EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09568-02-1
A. 8167 2
article 19, and title 1 of article 27 of this chapter; of the Public
Health Law; of the state sanitary code and of codes, rules, regulations,
permits or orders issued pursuant thereto.
S 4. Paragraphs 1 and 2 and clauses (i) and (ii) of subparagraph (A)
of paragraph 4 of subdivision (j) of section 14 of the tax law, para-
graphs 1 and 2 as amended by section 10 of part CC of chapter 85 of the
laws of 2002 and clauses (i) and (ii) of subparagraph (A) of paragraph 4
as added by section 5 of part A of chapter 63 of the laws of 2005, are
amended to read as follows:
(1) A new business shall include any corporation, except a corporation
which is substantially similar in operation and in ownership to a busi-
ness entity (or entities) taxable, or previously taxable, under section
one hundred eighty-three, one hundred eighty-four[,] OR one hundred
eighty-five [or one hundred eighty-six] of article nine[; article
nine-A], article thirty-two or thirty-three of this chapter; article
twenty-three of this chapter or which would have been subject to tax
under such article twenty-three (as such article was in effect on Janu-
ary first, nineteen hundred eighty) or the income (or losses) of which
is (or was) includable under article twenty-two of this chapter.
(2) For purposes of article twenty-two of this chapter, an individual
who is either a sole proprietor or a member of a partnership shall qual-
ify as an owner of a new business unless the business of which the indi-
vidual is an owner is substantially similar in operation and in owner-
ship to a business entity taxable, or previously taxable, under section
one hundred eighty-three, one hundred eighty-four[,] OR one hundred
eighty-five [or one hundred eighty-six] of article nine[; article
nine-A], thirty-two or thirty-three of this chapter; article twenty-
three of this chapter or which would have been subject to tax under such
article twenty-three (as such article was in effect on January first,
nineteen hundred eighty) or the income (or losses) of which is (or was)
includable under article twenty-two.
(i) Notwithstanding paragraphs one and two of this subdivision, a new
business shall include any corporation which is identical in operation
and ownership to a business entity (or entities) taxable under section
one hundred eighty-three[,] OR one hundred eighty-four or [one hundred
eighty-five] of article nine[; article nine-A], article thirty-two or
thirty-three of this chapter or the income (or losses) of which is
includable under article twenty-two of this chapter, provided such
corporation and such business entity or entities are operating in
different counties in the state.
(ii) Notwithstanding paragraphs one and two of this subdivision, an
individual who is either a sole proprietor or a member of a partnership
shall qualify as an owner of a new business if the business of which the
individual is an owner is identical in operation and in ownership to a
business entity (or entities) taxable under section one hundred eighty-
three[,] OR one hundred eighty-four [or one hundred eighty-five] of
article nine[; article nine-A], article thirty-two or thirty-three of
this chapter or the income (or losses) of which is includable under
article twenty-two of this chapter, provided such business and such
business entity or entities are operating in different counties in the
state.
S 5. Paragraphs 1 and 3 of subdivision (a) of section 28 of the tax
law, paragraph 1 as amended by chapter 440 of the laws of 2006 and para-
graph 3 as added by section 2 of part V of chapter 62 of the laws of
2006, are amended to read as follows:
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(1) A taxpayer which is a qualified commercial production company, or
which is a sole proprietor of a qualified commercial production company,
and which 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] PROVISION referenced in subdivision [(d)] (C) of this
section, to be computed as provided in this section. Provided, however,
to be eligible for such credit, at least seventy-five percent of the
production costs (excluding post production costs) paid or incurred
directly and predominantly in the actual filming or recording of the
qualified commercial must be costs incurred in New York state.
(3) No qualified production costs used by a taxpayer either as the
basis for the allowance of the credit provided for under this section or
used in the calculation of the credit provided for under this section
shall be used by such taxpayer to claim any other credit allowed pursu-
ant to this chapter.
