S T A T E O F N E W Y O R K
________________________________________________________________________
5304
2009-2010 Regular Sessions
I N A S S E M B L Y
February 11, 2009
___________
Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a textile
remanufacturing investment tax credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (i) of paragraph (b) of subdivision 12 of
section 210 of the tax law, as amended by chapter 637 of the laws of
2008, is amended to read as follows:
(i) A credit shall be allowed under this subdivision with respect to
tangible personal property and other tangible property, including build-
ings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (A) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture, horti-
culture, floriculture, viticulture or commercial fishing, (B) industrial
waste treatment facilities or air pollution control facilities, used in
the taxpayer's trade or business, (C) research and development property,
(D) principally used in the ordinary course of the taxpayer's trade or
business as a broker or dealer in connection with the purchase or sale
(which shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of stocks,
bonds or other securities as defined in section four hundred seventy-
five (c)(2) of the Internal Revenue Code, or of commodities as defined
in section four hundred seventy-five (e) of the Internal Revenue Code,
(E) principally used in the ordinary course of the taxpayer's trade or
business of providing investment advisory services for a regulated
investment company as defined in section eight hundred fifty-one of the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08761-01-9
A. 5304 2
Internal Revenue Code, or lending, loan arrangement or loan origination
services to customers in connection with the purchase or sale (which
shall include but not be limited to the issuance, entering into, assump-
tion, offset, assignment, termination, or transfer) of securities as
defined in section four hundred seventy-five (c)(2) of the Internal
Revenue Code, (F) principally used in the ordinary course of the taxpay-
er's business as an exchange registered as a national securities
exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi-
ties Exchange Act of 1934 or a board of trade as defined in [section
1410(a)(1) of the New York Not-for-Profit Corporation Law] SUBPARAGRAPH
ONE OF PARAGRAPH (A) OF SECTION FOURTEEN HUNDRED TEN OF THE NOT-FOR-PRO-
FIT CORPORATION LAW or as an entity that is wholly owned by one or more
such national securities exchanges or boards of trade and that provides
automation or technical services thereto, [or] (G) principally used as a
qualified film production facility including qualified film production
facilities having a situs in an empire zone designated as such pursuant
to article eighteen-B of the general municipal law, where the taxpayer
is providing three or more services to any qualified film production
company using the facility, including such services as a studio lighting
grid, lighting and grip equipment, multi-line phone service, broadband
information technology access, industrial scale electrical capacity,
food services, security services, and heating, ventilation and air
conditioning, OR (H) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE
TAXPAYER'S TRADE OR BUSINESS UTILIZING TEXTILE REMANUFACTURING TECHNOLO-
GIES. For purposes of clauses (D), (E) and (F) of this subparagraph,
property purchased by a taxpayer affiliated with a regulated broker,
dealer, registered investment adviser, national securities exchange or
board of trade, is allowed a credit under this subdivision if the prop-
erty is used by its affiliated regulated broker, dealer, registered
investment adviser, national securities exchange or board of trade in
accordance with this subdivision. For purposes of determining if the
property is principally used in qualifying uses, the uses by the taxpay-
er described in clauses (D) and (E) of this subparagraph may be aggre-
gated. In addition, the uses by the taxpayer, its affiliated regulated
broker, dealer, and registered investment adviser under either or both
of those clauses may be aggregated. Provided, however, a taxpayer shall
not be allowed the credit provided by clauses (D), (E) and (F) of this
subparagraph unless (I) eighty percent or more of the employees perform-
ing the administrative and support functions resulting from or related
to the qualifying uses of such equipment are located in this state or
(II) the average number of employees that perform the administrative and
support functions resulting from or related to the qualifying uses of
such equipment and are located in this state during the taxable year for
which the credit is claimed is equal to or greater than ninety-five
percent of the average number of employees that perform these functions
and are located in this state during the thirty-six months immediately
preceding the year for which the credit is claimed, or (III) the number
of employees located in this state during the taxable year for which the
credit is claimed is equal to or greater than ninety percent of the
number of employees located in this state on December thirty-first,
nineteen hundred ninety-eight or, if the taxpayer was not a calendar
year taxpayer in nineteen hundred ninety-eight, the last day of its
first taxable year ending after December thirty-first, nineteen hundred
ninety-eight. If the taxpayer becomes subject to tax in this state after
the taxable year beginning in nineteen hundred ninety-eight, then the
taxpayer is not required to satisfy the employment test provided in the
A. 5304 3
preceding sentence of this subparagraph for its first taxable year. For
purposes of clause (III) of this subparagraph the employment test will
be based on the number of employees located in this state on the last
day of the first taxable year the taxpayer is subject to tax in this
state. If the uses of the property must be aggregated to determine
whether the property is principally used in qualifying uses, then either
each affiliate using the property must satisfy this employment test or
this employment test must be satisfied through the aggregation of the
employees of the taxpayer, its affiliated regulated broker, dealer, and
registered investment adviser using the property. For purposes of this
subdivision, the term "goods" shall not include electricity.
S 2. Subparagraph (ii) of paragraph (b) of subdivision 12 of section
210 of the tax law is amended by adding a new clause (F) to read as
follows:
(F) TEXTILE REMANUFACTURING TECHNOLOGIES SHALL MEAN ALL PROCESSES
WHEREBY ELIGIBLE TEXTILES ARE RESTORED TO THEIR ORIGINAL PERFORMANCE
STANDARDS AND ARE THEREBY REMOVED FROM THE SOLID WASTE STREAM, RETAINING
THE MAJORITY OF COMPONENTS THAT HAVE BEEN THROUGH AT LEAST ONE LIFE
CYCLE AND REPLACING CONSUMABLE PORTIONS TO ENABLE SUCH TEXTILES TO BE
RESTORED TO THEIR ORIGINAL FUNCTIONS. FOR THE PURPOSES OF THIS SUBDIVI-
SION, "ELIGIBLE TEXTILES" SHALL MEAN TEXTILES USED FOR INDUSTRIAL AND
COMMERCIAL UNIFORMS, HEALTH CARE FACILITY SUPPLY, LINEN SUPPLY, AND
INDUSTRIAL AND REPAIR FACILITY MAINTENANCE, INCLUDING CLOTHING, SAFETY
GEAR, CLEANROOM GARMENTS, BEDDING, SCRUBS, TOWELS, ROBES, ADULT DIAPERS,
TABLE LINENS, SURGICAL TEXTILES, AND SHOP TOWELS.
S 3. This act shall take effect immediately and shall apply to proper-
ty placed in service on or after January 1, 2010.