senate Bill S822

Establishes the capital investment jobs retention program

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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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  • 09 / Jan / 2013
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 08 / Jan / 2014
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Summary

Establishes the capital investment jobs retention program offering a tax credit program for businesses within New York state that opt to make large capital investments and maintain certain job levels.

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Bill Details

Versions:
S822
Legislative Cycle:
2013-2014
Current Committee:
Senate Commerce, Economic Development And Small Business
Law Section:
Economic Development Law
Laws Affected:
Add Art 21 §§440 - 449, Ec Dev L; add §38, amd §§210, 606, 1456 & 1511, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S7653

Sponsor Memo

BILL NUMBER:S822

TITLE OF BILL:
An act
to amend the economic development law and the tax law, in
relation to
establishing the capital investment jobs retention program

PURPOSE OR GENERAL IDEA OF BILL:
This bill establishes the capital Investment Jobs Retention Program,
authorizing a refundable tax credit to be claimed by eligible,
participating businesses in the event of significant capital
investments and job retention.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends the economic development law by adding a new article
21, titled the Capital Investment Jobs Retention Program, sections
440-449.

Section 440 cites the short titled of this article.

Section 441 defines the terms used in this article.

Section 442 outlines the eligibility criteria for this program,
stating that an investment of at least fifty million dollars in
fixed-assets for a manufacturing firm or twenty million in
fixed-assets for a significant corporate administrative function must
be completed within three consecutive calendar years preceding the
taxable year in which such participant first claims the credit.

Section 442 additionally explains the job retention requirements of
this tax credit, so that in order to participate, a business entity
operating in one of the strategic industries listed must employ at
least two hundred full-time equivalent jobs at the project site
during the time for which the tax credit is granted and shall
continue to employ this number for the duration of the agreement
outlined with the Empire State Development Corporation.

Section 443 outlines the application and approval process for this
program.

Section 444 outlines the credit: a participant in this program shall
be eligible to claim a refundable credit for the impacted jobs, the
amount of such credit shall be equal to seventy-five percent of the
NY state income taxes withheld from eligible full-time employees.

Section 445 outlines the powers and duties of the Commissioner of the
Department of Economic Development in administering this program.

Section 446 details the maintenance of records on this program.

Section 447 outlines the reporting requirements for businesses to
receive this tax credit.

Section 448 outlines the cap on the tax credit for the years 2013-2017.


Section 449 details the penalties involved with failure to comply with
the terms of this program.

JUSTIFICATION:
While a focus on job creation is key to New York state's economic
future, so too is the retention of existing jobs that fuel our
present economy. The Capital Investment Job Retention program is
designed to attract large-scale capital investment projects at
existing facilities, while maintaining a significant job retention
level.

PRIOR LEGISLATIVE HISTORY:
2012: S.7653 Referred to Rules

FISCAL IMPLICATIONS:
Up to $33 million over a 5 year period could possibly be allocated to
this program through the Empire State Development Corporation.

EFFECTIVE DATE:
This act shall take effect immediately; provided however that sections
two, three, four, five, six and seven of this act shall apply to
taxable years beginning on and after January 1, 2014.

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

                                   822

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Commerce, Economic  Devel-
  opment and Small Business

AN  ACT  to  amend  the  economic  development  law  and the tax law, in
  relation to establishing the capital investment jobs retention program

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

  Section  1.  The  economic  development law is amended by adding a new
article 21 to read as follows:
                               ARTICLE 21
                CAPITAL INVESTMENT JOBS RETENTION PROGRAM
SECTION 440. SHORT TITLE.
        441. DEFINITIONS.
        442. ELIGIBILITY CRITERIA.
        443. APPLICATION AND APPROVAL PROCESS.
        444. CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT.
        445. POWERS AND DUTIES OF THE COMMISSIONER.
        446. MAINTENANCE OF RECORDS.
        447. REPORTING.
        448. CAP ON TAX CREDIT.
        449. PENALTIES.
  S 440. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
THE "CAPITAL INVESTMENT JOBS RETENTION PROGRAM".
  S 441. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  1.  "AGRICULTURE"  MEANS  BOTH AGRICULTURAL PRODUCTION (ESTABLISHMENTS
PERFORMING THE COMPLETE FARM OR RANCH OPERATION, SUCH AS FARM  OWNER-OP-
ERATORS,  TENANT  FARM  OPERATORS,  AND  SHARECROPPERS) AND AGRICULTURAL
SUPPORT (ESTABLISHMENTS THAT PERFORM ONE OR MORE  ACTIVITIES  ASSOCIATED
WITH FARM OPERATION, SUCH AS SOIL PREPARATION, PLANTING, HARVESTING, AND
MANAGEMENT, ON A CONTRACT OR FEE BASIS).
  2. "BACK OFFICE OPERATIONS" MEANS A BUSINESS FUNCTION THAT MAY INCLUDE
ONE  OR  MORE OF THE FOLLOWING ACTIVITIES: CUSTOMER SERVICE, INFORMATION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04402-01-3

