Jobs for New York state act; appropriation; repealer
download bill text pdf| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Apr 14, 2010 |
referred to economic development |
Relates to the certification of businesses as clean energy enterprises and the termination or revision of an empire zone and procedures relating to uniform tax exemption policy; relates to empire zone credit for real property taxes and qualified emerging technology company facilities; relates to certain financial assistance programs; relates to the financing of life care communities
BILL NUMBER:A10679
TITLE OF BILL: An act to amend the general municipal law, in relation
to the certification of businesses as clean energy enterprises and the
termination or revision of an empire zone and procedures relating to
uniformed tax exemption policy; to amend the tax law, in relation to
empire zone credit for real property taxes and qualified emerging tech-
nology company facilities; to amend the public authorities law, in
relation to certain financial assistance programs; to amend section 15
of chapter 66 of the laws of 1994, amending the public health law, the
general municipal law and the insurance law relating to the financing of
life care communities, in relation to the date of approval of certif-
icates of authority; to amend the economic development law, in relation
to establishing a high tech marketing program and providing an appropri-
ation therefor; to amend the New York state urban development corpo-
ration act, in relation to establishing a new technology seed fund; and
to repeal certain provisions of the public authorities law relating to
the recovery of state governmental costs from institutional development
agencies
PURPOSE OF THE BILL: Establishes the Jobs for New York State (JOBS4NY)
economic development and job creation stimulus plan. This economic stim-
ulus program would help create thousands of jobs, especially in manufac-
turing and high tech sectors, and by expanding economic activity, help
local governments and the state address current fiscal problems. This
legislation would implement several initiatives that would lead to
S T A T E O F N E W Y O R K
________________________________________________________________________
10679
I N A S S E M B L Y
April 14, 2010
___________
Introduced by M. of A. SCHIMMINGER -- read once and referred to the
Committee on Economic Development, Job Creation, Commerce and Industry
AN ACT to amend the general municipal law, in relation to the certif-
ication of businesses as clean energy enterprises and the termination
or revision of an empire zone and procedures relating to uniformed tax
exemption policy; to amend the tax law, in relation to empire zone
credit for real property taxes and qualified emerging technology
company facilities; to amend the public authorities law, in relation
to certain financial assistance programs; to amend section 15 of chap-
ter 66 of the laws of 1994, amending the public health law, the
general municipal law and the insurance law relating to the financing
of life care communities, in relation to the date of approval of
certificates of authority; to amend the economic development law, in
relation to establishing a high tech marketing program and providing
an appropriation therefor; to amend the New York state urban develop-
ment corporation act, in relation to establishing a new technology
seed fund; and to repeal certain provisions of the public authorities
law relating to the recovery of state governmental costs from institu-
tional development agencies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "Jobs for New York State (JOBS4NY) Act".
S 2. Legislative intent. The legislature hereby determined that it is
necessary to foster economic growth throughout New York state, partic-
ularly given the current economic challenges facing the state and
nation. It is the public policy of the state to offer incentives that
will promote the development of new businesses and the expansion of
existing businesses and stimulate private investment, private business
development and the creation of good paying jobs in all areas of the
state, and particularly in economically distressed areas.
The legislature further recognizes the need to foster the development
and growth of emerging technology industries, by increasing the avail-
ability of seed and early-stage funding to New York state businesses and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16598-01-0
A. 10679 2
entrepreneurs. In addition, the legislature recognizes the need to
attract private venture capital to New York. The legislature hereby
determines that a New York state new technology seed fund should be
established and that existing tax credits designed to support the expan-
sion of emerging technology-based businesses be expanded.
The Legislature further finds that New York's nonprofit employers
provide important services to New York's residents, and that because of
the sunset of the law allowing nonprofits to access tax-exempt bonding
through industrial development agencies, nonprofits are not able to
expand to meet increased service demands due to the recession, or
modernize their plant and equipment to deliver services more efficient-
ly. Therefore, the legislature determines that in order to allow nonpro-
fit agencies to meet service demands, this legislation makes permanent
the authority to allow nonprofits to access low cost tax-exempt bond
financing through industrial development agencies.
The legislature further finds that in the last decade the state has
invested more than two billion dollars in university-sponsored research
and development and in incentive programs for high technology projects,
and as a result has created important competitive strengths in certain
technology sectors, especially in nanotechnology, biosciences, and
cleantech. The legislature determines therefore that in an effort to
leverage these advantages with the global business community, this Act
creates a business marketing public-private partnership to promote these
known advantages.
It is further recognized that it is the public policy of the state to
achieve these goals through the mutual cooperation of all levels of
state and local government and the business community.
Therefore, it is the intent of this legislature that for the benefit
of the people of New York these issues be addressed by enacting this
comprehensive Jobs for New York State (JOBS4NY) Act.
S 3. Subdivision (b) of section 959-b of the general municipal law, as
amended by section 4 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
(b) The commissioner of economic development shall serve as the sole
certification officer for businesses seeking certification as a clean
energy enterprise. The commissioner of economic development, after
consultation with the executive director of the New York state energy
research and development authority, shall promulgate regulations govern-
ing (i) criteria of eligibility for designation of a clean energy enter-
prise, (ii) the application process, and (iii) the certification by the
commissioner of economic development as to the eligibility of business
enterprises for benefits referred to in section nine hundred sixty-six
of this article. A business so certified shall be deemed to be eligible
for such benefits as if such business were located in an investment zone
as defined in paragraph (i) of subdivision (d) of section nine hundred
fifty-seven of this article. No such certification shall be made after
[June thirtieth, two thousand ten] DECEMBER THIRTY-FIRST, TWO THOUSAND
FIFTEEN.
S 4. Subdivision (a) of section 969 of the general municipal law, as
amended by section 10 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
(a) Except as provided in this section, any designation of an area as
an empire zone shall remain in effect during the period beginning on the
date of designation and ending [June thirtieth, two thousand ten] DECEM-
BER 31, 2015.
A. 10679 3
S 5. The tax law is amended by adding a new section 33 to read as
follows:
S 33. EMPIRE ZONE CREDIT FOR REAL PROPERTY TAXES. (A) ALLOWANCE OF
CREDIT. A TAXPAYER WHICH IS A QUALIFYING BUSINESS AS DEFINED IN THIS
SECTION, OR WHICH IS A SOLE PROPRIETOR OF A QUALIFYING BUSINESS OR A
MEMBER OF A PARTNERSHIP WHICH IS A QUALIFYING BUSINESS, AND WHICH IS
SUBJECT TO TAX UNDER ARTICLE NINE, 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 THIS SECTION, FOR ELIGIBLE
REAL PROPERTY TAXES.
(B) AMOUNT OF CREDIT. (1) THE CREDIT SHALL BE EQUAL TO EITHER THE
PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A
PARTNERSHIP) OF TWENTY-FIVE PERCENT OF THE TOTAL WAGES, HEALTH BENEFITS
AND RETIREMENT BENEFITS PAID TO OR ON BEHALF OF NET NEW EMPLOYEES DURING
THE TAXABLE YEAR, PROVIDED HOWEVER, THAT THE TOTAL AMOUNT OF THE CREDIT
SHALL NOT EXCEED TEN THOUSAND DOLLARS FOR EACH SUCH EMPLOYEE. FOR
PURPOSES OF COMPUTING TOTAL WAGES, HEALTH BENEFITS AND RETIREMENT BENE-
FITS, WAGES, HEALTH BENEFITS AND RETIREMENT BENEFITS FOR EACH EMPLOYEE
IN EXCESS OF FORTY THOUSAND DOLLARS SHALL BE EXCLUDED FROM SUCH COMPUTA-
TION.
(2) THE CREDIT SHALL BE AVAILABLE FOR THE TEN TAX YEARS BEGINNING WITH
THE TAX YEAR IN WHICH THE TAXPAYER QUALIFIES AS AN ELIGIBLE BUSINESS
PROJECT.
(C) RECAPTURE OF CREDIT. WHERE A QUALIFIED BUSINESS' ELIGIBLE REAL
PROPERTY TAXES WHICH WERE THE BASIS FOR THE ALLOWANCE OF THE CREDIT
PROVIDED FOR UNDER THIS SECTION ARE SUBSEQUENTLY REDUCED AS A RESULT OF
A FINAL ORDER IN ANY PROCEEDING UNDER ARTICLE SEVEN OF THE REAL PROPERTY
TAX LAW OR OTHER PROVISIONS OF LAW, THE TAXPAYER SHALL ADD BACK, IN THE
TAXABLE YEAR IN WHICH SUCH FINAL ORDER IS ISSUED, THE EXCESS OF (1) THE
AMOUNT OF CREDIT ORIGINALLY ALLOWED FOR A TAXABLE YEAR OVER (2) THE
AMOUNT OF CREDIT DETERMINED BASED UPON THE REDUCED ELIGIBLE REAL PROPER-
TY TAXES. IF SUCH FINAL ORDER REDUCES REAL PROPERTY TAXES FOR MORE THAN
ONE YEAR, THE TAXPAYER MUST DETERMINE HOW MUCH OF SUCH REDUCTION IS
ATTRIBUTABLE TO EACH YEAR COVERED BY SUCH FINAL ORDER AND CALCULATE THE
AMOUNT OF CREDIT WHICH IS REQUIRED BY THIS SUBDIVISION TO BE RECAPTURED
FOR EACH YEAR BASED ON SUCH REDUCTION.
(D) DEFINITIONS. (1) "ELIGIBLE REAL PROPERTY TAXES" MEANS TAXES
IMPOSED ON REAL PROPERTY WHICH IS OWNED BY THE QUALIFIED BUSINESS WHICH
IS THE SITE OF THE QUALIFYING PROJECT, PROVIDED SUCH TAXES ARE PAID BY
THE QUALIFIED BUSINESS WHICH IS THE OWNER OF THE REAL PROPERTY OR ARE
PAID BY A TENANT WHICH EITHER (I) DOES NOT MEET THE ELIGIBILITY REQUIRE-
MENTS UNDER THIS SECTION TO BE A QUALIFIED BUSINESS OR (I) CANNOT TREAT
SUCH PAYMENT AS ELIGIBLE REAL PROPERTY TAXES PURSUANT TO THIS PARAGRAPH
AND SUCH TAXES BECOME A LIEN ON THE REAL PROPERTY DURING A TAXABLE YEAR
IN WHICH THE OWNER OF THE REAL PROPERTY MEETS THE DEFINITION OF A QUALI-
FIED BUSINESS. IN ADDITION, "ELIGIBLE REAL PROPERTY TAXES" SHALL INCLUDE
TAXES PAID BY A QUALIFIED BUSINESS WHICH IS A LESSEE OF REAL PROPERTY IF
THE FOLLOWING CONDITIONS ARE SATISFIED: (1) THE TAXES MUST BE PAID BY
THE LESSEE PURSUANT TO EXPLICIT REQUIREMENTS IN A WRITTEN LEASE EXECUTED
OR AMENDED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION (2) SUCH TAXES
BECOME A LIEN ON THE REAL PROPERTY DURING A TAXABLE YEAR IN WHICH THE
LESSEE OF THE REAL PROPERTY IS A QUALIFIED BUSINESS, AND (3) THE LESSEE
HAS MADE DIRECT PAYMENT OF SUCH TAXES TO THE TAXING AUTHORITY AND HAS
RECEIVED A RECEIPT FOR SUCH PAYMENT OF TAXES FROM THE TAXING AUTHORITY.
IN ADDITION, THE TERM "ELIGIBLE REAL PROPERTY TAXES" INCLUDES PAYMENTS
IN LIEU OF TAXES MADE BY THE QUALIFIED BUSINESS TO THE STATE, A MUNICI-
A. 10679 4
PAL CORPORATION OR A PUBLIC BENEFIT CORPORATION PURSUANT TO A WRITTEN
AGREEMENT ENTERED INTO BETWEEN THE QUALIFIED BUSINESS AND THE STATE,
MUNICIPAL CORPORATION, OR PUBLIC BENEFIT CORPORATION. PROVIDED, HOWEVER,
A PAYMENT IN LIEU OF TAXES MADE BY THE QUALIFIED BUSINESS PURSUANT TO A
WRITTEN AGREEMENT EXECUTED OR AMENDED ON OR AFTER THE EFFECTIVE DATE OF
THIS SECTION SHALL NOT CONSTITUTE ELIGIBLE REAL PROPERTY TAXES IN ANY
TAXABLE YEAR TO THE EXTENT THAT SUCH PAYMENT EXCEEDS THE PRODUCT OF (A)
THE GREATER OF (I) THE BASIS FOR FEDERAL INCOME TAX PURPOSES, CALCULATED
WITHOUT REGARD TO DEPRECIATION, DETERMINED AS OF THE EFFECTIVE DATE OF
THIS SECTION OF REAL PROPERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPO-
NENTS OF BUILDINGS, THAT COMPRISES THE QUALIFIED BUSINESS FACILITY, AND
PROVIDED THAT IF SUCH BASIS IS FURTHER ADJUSTED OR REDUCED PURSUANT TO
ANY PROVISION OF THE INTERNAL REVENUE CODE, THE QUALIFIED BUSINESS MAY
PETITION THE DEPARTMENT, THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE
OFFICE OF REAL PROPERTY SERVICES TO DISREGARD SUCH REDUCTION OR ADJUST-
MENT FOR THE PURPOSE OF THIS SUBDIVISION OR (II) THE BASIS FOR FEDERAL
INCOME TAX PURPOSES OF SUCH REAL PROPERTY DESCRIBED IN CLAUSE (I) OF
THIS SUBPARAGRAPH, CALCULATED WITHOUT REGARD TO DEPRECIATION, ON THE
LAST DAY OF THE TAXABLE YEAR, AND PROVIDED THAT IF SUCH BASIS IS FURTHER
ADJUSTED OR REDUCED PURSUANT TO ANY PROVISION OF THE INTERNAL REVENUE
CODE, THE QUALIFIED BUSINESS MAY PETITION THE DEPARTMENT, THE DEPARTMENT
OF ECONOMIC DEVELOPMENT AND THE OFFICE OF REAL PROPERTY SERVICES TO
DISREGARD SUCH REDUCTION OR ADJUSTMENT FOR THE PURPOSE OF THIS SUBDIVI-
SION; AND (B) THE ESTIMATED EFFECTIVE FULL VALUE TAX RATE WITHIN THE
COUNTY IN WHICH SUCH PROPERTY IS LOCATED, AS MOST RECENTLY REPORTED TO
THE COMMISSIONER BY THE SECRETARY OF THE STATE BOARD OF REAL PROPERTY
SERVICES, OR HIS OR HER DESIGNEE. THE STATE BOARD SHALL ANNUALLY CALCU-
LATE ESTIMATED EFFECTIVE FULL VALUE TAX RATES WITHIN EACH COUNTY FOR
THIS PURPOSE BASED UPON THE MOST CURRENT INFORMATION AVAILABLE TO IT IN
RELATION TO COUNTY, CITY, TOWN, VILLAGE AND SCHOOL DISTRICT TAXES.
(2) "QUALIFYING BUSINESS PROJECT" MEANS:
(I) A MANUFACTURER FACILITY THAT CREATES FIFTY NEW JOBS OR MAKES A
QUALIFYING CAPITAL INVESTMENT;
(II) A WAREHOUSE AND DISTRIBUTION FACILITY THAT CREATES AT LEAST ONE
HUNDRED NEW JOBS;
(III) A RESEARCH AND DEVELOPMENT FACILITY THAT CREATES AT LEAST FIFTY
NEW JOBS;
(IV) A FINANCIAL SERVICE FACILITY THAT CREATES ONE HUNDRED NEW JOBS;
(V) A TOURISM DESTINATION PROJECT THAT CREATES AT LEAST ONE HUNDRED
NEW JOBS; OR
(VI) A BUSINESS FACILITY WITHIN AN INDUSTRY WITH SIGNIFICANT POTENTIAL
FOR PRIVATE-SECTOR ECONOMIC GROWTH AND DEVELOPMENT IN NEW YORK STATE AS
ESTABLISHED BY THE COMMISSIONER IN REGULATIONS AND THAT CREATES AT LEAST
FIFTY NEW JOBS.
(3) "QUALIFYING CAPITAL INVESTMENT" MEANS AN INVESTMENT CONSISTING OF
TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
INGS AND STRUCTURAL COMPONENTS OF BUILDINGS, DESCRIBED IN SUBPARAGRAPHS
(I), (II), (III), (IV) AND CLAUSES (A) AND (C) OF SUBPARAGRAPH (V) OF
PARAGRAPH (B) OF SUBDIVISION TWELVE-B OF SECTION TWO HUNDRED TEN OF THIS
CHAPTER RELATED TO THE CONSTRUCTION, EXPANSION OR REHABILITATION OF A
FACILITY, THE BASIS OF WHICH FOR FEDERAL INCOME TAX PURPOSES WILL EQUAL
OR EXCEED THE GREATER OF TEN MILLION DOLLARS OR TWENTY-FIVE PERCENT OF
THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES, DETERMINED FOR
THE TAX YEAR IMMEDIATELY PRECEEDING THE YEAR IN WHICH THE CAPITAL
INVESTMENT IS MADE, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF
BUILDINGS, OWNED BY THE TAXPAYER AT THE SITE OR (II) THE PRODUCT OF THE
A. 10679 5
COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF SUCH REAL PROPER-
TY DESCRIBED IN CLAUSE (I) OF THIS SUBPARAGRAPH DETERMINED ON FOR THE
TAX YEAR IMMEDIATELY PRECEEDING THE YEAR IN WHICH THE CAPITAL INVESTMENT
IS MADE AND THE PERCENTAGE OF SUCH REAL PROPERTY DESCRIBED IN CLAUSE (I)
OF SUBPARAGRAPH (A) OF THIS PARAGRAPH WHICH IS PHYSICALLY OCCUPIED AND
USED BY THE TAXPAYER OR BY A RELATED PERSON TO THE TAXPAYER, AS THE TERM
"RELATED PERSON" IS DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH THREE OF
SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVEN-
UE CODE.
