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

                                  7322

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 27, 2009
                               ___________

Introduced  by  M.  of  A.  TOBACCO, TOWNSEND, CONTE, McDONOUGH, O'MARA,
  McKEVITT -- Multi-Sponsored by -- M. of  A.  BARCLAY,  CROUCH,  FINCH,
  GIGLIO,  KOLB,  SCOZZAFAVA,  WALKER  --  read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation to establishing an  underground
  infrastructure security device credit

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

  Section 1. The tax law is amended by adding a new section 30  to  read
as follows:
  S 30. UNDERGROUND INFRASTRUCTURE SECURITY DEVICE CREDIT. (A) ALLOWANCE
OF  CREDIT.  (1)  A TAXPAYER WHICH OWNS OR MAINTAINS A QUALIFIED MANHOLE
PROVIDING ACCESS TO HIGHLY  CRITICAL  UNDERGROUND  INFRASTRUCTURE  WHERE
SUCH  MANHOLE  IS  LOCATED  IN A CITY WITH A POPULATION GREATER THAN ONE
MILLION AND IN AN AREA WHICH IS OPEN TO OR  READILY  ACCESSIBLE  BY  THE
PUBLIC,  AND WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A OR THIR-
TY-TWO OF THIS CHAPTER, SHALL BE ALLOWED  A  CREDIT  AGAINST  SUCH  TAX,
PURSUANT  TO  THE  PROVISIONS  REFERENCED  IN  SUBDIVISION  (C)  OF THIS
SECTION, TO BE COMPUTED AS  PROVIDED  IN  THIS  SECTION,  EQUAL  TO  THE
TAXPAYERS  COST OF COMMONLY AVAILABLE SELF CONTAINED INDEPENDENT MANHOLE
BARRIER LOCKING  DEVICES  TO  SECURE  SUCH  MANHOLES  FROM  UNAUTHORIZED
ACCESS.
  (B)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "QUALIFIED MANHOLE" MEANS SURFACE-LEVEL ACCESS TO HIGHLY  CRITICAL
UNDERGROUND  INFRASTRUCTURE  WHICH IS AT OR NEAR GRADE, AND UNSECURED BY
MEANS OTHER THAN A COVER OR GRATE OVER SUCH OPENING.
  (2) "HIGHLY CRITICAL UNDERGROUND INFRASTRUCTURE" MEANS  INFRASTRUCTURE
CERTIFIED AS SUCH BY THE OFFICE OF HOMELAND SECURITY, LOSS OR FAILURE OF
WHICH  WOULD  LEAD  TO  A  SUBSTANTIAL  LOSS  OF LIFE OR SERIOUS INJURY,
SIGNIFICANT ECONOMIC LOSS, AND WOULD UNDERMINE THE MORALE AND CONFIDENCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09931-01-9
              

