This
program exempts goods purchased for the build-out of commercial
office space in Lower Manhattan from State and Local sales taxes.
Minimum lease terms must be five years. Leases must commence prior to
September 1, 2015 for tenants in Lower Manhattan and September 1,
2017 for tenants in the World Financial Center, World Trade Center or
Battery Park City. The program would be extended for two years.


Part B Lower Manhattan Commercial Revitalization Program The program
is intended to increase tenant occupancy in office and retail space.
The program eligibility period would be extended for two years.

Part C New York City Industrial and Commercial Abatement Program The
Program provides abatements for property taxes for up to 23 years. To
qualify, industrial and commercial buildings must be built,
modernized, expanded or otherwise physically improved. Those who
qualify must spend at least 30 percent of the property's taxable
assessed value within four years. The program application period
would be extended for two years.

Part D New York City and Lower Manhattan Relocation and Employment
Assistance Programs The program offers a credit for businesses that
relocate all or pan of their operations to eligible premises. An
employment assistance credit of 51,000 per eligible employee is
available for the first year of relocation and for a maximum of 11
succeeding tax years. The credit increases to 53,000 for businesses
that relocate to designated revitalization areas. The basic program
would be extended to June 30, 2015.

Part E New York City Energy Cost Savings Program and Lower Manhattan
Energy Program The energy saving credit is available to industrial
and commercial companies that relocate to new or improved site.
Eligible businesses which purchase energy from a utility supervised
by the Public Service. Commission are entitled to receive a discount
off of the delivery portion of the electric and gas costs. The
program would be extended to June 30, 2015.

Part F Commercial Rent Tax Special Reduction The program provides an
exemption from commercial rent or occupancy tax for premises used for
leased space in certain NYC areas. The program extends the date upon
which a lease must be entered to June 30, 2015.

Part G New York City Commercial Expansion Program This program
provides a real property tax reduction for spaces that have been
leased for commercial office or industrial purposes. It provides
property tax benefits for qualified new, renewal and
expansion leases in commercial offices and manufacturing spaces built
before 1999 throughout the New York City. The program would be
extended for two years.

JUSTIFICATION:

The rebuilding of the New York City and the revitalization of Lower
Manhattan are critical to both New York City and New York State,
especially after the devastating damages by Hurricane Sandy.
This omnibus bill assures the continuation of necessary incentives,
through the form of tax exemptions, credits and rent subsidies to
reward businesses which locate operations or invest in the Lower
Manhattan and New York City areas, The bill would extend successful
programs that have helped revitalize the New York City and Lower
Manhattan by encouraging investments to be eligible for the program.

PRIOR LEGISLATIVE HISTORY:

New Bill


FISCAL IMPLICATIONS:

$10 million

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  5797

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 14, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to exempting tangible  personal
  property  purchased  by  a  tenant for use directly and exclusively to
  furnish and equip the tenant's leased premises for use as a commercial
  office space; and to amend part C of chapter 2 of  the  laws  of  2005
  amending  the tax law relating to exemptions from sales and use taxes,
  in relation to the effectiveness thereof (Part A); to amend  the  real
  property  tax law and the administrative code of the city of New York,
  in relation to extending a real property  tax  abatement  program  for
  certain  commercial  properties  in  cities having a population of one
  million or more and in relation to extending a special reduction under
  the commercial rent tax in the city of New York (Part B); to amend the
  real property tax law and the administrative code of the city  of  New
  York,  in  relation  to applications for tax abatements for industrial
  and commercial construction work  on  properties  in  a  city  of  one
  million  or  more  persons (Part C); to amend the general city law and
  the administrative code of the  city  of  New  York,  in  relation  to
  extending  the  relocation  and  employment assistance program and the
  Lower Manhattan relocation and employment assistance program (Part D);
  to amend the general city law and the administrative code of the  city
  of  New  York,  in  relation  to  extending  the  special  rebates and
  discounts provided pursuant to the energy cost savings program and the
  Lower Manhattan energy program (Part E); to amend  the  administrative
  code  of  the  city  of New York, in relation to the amount of special
  reduction allowed (Part F); and to amend the real   property tax  law,
  in relation to a real estate tax abatement program for certain commer-
  cial, industrial and manufacturing properties in a city of one million
  or more persons (Part G)

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11345-05-3

S. 5797                             2

  Section 1. This act enacts into law major  components  of  legislation
relating  to lower Manhattan.  Each component is wholly contained within
a Part identified as Parts A through G.  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 a  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 three of this act sets
forth the general effective date of this act.

