A. 4361 2
AND DECLARED THAT THESE INSTITUTIONS ATTRACT A SUBSTANTIAL AMOUNT OF
FEDERAL RESEARCH AND DEVELOPMENT FUNDS THAT COME INTO NEW YORK STATE,
AND THAT THESE INSTITUTIONS ARE HOME TO WORLD-CLASS RESEARCHERS AND
RESEARCH FACILITIES. FINALLY, IT IS FOUND AND DECLARED THAT COLLAB-
ORATION BETWEEN HIGHER EDUCATION INSTITUTIONS AND BUSINESSES WILL STIMU-
LATE PRIVATE INVESTMENT, PRIVATE BUSINESS DEVELOPMENT AND JOB CREATION.
IT IS THE PUBLIC POLICY OF THE STATE TO OFFER SPECIAL INCENTIVES AND
ASSISTANCE THAT WILL SUPPORT THESE COLLABORATIONS WITH THE GOAL OF
DEVELOPMENT OF NEW BUSINESSES, EXPANSION OF EXISTING BUSINESSES, AND THE
DEVELOPMENT OF HUMAN RESOURCES WITHIN AND NEAR EXISTING EMPIRE ZONES AND
TO DO SO WITHOUT ENCOURAGING THE RELOCATION OF BUSINESS INVESTMENT FROM
OTHER AREAS OF THE STATE. IT IS FURTHER FOUND AND DECLARED THAT IT IS
PUBLIC POLICY OF THE STATE TO ACHIEVE THESE GOALS THROUGH THE MUTUAL
COOPERATION OF ALL LEVELS OF STATE AND LOCAL GOVERNMENT AND THE BUSINESS
COMMUNITY.
S 362. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL INDI-
CATE ANOTHER OR DIFFERENT MEANING OR INTENT:
(A) "APPLICANT" SHALL MEAN THE COUNTY, CITY, TOWN OR VILLAGE SUBMIT-
TING AN APPLICATION IN THE MANNER AUTHORIZED BY LOCAL LAW FOR DESIG-
NATION OF AN AREA AS AN ACADEMIC COLLABORATIVE DISTRICT.
(B) "COLLEGE" SHALL MEAN UNIVERSITIES AND OTHER INSTITUTIONS FOR HIGH-
ER EDUCATION, AS SUCH TERM IS DEFINED IN SECTION TWO OF THE EDUCATION
LAW, AUTHORIZED TO CONFER DEGREES BY THE BOARD OF REGENTS OF THE STATE
OF NEW YORK.
(C) "MINORITY-OWNED BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS ENTER-
PRISE, INCLUDING A SOLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION, THAT
IS:
(I) AT LEAST FIFTY-ONE PERCENT OWNED BY ONE OR MORE MINORITY GROUP
MEMBERS;
(II) AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP IS REAL, SUBSTAN-
TIAL AND CONTINUING;
(III) AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP HAS AND EXERCISES
THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
OF THE ENTERPRISE; AND
(IV) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE AND INDE-
PENDENTLY OWNED AND OPERATED.
(D) "ACADEMIC COLLABORATIVE DISTRICT" SHALL MEAN AN AREA WITHIN THE
STATE THAT HAS BEEN DESIGNATED AS AN ACADEMIC COLLABORATIVE DISTRICT
PURSUANT TO THIS ARTICLE.
(E) "WOMEN-OWNED BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS ENTER-
PRISE, INCLUDING A SOLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION, THAT
IS:
(I) AT LEAST FIFTY-ONE PERCENT OWNED BY ONE OR MORE UNITED STATES
CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE WOMEN;
(II) AN ENTERPRISE IN WHICH THE OWNERSHIP INTEREST OF SUCH WOMEN IS
REAL, SUBSTANTIAL AND CONTINUING;
(III) AN ENTERPRISE IN WHICH SUCH WOMEN OWNERSHIP HAS AND EXERCISES
THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
OF THE ENTERPRISE; AND
(IV) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE AND INDE-
PENDENTLY OWNED AND OPERATED.
(F) "LOCALLY OWNED BUSINESS ENTERPRISE" SHALL MEAN A BUSINESS FIRM IN
WHICH THE TOTAL OWNERSHIP INTEREST HELD BY INDIVIDUALS WHO ARE FULL TIME
BONA FIDE RESIDENTS OF SUCH DISTRICT IS MORE THAN EIGHTY PERCENT, WHOSE
BUSINESS ACTIVITIES ARE CONDUCTED IN A MANNER WHEREBY AT LEAST FIFTY
A. 4361 3
PERCENT OF THE ASSETS OF SUCH FIRM ARE LOCATED AND UTILIZED IN SUCH
DISTRICT, AND AT LEAST FORTY PERCENT OF SUCH FIRM'S EMPLOYEES ARE PRIN-
CIPALLY EMPLOYED IN SUCH DISTRICT; PROVIDED HOWEVER, FOR BUSINESS FIRMS
LOCATED WITHIN DISTRICTS DESIGNATED IN A CITY SUCH INDIVIDUALS SHALL
RESIDE WITHIN A COMMUNITY PLANNING BOARD OR WITHIN TRADITIONAL NEIGHBOR-
HOOD BOUNDARIES AND PROVIDED FURTHER HOWEVER FOR BUSINESS FIRMS LOCATED
WITHIN DISTRICTS OUTSIDE OF A CITY SUCH INDIVIDUALS MAY RESIDE IN THE
COUNTY IN WHICH THE DISTRICT IS DESIGNATED.
(G) "CHIEF EXECUTIVE" SHALL MEAN (I) A COUNTY EXECUTIVE OR MANAGER OF
A COUNTY; (II) IN A COUNTY NOT HAVING A COUNTY EXECUTIVE OR MANAGER, THE
CHAIRPERSON OR OTHER PRESIDING OFFICER OF THE COUNTY LEGISLATIVE BODY;
(III) A MAYOR OF A CITY OR VILLAGE, EXCEPT WHERE A CITY OR VILLAGE HAS A
MANAGER, IT SHALL MEAN SUCH A MANAGER; OR (IV) A SUPERVISOR OF A TOWN,
EXCEPT WHERE A TOWN HAS A MANAGER, IT SHALL MEAN SUCH MANAGER.
(H) "MINORITY GROUP MEMBER" SHALL MEAN A UNITED STATES CITIZEN OR
PERMANENT RESIDENT ALIEN WHO IS AND CAN DEMONSTRATE MEMBERSHIP IN ONE OF
THE FOLLOWING GROUPS:
(I) BLACK PERSONS HAVING ORIGINS IN ANY OF THE BLACK AFRICAN RACIAL
GROUPS;
(II) HISPANIC PERSONS OF MEXICAN, PUERTO RICAN, DOMINICAN, CUBAN,
CENTRAL OR SOUTH AMERICAN OF EITHER INDIAN OR HISPANIC ORIGIN, REGARD-
LESS OF RACE;
(III) NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY
OF THE ORIGINAL PEOPLES OF NORTH AMERICA; AND
(IV) ASIAN AND PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY OF THE
FAR EAST COUNTRIES, SOUTH EAST ASIA, THE INDIAN SUBCONTINENT OR THE
PACIFIC ISLANDS.
(I) "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF ECONOMIC DEVELOP-
MENT.
(J) "SINGLE ENTERPRISE" MEANS TWO OR MORE RELATED BUSINESS ENTERPRISES
CHARACTERIZED BY AN ABSENCE OF ARMS LENGTH RELATIONSHIPS FOUND AMONG
ENTERPRISES THAT ARE NOT INTEGRATED. FACTORS TO BE CONSIDERED, AMONG
OTHER THINGS, IN DETERMINING THE EXISTENCE OF A SINGLE ENTERPRISE ARE
INTERRELATION OF OPERATIONS, COMMON MANAGEMENT, CENTRALIZED CONTROL OF
LABOR RELATIONS, COMMON OWNERSHIP AND COMMON FINANCIAL CONTROL.
(K) "HUMAN RESOURCE DEVELOPMENT" SHALL MEAN JOB PREPARATION AND PLACE-
MENT, SKILLS TRAINING AND EDUCATION FOR DISTRICT RESIDENTS AND EMPLOYEES
OF DISTRICT BUSINESSES, CHILD AND FAMILY CARE SERVICES AND FACILITIES,
AND ACTIVITIES TO IMPROVE THE HEALTH BENEFITS AND OTHER BENEFITS
PROVIDED BY DISTRICT BUSINESSES TO THEIR EMPLOYEES.
S 363. CRITERIA FOR ACADEMIC COLLABORATIVE DISTRICT DESIGNATION. TO BE
ELIGIBLE FOR DESIGNATION AS AN ACADEMIC COLLABORATIVE DISTRICT, AN AREA
MUST BE ON AN EXISTING COLLEGE OWNED PROPERTY AND THE BOUNDARIES OF SUCH
PROPERTY SHALL BE CO-TERMINUS WITH THE PROPERTY OF THE COLLEGE.
S 364. RESPONSIBILITIES OF THE COMMISSIONER. THE COMMISSIONER SHALL:
(A) RECEIVE AND REVIEW APPLICATIONS FOR DESIGNATION OF AREAS AS
ACADEMIC COLLABORATIVE DISTRICTS;
(B) MAKE RECOMMENDATIONS TO THE ACADEMIC COLLABORATIVE DISTRICTS
DESIGNATION BOARD, AS ESTABLISHED IN SECTION THREE HUNDRED SIXTY-SIX OF
THIS ARTICLE, FOR DESIGNATION OF AREAS AS ACADEMIC COLLABORATIVE
DISTRICTS, PROVIDED, HOWEVER, THAT ALL SUCH AREAS RECOMMENDED BY THE
COMMISSIONER SHALL MEET THE REQUIREMENTS OF THIS ARTICLE;
(C) REVIEW NEW APPLICATIONS TO REPLACE ANY PREVIOUSLY DESIGNATED
ACADEMIC COLLABORATIVE DISTRICT THE DESIGNATION OF WHICH HAS BEEN TERMI-
NATED OR WITHDRAWN;
A. 4361 4
(D) FILE NOTICE OF THE DESIGNATION OR REDESIGNATION OF AN ACADEMIC
COLLABORATIVE DISTRICT OR OF THE REVISION OR TERMINATION OF SUCH DESIG-
NATION WITH THE APPLICANT, THE DEPARTMENT OF TAXATION AND FINANCE, THE
SECRETARY OF STATE, WITH THE COUNTY, CITY, TOWN OR VILLAGE CLERK OF EACH
COUNTY, CITY, TOWN, OR VILLAGE, RESPECTIVELY, IN WHICH THE ACADEMIC
COLLABORATIVE DISTRICT IS LOCATED, WITH THE SCHOOL DISTRICT GOVERNING
BODY IN WHICH THE ACADEMIC COLLABORATIVE DISTRICT IS LOCATED, WITH THE
COMMISSIONER OF TAXATION AND FINANCE AND WITH OTHER STATE AND LOCAL
ENTITIES; PROVIDED, HOWEVER, THAT SUCH NOTICE SHALL SPECIFY THE DATE
SUCH ACTION WAS TAKEN AND SHALL CONTAIN A DESCRIPTION SUFFICIENT TO
IDENTIFY THE ACADEMIC COLLABORATIVE DISTRICT, INCLUDING THE NAMES OF THE
ABUTTING STREETS, ROADS, HIGHWAYS, BODIES OF WATER, OR OTHER IDENTIFYING
PHYSICAL FEATURES;
(E) ESTABLISH A PRIORITY FOR THE ALLOCATION OF AUTHORITY TO ISSUE
PRIVATE ACTIVITY BONDS FOR THE BENEFIT OF MUNICIPALITIES AND BUSINESS
ENTERPRISES LOCATED OR TO BE LOCATED WITHIN ACADEMIC COLLABORATIVE
DISTRICTS;
(F) COORDINATE WITH THE COMPTROLLER AND THE COMMISSIONER OF TAXATION
AND FINANCE A LINKED DEPOSIT PROGRAM. THE COMPTROLLER AND THE COMMIS-
SIONER OF TAXATION AND FINANCE ARE HEREBY AUTHORIZED AND EMPOWERED TO
ENTER INTO AGREEMENTS WITH FINANCIAL INSTITUTIONS LOCATED IN OR SERVING
THE ACADEMIC COLLABORATIVE DISTRICTS, TO PROVIDE FOR THE DEPOSIT OF
FUNDS ADMINISTERED JOINTLY BY THEM IN SUCH INSTITUTIONS, AT REDUCED
RATES OF RETURN TO THE STATE, IN RETURN FOR COMMITMENTS BY SUCH INSTI-
TUTIONS TO BUSINESSES OF LOANS OF COMPARABLE AMOUNTS, AT REDUCED INTER-
EST RATES, FOR BUSINESS DEVELOPMENT PROJECTS IN THE DISTRICTS THAT WILL
CREATE OR PRESERVE JOBS.
(G) REVIEW A PLAN SUBMITTED NO LATER THAN DECEMBER THIRTY-FIRST, TWO
THOUSAND THIRTEEN, BY THE URBAN DEVELOPMENT CORPORATION AND THE JOB
DEVELOPMENT AUTHORITY, FOR EXTENDING TO MINORITY- OR WOMEN-OWNED
CONTRACTING COMPANIES WHICH ARE ENDEAVORING TO SECURE WORK ON PROJECTS
IN THE DISTRICTS, SURETY GUARANTEES ASSISTANCE AND SUCH OTHER ASSISTANCE
AS MAY BE REQUIRED BY SUCH FIRMS WHICH CURRENTLY IS UNAVAILABLE FROM
OTHER SOURCES.