(4) "MANUFACTURER" MEANS A TAXPAYER WHICH DURING THE TAXABLE YEAR IS
PRINCIPALLY ENGAGED IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROC-
ESSING INCLUDING FOOD PROCESSING, ASSEMBLING, REFINING, OR A TAXPAYER
WHICH IS DEFINED AS A QUALIFIED EMERGING TECHNOLOGY COMPANY UNDER PARA-
GRAPH (C) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED TWO-E OF THE
PUBLIC AUTHORITIES LAW. HOWEVER, THE GENERATION AND DISTRIBUTION OF
ELECTRICITY, THE DISTRIBUTION OF NATURAL GAS, AND THE PRODUCTION OF
STEAM ASSOCIATED WITH THE GENERATION OF ELECTRICITY SHALL NOT BE QUALI-
FYING ACTIVITIES FOR A MANUFACTURER UNDER THIS SUBPARAGRAPH. MOREOVER,
THE COMBINED GROUP SHALL BE CONSIDERED A "MANUFACTURER" FOR PURPOSES OF
THIS SUBPARAGRAPH ONLY IF THE COMBINED GROUP DURING THE TAXABLE YEAR IS
PRINCIPALLY ENGAGED IN THE ACTIVITIES SET FORTH IN THIS PARAGRAPH, OR
ANY COMBINATION THEREOF. A TAXPAYER OR A COMBINED GROUP SHALL BE "PRIN-
CIPALLY ENGAGED" IN ACTIVITIES DESCRIBED ABOVE IF, DURING THE TAXABLE
YEAR, MORE THAN FIFTY PERCENT OF THE GROSS RECEIPTS OF THE TAXPAYER OR
COMBINED GROUP, RESPECTIVELY, ARE DERIVED FROM RECEIPTS FROM THE SALE OF
GOODS PRODUCED BY SUCH ACTIVITIES. IN COMPUTING A COMBINED GROUP'S GROSS
RECEIPTS, INTERCORPORATE RECEIPTS SHALL BE ELIMINATED.
(5) "NET NEW EMPLOYEES" MEANS THE NUMBER OF NET NEW EMPLOYEES FOR A
QUALIFIED BUSINESS IS EQUAL TO THE EXCESS OF THE QUALIFIED BUSINESS'
EMPLOYMENT NUMBER AT THE FACILITY WHERE THE QUALIFIED INVESTMENT IS
MADE, OVER THE QUALIFIED BUSINESSES EMPLOYMENT AT THE FACILITY FOR THE
PRECEEDING TAX YEAR.
(6) "TAX BENEFIT PERIOD" MEANS, FOR THE PURPOSES OF ARTICLES NINE,
NINE-A, TWENTY-TWO, THIRTY-TWO AND THIRTY-THREE OF THIS CHAPTER, THE
FIRST TEN TAXABLE YEARS AFTER THE YEAR IN WHICH A TAXPAYER MEETS THE
CRITERIA TO BECOME A QUALIFIED BUSINESS PROJECT, PROVIDED THAT A TAXPAY-
ER THAT QUALIFIES BASED ON A QUALIFIED CAPITAL INVESTMENT, THE TAX BENE-
FIT PERIOD SHALL BE THE TEN TAXABLE YEARS STARTING WITH THE TAXABLE YEAR
IN WHICH PROPERTY COMPRISING THE QUALIFYING CAPITAL INVESTMENT IS FIRST
PLACED IN SERVICE, AND PROVIDED FURTHER THE TAX BENEFIT PERIOD MEANS
ONLY THE TAX YEARS WITHIN THE BUSINESS TAX BENEFIT PERIOD FOR WHICH THE
TAXPAYER CONTINUES TO MEET ANY APPLICABLE EMPLOYMENT INCREASE CRITERIA
SET FORTH IN SECTION THIRTY-FOUR OF THIS ARTICLE.
(E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE 9: SECTION 187-O.
(2) ARTICLE 9-A: SECTION 210: SUBDIVISION 41.
(3) ARTICLE 22: SECTION 606: SUBSECTIONS (I) AND (QQ).
(4) ARTICLE 22: SECTION 606: SUBSECTION (I): PARAGRAPH (B): CLAUSE
(XXXI).
(5) ARTICLE 32: SECTION 1456: SUBSECTION (U).
(6) ARTICLE 33: SECTION 1511: SUBDIVISION (Y).
S 6. The tax law is amended by adding a new section 187-o to read as
follows:
S 187-O. EMPIRE ZONE CREDIT FOR REAL PROPERTY TAXES. 1. ALLOWANCE OF
CREDIT. A TAXPAYER WHICH IS A QUALIFIED PROJECT SHALL BE ALLOWED A CRED-
A. 10679 6
IT FOR ELIGIBLE REAL PROPERTY TAXES, TO BE COMPUTED AS PROVIDED IN
SUBDIVISION (B) OF SECTION THIRTY-THREE OF THIS CHAPTER, AGAINST THE TAX
IMPOSED BY THIS ARTICLE.
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 HIGHER OF THE AMOUNT PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER. 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 7. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
41. EMPIRE ZONE CREDIT FOR REAL PROPERTY TAXES. (A) ALLOWANCE OF CRED-
IT. A TAXPAYER WHICH IS A QUALIFIED PROJECT SHALL BE ALLOWED A CREDIT
FOR ELIGIBLE REAL PROPERTY TAXES, TO BE COMPUTED AS PROVIDED IN SUBDIVI-
SION (B) OF SECTION THIRTY-THREE OF THIS CHAPTER, AGAINST THE TAX
IMPOSED BY THIS ARTICLE.
(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 AMOUNT 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 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 8. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xxxi) to read as
follows:
(XXXI) EMPIRE ZONE CREDIT FOR AMOUNT OF CREDIT UNDER
REAL PROPERTY TAXES SUBDIVISION FIFTY-ONE
UNDER SUBSECTION (QQ) OF SECTION TWO HUNDRED
TEN
S 9. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
(QQ) EMPIRE ZONE CREDIT FOR REAL PROPERTY TAXES. (1) ALLOWANCE OF
CREDIT. A TAXPAYER WHICH IS A QUALIFIED PROJECT SHALL BE ALLOWED A CRED-
IT FOR ELIGIBLE REAL PROPERTY TAXES, TO BE COMPUTED AS PROVIDED IN
SUBDIVISION (B) OF SECTION THIRTY-THREE OF THIS CHAPTER, AGAINST THE TAX
IMPOSED BY THIS ARTICLE.
(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 HIGHER OF THE AMOUNT PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER. 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
A. 10679 7
OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 10. Section 1456 of the tax law is amended by adding a new
subsection (u) to read as follows:
(U) EMPIRE ZONE CREDIT FOR REAL PROPERTY TAXES. (1) ALLOWANCE OF CRED-
IT. A TAXPAYER WHICH IS A QUALIFIED PROJECT SHALL BE ALLOWED A CREDIT
FOR ELIGIBLE REAL PROPERTY TAXES, TO BE COMPUTED AS PROVIDED IN SUBDIVI-
SION (B) OF SECTION THIRTY-THREE OF THIS CHAPTER, AGAINST THE TAX
IMPOSED BY THIS ARTICLE.
(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 HIGHER OF THE AMOUNT PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER. 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 11. Section 1511 of the tax law is amended by adding a new subdivi-
sion (y) to read as follows:
(Y) EMPIRE ZONE CREDIT FOR REAL PROPERTY TAXES. (1) ALLOWANCE OF CRED-
IT. A TAXPAYER WHICH IS A QUALIFIED PROJECT SHALL BE ALLOWED A CREDIT
FOR ELIGIBLE REAL PROPERTY TAXES, TO BE COMPUTED AS PROVIDED IN SUBDIVI-
SION (B) OF SECTION THIRTY-THREE OF THIS CHAPTER, AGAINST THE TAX
IMPOSED BY THIS ARTICLE.
(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 HIGHER OF THE AMOUNT PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER. 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 12. The tax law is amended by adding a new section 34 to read as
follows:
S 34. TAX REDUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WHICH
IS OR OWNS A QUALIFIED BUSINESS PROJECT, OR WHICH IS A SOLE PROPRIETOR
OF OR OWNS A QUALIFIED BUSINESS PROJECT OR A MEMBER OF A PARTNERSHIP
WHICH IS A OR OWNS A QUALIFIED BUSINESS PROJECT, AND WHICH IS SUBJECT TO
TAX UNDER ARTICLE NINE, 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 (G) OF THIS SECTION, TO BE
COMPUTED AS HEREINAFTER PROVIDED.
(B) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT
OF:
(1) THE BENEFIT PERIOD FACTOR;
(2) THE EMPLOYMENT INCREASE FACTOR OR THE CAPITAL INCREASE FACTOR IF
THE TAXPAYER HAS MADE A QUALIFYING CAPITAL INVESTMENT;
(3) THE ZONE ALLOCATION FACTOR; AND
(4) THE TAX FACTOR.
A. 10679 8
(C) BENEFIT PERIOD FACTOR. THE BENEFIT PERIOD FACTOR FOR THE TAXABLE
YEAR SHALL BE AS PRESCRIBED IN SUBDIVISION (C) OF SECTION FIFTEEN OF
THIS ARTICLE.
(D)(1) EMPLOYMENT INCREASE FACTOR. THE EMPLOYMENT INCREASE FACTOR FOR
THE TAXABLE YEAR SHALL BE:
NET NEW EMPLOYEES: EMPLOYMENT INCREASE FACTOR:
1 TO 10 0.25
11 TO 49 0.5
50 TO 75 0.75
76 AND ABOVE THE AMOUNT, NOT TO EXCEED 1.0, OF NEW
EMPLOYEES DIVIDED BY 100
(2) CAPITAL INCREASE FACTOR. THE CAPITAL INCREASE FACTOR REPRESENTS
THE VALUE OF THE QUALIFYING CAPITAL INVESTMENT AS DEFINED IN SECTION
THIRTY-THREE OF THIS ARTICLE.
PERCENT INCREASE: EMPLOYMENT INCREASE FACTOR:
25 TO 50 0.5
50 TO 75 0.75
76 AND ABOVE 1.0
(E) ALLOCATION FACTOR. THE ALLOCATION FACTOR SHALL BE THE PERCENTAGE
REPRESENTING THE TAXPAYER'S ECONOMIC PRESENCE AT THE SITE CONSTITUTING A
QUALIFIED BUSINESS PROJECT. THIS PERCENTAGE SHALL BE COMPUTED BY:
(1) ASCERTAINING THE PERCENTAGE WHICH THE AVERAGE VALUE OF THE TAXPAY-
ER'S REAL AND TANGIBLE PERSONAL PROPERTY, WHETHER OWNED OR RENTED TO IT,
AT THE SITE WHICH QUALIFIES AS A QUALIFYING BUSINESS PROJECT DURING THE
PERIOD COVERED BY THE TAXPAYER'S REPORT OR RETURN BEARS TO THE AVERAGE
VALUE OF THE TAXPAYER'S REAL AND TANGIBLE PERSONAL PROPERTY, WHETHER
OWNED OR RENTED TO IT, WITHIN THE STATE DURING SUCH PERIOD; PROVIDED
THAT THE TERM "VALUE OF THE TAXPAYER'S REAL AND TANGIBLE PERSONAL PROP-
ERTY" SHALL HAVE THE SAME MEANING AS SUCH TERM HAS IN SUBPARAGRAPH ONE
OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION TWO HUNDRED TEN OF THIS
CHAPTER; AND
(2) ASCERTAINING THE PERCENTAGE OF THE TOTAL WAGES, SALARIES AND OTHER
PERSONAL SERVICE COMPENSATION, SIMILARLY COMPUTED, DURING SUCH PERIOD OF
EMPLOYEES, EXCEPT GENERAL EXECUTIVE OFFICERS, AT THE SITE WHICH QUALI-
FIES AS A QUALIFYING BUSINESS PROJECT TO THE TOTAL WAGES, SALARIES AND
OTHER PERSONAL SERVICE COMPENSATION, SIMILARLY COMPUTED, DURING SUCH
PERIOD, OF ALL THE TAXPAYER'S EMPLOYEES WITHIN THE STATE, EXCEPT GENERAL
EXECUTIVE OFFICERS; AND
(3) ADDING TOGETHER THE PERCENTAGES SO DETERMINED AND DIVIDING THE
RESULT BY THE NUMBER OF PERCENTAGES.
FOR THE PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER, REFERENCES IN
THIS SUBDIVISION TO PROPERTY, WAGES, SALARIES AND OTHER PERSONAL SERVICE
COMPENSATION SHALL BE DEEMED TO BE REFERENCES TO SUCH ITEMS CONNECTED
WITH THE CONDUCT OF A BUSINESS.
(F) TAX FACTOR. (1) GENERAL. THE TAX FACTOR SHALL BE, IN THE CASE OF
ARTICLE NINE-A OF THIS CHAPTER, THE LARGER OF THE AMOUNTS OF TAX DETER-
MINED FOR THE TAXABLE YEAR UNDER PARAGRAPHS (A) AND (C) OF SUBDIVISION
ONE OF SECTION TWO HUNDRED TEN OF SUCH ARTICLE. THE TAX FACTOR SHALL
BE, IN THE CASE OF ARTICLE TWENTY-TWO OF THIS CHAPTER, THE TAX DETER-
MINED FOR THE TAXABLE YEAR UNDER SUBSECTIONS (A) THROUGH (D) OF SECTION
SIX HUNDRED ONE OF SUCH ARTICLE. THE TAX FACTOR SHALL BE, IN THE CASE OF
ARTICLE THIRTY-TWO OF THIS CHAPTER, THE LARGER OF THE AMOUNTS OF TAX
DETERMINED FOR THE TAXABLE YEAR UNDER SUBSECTION (A) AND PARAGRAPH TWO
OF SUBSECTION (B) OF SECTION FOURTEEN HUNDRED FIFTY-FIVE OF SUCH ARTI-
CLE. THE TAX FACTOR SHALL BE, IN THE CASE OF ARTICLE THIRTY-THREE OF
THIS CHAPTER, THE LARGER OF THE AMOUNTS OF TAX DETERMINED FOR THE TAXA-
A. 10679 9
BLE YEAR UNDER PARAGRAPHS ONE AND THREE OF SUBDIVISION (A) OF SECTION
FIFTEEN HUNDRED TWO OF SUCH ARTICLE.
(2) SOLE PROPRIETORS, PARTNERS AND S CORPORATION SHAREHOLDERS. (A)
WHERE THE TAXPAYER IS A SOLE PROPRIETOR OF A QUALIFIED BUSINESS PROJECT,
THE TAXPAYER'S TAX FACTOR SHALL BE THAT PORTION OF THE AMOUNT DETERMINED
IN PARAGRAPH ONE OF THIS SUBDIVISION WHICH IS ATTRIBUTABLE TO THE INCOME
OF THE QUALIFIED BUSINESS PROJECT. SUCH ATTRIBUTION SHALL BE MADE IN
ACCORDANCE WITH THE RATIO OF THE TAXPAYER'S INCOME FROM THE QUALIFIED
BUSINESS PROJECT ALLOCATED WITHIN THE STATE, ENTERING INTO NEW YORK
ADJUSTED GROSS INCOME, TO THE TAXPAYER'S NEW YORK ADJUSTED GROSS INCOME,
OR IN ACCORDANCE WITH SUCH OTHER METHODS AS THE COMMISSIONER MAY
PRESCRIBE AS PROVIDING AN APPORTIONMENT WHICH REASONABLY REFLECTS THE
PORTION OF THE TAXPAYER'S TAX ATTRIBUTABLE TO THE INCOME OF THE QUALI-
FIED BUSINESS PROJECT. IN NO EVENT MAY THE RATIO SO DETERMINE EXCEED
1.0.
(B)(I) WHERE THE TAXPAYER IS A MEMBER OF A PARTNERSHIP WHICH IS A
QUALIFIED BUSINESS PROJECT, THE TAXPAYER'S TAX FACTOR SHALL BE THAT
PORTION OF THE AMOUNT DETERMINED IN PARAGRAPH ONE OF THIS SUBDIVISION
WHICH IS ATTRIBUTABLE TO THE INCOME OF THE PARTNERSHIP. SUCH ATTRIBUTION
SHALL BE MADE IN ACCORDANCE WITH THE RATIO OF THE PARTNER'S INCOME FROM
THE PARTNERSHIP ALLOCATED WITHIN THE STATE TO THE PARTNER'S ENTIRE
INCOME, OR IN ACCORDANCE WITH SUCH OTHER METHODS AS THE COMMISSIONER MAY
PRESCRIBE AS PROVIDING AN APPORTIONMENT WHICH REASONABLY REFLECTS THE
PORTION OF THE PARTNER'S TAX ATTRIBUTABLE TO THE INCOME OF THE PARTNER-
SHIP. IN NO EVENT MAY THE RATIO SO DETERMINED EXCEED 1.0.
(II) FOR PURPOSES OF DETERMINING THE AMOUNT OF CREDIT TO BE CLAIMED BY
A TAXPAYER PURSUANT TO THIS SECTION AGAINST THE TAXES DUE UNDER ARTICLE
NINE, NINE-A, THIRTY-TWO OR THIRTY-THREE OF THIS CHAPTER, THE TERM
"PARTNER'S INCOME FROM THE PARTNERSHIP" MEANS PARTNERSHIP ITEMS OF
INCOME, GAIN, LOSS AND DEDUCTION, AND NEW YORK MODIFICATIONS THERETO,
ENTERING INTO ENTIRE NET INCOME, MINIMUM TAXABLE INCOME, ALTERNATIVE
ENTIRE NET INCOME OR ENTIRE NET INCOME PLUS COMPENSATION AND THE TERM
"PARTNER'S ENTIRE INCOME" MEANS ENTIRE NET INCOME, MINIMUM TAXABLE
INCOME, ALTERNATIVE ENTIRE NET INCOME OR ENTIRE NET INCOME PLUS COMPEN-
SATION, ALLOCATED WITHIN THE STATE. FOR PURPOSES OF DETERMINING THE
AMOUNT OF CREDIT TO BE CLAIMED BY A TAXPAYER PURSUANT TO THIS SECTION
AGAINST THE TAXES DUE UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER, THE TERM
"PARTNER'S INCOME FROM THE PARTNERSHIP" MEANS PARTNERSHIP ITEMS OF
INCOME, GAIN, LOSS AND DEDUCTION, AND NEW YORK MODIFICATIONS THERETO,
ENTERING INTO NEW YORK ADJUSTED GROSS INCOME, AND THE TERM "PARTNER'S
ENTIRE INCOME" MEANS NEW YORK ADJUSTED GROSS INCOME.
(C) WHERE THE TAXPAYER IS A SHAREHOLDER OF A NEW YORK S CORPORATION
WHICH IS A QUALIFIED BUSINESS PROJECT, THE SHAREHOLDER'S TAX FACTOR
SHALL BE THAT PORTION OF THE AMOUNT DETERMINED IN PARAGRAPH ONE OF THIS
SUBDIVISION WHICH IS ATTRIBUTABLE TO THE INCOME OF THE S CORPORATION.
SUCH ATTRIBUTION SHALL BE MADE IN ACCORDANCE WITH THE RATIO OF THE
SHAREHOLDER'S INCOME FROM THE S CORPORATION ALLOCATED WITHIN THE STATE,
ENTERING INTO NEW YORK ADJUSTED GROSS INCOME, TO THE SHAREHOLDER'S NEW
YORK ADJUSTED GROSS INCOME, OR IN ACCORDANCE WITH SUCH OTHER METHODS AS
THE COMMISSIONER MAY PRESCRIBE AS PROVIDING AN APPORTIONMENT WHICH
REASONABLY REFLECTS THE PORTION OF THE SHAREHOLDER'S TAX ATTRIBUTABLE TO
THE INCOME OF THE QUALIFIED BUSINESS PROJECT. IN NO EVENT MAY THE RATIO
SO DETERMINED EXCEED 1.0.