                                 PART A

  Section 1. Subparagraph (A) of paragraph  7  of  subdivision  (ee)  of
section  1115  of  the tax law, as amended by chapter 203 of the laws of
2009 is amended to read as follows:
  (A) "Tenant" means a person who, as lessee, enters into a space  lease
with  a  landlord for a term of ten years or more commencing on or after
September first, two thousand five, but not later than, in the case of a
space lease with respect to leased premises located in eligible areas as
defined in clause (i) of subparagraph (D) of this  paragraph,  September
first,  two  thousand  thirteen  and,  in the case of a space lease with
respect to leased premises located  in  eligible  areas  as  defined  in
clause (ii) of subparagraph (D) of this paragraph not later than Septem-
ber  first,  two  thousand  fifteen,  of  premises for use as commercial
office space in buildings located or  to  be  located  in  the  eligible
areas.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, COMMENCING
AFTER SEPTEMBER FIRST, TWO THOUSAND THIRTEEN, "TENANT"  MEANS  A  PERSON
WHO,  AS LESSEE, ENTERS INTO A SPACE LEASE WITH A LANDLORD FOR A TERM OF
FIVE YEARS OR MORE, BUT NOT LATER THAN, IN THE CASE  OF  A  SPACE  LEASE
WITH  RESPECT TO LEASED PREMISES LOCATED IN ELIGIBLE AREAS AS DEFINED IN
CLAUSE (I) OF SUBPARAGRAPH (D) OF THIS PARAGRAPH, SEPTEMBER  FIRST,  TWO
THOUSAND  FIFTEEN  AND,  IN  THE  CASE  OF A SPACE LEASE WITH RESPECT TO
LEASED PREMISES LOCATED IN ELIGIBLE AREAS AS DEFINED IN CLAUSE  (II)  OF
SUBPARAGRAPH  (D)  OF THIS PARAGRAPH NOT LATER THAN SEPTEMBER FIRST, TWO
THOUSAND SEVENTEEN, OF PREMISES FOR USE AS COMMERCIAL  OFFICE  SPACE  IN
BUILDINGS LOCATED OR TO BE LOCATED IN THE ELIGIBLE AREAS.
  A  person who currently occupies premises for use as commercial office
space under an existing lease in a building in the eligible areas  shall
not  be eligible for exemption under this subdivision unless such exist-
ing lease, in the case of a space lease with respect to leased  premises
located  in  eligible areas as defined in clause (i) of subparagraph (D)
of this paragraph expires according to its terms before September first,
two thousand thirteen or such existing lease, in the  case  of  a  space
lease  with  respect  to  leased  premises  located in eligible areas as
defined in clause (ii) of subparagraph (D) of this  paragraph  and  such
person  enters  into  a  space  lease,  for  a term of ten years or more
commencing on or after September first, two thousand five,  of  premises
for  use  as  commercial  office  space  in  a building located or to be
located in the eligible areas,  provided  that  such  space  lease  with
respect  to  leased  premises  located  in  eligible areas as defined in
clause (i) of subparagraph (D) of this paragraph commences no later than
September first, two thousand thirteen, and  provided  that  such  space
lease  with  respect  to  leased  premises  located in eligible areas as
defined in clause (ii) of subparagraph (D) of this  paragraph  commences
no  later  than  September  first,  two  thousand  fifteen and provided,

S. 5797                             3

further, that such space lease shall expire no earlier  than  ten  years
after  the  expiration  of  the  original  lease.    NOTWITHSTANDING ANY
PROVISION OF LAW TO THE CONTRARY, AFTER SEPTEMBER  FIRST,  TWO  THOUSAND
THIRTEEN, A TENANT WHO CURRENTLY OCCUPIES PREMISES FOR USE AS COMMERCIAL
OFFICE SPACE UNDER AN EXISTING LEASE IN A BUILDING IN THE ELIGIBLE AREAS
SHALL  NOT  BE ELIGIBLE FOR EXEMPTION UNDER THIS SUBDIVISION UNLESS SUCH
EXISTING LEASE, IN THE CASE OF A SPACE  LEASE  WITH  RESPECT  TO  LEASED
PREMISES  LOCATED IN ELIGIBLE AREAS AS DEFINED IN CLAUSE (I) OF SUBPARA-
GRAPH (D) OF THIS  PARAGRAPH  EXPIRES  ACCORDING  TO  ITS  TERMS  BEFORE
SEPTEMBER  FIRST,  TWO  THOUSAND  FIFTEEN OR SUCH EXISTING LEASE, IN THE
CASE OF A SPACE LEASE WITH RESPECT TO LEASED PREMISES LOCATED IN  ELIGI-
BLE  AREAS  AS  DEFINED IN CLAUSE (II) OF SUBPARAGRAPH (D) OF THIS PARA-
GRAPH EXPIRES ACCORDING TO ITS TERMS BEFORE SEPTEMBER FIRST,  TWO  THOU-
SAND  SEVENTEEN,  PROVIDED  THAT SUCH SPACE LEASE WITH RESPECT TO LEASED
PREMISES LOCATED IN ELIGIBLE AREAS AS DEFINED IN CLAUSE (I) OF  SUBPARA-
GRAPH (D) OF THIS PARAGRAPH COMMENCES NO LATER THAN SEPTEMBER FIRST, TWO
THOUSAND  FIFTEEN,  AND  PROVIDED  THAT SUCH SPACE LEASE WITH RESPECT TO
LEASED PREMISES LOCATED IN ELIGIBLE AREAS AS DEFINED IN CLAUSE  (II)  OF
SUBPARAGRAPH  (D)  OF  THIS  PARAGRAPH COMMENCES NO LATER THAN SEPTEMBER
FIRST, TWO THOUSAND SEVENTEEN AND PROVIDED,  FURTHER,  THAT  SUCH  SPACE
LEASE  SHALL  EXPIRE  NO EARLIER THAN FIVE YEARS AFTER THE EXPIRATION ON
THE ORIGINAL LEASE.
  S 2. Section 2 of part C of chapter 2 of the laws of 2005 amending the
tax law relating to exemptions from sales and use taxes, as  amended  by
chapter 203 of the laws of 2009, is amended to read as follows:
  S 2. This act shall take effect September 1, 2005 and shall expire and
be  deemed repealed on December 1, [2016] 2018, and shall apply to sales
made, uses occurring and services rendered on or  after  such  effective
date,  in  accordance  with  the  applicable  transitional provisions of
sections 1106 and 1217 of the tax law; except that clause (i) of subpar-
agraph (D) of paragraph seven of subdivision (ee) of section 1115 of the
tax law, as added by section one of this act, shall expire and be deemed
repealed December 1, [2014] 2016.
  S 3. This act shall take effect immediately; provided,  however,  that
the amendments to subparagraph (A) of paragraph 7 of subdivision (ee) of
section  1115  of  the tax law made by section one of this act shall not
affect the repeal of such subdivision and shall be deemed repealed ther-
ewith.

