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

                                  3046

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 22, 2009
                               ___________

Introduced  by  M.  of A. KOLB, OAKS, CALHOUN, O'MARA, SAYWARD, REILICH,
  FINCH, P. LOPEZ -- Multi-Sponsored by -- M. of  A.  BACALLES,  BUTLER,
  CONTE,  DUPREY,  ERRIGO,  MOLINARO,  QUINN,  WALKER  --  read once and
  referred to the  Committee  on  Economic  Development,  Job  Creation,
  Commerce and Industry

AN  ACT  to  amend  the  economic  development  law  and the tax law, in
  relation to establishing the manufacturing preservation  and  enhance-
  ment  act  (Part A); to amend the economic development law and the tax
  law, in relation to establishing the office  of  the  New  York  state
  homeshoring  initiative  (Part B); to amend the general municipal law,
  in relation to the decertification of business enterprises due to  the
  outsourcing of jobs (Part C); and to amend the tax law, in relation to
  tax exemptions for manufacturers (Part D)

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

  Section 1. This act enacts into law major  components  of  legislation
relating  to  the  manufacturing  preservation and enhancement act. Each
component is wholly contained  within  a  Part  identified  as  Parts  A
through  D.  The  effective date for each particular provision contained
within such Part is set forth in the last  section  of  such  Part.  Any
provision  in  any section contained within a Part, including the effec-
tive date of the Part, which makes a reference to  a  section  "of  this
act",  when  used in connection with that particular component, shall be
deemed to mean and refer to the corresponding section  of  the  Part  in
which  it  is  found.  Section  three of this act sets forth the general
effective date of this act.

                                 PART A

  Section 1. The economic development law is amended  by  adding  a  new
article 15 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05088-01-9
              

A. 3046                             2

                               ARTICLE 15
             MANUFACTURING PRESERVATION AND ENHANCEMENT ACT
SECTION 270. DEFINITIONS.
        271. MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM.
        272. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS.
        273. REPORTING.
  S  270.  DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTENT  SHALL  INDI-
CATE ANOTHER OR DIFFERENT MEANING OR INTENT:
  1. "PROGRAM" SHALL MEAN THE MANUFACTURING PRESERVATION AND ENHANCEMENT
PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
  2.  "MANUFACTURING FIRM" SHALL MEAN AN ENTERPRISE, INCLUDING CORPORATE
ENTITIES, PARTNERSHIPS AND SOLE PROPRIETORS, ENGAGED IN THE BUSINESS  OF
PRODUCTION OF GOODS AND PRODUCTS FROM RAW MATERIALS.
  3.  "BENCHMARK"  SHALL  MEAN  A  SPECIFIC  NUMBER OF ELIGIBLE NEW JOBS
CREATED IN THE STATE PURSUANT TO THE PROGRAM.
  4. "MEI" SHALL MEAN THE MANUFACTURING ENHANCEMENT INCENTIVE PROGRAM.
  S 271. MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM.   1.  THERE
IS  HEREBY  CREATED A MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM
WITHIN THE DEPARTMENT TO PROVIDE TECHNICAL AND FINANCIAL  ASSISTANCE  IN
THE  FORM  OF  TAX INCENTIVES TO MANUFACTURING FIRMS THAT MEET SPECIFIED
BENCHMARKS IN JOB CREATION AS ESTABLISHED BY THE COMMISSIONER.
  2. THE  COMMISSIONER  SHALL  DETERMINE  ELIGIBILITY  REQUIREMENTS  FOR
PARTICIPATION  IN THE PROGRAM, PROVIDED, HOWEVER, THAT SUCH REQUIREMENTS
SHALL INCLUDE THE FOLLOWING:
  (A) AN APPLICANT TO THE PROGRAM MAY NOT PARTICIPATE IN THE PROGRAM  IF
DESIGNATED  AS  A  CERTIFIED  BUSINESS LOCATED IN AN EMPIRE ZONE CREATED
PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW; AND
  (B) AN APPLICANT THAT HAS PREVIOUSLY PARTICIPATED IN THE  PROGRAM  MAY
NOT REAPPLY FOR PARTICIPATION IN THE PROGRAM UNLESS IT CAN DOCUMENT THAT
AT  THE TIME OF ITS REAPPLICATION FOR PARTICIPATION, IT HAS MAINTAINED A
LEVEL OF EMPLOYMENT AT LEAST AS GREAT  AS  THE  HIGHEST  LEVEL  REQUIRED
DURING ITS PREVIOUS PARTICIPATION IN THE PROGRAM.
  3.  APPLICATIONS  FOR  PARTICIPATION  IN THE MEI SHALL BE SUBMITTED BY
EACH MANUFACTURING FIRM SEEKING TO PARTICIPATE IN THE PROGRAM, AND SHALL
BE IN THE FORM AND CONTAIN SUCH  INFORMATION,  EXHIBITS  AND  SUPPORTING
DATA  AS  THE  COMMISSIONER  MAY  PRESCRIBE. NO APPLICATIONS FOR PARTIC-
IPATION SHALL BE ACCEPTED  AFTER  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
SEVENTEEN.
  4.  MANUFACTURING  FIRMS  INTERESTED IN PARTICIPATING IN THE MEI SHALL
SUBMIT AN APPLICATION TO THE PROGRAM. THE COMMISSIONER SHALL REVIEW  ALL
APPLICATIONS  FOR PARTICIPATION IN THE PROGRAM FOR ELIGIBILITY AND SHALL
REGISTER ELIGIBLE APPLICANTS. THE COMMISSIONER SHALL PROVIDE EACH REGIS-
TERED APPLICANT WITH BENCHMARKS IN JOB CREATION THAT MUST BE ACHIEVED BY
THE REGISTERED APPLICANT OVER THE FOLLOWING FIVE YEARS. SUCH  BENCHMARKS
SHALL BE CONSISTENT WITH REGULATIONS TO BE PRESCRIBED BY THE COMMISSION-
ER. ANNUALLY, EACH REGISTERED APPLICANT SHALL SUBMIT TO THE COMMISSIONER
A  REGISTRATION  STATEMENT, TOGETHER WITH SUCH INFORMATION, EXHIBITS AND
SUPPORTING DATA AS THE COMMISSIONER MAY REQUIRE. UPON SUBMISSION OF  THE
FIFTH  ANNUAL  REGISTRATION STATEMENT, THE COMMISSIONER SHALL REVIEW THE
REGISTERED APPLICANT'S FILE FOR ELIGIBILITY FOR THE TAX  INCENTIVES.  IF
THE  REGISTERED  APPLICANT  HAS  MET  THE  REQUIRED  BENCHMARKS  IN  JOB
CREATION, THE COMMISSIONER SHALL PROVIDE A CERTIFICATE,  VALID  FOR  THE
SUCCEEDING  TWO  TAX  YEARS, CERTIFYING THAT THE REGISTERED APPLICANT IS
ELIGIBLE FOR TAX CREDITS PURSUANT TO THIS ARTICLE. THE  MEI  CERTIFICATE
SHALL  INCLUDE  A  DESCRIPTION OF THE PROPERTY ELIGIBLE FOR THE PROPERTY