(H) PROMULGATE REGULATIONS, IN CONSULTATION WITH THE COMMISSIONER OF
LABOR, FOR PROGRAM EVALUATION AND COORDINATE IMPLEMENTATION OF AN EVALU-
ATION SYSTEM, WHICH IS CAPABLE OF COMPILING AND ANALYZING ACCURATE AND
CONSISTENT INFORMATION NECESSARY FOR AN ASSESSMENT OF WHETHER STATUTORY
OBJECTIVES AND CRITERIA ARE BEING MET;
(I) REVIEW PERFORMANCE OBJECTIVES AND PROGRESS IN MEETING OBJECTIVES
WITH DISTRICT BOARDS AND DISTRICT ADMINISTRATIVE ENTITIES AS PART OF THE
ANNUAL ADMINISTRATIVE CONTRACT PROCESS;
(J) ASSIST DISTRICTS IN INCREASING THEIR CHILD CARE CAPACITY AND IN
PLANNING SPECIAL CARE ACTIVITIES, INCLUDING THE PROVISION OF TECHNICAL
ASSISTANCE BY THE DEPARTMENT IN PLANNING FOR THE PROVISION OF CHILD CARE
SERVICES IN THE DISTRICTS;
(K) COORDINATE WITH THE DEPARTMENT OF LABOR, THE STATE EDUCATION
DEPARTMENT, THE JOB TRAINING PARTNERSHIP COUNCIL AND AGENCIES OF THE
STATE THE INCLUSION IN ANNUAL AND BIENNIAL PLANS OF SUCH ENTITIES' STRA-
TEGIES FOR INCREASING AND IMPROVING HUMAN RESOURCE DEVELOPMENT SERVICES
ON A PRIORITY BASIS, CONSISTENT WITH FEDERAL STATUTORY AND REGULATORY
REQUIREMENTS, TO RESIDENTS OF THE DISTRICTS AND EMPLOYEES OF DISTRICT
BUSINESSES, INCLUDING, BUT NOT LIMITED TO, THE GOVERNOR'S PLAN FOR COOR-
DINATION AND SPECIAL SERVICES OF THE JOB TRAINING PARTNERSHIP COUNCIL,
THE JOBS PLAN AND WAGNER-PEYSER ANNUAL PLAN FOR SERVICES OF THE DEPART-
A. 4361 5
MENT OF LABOR, AND THE CAREER EDUCATION STATE PLAN OF THE STATE EDUCA-
TION DEPARTMENT;
(L) ARRANGE WITH THE JOB TRAINING PARTNERSHIP COUNCIL THE PROVISION OF
JOB TRAINING PARTNERSHIP ACT FUNDS FOR USE WITHIN THE DISTRICTS WITH THE
COOPERATION OF THE SERVICE DELIVERY AREAS IN THE GOVERNOR'S PLAN FOR
COORDINATION AND SPECIAL SERVICES;
(M) SUBJECT TO THE AVAILABILITY OF FUNDS, ARRANGE FOR THE ALLOCATION
AND RESERVATION OF FUNDS FROM THE INFRASTRUCTURE IMPROVEMENT PROGRAMS OF
STATE AGENCIES AND AUTHORITIES TO ASSIST THE DISTRICTS TO MAKE PUBLIC
IMPROVEMENTS NECESSARY FOR COMMUNITY, COMMERCIAL, INDUSTRIAL AND TOURISM
DEVELOPMENT PROJECTS IN SUPPORT OF DISTRICT REVITALIZATION;
(N) SYSTEMATICALLY ENLIST OTHER STATE AGENCIES AND AUTHORITIES TO
PARTICIPATE IN DISTRICT PROGRAMS AND PROJECTS AND IN COOPERATIVE PLAN-
NING OF INTERAGENCY DISTRICT ACTIVITIES IN SUPPORT OF DISTRICT REVITALI-
ZATION EFFORTS;
(O) RECOMMEND FOR ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAMS OF THE
DEPARTMENT OF ECONOMIC DEVELOPMENT, URBAN DEVELOPMENT CORPORATION, JOB
DEVELOPMENT AUTHORITY, AND SCIENCE AND TECHNOLOGY FOUNDATION SPECIAL
TERMS AND CONDITIONS FOR VIABLE DISTRICT PROJECTS AND PROGRAMS;
(P) AWARD PREFERENCE TO BE GIVEN TO APPLICATIONS SUBMITTED BY OR ON
BEHALF OF DISTRICTS FOR ENTREPRENEURIAL ASSISTANCE PROGRAMS UNDER ARTI-
CLE NINE OF THE OMNIBUS ECONOMIC DEVELOPMENT ACT OF NINETEEN HUNDRED
EIGHTY-SEVEN TO SUPPORT THE CREATION OF NEW ENTREPRENEURIAL DEVELOPMENT
AND ENTREPRENEURIAL SUPPORT CENTERS;
(Q) REVIEW A PROGRAM PLAN AND GUIDELINES SUBMITTED BY THE DIVISION OF
MINORITY AND WOMEN'S BUSINESS DEVELOPMENT OF THE DEPARTMENT OF ECONOMIC
DEVELOPMENT NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND THIRTEEN FOR
EXPEDITED REVIEW OF APPLICATIONS BY DISTRICT BUSINESSES FOR CERTIF-
ICATION AS MINORITY- OR WOMEN-OWNED BUSINESSES;
(R) REVIEW A PROGRAM PLAN AND GUIDELINES SUBMITTED NO LATER THAN MARCH
THIRTY-FIRST, TWO THOUSAND THIRTEEN BY THE JOB DEVELOPMENT AUTHORITY FOR
EXTENDING TO SMALL BUSINESSES WITHIN THE DISTRICTS, SUBJECT TO FUNDS
AVAILABILITY, GUARANTEES OF PERFORMANCE BONDS OR BID BONDS FOR
CONSTRUCTION, SERVICE AND MANUFACTURING CONTRACTS WITH FEDERAL, STATE
AND LOCAL GOVERNMENT AGENCIES AND AUTHORITIES, AS WELL AS THE PRIVATE
SECTOR;
(S) REVIEW A PROGRAM PLAN SUBMITTED BY THE DEPARTMENT OF LABOR NO
LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND THIRTEEN FOR THE ESTABLISH-
MENT BY THE DEPARTMENT OF A COMMUNITY SERVICE CENTER, TO THE EXTENT
PRACTICABLE, IN OR IMMEDIATELY ADJACENT TO EACH DISTRICT;
(T) COORDINATE WITH THE URBAN DEVELOPMENT CORPORATION THE CREATION OF
A SPECIAL CATEGORY OF ASSISTANCE FOR DISTRICTS WITHIN THE REGIONAL
ECONOMIC DEVELOPMENT PARTNERSHIP PROGRAM, WHICH WILL MAKE AVAILABLE
ECONOMIC DEVELOPMENT ASSISTANCE GRANTS FOR DISTRICT PROGRAMS AND ACTIV-
ITIES, INCLUDING, BUT NOT LIMITED TO, PLANNING, SERVICE COORDINATION,
AND LOCAL INSTITUTIONAL CAPACITY BUILDING FOR HUMAN RESOURCE DEVELOPMENT
NECESSARY FOR ECONOMIC REVITALIZATION; PLANNING AND DEVELOPMENT OF SMALL
BUSINESS INCUBATORS; JOB PLACEMENT AND PREPAREDNESS PROGRAMS FOR
DISTRICTS RESIDENTS; EDUCATION AND TRAINING PROGRAMS FOR DISTRICT BUSI-
NESSES; CHILD CARE PROGRAMS AND PROJECTS SUPPORTIVE OF BUSINESS DEVELOP-
MENT; TECHNICAL ASSISTANCE FOR MINORITY-OWNED AND WOMEN-OWNED BUSINESS
DEVELOPMENT; TRAINING FOR DISTRICT OFFICIALS; BUSINESS AND TOURISM
DEVELOPMENT AND MARKETING PROGRAMS; AND OTHER INNOVATIVE PROGRAMS AND
ACTIVITIES IN SUPPORT OF ECONOMIC AND COMMUNITY DEVELOPMENT WITHIN THE
DISTRICTS; AND
A. 4361 6
(U) ASSIST IN THE DEVELOPMENT OF A PLAN, IN COORDINATION WITH THE
HEALTH AND INSURANCE DEPARTMENTS, TO ASSIST DISTRICTS IN OBTAINING
AFFORDABLE EMPLOYEE HEALTH INSURANCE FOR SMALL BUSINESS ENTERPRISES
LOCATED WITHIN THE DISTRICT.
S 365. RESCINDING OF LOCAL INCENTIVES. SHOULD A CERTIFIED BUSINESS
ENTERPRISE IN AN ACADEMIC COLLABORATIVE DISTRICT BE DECERTIFIED, ANY
LOCAL INCENTIVE PROVIDED BY SUCH MUNICIPALITY MAY BE RESCINDED BY LOCAL
LAW OR RESOLUTION BY THE GOVERNING BODY OF SUCH MUNICIPALITY, NOTWITH-
STANDING SUBDIVISION FIVE OF SECTION FOUR HUNDRED EIGHTY-FIVE-L OF THE
REAL PROPERTY TAX LAW.
S 366. DESIGNATION OF ACADEMIC COLLABORATIVE DISTRICTS. (A) THE
ACADEMIC COLLABORATIVE DISTRICTS DESIGNATION BOARD IS HEREBY CREATED.
SUCH BOARD SHALL CONSIST OF THE COMMISSIONER OF TAXATION AND FINANCE,
THE DIRECTOR OF THE BUDGET, FIVE MEMBERS TO BE APPOINTED BY THE GOVERNOR
(ONE OF WHOM MUST BE THE PRESIDENT OR CHIEF EXECUTIVE OFFICER OF A NON-
PUBLIC COLLEGE OR UNIVERSITY IN NEW YORK STATE); THREE MEMBERS TO BE
APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE; THREE MEMBERS TO BE
APPOINTED BY THE SPEAKER OF THE ASSEMBLY; ONE MEMBER TO BE APPOINTED BY
THE MINORITY LEADER OF THE SENATE AND ONE MEMBER TO BE APPOINTED BY THE
MINORITY LEADER OF THE ASSEMBLY. THE GOVERNOR SHALL DESIGNATE FROM AMONG
THE VOTING MEMBERS THE CHAIRMAN OF THE BOARD.
(B) THE ACADEMIC COLLABORATIVE DISTRICTS DESIGNATION BOARD SHALL
DESIGNATE FROM THE RECOMMENDATIONS MADE BY THE COMMISSIONER WITHIN EIGH-
TEEN MONTHS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, NOT MORE THAN
FIFTY ACADEMIC COLLABORATIVE DISTRICTS. TWENTY-FIVE ACADEMIC COLLABORA-
TIVE DISTRICTS SHALL BE ALLOCATED TO PRIVATE COLLEGES AND TWENTY-FIVE
ACADEMIC COLLABORATIVE DISTRICTS SHALL BE ALLOCATED TO PUBLIC COLLEGES.
(C) IN REVIEWING APPLICATIONS FOR DESIGNATION OF AN AREA AS AN ACADEM-
IC COLLABORATIVE DISTRICT, THE BOARD SHALL CONSIDER THE LEVEL OF LOCAL
PARTICIPATION INCLUDING, BUT NOT LIMITED TO, LOCAL TAX INCENTIVES AND
THE PROVISION OF LOCAL SERVICES.
(D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, SUCH
DISTRICTS DESIGNATED, SHALL BE, AS FAR AS PRACTICABLE, EQUALLY DISTRIB-
UTED BETWEEN URBAN, SUBURBAN AND RURAL AREAS.
(E) THE DEPARTMENT OF AUDIT AND CONTROL, THE DEPARTMENT OF TAXATION
AND FINANCE, THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AND THE LEGISLATIVE
COMMISSION ON EXPENDITURE REVIEW SHALL PREPARE REPORTS ON THE MANAGEMENT
AND THE ECONOMIC AND FISCAL IMPACT OF ACADEMIC COLLABORATIVE DISTRICTS.
(F) IN REVIEWING APPLICATIONS FOR DESIGNATION OF AN AREA AS AN ACADEM-
IC COLLABORATIVE DISTRICT, THE BOARD SHALL GIVE PRIORITY TO COLLEGES
THAT:
(I) ARE LOCATED IN COUNTIES IN WHICH THE UNEMPLOYMENT RATE IS HIGHER
THAN THE AVERAGE UNEMPLOYMENT RATE FOR THE ENTIRE STATE;
(II) HAVE THE POTENTIAL TO CREATE A SIGNIFICANT NUMBER OF NEW JOBS;
AND
(III) SHALL USE THE RESULTS OF BASIC RESEARCH TO CREATE NEW COMMERCIAL
APPLICATIONS OF THAT RESEARCH.
S 367. APPLICATION FOR ACADEMIC COLLABORATIVE DISTRICT DESIGNATION.
(A) (I) A COLLEGE MAY PREPARE AND SUBMIT AN APPLICATION TO THE COMMIS-
SIONER FOR DESIGNATION OF AN AREA THEREIN AS AN ACADEMIC COLLABORATIVE
DISTRICT;
(II) NO APPLICATION FOR DESIGNATION OF AN AREA AS AN ACADEMIC COLLABO-
RATIVE DISTRICT PURSUANT TO THIS ARTICLE SHALL BE ACCEPTED UNLESS THE
APPLICANT DEMONSTRATES THAT IT HAS, TO THE MAXIMUM EXTENT FEASIBLE,
SOLICITED AND CONSIDERED THE VIEWS OF RESIDENTS OF THE PROPOSED
DISTRICT, THE VIEWS OF STATE AND LOCAL OFFICIALS ELECTED TO REPRESENT
A. 4361 7
SUCH RESIDENTS AND THE LOCAL PRIVATE ORGANIZATIONS REPRESENTING SUCH
RESIDENTS.
(B) EACH APPLICATION SHALL:
(I) BE PREPARED IN A MANNER AND FORM PRESCRIBED BY REGULATIONS PROMUL-
GATED BY THE COMMISSIONER, AND THE APPLICANT COLLEGE SHALL ENSURE THAT
THE INFORMATION CONTAINED IN SUCH APPLICATION, TO THE MAXIMUM EXTENT
POSSIBLE, IS ACCURATE AND COMPLETE;
(II) INCLUDE EVIDENCE OF THE ADOPTION OF AN ACADEMIC COLLABORATIVE
DISTRICT DEVELOPMENT PLAN BY THE LOCAL GOVERNING BODY OF THE AREA IN
WHICH THE ACADEMIC COLLABORATIVE DISTRICT IS TO BE LOCATED;
(III) INCLUDE A MAP OF THE AREA COMPRISING THE PROPOSED ACADEMIC
COLLABORATIVE DISTRICT, SHOWING EXISTING STREETS, HIGHWAYS, WATERWAYS,
NATURAL BOUNDARIES AND OTHER PHYSICAL FEATURES;
(IV) INCLUDE EVIDENCE THAT THE APPLICANT HAS, TO THE MAXIMUM EXTENT
FEASIBLE, SOLICITED AND CONSIDERED THE VIEWS OF RESIDENTS OF THE
PROPOSED ACADEMIC COLLABORATIVE DISTRICT AND THE LOCAL GOVERNMENTAL AND
PRIVATE ORGANIZATIONS REPRESENTING SUCH RESIDENTS;
(V) SPECIFY GOALS AND OBJECTIVES, BOTH SHORT TERM AND LONG TERM, FOR
THE PROPOSED DISTRICT;
(VI) IDENTIFY FINANCIAL COMMITMENTS THE APPLICANT WILL MAKE TO THE
DISTRICT FOR ACTIVITIES, INCLUDING, BUT NOT LIMITED TO, MARKETING OF THE
DISTRICT FOR BUSINESS DEVELOPMENT, HUMAN RESOURCE SERVICES FOR DISTRICT
RESIDENTS AND BUSINESSES, AND SERVICES FOR SMALL AND MINORITY- AND
WOMEN-OWNED BUSINESSES; AND
(VII) IDENTIFY PUBLICLY CONTROLLED AND OTHER DEVELOPABLE LANDS AND
BUILDINGS WITHIN THE PROPOSED DISTRICT WHICH ARE OR COULD BE MADE AVAIL-
ABLE FOR INDUSTRIAL AND COMMERCIAL DEVELOPMENT.