                                 PART B

  Section 1. Subdivisions 5 and 9 of section 499-a of the real  property
tax  law,  as  amended by chapter 22 of the laws of 2010, are amended to
read as follows:
  5. "Benefit period." The period commencing with the first day  of  the
month  immediately  following the rent commencement date and terminating
no later than sixty months  thereafter,  provided,  however,  that  with
respect  to a lease commencing on or after April first, nineteen hundred
ninety-seven with an initial lease term of less than five years, but not
less than three years, the period commencing with the first day  of  the
month  immediately  following the rent commencement date and terminating
no later than thirty-six months thereafter. Notwithstanding the  forego-
ing  sentence, a benefit period shall expire no later than March thirty-
first, two thousand [twenty] TWENTY-TWO.

S. 5797                             4

  9. "Eligibility period." The period commencing April  first,  nineteen
hundred  ninety-five  and  terminating  March thirty-first, two thousand
[fourteen] SIXTEEN.
  S 2. Paragraph (a) of subdivision 3 of section 499-c of the real prop-
erty  tax  law, as amended by chapter 22 of the laws of 2010, is amended
to read as follows:
  (a) For purposes of determining whether  the  amount  of  expenditures
required by subdivision one of this section have been satisfied, expend-
itures on improvements to the common areas of an eligible building shall
be included only if work on such improvements commenced and the expendi-
tures are made on or after April first, nineteen hundred ninety-five and
on  or  before  September  thirtieth,  two  thousand [fourteen] SIXTEEN;
provided, however, that expenditures on improvements to the common areas
of an eligible building made prior  to  three  years  before  the  lease
commencement date shall not be included.
  S  3.  Subdivision 8 of section 499-d of the real property tax law, as
amended by chapter 22 of the  laws  of  2010,  is  amended  to  read  as
follows:
  8.  Leases  commencing on or after April first, nineteen hundred nine-
ty-seven shall be subject to the provisions of this title as amended  by
chapter  six hundred twenty-nine of the laws of nineteen hundred ninety-
seven, chapter one hundred eighteen of the laws  of  two  thousand  one,
chapter  four  hundred  forty of the laws of two thousand three, chapter
sixty of the laws of two thousand seven [and the], chapter TWENTY-TWO of
the laws of two thousand ten [that added this phrase] AND THE CHAPTER OF
THE LAWS OF TWO THOUSAND THIRTEEN THAT ADDED THIS PHRASE.  Notwithstand-
ing  any  other provision of law to the contrary, with respect to leases
commencing on or after April first, nineteen  hundred  ninety-seven,  an
application  for  a  certificate of abatement shall be considered timely
filed if filed within  one  hundred  eighty  days  following  the  lease
commencement  date  or  within sixty days following the date chapter six
hundred twenty-nine of the laws of nineteen hundred ninety-seven  became
a law, whichever is later.
  S  4.  Subparagraph  (a)  of  paragraph  2 of subdivision i of section
11-704 of the administrative code of the city of New York, as amended by
chapter 22 of the laws of 2010, is amended to read as follows:
  (a) An eligible tenant of eligible taxable premises shall be allowed a
special reduction in determining the taxable base rent for such eligible
taxable premises. Such special reduction shall be allowed  with  respect
to  the rent for such eligible taxable premises for a period not exceed-
ing sixty months or, with respect to a  lease  commencing  on  or  after
April first, nineteen hundred ninety-seven with an initial lease term of
less  than  five  years, but not less than three years, for a period not
exceeding thirty-six months, commencing on the  rent  commencement  date
applicable to such eligible taxable premises, provided, however, that in
no event shall any special reduction be allowed for any period beginning
after  March  thirty-first,  two  thousand  [twenty]  TWENTY-TWO.    For
purposes of applying such special reduction, the base rent for the  base
year  shall,  where  necessary  to  determine  the amount of the special
reduction allowable with respect to any number of months falling  within
a tax period, be prorated by dividing the base rent for the base year by
twelve and multiplying the result by such number of months.
  S 5. This act shall take effect immediately.

