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.