A. 7322                             2

OF SUBSTANTIAL PORTIONS OF THE COMMUNITY, AND MAY  INCLUDE  THOSE  WHICH
PROVIDE  ACCESS TO POINTS OF MULTIPLE CRITICAL INFRASTRUCTURE COMPONENTS
AND THOSE NEAR OR DIRECTLY SERVING SECURE GOVERNMENT  FACILITIES,  MAJOR
FINANCIAL  CENTERS,  SIGNIFICANT PORTS OF ENTRY, OR MASS TRANSIT CENTERS
OR LINES.
  (3) "COSTS" MEANS THE AMOUNT ACTUALLY EXPENDED  BY  THE  TAXPAYER  FOR
DEVICES  TO  SECURE  QUALIFIED  MANHOLES,  LESS ANY REFUNDS, OFFSETS, OR
REIMBURSEMENTS, AND NOT TO EXCEED SIX HUNDRED FIFTY DOLLARS  PER  QUALI-
FIED MANHOLE UPON WHICH A DEVICE IS INSTALLED.
  (4)  "COMMONLY  AVAILABLE  SELF  CONTAINED INDEPENDENT MANHOLE BARRIER
LOCKING DEVICE" MEANS A MECHANICAL DEVICE WHICH  BLOCKS  A  PERSON  FROM
ENTERING  A  MANHOLE,  IS READILY REMOVABLE AND REUSABLE, AND REQUIRES A
PROPRIETARY, CUSTOM, OR UNIQUE KEY OR WRENCH TO REMOVE, AND ANY  ASSOCI-
ATED KEY OR WRENCHES TO LOCK AND UNLOCK SUCH DEVICE.
  (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISION OF THIS CHAPTER:
  (1) ARTICLE 9: SECTION 187-O.
  (2) ARTICLE 9-A: SECTION 210: SUBDIVISION 41.
  (3) ARTICLE 32: SECTION 1456: SUBSECTION (U).
  S 2. The tax law is amended by adding a new section 187-o to  read  as
follows:
  S 187-O. UNDERGROUND INFRASTRUCTURE SECURITY DEVICE CREDIT. 1.  ALLOW-
ANCE  OF  CREDIT. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND NINE, A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE  COMPUTED  AS
PROVIDED IN SECTION TWENTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED
BY THIS ARTICLE.
  2.  APPLICATION  OF  CREDIT.  IN  NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE  THE  TAX  PAYABLE  TO
LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
Y-THREE  OR  ONE  HUNDRED  EIGHTY-FIVE OF THIS ARTICLE. IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE UNDER  THIS  SECTION  FOR  ANY  TAXABLE  YEAR
REDUCES  THE  TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN
SUCH TAXABLE YEAR SHALL BE TREATED  AS  AN  OVERPAYMENT  OF  TAX  TO  BE
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 3. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
  41. UNDERGROUND INFRASTRUCTURE SECURITY DEVICE CREDIT.  (A)  ALLOWANCE
OF  CREDIT. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND NINE, A TAXPAYER SHALL BE ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS
PROVIDED IN SECTION TWENTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED
BY THIS ARTICLE.
  (B)  APPLICATION  OF  CREDIT.  IN NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT THAT SHALL REDUCE  THE  TAX  PAYABLE  TO
LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
Y-THREE  OR  ONE  HUNDRED  EIGHTY-FIVE OF THIS CHAPTER. IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE UNDER  THIS  SECTION  FOR  ANY  TAXABLE  YEAR
REDUCES  THE  TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN
SUCH TAXABLE YEAR SHALL BE TREATED  AS  AN  OVERPAYMENT  OF  TAX  TO  BE
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.

A. 7322                             3

  S 4. Section 1456 of the tax law is amended by adding a new subsection
(u) to read as follows:
  (U)  UNDERGROUND  INFRASTRUCTURE SECURITY DEVICE CREDIT. (1) ALLOWANCE
OF CREDIT. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO  THOU-
SAND  NINE,  A  TAXPAYER  SHALL  BE  ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION TWENTY-NINE OF THIS CHAPTER, AGAINST THE TAX IMPOSED
BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IN NO EVENT SHALL  THE  CREDIT  UNDER  THIS
SECTION  BE  ALLOWED  IN  AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO
LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
Y-THREE OR ONE HUNDRED EIGHTY-FIVE OF THIS  CHAPTER.  IF,  HOWEVER,  THE
AMOUNT  OF  CREDIT  ALLOWABLE  UNDER  THIS  SECTION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT  DEDUCTIBLE  IN
SUCH  TAXABLE  YEAR  SHALL  BE  TREATED  AS  AN OVERPAYMENT OF TAX TO BE
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S  5. 1. The director of the office of homeland security, in consulta-
tion with the office of cyber security and critical infrastructure coor-
dination, is hereby directed to develop standards for identifying highly
critical underground infrastructure, loss or failure of which would lead
to a substantial loss of life or serious  injury,  significant  economic
loss,  and  would  undermine  the  morale  and confidence of substantial
portions of the community, and may include those which provide access to
points of multiple critical infrastructure components and those near  or
directly  serving secure government facilities, major financial centers,
significant ports of entry, or mass transit centers or lines.
  2. The director of the office of homeland security shall make or cause
to be made a survey of access points to  underground  infrastructure  to
identify  those  points  which  provide access to highly critical under-
ground infrastructure, as defined in section 29  of  the  tax  law,  and
certify  manholes identified in such survey which qualify for such cred-
it.  For the purposes of carrying out this section, the director of  the
office  of  homeland  security  may  request  that  an initial survey be
completed by the entities which own or maintain access  points  to  such
underground  infrastructure,  and that such entities provide information
regarding such access points and such infrastructure  to  the  director,
provided  however, that this section shall not be construed as requiring
such entities to provide such information, provided further however that
the director of the office of homeland security may decline  to  certify
any  access  point  as  being  eligible  for highly critical underground
infrastructure security  tax  credit  when  the  entity  which  owns  or
controls such access point fails to provide information requested by the
director.  Nothing  in  this  section shall be construed as limiting the
director of the office of homeland security for collecting,  requesting,
or  requiring  any  information  as provided for elsewhere in law, or by
order or regulation.
  S 6. This act shall take effect immediately.