A. 3046                             3

TAX BENEFIT AND SHALL SPECIFY THE EMPLOYMENT LEVEL AND TOTAL  AMOUNT  OF
EMPLOYEE GROSS SALARY ELIGIBLE FOR THE WAGE CREDIT.
  S  272. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS. DURING
THE TWO-YEAR CERTIFICATION PERIOD, CERTIFIED MANUFACTURING  FIRMS  SHALL
BE ELIGIBLE TO RECEIVE THE FOLLOWING TAX CREDITS:
  1.  AN  MEI  PROPERTY  TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO
SECTION SEVEN HUNDRED OF THE TAX LAW;
  2. AN MEI WAGE TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO SECTION
SEVEN HUNDRED ONE OF THE TAX LAW; AND
  3. AN MEI ENERGY TAX CREDIT,  WHICH  SHALL  BE  COMPUTED  PURSUANT  TO
SECTION SEVEN HUNDRED TWO OF THE TAX LAW.
  S  273.  REPORTING.  THE  COMMISSIONER  SHALL,  ON OR BEFORE SEPTEMBER
FIRST, TWO THOUSAND ELEVEN, AND ANNUALLY THEREAFTER, SUBMIT A REPORT  TO
THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE MINORITY LEADER OF THE SENATE AND THE MINORITY  LEADER  OF
THE  ASSEMBLY  ON  THE  OPERATION  AND  ACCOMPLISHMENTS  OF  THE PROGRAM
PROVIDED FOR PURSUANT TO THIS ARTICLE.
  S 2. The tax law is amended by adding a new  article  23  to  read  as
follows:
                               ARTICLE 23
             MANUFACTURING PRESERVATION AND ENHANCEMENT ACT
SECTION 700. MEI PROPERTY TAX CREDIT.
        701. MEI WAGE TAX CREDIT.
        702. MEI ENERGY TAX CREDIT.
  S  700.  MEI  PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
RECEIVING AN MEI CERTIFICATE ISSUED PURSUANT TO ARTICLE FIFTEEN  OF  THE
ECONOMIC  DEVELOPMENT  LAW, AND THAT OR WHO IS SUBJECT TO PROPERTY TAXES
UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF  THIS  CHAPTER,  SHALL  BE
ALLOWED  A  CREDIT  AGAINST  THE  PROPERTY  TAXES ASSESSED UNDER ARTICLE
NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX  YEARS  THAT
THE  CERTIFICATE  IS  VALID, PROVIDED, AND TO THE EXTENT THAT, THE TAXES
ASSESSED  CONSTITUTE  ELIGIBLE  REAL  PROPERTY  TAXES  AS   DEFINED   IN
SUBSECTION (B) OF THIS SECTION. THE CREDIT SHALL BE COMPUTED PURSUANT TO
THE PROVISIONS OF SUBSECTION (C) OF THIS SECTION.
  (B) DEFINITION. THE TERM "ELIGIBLE REAL PROPERTY TAXES" SHALL MEAN TAX
IMPOSED  ON REAL PROPERTY WHICH HAS BEEN CERTIFIED AS MEI ELIGIBLE PROP-
ERTY PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT  LAW.    IN
ADDITION,  THE  TERM "ELIGIBLE REAL PROPERTY TAXES" INCLUDES PAYMENTS IN
LIEU OF TAXES MADE BY THE TAXPAYER TO THE STATE, A MUNICIPAL CORPORATION
OR A PUBLIC BENEFIT CORPORATION PURSUANT TO A WRITTEN AGREEMENT  ENTERED
INTO  BY  THE  TAXPAYER  AND  THE STATE, MUNICIPAL CORPORATION OR PUBLIC
BENEFIT CORPORATION.
  (C) COMPUTATION OF  PROPERTY  TAX  CREDIT.  THE  PROPERTY  TAX  CREDIT
DESCRIBED  IN  THIS  SECTION SHALL BE A FLAT TEN PERCENT OF THE PROPERTY
TAX ASSESSED.
  S 701. MEI WAGE TAX  CREDIT.  (A)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER
RECEIVING  AN  MEI  CERTIFICATE THAT HAS BEEN ISSUED PURSUANT TO ARTICLE
FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO IS  SUBJECT  TO
TAXES  UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL
BE ALLOWED A CREDIT AGAINST THE TAXES ASSESSED UNDER ARTICLE  NINE-A  OR
ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT THE CERTIF-
ICATE  IS VALID. THE CREDIT SHALL BE COMPUTED PURSUANT TO THE PROVISIONS
OF SUBSECTION (C) OF THIS SECTION.
  (B) DEFINITIONS. THE TERM "ELIGIBLE WAGES" SHALL MEAN THE TOTAL AMOUNT
OF EMPLOYEE GROSS SALARY ELIGIBLE FOR  THE  WAGE  TAX  CREDIT,  AS  SUCH