(3) COMBINED RETURNS OR REPORTS. (A) WHERE THE TAXPAYER IS A QUALIFIED
BUSINESS PROJECT AND IS REQUIRED OR PERMITTED TO MAKE A RETURN OR REPORT
ON A COMBINED BASIS UNDER ARTICLE NINE, NINE-A, THIRTY-TWO OR
A. 10679 10
THIRTY-THREE OF THIS CHAPTER, THE TAXPAYER'S TAX FACTOR SHALL BE THE
AMOUNT DETERMINED IN PARAGRAPH ONE OF THIS SUBDIVISION WHICH IS ATTRIB-
UTABLE TO THE INCOME OF THE QUALIFIED BUSINESS PROJECT. SUCH ATTRI-
BUTION SHALL BE MADE IN ACCORDANCE WITH THE RATIO OF THE QUALIFIED BUSI-
NESS PROJECT INCOME ALLOCATED WITHIN THE STATE TO THE COMBINED GROUP'S
INCOME, OR IN ACCORDANCE WITH SUCH OTHER METHODS AS THE COMMISSIONER MAY
PRESCRIBE AS PROVIDING AN APPORTIONMENT WHICH REASONABLY REFLECTS THE
PORTION OF THE COMBINED GROUP'S TAX ATTRIBUTABLE TO THE INCOME OF THE
QUALIFIED BUSINESS PROJECT. IN NO EVENT MAY THE RATIO SO DETERMINED
EXCEED 1.0.
(B) THE TERM "INCOME OF THE QUALIFIED BUSINESS PROJECT" MEANS ENTIRE
NET INCOME, MINIMUM TAXABLE INCOME, ALTERNATIVE ENTIRE NET INCOME OR
ENTIRE NET INCOME PLUS COMPENSATION CALCULATED AS IF THE TAXPAYER WAS
FILING SEPARATELY AND THE TERM "COMBINED GROUP'S INCOME" MEANS ENTIRE
NET INCOME, MINIMUM TAXABLE INCOME, ALTERNATIVE ENTIRE NET INCOME OR
ENTIRE NET INCOME PLUS COMPENSATION AS SHOWN ON THE COMBINED RETURN OR
REPORT, ALLOCATED WITHIN THE STATE.
(4) IF THE AMOUNT DETERMINED IN PARAGRAPH ONE OF THIS SUBDIVISION IS
LESS THAN ZERO, A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS
SECTION.
(G) 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 28.
(2) ARTICLE 22: SECTION 606: SUBSECTIONS (I) AND (CC).
(3) ARTICLE 32: SECTION 1456: SUBSECTION (P).
(4) ARTICLE 33: SECTION 1511: SUBDIVISION (S).
S 13. The tax law is amended by adding a new section 35 to read as
follows:
S 35. EMPIRE ZONE ITC. 1. A TAXPAYER THAT MEETS THE DEFINITION OF A
QUALIFIED BUSINESS PROJECT PURSUANT TO SECTION 33 OF THIS ARTICLE SHALL
BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREIN PROVIDED, AGAINST THE TAX
IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE TEN PERCENT
OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE
PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILDINGS AND
STRUCTURAL COMPONENTS OF BUILDINGS, DESCRIBED IN SUBDIVISION TWO OF THIS
SECTION, WHICH IS LOCATED AT A FACILITY THAT QUALIFIES AS A QUALIFIED
BUSINESS PROJECT BUT ONLY IF THE ACQUISITION, CONSTRUCTION, RECON-
STRUCTION OR ERECTION OF SUCH PROPERTY OCCURRED OR WAS COMMENCED ON OR
AFTER THE EFFECTIVE DATE OF THIS ARTICLE PROVIDED THAT THE AMOUNT OF THE
CREDIT SHALL BE TWELVE PERCENT IF THE TAXPAYER MAKES A QUALIFYING CAPI-
TAL INVESTMENT.
2. A CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO
TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
INGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH (A) ARE DEPRECIABLE
PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE
CODE, (B) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (C) ARE ACQUIRED BY
PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D) OF THE
INTERNAL REVENUE CODE, (D) HAVE A SITUS AT A FACILITY THAT QUALIFIES AS
A QUALIFIED BUSINESS PROJECT AND (E) ARE (I) PRINCIPALLY USED BY THE
TAXPAYER IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING INCLUD-
ING FOOD PROCESSING, ASSEMBLING, (II) MEET THE DEFINITION OF A QUALIFIED
EMERGING TECHNOLOGY COMPANY UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF
SECTION THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC AUTHORITIES OR (III)
RESEARCH AND DEVELOPMENT PROPERTY. FOR THE PURPOSE OF THIS SUBDIVISION,
THE TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY. FOR PURPOSES OF THIS
PARAGRAPH, "MANUFACTURING" SHALL MEAN THE PROCESS OF WORKING RAW MATERI-
A. 10679 11
ALS INTO WARES SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY
OR NEW COMBINATIONS TO MATTER WHICH ALREADY HAS GONE THROUGH SOME ARTI-
FICIAL PROCESS BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND OTHER
SIMILAR EQUIPMENT. PROPERTY USED IN THE PRODUCTION OF GOODS SHALL
INCLUDE MACHINERY, EQUIPMENT OR OTHER TANGIBLE PROPERTY WHICH IS PRINCI-
PALLY USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR
OTHER TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND
SHALL INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERATION, INCLUDING
STORAGE OF MATERIAL TO BE USED IN PRODUCTION AND OF THE PRODUCTS THAT
ARE PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "RESEARCH AND
DEVELOPMENT PROPERTY" SHALL HAVE THE MEANINGS ASCRIBED THERETO BY CLAUSE
(B) OF SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION TWELVE OF
SECTION TWO HUNDRED TEN OF THIS CHAPTER, AND THE PROVISIONS OF SUBPARA-
GRAPH (III) OF SUCH PARAGRAPH (B) SHALL APPLY.
3. A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVISION
WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROP-
ERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
IT LEASES TO ANY OTHER PERSON OR CORPORATION.
4. 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
SECTION TWO HUNDRED TEN OF THIS CHAPTER. PROVIDED, HOWEVER, THAT IF THE
AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, MAY ELECT, ON ITS REPORT FOR ITS TAXABLE
YEAR WITH RESPECT TO WHICH SUCH CREDIT IS ALLOWED, TO TREAT FIFTY
PERCENT OF THE AMOUNT OF SUCH CARRYOVER AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE
THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, SUCH OWNER SHALL
BE ALLOWED SUCH REFUND FOR A MAXIMUM OF TEN TAXABLE YEARS WITH RESPECT
TO SUCH QUALIFIED INVESTMENT PROJECT AND EACH SIGNIFICANT CAPITAL
INVESTMENT PROJECT, STARTING WITH THE FIRST TAXABLE YEAR IN WHICH PROP-
ERTY COMPRISING SUCH PROJECT IS PLACED IN SERVICE. PROVIDED, FURTHER,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
5. (A) WITH RESPECT TO PROPERTY WHICH IS DEPRECIABLE PURSUANT TO
SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE BUT IS NOT
SUBJECT TO THE PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF SUCH
CODE AND WHICH IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT IS TO BE TAKEN, THE
AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF THE CREDIT PROVIDED FOR IN
THIS SUBDIVISION WHICH REPRESENTS THE RATIO WHICH THE MONTHS OF QUALI-
FIED USE BEAR TO THE MONTHS OF USEFUL LIFE. IF PROPERTY ON WHICH CREDIT
HAS BEEN TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF ITS USEFUL LIFE, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND
THE CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF
DISPOSITION. PROVIDED, HOWEVER, IF SUCH PROPERTY IS DISPOSED OF OR CEAS-
ES TO BE IN QUALIFIED USE AFTER IT HAS BEEN IN QUALIFIED USE FOR MORE
THAN TWELVE CONSECUTIVE YEARS, IT SHALL NOT BE NECESSARY TO ADD BACK THE
CREDIT AS PROVIDED IN THIS PARAGRAPH. THE AMOUNT OF CREDIT ALLOWED FOR
ACTUAL USE SHALL BE DETERMINED BY MULTIPLYING THE ORIGINAL CREDIT BY THE
RATIO WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE MONTHS OF USEFUL
LIFE. FOR PURPOSES OF THIS PARAGRAPH, USEFUL LIFE OF PROPERTY SHALL BE
THE SAME AS THE TAXPAYER USES FOR DEPRECIATION PURPOSES WHEN COMPUTING
HIS FEDERAL INCOME TAX LIABILITY.
A. 10679 12
(B) EXCEPT WITH RESPECT TO THAT PROPERTY TO WHICH PARAGRAPH (D) OF
THIS SUBDIVISION APPLIES, WITH RESPECT TO THREE-YEAR PROPERTY, AS
DEFINED IN SUBSECTION (E) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE
INTERNAL REVENUE CODE, WHICH IS DISPOSED OF OR CEASES TO BE IN QUALIFIED
USE PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT IS TO BE
TAKEN, THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF THE CREDIT
PROVIDED FOR IN THIS SUBDIVISION WHICH REPRESENTS THE RATIO WHICH THE
MONTHS OF QUALIFIED USE BEAR TO THIRTY-SIX. IF PROPERTY ON WHICH CREDIT
HAS BEEN TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF THIRTY-SIX MONTHS, THE DIFFERENCE BETWEEN THE CREDIT TAKEN
AND THE CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF
DISPOSITION. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL USE SHALL BE DETER-
MINED BY MULTIPLYING THE ORIGINAL CREDIT BY THE RATIO WHICH THE MONTHS
OF QUALIFIED USE BEAR TO THIRTY-SIX.
(C) EXCEPT WITH RESPECT TO THAT PROPERTY TO WHICH PARAGRAPH (D) OF
THIS SUBDIVISION APPLIES, WITH RESPECT TO PROPERTY SUBJECT TO THE
PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE
CODE OTHER THAN THREE-YEAR PROPERTY AS DEFINED IN SUBSECTION (E) OF SUCH
SECTION ONE HUNDRED SIXTY-EIGHT WHICH IS DISPOSED OF OR CEASES TO BE IN
QUALIFIED USE PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT
IS TO BE TAKEN, THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF THE
CREDIT PROVIDED FOR IN THIS SUBDIVISION WHICH REPRESENTS THE RATIO WHICH
THE MONTHS OF QUALIFIED USE BEAR TO SIXTY. IF PROPERTY ON WHICH CREDIT
HAS BEEN TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF SIXTY MONTHS, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND THE
CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF DISPOSI-
TION. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL USE SHALL BE DETERMINED BY
MULTIPLYING THE ORIGINAL CREDIT BY THE RATIO WHICH THE MONTHS OF QUALI-
FIED USE BEAR TO SIXTY.
(D) WITH RESPECT TO ANY PROPERTY TO WHICH SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE APPLIES, WHICH IS A BUILDING OR
A STRUCTURAL COMPONENT OF A BUILDING AND WHICH IS DISPOSED OF OR CEASES
TO BE IN QUALIFIED USE PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE
CREDIT IS TO BE TAKEN, THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF
THE CREDIT PROVIDED FOR IN THIS SUBDIVISION WHICH REPRESENTS THE RATIO
WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE TOTAL NUMBER OF MONTHS
OVER WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE INTER-
NAL REVENUE CODE. IF PROPERTY ON WHICH CREDIT HAS BEEN TAKEN IS DISPOSED
OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO THE END OF THE PERIOD OVER
WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE INTERNAL
REVENUE CODE, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND THE CREDIT
ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF DISPOSITION.
PROVIDED, HOWEVER, IF SUCH PROPERTY IS DISPOSED OF OR CEASES TO BE IN
QUALIFIED USE AFTER IT HAS BEEN IN QUALIFIED USE FOR MORE THAN TWELVE
CONSECUTIVE YEARS, IT SHALL NOT BE NECESSARY TO ADD BACK THE CREDIT AS
PROVIDED IN THIS PARAGRAPH. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL USE
SHALL BE DETERMINED BY MULTIPLYING THE ORIGINAL CREDIT BY THE RATIO
WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE TOTAL NUMBER OF MONTHS
OVER WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE INTER-
NAL REVENUE CODE.
(E) FOR PURPOSES OF THIS PARAGRAPH, DISPOSAL OR CESSATION OF QUALIFIED
USE SHALL NOT BE DEEMED TO HAVE OCCURRED SOLELY BY REASON OF THE TERMI-
NATION OR EXPIRATION OF AN EMPIRE ZONE'S DESIGNATION AS SUCH.
(F) EXCEPT AS PROVIDED IN THIS PARAGRAPH, THIS PARAGRAPH SHALL NOT
APPLY TO A CREDIT ALLOWED BY THIS SUBDIVISION TO A TAXPAYER THAT IS A
PARTNER IN A PARTNERSHIP IN THE CASE OF MANUFACTURING PROPERTY;
A. 10679 13
PROVIDED, AT THE TIME SUCH PROPERTY WAS PLACED IN SERVICE BY SUCH PART-
NERSHIP THE BASIS FOR FEDERAL INCOME TAX PURPOSES OF SUCH PROPERTY (OR A
PROJECT THAT INCLUDES SUCH PROPERTY) EQUALED OR EXCEEDED THREE HUNDRED
MILLION DOLLARS AND SUCH PARTNER OWNED ITS PARTNERSHIP INTEREST FOR AT
LEAST THREE YEARS FROM THE DATE SUCH PROPERTY WAS PLACED IN SERVICE. IF
SUCH PROPERTY CEASES TO BE IN QUALIFIED USE AFTER IT IS PLACED IN
SERVICE, THIS PARAGRAPH SHALL APPLY TO SUCH PARTNER IN THE YEAR SUCH
PROPERTY CEASES TO BE IN QUALIFYING USE.
S 14. The tax law is amended by adding a new section 36 to read as
follows:
S 36. MANUFACTURERS INVESTMENT TAX CREDIT. 1. FOR PURPOSES OF THIS
SECTION, AN ELIGIBLE TAXPAYER SHALL MEAN A MANUFACTURER, DEFINED AS A
TAXPAYER WHICH DURING THE TAXABLE YEAR IS PRINCIPALLY ENGAGED IN THE
PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING OR ASSEMBLING, AND
SHALL ALSO INCLUDE THE ACTIVITIES OF A QUALIFIED EMERGING TECHNOLOGY
COMPANY AS DEFINED IN PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION THIR-
TY-ONE HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW REGARDLESS OF THE TEN
MILLION DOLLAR LIMITATION EXPRESSED IN SUBPARAGRAPH ONE OF SUCH PARA-
GRAPH; PROVIDED HOWEVER, THE GENERATION AND DISTRIBUTION OF ELECTRICITY,
THE DISTRIBUTION OF NATURAL GAS, AND THE PRODUCTION OF STEAM ASSOCIATED
WITH THE GENERATION OF ELECTRICITY SHALL NOT BE QUALIFYING ACTIVITIES
FOR A MANUFACTURER UNDER THIS SUBDIVISION.
2. AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR FIFTEEN PER
CENTUM OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF
RESEARCH AND DEVELOPMENT PROPERTY AS DEFINED IN PARAGRAPH (B) OF SUBDI-
VISION TWELVE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER THAT IS
ACQUIRED BY THE TAXPAYER BY PURCHASE AS DEFINED IN SECTION 179(D) OF THE
INTERNAL REVENUE CODE AND PLACED IN SERVICE DURING THE TAXABLE YEAR.
PROVIDED, HOWEVER, FOR THE PURPOSES OF THIS SUBDIVISION ONLY, AN ELIGI-
BLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR SUCH PERCENTAGE OF THE (A)
COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES FOR PROPERTY USED IN
THE TESTING OR INSPECTION OF MATERIALS AND PRODUCTS, (B) THE COSTS OR
EXPENSES ASSOCIATED WITH QUALITY CONTROL OF THE RESEARCH AND DEVELOP-
MENT, (C) FEES FOR USE OF SOPHISTICATED TECHNOLOGY FACILITIES AND PROC-
ESSES, (D) FEES FOR THE PRODUCTION OR EVENTUAL COMMERCIAL DISTRIBUTION
OF MATERIALS AND PRODUCTS RESULTING FROM THE ACTIVITIES OF AN ELIGIBLE
TAXPAYER AS LONG AS SUCH ACTIVITIES FALL UNDER THE ACTIVITIES LISTED IN
PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED TWO-E OF
THE PUBLIC AUTHORITIES LAW. THE COSTS, EXPENSES AND OTHER AMOUNTS FOR
WHICH A CREDIT IS ALLOWED AND CLAIMED UNDER THIS SUBDIVISION SHALL NOT
BE USED IN THE CALCULATION OF ANY OTHER CREDIT ALLOWED UNDER THIS ARTI-
CLE.
3. AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR SEVEN AND
ONE-HALF PER CENTUM OF "QUALIFIED RESEARCH EXPENSES" PAID OR INCURRED BY
THE TAXPAYER IN THE TAXABLE YEAR. "QUALIFIED RESEARCH EXPENSES" SHALL
MEAN EXPENSES ASSOCIATED WITH IN-HOUSE RESEARCH AND PROCESSES, AND COSTS
ASSOCIATED WITH THE DISSEMINATION OF THE RESULTS OF THE PRODUCTS THAT
DIRECTLY RESULT FROM SUCH RESEARCH AND DEVELOPMENT ACTIVITIES; PROVIDED,
HOWEVER, THAT SUCH COSTS SHALL NOT INCLUDE ADVERTISING OR PROMOTION
THROUGH MEDIA. IN ADDITION, COSTS ASSOCIATED WITH THE PREPARATION OF
PATENT APPLICATIONS, PATENT APPLICATION FILING FEES, PATENT RESEARCH
FEES, PATENT EXAMINATIONS FEES, PATENT POST ALLOWANCE FEES, PATENT MAIN-
TENANCE FEES, AND GRANT APPLICATION EXPENSES AND FEES SHALL BE ELIGIBLE
FOR SUCH CREDIT. IN NO CASE SHALL THE CREDIT ALLOWED UNDER THIS SUBDIVI-
SION APPLY TO EXPENSES FOR LITIGATION OR THE CHALLENGE OF ANOTHER ENTI-
A. 10679 14
TY'S INTELLECTUAL PROPERTY RIGHTS, OR FOR CONTRACT EXPENSES INVOLVING
OUTSIDE PAID CONSULTANTS.
4. 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
SECTION TWO HUNDRED TEN OF THIS CHAPTER. HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR 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.
5. CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(A) ARTICLE 9-A: SECTION 210, SUBDIVISION 12: PARAGRAPH (B)
(B) ARTICLE 22: SECTION 606, SUBSECTION (I)
S 15. Paragraph (b) of subdivision 4 of section 874 of the general
municipal law, as amended by chapter 357 of the laws of 1993, is amended
and a new subdivision 9 is added to read as follows:
(b) THE UNIFORM TAX EXEMPTION POLICY ESTABLISHED PURSUANT TO THIS
SECTION SHALL BE REVIEWED AND READOPTED BY THE AGENCY AT LEAST EVERY
FIVE YEARS FOLLOWING A PUBLIC HEARING. NOTICE OF THIS HEARING SHALL BE
GIVEN TO THE CHIEF EXECUTIVE OFFICER OF EACH AFFECTED TAX JURISDICTION
AT LEAST SIXTY DAYS BEFORE THE HEARING. PRIOR TO THE HEARING THE AGENCY
SHALL REVIEW, AND RESPOND TO ANY CORRESPONDENCE RECEIVED FROM ANY
AFFECTED TAX JURISDICTION. THE AGENCY SHALL ALLOW ANY REPRESENTATIVE OF
AN AFFECTED TAX JURISDICTION TO ADDRESS THE AGENCY AT THE HEARING. THE
AGENCY SHALL DEVELOP AND SUBMIT A REPORT TO THE AFFECTED TAX JURISDIC-
TIONS SIXTY DAYS PRIOR TO THE HEARING WHICH DETAILS THE PROJECTS WHICH
THE AGENCY HAS ASSISTED IN THE PREVIOUS FIVE YEARS AND SHALL INCLUDE
INFORMATION SPECIFIC TO EACH PROJECT INCLUDING THE PERIOD OF EXEMPTION;
THE TYPE OF PROJECT; THE ESTIMATED PERCENTAGE OF EXEMPTION BY YEAR; THE
ESTIMATED VALUE OF ANY OTHER ASSISTANCE PROVIDED BY THE AGENCY; WHETHER
COMMITMENTS FOR PAYMENTS IN LIEU OF TAXES WERE MADE AND MET; THE ESTI-
MATED VALUE OF SUCH PAYMENTS BY YEAR AND AFFECTED TAX JURISDICTION; THE
ESTIMATED AMOUNT OF PRIVATE SECTOR INVESTMENT GENERATED BY THE PROJECT;
AND THE EXTENT TO WHICH THE PROJECT CREATED OR RETAINED PERMANENT,
PRIVATE SECTOR JOBS.
(C) The agency shall establish a procedure for deviation from the
uniform tax exemption policy required pursuant to this subdivision. The
agency shall set forth in writing the reasons for deviation from such
policy, and shall further notify the affected local taxing jurisdictions
of the proposed deviation from such policy and the reasons therefor.
SUCH NOTICE TO THE AFFECTED TAX JURISDICTIONS SHALL BE GIVEN TO THE
CHIEF EXECUTIVE OFFICER OF EACH AFFECTED TAX JURISDICTION AT LEAST THIR-
TY DAYS PRIOR TO THE MEETING OF THE AGENCY AT WHICH THE AGENCY SHALL
CONSIDER WHETHER TO APPROVE SUCH PROPOSED DEVIATION. PRIOR TO TAKING
FINAL ACTION AT SAID MEETING, THE AGENCY SHALL REVIEW AND RESPOND TO ANY
CORRESPONDENCE RECEIVED FROM ANY AFFECTED TAX JURISDICTION REGARDING
SUCH PROPOSED DEVIATION. THE AGENCY SHALL ALLOW ANY REPRESENTATIVE OF AN
AFFECTED TAX JURISDICTION PRESENT AT SUCH MEETING TO ADDRESS THE AGENCY
REGARDING SUCH PROPOSED DEVIATION.
(9) WITHIN THIRTY DAYS OF THE DATE THAT THE AGENCY DESIGNATES A
PROJECT OPERATOR OR OTHER PERSON TO ACT AS AGENT OF THE AGENCY FOR
PURPOSES OF EXTENDING A SALES TAX EXEMPTION TO SUCH PERSON, THE AGENCY
A. 10679 15
SHALL FILE A STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE
RELATING THERETO, ON A FORM AND IN SUCH MANNER AS IS PRESCRIBED BY THE
COMMISSIONER OF TAXATION AND FINANCE, IDENTIFYING EACH SUCH AGENT SO
NAMED BY THE AGENCY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF
EACH SUCH AGENT, GIVING A BRIEF DESCRIPTION OF THE GOODS AND/OR SERVICES
INTENDED TO BE EXEMPTED FROM SALES TAXES AS A RESULT OF SUCH APPOINTMENT
AS AGENT, INDICATING THE AGENCY'S ROUGH ESTIMATE OF THE VALUE OF THE
GOODS AND/OR SERVICES TO WHICH SUCH APPOINTMENT AS AGENT RELATES, INDI-
CATING THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND
INDICATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE.
S 16. Subdivision 4 of section 854 of the general municipal law, as
amended by chapter 541 of the laws of 1982, is amended and a new subdi-
vision 13 is added to read as follows:
(4) "Project" - shall mean any land, any building or other improve-
ment, and all real and personal properties located within the state of
New York and within or outside or partially within and partially outside
the municipality for whose benefit the agency was created, including,
but not limited to, machinery, equipment and other facilities deemed
necessary or desirable in connection therewith, or incidental thereto,
whether or not now in existence or under construction, which shall be
suitable for manufacturing, warehousing, research, CIVIC commercial or
industrial purposes or other economically sound purposes identified and
called for to implement a state designated urban cultural park manage-
ment plan as provided in title G of the parks, recreation and historic
preservation law and which may include or mean an industrial pollution
control facility, a recreation facility, educational or cultural facili-
ty, a horse racing facility [or], a railroad facility OR CIVIC FACILITY,
provided, however, no agency shall use its funds in respect of any
project wholly or partially outside the municipality for whose benefit
the agency was created without the prior consent thereto by the govern-
ing body or bodies of all the other municipalities in which a part or
parts of the project is, or is to be, located. PROVIDED FURTHER, THAT
NO AGENCY SHALL PROVIDE FINANCIAL ASSISTANCE FOR ANY PROJECT WHERE THE
PROJECT APPLICANT HAS ANY AGREEMENT TO SUBSEQUENTLY CONTRACT WITH A
MUNICIPALITY FOR THE LEASE OR PURCHASE OF SUCH PROJECT OR PROJECT FACIL-
ITY.
(13) "CIVIC FACILITY" - SHALL MEAN ANY FACILITY WHICH SHALL BE OWNED
OR OCCUPIED BY A NOT-FOR-PROFIT CORPORATION ORGANIZED AND EXISTING UNDER
THE LAWS OF THIS STATE OR AUTHORIZED TO CONDUCT ACTIVITIES IN THIS
STATE. SUCH FACILITIES SHALL NOT INCLUDE CONVENTION CENTERS, HOUSING
FACILITIES, DORMITORIES FOR EDUCATIONAL INSTITUTIONS OR ROADS, BUILD-
INGS, WATER SYSTEMS, SEWER SYSTEMS, OR ANY PUBLIC FACILITY FOR USE BY A
MUNICIPALITY IN THE PERFORMANCE OF ITS GOVERNMENTAL FUNCTIONS OR MEDICAL
FACILITIES WHICH ARE PREDOMINANTLY USED FOR THE DELIVERY OF MEDICAL
SERVICES, EXCEPT THAT SUCH FACILITIES SHALL INCLUDE REHABILITATION
CENTERS AND HOSPICES. NOTWITHSTANDING THE LIMITATIONS CONTAINED IN THE
PRECEDING SENTENCE, A CIVIC FACILITY PROJECT MAY INCLUDE: (A) DORMITO-
RIES FOR EDUCATIONAL INSTITUTIONS; (B) FACILITIES AS DEFINED IN ARTICLE
TWENTY-EIGHT OF THE PUBLIC HEALTH LAW; AND (C) HOUSING FACILITIES PRIMA-
RILY DESIGNED TO BE OCCUPIED BY INDIVIDUALS SIXTY YEARS OF AGE OR OLDER.
NOTHING IN THIS ARTICLE SHALL BE DEEMED TO WAIVE ANY APPLICABLE REQUIRE-
MENT FOR AN OPERATING FACILITY CERTIFICATE, CONSENT OR ANY OTHER
APPROVAL AS PROVIDED BY LAW.
S 17. Subdivision 3 of section 859-a of the general municipal law, as
added by chapter 356 of the laws of 1993, is amended to read as follows:
A. 10679 16
3. The agency must give at least [ten] THIRTY days published notice of
said public hearing and shall, at the same time, provide notice of such
hearing to the chief executive officer of each affected tax jurisdiction
within which the project is located. The notice of hearing must state
the time and place of the hearing, contain a general, functional
description of the project, describe the prospective location of the
project, identify the initial owner, operator or manager of the project
and generally describe the financial assistance contemplated by the
agency with respect to the project, AND PROVIDE AN OPPORTUNITY FOR THE
PUBLIC TO REVIEW THE PROJECT APPLICATION, WHICH SHALL INCLUDE AN ANALY-
SIS OF THE COSTS AND BENEFITS OF THE PROPOSED PROJECT.
S 18. Section 862 of the general municipal law, as added by chapter
1030 of the laws of 1969, is amended to read as follows:
S 862. Restrictions on funds of the agency. 1. No [funds] FINANCIAL
ASSISTANCE of the agency shall be used in respect of any project if the
completion thereof would result in the removal of [an industrial or
manufacturing] A FACILITY OR plant of the project occupant from one area
of the state to another area of the state or in the abandonment of one
or more plants or facilities of the project occupant located within the
state, provided, however, that neither restriction shall apply if the
agency shall determine on the basis of the application before it that
the project is reasonably necessary to discourage the project occupant
from removing such other plant or facility to a location outside the
state or is reasonably necessary to preserve the competitive position of
the project occupant in its respective industry.
2. (A) EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, NO
FINANCIAL ASSISTANCE OF THE AGENCY SHALL BE PROVIDED IN RESPECT OF ANY
PROJECT WHERE FACILITIES OR PROPERTY THAT ARE PRIMARILY USED IN MAKING
RETAIL SALES TO CUSTOMERS WHO PERSONALLY VISIT SUCH FACILITIES CONSTI-
TUTE MORE THAN ONE-THIRD OF THE TOTAL PROJECT COST. FOR THE PURPOSES OF
THIS ARTICLE, RETAIL SALES SHALL MEAN: (I) SALES BY A REGISTERED VENDOR
UNDER ARTICLE TWENTY-EIGHT OF THE TAX LAW PRIMARILY ENGAGED IN THE
RETAIL SALE OF TANGIBLE PERSONAL PROPERTY, AS DEFINED IN SUBPARAGRAPH
(I) OF PARAGRAPH FOUR OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE
OF THE TAX LAW; OR (II) SALES OF A SERVICE TO SUCH CUSTOMERS. EXCEPT,
HOWEVER, THAT TOURISM DESTINATION PROJECTS AND PROJECTS OPERATED BY
NOT-FOR-PROFIT CORPORATIONS SHALL NOT BE PROHIBITED BY THIS SUBDIVISION.
FOR THE PURPOSES OF THIS PARAGRAPH, "TOURISM DESTINATION" SHALL MEAN A
LOCATION OR FACILITY WHICH IS LIKELY TO ATTRACT A SIGNIFICANT NUMBER OF
VISITORS FROM OUTSIDE THE ECONOMIC DEVELOPMENT REGION AS ESTABLISHED BY
SECTION TWO HUNDRED THIRTY OF THE ECONOMIC DEVELOPMENT LAW, IN WHICH THE
PROJECT IS LOCATED.
(B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, FINANCIAL ASSISTANCE MAY, HOWEVER, BE PROVIDED TO A PROJECT WHERE
FACILITIES OR PROPERTY THAT ARE PRIMARILY USED IN MAKING RETAIL SALES OF
GOODS OR SERVICES TO CUSTOMERS WHO PERSONALLY VISIT SUCH FACILITIES TO
OBTAIN SUCH GOODS OR SERVICES CONSTITUTE MORE THAN ONE-THIRD OF THE
TOTAL PROJECT COST, WHERE (I) THE PROJECT OCCUPANT WOULD, BUT FOR THE
ASSISTANCE PROVIDED BY THE AGENCY, LOCATE THE RELATED JOBS OUTSIDE THE
STATE, OR (II) THE PREDOMINANT PURPOSE OF THE PROJECT WOULD BE TO MAKE
AVAILABLE GOODS OR SERVICES WHICH WOULD NOT, BUT FOR THE PROJECT, BE
REASONABLY ACCESSIBLE TO THE RESIDENTS OF THE CITY, TOWN, OR VILLAGE
WITHIN WHICH THE PROPOSED PROJECT WOULD BE LOCATED BECAUSE OF A LACK OF
REASONABLY ACCESSIBLE RETAIL TRADE FACILITIES OFFERING SUCH GOODS OR
SERVICES, OR (III) THE PROJECT IS LOCATED IN A HIGHLY DISTRESSED AREA.
A. 10679 17
(C) WITH RESPECT TO PROJECTS AUTHORIZED PURSUANT TO PARAGRAPH (B) OF
THIS SUBDIVISION, NO PROJECT SHALL BE APPROVED UNLESS THE AGENCY SHALL
FIND AFTER THE PUBLIC HEARING REQUIRED BY SECTION EIGHT HUNDRED
FIFTY-NINE OF THIS TITLE THAT UNDERTAKING THE PROJECT WILL SERVE THE
PUBLIC PURPOSES OF THIS ARTICLE BY PRESERVING PERMANENT, PRIVATE SECTOR
JOBS OR INCREASING THE OVERALL NUMBER OF PERMANENT, PRIVATE SECTOR JOBS
IN THE STATE. WHERE THE AGENCY MAKES SUCH A FINDING, PRIOR TO A GRANT OF
ASSISTANCE TO THE PROJECT BY THE AGENCY, THE CHIEF EXECUTIVE OFFICER OF
THE MUNICIPALITY FOR WHOSE BENEFIT THE AGENCY WAS CREATED SHALL CONFIRM
THE PROPOSED ACTION OF THE AGENCY.
3. NO FUNDS OF THE AGENCY SHALL BE USED FOR THE PURPOSE OF PREVENTING
THE ESTABLISHMENT OF AN INDUSTRIAL OR MANUFACTURING PLANT, NOR SHALL ANY
FUNDS OF THE AGENCY BE GIVEN TO ANY GROUP OR ORGANIZATION WHICH IS
ATTEMPTING TO PREVENT THE ESTABLISHMENT OF AN INDUSTRIAL OR MANUFACTUR-
ING PLANT WITHIN THIS STATE NOR SHALL SUCH FUNDS BE USED FOR ADVERTISING
OR PROMOTIONAL MATERIALS WHICH DEPICT ELECTED OR APPOINTED GOVERNMENT
OFFICIALS IN EITHER PRINT OR ELECTRONIC MEDIA.
S 19. Section 2306 of the public authorities law, as added by chapter
915 of the laws of 1969, the opening paragraph and subdivision 9 as
amended by chapter 556 of the laws of 1973, subdivision 8 as amended,
subdivision 14 as added and subdivisions 15 and 16 as renumbered by
chapter 356 of the laws of 1993, is amended to read as follows:
S 2306. Purpose and powers of the authority. The purposes of the
authority shall be to promote, develop, encourage and assist in the
acquiring, constructing, reconstructing, improving, maintaining, equip-
ping and furnishing industrial, manufacturing, warehouse, commercial and
research facilities and facilities for use by a federal agency or a
medical facility including industrial pollution control facilities,
which may include transportation facilities including but not limited to
those relating to water, highway, rail and air, in one or more areas of
the city, and thereby advance the job opportunities, health, general
prosperity and economic welfare of the people of said city and to
improve their medical care and standard of living; provided, however,
that the authority shall not undertake any project if the completion
thereof would result in the removal of an industrial or manufacturing
plant of the project occupant from one area of the state to another area
of the state or in abandonment of one or more plants or facilities of
the project applicant located within the state, provided, however, that
neither restriction shall apply if the authority shall determine on the
basis of the application before it that the project is reasonably neces-
sary to discourage the project occupant from removing such other plant
or facility to a location outside the state or is reasonably necessary
to preserve the competitive position of the project occupant in its
respective industry.
EXCEPT AS OTHERWISE PROVIDED BY THIS SECTION, NO FINANCIAL ASSISTANCE
OF THE AUTHORITY SHALL BE PROVIDED IN RESPECT TO ANY PROJECT WHERE
FACILITIES OR PROPERTY THAT ARE PRIMARILY USED IN MAKING RETAIL SALES TO
CUSTOMERS WHO PERSONALLY VISIT SUCH FACILITIES CONSTITUTE MORE THAN
ONE-THIRD OF THE TOTAL PROJECT COST. FOR PURPOSES OF THIS ARTICLE,
RETAIL SALES SHALL MEAN: (I) SALES BY A REGISTERED VENDOR UNDER ARTICLE
TWENTY-EIGHT OF THE TAX LAW PRIMARILY ENGAGED IN THE RETAIL SALE OF
TANGIBLE PERSONAL PROPERTY, AS DEFINED IN SUBPARAGRAPH (I) OF PARAGRAPH
FOUR OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THE TAX LAW; OR
(II) SALES OF A SERVICE TO SUCH CUSTOMERS. EXCEPT, HOWEVER, THAT TOURISM
DESTINATION PROJECTS AND PROJECTS OPERATED BY NOT-FOR-PROFIT CORPO-
RATIONS SHALL NOT BE PROHIBITED BY THIS SECTION. FOR PURPOSES OF THIS
A. 10679 18
SECTION, "TOURISM DESTINATION" SHALL MEAN A LOCATION OR FACILITY WHICH
IS LIKELY TO ATTRACT A SIGNIFICANT NUMBER OF VISITORS FROM OUTSIDE THE
ECONOMIC DEVELOPMENT REGION AS ESTABLISHED BY SECTION TWO HUNDRED THIRTY
OF THE ECONOMIC DEVELOPMENT LAW, IN WHICH THE PROJECT IS LOCATED.
