Assembly Bill A4861

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

                                  4861

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 8, 2011
                               ___________

Introduced by M. of A. BUTLER -- read once and referred to the Committee
  on Economic Development

AN  ACT  to  amend  the  economic  development  law  and the tax law, in
  relation to establishing the growth in manufacturing incentive program

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

  Section  1.  Short title.  This act shall be known and may be cited as
the "growth in manufacturing incentive program".
  S 2. Legislative findings and intent. The legislature finds and deter-
mines that historically manufacturing firms have  helped  to  build  our
state.  Today,  manufacturing  jobs are an essential part of the state's
economy. Accordingly, the state should offer programs that foster growth
in this important sector of the  state  economy.  The  purpose  of  this
legislation  is  to establish a tax incentive program that would provide
tax credits to manufacturing firms that create new jobs in the  manufac-
turing sector over a specified period of time.
  S  3.  The economic development law is amended by adding a new article
13-A to read as follows:
                               ARTICLE 13-A
                GROWTH IN MANUFACTURING INCENTIVE PROGRAM

SECTION 255. DEFINITIONS.
        256. GROWTH IN MANUFACTURING INCENTIVE PROGRAM.
        257. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS.
        258. REPORTING.
  S 255. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING  WORDS  AND
TERMS  SHALL  HAVE THE FOLLOWING MEANINGS UNLESS THE CONTENT SHALL INDI-
CATE ANOTHER OR DIFFERENT MEANING OR INTENT:
  1. "PROGRAM" SHALL MEAN THE GROWTH IN MANUFACTURING INCENTIVE  PROGRAM
ESTABLISHED PURSUANT TO THIS ARTICLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08435-01-1

              