A. 3046                             4

AMOUNT  IS  SPECIFIED  IN THE MEI CERTIFICATE ISSUED PURSUANT TO ARTICLE
FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW.
  (C)  COMPUTATION  OF WAGE TAX CREDIT. (1) DURING THE FIRST TAX YEAR OF
THE TWO-YEAR PERIOD FOR WHICH A VALID MEI CERTIFICATE  HAS  BEEN  ISSUED
PURSUANT  TO  ARTICLE  FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, PROVIDED
THE TAXPAYER HAS MAINTAINED THE EMPLOYMENT AND  ELIGIBLE  WAGE  REQUIRE-
MENTS SPECIFIED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC
DEVELOPMENT  LAW, THE TAXPAYER SHALL BE ALLOWED A CREDIT OF ONE AND ONE-
HALF PERCENT OF THE TOTAL AMOUNT OF THE ELIGIBLE WAGES ACTUALLY PAID  BY
THE TAXPAYER. IF THE TAXPAYER INCREASES EMPLOYMENT DURING THIS TAX YEAR,
AND  EXCEEDS  THE  LEVEL OF EMPLOYMENT REQUIRED BY THE MEI AS DEFINED IN
ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, HIRING AND  MAINTAINING
ADDITIONAL  EMPLOYEES  AND  PAYING  ADDITIONAL  WAGES OVER AND ABOVE THE
ELIGIBLE WAGES AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CRED-
IT OF TWO AND ONE-HALF PERCENT OF THE TOTAL AMOUNT BY  WHICH  THE  WAGES
ACTUALLY  PAID  AS  A RESULT OF THE INCREASED LEVEL OF EMPLOYMENT EXCEED
THE ELIGIBLE WAGES.
  (2) DURING THE SECOND TAX YEAR OF THE  TWO-YEAR  PERIOD  FOR  WHICH  A
VALID MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE
ECONOMIC  DEVELOPMENT  LAW,  PROVIDED  THE  TAXPAYER  HAS MAINTAINED THE
EMPLOYMENT AND ELIGIBLE  WAGE  REQUIREMENTS  SPECIFIED  BY  THE  MEI  AS
DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, THE TAXPAYER
SHALL  BE  ALLOWED  A  CREDIT  OF  ONE AND ONE-HALF PERCENT OF THE TOTAL
AMOUNT OF THE ELIGIBLE WAGES ACTUALLY PAID BY THE TAXPAYER; HOWEVER,  IF
THE  TAXPAYER INCREASED EMPLOYMENT IN THE PRECEDING TAX YEAR AND CLAIMED
THE TWO AND ONE-HALF PERCENT CREDIT FOR EMPLOYMENT AND PAYMENT OF  WAGES
IN  EXCESS  OF  THE  MEI REQUIREMENTS PURSUANT TO ARTICLE FIFTEEN OF THE
ECONOMIC DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED A CREDIT OF  ONE
AND  ONE-HALF PERCENT OF THE TOTAL AMOUNT OF THE ELIGIBLE WAGES ACTUALLY
PAID BY THE TAXPAYER DURING THE PRECEDING TAX YEAR, PROVIDED THE TAXPAY-
ER HAS MAINTAINED THE INCREASED EMPLOYMENT AND  SALARY  LEVELS.  IF  THE
TAXPAYER  AGAIN  INCREASES EMPLOYMENT, HIRING AND MAINTAINING ADDITIONAL
EMPLOYEES AND PAYING ADDITIONAL WAGES OVER AND ABOVE  THE  PREVIOUS  TAX
YEAR'S AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CREDIT OF TWO
AND  ONE-HALF  PERCENT  OF  THE TOTAL AMOUNT BY WHICH THE WAGES ACTUALLY
PAID AS A RESULT OF THE INCREASED LEVEL OF EMPLOYMENT EXCEED  THE  WAGES
SUBJECT TO THE ONE AND ONE-HALF PERCENT CREDIT.
  S  702.  MEI  ENERGY  TAX CREDIT. (A) ALLOWANCE OF CREDIT.  A TAXPAYER
RECEIVING AN MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN
OF THE ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO  IS  SUBJECT  TO  TAXES
UNDER  ARTICLE  NINE-A  OR  ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL BE
ALLOWED A CREDIT AGAINST THE TAXES  ASSESSED  UNDER  ARTICLE  NINE-A  OR
ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT THE CERTIF-
ICATE  IS VALID. THE CREDIT SHALL BE COMPUTED PURSUANT TO THE PROVISIONS
OF SUBSECTION (C) OF THIS SECTION.
  (B) DEFINITION. THE  TERM  "ELIGIBLE  ENERGY  COSTS"  SHALL  MEAN  THE
AMOUNTS  PAID BY THE TAXPAYER FOR ELECTRICITY, NATURAL GAS, OR ANY OTHER
ENERGY PRODUCT OR SERVICE WHICH THE TAXPAYER HAS USED IN  THE  OPERATION
OF  A  MEI  CERTIFIED  MANUFACTURING  FIRM  FACILITY PURSUANT TO ARTICLE
FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW.
  (C) COMPUTATION OF ENERGY CREDIT. (1) IF THE TAXPAYER HAS PAID  ELIGI-
BLE  ENERGY  COSTS  DURING THE FIRST TAX YEAR OF THE TWO-YEAR PERIOD FOR
WHICH A VALID MEI  CERTIFICATE  HAS  BEEN  ISSUED  PURSUANT  TO  ARTICLE
FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, PROVIDED THE TAXPAYER HAS MAIN-
TAINED  THE  EMPLOYMENT AND ELIGIBLE WAGES REQUIREMENTS SPECIFIED BY THE
MEI AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT  LAW,  THE

A. 3046                             5

TAXPAYER  SHALL  BE  ALLOWED AN ENERGY CREDIT OF TWENTY-FIVE DOLLARS PER
EMPLOYEE REQUIRED BY THE MEI  AS  DEFINED  IN  ARTICLE  FIFTEEN  OF  THE
ECONOMIC  DEVELOPMENT  LAW.  IF THE TAXPAYER INCREASES EMPLOYMENT DURING
THIS  TAX  YEAR, AND EXCEEDS THE LEVEL OF EMPLOYMENT REQUIRED BY THE MEI
AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC  DEVELOPMENT  LAW,  HIRING
AND  MAINTAINING  ADDITIONAL  EMPLOYEES AND PAYING ADDITIONAL WAGES OVER
AND ABOVE THE ELIGIBLE WAGES AMOUNT, THE TAXPAYER SHALL  BE  ALLOWED  AN
ADDITIONAL  ENERGY CREDIT OF FIFTY DOLLARS PER EACH ADDITIONAL EMPLOYEE.
THE ENERGY TAX CREDIT SHALL NOT EXCEED THE  AMOUNT  OF  ELIGIBLE  ENERGY
COSTS ACTUALLY PAID BY THE TAXPAYER.
  (2)  IF  THE TAXPAYER HAS PAID ELIGIBLE ENERGY COSTS DURING THE SECOND
TAX YEAR OF THE TWO-YEAR PERIOD FOR WHICH A VALID  MEI  CERTIFICATE  HAS
BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW,
PROVIDED  THE  TAXPAYER  HAS MAINTAINED THE EMPLOYMENT AND ELIGIBLE WAGE
REQUIREMENTS SPECIFIED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN  OF  THE
ECONOMIC DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED AN ENERGY CREDIT
OF  TWENTY-FIVE  DOLLARS  PER EMPLOYEE REQUIRED BY THE MEI AS DEFINED IN
ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW; HOWEVER, IF THE TAXPAY-
ER INCREASED EMPLOYMENT DURING THE PRECEDING TAX YEAR  AND  CLAIMED  THE
ADDITIONAL  ENERGY  TAX CREDIT OF FIFTY DOLLARS PER ADDITIONAL EMPLOYEE,
THE TAXPAYER SHALL BE  ALLOWED  A  CREDIT  OF  TWENTY-FIVE  DOLLARS  PER
EMPLOYEE UP TO THE NUMBER OF EMPLOYEES CLAIMED IN THE PREVIOUS TAX YEAR,
PROVIDED  THE  TAXPAYER HAS MAINTAINED THE INCREASED EMPLOYMENT AND WAGE
LEVELS. IF THE TAXPAYER AGAIN INCREASES  EMPLOYMENT,  HIRING  ADDITIONAL
EMPLOYEES  AND  PAYING  ADDITIONAL WAGES OVER AND ABOVE THE PREVIOUS TAX
YEAR'S AMOUNTS, THE TAXPAYER SHALL BE ALLOWED AN  ADDITIONAL  CREDIT  OF
FIFTY DOLLARS FOR EACH ADDITIONAL EMPLOYEE HIRED DURING THE SECOND YEAR.
THE  ENERGY  TAX  CREDIT  SHALL NOT EXCEED THE AMOUNT OF ELIGIBLE ENERGY
COSTS ACTUALLY PAID BY THE TAXPAYER.
  S 3. Section 210 of the tax law is amended by adding three new  subdi-
visions 41, 42 and 43 to read as follows:
  41. MEI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION SEVEN HUNDRED
OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  CARRYOVERS.  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  SUBDIVI-
SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  42. MEI WAGE TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL  BE
ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, TO BE COMPUTED
AS  PROVIDED  IN  SECTION SEVEN HUNDRED ONE OF THIS CHAPTER, AGAINST THE
TAX IMPOSED BY THIS ARTICLE.
  (B) CARRYOVERS. 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 SUBDIVI-
SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED  FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  43.  MEI  ENERGY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
BE ALLOWED A CREDIT AGAINST THE TAX  IMPOSED  BY  THIS  ARTICLE,  TO  BE

A. 3046                             6

COMPUTED  AS  PROVIDED  IN  SECTION  SEVEN  HUNDRED TWO OF THIS CHAPTER,
AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  CARRYOVERS.  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  SUBDIVI-
SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
BE CARRIED OVER TO THE FOLLOWING YEAR  OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law, as amended by section 2 of part ZZ-1 of  chapter  57  of
the laws of 2008, is amended to read as follows:
  (B)  shall  be  treated as the owner of a new business with respect to
such share if the corporation qualifies as a new  business  pursuant  to
paragraph  (j)  of subdivision twelve of section two hundred ten of this
chapter.