S. 822                              2

TECHNOLOGY AND DATA PROCESSING, HUMAN RESOURCES, ACCOUNTING AND  RELATED
ADMINISTRATIVE FUNCTIONS.
  3.  "CERTIFICATE  OF  ELIGIBILITY"  MEANS  THE  DOCUMENT ISSUED BY THE
DEPARTMENT TO AN APPLICANT THAT  HAS  COMPLETED  AN  APPLICATION  TO  BE
ADMITTED INTO THE CAPITAL INVESTMENT JOBS RETENTION PROGRAM AND HAS BEEN
ACCEPTED INTO THE PROGRAM BY THE DEPARTMENT. POSSESSION OF A CERTIFICATE
OF ELIGIBILITY DOES NOT BY ITSELF GUARANTEE THE ELIGIBILITY TO CLAIM THE
TAX CREDIT.
  4.  "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A PARTIC-
IPANT BY THE DEPARTMENT, AFTER THE  DEPARTMENT  HAS  VERIFIED  THAT  THE
PARTICIPANT HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE.
THE  CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED
AND SHALL SPECIFY THE EXACT AMOUNT OF EACH TAX CREDIT UNDER THIS ARTICLE
THAT  A  PARTICIPANT  MAY  CLAIM,  PURSUANT  TO  SECTION  FOUR   HUNDRED
FORTY-FOUR  OF THIS ARTICLE, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH
SUCH CREDIT MAY BE CLAIMED.
  5. "DISTRIBUTION CENTER" MEANS A LARGE SCALE FACILITY INVOLVING  PROC-
ESSING,  REPACKAGING  AND/OR MOVEMENT OF FINISHED OR SEMI-FINISHED GOODS
TO RETAIL LOCATIONS ACROSS A MULTI-STATE AREA.
  6. "FINANCIAL SERVICES DATA CENTERS" OR "FINANCIAL  SERVICES  CUSTOMER
BACK  OFFICE  OPERATIONS"  MEANS  OPERATIONS  THAT  MANAGE  THE  DATA OR
ACCOUNTS OF EXISTING CUSTOMERS OR PROVIDE PRODUCT OR SERVICE INFORMATION
AND SUPPORT TO CUSTOMERS  OF  FINANCIAL  SERVICES  COMPANIES,  INCLUDING
BANKS,  OTHER  LENDERS,  SECURITIES AND COMMODITIES BROKERS AND DEALERS,
INVESTMENT BANKS,  PORTFOLIO  MANAGERS,  TRUST  OFFICES,  AND  INSURANCE
COMPANIES.
  7.  "IMPACTED  JOBS" MEANS JOBS EXISTING AT A BUSINESS ENTERPRISE AT A
LOCATION OR LOCATIONS WITHIN THE COUNTY DECLARED  AN  EMERGENCY  BY  THE
GOVERNOR  ON  THE  DAY  IMMEDIATELY PRECEDING THE DAY ON WHICH THE EVENT
LEADING TO THE EMERGENCY DECLARATION BY THE GOVERNOR OCCURRED.
  8. "MANUFACTURING" MEANS THE PROCESS OF  WORKING  RAW  MATERIALS  INTO
PRODUCTS  SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR NEW
COMBINATIONS TO MATTER WHICH HAS ALREADY GONE  THROUGH  SOME  ARTIFICIAL
PROCESS  BY  THE  USE  OF MACHINERY, TOOLS, APPLIANCES, OR OTHER SIMILAR
EQUIPMENT. "MANUFACTURING" DOES NOT INCLUDE AN OPERATION  THAT  INVOLVES
ONLY  THE  ASSEMBLY  OF  COMPONENTS,  PROVIDED, HOWEVER, THE ASSEMBLY OF
MOTOR VEHICLES OR OTHER HIGH VALUE-ADDED PRODUCTS  SHALL  BE  CONSIDERED
MANUFACTURING.
  9. "PARTICIPANT" MEANS A BUSINESS ENTITY THAT:
  (A)  HAS  COMPLETED  AN APPLICATION PRESCRIBED BY THE DEPARTMENT TO BE
ADMITTED INTO THE PROGRAM;
  (B) HAS BEEN ISSUED A CERTIFICATE OF ELIGIBILITY BY THE DEPARTMENT;
  (C) HAS DEMONSTRATED THAT IT MEETS THE ELIGIBILITY CRITERIA IN SECTION
FOUR HUNDRED FORTY-TWO AND  SUBDIVISION  TWO  OF  SECTION  FOUR  HUNDRED
FORTY-THREE OF THIS ARTICLE; AND
  (D) HAS BEEN CERTIFIED AS A PARTICIPANT BY THE COMMISSIONER.
  10.  "PRELIMINARY  SCHEDULE  OF  BENEFITS" MEANS THE MAXIMUM AGGREGATE
AMOUNT OF THE TAX CREDIT THAT A PARTICIPANT IN  THE  EMPIRE  STATE  JOBS
RETENTION  PROGRAM  IS ELIGIBLE TO RECEIVE PURSUANT TO THIS ARTICLE. THE
SCHEDULE SHALL INDICATE THE ANNUAL AMOUNT OF THE  CREDIT  A  PARTICIPANT
MAY CLAIM IN EACH OF ITS TEN YEARS OF ELIGIBILITY. THE PRELIMINARY SCHE-
DULE  OF  BENEFITS SHALL BE ISSUED BY THE DEPARTMENT WHEN THE DEPARTMENT
APPROVES THE APPLICATION FOR ADMISSION INTO THE PROGRAM. THE COMMISSION-
ER MAY AMEND THAT SCHEDULE, PROVIDED THAT THE COMMISSIONER COMPLIES WITH
THE CREDIT CAPS IN SECTION THREE HUNDRED FIFTY-NINE OF THIS CHAPTER.