NOTWITHSTANDING THE PROVISIONS OF THIS SECTION TO THE CONTRARY, SUCH
FINANCIAL ASSISTANCE MAY, HOWEVER, BE PROVIDED TO A PROJECT WHERE FACIL-
ITIES OR PROPERTY THAT ARE PRIMARILY USED IN MAKING RETAIL SALES OF
GOODS OR SERVICES TO CUSTOMERS WHO PERSONALLY VISIT SUCH FACILITIES TO
OBTAIN GOODS OR SERVICES CONSTITUTE MORE THAN ONE-THIRD OF THE TOTAL
PROJECT COST WHERE (I) THE PROJECT OCCUPANT WOULD, BUT FOR THE ASSIST-
ANCE PROVIDED BY THE AUTHORITY, LOCATE THE RELATED JOBS OUTSIDE THE
STATE; OR (II) THE PREDOMINANT PURPOSE OF THE PROJECT WOULD BE TO MAKE
AVAILABLE GOODS OR SERVICES WHICH WOULD NOT, BUT FOR THE PROJECT, BE
REASONABLY ACCESSIBLE TO THE RESIDENTS OF THE CITY OF TROY BECAUSE OF A
LACK OF REASONABLY ACCESSIBLE RETAIL FACILITIES OFFERING SUCH GOODS OR
SERVICES; OR (III) THE PROJECT IS LOCATED IN A HIGHLY DISTRESSED AREA,
WITH RESPECT TO PROJECTS AUTHORIZED PURSUANT TO THIS PARAGRAPH. NO
PROJECT SHALL BE APPROVED UNLESS THE AUTHORITY SHALL FIND AFTER THE
PUBLIC HEARING REQUIRED BY SECTION TWENTY-THREE HUNDRED SEVEN OF THIS
TITLE THAT UNDERTAKING THE PROJECT WILL SERVE THE PUBLIC PURPOSES OF
THIS ARTICLE BY PRESERVING PERMANENT, PRIVATE SECTOR JOBS IN THE STATE.
WHERE THE AUTHORITY MAKES SUCH A FINDING, PRIOR TO A GRANT OF ASSISTANCE
TO THE PROJECT BY THE AUTHORITY, THE CHIEF EXECUTIVE OFFICER OF THE CITY
OF AUBURN SHALL CONFIRM THE PROPOSED ACTION OR THE AUTHORITY.
NO FUNDS OF THE AUTHORITY SHALL BE USED FOR THE PURPOSE OF PREVENTING
THE ESTABLISHMENT OF AN INDUSTRIAL OR MANUFACTURING PLANT, NOR SHALL ANY
FINANCIAL ASSISTANCE OF THE AUTHORITY BE GIVEN TO ANY GROUP OR ORGANIZA-
TION WHICH IS ATTEMPTING TO PREVENT THE ESTABLISHMENT OF AN INDUSTRIAL
OR MANUFACTURING PLANT WITHIN THIS STATE NOR SHALL SUCH FINANCIAL
ASSISTANCE BY USED FOR ADVERTISING OR PROMOTIONAL MATERIALS WHICH DEPICT
ELECTED OR APPOINTED GOVERNMENTAL OFFICIALS IN EITHER PRINT OR ELECTRON-
IC MEDIA. To carry out said purpose, the authority shall have power:
1. To sue and be sued;
2. To have a seal and alter the same at pleasure;
3. To acquire, hold and dispose of personal property for its corporate
purpose;
4. To acquire by purchase, grant, lease, gift, condemnation, or other-
wise and to use, real property or rights or easements therein necessary
for its corporate purposes, and to sell, convey, mortgage, lease,
pledge, exchange or otherwise dispose of any such property in such
manner as the authority shall determine. With respect to real property
conveyed to it by the city, however, such power of disposition shall be
limited as hereinafter provided in section twenty-three hundred ten of
this title;
5. To make by-laws for the management and regulation of its affairs
and, subject to agreements with its bondholders, for the regulation of
the use of the project.
6. With the consent of the city, to use agents, employees and facili-
ties of the city, paying the city its agreed proportion of the compen-
sation or costs.
7. To appoint officers, agents and employees, to prescribe their qual-
ifications and to fix their compensation and to pay the same out of
funds of the authority, subject, however, to the provisions of the civil
service law hereinafter provided in section twenty-three hundred eight
of this title;
A. 10679 19
8. To retain and employ financial advisors, engineers, architects,
attorneys and other consultants for professional and technical assist-
ance and advice; that an attorney acting as bond counsel for a project
must file with the authority a written statement in which the attorney
identifies each party to the transaction which such attorney represents.
If bond counsel provides any legal services to the parties other than
the authority, the written statement must describe the nature of legal
services provided by such bond counsel to all parties to the trans-
action, including the nature of the services provided to the authority;
9. To make contracts and leases upon such terms as the authority shall
deem appropriate, including without limitation leases which grant the
tenant of a project an option to renew or an option to purchase the
project, or both, at a fixed or otherwise predetermined price, and to
execute all instruments necessary or convenient;
10. To acquire, construct, reconstruct, lease, improve, maintain,
equip or furnish one or more projects;
11. To accept gifts, grants, loans or contributions from, and enter
into contracts or other transactions with, the United States and the
state or any agency of either of them, any municipality, any public or
private corporation or any other legal entity, and to use any such
gifts, grants, loans or contributions for any of its corporate purposes;
12. To borrow money and to issue bonds and to provide for the rights
of the holders thereof;
13. To designate the depositories of its money in the city of Auburn.
14. To enter into agreements requiring payments in lieu of taxes. Such
agreements shall be in writing and in addition to other terms shall
contain: the amount due annually to each affected tax jurisdiction (or a
formula by which the amount due can be calculated), the name and address
of the person, office or agency to which payment shall be delivered, the
date on which the payment shall be made, and the date on which payment
shall be considered delinquent if not paid. Unless otherwise agreed by
the affected tax jurisdictions, any such agreement shall provide that
payments in lieu of taxes shall be allocated among affected tax juris-
dictions in proportion to the amount of real property tax and other
taxes which would have been received by each affected tax jurisdiction
had the project not been tax exempt due to the status of the agency
involved in the project. A copy of any such agreement shall be delivered
to each tax affected jurisdiction within fifteen days of signing the
agreement. In the absence of any such written agreement, payments in
lieu of taxes shall be allocated in the same proportions as they had
been prior to January first, nineteen hundred ninety-three for so long
as the authority's activities render a project non-taxable by affected
tax jurisdictions.
15. To establish and reestablish its fiscal year; and
16. To do all things necessary or convenient to carry out its purposes
and exercise the powers expressly given in this title.
S 20. Section 859 of the general municipal law is amended by adding a
new subdivision 4 to read as follows:
4. EACH AGENCY WHICH HAS ISSUED BONDS TO FINANCE ANY CIVIC FACILITY,
AS SUCH PROJECT IS DEFINED IN SUBDIVISION THIRTEEN OF SECTION EIGHT
HUNDRED FIFTY-FOUR OF THIS TITLE, SHALL ANNUALLY SUBMIT A REPORT TO THE
DEPARTMENT OF ECONOMIC DEVELOPMENT, THE DIRECTOR OF THE BUDGET, THE
CHAIRPERSON OF THE SENATE FINANCE COMMITTEE AND THE CHAIRPERSON OF THE
ASSEMBLY WAYS AND MEANS COMMITTEE. SUCH REPORT SHALL BE SUBMITTED ON THE
SAME DAY AND PERTAIN TO THE SAME PERIOD OF TIME AS THE REPORT SPECIFIED
IN SUBDIVISIONS ONE AND TWO OF THIS SECTION. SUCH REPORT SHALL CONTAIN A
A. 10679 20
LIST OF THE CIVIC FACILITIES AND FOR EACH SUCH FACILITY CONTAIN A SUMMA-
RY DESCRIPTION INCLUDING, BUT NOT LIMITED TO, TOTAL PROJECT COSTS AND
THE AMOUNTS OF BONDS OF THE AGENCY ISSUED AND THE NUMBER OF JOBS CREATED
OR RETAINED IN CONNECTION WITH EACH SUCH FACILITY.
S 21. Section 15 of chapter 66 of the laws of 1994, amending the
public health law, the general municipal law and the insurance law
relating to the financing of life care communities, as amended by chap-
ter 381 of the laws of 2007, is amended to read as follows:
S 15. This act shall take effect immediately, provided, however that
the amendment made to subdivision 4 of section 854 of the general munic-
ipal law by section eight of this act shall not affect the reversion of
such subdivision as provided by section 5 of chapter 905 of the laws of
1986, as amended and that where the continuing care retirement community
council is authorized to promulgate regulations by this act, it is here-
by authorized to implement the provisions of this act in advance of such
regulations; and provided further that sections one, three, seven,
eight, nine, ten, eleven, twelve and thirteen of this act, and paragraph
m of subdivision 2 of section 4602 of the public health law, as added by
section two of this act, shall apply only to applicants for a certif-
icate of authority pursuant to article 46 of the public health law that
have been approved to receive and have received such certificate of
authority on or before [January 31, 2008] JULY 1, 2015.
S 22. The economic development law is amended by adding a new article
11-B to read as follows:
ARTICLE 11-B
HIGH TECH MARKETING PROGRAM
SECTION 239-A. DEFINITIONS.
239-B. APPLICATION.
239-C. USE OF FUNDS.
239-D. ADVISORY COMMITTEE.
239-E. REPORTING REQUIREMENTS.
S 239-A. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "ELIGIBLE APPLICANT" SHALL MEAN A STATEWIDE ECONOMIC DEVELOPMENT
NOT-FOR-PROFIT ORGANIZATION ESTABLISHED TO PROMOTE THE ECONOMIC DEVELOP-
MENT OF THE STATE AND ITS COMMUNITIES, ENCOURAGE SOUND PRACTICES IN THE
CONDUCT OF REGIONAL AND STATEWIDE DEVELOPMENT PROGRAMS, AND TO DEVELOP
EDUCATION PROGRAMS THAT ENHANCE THE PROFESSIONAL DEVELOPMENT SKILLS OF
ITS MEMBERS, AND WHOSE MEMBERS REPRESENT COUNTY, STATEWIDE, AND LOCAL
GOVERNMENT JURISDICTIONS FOR THE PURPOSE OF ATTRACTING INVESTMENT AND
JOBS TO THE REGIONS THEY REPRESENT.
2. "STATEWIDE HIGH TECH MARKETING PROGRAM" SHALL MEAN A PROGRAM THAT
PROMOTES THE STATE'S STRENGTHS AND ASSETS IN THE FOLLOWING TECHNOLOGY
SECTORS: NANO-TECHNOLOGY; BIOTECHNOLOGY; PHOTONICS, OPTICS, IMAGING AND
ALTERNATIVE ENERGY.
3. "REGIONAL BUSINESS MARKETING CORPORATION" SHALL MEAN ANY
NOT-FOR-PROFIT CORPORATION CREATED FOR THE PRIMARY PURPOSE OF MARKETING
A MULTI-COUNTY REGION OF THE STATE FOR THE PURPOSE OF ATTRACTING PRIVATE
SECTOR INVESTMENT AND CREATING JOBS, AND WHICH HAS RECEIVED THE FINAN-
CIAL SUPPORT OF AT LEAST THREE COUNTY GOVERNMENTS.
S 239-B. APPLICATION. THE COMMISSIONER SHALL, WITHIN THREE MONTHS OF
THE EFFECTIVE DATE OF THIS ARTICLE, IMPLEMENT A REQUEST FOR PROPOSALS
PROCESS FOR SELECTING THE "ELIGIBLE APPLICANT". THE COMMISSIONER SHALL
INSURE THAT THE APPLICATION OF THE WINNING APPLICANT FOR SUCH FUNDS
SHALL HAVE SET FORTH THE SCHEDULE, BUDGET, SCOPE, USES OF FUNDS, AND
THEME OF THE PROPOSED STATEWIDE MARKETING PROGRAM TO BE UNDERTAKEN FOR
A. 10679 21
THE PURPOSE OF ENCOURAGING AND STIMULATING BUSINESS DEVELOPMENT AND
ECONOMIC ACTIVITY IN THE TARGETED HIGH TECHNOLOGY SECTORS WITHIN NEW
YORK STATE AND ITS REGIONS. THE APPROPRIATION FOR THIS PROGRAM SHALL
BE PAID TO THE WINNING APPLICANT WITHIN SIXTY DAYS OF ITS SELECTION.
S 239-C. USE OF FUNDS. 1. THREE MILLION DOLLARS OF THE FUNDS MAY BE
USED BY THE SELECTED APPLICANT TO DEVELOP AND IMPLEMENT A STATEWIDE HIGH
TECH MARKETING PROGRAM, AND MAY BE USED FOR THE FOLLOWING PURPOSES:
(A) PARTICIPATION AT KEY INTERNATIONAL AND DOMESTIC TRADE SHOWS AND
INDUSTRY CONFERENCES.
(B) DEVELOPMENT OF TARGETED INDUSTRY PROFILES AND OTHER PRIMARY
RESEARCH ON TARGETED INDUSTRIES.
(C) DEVELOPMENT OF TARGETED INDUSTRY COLLATERAL MATERIAL.
(D) ONE-ON-ONE MEETINGS WITH INDUSTRY DECISION MAKERS.
(E) DIRECT MAIL TO CORPORATE, SITE LOCATION CONSULTANTS, AND OTHER KEY
DECISION MAKERS FOR TARGETED TECHNOLOGY SECTORS.
(F) DEVELOPMENT OF NEW YORK LOVES NANO TECH, NEW YORK LOVES BIO TECH,
NEW YORK LOVES PHOTONICS, AND NEW YORK LOVES ALTERNATIVE ENERGY WEB
SITES.
(G) ADVERTISING IN INFLUENTIAL TRADE AND OTHER PUBLICATIONS.
(H) NEW YORK STATE TOURS WITH TARGETED INDUSTRY DECISION MAKERS.
(I) ALL FUNDS AWARDED TO THE WINNING APPLICANT MUST BE EXPENDED WITHIN
TWELVE MONTHS, UNLESS AN EXTENSION OF TIME IS REQUESTED AND, UPON SHOW-
ING OF GOOD CAUSE, GRANTED BY THE DEPARTMENT.
(J) NO MORE THAN TEN PERCENT OF THE TOTAL AMOUNT OF FUNDS AWARDED TO
THE SELECTED APPLICANT SHALL BE USED FOR ADMINISTRATIVE PURPOSES,
INCLUDING SALARIES AND OVERHEAD ASSOCIATED WITH IMPLEMENTING A STATEWIDE
HIGH TECH MARKETING PROGRAM.
2. TWO MILLION DOLLARS OF THE FUNDS MAY BE AWARDED BY THE SELECTED
APPLICANT ON A MATCHING BASIS TO NO MORE THAN FIVE ELIGIBLE REGIONAL
ECONOMIC DEVELOPMENT ORGANIZATIONS FOR THE PURPOSE OF IMPLEMENTING BUSI-
NESS MARKETING INITIATIVES WITHIN THE TARGETED TECHNOLOGY SECTORS.
(A) THE SELECTED APPLICANT SHALL ESTABLISH A REQUEST FOR PROPOSALS
PROCESS FOR SELECTING REGIONAL BUSINESS MARKETING CORPORATIONS TO BE
RECIPIENTS OF MATCHING GRANTS FROM THIS PROGRAM. THE SELECTED REGIONAL
ECONOMIC DEVELOPMENT ORGANIZATIONS SHALL HAVE DEMONSTRATED THAT:
(I) THE CORPORATION EXISTS IN LEGAL FORM.
(II) THE CORPORATION HAS SECURED AN AMOUNT EQUAL TO THE TOTAL MATCH
AWARDED BY THE SELECTED APPLICANT.
(III) THE CORPORATION HAS RECEIVED AND IS RECEIVING FINANCIAL SUPPORT
FROM AT LEAST COUNTY GOVERNMENTS FROM WITHIN ITS JURISDICTION.
(B) APPLICATIONS OF SELECTED REGIONAL ECONOMIC DEVELOPMENT ORGANIZA-
TIONS SHALL HAVE SET FORTH THE SCHEDULE, BUDGET, SCOPE, USES OF FUNDS,
AND THEME OF THE PROPOSED STATEWIDE MARKETING PROGRAM TO BE UNDERTAKEN
FOR THE PURPOSE OF ENCOURAGING AND STIMULATING BUSINESS DEVELOPMENT AND
ECONOMIC ACTIVITY IN THE TARGETED HIGH TECHNOLOGY SECTORS WITHIN THE
REGION, PROVIDED, HOWEVER, THAT:
(I) NO SUCH MATCHING FUNDS SHALL EXCEED THE SUM OF FIVE HUNDRED THOU-
SAND DOLLARS;
(II) NO MATCHING FUNDS WILL BE USED FOR ADMINISTRATIVE COSTS, INCLUD-
ING SALARIES AND OVERHEAD, ASSOCIATED WITH THE IMPLEMENTATION OF A
REGIONAL HIGH TECH BUSINESS MARKETING PROGRAM;
(III) NO SUCH MATCHING FUNDS SHALL BE USED FOR THE DIRECT BENEFIT OF A
FOR-PROFIT BUSINESS UNLESS SUCH EXPENDITURE SHALL FURTHER A PUBLIC
PURPOSE AND HAVE A CLEAR, LONG-TERM BENEFIT TO THE REGIONAL ECONOMY;
(IV) THE USES OF THE FUNDS ARE CONSISTENT WITH THE BUSINESS MARKETING
PROGRAMS DEVELOPED AND IMPLEMENTED BY THE WINNING APPLICANT; AND
A. 10679 22
(V) ALL FUNDS AWARDED TO REGIONAL ECONOMIC DEVELOPMENT ORGANIZATIONS
SHALL BE EXPENDED WITHIN TWELVE MONTHS OF SUCH PAYMENT UNLESS AN EXTEN-
SION OF TIME IS REQUESTED AND, UPON SHOWING OF GOOD CAUSE, GRANTED BY
THE WINNING APPLICANT.
(C) NO ADVERTISING OR MARKETING FUNDED FOR THE PURPOSE OF THIS ARTICLE
SHALL CONTAIN REFERENCES TO OR THE NAME OF ANY PUBLIC OFFICIAL OF THE
STATE OF NEW YORK, OR ITS POLITICAL SUBDIVISIONS. REFERENCE SHALL
INCLUDE BUT NOT BE LIMITED TO PHOTOGRAPHS, DRAWINGS, CARICATURES, OR
SOUND OR VIDEO RECORDINGS, UNLESS EXPRESSLY AUTHORIZED BY THE ADVISORY
COMMITTEE DESCRIBED IN SECTION TWO HUNDRED THIRTY-NINE-D OF THIS ARTI-
CLE.
S 239-D. ADVISORY COMMITTEE. THE WINNING APPLICANT SHALL ESTABLISH AN
ADVISORY COMMITTEE CONSISTING OF KEY STAKEHOLDERS TO ADVISE ON THE
DEVELOPMENT AND IMPLEMENTATION OF A MARKETING PLAN FOR EACH TARGETED
INDUSTRY SECTOR. THE ADVISORY COMMITTEE SHALL CONSIST OF REPRESENTATIVES
OF REGIONAL ECONOMIC DEVELOPMENT ORGANIZATIONS, ECONOMIC DEVELOPMENT
PROFESSIONALS, UNIVERSITY REPRESENTATIVES, PRIVATE INDUSTRY, EMPIRE
STATE DEVELOPMENT CORPORATION, THE SPEAKER OF THE ASSEMBLY, AND THE
TEMPORARY PRESIDENT OF THE SENATE. THE CHAIRPERSON OF THE ADVISORY
COMMITTEE SHALL BE SELECTED FROM AMONG ALL ITS MEMBERS.