S 368. ACADEMIC COLLABORATIVE DISTRICT DEVELOPMENT PLAN. AN ACADEMIC
COLLABORATIVE DISTRICT DEVELOPMENT PLAN SHALL BE FILED WITH THE COMMIS-
SIONER, AND SHALL DEMONSTRATE THE METHODS BY WHICH THE APPLICANT INTENDS
TO PROMOTE THE DEVELOPMENT OF NEW BUSINESS AND THE EXPANSION OF EXISTING
BUSINESS WITHIN THE ACADEMIC COLLABORATIVE DISTRICT AND SHALL INCLUDE,
BUT SHALL NOT BE LIMITED TO:
(A) A STATEMENT INDICATING HOW ACADEMIC COLLABORATIVE DISTRICT DESIG-
NATION WOULD ASSIST IN THE REVITALIZATION OF THE AREA IN WHICH SUCH
DISTRICT IS PROPOSED TO BE LOCATED;
(B) A DESCRIPTION OF THE METHOD BY WHICH INDUSTRIAL DEVELOPMENT AGEN-
CIES OR OTHER PUBLIC FINANCE AGENCIES SHALL GRANT A PREFERENCE FOR ALLO-
CATION OF PRIVATE ACTIVITY BONDING AUTHORITY FOR PROJECTS LOCATED IN THE
PROPOSED ACADEMIC COLLABORATIVE DISTRICT;
(C) A DESCRIPTION OF PROPOSALS FOR INFRASTRUCTURE IMPROVEMENTS AND
INVESTMENTS AND A TIMETABLE FOR THEIR COMPLETION;
(D) A STATEMENT IDENTIFYING THOSE LOCAL TAX INCENTIVES PROPOSED TO BE
OFFERED WITHIN THE DISTRICT;
(E) A DESCRIPTION OF A PROCEDURE TO EXPEDITE THE ISSUANCE OF ANY
REQUIRED LOCAL PERMITS OR LICENSES;
(F) A DESCRIPTION OF OTHER ACTIVITIES TO BE UNDERTAKEN BY MUNICIPAL
AGENCIES, BUSINESS ENTITIES, NOT-FOR-PROFIT CORPORATIONS,
COMMUNITY-BASED ORGANIZATIONS OR ANY OTHER PERSONS, WHICH ARE DESIGNED
TO PROMOTE PRIVATE SECTOR BUSINESS INVESTMENT AND JOB DEVELOPMENT IN THE
DISTRICT AND A DESCRIPTION OF THE JOB TRAINING OR JOB PLACEMENT SERVICES
TO BE MADE AVAILABLE TO DISTRICT RESIDENTS IN NEED OF SUCH TRAINING OR
SERVICES;
(G) AN INVENTORY OF REAL PROPERTY LOCATED WITHIN THE PROPOSED ACADEMIC
COLLABORATIVE DISTRICT THAT IS OWNED BY A MUNICIPALITY OR THE STATE AND
IS CURRENTLY UNUSED BY THE MUNICIPALITY OR THE STATE;
A. 4361 8
(H) A DESCRIPTION OF THE BUSINESS DEVELOPMENT PROGRAMS AND SERVICES TO
BE AVAILABLE TO STIMULATE THE CREATION OF NEW SMALL BUSINESSES, INCLUD-
ING NEW SMALL MINORITY AND WOMEN BUSINESS ENTERPRISES;
(I) A DESCRIPTION OF EFFORTS THAT WILL BE UNDERTAKEN TO PREVENT OR
DISCOURAGE THE DISPLACEMENT OF RESIDENTS OF THE PROPOSED ACADEMIC COLLA-
BORATIVE DISTRICT;
(J) A DESCRIPTION OF ACTIVITIES DESIGNED TO ENSURE THE MEANINGFUL
PARTICIPATION OF MINORITY-OWNED AND WOMEN-OWNED BUSINESS ENTERPRISES IN
ACADEMIC COLLABORATIVE DISTRICT DEVELOPMENT ACTIVITIES;
(K) A DESCRIPTION OF PROVISIONS FOR THE PARTICIPATION OF NOT-FOR-PRO-
FIT AND BUSINESS CORPORATIONS IN THE DEVELOPMENT OF THE PLAN AND IN
STRATEGIES FOR IMPLEMENTATION OF THE PLAN;
(L) A DESCRIPTION OF THE MARKETING STRATEGY TO BE EMPLOYED BY THE
APPLICANT TO PROMOTE BUSINESS DEVELOPMENT IN THE DISTRICT AND THE
RESOURCES TO BE COMMITTED BY THE APPLICANT AND OTHER ORGANIZATIONS TO
THE IMPLEMENTATION OF SUCH STRATEGY;
(M) A DESCRIPTION OF THE METHOD BY WHICH THE APPLICANT WILL EVALUATE
THE SUCCESS OF ANY ACTIVITIES TO BE UNDERTAKEN IN THE PROPOSED ACADEMIC
COLLABORATIVE DISTRICT, PROVIDED, HOWEVER, THAT THE APPLICANT SHALL TAKE
INTO CONSIDERATION THE FACTORS UPON WHICH THE SELECTION OF THE AREA WAS
BASED IN ANY EVALUATION;
(N) A DESCRIPTION OF PROVISIONS FOR PARTICIPATION AND ALLOCATION OF
FUNDS BY THE AFFECTED SERVICE DELIVERY AREA PRIVATE INDUSTRY COUNCIL AND
ADMINISTRATIVE ENTITY ESTABLISHED PURSUANT TO THE JOB TRAINING PARTNER-
SHIP ACT (P.L. 97-300, AS AMENDED) TO PROVIDE JOB TRAINING IN THE
DISTRICT;
(O) A STATEMENT OF THE REASONS WHY THE PARTICULAR GEOGRAPHIC CONFIG-
URATION OF THE DISTRICT WAS SELECTED;
(P) A DESCRIPTION OF THE SPECIAL PROGRAMS TO BE OPERATED BY EDUCA-
TIONAL INSTITUTIONS AND OTHER TRAINING ENTITIES IN THE AREA TO PREPARE
AND TRAIN DISTRICT RESIDENTS FOR EMPLOYMENT BY BUSINESSES LOCATED WITHIN
AND OUTSIDE THE DISTRICT;
(Q) A STATEMENT FROM THE APPROPRIATE REGIONAL ECONOMIC DEVELOPMENT
COUNCIL SETTING FORTH THE SPECIFIC RESOURCES TO BE ALLOCATED FOR BUSI-
NESS DEVELOPMENT IN THE DISTRICT;
(R) A DESCRIPTION OF FACILITIES FOR LICENSED AND CERTIFIED CHILD DAY
CARE FOR THE CHILDREN OF PERSONS ENGAGED IN TRAINING FOR EMPLOYMENT IN,
OR EMPLOYED IN, THE DISTRICT;
(S) A DESCRIPTION OF SPECIFIC STRATEGIES AND PRIORITIES FOR ECONOMIC
REVITALIZATION OF THE DISTRICT AND OF INDICATORS TO BE USED TO MEASURE
PERFORMANCE AGAINST OBJECTIVES;
(T) A STATEMENT OF HUMAN RESOURCE DEVELOPMENT GOALS FOR THE ACADEMIC
COLLABORATIVE DISTRICT AND SPECIFIC STRATEGIES FOR ACHIEVING THEM;
(U) A DESCRIPTION OF HOW THE APPLICANT WILL USE DISTRICT DESIGNATION
TO COORDINATE ECONOMIC DEVELOPMENT PROGRAMS AND PROVIDERS AT THE LOCAL
LEVEL TO SERVICE THE DISTRICT; AND
(V) A DESCRIPTION OF THE FINANCIAL COMMITMENTS WHICH THE APPLICANT IS
PREPARED TO MAKE TO THE DISTRICT, INCLUDING, BUT NOT LIMITED TO, SPECIF-
IC COMMITMENTS FOR INFRASTRUCTURE IMPROVEMENTS.
S 369. TERMINATION OR REVISION OF AN ACADEMIC COLLABORATIVE DISTRICT.
(A) EXCEPT AS PROVIDED IN THIS SECTION, ANY DESIGNATION OF AN AREA AS AN
ACADEMIC COLLABORATIVE DISTRICT SHALL REMAIN IN EFFECT DURING THE PERIOD
BEGINNING ON THE DATE OF DESIGNATION AND ENDING JULY THIRTY-FIRST, TWO
THOUSAND EIGHTEEN.
(B) AFTER CONSULTATION WITH THE DIRECTOR OF THE BUDGET AND THE COMMIS-
SIONER OF LABOR, THE COMMISSIONER MAY TERMINATE THE DESIGNATION OF AN
A. 4361 9
AREA AS AN ACADEMIC COLLABORATIVE DISTRICT UPON A FINDING THAT (I) THE
APPLICANT HAS FAILED SUBSTANTIALLY TO IMPLEMENT THE ACADEMIC COLLABORA-
TIVE DISTRICT DEVELOPMENT PLAN WITHIN THE TIME STATED THEREIN; (II)
THERE HAS BEEN NO SUBSTANTIAL BUSINESS DEVELOPMENT OR JOB CREATION WITH-
IN THE AREA DESIGNATED AS AN ACADEMIC COLLABORATIVE DISTRICT WITHIN FIVE
YEARS AFTER SUCH DESIGNATION; (III) THERE HAS BEEN INADEQUATE MANAGEMENT
AND EVALUATION OF THE DISTRICT AT THE LOCAL LEVEL; OR (IV) THE APPLICANT
HAS REPEATEDLY FAILED TO COMPLY WITH PROGRAM REPORTING REQUIREMENTS,
PROVIDED, HOWEVER, THAT NO TERMINATION SHALL OCCUR UNLESS AND UNTIL
WRITTEN NOTICE HAS BEEN GIVEN TO THE APPLICANT AND A PUBLIC HEARING HAS
BEEN HELD THIRTY DAYS PRIOR TO THE EFFECTIVE DATE OF SUCH TERMINATION.
(C) A COLLEGE MAY, BY RESOLUTION, SUBMIT TO THE COMMISSIONER A REQUEST
TO REVISE THE BOUNDARIES OF AN EXISTING ACADEMIC COLLABORATIVE DISTRICT.
THE COMMISSIONER MAY, AFTER CONSULTATION WITH THE COMMISSIONER OF LABOR,
APPROVE SUCH REVISION SUBJECT TO THE FOLLOWING PROVISIONS:
(I) ANY REVISION OF THE BORDERS OF AN ACADEMIC COLLABORATIVE DISTRICT
SHALL BE BASED UPON A DETERMINATION BY THE COMMISSIONER THAT A CHANGE IN
CIRCUMSTANCES HAS OCCURRED SINCE THE ESTABLISHMENT OF THE EXISTING
BORDERS WHICH MAKES REVISION OF SUCH BORDERS NECESSARY OR DESIRABLE.
(II) THE COMMISSIONER SHALL AFFIRM THAT SUCH REVISION WOULD NOT HAVE
THE EFFECT OF PRODUCING AN ACADEMIC COLLABORATIVE DISTRICT WHICH DOES
NOT SATISFY THE CRITERIA FOR DISTRICT DESIGNATION ESTABLISHED BY OR
PURSUANT TO SECTION THREE HUNDRED SIXTY-THREE OF THIS ARTICLE.
(III) THE COMMISSIONER MAY GRANT APPROVAL OF REVISION OF THE BORDERS
OF AN ACADEMIC COLLABORATIVE DISTRICT WITHOUT PRIOR PUBLIC NOTICE AND
WITHOUT A PRIOR PUBLIC HEARING IF SUCH REVISION ADDS TERRITORY TO AN
EXISTING ACADEMIC COLLABORATIVE DISTRICT, BUT DOES NOT REMOVE TERRITORY
FROM SUCH DISTRICT.
(IV) THE COMMISSIONER MAY GRANT APPROVAL OF A REVISION OF THE BORDERS
OF AN ACADEMIC COLLABORATIVE DISTRICT AFTER PUBLIC NOTICE OF SUCH
PROPOSED REVISION AND A PUBLIC HEARING AT LEAST THIRTY DAYS PRIOR TO THE
EFFECTIVE DATE OF SUCH REVISION, IF SUCH REVISION REMOVES TERRITORY FROM
AN EXISTING ACADEMIC COLLABORATIVE DISTRICT.
(V) THE REVISION OF THE BORDERS OF AN ACADEMIC COLLABORATIVE DISTRICT
SHALL HAVE NO EFFECT ON THE DURATION OF THE DESIGNATION OF SUCH ACADEMIC
COLLABORATIVE DISTRICT AS PROVIDED BY SUBDIVISION (A) OF THIS SECTION.
(VI) IT IS THE POLICY TO ALLOW EACH DISTRICT NO MORE THAN ONE BOUNDARY
AMENDMENT WITHIN A TWELVE MONTH PERIOD. IF, HOWEVER, THERE IS A CHANGE
IN CIRCUMSTANCES INVOLVING EXTENUATING FACTORS WITHIN THE YEAR (SUCH AS
THE ATTRACTION/RETENTION OF A MAJOR POTENTIAL/AREA EMPLOYER, WHICH IS
CONSISTENT WITH THE DISTRICT'S DEVELOPMENT GOALS), THE REQUEST WILL BE
CONSIDERED.
(D) UPON THE TERMINATION OR REVISION OF THE BORDERS OF AN ACADEMIC
COLLABORATIVE DISTRICT AS PROVIDED IN THIS SECTION, THE COMMISSIONER
SHALL FILE NOTICE OF SUCH ACTION AS REQUIRED BY SECTION THREE HUNDRED
SIXTY-FOUR OF THIS ARTICLE.
S 2. The real property tax law is amended by adding a new section
485-n to read as follows:
S 485-N. ACADEMIC COLLABORATIVE DISTRICT EXEMPTION. 1. (A) REAL PROP-
ERTY CONSTRUCTED, ALTERED, INSTALLED OR IMPROVED IN AN AREA DESIGNATED
AN ACADEMIC COLLABORATIVE DISTRICT PURSUANT TO ARTICLE EIGHTEEN OF THE
ECONOMIC DEVELOPMENT LAW SHALL BE EXEMPT FROM TAXATION AND SPECIAL AD
VALOREM LEVIES BY ANY MUNICIPAL CORPORATION IN WHICH LOCATED, FOR THE
PERIOD AND TO THE EXTENT HEREIN PROVIDED, PROVIDED THAT THE GOVERNING
BOARD OF SUCH MUNICIPAL CORPORATION, AFTER PUBLIC HEARING, ADOPTS A
LOCAL LAW, ORDINANCE OR RESOLUTION PROVIDING THEREFOR.
A. 4361 10
(B) FOR EXEMPTIONS COMMENCING IN THE FIRST SEVEN YEARS FROM THE DATE
ON WHICH THE ACADEMIC COLLABORATIVE DISTRICT WAS DESIGNATED, THE AMOUNT
OF SUCH EXEMPTION IN ANY OF THESE YEARS SHALL BE ONE HUNDRED PERCENT OF
THE "BASE AMOUNT", DETERMINED PURSUANT TO SUBDIVISION TWO OF THIS
SECTION. IN THE EIGHTH, NINTH AND TENTH YEARS, THE AMOUNT OF THE
EXEMPTION SHALL BE SEVENTY-FIVE PERCENT, FIFTY PERCENT, AND TWENTY-FIVE
PERCENT, RESPECTIVELY, OF SUCH BASE AMOUNT.
(C) FOR EXEMPTIONS COMMENCING IN THE EIGHTH, NINTH AND TENTH YEARS
FROM THE DATE ON WHICH THE ACADEMIC COLLABORATIVE DISTRICT WAS DESIG-
NATED, THE AMOUNT OF SUCH EXEMPTION SHALL BE SEVENTY-FIVE PERCENT, FIFTY
PERCENT AND TWENTY-FIVE PERCENT, RESPECTIVELY, OF THE "BASE AMOUNT",
DETERMINED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
1-A. (A) A MUNICIPAL CORPORATION MAY PROVIDE IN SUCH LOCAL LAW, ORDI-
NANCE OR RESOLUTION, OR IN A SEPARATE LOCAL LAW, ORDINANCE OR RESOLUTION
ADOPTED AFTER PUBLIC HEARING, THAT THE EXEMPTION SO AUTHORIZED SHALL BE
FOR A TERM OF TEN YEARS, NOTWITHSTANDING THAT THE DESIGNATION OF THE
DISTRICT MAY EXPIRE PRIOR TO THE END OF SUCH TEN YEAR TERM. ANY SUCH
LOCAL LAW, ORDINANCE OR RESOLUTION SHALL BE APPLICABLE ONLY TO
EXEMPTIONS COMMENCING ON ASSESSMENT ROLLS WITH TAXABLE STATUS DATES ON
OR AFTER THE EFFECTIVE DATE OF SUCH LOCAL LAW, ORDINANCE OR RESOLUTION.
(B) WHERE SUCH LOCAL LAW, ORDINANCE OR RESOLUTION HAS BEEN ADOPTED,
THE AMOUNT OF SUCH EXEMPTION IN THE FIRST SEVEN YEARS OF ITS TERM SHALL
BE ONE HUNDRED PERCENT OF THE "BASE AMOUNT," DETERMINED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION. THE AMOUNT OF THE EXEMPTION IN THE
EIGHTH, NINTH, AND TENTH YEARS OF ITS TERM SHALL BE SEVENTY-FIVE
PERCENT, FIFTY PERCENT AND TWENTY-FIVE PERCENT, RESPECTIVELY, OF SUCH
BASE AMOUNT.
2. (A) THE BASE AMOUNT OF THE EXEMPTION SHALL BE THE EXTENT OF THE
INCREASE IN ASSESSED VALUE ATTRIBUTABLE TO SUCH CONSTRUCTION, ALTER-
ATION, INSTALLATION OR IMPROVEMENT AS DETERMINED IN THE INITIAL YEAR FOR
WHICH APPLICATION FOR EXEMPTION IS MADE PURSUANT TO THIS SECTION. THE
BASE AMOUNT SHALL REMAIN CONSTANT FOR THE AUTHORIZED TERM OF THE
EXEMPTION, SUBJECT TO THE FOLLOWING:
(I) IF THERE IS SUBSEQUENT CONSTRUCTION, ALTERATION, INSTALLATION OR
IMPROVEMENT DURING THE TERM OF THE EXEMPTION, THE BASE AMOUNT SHALL BE
REVISED TO INCLUDE THE INCREASE IN ASSESSED VALUE ATTRIBUTABLE TO SUCH
CONSTRUCTION, ALTERATION, INSTALLATION OR IMPROVEMENT.