                                 PART C

S. 5797                             5

  Section 1. Paragraph (a) of subdivision 1 of section 489-dddddd of the
real  property tax law, as amended by chapter 28 of the laws of 2011, is
amended to read as follows:
  (a)  Application for benefits pursuant to this title may be made imme-
diately following the effective date of a local law enacted pursuant  to
this  title  and  continuing  until  March first, two thousand [fifteen]
SEVENTEEN.
  S 2.  Subdivision 3 of section 489-dddddd of  the  real  property  tax
law,  as  added by chapter 28 of the laws of 2011, is amended to read as
follows:
  3. (a) No benefits  pursuant  to  this  title  shall  be  granted  for
construction  work  performed pursuant to a building permit issued after
April first, two thousand [fifteen] SEVENTEEN.
  (b) If no building permit was required, then no benefits  pursuant  to
this  title  shall  be  granted  for construction work that is commenced
after April first, two thousand [fifteen] SEVENTEEN.
  S 3.  Paragraph 1 of subdivision a of section 11-271 of  the  adminis-
trative  code  of  the city of New York, as amended by chapter 28 of the
laws of 2011, is amended to read as follows:
  (1) Application for benefits pursuant to this part may be  made  imme-
diately  following  the  effective date of the local law that added this
section and continuing until March first, two thousand [fifteen]  SEVEN-
TEEN.
  S  4.    Subdivision c of section 11-271 of the administrative code of
the city of New York, as added by chapter 28 of the  laws  of  2011,  is
amended to read as follows:
  c.  (1)  No  benefits  pursuant  to  this  part  shall  be granted for
construction work performed pursuant to a building permit  issued  after
April first, two thousand [fifteen] SEVENTEEN.
  (2)  If  no building permit was required, then no benefits pursuant to
this part shall be granted for construction work that is commenced after
April first, two thousand [fifteen] SEVENTEEN.
  S 5.  This act shall take effect immediately.

                                 PART D

  Section 1. Subdivision (b) of section 25-z of the general city law, as
amended by chapter 131 of the laws  of  2008,  is  amended  to  read  as
follows:
  (b) No eligible business shall be authorized to receive a credit under
any  local  law enacted pursuant to this article until the premises with
respect to which it is claiming the credit meet the requirements in  the
definition  of  eligible  premises  and  until it has obtained a certif-
ication of eligibility from the mayor of such city or an  agency  desig-
nated  by  such mayor, and an annual certification from such mayor or an
agency designated by such mayor as to the number of  eligible  aggregate
employment  shares maintained by such eligible business that may qualify
for obtaining a tax credit for the eligible business' taxable year.  Any
written documentation submitted to such mayor or such agency or agencies
in  order  to  obtain  any  such certification shall be deemed a written
instrument for purposes of section 175.00 of the penal law.  Such  local
law  may  provide for application fees to be determined by such mayor or
such agency or agencies. No such certification of eligibility  shall  be
issued under any local law enacted pursuant to this article to an eligi-
ble  business  on  or  after July first, two thousand [thirteen] FIFTEEN
unless:

S. 5797                             6

  (1) prior to such date such business has purchased, leased or  entered
into  a contract to purchase or lease particular premises or a parcel on
which will be constructed such premises or already owned  such  premises
or parcel;
  (2)  prior to such date improvements have been commenced on such prem-
ises or parcel, which improvements will meet the requirements of  subdi-
vision (e) of section twenty-five-y of this article relating to expendi-
tures for improvements;
  (3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or agen-
cies  with respect to a proposed relocation to such particular premises;
and
  (4) such business relocates to such particular premises not later than
thirty-six months or, in a case in which the expenditures made  for  the
improvements  specified  in  paragraph  two  of  this subdivision are in
excess of fifty million dollars within seventy-two months from the  date
of submission of such preliminary application.
  S  2.  Subdivision  (b)  of  section 25-ee of the general city law, as
amended by chapter 131 of the laws  of  2008,  is  amended  to  read  as
follows:
  (b) No eligible business or special eligible business shall be author-
ized  to receive a credit against tax under any local law enacted pursu-
ant to this article until the premises  with  respect  to  which  it  is
claiming  the credit meet the requirements in the definition of eligible
premises and until it has obtained a certification of  eligibility  from
the  mayor  of  such city or any agency designated by such mayor, and an
annual certification from such mayor or an  agency  designated  by  such
mayor  as  to  the  number of eligible aggregate employment shares main-
tained by such eligible business or such special eligible business  that
may  qualify for obtaining a tax credit for the eligible business' taxa-
ble year. No special eligible business shall be authorized to receive  a
credit  against  tax  under  the  provisions  of this article unless the
number of relocated employee base shares calculated pursuant to subdivi-
sion (o) of section twenty-five-dd of this article is equal to or great-
er than the lesser of twenty-five percent of the number of New York city
base shares calculated pursuant to subdivision (p) of such  section  and
two hundred fifty employment shares. Any written documentation submitted
to  such  mayor  or  such agency or agencies in order to obtain any such
certification shall be deemed  a  written  instrument  for  purposes  of
section 175.00 of the penal law. Such local law may provide for applica-
tion  fees to be determined by such mayor or such agency or agencies. No
certification of eligibility shall be issued under any local law enacted
pursuant to this article to an eligible business on or after July first,
two thousand [thirteen] FIFTEEN unless:
  (1) prior to such date such business has purchased, leased or  entered
into  a  contract  to  purchase  or lease premises in the eligible Lower
Manhattan area or a parcel on which will be constructed such premises;
  (2) prior to such date improvements have been commenced on such  prem-
ises  or parcel, which improvements will meet the requirements of subdi-
vision (e) of section twenty-five-dd of this article relating to expend-
itures for improvements;
  (3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or agen-
cies with respect to a proposed relocation to such premises; and
  (4) such business relocates to such premises as provided  in  subdivi-
sion  (j) of section twenty-five-dd of this article not later than thir-