A. 4861                             2

  2.  "MANUFACTURING FIRM" SHALL MEAN AN ENTERPRISE ENGAGED IN THE BUSI-
NESS OF PRODUCTION OF GOODS AND PRODUCTS FROM RAW MATERIALS.
  3.  "BENCHMARK"  SHALL  MEAN  A  SPECIFIC  NUMBER OF ELIGIBLE NEW JOBS
CREATED IN THE STATE PURSUANT TO THE PROGRAM.
  4. "GMI" SHALL MEAN GROWTH MANUFACTURING INCENTIVE.
  S 256. GROWTH IN MANUFACTURING INCENTIVE PROGRAM. 1. THERE  IS  HEREBY
CREATED  A  GROWTH IN MANUFACTURING INCENTIVE PROGRAM WITHIN THE DEPART-
MENT TO PROVIDE TECHNICAL AND FINANCIAL ASSISTANCE IN THE  FORM  OF  TAX
INCENTIVES  TO MANUFACTURING FIRMS THAT MEET SPECIFIED BENCHMARKS IN JOB
CREATION AS ESTABLISHED BY THE COMMISSIONER.
  2. THE  COMMISSIONER  SHALL  DETERMINE  ELIGIBILITY  REQUIREMENTS  FOR
PARTICIPATION  IN THE PROGRAM, PROVIDED, HOWEVER, THAT SUCH REQUIREMENTS
INCLUDE THE FOLLOWING:
  (A) AN APPLICANT SHALL HAVE MAINTAINED OFFICES WITHIN THE STATE FOR AT
LEAST FIVE YEARS PRIOR TO APPLICATION FOR PARTICIPATION IN THE PROGRAM;
  (B) AN APPLICANT MAY NOT PARTICIPATE IN THE PROGRAM IF DESIGNATED AS A
CERTIFIED BUSINESS LOCATED IN AN EMPIRE ZONE CREATED PURSUANT TO ARTICLE
EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW;
  (C) AN APPLICANT THAT HAS PREVIOUSLY PARTICIPATED IN THE  PROGRAM  MAY
NOT REAPPLY FOR PARTICIPATION IN THE PROGRAM UNLESS IT CAN DOCUMENT THAT
AT  THE  TIME  OF ITS APPLICATION FOR PARTICIPATION, IT HAS MAINTAINED A
LEVEL OF EMPLOYMENT AT LEAST AS GREAT AS THE HIGHEST  LEVEL  DURING  ITS
PREVIOUS PARTICIPATION IN THE PROGRAM;
  3.  APPLICATIONS  FOR  PARTICIPATION  IN  THE  GROWTH IN MANUFACTURING
INCENTIVE PROGRAM SHALL BE IN THE FORM  AND  CONTAIN  SUCH  INFORMATION,
EXHIBITS  AND  SUPPORTING  DATA  AS  THE  COMMISSIONER MAY PRESCRIBE. NO
APPLICATIONS FOR PARTICIPATION SHALL BE ACCEPTED AFTER DECEMBER  THIRTY-
FIRST, TWO THOUSAND EIGHTEEN.
  4. THE COMMISSIONER SHALL REVIEW ALL APPLICATIONS FOR PARTICIPATION IN
THE  PROGRAM FOR ELIGIBILITY AND SHALL REGISTER ELIGIBLE APPLICANTS. THE
COMMISSIONER SHALL PROVIDE EACH REGISTERED APPLICANT WITH BENCHMARKS  IN
JOB  CREATION THAT MUST BE ACHIEVED BY THE REGISTERED APPLICANT OVER THE
FOLLOWING FIVE YEARS. SUCH BENCHMARKS SHALL  BE  CONSISTENT  WITH  REGU-
LATIONS TO BE PRESCRIBED BY THE COMMISSIONER. EACH YEAR, EACH REGISTERED
APPLICANT SHALL SUBMIT TO THE COMMISSIONER AN ANNUAL REGISTRATION STATE-
MENT,  TOGETHER  WITH  SUCH INFORMATION, EXHIBITS AND SUPPORTING DATA AS
THE COMMISSIONER MAY REQUIRE. UPON SUBMISSION OF THE FIFTH ANNUAL REGIS-
TRATION STATEMENT, THE COMMISSIONER SHALL REVIEW THE  REGISTERED  APPLI-
CANT'S  FILE  FOR  ELIGIBILITY FOR THE TAX INCENTIVE.  IF THE REGISTERED
APPLICANT HAS MET EACH BENCHMARK IN JOB CREATION, THE COMMISSIONER SHALL
PROVIDE A CERTIFICATE FOR THE TAXABLE YEARS THAT THE APPLICANT IS ELIGI-
BLE FOR THE TAX CREDITS PURSUANT TO THIS ARTICLE. SUCH CERTIFICATE SHALL
INCLUDE A DESCRIPTION OF THE PROPERTY ELIGIBLE FOR THE BENEFIT  AND  THE
GROSS  SALARY OF EMPLOYEES THAT WILL BE COVERED BY THE WAGE CREDIT. SUCH
CERTIFICATION SHALL BE VALID FOR A TWO-YEAR PERIOD.
  S 257. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS.  DURING
THE  CERTIFICATION  PERIOD,  THE  PARTICIPATING MANUFACTURING FIRM SHALL
RECEIVE THE FOLLOWING TAX CREDITS:
  1. FOR THE GMI PROPERTY TAX CREDIT, THE TAX CREDIT SHALL  BE  COMPUTED
PURSUANT TO SECTION TWENTY-FOUR-A OF THE TAX LAW;
  2.  FOR THE GMI WAGE CREDIT, THE TAX CREDIT SHALL BE COMPUTED PURSUANT
TO SECTION TWENTY-FOUR-B OF THE TAX LAW; AND
  3. FOR THE GMI ENERGY CREDIT, THE TAX CREDIT SHALL BE COMPUTED  PURSU-
ANT TO SECTION TWENTY-FOUR-C OF THE TAX LAW.
  S  258.  REPORTING.    THE  COMMISSIONER SHALL, ON OR BEFORE SEPTEMBER
FIRST, TWO THOUSAND TWELVE, AND ANNUALLY THEREAFTER, SUBMIT A REPORT  TO