S. 822                              3

  11. "PROJECT SITE" MEANS A SINGLE LOCATION FROM WHICH  OPERATIONS  ARE
CONDUCTED  AND MANUFACTURERS MAY DESIGNATE MULTIPLE LOCATIONS CONSISTING
OF ONE OR MORE INTEGRATED BUILDINGS OR STRUCTURES WITHIN A  FIFTEEN-MILE
RADIUS AS ONE PROJECT SITE.
  12.  "RELATED  PERSON" MEANS A RELATED PERSON PURSUANT TO SUBPARAGRAPH
(C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED  SIXTY-
FIVE OF THE INTERNAL REVENUE CODE.
  13.  "SCIENTIFIC  RESEARCH  AND DEVELOPMENT" MEANS CONDUCTING RESEARCH
AND EXPERIMENTAL DEVELOPMENT IN  THE  PHYSICAL,  ENGINEERING,  AND  LIFE
SCIENCES,  INCLUDING  BUT NOT LIMITED TO AGRICULTURE, ELECTRONICS, ENVI-
RONMENTAL, BIOLOGY, BOTANY, BIOTECHNOLOGY, COMPUTERS,  CHEMISTRY,  FOOD,
FISHERIES,  FORESTS,  GEOLOGY, HEALTH, MATHEMATICS, MEDICINE, OCEANOGRA-
PHY, PHARMACY, PHYSICS, VETERINARY, AND OTHER ALLIED SUBJECTS.  FOR  THE
PURPOSES  OF  THIS ARTICLE, SCIENTIFIC RESEARCH AND DEVELOPMENT DOES NOT
INCLUDE MEDICAL OR VETERINARY LABORATORY TESTING FACILITIES.
  13. "SOFTWARE  DEVELOPMENT"  MEANS  THE  CREATION  OF  CODED  COMPUTER
INSTRUCTIONS  AND  INCLUDES  NEW MEDIA AS DEFINED BY THE COMMISSIONER IN
REGULATIONS.
  S 442. ELIGIBILITY CRITERIA. 1. TO BE A  PARTICIPANT  IN  THE  CAPITAL
INVESTMENT JOBS RETENTION PROGRAM, A BUSINESS ENTITY SHALL:
  (A) OPERATE IN NEW YORK STATE PREDOMINANTLY:
  (I)  AS  A FINANCIAL SERVICES DATA CENTER OR A FINANCIAL SERVICES BACK
OFFICE OPERATION;
  (II) IN MANUFACTURING;
  (III) IN SOFTWARE DEVELOPMENT AND NEW MEDIA;
  (IV) IN SCIENTIFIC RESEARCH AND DEVELOPMENT;
  (V) IN AGRICULTURE;
  (VI) IN THE CREATION OR EXPANSION OF BACK  OFFICE  OPERATIONS  IN  THE
STATE; OR
  (VII) IN A DISTRIBUTION CENTER.
  (B) INVEST AT LEAST FIFTY MILLION DOLLARS IN FIXED ASSETS FOR MANUFAC-
TURING  OPERATIONS  OR  TWENTY  MILLION  IN FIXED ASSETS FOR SIGNIFICANT
CORPORATE ADMINISTRATIVE FUNCTIONS AT THE PROJECT SITE. SUCH  INVESTMENT
SHALL BE COMPLETED WITHIN THE THREE CONSECUTIVE CALENDAR YEARS PRECEDING
THE  TAXABLE  YEAR IN WHICH SUCH PARTICIPANT FIRST CLAIMS THE TAX CREDIT
SET FORTH IN THIS ARTICLE. IN CALCULATING SUCH INVESTMENT,  THE  PARTIC-
IPANT MAY NOT INCLUDE:
  (I)  PAYMENTS  MADE  FOR  THE ACQUISITION OF PERSONAL PROPERTY THROUGH
OPERATING LEASES,
  (II) PAYMENTS MADE TO RELATED MEMBERS, INCLUDING, BUT NOT  LIMITED  TO
RELATED ENTITIES, COMPONENT MEMBERS, OR PERSONS TO OR FROM WHOM THERE IS
ATTRIBUTION OF STOCK OWNERSHIP,
  (III) ELECTED CONSOLIDATED TAXPAYERS, OR
  (IV) PERSONS TREATED AS SINGLE TAXPAYERS KNOWN AS COMBINED TAXPAYERS.
  (C)  AGREE TO MAINTAIN OPERATIONS AT THE PROJECT SITE FOR AT LEAST THE
GREATER OF:
  (I) THE TERM OF THE TAX CREDIT PLUS THREE YEARS, OR
  (II) SEVEN YEARS.
  (D) DEMONSTRATE TO THE COMMISSIONER THAT:
  (I) IT IS ECONOMICALLY SOUND AND POSSESSES THE FINANCIAL CAPABILITY TO
COMPLETE THE REQUIRED CAPITAL INVESTMENT, AND
  (II) THE TAX CREDIT PROVIDED FOR IN THIS ARTICLE IS A MAJOR FACTOR  IN
ITS DETERMINATION TO BEGIN, CONTINUE AND COMPLETE THE CAPITAL INVESTMENT
PROJECT.
  (E)  PROVIDE  THE COMMISSIONER WITH A LETTER OF SUPPORT FROM THE LOCAL
COMMUNITY IN WHICH THE PROJECT IS LOCATED.

