S T A T E O F N E W Y O R K
________________________________________________________________________
2058
2009-2010 Regular Sessions
I N A S S E M B L Y
January 15, 2009
___________
Introduced by M. of A. PARMENT -- read once and referred to the Commit-
tee on Energy
AN ACT to amend the general municipal law and the tax law, in relation
to making municipal clean energy research and development enterprises
eligible for the qualified empire zone enterprise tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (a) of section 963 of the general municipal
law, as amended by chapter 161 of the laws of 2005, is amended to read
as follows:
(a) The local empire zone certification officer shall not serve on the
local empire zone administrative board and shall, pursuant to regu-
lations promulgated pursuant to this article, certify in conjunction
with the commissioner and the commissioner of labor, those business
enterprises which have been approved for certification by the zone
administrative board as eligible to receive benefits referred to in
section nine hundred sixty-six of this article; provided, however, that
such certification shall be governed by criteria including, but not
limited to, (i) whether the business enterprise, if certified, is
reasonably likely to create new employment or prevent a loss of employ-
ment in the zone, (ii) whether such new employment opportunities will be
for individuals who will perform a substantial part of their employment
activities in the zone, (iii) whether certification will have the unde-
sired effect of causing individuals to transfer from existing employment
with another business enterprise to similar employment with the business
enterprise so certified, and transferring existing employment from one
or more other municipalities, towns or villages in the state, or trans-
ferring existing employment from one or more other businesses in the
zone, (iv) whether such enterprise is likely to enhance the economic
climate of the zone, (v) whether such business enterprise, during the
three years preceding the submission of an application for certif-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04735-01-9
A. 2058 2
ication, has engaged in a substantial violation or a pattern of
violations of laws regulating environmental protection, unemployment
insurance, workers compensation, public work, child labor, employment of
minorities and women, safety and health, or other laws for the
protection of workers as determined by final judgment of a judicial or
administrative proceeding; PROVIDED, HOWEVER, FOR THE PURPOSES OF
SECTION FIFTEEN OF THE TAX LAW, A MUNICIPAL CORPORATION SHALL BE DEEMED
A BUSINESS ENTERPRISE ELIGIBLE FOR CERTIFICATION WITH RESPECT TO A CLEAN
ENERGY RESEARCH AND DEVELOPMENT ENTERPRISE; and provided further, howev-
er, that any business enterprise that applies for any tax, utility rate,
or management assistance benefits provided by this article shall provide
ninety days written notice to the commissioner, the local empire zone
certification officer, the local empire zone administrative board and
the employees of such business enterprise of any intent to close or
partially close a facility within the empire zone. For the purposes of
this subdivision, "closing" shall mean the permanent termination of
employment at a business facility, and "partial closing" shall mean the
permanent termination of a portion of the employment at a business
facility that will either immediately reduce the work force by at least
fifty employees or will reduce the work force by at least fifty percent
over a one-year period, (vi) whether such business will meet the
requirements of the cost benefit analysis as established in this arti-
cle, and (vii) if the certification officer, the commissioner, and the
commissioners of taxation and finance and of labor establish that the
business enterprise has been found in a criminal proceeding to have
violated, in the previous three years, any of the laws referred to in
paragraph (v) of this subdivision or regulations promulgated pursuant to
such laws, the conditions of any permit issued thereunder, or similar
statute, regulation, order or permit condition of any other government
agency, foreign or domestic, the certification officer in conjunction
with the commissioners of taxation and finance and of labor, such busi-
ness shall not be certified.
S 2. Section 14 of the tax law is amended by adding a new subdivision
(a-1) to read as follows:
(A-1) MUNICIPAL CLEAN ENERGY RESEARCH AND DEVELOPMENT ENTERPRISE. FOR
PURPOSES OF A CLEAN ENERGY RESEARCH AND DEVELOPMENT ENTERPRISE, WHICH IS
CERTIFIED UNDER ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW AND IS
OWNED AND OPERATED BY A MUNICIPAL CORPORATION, THE PROVISIONS OF THIS
SECTION AND SECTION FIFTEEN OF THIS ARTICLE SHALL BE DEEMED TO ONLY
APPLY TO SUCH ENTERPRISE AND SHALL NOT APPLY TO THE MUNICIPAL CORPO-
RATION.
S 3. Subdivision (a) of section 15 of the tax law, as amended by
section 5 of part A of chapter 63 of the laws of 2005, is amended to
read as follows:
(a) Allowance of credit. A taxpayer which is a qualified empire zone
enterprise (QEZE), or which is a sole proprietor of a QEZE or a member
of a partnership which is a QEZE, and which is subject to tax under
article nine-A, twenty-two, thirty-two or thirty-three of this chapter,
shall be allowed a credit against such tax, pursuant to the provisions
referenced in subdivision (h) of this section, for eligible real proper-
ty taxes. PROVIDED, HOWEVER, THAT FOR THE PURPOSES OF A CLEAN ENERGY
RESEARCH AND DEVELOPMENT ENTERPRISE, A MUNICIPAL CORPORATION MAY QUALIFY
FOR THE REFUND OF THE CREDIT PROVIDED BY THIS SECTION WITH RESPECT TO
ANY REAL PROPERTY TAX EQUIVALENT PAID BY SUCH MUNICIPAL CORPORATION FOR
SAID ENTERPRISE.
S 4. This act shall take effect immediately.