S 239-E. REPORTING REQUIREMENTS. 1. EACH REGIONAL BUSINESS MARKETING
CORPORATION SHALL PROVIDE AN ANNUAL FINANCIAL STATEMENT PREPARED ACCORD-
ING TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES TO THE WINNING APPLI-
CANT, THE COMMISSIONER, THE SPEAKER OF THE ASSEMBLY, AND THE TEMPORARY
PRESIDENT OF THE SENATE.
2. THE WINING APPLICANT SHALL PROVIDE AN ANNUAL FINANCIAL STATEMENT
PREPARED ACCORDING TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES TO THE
COMMISSIONER, THE SPEAKER OF THE ASSEMBLY, AND THE TEMPORARY PRESIDENT
OF THE SENATE, AS WELL AS A PERFORMANCE REPORT INDICATING HOW FUNDS WERE
EXPENDED, AND RESULTS OF THOSE EXPENDITURES.
S 23. The sum of five million dollars ($5,000,000), or so much thereof
as may be necessary, is hereby appropriated to the department of econom-
ic development from any moneys in the state treasury in the general fund
not otherwise appropriated for services and expenses; including the
expenses of the department of economic development, for the purposes of
carrying out the provisions of section twenty of this act. Such sum
shall be payable on the audit and warrant of the state comptroller on
vouchers certified or approved by the commissioner of economic develop-
ment, or his or her duly designated representative in the manner
provided by law.
S 24. Section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, is amended by adding a
new section 16-u to read as follows:
S 16-U. NEW TECHNOLOGY SEED FUND. 1. THE NEW TECHNOLOGY SEED FUND IS
HEREBY CREATED. THE PURPOSE OF THE NEW TECHNOLOGY SEED FUND IS TO MAKE
AVAILABLE STATE FUNDS TO VENTURE CAPITAL AND OTHER SIMILAR FIRMS TO
SUPPORT EMERGING BUSINESS IDEAS AND PRODUCTS THAT MAY EVENTUALLY RESULT
IN THE GROWTH OF BUSINESS WITHIN THE STATE AND THE CONCOMITANT CREATION
OF JOBS AND TAX REVENUES FOR THE STATE. IT IS EXPECTED THAT THE APPLI-
CANT WILL PROVIDE MATCHING FUNDS AND SHARE THE RISK AND BENEFIT WITH THE
CORPORATION FOR ANY DEVELOPMENT FUNDED UNDER THIS PROGRAM. THE APPLICANT
WILL BE RESPONSIBLE FOR SELECTING THE BENEFICIARY COMPANIES THAT WILL
RECEIVE THE BENEFIT OF THE NEW TECHNOLOGY SEED FUNDS AND ENSURE THAT THE
FUNDS ARE EXPENDED IN ACCORDANCE WITH THE TERMS SET FORTH HEREIN.
2. THE CORPORATION IS AUTHORIZED TO MAKE INVESTMENTS FROM THE NEW
TECHNOLOGY SEED FUND TO ELIGIBLE APPLICANTS FOR THE PURPOSES OF FURTHER-
A. 10679 23
ING THE ECONOMIC DEVELOPMENT GOALS SET FORTH IN SUBDIVISION ONE OF THIS
SECTION.
3. ELIGIBLE APPLICANTS FOR NEW TECHNOLOGY SEED FUNDS MAY INCLUDE FOR-
PROFIT BUSINESSES, NOT-FOR-PROFIT CORPORATIONS, LOCAL DEVELOPMENT CORPO-
RATIONS OR UNIVERSITIES.
4. FUNDING FROM THE NEW TECHNOLOGY SEED FUND MAY BE MADE AVAILABLE TO
THE APPLICANT FOR APPLICATION TO ELIGIBLE COSTS INCURRED, OR TO BE
INCURRED, BY THE BENEFICIARY COMPANY WITH RESPECT TO APPLICABLE OPER-
ATIONS IN THE STATE, INCLUDING THE COST OF PURCHASING EQUIPMENT,
SUPPLIES, COSTS RELATED TO THE USE OF LABORATORIES OR CLEAN ROOMS,
PROTOTYPE DESIGN COSTS, MANUFACTURING COSTS, WAGES AND RELATED EMPLOYEE
COSTS WITH RESPECT TO EMPLOYEES INVOLVED IN RESEARCH AND DEVELOPMENT AND
SUCH OTHER COSTS DEEMED APPROPRIATE BY THE CORPORATION. ELIGIBLE COSTS
SHALL NOT INCLUDE GENERAL OVERHEAD COSTS OF THE APPLICANT OR BENEFICIARY
COMPANY, LEGAL COSTS OR OTHER COSTS DEEMED INAPPROPRIATE BY THE CORPO-
RATION.
5. APPLICATIONS FOR NEW TECHNOLOGY SEED FUNDS WILL BE RECEIVED BY THE
CORPORATION THROUGH A COMPETITIVE PROCESS ESTABLISHED BY THE CORPO-
RATION. TO BE ELIGIBLE FOR FUNDING, AN APPLICATION MUST DEMONSTRATE THAT
(A) THE BENEFICIARY COMPANY HAS A VIABLE PLAN FOR THE DEVELOPMENT OF A
NEW OR ENHANCED PRODUCT THAT COULD ULTIMATELY RESULT IN ADDITIONAL
PRIVATE INVESTMENT WITHIN THE STATE, RESULT IN THE CREATION OF JOBS OR
OTHERWISE GENERATE ECONOMIC DEVELOPMENT ACTIVITY WITHIN THE STATE; (B)
MATCHING FUNDS ARE COMMITTED AND AVAILABLE TO THE APPLICANT IN AN AMOUNT
NOT LESS THAN THE AMOUNT OF NEW TECHNOLOGY SEED FUNDS BEING APPLIED FOR;
(C) THE APPLICATION IS SUPPORTED BY LOCAL INDUSTRY ENTITIES, UNIVERSI-
TIES, OR OTHERWISE HAS MUNICIPAL OR REGIONAL SUPPORT; (D) THE BENEFICI-
ARY COMPANY HAS APPROPRIATE STAFFING AND MANAGEMENT CAPABILITIES AND
FINANCIAL RESOURCES TO BE REASONABLY LIKELY TO GENERATE A RETURN ON
INVESTMENT; AND (E) THE BENEFICIARY COMPANY HAS GENERATED REVENUE FOR NO
MORE THAN ONE YEAR.
6. IN ACCORDANCE WITH THE RULES AND REGULATIONS TO BE PROMULGATED BY
THE CORPORATION, THE CORPORATION MAY IMPOSE FEES, ESTABLISH REPAYMENT
TERMS AND PROVIDE FOR EQUITY PARTICIPATION BY THE CORPORATION IN
CONNECTION WITH INVESTMENTS FROM THE NEW TECHNOLOGY SEED FUND.
7. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE CORPO-
RATION MAY ESTABLISH A PROGRAM FUND FOR PROGRAM USE AND PAY INTO SUCH
FUND ANY FUNDS AVAILABLE TO THE CORPORATION FROM ANY SOURCE THAT ARE
ELIGIBLE FOR PROGRAM USE, INCLUDING MONEYS APPROPRIATED BY THE STATE.
8. THE CORPORATION SHALL SUBMIT A REPORT TO THE DIRECTOR OF THE BUDG-
ET, THE PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINOR-
ITY LEADER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY
CONSISTENT WITH SECTION TWENTY-NINE HUNDRED TWENTY-FIVE OF THE PUBLIC
AUTHORITIES LAW.
9. THE CORPORATION IS HEREBY AUTHORIZED TO PROMULGATE RULES AND REGU-
LATIONS IN ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT AS ARE
NECESSARY TO FULFILL THE PURPOSES OF THIS SECTION.
10. THE PROVISIONS OF SECTION TEN AND SUBDIVISION TWO OF SECTION
SIXTEEN OF THIS ACT SHALL NOT APPLY TO ASSISTANCE PROVIDED UNDER THIS
SECTION.
S 25. Subdivision 12-G of section 210 of the tax law, as amended by
section 1-a of part A of chapter 63 of the laws of 2005, is amended to
read as follows:
12-G. Qualified emerging technology company facilities, operations and
training credit. (a) A taxpayer that is a qualified emerging technology
company pursuant to the provisions of section thirty-one hundred two-e
A. 10679 24
(and specifically for the activities referenced in paragraph (b) of
subdivision one of such section thirty-one hundred two-e) of the public
authorities law, and that meets the eligibility requirements in para-
graph (b) of this subdivision, shall be allowed a credit against the tax
imposed by this article. The amount of credit shall be equal to the sum
of the amounts specified in paragraphs (c), (d), and (e) of this subdi-
vision subject to the limitations in paragraph (f) of this subdivision.
(b) An eligible taxpayer shall (i) have no more than one hundred full-
time employees, of which at least seventy-five percent are employed in
New York state, EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH, (ii)
have a ratio of research and development funds to net sales, as referred
to in section thirty-one hundred two-e of the public authorities law,
which equals or exceeds six percent during its taxable year, and (iii)
have gross revenues, along with the gross revenues of its affiliates and
related members, not exceeding [twenty] FORTY million dollars for the
taxable year immediately preceding the year the taxpayer is allowed a
credit under this subdivision. For purposes of this paragraph, the term
"related member" shall have the same meaning as set forth in clauses (A)
and (B) of subparagraph one of paragraph (o) of subdivision nine of
section two hundred eight of this article, and the term "affiliates"
shall mean those corporations that are members of the same affiliated
group (as defined in section fifteen hundred four of the internal reven-
ue code) as the taxpayer. FOR PURPOSES OF SUBPARAGRAPH (I) OF THIS
PARAGRAPH, EMPLOYEES WHO ARE EMPLOYED OUTSIDE OF THE UNITED STATES
DURING THE TAXABLE YEAR CANNOT BE CONSIDERED; A TAXPAYER THAT MEETS THE
EMPLOYMENT REQUIREMENTS IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IN THE
FIRST YEAR IN WHICH THE CREDIT ALLOWED BY THIS SUBDIVISION IS CLAIMED
WILL NOT BE CONSIDERED INELIGIBLE SOLELY AS A RESULT OF HAVING MORE THAN
ONE HUNDRED FULL-TIME EMPLOYEES IN OTHER TAXABLE YEARS IN WHICH THE
CREDIT IS CLAIMED, PROVIDED AT LEAST SEVENTY-FIVE PERCENT OF THE
FULL-TIME EMPLOYEES IN THE OTHER TAXABLE YEARS ARE EMPLOYED IN NEW YORK
STATE; AND AN INDIVIDUAL WHO IS A PARTNER IN A PARTNERSHIP THAT IS A
QUALIFIED EMERGING TECHNOLOGY COMPANY WILL BE CONSIDERED A FULL-TIME
EMPLOYEE IF THE INDIVIDUAL PARTNER PARTICIPATES IN THE PARTNERSHIP ON A
FULL-TIME BASIS DURING THE TAXABLE YEAR AND THE INVOLVEMENT OF THE INDI-
VIDUAL PARTNER IN THE ACTIVITIES OF THE PARTNERSHIP DURING THE TAXABLE
YEAR SATISFIES THE REQUIREMENTS FOR MATERIAL PARTICIPATION FOR THE SAME
TAXABLE YEAR WITHIN THE MEANING OF SUBSECTION (H) OF SECTION 469 OF THE
INTERNAL REVENUE CODE.
(c) An eligible taxpayer shall be allowed a credit for [eighteen]
THIRTY per centum of the cost or other basis for federal income tax
purposes of research and development property as defined in paragraph
(b) of subdivision twelve of this section that is acquired by the
taxpayer by purchase as defined in section 179(d) of the internal reven-
ue code and placed in service during the taxable year. Provided, howev-
er, for the purposes of this paragraph only, an eligible taxpayer shall
be allowed a credit for such percentage of the (i) cost or other basis
for federal income tax purposes for property used in the testing or
inspection of materials and products,
(ii) the costs or expenses associated with quality control of the
research and development,
(iii) fees for use of sophisticated technology facilities and proc-
esses,
(iv) fees for the production or eventual commercial distribution of
materials and products resulting from the activities of an eligible
taxpayer as long as such activities fall under the activities listed in
A. 10679 25
paragraph (b) of subdivision one of section thirty-one hundred two-e of
the public authorities law. The costs, expenses and other amounts for
which a credit is allowed and claimed under this paragraph shall not be
used in the calculation of any other credit allowed under this article.
(d) An eligible taxpayer shall be allowed a credit for [nine] FIFTEEN
per centum of "qualified research expenses" paid or incurred by the
taxpayer in the taxable year. "Qualified research expenses" shall mean
expenses associated with in-house research and processes, and costs
associated with the dissemination of the results of the products that
directly result from such research and development activities; provided,
however, that such costs shall not include advertising or promotion
through media. In addition, costs associated with the preparation of
patent applications, patent application filing fees, patent research
fees, patent examinations fees, patent post allowance fees, patent main-
tenance fees, and grant application expenses and fees shall be eligible
for such credit. In no case shall the credit allowed under this para-
graph apply to expenses for litigation or the challenge of another enti-
ty's intellectual property rights, or for contract expenses involving
outside paid consultants.
(e) An eligible taxpayer shall be allowed a credit for qualified high-
technology training expenditures as described in this paragraph paid or
incurred by the taxpayer. (i) The amount of credit shall be one hundred
percent of the training expenses described in subparagraph (iii) of this
paragraph, subject to a limitation of no more than four thousand dollars
per employee per year for such training expenses.
(ii) Qualified high-technology training shall include a course or
courses taken and satisfactorily completed by an employee of the taxpay-
er at an accredited, degree granting post-secondary college or universi-
ty in New York state that (A) directly relates to the activities
referred to in paragraph (b) of subdivision one of section thirty-one
hundred two-e of the public authorities law, and
(B) is intended to upgrade, retrain or improve the productivity or
theoretical awareness of the employee. Such course or courses may
include, but are not limited to, instruction or research relating to
techniques, meta, macro, or micro-theoretical or practical knowledge
bases or frontiers, or ethical concerns related to such activities. Such
course or courses shall not include classes in the disciplines of
management, accounting or the law or any class designed to fulfill the
discipline specific requirements of a degree program at the associate,
baccalaureate, graduate or professional level of these disciplines.
Satisfactory completion of a course or courses shall mean the earning
and granting of credit or equivalent unit, with the attainment of a
grade of "B" or higher in a graduate level course or courses, a grade of
"C" or higher in an undergraduate level course or courses, or a similar
measure of competency for a course that is not measured according to a
standard grade formula.
(iii) Qualified high-technology training expenditures shall include
expenses for tuition and mandatory fees, software required by the insti-
tution, fees for textbooks or other literature required by the institu-
tion offering the course or courses, minus applicable scholarships and
tuition or fee waivers not granted by the taxpayer or any affiliates of
the taxpayer, that are paid or reimbursed by the taxpayer. Qualified
high-technology expenditures do not include room and board, computer
hardware or software not specifically assigned for such course or cours-
es, late-charges, fines or membership dues and similar expenses. Such
qualified expenditures shall not be eligible for the credit provided by
A. 10679 26
this section unless the employee for whom the expenditures are disbursed
is continuously employed by the taxpayer in a full-time, full-year posi-
tion primarily located at a qualified site during the period of such
coursework and lasting through at least one hundred eighty days after
the satisfactory completion of the qualifying course-work. Qualified
high-technology training expenditures shall not include expenses for
in-house or shared training outside of a New York state higher education
institution or the use of consultants outside of credit granting cours-
es, whether such consultants function inside of such higher education
institution or not.
(iv) If a taxpayer relocates from an academic business incubator
facility partnered with an accredited post-secondary education institu-
tion located within New York state, which provides space and business
support services to taxpayers, to another site, the credit provided in
this section shall be allowed for all expenditures referenced in subpar-
agraph (iii) of this paragraph paid or incurred in the two preceding
taxable years that the taxpayer was located in such an incubator facili-
ty for employees of the taxpayer who also relocate from said incubator
facility to such New York site and are employed and primarily located by
the taxpayer in New York. Such expenditures in the two preceding years
shall be added to the amounts otherwise qualifying for the credit
provided by this subdivision that were paid or incurred in the taxable
year that the taxpayer relocates from such a facility. Such expendi-
tures shall include expenses paid for an eligible employee who is a
full-time, full-year employee of said taxpayer during the taxable year
that the taxpayer relocated from an incubator facility notwithstanding
(i) that such employee was employed full or part-time as an officer,
staff-person or paid intern of the taxpayer when such taxpayer was
located at such incubator facility or (ii) that such employee was not
continuously employed when such taxpayer was located at the incubator
facility during the one hundred eighty day period referred to in subpar-
agraph (iii) of this paragraph, provided such employee received wages or
equivalent income for at least seven hundred fifty hours during any
twenty-four month period when the taxpayer was located at the incubator
facility. Such expenditures shall include payments made to such employee
after the taxpayer has relocated from the incubator facility for quali-
fied expenditures if such payments are made to reimburse an employee for
expenditures paid by the employee during such two preceding years. The
credit provided under this subparagraph shall be allowed in any taxable
year that the taxpayer qualifies as an eligible taxpayer.
(v) For purposes of this subdivision the term "academic year" shall
mean the annual period of sessions of a post-secondary college or
university.
(vi) For the purposes of this subdivision the term "academic incubator
facility" shall mean a facility providing low-cost space, technical
assistance, support services and educational opportunities, including
but not limited to central services provided by the manager of the
facility to the tenants of the facility, to an entity located in New
York state. Such entity's primary activity must be an activity described
in paragraph (b) of subdivision one of section thirty-one hundred two-e
of the public authorities law, and such entity must be in the formative
stage of development. The academic incubator facility and the entity
must act in partnership with an accredited post-secondary college or
university located in New York state. An academic incubator facility's
mission shall be to promote job creation, entrepreneurship, technology
transfer, and provide support services to incubator tenants, including,
A. 10679 27
but not limited to, business planning, management assistance, finan-
cial-packaging, linkages to financing services, and coordinating with
other sources of assistance.
(f) An eligible taxpayer may claim credits under this subdivision for
four consecutive taxable years, except, if a taxpayer is located in an
academic incubator facility and relocates within New York state to a
nonacademic incubator site, then the taxpayer (i) may make a revocable
election to defer the credit provided under this subdivision to the
first taxable year beginning after the taxpayer relocates from an
academic incubator facility, and (ii) shall be eligible for such credit
for five consecutive taxable years. In no case shall the credit allowed
by this subdivision to a taxpayer exceed [two hundred and fifty] A
TOTAL OF FIVE HUNDRED thousand dollars per year UNDER PARAGRAPHS (C) AND
(D) OF THIS SUBDIVISION AND ONE HUNDRED THOUSAND DOLLARS PER YEAR UNDER
PARAGRAPH (E) OF THIS SUBDIVISION. IF THE TAXPAYER IS A PARTNER IN A
PARTNERSHIP OR SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE LIMIT
IMPOSED BY THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL,
SO THAT THE AGGREGATE CREDIT ALLOWED PER QUALIFIED SITE TO ALL PARTNERS
OF SHAREHOLDERS OF SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED FIVE
HUNDRED THOUSAND DOLLARS PER YEAR UNDER PARAGRAPHS (C) AND (D) OF THIS
SUBDIVISION AND ONE HUNDRED THOUSAND DOLLARS PER YEAR UNDER PARAGRAPH
(E) OF THIS SUBDIVISION.