                                     The corporation's credit base under
                                     section two hundred ten or section
With respect to the following        fourteen hundred fifty-six of this
credit under this section:           chapter is:

(I) Investment tax credit            Investment credit base
under subsection (a)                 or qualified
                                     rehabilitation
                                     expenditures under
                                     subdivision twelve of
                                     section two hundred ten

(II) Empire zone                     Cost or other basis
investment tax credit                under subdivision
under subsection (j)                 twelve-B
                                     of section two hundred
                                     ten

(III) Empire zone                    Eligible wages under
wage tax credit                      subdivision nineteen of
under subsection (k)                 section two hundred ten
                                     or subsection (e) of
                                     section fourteen hundred
                                     fifty-six

(IV) Empire zone                     Qualified investments
capital tax credit                   and contributions under
under subsection (l)                 subdivision twenty of
                                     section two hundred ten
                                     or subsection (d) of
                                     section fourteen hundred
                                     fifty-six

(V) Agricultural property tax        Allowable school
credit under subsection (n)          district property taxes under
                                     subdivision twenty-two of
                                     section two hundred ten

A. 3046                             7

(VI) Credit for employment           Qualified first-year wages or
of persons with dis-                 qualified second-year wages
abilities under                      under subdivision
subsection (o)                       twenty-three of section
                                     two hundred ten
                                     or subsection (f)
                                     of section fourteen
                                     hundred fifty-six

(VII) Employment incentive           Applicable investment credit
credit under subsec-                 base under subdivision
tion (a-1)                           twelve-D of section two
                                     hundred ten

(VIII) Empire zone                   Applicable investment
employment                           credit under sub-
incentive credit under               division twelve-C
subsection (j-1)                     of section two hundred ten

(IX) Alternative fuels credit        Cost under subdivision
under subsection (p)                 twenty-four of section two
                                     hundred ten

(X) Qualified emerging               Applicable credit base
technology company                   under subdivision twelve-E
employment credit                    of section two hundred ten
under subsection (q)

(XI) Qualified emerging              Qualified investments under
technology company                   subdivision twelve-F of
capital tax credit                   section two hundred ten
under subsection (r)

(XII) Credit for purchase of an      Cost of an automated
automated external defibrillator     external defibrillator under
under subsection (s)                 subdivision twenty-five of
                                     section two hundred ten
                                     or subsection (j) of section
                                     fourteen hundred fifty-six

(XIII) Low-income housing            Credit amount under
credit under subsection (x)          subdivision thirty
                                     of section two hundred ten or
                                     subsection (l) of section
                                     fourteen hundred fifty-six

(XIV) Credit for transportation      Amount of credit under sub-
improvement contributions            division thirty-two of section
under subsection (z)                 two hundred ten or subsection
                                     (n) of section fourteen
                                     hundred fifty-six

(XV) QEZE credit for real property   Amount of credit under
taxes under subsection (bb)          subdivision twenty-seven of
                                     section two hundred ten or
                                     subsection (o) of section

A. 3046                             8

                                     fourteen hundred fifty-six

(XVI) QEZE tax reduction credit      Amount of benefit period
under subsection (cc)                factor, employment increase factor
                                     and zone allocation
                                     factor (without regard
                                     to pro ration) under
                                     subdivision twenty-eight of
                                     section two hundred ten or
                                     subsection (p) of section
                                     fourteen hundred fifty-six
                                     and amount of tax factor
                                     as determined under
                                     subdivision (f) of section sixteen

(XVII) Green building credit         Amount of green building credit
under subsection (y)                 under subdivision thirty-one
                                     of section two hundred ten
                                     or subsection (m) of section
                                     fourteen hundred fifty-six

(XVIII) Credit for long-term         Qualified costs under
care insurance premiums              subdivision twenty-five-a of
under subsection (aa)                section two hundred ten
                                     or subsection (k) of section
                                     fourteen hundred fifty-six

(XIX) Brownfield redevelopment       Amount of credit
credit under subsection              under subdivision
(dd)                                 thirty-three of section
                                     two hundred ten
                                     or subsection (q) of
                                     section fourteen hundred
                                     fifty-six

(XX) Remediated brownfield           Amount of credit under
credit for real property             subdivision thirty-four
taxes for qualified                  of section two hundred
sites under subsection               ten or subsection (r) of
(ee)                                 section fourteen hundred
                                     fifty-six

(XXI) Environmental                  Amount of credit under
remediation                          subdivision thirty-five of
insurance credit under               section two hundred
subsection (ff)                      ten or subsection
                                     (s) of section
                                     fourteen hundred
                                     fifty-six

(XXII) Empire state film             Amount of credit for qualified
production credit under              production costs in production
subsection (gg)                      of a qualified film under
                                     subdivision thirty-six of
                                     section two hundred ten

A. 3046                             9

(XXIII) Qualified emerging           Qualifying expenditures and
technology company facilities,       development activities under
operations and training credit       subdivision twelve-G of section
under subsection (nn)                two hundred ten

(XXIV) Security training tax         Amount of credit
credit under                         under subdivision thirty-seven
subsection (ii)                      of section two hundred ten or
                                     under subsection (t) of
                                     section fourteen hundred fifty-six

(XXV) Credit for qualified fuel      Amount of credit under
cell electric generating equipment   subdivision thirty-seven
expenditures under subsection (g-2)  of section two hundred ten
                                     or subsection (t) of
                                     section fourteen hundred
                                     fifty-six

(XXVI) Empire state commercial       Amount of credit for qualified
production credit under              production costs in production
subsection (jj)                      of a qualified commercial under
                                     subdivision thirty-eight of sec-
                                     tion two hundred ten

(XXVII) Biofuel production           Amount of credit
tax credit under                     under subdivision
subsection (jj)                      thirty-eight of
                                     section two hundred ten

(XXVIII) Clean heating fuel credit   Amount of credit under
under subsection (mm)                subdivision thirty-nine of
                                     section two hundred ten

(XXIX) Credit for rehabilitation     Amount of credit under
of historic properties               subdivision forty of
under subsection (oo)                [subsection] SECTION
                                     two hundred ten

(XXX) Credit for companies who       Amount of credit under
provide transportation               subdivision forty of
to individuals                       section two hundred ten
with disabilities
under subsection (oo)