S. 5797                             7

ty-six months or, in a case in  which  the  expenditures  made  for  the
improvements  specified  in  paragraph  two  of  this subdivision are in
excess of fifty million dollars within seventy-two months from the  date
of submission of such preliminary application.
  S  3.  Subdivision (b) of section 22-622 of the administrative code of
the city of New York, as amended by chapter 131 of the laws of 2008,  is
amended to read as follows:
  (b)  No  eligible  business  shall  be  authorized to receive a credit
against tax or a reduction  in  base  rent  subject  to  tax  under  the
provisions of this chapter, and of title eleven of the code as described
in  subdivision  (a) of this section, until the premises with respect to
which it is claiming the credit meet the requirements in the  definition
of eligible premises and until it has obtained a certification of eligi-
bility from the mayor or an agency designated by the mayor, and an annu-
al  certification from the mayor or an agency designated by the mayor as
to the number of eligible aggregate employment shares maintained by such
eligible business that may qualify for obtaining a tax  credit  for  the
eligible  business' taxable year. Any written documentation submitted to
the mayor or such agency or agencies in order to obtain any such certif-
ication shall be deemed a written instrument  for  purposes  of  section
175.00  of the penal law. Application fees for such certifications shall
be determined by the mayor or such agency or agencies. No  certification
of  eligibility shall be issued to an eligible business on or after July
first, two thousand [thirteen] FIFTEEN unless:
  (1) prior to such date such business has purchased, leased or  entered
into  a contract to purchase or lease particular premises or a parcel on
which will be constructed such premises or already owned  such  premises
or parcel;
  (2)  prior to such date improvements have been commenced on such prem-
ises or parcel which improvements will meet the requirements of subdivi-
sion (e) of section 22-621 of this chapter relating to expenditures  for
improvements;
  (3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or agen-
cies  with respect to a proposed relocation to such particular premises;
and
  (4) such business relocates to such particular premises not later than
thirty-six months or, in a case  in  which  the  expenditures  made  for
improvements  specified  in  paragraph  two  of  this subdivision are in
excess of fifty million dollars within seventy-two months from the  date
of submission of such preliminary application.
  S  4.  Subdivision (b) of section 22-624 of the administrative code of
the city of New York, as amended by chapter 131 of the laws of 2008,  is
amended to read as follows:
  (b) No eligible business or special eligible business shall be author-
ized  to receive a credit against tax under the provisions of this chap-
ter, and of title eleven of the code as described in subdivision (a)  of
this  section,  until  the premises with respect to which it is claiming
the credit meet the requirements in the definition of eligible  premises
and  until it has obtained a certification of eligibility from the mayor
or an agency designated by the mayor, and an annual  certification  from
the  mayor  or  an  agency  designated  by the mayor as to the number of
eligible aggregate employment shares maintained by such  eligible  busi-
ness  or  special eligible business that may qualify for obtaining a tax
credit for the eligible business'  taxable  year.  No  special  eligible
business  shall  be authorized to receive a credit against tax under the

S. 5797                             8

provisions of this chapter and of title eleven of the  code  unless  the
number of relocated employee base shares calculated pursuant to subdivi-
sion  (o)  of section 22-623 of this chapter is equal to or greater than
the  lesser  of  twenty-five percent of the number of New York city base
shares calculated pursuant to subdivision (p) of  such  section  22-623,
and  two  hundred  fifty  employment  shares.  Any written documentation
submitted to the mayor or such agency or agencies in order to obtain any
such certification shall be deemed a written instrument for purposes  of
section  175.00  of  the  penal  law.  Application fees for such certif-
ications shall be determined by the mayor or such agency or agencies. No
certification of eligibility shall be issued to an eligible business  on
or after July first, two thousand [thirteen] FIFTEEN unless:
  (1)  prior to such date such business has purchased, leased or entered
into a contract to purchase or lease  premises  in  the  eligible  Lower
Manhattan area or a parcel on which will be constructed such premises;
  (2)  prior to such date improvements have been commenced on such prem-
ises or parcel, which improvements will meet the requirements of  subdi-
vision  (e)  of  section 22-623 of this chapter relating to expenditures
for improvements;
  (3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or agen-
cies with respect to a proposed relocation to such premises; and
  (4) such business relocates to such premises not later than thirty-six
months or, in a case in which the expenditures made for the improvements
specified in paragraph two of this subdivision are in  excess  of  fifty
million dollars within seventy-two months from the date of submission of
such preliminary application.
  S 5. This act shall take effect immediately.