Notwithstanding any provisions of this section to the contrary, a
corporation or partnership, which otherwise qualifies as a qualified
commercial production company, and is similar in operation and in owner-
ship to a business entity or entities taxable, or previously taxable,
under section one hundred eighty-three[,] OR one hundred eighty-four [or
one hundred eighty-five] of article nine[; article nine-A], article
thirty-two or thirty-three of this chapter or which would have been
subject to tax under article twenty-three of this chapter (as such arti-
cle was in effect on January first, nineteen hundred eighty) or the
income or losses of which is or was includable under article twenty-two
of this chapter shall not be deemed a new or separate business, and
therefore shall not be eligible for empire state commercial production
benefits, if it was not formed for a valid business purpose[, as such
term is defined in clause (D) of subparagraph one of paragraph (o) of
subdivision nine of section two hundred eight of this chapter] and was
formed solely to gain empire state commercial production credit bene-
fits.
S 6. Clause (i) of subparagraph (A) of paragraph 6 of subdivision (a)
of section 292 of the tax law, as added by section 15 of part M of chap-
ter 686 of the laws of 2003, is amended to read as follows:
(i) Related member or members. For purposes of this paragraph, the
term related member or members means a person, corporation, or other
entity, including an entity that is treated as a partnership or other
pass-through vehicle for purposes of federal taxation, whether such
person, corporation or entity is a taxpayer or not, where one such
person, corporation, or entity, or set of related persons, corporations
or entities, directly or indirectly owns or controls a controlling
interest in another entity. Such entity or entities may include all
taxpayers under article nine, [nine-A,] thirteen, twenty-two, thirty-
two, thirty-three or thirty-three-A of this chapter.
S 7. Subparagraph (A) of paragraph 10 of subsection (a), subclause
(II) of clause (i) and clause (ii) of subparagraph (D) of paragraph 5
and subparagraph (C) of paragraph 9 of subsection (n) of section 606 of
the tax law, subparagraph (A) of paragraph 10 of subsection (a) as
amended by section 3 of part CC of chapter 85 of the laws of 2002,
subclause (II) of clause (i) and clause (ii) of subparagraph (D) of
paragraph 5 as added by chapter 309 of the laws of 1996 and subparagraph
(C) of paragraph 9 as added by section 3 of part K of chapter 62 of the
laws of 2006, are amended to read as follows:
(A) the business of which the individual is an owner is substantially
similar in operation and in ownership to a business entity taxable, or
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previously taxable, under section one hundred eighty-three, one hundred
eighty-four[,] OR one hundred eighty-five [or one hundred eighty-six] of
article nine[; article nine-A], thirty-two or thirty-three of this chap-
ter; article twenty-three of this chapter or which would have been
subject to tax under such article twenty-three (as such article was in
effect on January first, nineteen hundred eighty) or the income (or
losses) of which is (or was) includable under article twenty-two of this
chapter whereby the intent and purpose of this paragraph and paragraph
five of this subsection with respect to refunding of credit to new busi-
ness would be evaded; or
(II) a corporation subject to tax [under article nine-A of this chap-
ter,] where more than fifty percent in value of the outstanding stock of
the corporation is owned, directly or indirectly, by or for the taxpay-
er, or, where the taxpayer is a trust, where such stock is owned direct-
ly or indirectly by or for the grantor of such trust;
(ii) For purposes of subparagraph (C) of this paragraph, where the
taxpayer is an estate or trust, the term "related person" shall also
mean a corporation subject to tax [under article nine-A of this chap-
ter], a partnership, an estate or trust:
(C) Eligible corporation. The term "eligible corporation" means a
corporation subject to tax [under article nine-A of this chapter] which
is a New York C corporation for federal income tax purposes.