(XXXI) MEI PROPERTY TAX CREDIT       AMOUNT OF MEI PROPERTY TAX CREDIT
UNDER SUBSECTION (QQ)                UNDER SUBDIVISION FORTY-ONE OF
                                     SECTION TWO HUNDRED TEN

(XXXII) MEI WAGE TAX CREDIT UNDER    AMOUNT OF MEI WAGE TAX CREDIT
SUBSECTION (RR)                      UNDER SUBDIVISION FORTY-TWO OF
                                     SECTION TWO HUNDRED TEN

(XXXIII) MEI ENERGY TAX CREDIT UNDER AMOUNT OF MEI ENERGY TAX CREDIT
SUBSECTION (SS)                      UNDER SUBDIVISION FORTY-THREE OF
                                     SECTION TWO HUNDRED TEN

A. 3046                            10

  S  5.  Section  606  of  the  tax  law  is amended by adding three new
subsections (qq), (rr) and (ss) to read as follows:
  (QQ)  MEI  PROPERTY  TAX  CREDIT.  (1) ALLOWANCE OF CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  SEVEN
HUNDRED OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR 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.
  (RR) MEI WAGE TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
ALLOWED  A  CREDIT,  TO BE COMPUTED AS PROVIDED IN SECTION SEVEN HUNDRED
ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR 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.
  (SS) MEI ENERGY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER  SHALL
BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION SEVEN HUNDRED
TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
SHALL BE PAID THEREON.
  S  6.    This  act  shall take effect on the one hundred eightieth day
after it shall have become a law and shall apply to taxable years begin-
ning on or after January 1, 2011 and before January 1,  2018;  provided,
however, that the addition, amendment and/or repeal of any rule or regu-
lation  necessary  for  the  implementation of this act on its effective
date are authorized and directed to be made on or before such date;  and
provided,  however  that  the  empire state film production credit under
subsection (gg), the empire state  commercial  production  credit  under
subsection  (jj) and the credit for companies who provide transportation
to individuals with disabilities under subsection (oo) of section 606 of
the tax law contained in section four of this act shall  expire  on  the
same  date  as provided in section 9 of part P of chapter 60 of the laws
of 2004, as amended, section 10 of part V of chapter 62 of the  laws  of
2006,  as  amended  and section 5 of chapter 522 of the laws of 2006, as
amended, respectively.

                                 PART B

  Section 1. The economic development law is amended  by  adding  a  new
article 17 to read as follows:
                               ARTICLE 17
           OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE
SECTION 350. LEGISLATIVE FINDINGS.
        351. OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE.
        352. OBJECTIVES.
        353. POWERS AND DUTIES.

A. 3046                            11

  S  350.  LEGISLATIVE  FINDINGS.  THE  LEGISLATURE  FINDS  THAT  RECENT
ADVANCES IN TELECOMMUNICATIONS AND THE ADVENT OF THE INTERNET ARE  REGU-
LARLY  CREATING  NEW  AND  PREVIOUSLY  UNIMAGINED  OPPORTUNITIES FOR THE
CREATION OF JOBS AND PROSPERITY.  THE  LEGISLATURE  FURTHER  FINDS  THAT
THESE  ADVANCES  IN COMMUNICATIONS HAVE ALSO PRESENTED THE STATE AND ITS
CITIZENS WITH SIGNIFICANT CHALLENGES IN  TERMS  OF  GLOBAL  COMPETITION,
WHICH  CHALLENGES  MUST  BE ADDRESSED DIRECTLY FOR OUR STATE TO MAINTAIN
ITS COMPETITIVE EDGE IN THE  EVOLVING  WORLD  ECONOMY.  THE  LEGISLATURE
FURTHER  FINDS  THAT  THE PROPER PROMOTION OF INTERNET JOB OPPORTUNITIES
COULD HELP IMPROVE THE OVERALL ECONOMIC  CLIMATE  WITHIN  THE  STATE  BY
PROVIDING  POTENTIAL  EMPLOYMENT  ANYWHERE  WITHIN  THE STATE, INCLUDING
BLIGHTED, ISOLATED, AND ECONOMICALLY DEPRESSED REGIONS. THE  LEGISLATURE
FURTHER  FINDS THAT SUCH POTENTIAL JOBS ARE PARTICULARLY SUITED TO BEING
FILLED BY BOTH NEW YORKERS WITH DISABILITIES AND BY  THOSE  NEW  YORKERS
WHOSE  FAMILY  RESPONSIBILITIES  PRECLUDE  OR  MAKE  IMPRACTICAL WORKING
OUTSIDE OF THE HOME. THE LEGISLATURE FURTHER FINDS THAT NEW YORK IS HOME
TO A HIGHLY PRODUCTIVE AND WELL EDUCATED WORKFORCE, AND THAT THIS  WORK-
FORCE  COULD  AND  SHOULD  BE  MADE  AVAILABLE FOR EMPLOYMENT AT HOME BY
COMPANIES LOCATED ACROSS THE WORLD IN ORDER TO PROMOTE THE PROSPERITY OF
THE STATE AND ITS CITIZENS.
  S 351. OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE.  THERE  IS
HEREBY  ESTABLISHED, UNDER THE DIRECTION OF THE COMMISSIONER, THE OFFICE
OF THE NEW YORK STATE  HOMESHORING  INITIATIVE.  THE  DIRECTOR  OF  SUCH
OFFICE  SHALL BE APPOINTED BY THE GOVERNOR, SHALL REPORT DIRECTLY TO THE
COMMISSIONER ON THE ACTIVITIES OF THE OFFICE, AND SHALL HOLD  OFFICE  AT
THE  PLEASURE OF THE COMMISSIONER. THE DIRECTOR OF THE OFFICE OF THE NEW
YORK STATE HOMESHORING INITIATIVE SHALL ALSO REGULARLY ADVISE AND REPORT
UPON ITS ACTIVITIES TO THE DEPARTMENT OF LABOR. IT SHALL BE THE DUTY  OF
THE  DIRECTOR OF THE OFFICE OF THE NEW YORK STATE HOMESHORING INITIATIVE
TO ASSIST THE GOVERNOR IN THE FORMULATION AND IMPLEMENTATION OF LAWS AND
POLICIES RELATING TO THE PROMOTION, CREATION, AND INTEGRATION  OF  TELE-
COMMUTING  JOB  OPPORTUNITIES INTO THE ECONOMIC FABRIC OF THE STATE. THE
DIRECTOR SHALL RECEIVE AN ANNUAL SALARY TO  BE  FIXED  BY  THE  GOVERNOR
WITHIN  THE  AMOUNT APPROPRIATED THEREFOR. THE DIRECTOR MAY APPOINT SUCH
OFFICERS, EMPLOYEES, AGENTS, CONSULTANTS AND SPECIAL COMMITTEES AS HE OR
SHE MAY DEEM NECESSARY TO CARRY OUT THE PROVISIONS OF THIS  ARTICLE  AND
PRESCRIBE  THEIR  DUTIES  SUBJECT TO THE PROVISIONS OF THE CIVIL SERVICE
LAW AND THE RULES AND REGULATIONS OF THE CIVIL SERVICE COMMISSION.
  S 352. OBJECTIVES. THE OFFICE OF THE NEW YORK STATE HOMESHORING INITI-
ATIVE IS DIRECTED TO PROMOTE  "HOMESHORING",  AN  INITIATIVE  THAT  WILL
PROMOTE THE CREATION OF TELECOMMUTING JOB OPPORTUNITIES ON BEHALF OF NEW
YORK  WORKERS.  THIS  ASSISTANCE  SHOULD CONSIST OF PROMOTION, OUTREACH,
COORDINATION, INFORMATION, TECHNICAL ASSISTANCE, AND  REFERRAL  SERVICES
DESIGNATED  TO  ATTRACT  EMPLOYERS  WHO  MIGHT OTHERWISE NOT CONSIDER AN
ACTUAL MOVE TO NEW YORK STATE TO HIRE NEW YORK CITIZENS  FOR  EMPLOYMENT
OPPORTUNITIES  WITHIN THE STATE NOW MADE POSSIBLE THROUGH TELECOMMUTING,
AS WELL AS ENCOURAGING NEW YORK STATE EMPLOYERS TO PROVIDE JOB  OPPORTU-
NITIES FOR TELECOMMUTING.
  S 353. POWERS AND DUTIES. THE OFFICE OF THE NEW YORK STATE HOMESHORING
INITIATIVE SHALL:
  1. COORDINATE ITS EFFORTS WITH ALL OTHER STATE AGENCIES, INCLUDING BUT
NOT  LIMITED  TO  THE DEPARTMENT, THE DEPARTMENT OF LABOR, THE OFFICE OF
GENERAL SERVICES, THE STATE OFFICE FOR  TECHNOLOGY,  THE  DEPARTMENT  OF
EDUCATION,  AND  ALL  OTHER AGENCIES AS MAY BE APPROPRIATE IN FORWARDING
THIS OBJECTIVE. THE  OFFICE  MAY  ALSO  WORK  IN  COOPERATION  WITH  ANY