                                 PART E

  Section  1.  Paragraph  1  of  subdivision  (b) of section 25-s of the
general city law, as amended by chapter 406 of  the  laws  of  2010,  is
amended to read as follows:
  (1)  non-residential  premises  that  are wholly contained in property
that is eligible to obtain benefits under title two-D or two-F of  arti-
cle  four  of the real property tax law, or would be eligible to receive
benefits under such article except that such  property  is  exempt  from
real property taxation and the requirements of paragraph (b) of subdivi-
sion seven of section four hundred eighty-nine-dddd of such title two-D,
or the requirements of subparagraph (ii) of paragraph (b) of subdivision
five  of  section  four  hundred eighty-nine-cccccc of such title two-F,
whichever is applicable, have not been satisfied, provided that applica-
tion for such benefits was made after May third, nineteen hundred eight-
y-five and prior to July first, two thousand  [thirteen]  FIFTEEN,  that
construction or renovation of such premises was described in such appli-
cation,  that  such  premises  have  been substantially improved by such
construction or renovation  so  described,  that  the  minimum  required
expenditure as defined in such title two-D or two-F, whichever is appli-
cable,  has  been  made,  and  that  such real property is located in an
eligible area; or
  S 2. Paragraph 3 of subdivision (b) of section  25-s  of  the  general
city  law,  as amended by chapter 406 of the laws of 2010, is amended to
read as follows:
  (3) non-residential premises that are wholly contained in real proper-
ty that has obtained approval after October thirty-first,  two  thousand

S. 5797                             9

and  prior  to July first, two thousand [thirteen] FIFTEEN for financing
by an industrial development  agency  established  pursuant  to  article
eighteen-A  of  the  general municipal law, provided that such financing
has been used in whole or in part to substantially improve such premises
(by  construction  or  renovation), and that expenditures have been made
for improvements to such real property in excess of ten  per  centum  of
the  value at which such real property was assessed for tax purposes for
the tax year in which such improvements commenced,  that  such  expendi-
tures  have  been made within thirty-six months after the earlier of (i)
the issuance by such agency of bonds for such  financing,  or  (ii)  the
conveyance  of title to such property to such agency, and that such real
property is located in an eligible area; or
  S 3. Paragraph 5 of subdivision (b) of section  25-s  of  the  general
city  law,  as amended by chapter 406 of the laws of 2010, is amended to
read as follows:
  (5) non-residential premises that are wholly contained in real proper-
ty owned by such city or the New York  state  urban  development  corpo-
ration,  or  a  subsidiary  thereof,  a  lease for which was approved in
accordance with the applicable provisions of the charter of such city or
by the board of directors of such corporation,  and  such  approval  was
obtained  after  October  thirty-first,  two  thousand and prior to July
first, two thousand [thirteen] FIFTEEN,  provided,  however,  that  such
premises were constructed or renovated subsequent to such approval, that
expenditures have been made subsequent to such approval for improvements
to  such  real property (by construction or renovation) in excess of ten
per centum of the value at which such real property was assessed for tax
purposes for the tax year in which  such  improvements  commenced,  that
such  expenditures  have  been  made  within thirty-six months after the
effective date of such lease, and that such real property is located  in
an eligible area; or
  S  4.  Paragraph  2  of subdivision (c) of section 25-t of the general
city law, as amended by chapter 406 of the laws of 2010, is  amended  to
read as follows:
  (2)  No  eligible energy user, qualified eligible energy user, on-site
cogenerator, or clean on-site cogenerator shall receive a rebate  pursu-
ant  to  this  article  until  it  has obtained a certification from the
appropriate city agency in accordance with a local law enacted  pursuant
to  this  section. No such certification for a qualified eligible energy
user shall be issued on or after November first, two thousand.  No  such
certification of any other eligible energy user, on-site cogenerator, or
clean  on-site  cogenerator  shall be issued on or after July first, two
thousand [thirteen] FIFTEEN.
  S 5. Paragraph 1 of subdivision (a) of section 25-aa  of  the  general
city  law,  as amended by chapter 406 of the laws of 2010, is amended to
read as follows:
  (1) is eligible to obtain benefits under title two-D or two-F of arti-
cle four of the real property tax law, or would be eligible  to  receive
benefits  under such title except that such property is exempt from real
property taxation and the requirements of paragraph (b)  of  subdivision
seven  of  section four hundred eighty-nine-dddd of such title two-D, or
the requirements of subparagraph (ii) of paragraph  (b)  of  subdivision
five  of  section  four  hundred eighty-nine-cccccc of such title two-F,
whichever is applicable, of the real property  tax  law  have  not  been
satisfied,  provided  that  application for such benefits was made after
the thirtieth day of June, nineteen hundred ninety-five and  before  the
first day of July, two thousand [thirteen] FIFTEEN, that construction or