S 8. Subsection (a) of section 660 of the tax law, as amended by
section 50 of part A of chapter 389 of the laws of 1997, is amended to
read as follows:
(a) Election. If a corporation is an eligible S corporation, the
shareholders of the corporation may elect in the manner set forth in
subsection (b) of this section to take into account, to the extent
provided for in this article (or in article thirteen of this chapter, in
the case of a shareholder which is a taxpayer under such article), the S
corporation items of income, loss, deduction and reductions for taxes
described in paragraphs two and three of subsection (f) of section thir-
teen hundred sixty-six of the internal revenue code which are taken into
account for federal income tax purposes for the taxable year. No
election under this subsection shall be effective unless all sharehold-
ers of the corporation have so elected. An eligible S corporation is (i)
an S corporation which is subject to tax under article [nine-A or] thir-
ty-two of this chapter, (ii) an S corporation which is the parent of a
qualified subchapter S subsidiary subject to tax [under article nine-A,]
where the shareholders of such parent corporation are entitled to make
the election under this subsection [by reason of subparagraph three of
paragraph (k) of subdivision nine of section two hundred eight of this
chapter]; or (iii) an S corporation which is the parent of a qualified
subchapter S corporation subject to tax under article thirty-two, where
the shareholders of such parent are entitled to make the election under
this subsection by reason of paragraph three of subsection (o) of
section fourteen hundred fifty-three of this chapter.
S 9. Subparagraph (C) of paragraph 1, paragraphs 3, 4 and 8 of
subsection (c) and subsection (d) of section 1083 of the tax law,
subparagraph (C) of paragraph 1 and paragraph 3 of subsection (c) and
subsection (d) as amended by chapter 817 of the laws of 1987, paragraph
4 of subsection (c) as amended by chapter 548 of the laws of 1981 and
paragraph 8 of subsection (c) as amended by chapter 365 of the laws of
1979, are amended to read as follows:
(C) in the case of the tax imposed under article [nine-a, nine-b or
nine-c] NINE-B OR NINE-C, the taxpayer fails to file a report or amended
A. 8167 5
return required under [subdivision three of section two hundred eleven
or section two hundred nineteen-bb or two hundred nineteen-zz,] in
respect of an increase or decrease in federal taxable income or federal
alternative minimum taxable income or federal tax, or in respect of a
change or correction or renegotiation, or computation or recomputation
of tax, which is treated in the same manner as if it were a deficiency
for federal income tax purposes, or
(3) Report of changed or corrected federal income.---In [the case of
the tax imposed under article nine-a, nine-b or nine-c, if the taxpayer
files a report or amended return required under subdivision three of
section two hundred eleven or section two hundred nineteen-bb or two
hundred nineteen-zz, in] respect of an increase or decrease in federal
taxable income or federal alternative minimum taxable income or federal
tax, or in respect of a change or correction or renegotiation, or compu-
tation or recomputation of tax, which is treated in the same manner as
if it were a deficiency for federal income tax purposes, the assessment
(if not deemed to have been made upon the filing of the report or
amended return) may be made at any time within two years after such
report or amended return was filed. The amount of such assessment of tax
shall not exceed the amount of the increase in New York tax attributable
to such federal change or correction or renegotiation, or computation or
recomputation of tax. The provisions of this paragraph shall not affect
the time within which or the amount for which an assessment may other-
wise be made.
(4) Deficiency attributable to carryback.---If a deficiency of tax
[under article nine-a] is attributable to the application to the taxpay-
er of a net operating loss carryback or a capital loss carryback, it may
be assessed at any time that a deficiency for the taxable year of the
loss may be assessed.
(8) Report concerning waste treatment facility, air pollution control
facility or eligible business facility. [Under the circumstances
described in subparagraph (3) of paragraph (g) of subdivision nine of
section two hundred eight, paragraph (f) of subdivision eleven of
section two hundred ten or paragraph (f) of subdivision eleven of
section two hundred nineteen-q of this chapter, the] THE tax may be
assessed within three years after the filing of the report containing
the information required [by such paragraph], or, if a certificate of
compliance in respect to an air pollution control facility shall be
revoked, within three years after the [tax commission] COMMISSIONER
shall receive notice of such revocation from the taxpayer or as required
by subdivision three of section 19-0309 of the environmental conserva-
tion law, whichever notice is received earlier.