S. 822                              4

  2. WHEN DETERMINING WHETHER AN APPLICANT IS OPERATING PREDOMINANTLY IN
ONE OF THE INDUSTRIES LISTED IN SUBDIVISION ONE  OF  THIS  SECTION,  THE
COMMISSIONER  SHALL  EXAMINE  THE NATURE OF THE BUSINESS ACTIVITY AT THE
LOCATION FOR THE PROPOSED PROJECT AND  WILL  MAKE  ELIGIBILITY  DETERMI-
NATIONS BASED ON SUCH ACTIVITY.
  3.  FOR  THE  PURPOSES OF THIS ARTICLE, IN ORDER TO PARTICIPATE IN THE
CAPITAL INVESTMENT JOBS RETENTION PROGRAM, A BUSINESS  ENTITY  OPERATING
IN  ONE  OF  THE  STRATEGIC INDUSTRIES LISTED IN SUBDIVISION ONE OF THIS
SECTION:
  (A) SHALL EMPLOY AT LEAST TWO HUNDRED FULL-TIME EQUIVALENT JOBS AT THE
PROJECT SITE DURING THE TIME FOR WHICH THE TAX CREDIT IS GRANTED, AND
  (B) SHALL CONTINUE TO EMPLOY AT LEAST TWO HUNDRED FULL-TIME EQUIVALENT
EMPLOYEES FOR THE DURATION OF THE AGREEMENT ENTERED INTO WITH THE EMPIRE
STATE DEVELOPMENT CORPORATION;  PROVIDED,  HOWEVER,  THAT  THE  BUSINESS
ENTITY  SHALL NOT INCLUDE FULL-TIME EQUIVALENT POSITIONS WHOSE EXISTENCE
ARE PREDICATED UPON THE ASSISTANCE OFFERED BY THE TAX CREDIT.
  4. AN INTRASTATE RELOCATION PROJECT, A NOT-FOR-PROFIT BUSINESS ENTITY,
A BUSINESS ENTITY WHOSE PRIMARY FUNCTION IS THE  PROVISION  OF  SERVICES
INCLUDING  PERSONAL  SERVICES,  BUSINESS  SERVICES,  OR THE PROVISION OF
UTILITIES, A BUSINESS ENTITY ENGAGED  PREDOMINANTLY  IN  THE  RETAIL  OR
ENTERTAINMENT  INDUSTRY,  OR  A  COMPANY  ENGAGED  IN  THE GENERATION OR
DISTRIBUTION OF ELECTRICITY, THE DISTRIBUTION OF  NATURAL  GAS,  OR  THE
PRODUCTION  OF  STEAM  ASSOCIATED WITH THE GENERATION OF ELECTRICITY ARE
NOT ELIGIBLE TO RECEIVE THE TAX CREDIT DESCRIBED IN THIS ARTICLE.
  5. A BUSINESS ENTITY MUST BE IN COMPLIANCE WITH ALL WORKER  PROTECTION
AND  ENVIRONMENTAL  LAWS AND REGULATIONS. IN ADDITION, A BUSINESS ENTITY
MAY NOT OWE PAST DUE STATE TAXES. IN ADDITION, A  BUSINESS  ENTITY  MUST
NOT  OWE LOCAL PROPERTY TAXES FOR ANY YEAR PRIOR TO THE YEAR IN WHICH IT
APPLIES TO PARTICIPATE IN THE CAPITAL INVESTMENT JOBS RETENTION PROGRAM.
  S 443. APPLICATION AND APPROVAL  PROCESS.  1.  A  BUSINESS  ENTERPRISE
SHALL  SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE COMMISSIONER.
SUCH COMPLETED APPLICATION SHALL BE SUBMITTED TO THE COMMISSIONER WITHIN
ONE HUNDRED EIGHTY DAYS OF THE ENACTMENT OF THIS ARTICLE.
  2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTERPRISE SHALL:
  (A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED  AS
A  RESULT  OF  THIS  AGREEMENT  SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
  (B) AGREE TO ALLOW THE DEPARTMENT  OF  LABOR  TO  SHARE  ITS  TAX  AND
EMPLOYER  INFORMATION  WITH  THE  DEPARTMENT.  HOWEVER,  ANY INFORMATION
SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR  DISCLO-
SURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
  (C)  ALLOW  THE  DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
  (D) AGREE TO BE PERMANENTLY DISQUALIFIED FOR EMPIRE ZONE TAX  BENEFITS
AT  ANY  LOCATION  OR LOCATIONS THAT QUALIFY FOR CAPITAL INVESTMENT JOBS
RETENTION PROGRAM BENEFITS IF ADMITTED INTO THE CAPITAL INVESTMENT  JOBS
RETENTION PROGRAM.
  (E) PROVIDE THE FOLLOWING INFORMATION TO THE DEPARTMENT UPON REQUEST:
  (I)  A  PLAN  OUTLINING  THE  SCHEDULE  FOR MEETING THE JOBS RETENTION
REQUIREMENTS AS SET FORTH IN SUBDIVISION THREE OF SECTION  FOUR  HUNDRED
FORTY-TWO OF THIS ARTICLE. SUCH PLAN MUST INCLUDE DETAILS ON JOBS TITLES
AND EXPECTED SALARIES;
  (II)  THE  PRIOR  THREE YEARS OF FEDERAL AND STATE INCOME OR FRANCHISE
TAX RETURNS, UNEMPLOYMENT INSURANCE QUARTERLY RETURNS, REAL PROPERTY TAX
BILLS AND AUDITED FINANCIAL STATEMENTS; AND