A. 4861                             3

THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY AND THE MINORITY LEADERS OF THE SENATE AND THE ASSEMBLY ON  THE
OPERATION  AND  ACCOMPLISHMENTS  OF THE PROGRAM PROVIDED FOR PURSUANT TO
THIS ARTICLE.
  S  4.  The  tax law is amended by adding three new sections 24-a, 24-b
and 24-c to read as follows:
  S 24-A. GMI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT.  A  TAXPAYER
WHICH  HAS  RECEIVED  A  GMI  CERTIFICATE  FOR  THE TAXABLE YEAR, AND IS
SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER  SHALL
BE  ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFER-
ENCED IN SUBDIVISION (C) OF THIS SECTION, TO BE COMPUTED AS HEREINAFTER.
  (B) DEFINITION. THE TERM "ELIGIBLE REAL PROPERTY TAXES" SHALL MEAN TAX
IMPOSED ON REAL PROPERTY WHICH HAS BEEN CERTIFIED AS GMI PROPERTY PURSU-
ANT TO ARTICLE THIRTEEN-A OF THE ECONOMIC DEVELOPMENT LAW. IN  ADDITION,
THE  TERM  "ELIGIBLE  REAL  PROPERTY TAXES" INCLUDES PAYMENTS IN LIEU OF
TAXES MADE BY THE TAXPAYER TO THE STATE, A MUNICIPAL  CORPORATION  OR  A
PUBLIC  BENEFIT CORPORATION PURSUANT TO A WRITTEN AGREEMENT ENTERED INTO
BY THE TAXPAYER AND THE STATE, MUNICIPAL CORPORATION OR  PUBLIC  BENEFIT
CORPORATION.
  (C)  APPLICATION  OF  THE CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL
THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF  A  MEMBER
OF A PARTNERSHIP) OF TEN PERCENT AND THE ELIGIBLE REAL PROPERTY TAXES.
  (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 43,
  (2) ARTICLE 22: SECTION 606: SUBSECTION (SS).
  S 24-B. GMI WAGE CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WHICH HAS
RECEIVED  A  GMI CERTIFICATE FOR THE TAXABLE YEAR, AND IS SUBJECT TO TAX
UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL  BE  ALLOWED  A
CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDI-
VISION (C) OF THIS SECTION, TO BE COMPUTED AS HEREINAFTER.
  (B)  DEFINITION. THE TERM "ELIGIBLE WAGES" SHALL MEAN GROSS WAGES PAID
TO EMPLOYEES WHO HAVE BEEN CERTIFIED AS GMI EMPLOYEES PURSUANT TO  ARTI-
CLE THIRTEEN-A OF THE ECONOMIC DEVELOPMENT LAW.
  (C)  APPLICATION  OF  THE CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL
THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF  A  MEMBER
OF A PARTNERSHIP) OF ONE PERCENT AND THE ELIGIBLE WAGES.
  (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 44,
  (2) ARTICLE 22: SECTION 606: SUBSECTION (TT).
  S  24-C.  GMI ENERGY CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WHICH
HAS RECEIVED A GMI CERTIFICATE FOR THE TAXABLE YEAR, AND IS  SUBJECT  TO
TAX  UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED
A CREDIT AGAINST SUCH TAX, PURSUANT  TO  THE  PROVISIONS  REFERENCED  IN
SUBDIVISION (D) OF THIS SECTION, TO BE COMPUTED AS HEREINAFTER.
  (B)  DEFINITION.  THE TERM "ELIGIBLE ENERGY COSTS" SHALL MEAN THE COST
OF ELECTRICITY, NATURAL GAS, OR ANY  OTHER  ENERGY  PRODUCT  OR  SERVICE
WHICH  THE TAXPAYER HAS USED AS PART OF THE OPERATION OF A GMI CERTIFIED
FACILITY PURSUANT TO ARTICLE THIRTEEN-A OF THE ECONOMIC DEVELOPMENT LAW.
  (C) THE LIMITATION SHALL BE THE  PRODUCT  OF  FIFTY  DOLLARS  AND  THE
NUMBER OF EMPLOYEES CERTIFIED AS GMI EMPLOYEES PURSUANT TO ARTICLE THIR-
TEEN-A OF THE ECONOMIC DEVELOPMENT LAW.
  (D)  APPLICATION  OF  THE CREDIT. THE AMOUNT OF THE CREDIT SHALL EQUAL
THE PRODUCT (OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF  A  MEMBER
OF A PARTNERSHIP) OF ONE HUNDRED PERCENT AND THE ELIGIBLE ENERGY COSTS.
  (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 45,
  (2) ARTICLE 22: SECTION 606: SUBSECTION (UU).
  S  5. Section 210 of the tax law is amended by adding three new subdi-
visions 43, 44 and 45 to read as follows:

A. 4861                             4

  43. GMI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  TWENTY-ONE,
AS  ADDED  BY CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO THOUSAND
THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  CARRYOVERS.  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY
TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D)  OF  SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  44. GMI WAGE CREDIT. (A) ALLOWANCE OF  CREDIT.  A  TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-ONE, AS
ADDED BY CHAPTER SIX HUNDRED EIGHTY-SIX OF  THE  LAWS  OF  TWO  THOUSAND
THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  CARRYOVERS.  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY
TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D)  OF  SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  45. GMI ENERGY CREDIT. (A) ALLOWANCE OF CREDIT. A  TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-ONE, AS
ADDED BY CHAPTER SIX HUNDRED EIGHTY-SIX OF  THE  LAWS  OF  TWO  THOUSAND
THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  CARRYOVERS.  THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY
TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D)  OF  SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the tax law is amended by adding three new clauses (xxxii), (xxxiii)
and (xxxiv) to read as follows:
(XXXII) GMI PROPERTY TAX             AMOUNT OF GMI PROPERTY
CREDIT UNDER SUBSECTION              TAX CREDIT UNDER SUBDIVISION
(SS)                                 FORTY-THREE OF SECTION TWO
                                     HUNDRED TEN

(XXXIII) GMI WAGE CREDIT UNDER       AMOUNT OF GMI WAGE
SUBSECTION (TT)                      CREDIT UNDER SUBDIVISION
                                     FORTY-FOUR OF SECTION
                                     TWO HUNDRED TEN

(XXXIV) GMI ENERGY CREDIT            AMOUNT OF GMI ENERGY
UNDER SUBSECTION (UU)                CREDIT UNDER SUBDIVISION
                                     FORTY-FIVE OF SECTION
                                     TWO HUNDRED TEN
  S 7. Section 606 of the  tax  law  is  amended  by  adding  three  new
subsections (ss), (tt) and (uu) to read as follows:

A. 4861                             5

  (SS)  GMI  PROPERTY  TAX  CREDIT.  (1) ALLOWANCE OF CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  TWEN-
TY-ONE,  AS  ADDED  BY CHAPTER SIX HUNDRED EIGHTY-SIX OF THE LAWS OF TWO
THOUSAND THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY  THIS  ARTI-
CLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
SHALL BE PAID THEREON.
  (TT)  GMI  WAGE  CREDIT.  (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION  TWENTY-ONE,  AS
ADDED  BY  CHAPTER  SIX  HUNDRED  EIGHTY-SIX OF THE LAWS OF TWO THOUSAND
THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
  (UU) GMI ENERGY CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-ONE, AS
ADDED BY CHAPTER SIX HUNDRED EIGHTY-SIX OF  THE  LAWS  OF  TWO  THOUSAND
THREE, OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX  TO  BE
CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO  INTEREST
SHALL BE PAID THEREON.
  S 8. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall apply to taxable years beginning on
or  after January 1, 2012 and before January 1, 2021; provided, however,
that the addition, amendment and/or repeal of  any  rule  or  regulation
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made on or before such date.