(d) Omission of income on return.--- The tax may be assessed at any
time within six years after the return was filed if (i) a taxpayer omits
from gross income required to be reported on a return under article
nine, [nine-a, nine-b or nine-c] NINE-B OR NINE-C an amount properly
includible therein which is in excess of twenty-five percent of the
amount of gross income stated in the return or, (ii) a taxpayer omits
from the sum of its items of tax preference and its adjustment required
in the computation of minimum taxable income an amount properly includi-
ble therein which is in excess of twenty-five percent of such sum as
stated in the return.
For purposes of this subsection---
(1) the term gross income means gross income for federal income tax
purposes as reportable on a return under article nine-a, and "gross
earnings", "gross income", "gross operating income" and "gross direct
A. 8167 6
premiums less return premiums", as those terms are used in article nine,
[nine-b or nine-c] NINE-B OR NINE-C, whichever is applicable;
(2) there shall not be taken into account any amount which is omitted
in the return if such amount is disclosed in the return, or in a state-
ment attached to the return, in a manner adequate to apprise the tax
commission of the nature and amount of such item.
S 10. Subsections (e) and (f) of section 1450 of the tax law,
subsection (e) as added by chapter 298 of the laws of 1985 and
subsection (f) as added by section 67 of part A of chapter 389 of the
laws of 1997, are amended to read as follows:
(e) The term "subsidiary capital" means investments in the stock of
subsidiaries and any indebtedness from subsidiaries, exclusive of
accounts receivable acquired in the ordinary course of trade or business
for services rendered or for sales of property held primarily for sale
to customers, whether or not evidenced by written instrument, on which
interest is not claimed and deducted by the subsidiary for purposes of
taxation under article [nine-A,] thirty-two or thirty-three of this
chapter, provided, however, there shall be deducted from subsidiary
capital any liabilities payable by their terms on demand or within one
year from the date incurred, other than loans or advances outstanding
for more than a year as of any date during the year covered by the
return, which are attributable to subsidiary capital.
(f) [The terms "New York S corporation", "New York S year", "New York
S election", "New York C corporation", "New York C year", "termination
year", "S short year", "C short year", and "New York S termination year"
shall have the same meaning as those terms have under subdivision one-A
of section two hundred eight of this chapter, except that references in
such subdivision to article nine-A of this chapter shall be read as
references to this article] THE TERM "NEW YORK S CORPORATION" MEANS,
WITH RESPECT TO ANY TAXABLE YEAR, A CORPORATION SUBJECT TO TAX UNDER
THIS ARTICLE FOR WHICH AN ELECTION IS IN EFFECT PURSUANT TO SUBSECTION
(A) OF SECTION SIX HUNDRED SIXTY OF THIS CHAPTER FOR SUCH YEAR, ANY SUCH
YEAR SHALL BE DENOMINATED A "NEW YORK S YEAR", AND SUCH ELECTION SHALL
BE DENOMINATED A "NEW YORK S ELECTION". THE TERM "NEW YORK C CORPO-
RATION" MEANS, WITH RESPECT TO ANY TAXABLE YEAR, A CORPORATION SUBJECT
TO TAX UNDER THIS ARTICLE WHICH IS NOT A NEW YORK S CORPORATION, AND ANY
SUCH YEAR SHALL BE DENOMINATED A "NEW YORK C YEAR". THE TERM "TERMI-
NATION YEAR" MEANS ANY TAXABLE YEAR OF A CORPORATION DURING WHICH THE
NEW YORK S ELECTION TERMINATES ON A DAY OTHER THAN THE FIRST DAY OF SUCH
YEAR. THE PORTION OF THE TAXABLE YEAR ENDING BEFORE THE FIRST DAY FOR
WHICH SUCH TERMINATION IS EFFECTIVE SHALL BE DENOMINATED THE "S SHORT
YEAR", AND THE PORTION OF SUCH YEAR BEGINNING ON SUCH FIRST DAY SHALL BE
DENOMINATED THE "C SHORT YEAR". THE TERM "NEW YORK S TERMINATION YEAR"
MEANS ANY TERMINATION YEAR WHICH IS NOT ALSO AN S TERMINATION YEAR FOR
FEDERAL PURPOSES.