S. 822                              5

  (III) THE EMPLOYER IDENTIFICATION OR SOCIAL SECURITY NUMBERS  FOR  ALL
RELATED  PERSONS  TO  THE APPLICANT, INCLUDING THOSE OF ANY MEMBERS OF A
LIMITED LIABILITY COMPANY OR PARTNERS IN A PARTNERSHIP.
  (F)  PROVIDE  A CLEAR AND DETAILED PRESENTATION OF ALL RELATED PERSONS
TO THE APPLICANT TO ASSURE THE DEPARTMENT THAT JOBS ARE NOT BEING SHIFT-
ED WITHIN THE STATE.
  (G) CERTIFY, UNDER PENALTY OF  PERJURY,  THAT  IT  IS  IN  SUBSTANTIAL
COMPLIANCE  WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL, STATE,
AND FEDERAL TAX LAWS.
  3. AFTER REVIEWING A BUSINESS ENTERPRISE'S COMPLETED  APPLICATION  AND
DETERMINING  THAT  THE  BUSINESS ENTERPRISE WILL MEET THE CONDITIONS SET
FORTH IN SUBDIVISION THREE OF SECTION FOUR  HUNDRED  FORTY-TWO  OF  THIS
ARTICLE,  THE  DEPARTMENT  MAY  ADMIT THE APPLICANT INTO THE PROGRAM AND
PROVIDE THE APPLICANT WITH A CERTIFICATE OF ELIGIBILITY AND  A  PRELIMI-
NARY  SCHEDULE  OF BENEFITS BY YEAR BASED ON THE APPLICANT'S PROJECTIONS
AS SET FORTH IN ITS APPLICATION.  THIS PRELIMINARY SCHEDULE OF  BENEFITS
DELINEATES THE MAXIMUM POSSIBLE BENEFITS AN APPLICANT MAY RECEIVE.
  4. IN ORDER TO BECOME A PARTICIPANT IN THE PROGRAM, AN APPLICANT SHALL
SUBMIT  EVIDENCE THAT IT SATISFIES THE ELIGIBILITY CRITERIA SPECIFIED IN
SECTION FOUR HUNDRED FORTY-TWO OF THIS ARTICLE AND  SUBDIVISION  TWO  OF
THIS  SECTION  IN  SUCH  FORM  AS  THE COMMISSIONER MAY PRESCRIBE. AFTER
REVIEWING SUCH EVIDENCE AND FINDING IT SUFFICIENT, THE DEPARTMENT  SHALL
CERTIFY  THE  APPLICANT AS A PARTICIPANT AND ISSUE TO THAT PARTICIPANT A
CERTIFICATE OF TAX CREDIT FOR ONE TAXABLE YEAR. TO RECEIVE A CERTIFICATE
OF TAX CREDIT FOR SUBSEQUENT TAXABLE YEARS, THE PARTICIPANT MUST  SUBMIT
TO  THE  DEPARTMENT  A PERFORMANCE REPORT DEMONSTRATING THAT THE PARTIC-
IPANT CONTINUES TO SATISFY THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION
FOUR HUNDRED FORTY-TWO OF THIS  ARTICLE  AND  SUBDIVISION  TWO  OF  THIS
SECTION.
  5.  A PARTICIPANT MAY CLAIM TAX BENEFITS COMMENCING IN THE FIRST TAXA-
BLE YEAR THAT THE BUSINESS ENTERPRISE  RECEIVES  A  CERTIFICATE  OF  TAX
CREDIT  OR  THE FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY SCHEDULE OF
BENEFITS, WHICHEVER IS LATER. A PARTICIPANT MAY CLAIM SUCH BENEFITS  FOR
THE  NEXT  NINE CONSECUTIVE TAXABLE YEARS, PROVIDED THAT THE PARTICIPANT
DEMONSTRATES TO THE DEPARTMENT THAT IT CONTINUES TO SATISFY  THE  ELIGI-
BILITY  CRITERIA  SPECIFIED  IN  SECTION  FOUR HUNDRED FORTY-TWO OF THIS
ARTICLE AND SUBDIVISION TWO OF THIS SECTION IN  EACH  OF  THOSE  TAXABLE
YEARS.
  S  444. CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT. 1. A PARTIC-
IPANT IN THE CAPITAL INVESTMENT JOBS RETENTION PROGRAM SHALL BE ELIGIBLE
TO CLAIM A CREDIT FOR THE IMPACTED JOBS. THE AMOUNT OF SUCH CREDIT SHALL
BE EQUAL TO SEVENTY-FIVE PERCENT OF THE  NEW  YORK  STATE  INCOME  TAXES
WITHHELD FROM ELIGIBLE FULL-TIME EMPLOYEES.
  2.  THE  TAX CREDIT ESTABLISHED IN THIS SECTION SHALL BE REFUNDABLE AS
PROVIDED IN THE TAX LAW. IF A PARTICIPANT FAILS TO SATISFY THE ELIGIBIL-
ITY CRITERIA IN ANY ONE YEAR, IT WILL LOSE THE ABILITY TO  CLAIM  CREDIT
FOR  THAT  YEAR. THE EVENT OF SUCH FAILURE SHALL NOT EXTEND THE ORIGINAL
TEN-YEAR ELIGIBILITY PERIOD.
  3. (A) THE BUSINESS ENTERPRISE SHALL BE ALLOWED TO CLAIM THE CREDIT AS
PRESCRIBED IN SECTION THIRTY-EIGHT OF THE TAX LAW; PROVIDED, HOWEVER,  A
BUSINESS  ENTERPRISE  SHALL  NOT BE ALLOWED TO CLAIM THE CREDIT PRIOR TO
TAX YEAR TWO THOUSAND FOURTEEN.
  (B) ANY INDIVIDUAL THAT IS A MEMBER OR EMPLOYEE OF A  PARTICIPANT  MAY
CLAIM THE PRO RATA SHARE OF THE CREDIT EARNED BY SUCH PARTICIPANT.
  4.  A  PARTICIPANT  MAY BE ELIGIBLE FOR BENEFITS UNDER THIS ARTICLE AS
WELL AS ARTICLE SEVENTEEN OF THIS CHAPTER, PROVIDED THE PARTICIPANT  CAN