A. 3046                            12

NOT-FOR-PROFIT  ORGANIZATIONS THAT THE OFFICE BELIEVES WILL HELP FURTHER
ITS GOALS AND OBJECTIVES;
  2.  CONDUCT MARKETING AND PROMOTIONAL ACTIVITIES WITH THE INTENTION OF
ENCOURAGING EMPLOYERS BOTH WITHIN AND  OUTSIDE  OF  NEW  YORK  STATE  TO
EMPLOY NEW YORK CITIZENS IN TELECOMMUTING JOBS;
  3.  SOLICIT  RECOMMENDATIONS  FROM  LOCAL GOVERNMENTS, BUSINESSES, AND
NOT-FOR-PROFIT AGENCIES FOR PROMOTING THE OBJECTIVES  OF  THIS  ARTICLE,
AND  REFER  SUCH  RECOMMENDATIONS  TO  THE GOVERNOR, THE LEGISLATURE AND
APPROPRIATE STATE AGENCIES OR AUTHORITIES;
  4. CONDUCT INVESTIGATIONS, RESEARCH, STUDIES AND ANALYSES  OF  MATTERS
CONSISTENT WITH THE GOALS AND OBJECTIVES OF THIS ARTICLE;
  5. COORDINATE WITH THE OFFICE OF GENERAL SERVICES TO DEVELOP A PROGRAM
WHERE SUCH SURPLUS STATE EQUIPMENT AS MAY BE APPROPRIATE AND USEFUL WILL
BE  MADE AVAILABLE FOR SALE TO QUALIFIED BUSINESSES THAT HAVE BEEN IDEN-
TIFIED AS CREATING TELECOMMUTING JOBS  IN  NEW  YORK  STATE,  AND  SHALL
DEVELOP  SUCH  RULES  AND  REGULATIONS AS ARE NEEDED TO IMPLEMENT SUCH A
PROGRAM INCLUDING THE CRITERIA FOR PARTICIPATION IN SUCH PROGRAM; AND
  6. COORDINATE WITH THE OFFICE OF GENERAL SERVICES TO DEVELOP A PROGRAM
WHERE QUALIFYING BUSINESSES THAT HAVE BEEN IDENTIFIED AS CREATING  TELE-
COMMUTING  JOBS  MAY  BE  MADE  ELIGIBLE TO MAKE PURCHASES OF MATERIALS,
EQUIPMENT, OR SUPPLIES FROM CENTRALIZED  CONTRACTS  FOR  COMMODITIES  IN
ACCORDANCE  WITH  CONDITIONS SET BY THE OFFICE AND THE OFFICE OF GENERAL
SERVICES; PROVIDED THAT THE QUALIFIED BUSINESS SHALL ACCEPT SOLE RESPON-
SIBILITY FOR ANY PAYMENT DUE THE VENDOR. THE OFFICE SHALL  DEVELOP  SUCH
RULES  AND  REGULATIONS AS ARE NEEDED TO IMPLEMENT SUCH A PROGRAM AND TO
DETERMINE THE ELIGIBILITY FOR PARTICIPATION IN SUCH PROGRAM.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
44 to read as follows:
  44. TELECOMMUTING JOB CREATION WAGE TAX CREDIT. (A) A  TAXPAYER  SHALL
BE  ALLOWED A CREDIT TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE. THE AMOUNT  OF  SUCH  CREDIT  SHALL  BE  AS
PRESCRIBED BY PARAGRAPH (D) OF THIS SUBDIVISION.
  (B)  FOR  THE  PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (I) "TELECOMMUTING JOB CREATION WAGES" MEANS WAGES PAID BY THE TAXPAY-
ER FOR EMPLOYMENT, DURING THE TAXABLE YEAR WHERE SUCH EMPLOYMENT IS IN A
TELECOMMUTING JOB AND PERFORMED BY TELECOMMUTING EMPLOYEES.
  (II) "TELECOMMUTING JOB" MEANS A POSITION THAT DID NOT  EXIST  IN  THE
TAXPAYER'S  BUSINESS  IN  NEW  YORK STATE DURING THE THREE TAXABLE YEARS
PRIOR TO HIRING THE TELECOMMUTING  EMPLOYEES  FOR  WHOM  THE  CREDIT  IS
CLAIMED  AND  WHICH  PROVIDES  NOT  LESS  THAN  TWENTY HOURS PER WEEK OF
EMPLOYMENT.
  (III) "TELECOMMUTING EMPLOYEE" MEANS A NEW YORK RESIDENT WHO  RECEIVED
TELECOMMUTING JOB CREATION WAGES AND WHO WAS NOT EMPLOYED BY THE TAXPAY-
ER  IN  THE  THREE  PRIOR TAXABLE YEARS, AND WHO PERFORMS HIS OR HER JOB
DUTY FROM HIS OR HER RESIDENCE.
  (IV) "TAXPAYER" MEANS A NEW YORK TAXPAYER AS DEFINED IN PARAGRAPH  (F)
OF SUBDIVISION ONE OF THIS SECTION.
  (C)  THE  CREDIT  MAY BE CLAIMED BY THE TAXPAYER IN THE FIRST YEAR THE
TELECOMMUTING EMPLOYEE IS EMPLOYED BY THE TAXPAYER,  PROVIDED,  HOWEVER,
WHERE A TELECOMMUTING EMPLOYEE IS HIRED IN THE LAST QUARTER OF A TAXABLE
YEAR  AND  IS  EMPLOYED BY THE TAXPAYER FOR THE ENTIRE FOLLOWING TAXABLE
YEAR, THE TAXPAYER MAY ELECT TO FOREGO THE CREDIT FOR THE  TAXABLE  YEAR
OF  THE  HIRING  AND CLAIM A CREDIT FOR THE FOLLOWING TAXABLE YEAR WHICH
REFLECTS WAGES PAID IN SUCH YEAR.