S. 5797                            10

renovation  of such building or structure was described in such applica-
tion, that such building or structure has been substantially improved by
such construction or renovation,  and  (i)  that  the  minimum  required
expenditure  as defined in such title has been made, or (ii) where there
is  no  applicable  minimum  required  expenditure,  the  building   was
constructed  within  such period or periods of time established by title
two-D or two-F, whichever is applicable, of article  four  of  the  real
property tax law for construction of a new building or structure; or
  S  6.  Paragraphs  2  and 3 of subdivision (a) of section 25-aa of the
general city law, as amended by chapter 406 of the  laws  of  2010,  are
amended to read as follows:
  (2)  has  obtained  approval after the thirtieth day of June, nineteen
hundred ninety-five and before the  first  day  of  July,  two  thousand
[thirteen]  FIFTEEN,  for  financing by an industrial development agency
established pursuant to article eighteen-A of the general municipal law,
provided that such financing has been  used  in  whole  or  in  part  to
substantially  improve  such  building  or  structure by construction or
renovation, that expenditures have been made for  improvements  to  such
real  property in excess of twenty per centum of the value at which such
real property was assessed for tax purposes for the tax  year  in  which
such  improvements  commenced, and that such expenditures have been made
within thirty-six months after the earlier of (i) the issuance  by  such
agency  of  bonds for such financing, or (ii) the conveyance of title to
such building or structure to such agency; or
  (3) is owned by the city of New York  or  the  New  York  state  urban
development  corporation,  or  a subsidiary corporation thereof, a lease
for which was approved in accordance with the applicable  provisions  of
the  charter  of  such  city or by the board of directors of such corpo-
ration, as the case may be, and such approval  was  obtained  after  the
thirtieth day of June, nineteen hundred ninety-five and before the first
day of July, two thousand [thirteen] FIFTEEN, provided that expenditures
have been made for improvements to such real property in excess of twen-
ty  per centum of the value at which such real property was assessed for
tax purposes for the tax year in which such improvements commenced,  and
that such expenditures have been made within thirty-six months after the
effective date of such lease; or
  S  7.  Subdivision  (f)  of  section 25-bb of the general city law, as
amended by chapter 406 of the laws  of  2010,  is  amended  to  read  as
follows:
  (f) Application and certification. An owner or lessee of a building or
structure  located  in  an  eligible revitalization area, or an agent of
such owner or lessee, may apply to such  department  of  small  business
services  for certification that such building or structure is an eligi-
ble building or targeted  eligible  building  meeting  the  criteria  of
subdivision  (a)  or  (q)  of  section  twenty-five-aa  of this article.
Application for such certification must be filed after the thirtieth day
of June, nineteen hundred ninety-five and before a  building  permit  is
issued  for the construction or renovation required by such subdivisions
and before the first day  of  July,  two  thousand  [thirteen]  FIFTEEN,
provided that no certification for a targeted eligible building shall be
issued  after October thirty-first, two thousand. Such application shall
identify expenditures to be made that will affect eligibility under such
subdivision (a) or (q). Upon completion of such expenditures, an  appli-
cant shall supplement such application to provide information (i) estab-
lishing  that the criteria of such subdivision (a) or (q) have been met;
(ii) establishing a basis for determining the amount of special rebates,

S. 5797                            11

including a basis for an allocation of the special rebate among eligible
revitalization area energy users purchasing or otherwise receiving ener-
gy services from an eligible redistributor  of  energy  or  a  qualified
eligible  redistributor of energy; and (iii) supporting an allocation of
charges for energy services between eligible charges and other  charges.
Such  department  shall  certify  a building or structure as an eligible
building or targeted eligible building after receipt and review of  such
information  and  upon a determination that such information establishes
that the building or structure qualifies  as  an  eligible  building  or
targeted  eligible  building.  Such  department  shall mail such certif-
ication or notice thereof to the applicant upon issuance.  Such  certif-
ication  shall  remain  in effect provided the eligible redistributor of
energy or qualified eligible redistributor of energy reports any changes
that materially affect the amount of the special rebates to which it  is
entitled  or the amount of reduction required by subdivision (c) of this
section in an energy services bill of an  eligible  revitalization  area
energy  user  and otherwise complies with the requirements of this arti-
cle. Such department shall notify the private utility or public  utility
service  required  to make a special rebate to such redistributor of the
amount of such special rebate established at the time  of  certification
and any changes in such amount and any suspension or termination by such
department  of certification under this subdivision. Such department may
require some or all of the information required as part of  an  applica-
tion or other report be provided by a licensed engineer.
  S  8. Paragraph 1 of subdivision (i) of section 22-601 of the adminis-
trative code of the city of New York, as amended by chapter 406  of  the
laws of 2010, is amended to read as follows:
  (1)  Non-residential  premises  that  are wholly contained in property
that is eligible to obtain benefits under part  four  or  part  five  of
subchapter  two of chapter two of title eleven of this code, or would be
eligible to receive benefits under such chapter except that such proper-
ty is exempt from real property taxation and the requirements  of  para-
graph  two  of  subdivision  g  of  section  11-259 of this code, or the
requirements of subparagraph (b) of paragraph two of  subdivision  e  of
section  11-270  of  this  code,  whichever is applicable, have not been
satisfied, provided that application for such benefits  was  made  after
May  third,  nineteen  hundred  eighty-five and prior to July first, two
thousand [thirteen] FIFTEEN, that construction  or  renovation  of  such
premises was described in such application, that such premises have been
substantially  improved by such construction or renovation so described,
that the minimum required expenditure as defined in such  part  four  or
part  five,  whichever  is applicable, has been made, and that such real
property is located in an eligible area; or
  S 9. Paragraph 3 of subdivision (i) of section 22-601 of the  adminis-
trative  code  of the city of New York, as amended by chapter 406 of the
laws of 2010, is amended to read as follows:
  (3) non-residential premises that are wholly contained in real proper-
ty that has obtained approval after October thirty-first,  two  thousand
and  prior  to July first, two thousand [thirteen] FIFTEEN for financing
by an industrial development  agency  established  pursuant  to  article
eighteen-A  of  the  general municipal law, provided that such financing
has been used in whole or in part to substantially improve such premises
(by construction or renovation), and that expenditures  have  been  made
for  improvements  to  such real property in excess of ten per centum of
the value at which such real property was assessed for tax purposes  for
the  tax  year  in which such improvements commenced, that such expendi-