S. 822                              6

ONLY  RECEIVE  BENEFITS  PURSUANT  TO  SUBDIVISION  TWO OF SECTION THREE
HUNDRED FIFTY-FIVE OF THIS CHAPTER FOR COSTS IN EXCESS OF  COSTS  RECOV-
ERED BY INSURANCE.
  S  445.  POWERS  AND  DUTIES  OF THE COMMISSIONER. 1. THE COMMISSIONER
SHALL PROMULGATE REGULATIONS ESTABLISHING  AN  APPLICATION  PROCESS  AND
ELIGIBILITY  CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES
OF THIS ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX  CREDITS  SET
FORTH  IN  SECTION  THREE  HUNDRED  FIFTY-NINE  OF  THIS  CHAPTER WHICH,
NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE  ADMINISTRA-
TIVE  PROCEDURE  ACT,  MAY  BE ADOPTED ON AN EMERGENCY BASIS. SUCH REGU-
LATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, CRITERIA  FOR  DETERMINING
WHETHER A BUSINESS ENTITY IS ECONOMICALLY SOUND AND POSSESSES THE FINAN-
CIAL  CAPABILITY TO COMPLETE THE REQUIRED CAPITAL INVESTMENT AND WHETHER
THE TAX CREDIT PROVIDED FOR IN THIS ARTICLE IS A  MAJOR  FACTOR  IN  THE
DETERMINATION  OF  SUCH  BUSINESS ENTITY TO BEGIN, CONTINUE AND COMPLETE
THE CAPITAL INVESTMENT PROJECT.
  2. THE COMMISSIONER SHALL, IN  CONSULTATION  WITH  THE  DEPARTMENT  OF
TAXATION  AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
ISSUED BY THE COMMISSIONER TO PARTICIPANTS. PARTICIPANTS MAY BE REQUIRED
BY THE COMMISSIONER OF TAXATION AND FINANCE TO INCLUDE  THE  CERTIFICATE
OF  TAX  CREDIT  WITH THEIR TAX RETURN TO RECEIVE ANY TAX BENEFITS UNDER
THIS ARTICLE.
  3. THE COMMISSIONER SHALL SOLELY  DETERMINE  THE  ELIGIBILITY  OF  ANY
APPLICANT  APPLYING  FOR  ENTRY  INTO  THE  PROGRAM AND SHALL REMOVE ANY
PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SUBDIVISION TWO OF SECTION FOUR HUNDRED FORTY-THREE OF THIS
ARTICLE, OR FOR FAILING TO MEET THE JOB RETENTION REQUIREMENTS SET FORTH
IN SUBDIVISION THREE OF SECTION FOUR HUNDRED FORTY-TWO OF THIS  ARTICLE,
OR  FOR  FAILING TO MEET THE REQUIREMENTS OF SUBDIVISION FIVE OF SECTION
FOUR HUNDRED FORTY-TWO OF THIS ARTICLE.
  S 446. MAINTENANCE OF RECORDS. EACH PARTICIPANT SHALL KEEP  ALL  RELE-
VANT  RECORDS  FOR  THE DURATION OF ITS PROGRAM PARTICIPATION PLUS THREE
YEARS.
  S 447. REPORTING. 1. (A) IN ORDER TO RECEIVE A TAX CREDIT  CERTIFICATE
AND  TO  MAINTAIN  ELIGIBILITY FOR THIS TAX CREDIT PROGRAM, THE TAXPAYER
MUST SUBMIT AN ANNUAL REPORT TO THE DEPARTMENT OF TAXATION  AND  FINANCE
BY  MARCH  FIRST OF THE YEAR FOLLOWING ANY YEAR FOR WHICH THE TAX CREDIT
IS CLAIMED, THE FIRST REPORT OF WHICH IS DUE MARCH  FIRST  OF  THE  YEAR
FOLLOWING THE CALENDAR YEAR IN WHICH THE INVESTMENT IS COMPLETED AND THE
TAX CREDIT BEGINS.
  (B)  SUCH REPORT SHALL CONTAIN THE NUMBER OF ELIGIBLE FULL-TIME EQUIV-
ALENT EMPLOYEES AND THE AMOUNT OF INCOME TAX WITHHELD FROM THOSE EMPLOY-
EES, AND THE AMOUNTS PAID TOWARDS THE COMPLETION OF THE CAPITAL  INVEST-
MENT. ONCE THIS IS VERIFIED BY THE COMMISSIONER OF TAXATION AND FINANCE,
THE COMMISSIONER WILL ISSUE A TAX CREDIT CERTIFICATE TO THE TAXPAYER.
  (C)  THE  PARTICIPANT MUST THEN SUBMIT THE TAX CREDIT CERTIFICATE WITH
THE APPLICABLE STATE TAX RETURN. IF THE TAX CREDIT IS GREATER  THAN  THE
STATE  TAX  LIABILITY,  THE  UNUSED PORTION MAY BE CARRIED FORWARD UP TO
THREE YEARS.
  (D) FAILURE TO SUBMIT A COMPLETE AND TIMELY ANNUAL REPORT WILL  RESULT
IN  THE  ASSESSMENT  OF  A FIVE HUNDRED DOLLAR LATE FEE FOR EACH ENSUING
CALENDAR MONTH THE REPORT REMAINS INCOMPLETE OR UNFILED.
  (E) ONCE THE ACTIVE TERM OF THE TAX CREDIT ENDS, A  POST-TERM  PERIOD,
LENGTH  TO  BE  DETERMINED  BY THE EMPIRE STATE DEVELOPMENT CORPORATION,
WILL REQUIRE ANNUAL REPORTING REQUIREMENTS TO CERTIFY  THAT  SUBSTANTIAL
OPERATIONS REMAIN AT THE PROJECT SITE.