A. 3046                            13

  (D) THE AMOUNT OF THE CREDIT SHALL EQUAL FIFTY PERCENT OF THE PERSONAL
INCOME TAX GENERATED BY THE  TELECOMMUTING  EMPLOYEE  BY  THE  TAXPAYER,
PROVIDED,  HOWEVER,  THAT THE CREDIT PROVIDED FOR UNDER THIS SUBDIVISION
WITH RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH CREDIT  TO  THE
TAXABLE  YEAR,  DEDUCTED  FROM  THE  TAX  OTHERWISE DUE, MAY NOT, IN THE
AGGREGATE, EXCEED FIFTY PERCENT OF THE TAX  IMPOSED  UNDER  SECTION  TWO
HUNDRED  NINE  OF  THIS  ARTICLE  COMPUTED  WITHOUT REGARD TO ANY CREDIT
PROVIDED FOR BY THIS ARTICLE.
  (E) THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS SUBDI-
VISION FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, 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  OR  CARRYOVERS OF SUCH CREDIT, OR BOTH, ALLOWED
UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE  TAX  TO  SUCH
AMOUNT,  OR  IF  ANY PART OF THE CREDIT OR CARRYOVERS OF SUCH CREDIT MAY
NOT BE DEDUCTED FROM THE TAX  OTHERWISE  DUE  BY  REASON  OF  THE  FINAL
SENTENCE  OF  PARAGRAPH (D) OF THIS SUBDIVISION, ANY AMOUNT OF CREDIT OR
CARRYOVERS OF SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE  YEAR  MAY
BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAX FOR SUCH YEAR OR YEARS.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(u) to read as follows:
  (U)  TELECOMMUTING  JOB CREATION WAGE TAX CREDIT. (1) A TAXPAYER SHALL
BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE. THE AMOUNT  OF  SUCH  CREDIT  SHALL  BE  AS
PRESCRIBED BY PARAGRAPH THREE OF THIS SUBSECTION.
  (2)  FOR  THE  PURPOSES  OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (I) "TELECOMMUTING JOB" MEANS A POSITION THAT DID  NOT  EXIST  IN  THE
TAXPAYER'S BUSINESS IN THE THREE TAXABLE YEARS PRIOR TO HIRING THE TELE-
COMMUTING  EMPLOYEES  FOR  WHOM THE CREDIT IS CLAIMED AND WHICH PROVIDES
NOT LESS THAN TWENTY HOURS PER WEEK OF EMPLOYMENT.
  (II) "TELECOMMUTING JOB  CREATION  WAGES"  MEANS  WAGES  PAID  BY  THE
TAXPAYER  FOR  EMPLOYMENT, DURING THE TAXABLE YEAR WHERE SUCH EMPLOYMENT
IS IN A TELECOMMUTING JOB CREATED FOR  AND  PERFORMED  BY  TELECOMMUTING
EMPLOYEES.
  (III)  "TELECOMMUTING EMPLOYEE" MEANS A NEW YORK RESIDENT WHO RECEIVES
TELECOMMUTING JOB CREATION WAGES, WHO WAS NOT EMPLOYED BY  THE  TAXPAYER
IN THE THREE PRIOR TAXABLE YEARS, AND WHO PERFORMS THEIR JOB DUTIES FROM
HIS OR HER RESIDENCE.
  (IV) "TAXPAYER" MEANS A NEW YORK TAXPAYER, AS DEFINED IN PARAGRAPH (F)
OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER.
  (V)  THE  CREDIT  MAY BE CLAIMED BY THE TAXPAYER IN THE FIRST YEAR THE
TELECOMMUTING EMPLOYEE IS EMPLOYED BY THE TAXPAYER,  PROVIDED,  HOWEVER,
WHERE A TELECOMMUTING EMPLOYEE IS HIRED IN THE LAST QUARTER OF A TAXABLE
YEAR  AND  IS  EMPLOYED BY THE TAXPAYER FOR THE ENTIRE FOLLOWING TAXABLE
YEAR, THE TAXPAYER MAY ELECT TO FOREGO THE CREDIT FOR THE  TAXABLE  YEAR
OF  THE  HIRING  AND CLAIM A CREDIT FOR THE FOLLOWING TAXABLE YEAR WHICH
REFLECTS WAGES PAID IN SUCH YEAR.
  (3) THE AMOUNT OF THE CREDIT SHALL EQUAL FIFTY PERCENT OF THE PERSONAL
INCOME TAX GENERATED BY THE  TELECOMMUTING  EMPLOYEES  EMPLOYED  BY  THE
TAXPAYER,  PROVIDED,  HOWEVER,  THAT  THE CREDIT PROVIDED FOR UNDER THIS
SUBSECTION WITH RESPECT TO THE TAXABLE  YEAR,  AND  CARRYOVERS  OF  SUCH
CREDIT  TO  THE  TAXABLE  YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE, MAY
NOT, IN THE AGGREGATE, EXCEED FIFTY PERCENT OF  THE  TAX  IMPOSED  UNDER

A. 3046                            14

SECTION  TWO HUNDRED NINE OF THIS CHAPTER COMPUTED WITHOUT REGARD TO ANY
CREDIT PROVIDED FOR BY THIS ARTICLE.
  (4)  IF THE AMOUNT OF THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED  THE  TAXPAYER'S
TAX  FOR  SUCH  YEAR,  THE  EXCESS, AS WELL AS ANY PART OF THE CREDIT OR
CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED  FROM  THE
TAX  OTHERWISE DUE BY REASON OF THE FINAL SENTENCE IN PARAGRAPH THREE OF
THIS SUBSECTION, MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS  AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