(II) IF A CHANGE IN LEVEL OF ASSESSMENT OF FIFTEEN PERCENT OR MORE IS
CERTIFIED FOR AN ASSESSMENT ROLL PURSUANT TO THE RULES OF THE STATE
BOARD, THE BASE AMOUNT SHALL BE ADJUSTED BY SUCH CHANGE IN LEVEL OF
ASSESSMENT. THE EXEMPTION ON THAT ASSESSMENT ROLL SHALL THEREUPON BE
RECOMPUTED, NOTWITHSTANDING THE FACT THAT THE ASSESSOR RECEIVES THE
CERTIFICATION AFTER THE COMPLETION, VERIFICATION AND FILING OF THE FINAL
ASSESSMENT ROLL. IN THE EVENT THE ASSESSOR DOES NOT HAVE CUSTODY OF THE
ROLL WHEN SUCH CERTIFICATION IS RECEIVED, THE ASSESSOR SHALL CERTIFY THE
RECOMPUTED EXEMPTION TO THE LOCAL OFFICERS HAVING CUSTODY AND CONTROL OF
THE ROLL, AND SUCH LOCAL OFFICERS ARE HEREBY DIRECTED AND AUTHORIZED TO
ENTER THE RECOMPUTED EXEMPTION CERTIFIED BY THE ASSESSOR ON THE ROLL.
(B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS, PURSUANT TO ARTICLE
EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW:
(I) NOTICE OF THE DESIGNATION OF THE ACADEMIC COLLABORATIVE DISTRICT
HAS BEEN FILED WITH THE CLERK OF THE ASSESSING UNIT BY THE COMMISSIONER
OF ECONOMIC DEVELOPMENT ON OR BEFORE THE APPLICABLE TAXABLE STATUS DATE;
(II) THE CONSTRUCTION, ALTERATION, INSTALLATION OR IMPROVEMENT
COMMENCED ON OR AFTER THE DATE THE ACADEMIC COLLABORATIVE DISTRICT WAS
DESIGNATED; AND
A. 4361 11
(III) THE DESIGNATION OF THE ACADEMIC COLLABORATIVE DISTRICT HAS NOT
ENDED AND HAS NOT BEEN TERMINATED BY THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT ON OR BEFORE THE APPLICABLE TAXABLE STATUS DATE.
(C) FOR PURPOSES OF THIS SECTION THE TERMS CONSTRUCTION, ALTERATION,
INSTALLATION AND IMPROVEMENT SHALL NOT INCLUDE ORDINARY MAINTENANCE AND
REPAIRS.
(D) NO SUCH EXEMPTION SHALL BE GRANTED CONCURRENT WITH OR SUBSEQUENT
TO ANY OTHER REAL PROPERTY TAX EXEMPTION GRANTED TO THE SAME IMPROVE-
MENTS TO REAL PROPERTY, EXCEPT, WHERE DURING THE PERIOD OF SUCH PREVIOUS
EXEMPTION, PAYMENTS IN LIEU OF TAXES OR OTHER PAYMENTS WERE MADE TO THE
LOCAL GOVERNMENT IN AN AMOUNT THAT WOULD HAVE BEEN EQUAL TO OR GREATER
THAN THE AMOUNT OF REAL PROPERTY TAXES THAT WOULD HAVE BEEN PAID ON SUCH
IMPROVEMENTS HAD SUCH PROPERTY BEEN GRANTED AN EXEMPTION PURSUANT TO
THIS SECTION. IN SUCH CASE, AN EXEMPTION SHALL BE GRANTED FOR A NUMBER
OF YEARS EQUAL TO THE TEN YEAR EXEMPTION GRANTED PURSUANT TO THIS
SECTION LESS THE NUMBER OF YEARS THE PROPERTY WOULD HAVE BEEN PREVIOUSLY
EXEMPT FROM REAL PROPERTY TAXES.
3. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH REAL PROPERTY ON A FORM PRESCRIBED BY THE STATE BOARD. THE
ORIGINAL OF SUCH APPLICATION SHALL BE FILED WITH THE ASSESSOR OF THE
ASSESSING UNIT. SUCH ORIGINAL APPLICATION SHALL BE FILED ON OR BEFORE
THE APPROPRIATE TAXABLE STATUS DATE OF SUCH ASSESSING UNIT AND NO LATER
THAN ONE YEAR FROM THE DATE OF COMPLETION OF SUCH CONSTRUCTION, ALTER-
ATION, INSTALLATION OR IMPROVEMENT.
4. IF THE ASSESSOR RECEIVES THE NOTICE DESCRIBED IN PARAGRAPH (B) OF
SUBDIVISION TWO OF THIS SECTION AND AN APPLICATION BY THE OWNER OF THE
REAL PROPERTY, HE SHALL APPROVE THE APPLICATION AND SUCH REAL PROPERTY
SHALL THEREAFTER BE EXEMPT FROM TAXATION AS HEREIN PROVIDED COMMENCING
WITH THE ASSESSMENT ROLL PREPARED AFTER THE TAXABLE STATUS DATE REFERRED
TO IN SUBDIVISION THREE OF THIS SECTION. THE ASSESSED VALUE OF ANY
EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE
ASSESSOR ON THE ASSESSMENT ROLL WITH THE TAXABLE PROPERTY, WITH THE
AMOUNT OF THE EXEMPTION ENTERED IN A SEPARATE COLUMN.
5. EXEMPTIONS EXISTING PRIOR IN TIME TO THE TERMINATION OF THE DESIG-
NATION OF AN ACADEMIC COLLABORATIVE DISTRICT BY THE COMMISSIONER, OR, IN
THE CASE OF A MUNICIPAL CORPORATION WHICH HAS ADOPTED A LOCAL LAW, ORDI-
NANCE OR RESOLUTION PURSUANT TO SUBDIVISION ONE-A OF THIS SECTION, PRIOR
IN TIME TO THE EXPIRATION OF SUCH DESIGNATION, SHALL CONTINUE AS IF THE
DESIGNATION OF THE ACADEMIC COLLABORATIVE DISTRICT HAD NOT BEEN TERMI-
NATED, OR, IF APPLICABLE, HAD NOT EXPIRED; PROVIDED, HOWEVER, THAT ANY
FURTHER INCREASE IN THE VALUE ATTRIBUTABLE TO CONSTRUCTION, ALTERATION,
INSTALLATION OR IMPROVEMENT COMMENCED SUBSEQUENT TO THE DATE OF TERMI-
NATION, OR, IF APPLICABLE, THE DATE OF EXPIRATION, SHALL NOT BE ELIGIBLE
FOR EXEMPTION PURSUANT TO THIS SECTION.
S 3. Section 186-a of the tax law is amended by adding a new subdivi-
sion 8-a to read as follows:
8-A. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR ANY OTHER
LAW TO THE CONTRARY, ANY UTILITY (A) WHICH IS SUBJECT TO TAX HEREUNDER,
AND (B) WHICH IS SUBJECT TO THE SUPERVISION OF THE DEPARTMENT OF PUBLIC
SERVICE, SHALL PROVIDE, IN ADDITION TO ANY OTHER DISCOUNT, A REDUCTION
OF THREE PERCENT IN THE RATE CHARGED FOR GAS, ELECTRICITY, STEAM OR
WATER SOLD, OR GAS, ELECTRIC, STEAM OR WATER SERVICE RENDERED, PRIOR TO
TWO THOUSAND THIRTEEN, FOR ULTIMATE CONSUMPTION OR USE WITHIN AN AREA
DESIGNATED AS AN ACADEMIC COLLABORATIVE DISTRICT PURSUANT TO ARTICLE
EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW BY A BUSINESS, WHETHER INCORPO-
RATED OR UNINCORPORATED, OTHER THAN A RETAIL ENTERPRISE AS DEFINED IN
A. 4361 12
PARAGRAPH (K) OF SUBDIVISION TWELVE OF SECTION TWO HUNDRED TEN OF THIS
CHAPTER BUT WITHOUT REGARD TO SUBPARAGRAPH (III) OF SUCH PARAGRAPH,
WHICH HAS BEEN CERTIFIED PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC
DEVELOPMENT LAW, AND WHICH HAS CLAIMED A CREDIT UNDER SUBDIVISION NINE-
TEEN OF SECTION TWO HUNDRED TEN, SUBSECTION (K) OF SECTION SIX HUNDRED
SIX, SUBSECTION (E) OF SECTION FOURTEEN HUNDRED FIFTY-SIX OR SUBDIVISION
(G) OF SECTION FIFTEEN HUNDRED ELEVEN OF THIS CHAPTER DURING THE PREVI-
OUS FIFTEEN MONTHS, AS EVIDENCED BY A CERTIFICATE ISSUED BY THE COMMIS-
SIONER TO SUCH BUSINESS. NINETY-SIX AND ONE-HALF PERCENT OF THE AGGRE-
GATE OF SUCH REDUCTIONS DURING THE YEAR MAY BE APPLIED AS A CREDIT
AGAINST THE TAX IMPOSED PURSUANT TO THIS SECTION WITH RESPECT TO SUCH
YEAR.
S 4. Section 210 of the tax law is amended by adding two new subdivi-
sions 12-H and 12-I to read as follows:
12-H. ACADEMIC COLLABORATIVE DISTRICT INVESTMENT TAX CREDIT. (A) A
TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREIN PROVIDED,
AGAINST THE TAX IMPOSED BY THIS ARTICLE IF THE TAXPAYER HAS BEEN CERTI-
FIED PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW. THE
AMOUNT OF THE CREDIT SHALL BE TEN PERCENT OF THE COST OR OTHER BASIS FOR
FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPERTY AND OTHER
TANGIBLE PROPERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF
BUILDINGS, DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION, WHICH IS
LOCATED WITHIN AN ACADEMIC COLLABORATIVE DISTRICT DESIGNATED AS SUCH
PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW, BUT ONLY
IF THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION OF SUCH
PROPERTY OCCURRED OR WAS COMMENCED ON OR AFTER THE DATE OF SUCH DESIG-
NATION AND PRIOR TO THE EXPIRATION THEREOF. PROVIDED, HOWEVER, THAT IN
THE CASE OF AN ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION
WHICH WAS COMMENCED DURING SUCH PERIOD AND CONTINUED OR COMPLETED SUBSE-
QUENTLY, SUCH CREDIT SHALL BE TEN PERCENT OF THE PORTION OF THE COST OR
OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD,
WHICH PORTION SHALL BE ASCERTAINED BY MULTIPLYING SUCH COST OR BASIS BY
A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE EXPENDITURES PAID OR
INCURRED DURING SUCH PERIOD FOR SUCH PURPOSES AND THE DENOMINATOR OF
WHICH SHALL BE THE TOTAL OF ALL EXPENDITURES PAID OR INCURRED FOR SUCH
ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION.
(B) 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 (I) ARE DEPRECIABLE
PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE
CODE, (II) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (III) ARE ACQUIRED
BY PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D) OF THE
INTERNAL REVENUE CODE, (IV) HAVE A SITUS IN AN ACADEMIC COLLABORATIVE
DISTRICT DESIGNATED AS SUCH PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC
DEVELOPMENT LAW, AND (V) ARE DEVELOPMENTALLY USED BY THE TAXPAYER IN (A)
THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING, REFIN-
ING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORICUL-
TURE, 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) THE ORDI-
NARY 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
A. 4361 13
SEVENTY-FIVE (E) OF THE INTERNAL REVENUE CODE, (E) 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 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, ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION OR
TRANSFER) OF SECURITIES AS DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE
(C)(2) OF THE INTERNAL REVENUE CODE, OR (F) IN THE ORDINARY COURSE OF
THE TAXPAYER'S BUSINESS AS AN EXCHANGE REGISTERED AS A NATIONAL SECURI-
TIES EXCHANGE WITHIN THE MEANING OF SECTIONS 3(A)(1) AND 6(A) OF THE
SECURITIES EXCHANGE ACT OF 1934 OR A BOARD OF TRADE AS DEFINED IN
SUBPARAGRAPH ONE OF PARAGRAPH (A) OF SECTION FOURTEEN HUNDRED TEN OF THE
NOT-FOR-PROFIT 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. FOR PURPOSES OF
CLAUSES (D), (E) AND (F) OF SUBPARAGRAPH (V) OF THIS PARAGRAPH, PROPERTY
PURCHASED BY A TAXPAYER AFFILIATED WITH A REGULATED BROKER, DEALER,
NATIONAL SECURITIES EXCHANGE OR BOARD OF TRADE IS ALLOWED A CREDIT UNDER
THIS SUBDIVISION IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED
BROKER, DEALER OR NATIONAL SECURITIES EXCHANGE OR BOARD OF TRADE IN
ACCORDANCE WITH THIS SUBDIVISION. PROVIDED, HOWEVER, A TAXPAYER SHALL
NOT BE ALLOWED THE CREDIT PROVIDED BY CLAUSES (D), (E) AND (F) OF
SUBPARAGRAPH (V) OF THIS PARAGRAPH UNLESS ALL OR A SUBSTANTIAL PORTION
OF THE EMPLOYEES PERFORMING THE ADMINISTRATIVE AND SUPPORT FUNCTIONS
RESULTING FROM OR RELATED TO THE QUALIFYING USES OF SUCH EQUIPMENT ARE
LOCATED IN THIS STATE. FOR THE PURPOSE OF THIS SUBDIVISION, THE TERM
"GOODS" SHALL NOT INCLUDE ELECTRICITY. FOR PURPOSES OF THIS PARAGRAPH,
MANUFACTURING SHALL MEAN THE PROCESS OF WORKING RAW MATERIALS INTO WARES
SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR NEW COMBINA-
TIONS TO MATTER WHICH ALREADY HAS GONE THROUGH SOME ARTIFICIAL PROCESS
BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND OTHER SIMILAR EQUIPMENT.
PROPERTY USED IN THE PRODUCTION OF GOODS SHALL INCLUDE MACHINERY, EQUIP-
MENT OR OTHER TANGIBLE PROPERTY WHICH IS PRINCIPALLY USED IN THE REPAIR
AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR OTHER TANGIBLE PROPERTY
USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND SHALL INCLUDE ALL FACIL-
ITIES USED IN THE PRODUCTION OPERATION, INCLUDING STORAGE OF MATERIAL TO
BE USED IN PRODUCTION AND OF THE PRODUCTS THAT ARE PRODUCED. FOR
PURPOSES OF THIS PARAGRAPH, THE TERMS "RESEARCH AND DEVELOPMENT PROPER-
TY", "INDUSTRIAL WASTE TREATMENT FACILITIES", AND "AIR POLLUTION CONTROL
FACILITIES" SHALL HAVE THE MEANINGS ASCRIBED THERETO BY CLAUSES (B), (C)
AND (D), RESPECTIVELY, OF SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVI-
SION TWELVE OF THIS SECTION, AND THE PROVISIONS OF SUBPARAGRAPH (III) OF
SUCH PARAGRAPH (B) SHALL APPLY.