S. 822                              7

  2. EACH PARTICIPANT MUST SUBMIT A PERFORMANCE REPORT ANNUALLY, IN SUCH
FORM  AS  THE COMMISSIONER MAY REQUIRE, WITHIN THIRTY DAYS OF THE END OF
THEIR TAXABLE YEAR.
  3.  THE  COMMISSIONER  SHALL  PREPARE  ON  A QUARTERLY BASIS A PROGRAM
REPORT FOR POSTING ON THE DEPARTMENT'S WEBSITE. THE FIRST REPORT WILL BE
DUE JUNE THIRTIETH, TWO THOUSAND FIFTEEN, AND EVERY THREE MONTHS  THERE-
AFTER.  SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
NUMBER  OF APPLICANTS; NUMBER OF PARTICIPANTS APPROVED; NAMES OF PARTIC-
IPANTS; TOTAL  AMOUNT  OF  BENEFITS  CERTIFIED;  BENEFITS  RECEIVED  PER
PARTICIPANT;  TOTAL  NUMBER OF RETAINED JOBS; AND SUCH OTHER INFORMATION
AS THE COMMISSIONER DETERMINES.
  S 448. CAP ON TAX CREDIT. 1. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER  FOR  ANY  TAXABLE
YEAR MAY NOT EXCEED THE FOLLOWING AMOUNTS:
  (A) FOR 2014, THIRTEEN MILLION DOLLARS.
  (B) FOR 2015, EIGHTEEN MILLION DOLLARS.
  (C) FOR 2016, TWENTY-THREE MILLION DOLLARS.
  (D) FOR 2017, TWENTY-EIGHT MILLION DOLLARS.
  (E) FOR 2018, THIRTY-THREE MILLION DOLLARS.
  2.  FOR  EACH  INDIVIDUAL PROJECT, THE EMPIRE STATE DEVELOPMENT CORPO-
RATION SHALL APPROVE A SCHEDULE FOR THE MAXIMUM AMOUNT OF CREDITS TO  BE
ISSUED IN A CALENDAR YEAR.
  S 449. PENALTIES. 1. IF A PARTICIPANT FAILS TO MAINTAIN THE JOB LEVELS
REQUIRED  IN SUBDIVISION THREE OF SECTION FOUR HUNDRED FORTY-TWO OF THIS
ARTICLE, OR IN ANY OTHER WAY FAILS TO COMPLY WITH THE TERMS, THE  EMPIRE
STATE  DEVELOPMENT  CORPORATION MAY TERMINATE OR REDUCE THE BENEFITS, OR
MAY ASK FOR A ONE HUNDRED PERCENT REFUND OF ASSISTANCE RECEIVED.
  2. IF THE PARTICIPANT FAILS TO COMPLY WITH TERMS DURING THE  POST-TERM
REPORTING PERIOD, THE EMPIRE STATE DEVELOPMENT CORPORATION MAY REQUIRE A
REFUND OF UP TO SEVENTY-FIVE PERCENT OF ASSISTANCE RECEIVED.
  S  2.  The  tax  law  is amended by adding a new section 38 to read as
follows:
  S 38. CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT. (A)  ALLOWANCE
OF  CREDIT.  A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A, TWENTY-TWO,
THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER SHALL  BE  ALLOWED  A  CREDIT
AGAINST  SUCH  TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION
(E) OF THIS SECTION. THE AMOUNT OF THE CREDIT, ALLOWABLE FOR TEN CONSEC-
UTIVE TAX YEARS, IS EQUAL TO THE AMOUNT DETERMINED PURSUANT  TO  SECTION
FOUR HUNDRED FORTY-FOUR OF THE ECONOMIC DEVELOPMENT LAW.
  (B)  ELIGIBILITY.  TO  BE  ELIGIBLE  FOR  THE  CAPITAL INVESTMENT JOBS
RETENTION CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED A  CERTIFICATE  OF
TAX  CREDIT BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO SUBDI-
VISION FOUR OF SECTION FOUR HUNDRED FORTY-THREE OF THE ECONOMIC DEVELOP-
MENT LAW, WHICH CERTIFICATE SHALL SET FORTH THE  AMOUNT  OF  THE  CREDIT
THAT  MAY  BE  CLAIMED  FOR  THE TAXABLE YEAR. A TAXPAYER MAY CLAIM SUCH
CREDIT FOR UP TO TEN CONSECUTIVE TAXABLE YEARS COMMENCING IN  THE  FIRST
TAXABLE  YEAR  THAT THE TAXPAYER RECEIVES A CERTIFICATE OF TAX CREDIT OR
THE FIRST TAXABLE YEAR LISTED ON ITS PRELIMINARY SCHEDULE  OF  BENEFITS,
WHICHEVER IS LATER.
  HOWEVER,  A TAXPAYER SHALL NOT BE ALLOWED TO CLAIM THE CREDIT PRIOR TO
THE TAX YEAR COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN
AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN. THE  TAXPAYER  SHALL  BE
ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT
FOR  THAT TAXABLE YEAR. SUCH CERTIFICATE, IF REQUIRED BY THE COMMISSION-
ER, SHALL BE ATTACHED TO THE TAXPAYER'S RETURN. NO COST OR EXPENSE  PAID