(g) 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 subdi-
vision for any taxable year reduces the tax to such amount, any amount
of credit 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 eight-
y-eight of this chapter notwithstanding, no interest shall be paid ther-
eon.
[(h) The credit allowed under this subdivision shall not be applicable
for taxable years beginning on or after January first, two thousand
twelve.]
S 26. Subsection (nn) of section 606 of the tax law, as amended by
section 1-a of part A of chapter 63 of the laws of 2005, is amended to
read as follows:
(nn) Qualified emerging technology company facilities, operations and
training credit. (1) A taxpayer that is a qualified emerging technology
company pursuant to the provisions of section thirty-one hundred two-e
(and specifically for the activities referenced in paragraph (b) of
subdivision one of such section thirty-one hundred two-e) of the public
authorities law, and that meets the eligibility requirements in para-
graph two of this subsection, shall be allowed a credit against the tax
imposed by this article. The amount of credit shall be equal to the sum
(or pro rata share of the sum in the case of a partnership) of the
amounts specified in paragraphs three, four, and five of this
subsection, subject to the limitations in paragraph six of this
subsection.
(2) An eligible taxpayer shall (i) have no more than one hundred full-
time employees, of which at least seventy-five percent are employed in
New York state, EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH,
(ii) have a ratio of research and development funds to net sales, as
referred to in section thirty-one hundred two-e of the public authori-
A. 10679 28
ties law, which equals or exceeds six percent during its taxable year,
and
(iii) have gross revenues, along with the gross revenues of its affil-
iates and related members, not exceeding [twenty] FORTY million dollars
for the taxable year immediately preceding the year the taxpayer is
allowed a credit under this subsection. For purposes of this paragraph,
the term "related member" shall have the same meaning as set forth in
clauses (A) and (B) of subparagraph one of paragraph (o) of subdivision
[9] NINE of section two hundred eight of this chapter, and the term
"affiliates" shall mean those corporations that are members of the same
affiliated group (as defined in section fifteen hundred four of the
internal revenue code) as the taxpayer. FOR PURPOSES OF SUBPARAGRAPH
(I) OF THIS PARAGRAPH, EMPLOYEES WHO ARE EMPLOYED OUTSIDE THE UNITED
STATES DURING THE TAXABLE YEAR CANNOT BE CONSIDERED; A TAXPAYER THAT
MEETS THE EMPLOYMENT REQUIREMENTS IN SUBPARAGRAPH (I) OF THIS PARAGRAPH
IN THE FIRST YEAR IN WHICH THE CREDIT ALLOWED BY THIS SUBSECTION IS
CLAIMED WILL NOT BE CONSIDERED INELIGIBLE SOLELY AS A RESULT OF HAVING
MORE THAN ONE HUNDRED FULL-TIME EMPLOYEES IN OTHER TAXABLE YEARS IN
WHICH THE CREDIT IS CLAIMED, PROVIDED AT LEAST SEVENTY-FIVE PERCENT OF
THE FULL-TIME EMPLOYEES IN THE OTHER TAXABLE YEARS ARE EMPLOYED IN NEW
YORK STATE; AND AN INDIVIDUAL WHO IS A PARTNER IN A PARTNERSHIP THAT IS
A QUALIFIED EMERGING TECHNOLOGY COMPANY WILL BE CONSIDERED A FULL-TIME
EMPLOYEE IF THE INDIVIDUAL PARTNER PARTICIPATES IN THE PARTNERSHIP ON A
FULL-TIME BASIS DURING THE TAXABLE YEAR AND THE INVOLVEMENT OF THE INDI-
VIDUAL PARTNER IN THE ACTIVITIES OF THE PARTNERSHIP DURING THE TAXABLE
YEAR SATISFIES THE REQUIREMENTS FOR MATERIAL PARTICIPATION FOR THE SAME
TAXABLE YEAR WITHIN THE MEANING OF SUBSECTION (H) OF SECTION 469 OF THE
INTERNAL REVENUE CODE.
(3) An eligible taxpayer shall be allowed a credit for [eighteen]
THIRTY per centum of the cost or other basis for federal income tax
purposes of research and development property as defined in subparagraph
(B) of paragraph two of subsection (a) of this section that is acquired
by the taxpayer by purchase as defined in section 179(d) of the internal
revenue code and is placed in service during the taxable year. Provided,
however, for the purposes of this paragraph only, an eligible taxpayer
shall be allowed a credit for such percentage of the (i) cost or other
basis for federal income purposes for property used in the testing or
inspection of materials and products,
(ii) the costs or expenses associated with quality control of the
research and development,
(iii) fees for use of sophisticated technology facilities and proc-
esses, and
(iv) fees for production or eventual commercial distribution of mate-
rials and products resulting from the activities of an eligible taxpayer
as long as such activities fall under the activities listed in paragraph
(b) of subdivision one of section thirty-one hundred two-e of the public
authorities law. The costs, expenses and other amounts for which a cred-
it is allowed and claimed under this paragraph shall not be used in the
calculation of any other credit allowed under this article.
(4) An eligible taxpayer shall be allowed a credit for [nine] FIFTEEN
percentum of "qualified research expenses", paid or incurred by the
taxpayer in the taxable year. "Qualified research expenses" shall mean
expenses associated with in-house research, use of sophisticated tech-
nology facilities and processes, and costs associated with the dissem-
ination of the results of the products that directly result from such
research and development activities; provided, however, that such costs
A. 10679 29
shall not include advertising or promotion through media. In addition,
costs associated with the preparation of patent applications, patent
application filing fees, patent research fees, patent examinations fees,
patent post allowance fees, patent maintenance fees, and grant applica-
tion expenses and fees shall be eligible for such credit. In no case
shall the credit allowed by this paragraph apply to expenses for liti-
gation or the challenge of another entity's intellectual property
rights, or for contract expenses involving outside paid consultants.
(5) An eligible taxpayer shall be allowed a credit for qualified high-
technology training expenditures as described in this paragraph paid or
incurred by the taxpayer.
(a) The amount of credit shall be one hundred percent of the training
expenses described in subparagraph (c) of this paragraph, subject to a
limitation of no more than four thousand dollars per employee per year
for such training expenses.
(b) Qualified high-technology training shall include a course or
courses taken and satisfactorily completed by an employee of the taxpay-
er at an accredited, degree granting post-secondary college or universi-
ty in New York state that
(i) directly relates to the activities referred to in paragraph (b) of
subdivision one of section thirty-one hundred two-e of the public
authorities law, and
(ii) is intended to upgrade, retrain or improve the productivity or
theoretical awareness of the employee. Such course or courses may
include, but are not limited to, instruction or research relating to
techniques, meta, macro, or micro-theoretical or practical knowledge
bases or frontiers, or ethical concerns related to such activities. Such
course or courses shall not include classes in the disciplines of
management, accounting or the law or any class designed to fulfill the
discipline specific requirements of a degree program at the associate,
baccalaureate, graduate or professional level of these disciplines.
Satisfactory completion of a course or courses shall mean the earning
and granting of credit or equivalent unit, with the attainment of a
grade of "B" or higher in a graduate level course or courses, a grade of
"C" or higher in an undergraduate level course or courses, or a similar
measure of competency for a course that is not measured according to a
standard grade formula.
(c) Qualified high-technology training expenditures shall include
expenses for tuition and mandatory fees, and software required by the
institution, fees for textbooks or other literature required by the
institution offering the course or courses, minus applicable scholar-
ships and tuition or fee waivers not granted by the taxpayer or any
affiliate of the taxpayer, paid or reimbursed by the taxpayer. Quali-
fied high technology expenditures do not include room and board, comput-
er hardware or software not specifically assigned for such course or
courses, late-charges, fines or membership dues and similar expenses.
Such qualified expenditures shall not be eligible for the credit allowed
by this subsection unless the employee for whom the expenditures are
disbursed is continuously employed by the taxpayer in a full-time, full-
year position primarily located at a qualified site during the period of
such coursework and lasting through at least one hundred and eighty days
after the satisfactory completion of the qualifying course-work. Quali-
fied high-technology training expenditures shall not include expenses
for in house or shared training outside of a New York state higher
education institution or the use of consultants outside of credit grant-
A. 10679 30
ing courses whether such consultants function inside of such higher
education institution or not.
(d) If a taxpayer relocates from an academic business incubator facil-
ity partnered with an accredited post-secondary education institution
located within New York state, which provides space and business support
services to taxpayers, to another site, the credit provided in this
subsection shall be allowed for all expenditures referenced in subpara-
graph (c) of this paragraph paid or incurred in the two preceding taxa-
ble years that the taxpayer was located in such an incubator facility
for employees of the taxpayer who also relocate from said incubator
facility to such New York site and are employed and primarily located by
the taxpayer in New York. Such expenditures in the two preceding years
shall be added to the amounts otherwise qualifying for the credit
provided by this subsection that were paid or incurred in the taxable
year that the taxpayer relocated from such a facility. Such expenditures
shall include expenses paid or incurred for an eligible employee who is
a full-time, full-year employee of said taxpayer during the taxable year
that the taxpayer relocated from an incubator facility notwithstanding
(i) that such employee was employed full or part-time as an officer,
staff-person or paid intern of the taxpayer when such taxpayer was
located at such incubator facility or (ii) that such employee was not
continuously employed when such taxpayer was located at the incubator
facility during the one hundred eighty day period referenced in subpara-
graph (c) of this paragraph, provided such employee received wages or
equivalent income for at least seven hundred fifty hours during any
twenty-four month period when the taxpayer was located at the incubator
facility. Such expenditures shall include payments made to such an
employee after the taxpayer has relocated from the incubator facility
for qualified expenditures if such payments are made to reimburse such
an employee for qualified expenditures paid by the employee during such
two preceding years. The credit provided under this subparagraph shall
be allowed, in any year that said taxpayer qualifies as an eligible
taxpayer.
(e) For purposes of this subsection the term "academic year" shall
mean the annual period of sessions of a post-secondary college or
university.
(f) For the purposes of this subsection the term "academic incubator
facility" shall mean a facility providing low-cost space, technical
assistance, support services and educational opportunities, including
but not limited to central services provided by the manager of the
facility to the tenants of the facility, to an entity located in New
York state. Such entity's primary activity must be an activity described
in paragraph (b) of subdivision one of section thirty-one hundred two-e
of the public authorities law, and such entity must be in the formative
stage of development. The academic incubator facility and the entity
must act in partnership with an accredited post-secondary college or
university located in New York state. An academic incubator facility's
mission shall be to promote job creation, entrepreneurship, technology
transfer, and provide support services to incubator tenants, including,
but not limited to, business planning, management assistance, finan-
cial-packaging, linkages to financing services, and coordinating with
other sources of assistance.
(6) An eligible taxpayer may claim credits under this subsection for
four consecutive taxable years, except, if a taxpayer is located in an
academic incubator facility and relocates within New York state to a
nonacademic incubator site, then the taxpayer (i) may make a revocable
A. 10679 31
election to defer the credit provided under this subsection to the first
taxable year beginning after the taxpayer relocates from an academic
incubator facility, and (ii) shall be eligible for such credit for five
consecutive years. In no case shall the credit allowed by this
subsection to a taxpayer exceed [two hundred fifty] FIVE HUNDRED thou-
sand dollars per year UNDER PARAGRAPHS THREE AND FOUR OF THIS SUBSECTION
AND ONE HUNDRED THOUSAND DOLLARS PER YEAR UNDER PARAGRAPH FIVE OF THIS
SUBSECTION. IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR SHAREHOLD-
ER OF A NEW YORK S CORPORATION, THEN THE LIMIT IMPOSED BY THE PRECEDING
SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE
CREDIT ALLOWED PER QUALIFIED SITE TO ALL PARTNERS OF SHAREHOLDERS OF
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED FIVE HUNDRED THOUSAND
DOLLARS PER YEAR UNDER PARAGRAPHS THREE AND FOUR OF THIS SUBSECTION AND
ONE HUNDRED THOUSAND DOLLARS PER YEAR UNDER PARAGRAPH FIVE OF THIS
SUBSECTION.
(7) If the amount of 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.
[(8) The credit allowed under this subsection shall not be applicable
for taxable years beginning on or after January first, two thousand
twelve.]
S 27. The first undesignated paragraph of section 970-b of the general
municipal law, as added by chapter 916 of the laws of 1984 and such
section as renumbered by chapter 686 of the laws of 1986, is amended and
a new fourth undesignated paragraph is added to read as follows:
It is hereby found and declared that there exists in many communities
blighted areas which threaten the economic and social well-being of the
people of the state. Blighted areas are characterized by one or more of
the conditions set forth in subdivision (a) of section nine hundred
[sixty-c] SEVENTY-C of this article.
IT IS FURTHER FOUND AND DECLARED THAT SOUND DEVELOPMENT AND REDEVELOP-
MENT OF BLIGHTED AREAS INCREASES PUBLIC SCHOOL ENROLLMENT BY PROVIDING
AFFORDABLE HOUSING AND EMPLOYMENT OPPORTUNITIES AND THE NEED FOR
EXPANDED PUBLIC EDUCATION FACILITIES AND SERVICES.
S 28. Subdivisions (b) and (f) of section 970-c of the general munici-
pal law, as added by chapter 916 of the laws of 1984 and such section as
renumbered by chapter 686 of the laws of 1986, are amended and a new
subdivision (i) is added to read as follows:
(b) "Legislative body" means (I) the governing body of a municipality
empowered to adopt and amend local laws and ordinances[; provided,
however, that in the case of the city of New York, the legislative body
shall, for the purposes of this article be the board of estimate], AND
(II) THE BOARD OF EDUCATION OF A SCHOOL DISTRICT OF WHICH CONSENTS TO AN
ALLOCATION OF TAXES PRESCRIBED IN SECTION NINE HUNDRED SEVENTY-P OF THIS
ARTICLE.
(f) "Planning agency" means the planning board or commission of [the]
A municipality OR THE PLANNING BOARD OR COMMITTEE OF A SCHOOL DISTRICT.
(I) "SCHOOL DISTRICT" MEANS ANY SCHOOL DISTRICT, A CITY SCHOOL
DISTRICT OR A SCHOOL DISTRICT IN A CITY, AS THOSE TERMS ARE DEFINED IN
SECTION 2.00 OF THE LOCAL FINANCE LAW, WHICH APPROVES THE REDEVELOPMENT
PLAN AND CONSENTS TO AN ALLOCATION OF TAXES PRESCRIBED IN SECTION NINE
HUNDRED SEVENTY-P OF THIS ARTICLE.
S 29. Subdivisions (l) and (n) of section 970-f of the general munici-
pal law, as added by chapter 916 of the laws of 1984 and such section as
A. 10679 32
renumbered by chapter 686 of the laws of 1986, are amended and a new
subdivision (o) is added to read as follows:
(l) shall provide a limitation on the amount of bonds which may be
issued pursuant to section nine hundred [sixty-o] SEVENTY-O of this
article for the purpose of carrying out or administering the redevelop-
ment plan;
(n) shall provide a plan for the relocation of families and persons to
be temporarily or permanently displaced from housing facilities in the
project area, which plan shall include the provision required by section
nine hundred [sixty-j] SEVENTY-J OF THIS ARTICLE that no person or fami-
ly of low and moderate income shall be displaced unless and until there
is suitable housing available and ready for occupancy by such displaced
person or family at rents comparable to those paid at the time of their
displacement.
(O) MAY PROVIDE FOR THE CONSENT TO AND APPROVAL OF THE PROJECT AREA
AND THE REDEVELOPMENT PLAN BY THE BOARD OF EDUCATION OF THE SCHOOL
DISTRICT.
S 30. Subdivisions (b) and (c) of section 970-h of the general munici-
pal law, as added by chapter 916 of the laws of 1984 and such section as
renumbered by chapter 686 of the laws of 1986, are amended to read as
follows:
(b) Notice of the hearing shall be posted in at least four prominent
places within the project area for a period of three weeks prior to such
hearing and shall be published not less than once a week for three
successive weeks prior to the hearing in a newspaper of general circu-
lation in the municipality involved. The notice of hearing shall include
a legal description of the boundaries of the PROJECT area [or areas]
designated in the proposed redevelopment plan [and], a general statement
of the scope and objectives of the plan, AND A STATEMENT WHETHER ONE OR
MORE SCHOOL DISTRICTS HAVE CONSENTED TO AN ALLOCATION OF TAXES
PRESCRIBED IN SECTION NINE HUNDRED SEVENTY-P OF THIS ARTICLE. A copy of
the notices shall be mailed to the last known owner of each parcel of
land in the area designated in the redevelopment plan. A copy of the
notice shall also be mailed to the legislative body of each of the
taxing jurisdictions which levies taxes upon any real property in the
project area designated in the proposed redevelopment plan.
(c) Any and all persons who have any objections to the proposed rede-
velopment plan or who deny the existence of blight as defined by subdi-
vision (a) of section nine hundred [sixty-c] SEVENTY-C of this article,
in the proposed project area, or the legality or appropriateness of any
of the prior proceedings, may appear before the legislative body at such
public hearing and show cause why the proposed plan should not be
adopted. At any time not later than the hour set for hearing objections
to the proposed redevelopment plan, any person may file in writing with
the clerk of the legislative body a statement of such person's
objections to the proposed plan.
S 31. Section 970-m of the general municipal law, as added by chapter
916 of the laws of 1984 and as renumbered by chapter 686 of the laws of
1986, is amended to read as follows:
S 970-m. Amendment of redevelopment plan. If at any time after the
adoption of a redevelopment plan for a project area by the legislative
body, it becomes necessary or desirable to amend or modify such plan,
the legislative body may by resolution amend such plan. Such amendments
may include a change in the boundaries of the project area to add land
to or, prior to the issuance of indebtedness pursuant to section nine
hundred [sixty-o] SEVENTY-O OF THIS ARTICLE as provided by such redevel-
A. 10679 33
opment plan, exclude land from the project area. An amendment or modifi-
cation of the plan shall be approved pursuant to subdivisions (a)
through (g) of section nine hundred [sixty-h] SEVENTY-H of this article.
Upon adoption of the amended plan by the legislative body the legisla-
tive body shall transmit the amended plan as provided by subdivision (h)
of such section.