(C) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVISION
WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROP-
ERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
IT LEASES TO ANY OTHER PERSON OR CORPORATION EXCEPT WHERE A TAXPAYER
LEASES PROPERTY TO AN AFFILIATED REGULATED BROKER, DEALER, NATIONAL
SECURITIES EXCHANGE OR BOARD OF TRADE (OR OTHER ENTITY DESCRIBED IN
CLAUSE (F) OF SUBPARAGRAPH (V) OF PARAGRAPH (B) OF THIS SUBDIVISION THAT
USES SUCH PROPERTY IN ACCORDANCE WITH CLAUSE (D), (E) OR (F) OF SUBPARA-
GRAPH (V) OF PARAGRAPH (B) OF THIS SUBDIVISION. FOR PURPOSES OF THE
PRECEDING SENTENCE, ANY CONTRACT OR AGREEMENT TO LEASE OR RENT OR FOR A
LICENSE TO USE SUCH PROPERTY SHALL BE CONSIDERED A LEASE. PROVIDED,
HOWEVER, IN DETERMINING WHETHER A TAXPAYER SHALL BE ALLOWED A CREDIT
A. 4361 14
UNDER THIS SUBDIVISION WITH RESPECT TO SUCH PROPERTY, ANY ELECTION MADE
WITH RESPECT TO SUCH PROPERTY PURSUANT TO THE PROVISIONS OF PARAGRAPH
EIGHT OF SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTER-
NAL REVENUE CODE, AS SUCH PARAGRAPH WAS IN EFFECT FOR AGREEMENTS ENTERED
INTO PRIOR TO JANUARY FIRST, NINETEEN HUNDRED EIGHTY-FOUR, SHALL BE
DISREGARDED.
(D) 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 SUBDIVISION ONE OF
THIS SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF CREDIT ALLOWED
UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, ANY AMOUNT OF 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. IN LIEU OF SUCH CARRYOVER, ANY
SUCH TAXPAYER WHICH QUALIFIES AS A NEW BUSINESS UNDER PARAGRAPH (J) OF
SUBDIVISION TWELVE OF THIS SECTION MAY ELECT, ON ITS REPORT FOR ITS
TAXABLE YEAR WITH RESPECT TO WHICH SUCH CREDIT IS ALLOWED, TO TREAT
FIFTY PERCENT OF THE AMOUNT OF SUCH CARRYOVER AS AN OVERPAYMENT OF TAX
TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION
TEN HUNDRED EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE
PROVISIONS OF SUBSECTION (C) OF SECTION TEN HUNDRED EIGHTY-EIGHT OF THIS
CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
(E) AT THE OPTION OF THE TAXPAYER AIR OR WATER POLLUTION CONTROL
FACILITIES WHICH QUALIFY FOR ELECTIVE DEDUCTIONS UNDER PARAGRAPH (G) OF
SUBDIVISION NINE OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE OR AN
ELIGIBLE BUSINESS FACILITY FOR WHICH A CREDIT IS ALLOWED UNDER SUBDIVI-
SION ELEVEN OF THIS SECTION, OR RESEARCH AND DEVELOPMENT FACILITIES
WHICH QUALIFY FOR ELECTIVE DEDUCTION UNDER SUBPARAGRAPHS TWO AND THREE
OF PARAGRAPH (E) OF SUBDIVISION THREE OF THIS SECTION, OR PROPERTY WHICH
QUALIFIES FOR THE CREDIT PROVIDED UNDER SUBDIVISION TWELVE OR EIGHTEEN
OF THIS SECTION MAY BE TREATED AS PROPERTY PRINCIPALLY USED BY THE
TAXPAYER IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEM-
BLING, REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE,
VITICULTURE OR COMMERCIAL FISHING, PROVIDED THE PROPERTY OTHERWISE QUAL-
IFIES UNDER PARAGRAPH (B) OF THIS SUBDIVISION, IN WHICH EVENT A
DEDUCTION SHALL NOT BE ALLOWED UNDER PARAGRAPH (G) OF SUBDIVISION NINE
OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE, A CREDIT SHALL NOT BE
ALLOWED UNDER SUCH SUBDIVISION ELEVEN AND A DEDUCTION SHALL NOT BE
ALLOWED UNDER SUCH SUBPARAGRAPH THREE OF PARAGRAPH (E) AND A CREDIT
SHALL NOT BE ALLOWED UNDER SUCH SUBDIVISION TWELVE OR EIGHTEEN OF THIS
SECTION.
(F) (1) WITH RESPECT TO PROPERTY WHICH IS DEPRECIABLE PURSUANT TO
SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE BUT IS NOT
SUBJECT TO THE PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF SUCH
CODE AND WHICH IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT IS TO BE TAKEN, THE
AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF THE CREDIT PROVIDED FOR IN
THIS SUBDIVISION WHICH REPRESENTS THE RATIO WHICH THE MONTHS OF QUALI-
FIED USE BEAR TO THE MONTHS OF USEFUL LIFE. IF PROPERTY ON WHICH CREDIT
HAS BEEN TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF ITS USEFUL LIFE, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND
THE CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF
DISPOSITION. PROVIDED, HOWEVER, IF SUCH PROPERTY IS DISPOSED OF OR CEAS-
ES TO BE IN QUALIFIED USE AFTER IT HAS BEEN IN QUALIFIED USE FOR MORE
THAN TWELVE CONSECUTIVE YEARS, IT SHALL NOT BE NECESSARY TO ADD BACK THE
CREDIT AS PROVIDED IN THIS SUBPARAGRAPH. THE AMOUNT OF CREDIT ALLOWED
A. 4361 15
FOR ACTUAL USE SHALL BE DETERMINED BY MULTIPLYING THE ORIGINAL CREDIT BY
THE RATIO WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE MONTHS OF USEFUL
LIFE. FOR PURPOSES OF THIS SUBPARAGRAPH, USEFUL LIFE OF PROPERTY SHALL
BE THE SAME AS THE TAXPAYER USES FOR DEPRECIATION PURPOSES WHEN COMPUT-
ING HIS FEDERAL INCOME TAX LIABILITY.
(2) EXCEPT WITH RESPECT TO THAT PROPERTY TO WHICH SUBPARAGRAPH FOUR OF
THIS PARAGRAPH APPLIES, WITH RESPECT TO THREE-YEAR PROPERTY, AS DEFINED
IN SUBSECTION (E) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL
REVENUE CODE, WHICH IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE
PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT IS TO BE TAKEN,
THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF THE CREDIT PROVIDED
FOR IN THIS SUBDIVISION WHICH REPRESENTS THE RATIO WHICH THE MONTHS OF
QUALIFIED USE BEAR TO THIRTY-SIX. IF PROPERTY ON WHICH CREDIT HAS BEEN
TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO THE END
OF THIRTY-SIX MONTHS, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND THE
CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF DISPOSI-
TION. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL USE SHALL BE DETERMINED BY
MULTIPLYING THE ORIGINAL CREDIT BY THE RATIO WHICH THE MONTHS OF QUALI-
FIED USE BEAR TO THIRTY-SIX.
(3) EXCEPT WITH RESPECT TO THAT PROPERTY TO WHICH SUBPARAGRAPH FOUR OF
THIS PARAGRAPH APPLIES, WITH RESPECT TO PROPERTY SUBJECT TO THE
PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE
CODE OTHER THAN THREE-YEAR PROPERTY AS DEFINED IN SUBSECTION (E) OF SUCH
SECTION ONE HUNDRED SIXTY-EIGHT WHICH IS DISPOSED OF OR CEASES TO BE IN
QUALIFIED USE PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT
IS TO BE TAKEN, THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF THE
CREDIT PROVIDED FOR IN THIS SUBDIVISION WHICH REPRESENTS THE RATIO WHICH
THE MONTHS OF QUALIFIED USE BEAR TO SIXTY. IF PROPERTY ON WHICH CREDIT
HAS BEEN TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF SIXTY MONTHS, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND THE
CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF DISPOSI-
TION. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL USE SHALL BE DETERMINED BY
MULTIPLYING THE ORIGINAL CREDIT BY THE RATIO WHICH THE MONTHS OF QUALI-
FIED USE BEAR TO SIXTY.
(4) WITH RESPECT TO ANY PROPERTY TO WHICH SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE APPLIES, WHICH IS A BUILDING OR
A STRUCTURAL COMPONENT OF A BUILDING AND WHICH IS DISPOSED OF OR CEASES
TO BE IN QUALIFIED USE PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE
CREDIT IS TO BE TAKEN, THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF
THE CREDIT PROVIDED FOR IN THIS SUBDIVISION WHICH REPRESENTS THE RATIO
WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE TOTAL NUMBER OF MONTHS
OVER WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE INTER-
NAL REVENUE CODE. IF PROPERTY ON WHICH CREDIT HAS BEEN TAKEN IS DISPOSED
OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO THE END OF THE PERIOD OVER
WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE INTERNAL
REVENUE CODE, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND THE CREDIT
ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF DISPOSITION.
PROVIDED, HOWEVER, IF SUCH PROPERTY IS DISPOSED OF OR CEASES TO BE IN
QUALIFIED USE AFTER IT HAS BEEN IN QUALIFIED USE FOR MORE THAN TWELVE
CONSECUTIVE YEARS, IT SHALL NOT BE NECESSARY TO ADD BACK THE CREDIT AS
PROVIDED IN THIS SUBPARAGRAPH. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL
USE SHALL BE DETERMINED BY MULTIPLYING THE ORIGINAL CREDIT BY THE RATIO
WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE TOTAL NUMBER OF MONTHS
OVER WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE INTER-
NAL REVENUE CODE.
A. 4361 16
(5) FOR PURPOSES OF THIS PARAGRAPH, DISPOSAL OR CESSATION OF QUALIFIED
USE SHALL NOT BE DEEMED TO HAVE OCCURRED SOLELY BY REASON OF THE TERMI-
NATION OR EXPIRATION OF AN ACADEMIC COLLABORATIVE DISTRICT'S DESIGNATION
AS SUCH.
(6)(A) FOR PURPOSES OF THIS PARAGRAPH, THE DECERTIFICATION OF A BUSI-
NESS ENTERPRISE WITH RESPECT TO AN ACADEMIC COLLABORATIVE DISTRICT SHALL
CONSTITUTE A DISPOSAL OR CESSATION OF QUALIFIED USE OF THE PROPERTY ON
WHICH THE CREDIT WAS TAKEN WHICH IS LOCATED IN THE DISTRICT TO WHICH THE
DECERTIFICATION APPLIES, ON THE EFFECTIVE DATE OF SUCH DECERTIFICATION.
(B) WHERE A BUSINESS ENTERPRISE HAS BEEN DECERTIFIED, THE AMOUNT
REQUIRED TO BE ADDED BACK BY REASON OF THIS PARAGRAPH SHALL BE (I) THE
AMOUNT OF CREDIT, WITH RESPECT TO THE PROPERTY WHICH IS DISPOSED OF OR
CEASES TO BE IN QUALIFIED USE, WHICH WAS DEDUCTED FROM THE TAXPAYER'S
TAX OTHERWISE DUE UNDER THIS ARTICLE FOR ALL PRIOR TAXABLE YEARS,
REDUCED (BUT NOT BELOW ZERO) BY (II) THE CREDIT ALLOWED FOR ACTUAL USE.
FOR PURPOSES OF THIS SUBPARAGRAPH, THE ATTRIBUTION TO SPECIFIC PROPERTY
OF CREDIT AMOUNTS DEDUCTED FROM TAX SHALL BE ESTABLISHED IN ACCORDANCE
WITH THE DATE OF PLACEMENT IN SERVICE OF SUCH PROPERTY IN THE DISTRICT.
(C) IN NO EVENT SHALL THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO
THIS SUBDIVISION BE RENDERED, SOLELY BY REASON OF CLAUSE (A) OF THIS
SUBPARAGRAPH, LESS THAN THE AMOUNT OF THE CREDIT TO WHICH THE TAXPAYER
WOULD OTHERWISE BE ENTITLED UNDER SUBDIVISION TWELVE OF THIS SECTION.
(D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION, IN THE
CASE OF A BUSINESS ENTERPRISE WHICH HAS BEEN DECERTIFIED, ANY AMOUNT OF
CREDIT ALLOWED WITH RESPECT TO THE PROPERTY OF SUCH BUSINESS ENTERPRISE
LOCATED IN THE DISTRICT TO WHICH THE DECERTIFICATION APPLIES WHICH IS
CARRIED OVER PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION SHALL NOT BE
CARRIED OVER BEYOND THE SEVENTH TAXABLE YEAR NEXT FOLLOWING THE TAXABLE
YEAR WITH RESPECT TO WHICH THE CREDIT PROVIDED FOR IN THIS SUBDIVISION
WAS ALLOWED.
(7) FOR PURPOSES OF THIS PARAGRAPH, WHERE A CREDIT IS ALLOWED WITH
RESPECT TO AN AIR POLLUTION CONTROL FACILITY ON THE BASIS OF A CERTIF-
ICATE OF COMPLIANCE ISSUED PURSUANT TO THE ENVIRONMENTAL CONSERVATION
LAW AND THE CERTIFICATE IS REVOKED PURSUANT TO SUBDIVISION THREE OF
SECTION 19-0309 OF THE ENVIRONMENTAL CONSERVATION LAW, SUCH REVOCATION
SHALL CONSTITUTE A DISPOSAL OR CESSATION OF QUALIFIED USE, EXCEPT WITH
RESPECT TO PROPERTY CONTAINED IN OR COMPRISING SUCH FACILITY WHICH IS
DESCRIBED IN CLAUSE (A), (B) OR (C) OF SUBPARAGRAPH (V) OF PARAGRAPH (B)
OF THIS SUBDIVISION OTHER THAN AS PART OF OR COMPRISING AN AIR POLLUTION
CONTROL FACILITY. ALSO FOR PURPOSES OF THIS PARAGRAPH, THE USE OF AN AIR
POLLUTION CONTROL FACILITY OR AN INDUSTRIAL WASTE TREATMENT FACILITY FOR
THE PRIMARY PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE IN THE MANU-
FACTURING PROCESS OR ARE MARKETABLE SHALL CONSTITUTE A CESSATION OF
QUALIFIED USE, EXCEPT WITH RESPECT TO PROPERTY CONTAINED IN OR COMPRIS-
ING SUCH FACILITY WHICH IS DESCRIBED IN CLAUSE (A) OR (C) OF SUBPARA-
GRAPH (V) OF PARAGRAPH (B) OF THIS SUBDIVISION.
12-I. ACADEMIC COLLABORATIVE DISTRICT EMPLOYMENT INCENTIVE CREDIT. (A)
WHERE A TAXPAYER IS ALLOWED A CREDIT UNDER SUBDIVISION TWELVE-H OF THIS
SECTION, THE TAXPAYER SHALL BE ALLOWED A CREDIT FOR EACH OF THE THREE
YEARS NEXT SUCCEEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER SUCH
SUBDIVISION TWELVE-H IS ALLOWED, WITH RESPECT TO SUCH PROPERTY, WHETHER
OR NOT DEDUCTIBLE IN SUCH TAXABLE YEAR OR IN SUBSEQUENT TAXABLE YEARS
PURSUANT TO PARAGRAPH (D) OF SUCH SUBDIVISION TWELVE-H, OF THIRTY
PERCENT OF THE CREDIT ALLOWABLE UNDER SUCH SUBDIVISION TWELVE-H;
PROVIDED, HOWEVER, THAT THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
ANY TAXABLE YEAR SHALL ONLY BE ALLOWED IF THE AVERAGE NUMBER OF EMPLOY-
A. 4361 17
EES EMPLOYED BY THE TAXPAYER IN THE EMPIRE ZONE, DESIGNATED PURSUANT TO
ARTICLE EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW, IN WHICH SUCH PROPERTY
IS LOCATED DURING SUCH TAXABLE YEAR IS AT LEAST ONE HUNDRED ONE PERCENT
OF THE AVERAGE NUMBER OF EMPLOYEES EMPLOYED BY THE TAXPAYER IN SUCH
ACADEMIC COLLABORATIVE DISTRICT OR, WHERE APPLICABLE, IN THE GEOGRAPHIC
AREA SUBSEQUENTLY CONSTITUTING SUCH DISTRICT, DURING THE TAXABLE YEAR
IMMEDIATELY PRECEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER SUCH
SUBDIVISION TWELVE-H IS ALLOWED AND PROVIDED, FURTHER, THAT IF THE
TAXPAYER WAS NOT SUBJECT TO TAX AND DID NOT HAVE A TAXABLE YEAR IMME-
DIATELY PRECEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER SUBDIVI-
SION TWELVE-H OF THIS SECTION IS ALLOWED, THE CREDIT ALLOWABLE UNDER
THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL BE ALLOWED IF THE AVERAGE
NUMBER OF EMPLOYEES EMPLOYED IN SUCH ACADEMIC COLLABORATIVE DISTRICT IN
SUCH TAXABLE YEAR IS AT LEAST ONE HUNDRED ONE PERCENT OF THE AVERAGE
NUMBER OF SUCH EMPLOYEES DURING THE TAXABLE YEAR IN WHICH THE CREDIT
UNDER SUCH SUBDIVISION TWELVE-H IS ALLOWED.