S. 822                              8

OR INCURRED BY THE TAXPAYER WHICH IS INCLUDED AS PART OF THE CALCULATION
OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT.
  (C)  INFORMATION  SHARING.  (1)  NOTWITHSTANDING ANY PROVISION OF THIS
CHAPTER, EMPLOYEES AND OFFICERS OF THE DEPARTMENT OF  ECONOMIC  DEVELOP-
MENT  AND  THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND
EXCHANGE:
  (A) INFORMATION DERIVED FROM TAX RETURNS OR REPORTS THAT  IS  RELEVANT
TO  A  TAXPAYER'S  ELIGIBILITY  TO PARTICIPATE IN THE CAPITAL INVESTMENT
JOBS RETENTION PROGRAM;
  (B) INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED  OR  CLAIMED
PURSUANT  TO  THIS SECTION AND TAXPAYERS WHO ARE APPLYING FOR THE CREDIT
OR WHO ARE CLAIMING THE CREDIT; AND
  (C) INFORMATION CONTAINED  IN  OR  DERIVED  FROM  CREDIT  CLAIM  FORMS
SUBMITTED  TO  THE  DEPARTMENT  AND  APPLICATIONS FOR ADMISSION INTO THE
CAPITAL INVESTMENT JOBS RETENTION PROGRAM.
  EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION, ALL  INFORMA-
TION  EXCHANGED  BETWEEN  THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE
DEPARTMENT SHALL NOT BE SUBJECT TO DISCLOSURE OR  INSPECTION  UNDER  THE
STATE'S FREEDOM OF INFORMATION LAW.
  (2) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, THE COMMISSIONER OR
THE  COMMISSIONER'S  DESIGNEE  IS AUTHORIZED TO RELEASE THE NAME OF EACH
TAXPAYER CLAIMING THE CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY EACH
TAXPAYER. HOWEVER, IF THE TAXPAYER CLAIMS A CREDIT BECAUSE THE  TAXPAYER
IS  A  MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN A PARTNERSHIP
OR A SHAREHOLDER IN A SUBCHAPTER S  CORPORATION,  ONLY  THE  NAME  OF  A
LIMITED  LIABILITY  COMPANY,  PARTNERSHIP  OR  SUBCHAPTER  S CORPORATION
PARTICIPATING IN THE CAPITAL INVESTMENT JOBS RETENTION PROGRAM  AND  THE
AMOUNT OF CREDIT EARNED BY THAT ENTITY MAY BE RELEASED.
  (D) CREDIT RECAPTURE. IF A CERTIFICATE OF ELIGIBILITY OR A CERTIFICATE
OF  TAX  CREDIT  ISSUED  BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER
ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW IS  REVOKED  BY  SUCH
DEPARTMENT,  THE  AMOUNT OF CREDIT DESCRIBED IN THIS SECTION AND CLAIMED
BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK TO  TAX  IN
THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL.
  (E)  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, SUBSECTION (VV);
  (3) ARTICLE 32: SECTION 1456, SUBSECTION (Z);
  (4) ARTICLE 33, SECTION 1511, SUBDIVISION (CC).
  S 3. Section 210 of the tax law is amended by adding a new subdivision
46 to read as follows:
  46. CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS  PROVIDED
IN  SECTION  THIRTY-EIGHT  OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY
THIS ARTICLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. 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  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. 822                              9

  S  4. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV)  CAPITAL  INVESTMENT JOBS PROGRAM RETENTION CREDIT. (1) ALLOWANCE
OF 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.
  (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  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xxxv)  to  read  as
follows:
(XXXV) CAPITAL INVESTMENT            AMOUNT OF CREDIT UNDER SUBDIVISION
JOBS RETENTION PROGRAM CREDIT        FORTY-SIX OF SECTION TWO HUNDRED
                                     TEN OR UNDER SUBSECTION (Z) OF
                                     SECTION FOURTEEN HUNDRED FIFTY-SIX
  S 6. Section 1456 of the tax law is amended by adding a new subsection
(z) to read as follows:
  (Z) CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT. (1) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN  SECTION  THIRTY-EIGHT  OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY
THIS ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. HOWEVER, IF  THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER  THIS SUBSECTION 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  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  7.  Section 1511 of the tax law is amended by adding a new subdivi-
sion (cc) to read as follows:
  (CC) CAPITAL INVESTMENT JOBS RETENTION PROGRAM CREDIT.  (1)  ALLOWANCE
OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION THIRTY-EIGHT OF  THIS  CHAPTER,  AGAINST  THE  TAXES
IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
THAN  THE  MINIMUM  TAX FIXED BY THIS ARTICLE. 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 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 8. This act shall take effect  immediately;  provided  however  that
sections  two,  three, four, five, six and seven of this act shall apply
to taxable years beginning on and after January 1, 2014.

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