S 32. Paragraphs (iii), (iv) and (v) of subdivision (a) of section
970-n of the general municipal law, as added by chapter 916 of the laws
of 1984 and such section as renumbered by chapter 686 of the laws of
1986, are amended to read as follows:
(iii) If two or more municipalities jointly exercise the powers grant-
ed under this subdivision and a redevelopment plan as adopted provides
for the allocation of real property tax revenues pursuant to section
nine hundred [sixty-o] SEVENTY-O of this article the real property taxes
of each municipality shall be allocated pursuant to such section.
(iv) If two or more municipalities jointly exercise the powers granted
under this subdivision and the redevelopment plan as adopted provides
for the issuance of indebtedness pursuant to section nine hundred
[sixty-o] SEVENTY-O of this article, such indebtedness shall either be
issued jointly by the municipalities and the resolution authorizing the
issuance of such indebtedness must be approved by the legislative body
of each municipality acting separately or shall be issued by resolution
of the [the] designated agent on behalf of the municipality it repres-
ents and, by resolution of its legislative body, each municipality shall
irrevocably pledge the revenues allocated pursuant to section nine
hundred [sixty-p] SEVENTY-P of this article to the repayment of such
indebtedness and any interest thereon.
(v) The joint exercise of powers authorized by this subdivision shall
be permitted only for the purpose of redevelopment of an area located
wholly within each municipality AND WITHIN ONE OR MORE SCHOOL DISTRICTS.
S 33. Paragraphs (ii) and (iii) and subparagraph 1 of paragraph (v) of
subdivision (b) of section 970-n of the general municipal law, as added
by chapter 916 of the laws of 1984 and such section as renumbered by
chapter 686 of the laws of 1986, are amended to read as follows:
(ii) A municipal redevelopment authority shall be a corporate govern-
mental agency constituting a public benefit corporation. Except as
otherwise provided by special act of the legislature, an authority shall
consist of not less than five nor more than nine members. Membership
shall be apportioned among the municipalities AND SCHOOL DISTRICTS, and
the manner of selection of a chairman determined by an [intermunicipal]
agreement approved by local law by each such municipality, AND BY RESOL-
UTION OF THE BOARD OF EDUCATION OF EACH SCHOOL DISTRICT. Members shall
serve at the pleasure of the appointing authority, and each member shall
continue to hold office until his successor is appointed and has quali-
fied. The [governing] LEGISLATIVE body shall file with the secretary of
state a certificate of appointment or reappointment of any member
appointed or reappointed by it. Members shall receive no compensation
for their services but shall be entitled to reimbursement of the neces-
sary expenses, including traveling expenses, incurred in the discharge
of their duties. No action shall be taken by an authority except pursu-
ant to the favorable vote of a majority of the members then in office.
Any one or more of the members of an authority may be an official or an
employee of such municipality. In the event that an official or an
employee of such municipality shall be appointed as a member of the
agency, acceptance or retention of such appointment shall not be deemed
a forfeiture of his OR HER municipal office or employment, or incompat-
A. 10679 34
ible therewith or affect his OR HER tenure or compensation in any way.
The term of office of a member of an authority who is an official or an
employee of such municipality when appointed as a member thereof by
special act of the legislature creating the authority shall terminate at
the expiration of the term of his OR HER municipal office. Upon THE
creation of an authority, from time to time the [governing] LEGISLATIVE
body of a municipality OR A SCHOOL DISTRICT, may, by resolution, appro-
priate sums of money to defray the expenses of the authority.
(iii) Unless otherwise provided by this subdivision or by the special
act of the legislature establishing a municipal redevelopment authority
or empowering an existing public corporation to carry out the purposes
and provisions of this article, such authority or public corporation
shall have the powers, duties and responsibilities granted a munici-
pality AND SCHOOL DISTRICT and its legislative body pursuant to sections
nine hundred [sixty-d] SEVENTY-D through nine hundred [sixty-m] SEVEN-
TY-M of this article, as well as the authority to receive the taxes of
each municipality AND SCHOOL DISTRICT allocated and paid pursuant to
section nine hundred [sixty-p] SEVENTY-P of this article. Such authority
or public corporation shall have the power to designate survey areas and
select project areas as provided by sections nine hundred [sixty-d]
SEVENTY-D and nine hundred [sixty-e] SEVENTY-E of this article. Such
authority or public corporation shall obtain the report and recommenda-
tion of the planning agency of each municipality OR SCHOOL DISTRICT on
the redevelopment plan and its conformity to the master plan of each
municipality AND SCHOOL DISTRICT before presenting the redevelopment
plan to the legislative body of each municipality OR SCHOOL DISTRICT.
In order for a preliminary plan to be adopted or for a redevelopment
plan to be adopted or amended approval must be obtained by resolution of
the legislative body of each municipality AND SCHOOL DISTRICT acting
separately.
(1) An authority or public corporation shall have the powers and
duties granted municipalities pursuant to section nine hundred [sixty-o]
SEVENTY-O of this article to issue tax increment bonds and tax increment
bond anticipation notes. Such bonds and notes shall be bonds and notes
of the authority or public corporation and neither the state nor any
municipality shall be liable on such bonds and notes and such bonds and
notes shall not be a debt of the state or of any municipality.
S 34. Subdivisions (a), (b), (g) and (i) of section 970-o of the
general municipal law, as added by chapter 916 of the laws of 1984 and
such section as renumbered by chapter 686 of the laws of 1986, are
amended and a new subdivision (j) is added to read as follows:
(a) For the purpose of carrying out or administering a redevelopment
plan adopted by the legislative body, a municipality is hereby author-
ized, without limiting its authority under other provisions of law, to
issue by resolution of its legislative body tax increment bonds or tax
increment bond anticipation notes of the municipality which are payable
from and secured by real property taxes, in whole or in part, allocated
to and paid pursuant to the provisions of section nine hundred [sixty-p]
SEVENTY-P of this article. The pledge of such real property taxes allo-
cated and paid shall constitute a first lien on the revenues derived
therefrom and tax increment bonds or tax increment bond anticipation
notes, the repayment of which is secured by such revenues shall not be
subordinate to any other indebtedness of the municipality with respect
to the pledge of such revenues. The municipality shall have the power to
issue renewal notes, to issue bonds to pay notes and whenever it deems
refunding expedient, to refund any bonds by the issuance of new bonds,
A. 10679 35
whether the bonds to be refunded have or have not matured, and to issue
bonds partly to refund bonds then outstanding and partly for any other
purposes.
(b) In contracting indebtedness pursuant to subdivision (a) of this
section NEITHER a municipality NOR A SCHOOL DISTRICT shall [not] pledge
its faith and credit or the faith and credit of the state to the payment
of THE principal thereof and the interest thereon. INDEBTEDNESS REFERRED
TO IN SECTION SIX OF ARTICLE XVI OF THE STATE CONSTITUTION SHALL NOT
APPLY TO A SCHOOL DISTRICT.
(g) The amount of any indebtedness contracted under this section shall
be excluded in ascertaining the power of the municipality OR SCHOOL
DISTRICT to contract indebtedness within the provisions of the state
constitution or the local finance law relating thereto.
(i) The municipality may [only] contract indebtedness pursuant to this
section for the following objects [and] OR purposes, EACH OF WHICH SHALL
BE A PUBLIC USE AND A PUBLIC PURPOSE:
(i) acquisition AND ASSEMBLAGE of land INCLUDING ENVIRONMENTAL REMEDI-
ATION AND BROWNFIELD REDEVELOPMENT AUTHORIZED IN THE ENVIRONMENTAL
CONSERVATION LAW;
(ii) demolition and removal of buildings, structures and improvements
and site preparation;
(iii) installation, construction or reconstruction of streets, walk-
ways, docks, drainage, parking facilities, flood control facilities,
water and sewer systems and other [public] utilities, parks and play-
grounds;
(iv) other public improvements or services integral to the redevelop-
ment plan authorized by or for which a period of probable usefulness has
been established by section 11.00 of the local finance law. [Such
objects] OBJECTS and purposes REFERRED TO IN THIS SUBDIVISION shall be
deemed to have the period of probable usefulness as provided GENERALLY
for such objects and purposes by such section.
(J) IN ADDITION TO THE ALLOCATION OF TAXES AUTHORIZED IN SECTION NINE
HUNDRED SEVENTY-P OF THIS ARTICLE, INDEBTEDNESS AUTHORIZED PURSUANT TO
THIS SECTION MAY BE SECURED BY A MUNICIPALITY AS FOLLOWS:
(I) PURSUANT TO SECTION ONE HUNDRED NINETEEN-O OF THIS CHAPTER, A
MUNICIPALITY MAY BY RESOLUTION OF ITS GOVERNING BOARD, PLEDGE A PORTION
OF THE SALES TAX RECEIVED IN ANY FISCAL YEAR PURSUANT TO SECTION TWELVE
HUNDRED SIXTY-ONE OF THE TAX LAW FROM BUSINESSES OPERATING IN THE
PROJECT AREA AND BENEFITTING FROM THE REDEVELOPMENT PLAN TO THE PAYMENT
OF THE PRINCIPAL OF AND INTEREST ON SUCH INDEBTEDNESS;
(II) A MUNICIPALITY MAY ESTABLISH AN ASSESSMENT AREA, PURSUANT TO THE
PROCEDURES IN SECTION 22-2200 OF THE VILLAGE LAW TO ACCESS PARCELS IN
THE PROJECT AREA AS BENEFITED PROPERTIES IN THE AMOUNTS AND IN THE YEARS
EQUAL TO THE ALLOCATION OF TAXES PROJECTED TO BE COLLECTED AS DETERMINED
UNDER SECTION NINE HUNDRED SEVENTY-P OF THIS ARTICLE.
S 35. Paragraph (i) of subdivision (d) of section 970-o of the general
municipal law, as added by chapter 916 of the laws of 1984 and such
section as renumbered by chapter 686 of the laws of 1986, is amended to
read as follows:
(i) pledging all or a part of the taxes allocated pursuant to section
nine hundred [sixty-p] SEVENTY-P of this article or the proceeds from
the sale of property acquired with the proceeds of such notes or bonds
to secure the payment of such notes or bonds or of any issue thereof,
subject to such agreements with bondholders or noteholders as may exist;
A. 10679 36
S 36. Section 970-p of the general municipal law, as added by chapter
916 of the laws of 1984 and as renumbered by chapter 686 of the laws of
1986, is amended to read as follows:
S 970-p. Allocation of taxes. (a) Any redevelopment plan may contain a
provision that real property taxes levied upon taxable real property in
the project area each year by or for the benefit of the municipality or
municipalities AND SCHOOL DISTRICTS after the effective date of the
resolution approving the redevelopment plan, shall be divided as
follows:
(i) that portion of the real property taxes not in excess of the
amount which would be produced by applying the rate upon which the tax
is levied each year by or for each municipality AND SCHOOL DISTRICT to
the total sum of the assessed value of the taxable real property in the
project area as shown upon the assessment roll used in connection with
the taxation of such property by such municipality AND SCHOOL DISTRICT,
last adopted prior to the effective date of the resolution approving
such plan, shall be allocated to and when collected shall be paid into
the funds of the respective municipalities AND SCHOOL DISTRICTS as real
property taxes collected by or for said municipalities AND SCHOOL
DISTRICTS adopting the redevelopment plan;
(ii) that portion of the real property taxes levied each year in
excess of the portion allocated and paid pursuant to paragraph (i) of
this subdivision shall be allocated to and when collected shall be paid
into the fund or funds established for such purposes to pay the princi-
pal and interest on indebtedness incurred by such municipality OR SCHOOL
DISTRICT pursuant to section nine hundred [sixty-o] SEVENTY-O of this
article or, if the redevelopment plan so provides, the amount allocated
and paid in excess of interest and principal and necessary reserves may
be expended for amounts of money to be paid in lieu of taxes. Unless and
until the total assessed valuation of the taxable property in a project
area exceeds the total assessed value of the taxable real property in
such project area as shown by the last assessment roll referred to in
paragraph (i) of this subdivision, all of the real property taxes levied
and collected upon the taxable real property in such project area shall
be paid into the funds of the respective municipalities AND SCHOOL
DISTRICTS. When such indebtedness, if any and interest thereon, have
been paid, all moneys thereafter received from real property taxes upon
the taxable real property in such project area shall be paid into the
funds of the respective municipalities AND SCHOOL DISTRICTS as real
property taxes on all other real property are paid;
(iii) whenever the total amount of real property taxes allocated
pursuant to paragraph (ii) of this subdivision exceeds the amounts allo-
cated and paid for interest and principal and necessary reserves, and
for amounts to be paid in lieu of taxes, the amount of taxes in excess
of such amounts shall be paid into the funds of the respective munici-
palities as taxes on all other real property are paid;
(iv) the allocation of taxes authorized by this section (1) shall
apply to taxable years beginning after the effective date of the resol-
ution approving the redevelopment plan, AND
(2) SHALL BE ESTIMATED BY THE APPROPRIATE REAL PROPERTY ASSESSMENT
OFFICER PRIOR TO THE ISSUANCE OF SUCH INDEBTEDNESS FOR EACH YEAR THE
INDEBTEDNESS TO BE INCURRED BY SUCH MUNICIPALITY PURSUANT TO SECTION
NINE HUNDRED SEVENTY-O OF THIS ARTICLE IS SCHEDULED TO BE OUTSTANDING IN
AN AMOUNT SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SUCH
INDEBTEDNESS IN EACH YEAR REAL PROPERTY TAXES OF THE MUNICIPALITY OR THE
SCHOOL DISTRICT LEVIED UPON TAXABLE PROPERTY IN THE PROJECT AREA IS
A. 10679 37
DIVIDED PURSUANT TO THIS SECTION. DURING THE PERIOD SUCH INDEBTEDNESS IS
OUTSTANDING, THE APPROPRIATE REAL PROPERTY ASSESSMENT OFFICER SHALL
ENDEAVOR IN GOOD FAITH TO DETERMINE ASSESSED VALUES ON PARCELS IN THE
PROJECT AREA TO ACHIEVE SUCH ESTIMATE IN EACH SUCH YEAR. UPON REQUEST BY
A MUNICIPALITY OR SCHOOL DISTRICT, THE OFFICE OF REAL PROPERTY SERVICES
SHALL PROVIDE GUIDANCE ON METHODOLOGIES FOR ASSESSMENTS AND/OR REVIEW
SUCH ESTIMATES.
(b) [Whenever real property in any redevelopment project has been
redeveloped and thereafter is leased by the municipality to any person
or persons or whenever the agency leases real property in any redevelop-
ment project to any person or persons for redevelopment, the property
shall be assessed and taxed in the same manner as privately owned real
property and the lease or contract shall provide that the lessee shall
pay real property taxes upon the assessed value of the entire real prop-
erty and not merely the assessed value of his or her leasehold interest.
(c)] In any municipality OR SCHOOL DISTRICT subject to the allocation
of revenues pursuant to this section the assessed value of taxable real
property located in a project area shall be included on the taxable
portion of the assessment roll, provided, however, that notwithstanding
any provision of law to the contrary, the assessed value determined in
accordance with paragraph (ii) of subdivision (a) of this section shall
not be included in the taxable value of real property when determining
the tax rate for such municipality OR SCHOOL DISTRICT.
[(d)] (C) The rate of tax resulting from the levy of real property
taxes shall be applied to the assessed value of any real property
subject to the allocation provisions of this section as determined
pursuant to subdivision (a) of this section, however, the amount of tax
levied as a result of the application of the tax rate to the increase in
assessed value determined in accordance with paragraph (ii) of subdivi-
sion (a) of this section shall not be paid into the fund of the munici-
pality OR THE SCHOOL DISTRICT as real property taxes but shall be allo-
cated pursuant to that paragraph.
[(e)] (D) The official or officials responsible for the preparation of
the assessment roll or rolls specified in subdivision (a) of this
section shall provide to the municipality or municipalities AND SCHOOL
DISTRICTS, in addition to the assessment roll or rolls, such information
as is deemed necessary by the legislative bodies of the municipality or
municipalities AND SCHOOL DISTRICTS to effectuate the purpose of this
section.
[(f)] (E) The allocation of real property taxes authorized by this
section shall be permitted only with respect to municipalities AND
SCHOOL DISTRICTS which have adopted a redevelopment plan providing for
such allocation pursuant to section nine hundred [sixty-h] SEVENTY-H or
section nine hundred [sixty-n] SEVENTY-N of this article and such allo-
cation shall not apply to special ad valorem levies and special assess-
ments as defined by subdivisions fourteen and fifteen of section one
hundred two of the real property tax law, EXCEPT AS PROVIDED IN SUBDIVI-
SION (J) OF SECTION NINE HUNDRED SEVENTY-O OF THIS ARTICLE.
[(g)] (F) If, after adoption of a redevelopment plan, the official or
officials responsible for the preparation of the assessment roll or
rolls specified in subdivision (a) of this section undertake to revalue
real property for real property tax purposes by altering the standard of
assessment utilized to establish the value of real property for assess-
ment purposes, the assessment of real property within a project area as
provided by paragraph (i) of subdivision (a) of this section shall be
adjusted in such manner as if such new standard of assessment had been
A. 10679 38
utilized in the preparation of the assessment roll last adopted prior to
adoption of the redevelopment plan.
(G) WITH RESPECT TO A SCHOOL DISTRICT WHICH CONSENTS TO AN ALLOCATION
OF TAXES PRESCRIBED IN THIS SECTION, THE OBJECT OR PURPOSE OF WHICH SUCH
INDEBTEDNESS MAY BE INCURRED BY A MUNICIPALITY SHALL BE A SCHOOL BUILD-
ING. HOWEVER, THERE SHALL BE NO APPORTIONMENT OF PUBLIC MONEYS UNDER
SECTION THREE THOUSAND SIX HUNDRED ONE OF THE EDUCATION LAW WITH RESPECT
TO SUCH ALLOCATION OF TAXES LEVIED BY A SCHOOL DISTRICT.
(H) IN ESTABLISHING A UNIFORM TAX EXEMPTION POLICY PURSUANT TO SECTION
EIGHT HUNDRED SEVENTY-FOUR OF THIS CHAPTER, AN AGENCY SHALL NOT TAKE
INTO ACCOUNT THE PORTION OF REAL PROPERTY TAXES MEASURED UNDER PARAGRAPH
(II) OF SUBDIVISION (A) OF THIS SECTION IN COMPUTING A PAYMENT IN LIEU
OF TAXES AGREEMENT.
S 37. Section 2975-a of the public authorities law is REPEALED.
S 38. All monies paid by or on behalf of any industrial development
agency or authority to reimburse to New York state an allocable share of
state governmental costs attributable to the provisions of services to
the industrial development agencies as determined in former section
2975-a of the public authorities law shall be reimbursed to the paying
entity within ninety days of the effective date of this act.
S 39. This act shall take effect immediately.
Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.
Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.
Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.