(B) THE AVERAGE NUMBER OF EMPLOYEES EMPLOYED IN AN ACADEMIC COLLABORA-
TIVE DISTRICT, OR, WHERE APPLICABLE, IN THE GEOGRAPHIC AREA SUBSEQUENTLY
CONSTITUTING SUCH DISTRICT, IN A TAXABLE YEAR SHALL BE COMPUTED BY
ASCERTAINING THE NUMBER OF SUCH EMPLOYEES WITHIN SUCH DISTRICT, OR,
WHERE APPLICABLE, IN THE GEOGRAPHIC AREA SUBSEQUENTLY CONSTITUTING SUCH
DISTRICT, EXCEPT GENERAL EXECUTIVE OFFICERS, EMPLOYED BY THE TAXPAYER ON
THE THIRTY-FIRST DAY OF MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH
DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEMBER IN THE TAXABLE
YEAR, BY ADDING TOGETHER THE NUMBER OF EMPLOYEES ASCERTAINED ON EACH OF
SUCH DATES AND DIVIDING THE SUM SO OBTAINED BY THE NUMBER OF SUCH
ABOVE-MENTIONED DATES OCCURRING WITHIN THE TAXABLE YEAR. FOR THE
PURPOSES OF THIS SUBDIVISION, THE TERM "EMPLOYEES" AND THE TERM "GENERAL
EXECUTIVE OFFICERS" SHALL MEAN THE SAME AS IN SUBPARAGRAPH THREE OF
PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION.
(C) IN NO EVENT SHALL THE CREDIT HEREIN PROVIDED FOR BE ALLOWED IN AN
AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN THE AMOUNT
PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION.
PROVIDED, HOWEVER, THAT IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS
SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF 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 5. Section 606 of the tax law is amended by adding four new
subsections (l-1), (l-2), (l-3) and (l-4) to read as follows:
(L-1) ACADEMIC COLLABORATIVE DISTRICT INVESTMENT TAX CREDIT. (1) A
TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER
PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE WHERE THE TAXPAYER HAS
BEEN CERTIFIED PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC DEVELOPMENT
LAW. THE AMOUNT OF SUCH CREDIT SHALL BE EIGHT PERCENT OF THE COST OR
OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPER-
TY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILDINGS AND STRUCTURAL
COMPONENTS OF BUILDINGS, DESCRIBED IN PARAGRAPH TWO OF THIS SUBSECTION,
WHICH IS LOCATED WITHIN AN ACADEMIC COLLABORATIVE DISTRICT DESIGNATED AS
SUCH PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW, BUT
ONLY IF THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION OF
SUCH PROPERTY OCCURRED OR WAS COMMENCED ON OR AFTER THE DATE OF SUCH
DESIGNATION AND PRIOR TO THE EXPIRATION THEREOF. PROVIDED, HOWEVER, THAT
IN THE CASE OF AN ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION
WHICH WAS COMMENCED DURING SUCH PERIOD AND CONTINUED OR COMPLETED SUBSE-
QUENTLY, THE CREDIT SHALL BE EIGHT PERCENT OF THE PORTION OF THE COST OR
A. 4361 18
OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD,
WHICH PORTION SHALL BE ASCERTAINED BY MULTIPLYING SUCH COST OR BASIS BY
A FRACTION THE NUMERATOR OF WHICH SHALL BE THE EXPENDITURES PAID OR
INCURRED DURING SUCH PERIOD FOR SUCH PURPOSES AND THE DENOMINATOR OF
WHICH SHALL BE THE TOTAL OF ALL EXPENDITURES PAID OR INCURRED FOR SUCH
ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION.
(2) A CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION WITH RESPECT TO
TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
INGS AND STRUCTURAL COMPONENTS OF BUILDINGS WHICH: (A) ARE DEPRECIABLE
PURSUANT TO SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE
CODE, (B) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (C) ARE ACQUIRED BY
PURCHASE AS DEFINED IN SECTION ONE HUNDRED SEVENTY-NINE (D) OF THE
INTERNAL REVENUE CODE, (D) HAVE A SITUS IN AN ACADEMIC COLLABORATIVE
DISTRICT DESIGNATED AS SUCH PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC
DEVELOPMENT LAW, AND (E) ARE (I) PRINCIPALLY USED BY THE TAXPAYER IN THE
PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING, REFINING,
MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE,
VITICULTURE OR COMMERCIAL FISHING, (II) INDUSTRIAL WASTE TREATMENT
FACILITIES OR AIR POLLUTION CONTROL FACILITIES USED IN THE TAXPAYER'S
TRADE OR BUSINESS, (III) RESEARCH AND DEVELOPMENT PROPERTY, (IV) PRINCI-
PALLY 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, OR (V) PRINCIPAL-
LY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR BUSINESS OF
PROVIDING INVESTMENT ADVISORY SERVICES FOR A REGULATED INVESTMENT COMPA-
NY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE OF THE 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, ASSUMPTION, OFFSET,
ASSIGNMENT, TERMINATION, OR TRANSFER) OF SECURITIES AS DEFINED IN
SECTION FOUR HUNDRED SEVENTY-FIVE (C)(2) OF THE INTERNAL REVENUE CODE.
FOR PURPOSES OF CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH, PROPERTY
PURCHASED BY A TAXPAYER AFFILIATED WITH A REGULATED BROKER OR DEALER IS
ALLOWED A CREDIT UNDER THIS SUBSECTION IF THE PROPERTY IS USED BY ITS
AFFILIATED REGULATED BROKER OR DEALER IN ACCORDANCE WITH THIS
SUBSECTION. PROVIDED, HOWEVER, A TAXPAYER SHALL NOT BE ALLOWED THE CRED-
IT PROVIDED BY CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH UNLESS ALL OR A
SUBSTANTIAL PORTION OF THE EMPLOYEES PERFORMING THE ADMINISTRATIVE AND
SUPPORT FUNCTIONS RESULTING FROM OR RELATED TO THE QUALIFYING USES OF
SUCH EQUIPMENT ARE LOCATED IN THIS STATE. FOR PURPOSES OF THIS
SUBSECTION, THE TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY. FOR PURPOSES
OF THIS PARAGRAPH, MANUFACTURING SHALL MEAN THE PROCESS OF WORKING RAW
MATERIALS INTO WARES SUITABLE FOR USE OR WHICH GIVES NEW SHAPES, NEW
QUALITY OR NEW COMBINATION TO MATTER WHICH ALREADY HAS GONE THROUGH SOME
ARTIFICIAL PROCESS BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND OTHER
SIMILAR EQUIPMENT. PROPERTY USED IN THE PRODUCTION OF GOODS SHALL
INCLUDE MACHINERY, EQUIPMENT OR OTHER TANGIBLE PROPERTY WHICH IS PRINCI-
PALLY USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR
OTHER TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND
SHALL INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERATION, INCLUDING
STORAGE OF MATERIAL TO BE USED IN PRODUCTION AND OF THE PRODUCTS THAT
ARE PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "RESEARCH AND
A. 4361 19
DEVELOPMENT PROPERTY", "INDUSTRIAL WASTE TREATMENT FACILITIES", AND "AIR
POLLUTION CONTROL FACILITIES" SHALL HAVE THE MEANINGS ASCRIBED THERETO
BY CLAUSES (II), (III) AND (IV), RESPECTIVELY, OF SUBPARAGRAPH (B) OF
PARAGRAPH TWO OF SUBSECTION (A) OF THIS SECTION, AND THE PROVISIONS OF
SUBPARAGRAPH (C) OF SUCH PARAGRAPH TWO SHALL APPLY.
(3) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBSECTION
WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROP-
ERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
IT LEASES TO ANY OTHER PERSON OR CORPORATION EXCEPT WHERE A TAXPAYER
LEASES PROPERTY TO AN AFFILIATED REGULATED BROKER OR DEALER THAT USES
SUCH PROPERTY IN ACCORDANCE WITH CLAUSE (IV) OR (V) OF SUBPARAGRAPH (E)
OF PARAGRAPH TWO OF THIS SUBSECTION. FOR PURPOSES OF THE PRECEDING
SENTENCE, ANY CONTRACT OR AGREEMENT TO LEASE OR RENT OR FOR A LICENSE TO
USE SUCH PROPERTY SHALL BE CONSIDERED A LEASE. PROVIDED, HOWEVER, IN
DETERMINING WHETHER A TAXPAYER SHALL BE ALLOWED A CREDIT UNDER THIS
SUBSECTION WITH RESPECT TO SUCH PROPERTY, ANY ELECTION MADE WITH RESPECT
TO SUCH PROPERTY PURSUANT TO THE PROVISIONS OF PARAGRAPH EIGHT OF
SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE, AS SUCH PARAGRAPH WAS IN EFFECT FOR AGREEMENTS ENTERED INTO
PRIOR TO JANUARY FIRST, NINETEEN HUNDRED EIGHTY-FOUR, SHALL BE DISRE-
GARDED.
(4) IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. IN LIEU OF CARRYING OVER
ANY SUCH EXCESS, A TAXPAYER WHO QUALIFIES AS AN OWNER OF A NEW BUSINESS
FOR PURPOSES OF PARAGRAPH TEN OF SUBSECTION (A) OF THIS SECTION MAY, AT
HIS OPTION, RECEIVE FIFTY PERCENT OF SUCH EXCESS AS A REFUND. ANY REFUND
PAID PURSUANT TO THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN
OVERPAYMENT OF TAX AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
(5) AT THE OPTION OF THE TAXPAYER, AIR OR WATER POLLUTION CONTROL
FACILITIES WHICH QUALIFY FOR ELECTIVE MODIFICATIONS UNDER SUBSECTION (H)
OF SECTION SIX HUNDRED TWELVE, OR RESEARCH AND DEVELOPMENT FACILITIES
WHICH QUALIFY FOR ELECTIVE MODIFICATION UNDER PARAGRAPHS THREE AND FOUR
OF SUBSECTION (G) OF SECTION SIX HUNDRED TWELVE, OR PROPERTY WHICH QUAL-
IFIES FOR THE CREDIT PROVIDED UNDER SUBSECTION (A) OR (H) OF THIS
SECTION MAY BE TREATED AS PROPERTY PRINCIPALLY USED BY THE TAXPAYER IN
THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING,
MINING, REFINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORI-
CULTURE, VITICULTURE, OR COMMERCIAL FISHING, PROVIDED THE PROPERTY
OTHERWISE QUALIFIES UNDER PARAGRAPH TWO OF THIS SUBSECTION, IN WHICH
EVENT A DEDUCTION SHALL NOT BE ALLOWED UNDER SUBSECTION (H) OR PARA-
GRAPHS THREE AND FOUR OF SUBSECTION (G) OF SECTION SIX HUNDRED TWELVE
AND A CREDIT SHALL NOT BE ALLOWED UNDER SUBSECTION (A) OR (H) OF THIS
SECTION.
(6) (A) WITH RESPECT TO PROPERTY WHICH IS DEPRECIABLE PURSUANT TO
SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL REVENUE CODE BUT IS NOT
SUBJECT TO THE PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF SUCH
CODE AND WHICH IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT IS TO BE TAKEN, THE
AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF THE CREDIT PROVIDED FOR IN
THIS SECTION WHICH REPRESENTS THE RATIO WHICH THE MONTHS OF QUALIFIED
USE BEAR TO THE MONTHS OF USEFUL LIFE. IF THE PROPERTY ON WHICH CREDIT
HAS BEEN TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO
THE END OF ITS USEFUL LIFE, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND
A. 4361 20
THE CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF
DISPOSITION. PROVIDED, HOWEVER, IF SUCH PROPERTY IS DISPOSED OF OR CEAS-
ES TO BE IN QUALIFIED USE AFTER IT HAS BEEN IN QUALIFIED USE FOR MORE
THAN TWELVE CONSECUTIVE YEARS, IT SHALL NOT BE NECESSARY TO ADD BACK THE
CREDIT AS PROVIDED IN THIS SUBSECTION. THE AMOUNT OF CREDIT ALLOWED FOR
ACTUAL USE SHALL BE DETERMINED BY MULTIPLYING THE ORIGINAL CREDIT BY THE
RATIO WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE MONTHS OF USEFUL
LIFE. FOR PURPOSES OF THIS SUBSECTION, USEFUL LIFE OF PROPERTY SHALL BE
THE SAME AS THE TAXPAYER USES FOR DEPRECIATION PURPOSES WHEN COMPUTING
HIS FEDERAL INCOME TAX LIABILITY.
(B) EXCEPT WITH RESPECT TO THAT PROPERTY TO WHICH SUBPARAGRAPH (D) OF
THIS PARAGRAPH APPLIES, WITH RESPECT TO THREE-YEAR PROPERTY, AS DEFINED
IN SUBSECTION (E) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL
REVENUE CODE, WHICH IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE
PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE CREDIT IS TO BE TAKEN,
THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF THE CREDIT PROVIDED
FOR IN THIS SUBSECTION WHICH REPRESENTS THE RATIO WHICH THE MONTHS OF
QUALIFIED USE BEAR TO THIRTY-SIX. IF PROPERTY ON WHICH CREDIT HAS BEEN
TAKEN IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO THE END
OF THIRTY-SIX MONTHS, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND THE
CREDIT ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF DISPOSI-
TION. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL USE SHALL BE DETERMINED BY
MULTIPLYING THE ORIGINAL CREDIT BY THE RATIO WHICH THE MONTHS OF QUALI-
FIED USE BEAR TO THIRTY-SIX.
(C) EXCEPT WITH RESPECT TO THAT PROPERTY TO WHICH SUBPARAGRAPH (D) OF
THIS PARAGRAPH APPLIES, WITH RESPECT TO PROPERTY SUBJECT TO THE
PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE
CODE OTHER THAN THREE-YEAR PROPERTY AS DEFINED IN SUBSECTION (E) OF SUCH
SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE CODE WHICH IS
DISPOSED OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO THE END OF THE
TAXABLE YEAR IN WHICH THE CREDIT IS TO BE TAKEN, THE AMOUNT OF THE CRED-
IT SHALL BE THAT PORTION OF THE CREDIT PROVIDED FOR IN THIS SUBSECTION
WHICH REPRESENTS THE RATIO WHICH THE MONTHS OF QUALIFIED USE BEAR TO
SIXTY. IF PROPERTY ON WHICH CREDIT HAS BEEN TAKEN IS DISPOSED OF OR
CEASES TO BE IN QUALIFIED USE PRIOR TO THE END OF SIXTY MONTHS, THE
DIFFERENCE BETWEEN THE CREDIT TAKEN AND THE CREDIT ALLOWED FOR ACTUAL
USE MUST BE ADDED BACK IN THE YEAR OF DISPOSITION. THE AMOUNT OF CREDIT
ALLOWED FOR ACTUAL USE SHALL BE DETERMINED BY MULTIPLYING THE ORIGINAL
CREDIT BY THE RATIO WHICH THE MONTHS OF QUALIFIED USE BEAR TO SIXTY.