S. 5797                            12

tures have been made within thirty-six months after the earlier  of  (i)
the  issuance  by  such  agency of bonds for such financing, or (ii) the
conveyance of title to such property to such agency, and that such  real
property is located in an eligible area; or
  S 10. Paragraph 5 of subdivision (i) of section 22-601 of the adminis-
trative  code  of the city of New York, as amended by chapter 406 of the
laws of 2010, is amended to read as follows:
  (5) non-residential premises that are wholly contained in real proper-
ty owned by such city or the New York  state  urban  development  corpo-
ration,  or  a  subsidiary  thereof,  a  lease for which was approved in
accordance with the applicable provisions of the charter of such city or
by the board of directors of such corporation,  and  such  approval  was
obtained  after  October  thirty-first,  two  thousand and prior to July
first, two thousand [thirteen] FIFTEEN,  provided,  however,  that  such
premises were constructed or renovated subsequent to such approval, that
expenditures have been made subsequent to such approval for improvements
to  such  real property (by construction or renovation) in excess of ten
per centum of the value at which such real property was assessed for tax
purposes for the tax year in which  such  improvements  commenced,  that
such  expenditures  have  been  made  within thirty-six months after the
effective date of such lease, and that such real property is located  in
an eligible area; or
  S 11. Paragraph 1 of subdivision (c) of section 22-602 of the adminis-
trative  code  of the city of New York, as amended by chapter 406 of the
laws of 2010, is amended to read as follows:
  (1) No eligible energy user, qualified eligible energy  user,  on-site
cogenerator,  clean  on-site cogenerator or special eligible energy user
shall receive a rebate pursuant to this chapter until it has obtained  a
certification  as  an  eligible  energy  user, qualified eligible energy
user, on-site cogenerator, clean on-site cogenerator or special eligible
energy user, respectively,  from  the  commissioner  of  small  business
services.  No  such  certification  for a qualified eligible energy user
shall be issued on or after July first,  two  thousand  three.  No  such
certification  of any other eligible energy user, on-site cogenerator or
clean on-site cogenerator shall be issued on or after  July  first,  two
thousand   [thirteen]   FIFTEEN.  The  commissioner  of  small  business
services, after notice and hearing, may revoke  a  certification  issued
pursuant to this subdivision where it is found that eligibility criteria
have  not  been  met  or  that  compliance with conditions for continued
eligibility has not been maintained. The corporation counsel  may  main-
tain a civil action to recover an amount equal to any benefits improper-
ly obtained.
  S 12. This act shall take effect immediately.

                                 PART F

  Section  1.  Subparagraph  (b-2)  of  paragraph  2 of subdivision i of
section 11-704 of the administrative code of the city of  New  York,  as
amended  by  chapter  203  of  the  laws  of 2009, is amended to read as
follows:
  (b-2) The amount of the special reduction allowed by this  subdivision
with  respect  to  a lease other than a sublease commencing between July
first, two thousand five and June  thirtieth,  two  thousand  [thirteen]
FIFTEEN  with  an  initial  or renewal lease term of at least five years
shall be determined as follows:

S. 5797                            13

  (i) For the base year the amount of such special  reduction  shall  be
equal to the base rent for the base year.
  (ii)  For  the  first,  second,  third and fourth twelve-month periods
following the base year the amount of such special  reduction  shall  be
equal  to  the  lesser  of  (A) the base rent for each such twelve-month
period or (B) the base rent for the base year.
  S 2. This act shall take effect immediately.

                                 PART G

  Section 1. Subdivision 9 of section 499-aa of the   real property  tax
law,  as  amended by chapter 306 of the laws of 2010, is amended to read
as follows:
  9. "Eligibility period." The period commencing April  first,  nineteen
hundred  ninety-five  and  terminating  March thirty-first, two thousand
one, provided, however, that with respect to eligible  premises  defined
in subparagraph (i) of paragraph (b) of subdivision ten of this section,
the  period  commencing  July  first,  two thousand and terminating June
thirtieth, two  thousand  [fourteen]  SIXTEEN,  and  provided,  further,
however,  that with respect to eligible premises defined in subparagraph
(ii) of paragraph (b) or  paragraph  (c)  of  subdivision  ten  of  this
section,  the period commencing July first, two thousand five and termi-
nating June thirtieth, two thousand [fourteen] SIXTEEN.
  S 2.  Subparagraph (iii) of paragraph (a) of subdivision 3 of  section
499-cc  of  the  real property tax law, as amended by chapter 306 of the
laws of 2010, is amended to read as follows:
  (iii) With respect to the eligible premises  defined  in  subparagraph
(ii)  of  paragraph  (b)  or paragraph (c) of subdivision ten of section
four hundred ninety-nine-aa of this title and for purposes of  determin-
ing  whether  the  amount of expenditures required by subdivision one of
this section have been satisfied, expenditures on  improvements  to  the
common  areas  of an eligible building shall be included only if work on
such improvements commenced and the expenditures are made  on  or  after
July  first,  two  thousand five and on or before December thirty-first,
two thousand [fourteen] SIXTEEN; provided, however, that expenditures on
improvements to the common areas of an eligible building made  prior  to
three years before the lease commencement date shall not be included.
  S 3. This act shall take effect immediately.
  S 2. 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 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through G of this act shall be
as specifically set forth in the last section of such Parts.

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