S T A T E O F N E W Y O R K
________________________________________________________________________
6868
2011-2012 Regular Sessions
I N A S S E M B L Y
April 5, 2011
___________
Introduced by M. of A. KATZ -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to creating a sales tax
exemption for green technology companies purchasing manufacturing
equipment; and providing for the repeal of such provisions upon expi-
ration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new section 1124 to read
as follows:
S 1124. EXEMPTION FROM TAX ON MANUFACTURING EQUIPMENT PURCHASES FOR
GREEN TECHNOLOGY COMPANIES. (A) QUALIFYING GREEN TECHNOLOGY COMPANIES
SHALL BE EXEMPT FROM THE SALES TAXES IMPOSED UNDER THIS ARTICLE WHEN
PURCHASING NECESSARY MANUFACTURING EQUIPMENT TO BE USED IN CARRYING ON A
GREEN TECHNOLOGY TRADE OR BUSINESS IN ACCORDANCE WITH THE PROVISIONS OF
THIS SECTION.
(B) TO QUALIFY FOR TAX EXEMPT STATUS ELIGIBLE COMPANIES SHALL APPLY TO
THE COMMISSIONER WHO SHALL EVALUATE THE APPLICATION PURSUANT TO THE
GUIDELINES IN THIS SECTION AND RENDER A DECISION APPROVING OR DENYING
THE APPLICATION. APPLICATIONS SHALL BE SUBMITTED FOR EACH ELIGIBLE
PROJECT ON AN INDIVIDUAL BASIS AND SHALL STATE THE TOTAL DOLLAR AMOUNT
THAT WILL BE EXPENDED ON THE PURCHASE.
(C) THE COMMISSIONER SHALL PUBLISH NOTICE OF THE AVAILABILITY OF
PROJECT APPLICATIONS AND DEADLINES FOR SUBMISSION OF PROJECT APPLICA-
TIONS TO THE COMMISSIONER AND SHALL EVALUATE PROJECT APPLICATIONS BASED
UPON THE FOLLOWING CRITERIA:
1. THE EXTENT TO WHICH THE PROJECT DEVELOPS MANUFACTURING FACILITIES,
OR PURCHASES EQUIPMENT FOR MANUFACTURING FACILITIES, LOCATED IN NEW
YORK.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09094-01-1
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2. THE EXTENT TO WHICH THE ANTICIPATED BENEFIT TO THE STATE FROM THE
PROJECT EQUALS OR EXCEEDS THE PROJECTED BENEFIT TO THE PARTICIPATING
PARTY FROM THE SALES AND USE TAX EXCLUSION.
3. THE EXTENT TO WHICH THE PROJECT WILL CREATE NEW, PERMANENT JOBS IN
NEW YORK.
4. TO THE EXTENT FEASIBLE, THE EXTENT TO WHICH THE PROJECT, OR THE
PRODUCT PRODUCED BY THE PROJECT, RESULTS IN A REDUCTION OF GREENHOUSE
GASES, A REDUCTION IN AIR OR WATER POLLUTION, AN INCREASE IN ENERGY
EFFICIENCY, OR A REDUCTION IN ENERGY CONSUMPTION, BEYOND WHAT IS
REQUIRED BY ANY FEDERAL OR STATE LAW OR REGULATION.
5. THE EXTENT OF UNEMPLOYMENT IN THE AREA IN WHICH THE PROJECT IS
PROPOSED TO BE LOCATED.
6. ANY OTHER FACTORS THE AUTHORITY DEEMS APPROPRIATE IN ACCORDANCE
WITH THIS SECTION.
(D) THE COMMISSIONER'S OFFICE SHALL BE PERMITTED TO EXEMPT A TOTAL NOT
TO EXCEED ONE HUNDRED MILLION DOLLARS IN SALES TAX THROUGH THIS APPLICA-
TION PROCESS TO INDIVIDUAL PROJECTS. APPLICATIONS MEETING THE CRITERIA
OUTLINED IN SUBDIVISION (C) OF THIS SECTION SHALL BE GIVEN PRIORITY AND
THE CREDIT SHALL BE EXTENDED TO AS MANY ELIGIBLE BUSINESSES AS POSSIBLE
UP TO THE ONE HUNDRED MILLION DOLLAR CEILING.