(D) WITH RESPECT TO ANY PROPERTY TO WHICH SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE APPLIES, WHICH IS A BUILDING OR
A STRUCTURAL COMPONENT OF A BUILDING AND WHICH IS DISPOSED OF OR CEASES
TO BE IN QUALIFIED USE PRIOR TO THE END OF THE TAXABLE YEAR IN WHICH THE
CREDIT IS TO BE TAKEN, THE AMOUNT OF THE CREDIT SHALL BE THAT PORTION OF
THE CREDIT PROVIDED FOR IN THIS SUBSECTION WHICH REPRESENTS THE RATIO
WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE TOTAL NUMBER OF MONTHS
OVER WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE INTER-
NAL REVENUE CODE. IF PROPERTY ON WHICH CREDIT HAS BEEN TAKEN IS DISPOSED
OF OR CEASES TO BE IN QUALIFIED USE PRIOR TO THE END OF THE PERIOD OVER
WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE INTERNAL
REVENUE CODE, THE DIFFERENCE BETWEEN THE CREDIT TAKEN AND THE CREDIT
ALLOWED FOR ACTUAL USE MUST BE ADDED BACK IN THE YEAR OF DISPOSITION.
PROVIDED, HOWEVER, IF SUCH PROPERTY IS DISPOSED OF OR CEASES TO BE IN
QUALIFIED USE AFTER IT HAS BEEN IN QUALIFIED USE FOR MORE THAN TWELVE
CONSECUTIVE YEARS, IT SHALL NOT BE NECESSARY TO ADD BACK THE CREDIT AS
PROVIDED IN THIS SUBPARAGRAPH. THE AMOUNT OF CREDIT ALLOWED FOR ACTUAL
A. 4361 21
USE SHALL BE DETERMINED BY MULTIPLYING THE ORIGINAL CREDIT BY THE RATIO
WHICH THE MONTHS OF QUALIFIED USE BEAR TO THE TOTAL NUMBER OF MONTHS
OVER WHICH THE TAXPAYER CHOOSES TO DEDUCT THE PROPERTY UNDER THE INTER-
NAL REVENUE CODE.
(E) FOR PURPOSES OF THIS PARAGRAPH, DISPOSAL OR CESSATION OF QUALIFIED
USE SHALL NOT BE DEEMED TO HAVE OCCURRED SOLELY BY REASON OF THE TERMI-
NATION OR EXPIRATION OF AN ACADEMIC COLLABORATIVE DISTRICT'S DESIGNATION
AS SUCH.
(F)(I) FOR PURPOSES OF THIS PARAGRAPH, THE DECERTIFICATION OF A BUSI-
NESS ENTERPRISE WITH RESPECT TO A DISTRICT SHALL CONSTITUTE A DISPOSAL
OR CESSATION OF QUALIFIED USE OF THE PROPERTY ON WHICH THE CREDIT WAS
TAKEN WHICH IS LOCATED IN THE DISTRICT TO WHICH THE DECERTIFICATION
APPLIES, ON THE EFFECTIVE DATE OF SUCH DECERTIFICATION.
(II) WHERE A BUSINESS ENTERPRISE HAS BEEN DECERTIFIED THE AMOUNT
REQUIRED TO BE ADDED BACK BY REASON OF THIS PARAGRAPH SHALL BE AUGMENTED
BY AN AMOUNT EQUAL TO THE PRODUCT OF THE AMOUNT OF CREDIT, WITH RESPECT
TO PROPERTY WHICH IS DISPOSED OF OR CEASES TO BE IN QUALIFIED USE, WHICH
WAS DEDUCTED FROM THE TAXPAYER'S TAX OTHERWISE DUE UNDER THIS ARTICLE
FOR ALL PRIOR TAXABLE YEARS (SUBJECT TO THE LIMIT SET FORTH IN THIS
SUBPARAGRAPH) AND THE UNDERPAYMENT RATE OF INTEREST (WITHOUT REGARD TO
COMPOUNDING) SET BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO
SUBSECTION (J) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS ARTICLE, IN
EFFECT ON THE LAST DAY OF THE TAXABLE YEAR. THE LIMIT SHALL BE (I) THE
AMOUNT OF CREDIT, WITH RESPECT TO THE PROPERTY WHICH IS DISPOSED OF OR
CEASES TO BE IN QUALIFIED USE, WHICH WAS DEDUCTED FROM THE TAXPAYER'S
TAX OTHERWISE DUE UNDER THIS ARTICLE FOR ALL PRIOR TAXABLE YEARS,
REDUCED (BUT NOT BELOW ZERO) BY (II) THE CREDIT ALLOWED FOR ACTUAL USE.
FOR PURPOSES OF THIS SUBPARAGRAPH, THE ATTRIBUTION TO SPECIFIC PROPERTY
OF CREDIT AMOUNT DEDUCTED FROM TAX SHALL BE ESTABLISHED IN ACCORDANCE
WITH THE DATE OF PLACEMENT IN SERVICE OF SUCH PROPERTY IN THE ACADEMIC
COLLABORATIVE DISTRICT.
(III) IN NO EVENT SHALL THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO
THIS SUBSECTION BE RENDERED, SOLELY BY REASON OF CLAUSE (I) OF THIS
SUBPARAGRAPH, LESS THAN THE AMOUNT OF THE CREDIT TO WHICH THE TAXPAYER
WOULD OTHERWISE BE ENTITLED UNDER SUBSECTION (A) OF THIS SECTION.
(IV) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBSECTION, IN THE
CASE OF A BUSINESS ENTERPRISE WHICH HAS BEEN DECERTIFIED, ANY AMOUNT OF
CREDIT ALLOWED WITH RESPECT TO THE PROPERTY OF SUCH BUSINESS ENTERPRISE
LOCATED IN THE DISTRICT TO WHICH THE DECERTIFICATION APPLIES WHICH IS
CARRIED OVER PURSUANT TO PARAGRAPH FOUR OF THIS SUBSECTION SHALL NOT BE
CARRIED OVER BEYOND THE SEVENTH TAXABLE YEAR NEXT FOLLOWING THE TAXABLE
YEAR WITH RESPECT TO WHICH THE CREDIT PROVIDED FOR IN THIS SUBSECTION
WAS ALLOWED.
(G) FOR PURPOSES OF THIS PARAGRAPH, WHERE A CREDIT IS ALLOWED WITH
RESPECT TO AN AIR POLLUTION CONTROL FACILITY ON THE BASIS OF A CERTIF-
ICATE OF COMPLIANCE ISSUED PURSUANT TO THE ENVIRONMENTAL CONSERVATION
LAW AND THE CERTIFICATE IS REVOKED PURSUANT TO SUBDIVISION THREE OF
SECTION 19-0309 OF THE ENVIRONMENTAL CONSERVATION LAW, SUCH REVOCATION
SHALL CONSTITUTE A DISPOSAL OR CESSATION OF QUALIFIED USE, EXCEPT WITH
RESPECT TO PROPERTY CONTAINED IN OR COMPRISING SUCH FACILITY WHICH IS
DESCRIBED IN CLAUSE (I), (II) OR (III) OF SUBPARAGRAPH (E) OF PARAGRAPH
TWO OF THIS SUBSECTION OTHER THAN AS PART OF OR COMPRISING AN AIR
POLLUTION CONTROL FACILITY. ALSO FOR PURPOSES OF THIS PARAGRAPH, THE USE
OF AN AIR POLLUTION CONTROL FACILITY OR AN INDUSTRIAL WASTE TREATMENT
FACILITY FOR THE PRIMARY PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE
IN THE MANUFACTURING PROCESS OR ARE MARKETABLE SHALL CONSTITUTE A CESSA-
A. 4361 22
TION OF QUALIFIED USE, EXCEPT WITH RESPECT TO PROPERTY CONTAINED IN OR
COMPRISING SUCH FACILITY WHICH IS DESCRIBED IN CLAUSE (I) OR (III) OF
SUBPARAGRAPH (E) OF PARAGRAPH TWO OF THIS SUBSECTION.
(L-2) ACADEMIC COLLABORATIVE DISTRICT EMPLOYMENT INCENTIVE CREDIT. (1)
WHERE A TAXPAYER IS ALLOWED A CREDIT UNDER SUBSECTION (L-1) OF THIS
SECTION, THE TAXPAYER SHALL BE ALLOWED A CREDIT FOR EACH OF THE THREE
YEARS NEXT SUCCEEDING THE TAXABLE YEAR FOR WHICH THE CREDIT UNDER SUCH
SUBSECTION (L-1) IS ALLOWED, WITH RESPECT TO SUCH PROPERTY, WHETHER OR
NOT DEDUCTIBLE IN SUCH TAXABLE YEAR OR IN SUBSEQUENT TAXABLE YEARS
PURSUANT TO PARAGRAPH FOUR OF SUBSECTION (L-1) OF THIS SECTION, OF THIR-
TY PERCENT OF THE CREDIT ALLOWABLE UNDER SUCH SUBSECTION (L-1);
PROVIDED, HOWEVER, THAT THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR
ANY TAXABLE YEAR SHALL ONLY BE ALLOWED IF THE AVERAGE NUMBER OF EMPLOY-
EES EMPLOYED BY THE TAXPAYER IN THE ACADEMIC COLLABORATIVE DISTRICT,
DESIGNATED PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW,
IN WHICH SUCH PROPERTY IS LOCATED DURING SUCH TAXABLE YEAR IS AT LEAST
ONE HUNDRED ONE PERCENT OF THE AVERAGE NUMBER OF EMPLOYEES EMPLOYED BY
THE TAXPAYER IN SUCH ACADEMIC COLLABORATIVE DISTRICT OR, WHERE APPLICA-
BLE, IN THE GEOGRAPHIC AREA SUBSEQUENTLY CONSTITUTING SUCH DISTRICT,
DURING THE TAXABLE YEAR IMMEDIATELY PRECEDING THE TAXABLE YEAR FOR WHICH
THE CREDIT UNDER SUCH SUBSECTION (L-1) IS ALLOWED AND PROVIDED, FURTHER,
THAT IN THE CASE OF A NEW BUSINESS, THE CREDIT ALLOWABLE UNDER THIS
SUBSECTION FOR ANY TAXABLE YEAR SHALL BE ALLOWED IF THE AVERAGE NUMBER
OF EMPLOYEES EMPLOYED IN SUCH ACADEMIC COLLABORATIVE DISTRICT IN SUCH
TAXABLE YEAR IS AT LEAST ONE HUNDRED ONE PERCENT OF THE AVERAGE NUMBER
OF SUCH EMPLOYEES DURING THE TAXABLE YEAR IN WHICH THE CREDIT UNDER SUCH
SUBSECTION (L-1) IS ALLOWED.
(2) THE AVERAGE NUMBER OF EMPLOYEES EMPLOYED IN AN ACADEMIC COLLABORA-
TIVE DISTRICT, OR, WHERE APPLICABLE, IN THE GEOGRAPHIC AREA SUBSEQUENTLY
CONSTITUTING SUCH DISTRICT, IN A TAXABLE YEAR SHALL BE COMPUTED BY
ASCERTAINING THE NUMBER OF SUCH EMPLOYEES WITHIN SUCH DISTRICT, OR,
WHERE APPLICABLE, IN THE GEOGRAPHIC AREA SUBSEQUENTLY CONSTITUTING SUCH
DISTRICT, EMPLOYED BY THE TAXPAYER ON THE THIRTY-FIRST DAY OF MARCH, THE
THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER AND THE
THIRTY-FIRST DAY OF DECEMBER IN THE TAXABLE YEAR, BY ADDING TOGETHER THE
NUMBER OF EMPLOYEES ASCERTAINED IN EACH OF SUCH DATES AND DIVIDING THE
SUM SO OBTAINED BY THE NUMBER OF SUCH ABOVEMENTIONED DATES OCCURRING
WITHIN THE TAXABLE YEAR.
(3) IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. IN LIEU OF CARRYING OVER
ANY SUCH EXCESS, A TAXPAYER WHO QUALIFIED AS AN OWNER OF A NEW BUSINESS
FOR PURPOSES OF PARAGRAPH TEN OF SUBSECTION (A) OF THIS SECTION MAY, AT
HIS OPTION, RECEIVE FIFTY PERCENT OF SUCH EXCESS AS A REFUND. ANY REFUND
PAID PURSUANT TO THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN
OVERPAYMENT OF TAX AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
(L-3) ACADEMIC COLLABORATIVE DISTRICT WAGE TAX CREDIT. (1) A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED,
AGAINST THE TAX IMPOSED BY THIS ARTICLE, WHERE THE TAXPAYER HAS BEEN
CERTIFIED PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW.
THE AMOUNT OF SUCH CREDIT SHALL BE AS PRESCRIBED IN PARAGRAPH FOUR OF
THIS SUBSECTION.
(2) FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS: (A) "ACADEMIC COLLABORATIVE DISTRICT WAGES"
A. 4361 23
MEANS WAGES PAID BY THE TAXPAYER FOR FULL-TIME EMPLOYMENT DURING THE
TAXABLE YEAR, IN AN AREA DESIGNATED OR PREVIOUSLY DESIGNATED AS AN
ACADEMIC COLLABORATIVE DISTRICT OR DISTRICT EQUIVALENT AREA PURSUANT TO
ARTICLE EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW, WHERE SUCH EMPLOYMENT
IS IN A JOB CREATED IN THE AREA (I) DURING THE PERIOD OF ITS DESIGNATION
AS AN ACADEMIC COLLABORATIVE DISTRICT, (II) WITHIN FOUR YEARS OF THE
EXPIRATION OF SUCH DESIGNATION, OR (III) DURING THE TEN YEAR PERIOD
IMMEDIATELY FOLLOWING THE DATE OF DESIGNATION AS A COLLEGE DISTRICT
EQUIVALENT AREA, PROVIDED, HOWEVER, THAT IF THE TAXPAYER'S CERTIFICATION
UNDER ARTICLE EIGHTEEN OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED WITH
RESPECT TO AN ACADEMIC COLLABORATIVE DISTRICT OR DISTRICT EQUIVALENT
AREA, ANY WAGES PAID BY THE TAXPAYER, ON OR AFTER THE EFFECTIVE DATE OF
SUCH DECERTIFICATION, FOR EMPLOYMENT IN SUCH DISTRICT SHALL NOT CONSTI-
TUTE ACADEMIC COLLABORATIVE DISTRICT WAGES.
(B) "TARGETED EMPLOYEE" MEANS A NEW YORK RESIDENT WHO RECEIVES ACADEM-
IC COLLABORATIVE DISTRICT WAGES AND WHO IS (I) AN ELIGIBLE INDIVIDUAL
UNDER THE PROVISIONS OF THE TARGETED JOBS TAX CREDIT (SECTION FIFTY-ONE
OF THE INTERNAL REVENUE CODE), (II) ELIGIBLE FOR BENEFITS UNDER THE
PROVISIONS OF THE JOB TRAINING PARTNERSHIP ACT (P.L. 97-300, AS
AMENDED), (III) A RECIPIENT OF PUBLIC ASSISTANCE BENEFITS OR (IV) AN
INDIVIDUAL WHOSE INCOME IS BELOW THE MOST RECENTLY ESTABLISHED POVERTY
RATE PROMULGATED BY THE UNITED STATES DEPARTMENT OF COMMERCE, OR A
MEMBER OF A FAMILY WHOSE FAMILY INCOME IS BELOW THE MOST RECENTLY ESTAB-
LISHED POVERTY RATE PROMULGATED BY THE APPROPRIATE FEDERAL AGENCY.
AN INDIVIDUAL WHO SATISFIES THE CRITERIA SET FORTH IN CLAUSE (I), (II)
OR (IV) OF THIS SUBPARAGRAPH AT THE TIME OF INITIAL EMPLOYMENT IN THE
JOB WITH RESPECT TO WHICH THE CREDIT IS CLAIMED, OR WHO SATISFIES THE
CRITERION SET FORTH IN CLAUSE (III) OF THIS SUBPARAGRAPH AT SUCH TIME OR
AT ANY TIME WITHIN THE PREVIOUS TWO YEARS, SHALL BE A TARGETED EMPLOYEE
SO LONG AS SUCH INDIVIDUAL CONTINUES TO RECEIVE ACADEMIC COLLABORATIVE
DISTRICT WAGES.