                                 PART C

  Section  1.  The  general  municipal  law  is  amended by adding a new
section 959-c to read as follows:
  S 959-C. DECERTIFICATION DUE TO THE OUTSOURCING OF JOBS.  A  CERTIFIED
BUSINESS  ENTERPRISE  IN  AN  EMPIRE  ZONE  SHALL  BE DECERTIFIED BY THE
COMMISSIONER, THE  LOCAL  EMPIRE  ZONE  CERTIFICATION  OFFICER  AND  THE
COMMISSIONER  OF  LABOR IF IT IS DETERMINED THAT SUCH CERTIFIED BUSINESS
ENTERPRISE HAS FAILED TO MEET JOB CREATION PROJECTIONS AS SET  FORTH  IN
THE  CERTIFICATION PROCESS, AND IT IS FOUND THAT SUCH CERTIFIED BUSINESS
HAS OUTSOURCED JOBS. PRIOR TO THE COMMISSIONER, THE  LOCAL  EMPIRE  ZONE
CERTIFICATION  OFFICER  AND  THE COMMISSIONER OF LABOR DECERTIFYING SUCH
CERTIFIED BUSINESS ENTERPRISE, THEY SHALL PROVIDE NOTICE TO  THE  CERTI-
FIED  BUSINESS  ENTERPRISE  OF  THEIR INTENT TO DECERTIFY SUCH CERTIFIED
BUSINESS ENTERPRISE AND OF ITS RIGHT TO REQUEST A HEARING.  A  CERTIFIED
BUSINESS  ENTERPRISE  SHALL  HAVE  THIRTY DAYS WITHIN WHICH TO REQUEST A
HEARING FROM ITS RECEIPT OF THE NOTICE OF INTENT TO REVOKE CERTIFICATION
AND OPPORTUNITY FOR A HEARING. FAILURE TO REQUEST A HEARING WITHIN THIR-
TY DAYS SHALL BE DEEMED A WAIVER OF THE CERTIFIED BUSINESS  ENTERPRISE'S
RIGHT  TO A HEARING. FOR THE PURPOSES OF THIS SECTION, "OUTSOURCE" MEANS
TO RELOCATE OR MOVE JOBS OUTSIDE OF THE STATE OF  NEW  YORK  TO  ANOTHER
STATE OR COUNTRY.
  S 2. This act shall take effect immediately.

                                 PART D

  Section  1.  Section  208  of the tax law is amended by adding two new
subdivisions 20 and 21 to read as follows:
  20. "MANUFACTURER" SHALL MEAN A TAXPAYER WHICH DURING THE TAXABLE YEAR
IS PRINCIPALLY ENGAGED IN THE  PRODUCTION  OF  GOODS  BY  MANUFACTURING,
PROCESSING,  ASSEMBLING, REFINING, MINING, EXTRACTING, FARMING, AGRICUL-
TURE, HORTICULTURE, FLORICULTURE,  VITICULTURE  OR  COMMERCIAL  FISHING.
MOREOVER,  FOR  PURPOSES  OF  COMPUTING  THE  CAPITAL BASE IN A COMBINED
REPORT, THE GROUP SHALL BE CONSIDERED A "MANUFACTURER" FOR  PURPOSES  OF
THIS ARTICLE ONLY IF THE COMBINED GROUP DURING THE TAXABLE YEAR IS PRIN-
CIPALLY  ENGAGED IN THE ACTIVITIES SET FORTH IN THIS SUBDIVISION, OR ANY
COMBINATION THEREOF.
  21. "PRINCIPALLY ENGAGED" SHALL INCLUDE A TAXPAYER OR A COMBINED GROUP
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  MANUFACTURING.  IN
COMPUTING  A  COMBINED  GROUP'S  GROSS RECEIPTS, INTERCORPORATE RECEIPTS
SHALL BE ELIMINATED.

A. 3046                            15

  S 2. Section 209 of the tax law is amended by adding a new subdivision
11 to read as follows:
  11.  FOR  ANY  TAXABLE  YEAR  BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND NINE, A TAXPAYER WHO IS A MANUFACTURER SHALL  BE  FULLY  EXEMPT
FROM ALL TAXES IMPOSED BY THIS ARTICLE.
  S 3. Subsection (f) of section 601 of the tax law, as amended by chap-
ter 248 of the laws of 1997, is amended to read as follows:
  (f)  Partners  and  partnerships.  A  partnership as such shall not be
subject to tax under this article. Persons carrying on business as part-
ners shall be liable for tax under this article only in  their  separate
or  individual capacities.  NOTWITHSTANDING THIS OR ANY OTHER SECTION OF
THIS ARTICLE, A PERSON'S LIABILITY FOR TAX  UNDER  THIS  SUBSECTION,  IF
SUCH  PERSON'S PRIMARY ACTIVITY IS IN HIS OR HER ROLE AS A MANUFACTURER,
SHALL BE ZERO FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND NINE.  FOR PURPOSES OF THIS SECTION A PERSON SHALL  BE  CLASSI-
FIED  AS  A  MANUFACTURER  IF,  HE  OR SHE IS PRINCIPALLY ENGAGED IN THE
PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING,  REFINING,
MINING,  EXTRACTING,  FARMING,  AGRICULTURE, HORTICULTURE, FLORICULTURE,
VITICULTURE OR COMMERCIAL FISHING. IN ADDITION, FOR PURPOSES OF  COMPUT-
ING THE CAPITAL BASE IN A COMBINED REPORT, THE GROUP SHALL BE CONSIDERED
A  MANUFACTURER FOR PURPOSES OF THIS ARTICLE, ONLY IF THE COMBINED GROUP
DURING THE TAXABLE YEAR IS PRINCIPALLY ENGAGED  IN  THE  ACTIVITIES  SET
FORTH  IN  THIS  SUBSECTION, OR ANY COMBINATION THEREOF. FOR PURPOSES OF
THIS SUBSECTION, A TAXPAYER IS "PRINCIPALLY ENGAGED"  IN  THE  DESCRIBED
ACTIVITY  IF,  DURING  THE  TAXABLE YEAR, MORE THAN FIFTY PERCENT OF THE
GROSS RECEIPTS OF THE TAXPAYER ARE DERIVED FROM RECEIPTS FROM ACTIVITIES
COVERED BY THIS SUBSECTION. As used in this article, the term  "partner-
ship"  shall  include, unless a different meaning is clearly required, a
subchapter K limited liability company. The term "subchapter  K  limited
liability  company" shall mean a limited liability company classified as
a partnership for federal income tax purposes. The term "limited liabil-
ity company" means a domestic limited liability  company  or  a  foreign
limited  liability company, as defined in section one hundred two of the
limited liability company law, a limited  liability  investment  company
formed  pursuant  to section five hundred seven of the banking law, or a
limited liability trust company formed pursuant to section  one  hundred
two-a of the banking law.
  S 4. Subsection (b) of section 602 of the tax law, as amended by chap-
ter 333 of the laws of 1987, is amended to read as follows:
  (b)  The  tax  imposed  by  this  section  on New York minimum taxable
income, as defined in section six  hundred  twenty-two  or  section  six
hundred  thirty-six,  as  the  case  may be, shall be at the rate of six
percent, EXCEPT FOR, IN THE CASE OF INCOME DERIVED FROM  ACTIVITY  OF  A
PERSON  CLASSIFIED AS A MANUFACTURER UNDER SUBSECTION (F) OF SECTION SIX
HUNDRED ONE OF THIS PART, THE TAX IMPOSED BY THIS SECTION  ON  NEW  YORK
MINIMUM  TAXABLE  INCOME FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND NINE, SHALL BE ZERO.
  S 5. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2009;  provided,  however,  that
the commissioner of taxation and finance is authorized to promulgate any
and  all rules and regulations and take any other measures necessary for
the timely implementation of this act on its effective date on or before
such date.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,

A. 3046                            16

impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through D of this act shall be
as specifically set forth in the last section of such Parts.