(E) UPON APPROVAL OF AN ELIGIBLE PROJECT THE COMMISSIONER SHALL
PROVIDE ELIGIBLE GREEN TECHNOLOGY COMPANIES WITH AN APPROVAL FORM TO BE
SUPPLIED TO THE SELLER AT THE POINT OF PURCHASE.
1. SAID FORM MUST BE GIVEN TO THE SELLER FROM THE PURCHASER WITH ALL
ENTRIES COMPLETED NO LATER THAN NINETY DAYS AFTER DELIVERY OF THE
PURCHASED PROPERTY, OR THE SALE WILL BE DEEMED TO HAVE BEEN TAXABLE AT
THE TIME OF THE TRANSACTION.
2. IF THE SELLER RECEIVES THE CERTIFICATE AFTER THE NINETY DAY PERIOD,
BOTH THE SELLER AND THE PURCHASER ASSUME THE BURDEN OF PROVING THE SALE
WAS EXEMPT, AND ADDITIONAL SUBSTANTIATION MAY BE REQUIRED.
(F) THE COMMISSIONER IN CONJUNCTION WITH THE DEPARTMENT OF ECONOMIC
DEVELOPMENT AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL
REPORT TO THE LEGISLATURE AND THE GOVERNOR ON THE EFFECTIVENESS OF THIS
PROGRAM, WITHIN ONE YEAR OF THE PROGRAM'S TERMINATION DATE, BY EVALUAT-
ING FACTORS, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING:
1. THE NUMBER OF JOBS CREATED BY THE PROGRAM IN NEW YORK.
2. THE NUMBER OF BUSINESSES THAT HAVE REMAINED IN NEW YORK OR RELO-
CATED TO NEW YORK AS A RESULT OF THIS PROGRAM.
3. THE AMOUNT OF STATE AND LOCAL REVENUE AND ECONOMIC ACTIVITY GENER-
ATED BY THE PROGRAM.
4. THE AMOUNT OF REDUCTION IN GREENHOUSE GASES, AIR POLLUTION, WATER
POLLUTION, OR ENERGY CONSUMPTION.
(G) THE COMMISSIONER SHALL ADOPT ANY REGULATIONS NECESSARY FOR
PURPOSES OF IMPLEMENTING THIS SECTION.
(H) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
1. "ELIGIBLE COMPANY" SHALL MEAN A COMPANY THAT IS A RESIDENT OF NEW
YORK STATE AND ENGAGES IN A BUSINESS OR TRADE IN THE GREEN TECHNOLOGY
INDUSTRY;
2. "ELIGIBLE PROJECT" SHALL MEAN NECESSARY MANUFACTURING EQUIPMENT
PURCHASED TO BE USED IN CARRYING ON A GREEN TECHNOLOGY TRADE OR BUSI-
NESS;
3. "GREEN TECHNOLOGY" INCLUDES BUT SHALL NOT BE LIMITED TO TECHNOLOGY
THAT PROMOTES SUSTAINABILITY BY MEETING THE NEEDS OF SOCIETY IN WAYS
THAT CAN CONTINUE INDEFINITELY INTO THE FUTURE WITHOUT DAMAGING OR
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DEPLETING NATURAL RESOURCES AND HAS THE SMALLEST IMPACT ON THE ENVIRON-
MENT. SUCH TECHNOLOGY:
(I) CREATES PRODUCTS THAT CAN BE FULLY RECLAIMED OR RE-USED.
(II) REDUCES WASTE AND POLLUTION BY CHANGING PATTERNS OF PRODUCTION
AND CONSUMPTION.
(III) DEVELOPS ALTERNATIVES TO TECHNOLOGIES, WHETHER FOSSIL FUEL OR
CHEMICAL INTENSIVE AGRICULTURE, THAT HAVE BEEN DEMONSTRATED TO DAMAGE
HEALTH AND THE ENVIRONMENT.
(IV) REDUCES GREENHOUSE GAS EMISSIONS.
(V) REDUCES ENERGY CONSUMPTION.
(VI) ADVANCES TRANSPORTATION TECHNOLOGIES THAT PROMOTE EFFICIENCY
WHILE REDUCING ENERGY CONSUMPTION.
S 2. This act shall take effect immediately and shall expire one year
after such effective date when upon such date the provisions of this act
shall be deemed repealed.