(C) "AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME" SHALL BE
COMPUTED BY ASCERTAINING THE NUMBER OF SUCH INDIVIDUALS EMPLOYED BY THE
TAXPAYER ON THE THIRTY-FIRST DAY OF MARCH, THE THIRTIETH DAY OF JUNE,
THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEMBER
DURING EACH TAXABLE YEAR OR OTHER APPLICABLE PERIOD, BY ADDING TOGETHER
THE NUMBER OF SUCH INDIVIDUALS ASCERTAINED ON EACH OF SUCH DATES AND
DIVIDING THE SUM SO OBTAINED BY THE NUMBER OF SUCH DATES OCCURRING WITH-
IN SUCH TAXABLE YEAR OR OTHER APPLICABLE PERIOD.
(3) THE CREDIT PROVIDED FOR HEREIN SHALL BE ALLOWED ONLY WHERE THE
AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN (I)
THE STATE AND (II) THE ACADEMIC COLLABORATIVE DISTRICT OR AREA PREVIOUS-
LY CONSTITUTING SUCH DISTRICT OR DISTRICT EQUIVALENT AREA, DURING THE
TAXABLE YEAR EXCEEDS THE AVERAGE NUMBER OF SUCH INDIVIDUALS EMPLOYED
FULL-TIME BY THE TAXPAYER IN (I) THE STATE AND (II) SUCH DISTRICT OR
AREA SUBSEQUENTLY OR PREVIOUSLY CONSTITUTING SUCH DISTRICT OR SUCH
DISTRICT EQUIVALENT AREA, RESPECTIVELY, DURING THE FOUR YEARS IMMEDIATE-
LY PRECEDING THE FIRST TAXABLE YEAR IN WHICH THE CREDIT IS CLAIMED WITH
RESPECT TO SUCH DISTRICT OR AREA. WHERE THE TAXPAYER PROVIDED FULL-TIME
EMPLOYMENT WITHIN (I) THE STATE OR (II) SUCH DISTRICT OR AREA DURING
ONLY A PORTION OF SUCH FOUR-YEAR PERIOD, THEN FOR PURPOSES OF THIS PARA-
GRAPH THE TERM "FOUR YEARS" SHALL BE DEEMED TO REFER INSTEAD TO SUCH
PORTION, IF ANY.
THE CREDIT SHALL BE ALLOWED ONLY WITH RESPECT TO THE FIRST TAXABLE
YEAR DURING WHICH PAYMENTS OF ACADEMIC COLLABORATIVE DISTRICT WAGES ARE
MADE AND THE CONDITIONS SET FORTH IN THIS PARAGRAPH ARE SATISFIED, AND
A. 4361 24
WITH RESPECT TO EACH OF THE FOUR TAXABLE YEARS NEXT FOLLOWING (BUT ONLY,
WITH RESPECT TO EACH OF SUCH YEARS, IF SUCH CONDITIONS ARE SATISFIED),
IN ACCORDANCE WITH PARAGRAPH FOUR OF THIS SUBSECTION. SUBSEQUENT CERTIF-
ICATIONS OF THE TAXPAYER PURSUANT TO ARTICLE EIGHTEEN OF THE ECONOMIC
DEVELOPMENT LAW, AT THE SAME OR A DIFFERENT LOCATION IN THE SAME ACADEM-
IC COLLABORATIVE DISTRICT OR DISTRICT EQUIVALENT AREA OR AT A LOCATION
IN A DIFFERENT ACADEMIC COLLABORATIVE DISTRICT OR DISTRICT EQUIVALENT
AREA, SHALL NOT EXTEND THE FIVE TAXABLE YEAR TIME LIMITATION ON THE
ALLOWANCE OF THE CREDIT SET FORTH IN THE PRECEDING SENTENCE. PROVIDED,
FURTHER, HOWEVER, THAT NO CREDIT SHALL BE ALLOWED WITH RESPECT TO ANY
TAXABLE YEAR BEGINNING MORE THAN FOUR YEARS FOLLOWING THE TAXABLE YEAR
IN WHICH DESIGNATION AS AN ACADEMIC COLLABORATIVE DISTRICT EXPIRED OR
MORE THAN TEN YEARS AFTER THE DESIGNATION AS A DISTRICT EQUIVALENT AREA.
(4) THE AMOUNT OF THE CREDIT SHALL EQUAL THE SUM OF
(I) THE PRODUCT OF THREE THOUSAND DOLLARS AND THE AVERAGE NUMBER OF
INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER, COMPUTED PURSUANT TO THE
PROVISIONS OF SUBPARAGRAPH (C) OF PARAGRAPH TWO OF THIS SUBSECTION, WHO
(I) RECEIVED ACADEMIC COLLABORATIVE DISTRICT WAGES FOR MORE THAN HALF
OF THE TAXABLE YEAR,
(II) RECEIVED WITH RESPECT TO MORE THAN HALF OF THE PERIOD OF EMPLOY-
MENT BY THE TAXPAYER DURING THE TAXABLE YEAR, AN HOURLY WAGE WHICH WAS
AT LEAST ONE HUNDRED THIRTY-FIVE PERCENT OF THE MINIMUM WAGE SPECIFIED
IN SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR LAW, AND
(III) ARE TARGETED EMPLOYEES; AND
(II) THE PRODUCT OF FIFTEEN HUNDRED DOLLARS AND THE AVERAGE NUMBER OF
INDIVIDUALS (EXCLUDING INDIVIDUALS DESCRIBED IN SUBPARAGRAPH (I) OF THIS
PARAGRAPH) EMPLOYED FULL-TIME BY THE TAXPAYER, COMPUTED PURSUANT TO THE
PROVISIONS OF SUBPARAGRAPH (C) OF PARAGRAPH TWO OF THIS SUBSECTION, WHO
RECEIVED DISTRICT WAGES FOR MORE THAN HALF OF THE TAXABLE YEAR.
PROVIDED, FURTHER, HOWEVER, THAT THE CREDIT PROVIDED FOR HEREIN WITH
RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH CREDIT TO THE TAXA-
BLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE, MAY NOT, IN THE AGGRE-
GATE, EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER SECTION SIX HUNDRED
ONE OF THIS PART COMPUTED WITHOUT REGARD TO ANY CREDIT PROVIDED FOR
UNDER THIS ARTICLE.
(III) FOR PURPOSES OF CALCULATING THE AMOUNT OF THE CREDIT, INDIVID-
UALS EMPLOYED WITHIN AN ACADEMIC COLLABORATIVE DISTRICT OR DISTRICT
EQUIVALENT AREA WITHIN THE IMMEDIATELY PRECEDING SIXTY MONTHS BY A
RELATED PERSON, AS SUCH TERM IS DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH
THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTER-
NAL REVENUE CODE, SHALL NOT BE INCLUDED IN THE AVERAGE NUMBER OF INDI-
VIDUALS DESCRIBED IN SUBPARAGRAPH (I) OR SUBPARAGRAPH (II) OF THIS PARA-
GRAPH, UNLESS SUCH RELATED PERSON WAS NEVER ALLOWED A CREDIT UNDER THIS
SUBSECTION WITH RESPECT TO SUCH EMPLOYEES.
(5) 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 FOUR 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. IN LIEU
OF CARRYING OVER ANY SUCH EXCESS, A TAXPAYER WHO QUALIFIES AS AN OWNER
OF A NEW BUSINESS FOR PURPOSES OF PARAGRAPH TEN OF SUBSECTION (A) OF
THIS SECTION MAY, AT HIS OPTION, RECEIVE FIFTY PERCENT OF SUCH EXCESS AS
A REFUND. ANY REFUND PAID PURSUANT TO THIS PARAGRAPH SHALL BE DEEMED TO
BE A REFUND OF AN OVERPAYMENT OF TAX AS PROVIDED IN SECTION SIX HUNDRED
A. 4361 25
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE
PAID THEREON.
(L-4) ACADEMIC COLLABORATIVE DISTRICT CAPITAL TAX CREDIT. (1) A
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF
THE SUM OF THE FOLLOWING INVESTMENTS AND CONTRIBUTIONS MADE DURING THE
TAXABLE YEAR AND CERTIFIED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT:
(A) QUALIFIED INVESTMENTS MADE IN, OR CONTRIBUTIONS IN THE FORM OF
DONATIONS MADE TO, ONE OR MORE ACADEMIC COLLABORATIVE DISTRICT CAPITAL
CORPORATIONS ESTABLISHED PURSUANT TO SECTION NINE HUNDRED SIXTY-FOUR OF
THE GENERAL MUNICIPAL LAW, (B) QUALIFIED INVESTMENTS IN CERTIFIED
DISTRICT BUSINESSES WHICH DURING THE TWELVE MONTH PERIOD IMMEDIATELY
PRECEDING THE MONTH IN WHICH SUCH INVESTMENT IS MADE, EMPLOYED FULL-TIME
WITHIN THE STATE AN AVERAGE NUMBER OF INDIVIDUALS OF TWO HUNDRED FIFTY
OR FEWER, COMPUTED PURSUANT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF
PARAGRAPH TWO OF SUBSECTION (K) OF THIS SECTION, EXCEPT FOR INVESTMENTS
MADE BY OR ON BEHALF OF AN OWNER OF THE BUSINESS INCLUDING, BUT NOT
LIMITED TO, A STOCKHOLDER, PARTNER OR SOLE PROPRIETOR, OR ANY RELATED
PERSON, AS DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH THREE OF SUBSECTION
(B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVENUE CODE, AND
(C) CONTRIBUTIONS OF MONEY TO COMMUNITY DEVELOPMENT PROJECTS AS DEFINED
IN REGULATIONS PROMULGATED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT.
"QUALIFIED INVESTMENTS" MEANS THE CONTRIBUTION OF PROPERTY TO A CORPO-
RATION IN EXCHANGE FOR ORIGINAL ISSUE CAPITAL STOCK OR OTHER OWNERSHIP
INTEREST, THE CONTRIBUTION OF PROPERTY TO A PARTNERSHIP IN EXCHANGE FOR
AN INTEREST IN THE PARTNERSHIP, AND SIMILAR CONTRIBUTIONS IN THE CASE OF
A BUSINESS ENTITY NOT IN CORPORATE OR PARTNERSHIP FORM IN EXCHANGE FOR
AN OWNERSHIP INTEREST IN SUCH ENTITY. THE TOTAL AMOUNT OF CREDIT ALLOW-
ABLE TO A TAXPAYER UNDER THIS PROVISION FOR ALL YEARS, TAKEN IN THE
AGGREGATE, SHALL NOT EXCEED THREE HUNDRED THOUSAND DOLLARS, AND SHALL
NOT EXCEED ONE HUNDRED THOUSAND DOLLARS WITH RESPECT TO THE INVESTMENTS
AND CONTRIBUTIONS DESCRIBED IN EACH OF SUBPARAGRAPHS (A), (B) AND (C) OF
THIS PARAGRAPH.
(2) (A) 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, 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 THIS SUBPARAGRAPH, 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. IN ADDITION, THE AMOUNT OF SUCH CREDIT,
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 SIX HUNDRED ONE OF THIS PART COMPUTED WITHOUT
REGARD TO ANY CREDIT PROVIDED FOR BY THIS SECTION.
(B) IN THE CASE OF A HUSBAND OR WIFE WHO IS REQUIRED TO FILE A SEPA-
RATE RETURN, THE LIMITATION PROVIDED FOR IN PARAGRAPH ONE OF THIS
SUBSECTION SHALL BE FIFTY THOUSAND DOLLARS IN LIEU OF ONE HUNDRED THOU-
SAND DOLLARS AND ONE HUNDRED FIFTY THOUSAND DOLLARS IN LIEU OF THREE
HUNDRED THOUSAND DOLLARS, UNLESS THE SPOUSE OF THE TAXPAYER HAS NO CRED-
IT ALLOWABLE UNDER THIS SUBSECTION FOR THE TAXABLE YEAR OF SUCH SPOUSE
WHICH ENDS WITHIN OR WITH THE TAXPAYER'S TAXABLE YEAR.
(C) IN THE CASE OF AN ESTATE OR TRUST, THE LIMITATION PROVIDED FOR IN
PARAGRAPH ONE OF THIS SUBSECTION SHALL BE REDUCED TO AN AMOUNT WHICH
BEARS THE SAME RATIO TO ONE HUNDRED THOUSAND DOLLARS AND AN AMOUNT WHICH
BEARS THE SAME RATIO TO THREE HUNDRED THOUSAND DOLLARS AS THE PORTION OF
A. 4361 26
THE INCOME OF THE ESTATE OR TRUST WHICH IS NOT ALLOCATED TO BENEFICI-
ARIES BEARS TO THE TOTAL INCOME OF THE ESTATE OR TRUST.
(3) WHERE THE STOCK, PARTNERSHIP INTEREST OR OTHER OWNERSHIP INTEREST
ARISING FROM A QUALIFIED INVESTMENT AS DESCRIBED IN SUBPARAGRAPHS (A)
AND (B) OF PARAGRAPH ONE OF THIS SUBSECTION IS DISPOSED OF, THE TAXPAY-
ER'S NEW YORK TAXABLE INCOME SHALL BE COMPUTED, PURSUANT TO REGULATIONS
PROMULGATED BY THE COMMISSIONER, SO AS TO PROPERLY REFLECT THE REDUCED
COST THEREOF ARISING FROM THE APPLICATION OF THE CREDIT PROVIDED FOR
HEREIN.
(4) (A) WHERE A TAXPAYER SELLS, TRANSFERS OR OTHERWISE DISPOSES OF
CORPORATE STOCK, A PARTNERSHIP INTEREST OR OTHER OWNERSHIP INTEREST
ARISING FROM THE MAKING OF A QUALIFIED INVESTMENT WHICH WAS THE BASIS,
IN WHOLE OR IN PART, FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER
THIS SUBSECTION, OR WHERE A CONTRIBUTION OR INVESTMENT WHICH WAS THE
BASIS FOR SUCH ALLOWANCE IS IN ANY MANNER, IN WHOLE OR IN PART, RECOV-
ERED BY SUCH TAXPAYER, AND SUCH DISPOSITION OR RECOVERY OCCURS DURING
THE TAXABLE YEAR OR WITHIN THIRTY-SIX MONTHS FROM THE CLOSE OF THE TAXA-
BLE YEAR WITH RESPECT TO WHICH SUCH CREDIT IS ALLOWED, SUBPARAGRAPH (B)
OF THIS PARAGRAPH SHALL APPLY.
(B) THE TAXPAYER SHALL ADD BACK WITH RESPECT TO THE TAXABLE YEAR IN
WHICH THE DISPOSITION OR RECOVERY DESCRIBED IN SUBPARAGRAPH (A) OF THIS
PARAGRAPH OCCURRED THE REQUIRED PORTION OF THE CREDIT ORIGINALLY
ALLOWED.
(C) THE REQUIRED PORTION OF THE CREDIT ORIGINALLY ALLOWED SHALL BE THE
PRODUCT OF (I) THE PORTION OF SUCH CREDIT ATTRIBUTABLE TO THE PROPERTY
DISPOSED OF OR THE PAYMENT OR CONTRIBUTION RECOVERED AND (II) THE APPLI-
CABLE PERCENTAGE.
(D) THE APPLICABLE PERCENTAGE SHALL BE:
(I) ONE HUNDRED PERCENT, IF THE DISPOSITION OR RECOVERY OCCURS WITHIN
THE TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED OR WITHIN
TWELVE MONTHS OF THE END OF SUCH TAXABLE YEAR,
(II) SIXTY-SEVEN PERCENT, IF THE DISPOSITION OR RECOVERY OCCURS MORE
THAN TWELVE BUT NOT MORE THAN TWENTY-FOUR MONTHS AFTER THE END OF THE
TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED, OR
(III) THIRTY-THREE PERCENT, IF THE DISPOSITION OR RECOVERY OCCURS MORE
THAN TWENTY-FOUR BUT NOT MORE THAN THIRTY-SIX MONTHS AFTER THE END OF
THE TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED.
S 6. This act shall take effect immediately.