S 11. Subdivision (f) of section 1518 of the tax law, as added by
chapter 228 of the laws of 2002, is amended to read as follows:
(f) Notwithstanding the provisions of subdivision (a) of this section,
in the case where a taxpayer which is an attorney-in-fact has claimed a
deduction [pursuant to subparagraph fifteen of paragraph (a) of subdivi-
sion nine of section two hundred eight of this chapter,] the commission-
er shall have the authority to release to such attorney-in-fact any
information with respect to the entire net income or income allocation
percentage of the interinsurer or reciprocal insurer, or any member of a
combined group that includes the interinsurer or reciprocal insurer,
A. 8167 7
which is the basis for the denial in whole or in part of the deduction
claimed by such attorney-in-fact.
S 12. Subdivision 2 of section 197 of the tax law, as amended by chap-
ter 190 of the laws of 1990, is amended to read as follows:
2. Where an application for consent to dissolution, as provided by
section one thousand four of the business corporation law, is filed with
the commissioner of taxation and finance, such consent shall be given
only if the commissioner of taxation and finance ascertains that all
fees and taxes imposed under this chapter or any related statute, as
defined in section eighteen hundred of this chapter, as well as penal-
ties and interest charges related thereto, accrued against the corpo-
ration have been paid, and where such application for consent to dissol-
ution is filed with such commissioner prior to the commencement of any
tax year or period, by a corporation subject to tax under [articles]
ARTICLE nine [or nine-a] of this chapter, such corporation shall not be
liable for any tax imposed by said [articles] ARTICLE for such following
year or period (except as may be otherwise provided in section one
hundred ninety-one, subdivision nine of section one hundred eighty-
two[,] AND subdivision nine of section one hundred eighty-two-a[, subdi-
vision nine of section one hundred eighty-two-b and subdivision three of
section two hundred nine] of this chapter), provided that the certif-
icate of dissolution for such corporation is duly filed in the office of
the secretary of state within ninety days after the commencement of such
tax year or period and such corporation does not conduct business in
such tax year or period.
S 13. Intentionally omitted.
S 14. Subdivision 1 of section 171-A of the tax law, as amended by
section 1 of part R of chapter 60 of the laws of 2004, is amended to
read as follows:
1. All taxes, interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise provided in section two hundred five thereof), [nine-A,]
twelve-A (except as otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise provided in
section three hundred twelve thereof), eighteen, nineteen, twenty
(except as otherwise provided in section four hundred eighty-two there-
of), twenty-one, twenty-two, twenty-six, twenty-six-B, twenty-eight
(except as otherwise provided in section eleven hundred two or eleven
hundred three thereof), twenty-eight-A, thirty-one (except as otherwise
provided in section fourteen hundred twenty-one thereof), thirty-two,
thirty-three and thirty-three-A of this chapter shall be deposited daily
in one account with such responsible banks, banking houses or trust
companies as may be designated by the comptroller, to the credit of the
comptroller. Such an account may be established in one or more of such
depositories. Such deposits shall be kept separate and apart from all
other money in the possession of the comptroller. The comptroller shall
require adequate security from all such depositories. Of the total
revenue collected or received under such articles of this chapter, the
comptroller shall retain in the comptroller's hands such amount as the
commissioner may determine to be necessary for refunds or reimbursements
under such articles of this chapter and article ten thereof out of which
amount the comptroller shall pay any refunds or reimbursements to which
taxpayers shall be entitled under the provisions of such articles of
this chapter and article ten thereof. The commissioner and the comp-
troller shall maintain a system of accounts showing the amount of reven-
A. 8167 8
ue collected or received from each of the taxes imposed by such arti-
cles. The comptroller, after reserving the amount to pay such refunds or
reimbursements, shall, on or before the tenth day of each month, pay
into the state treasury to the credit of the general fund all revenue
deposited under this section during the preceding calendar month and
remaining to the comptroller's credit on the last day of such preceding
month, (i) except that the comptroller shall pay to the state department
of social services that amount of overpayments of tax imposed by article
twenty-two of this chapter and the interest on such amount which is
certified to the comptroller by the commissioner as the amount to be
credited against past-due support pursuant to subdivision six of section
one hundred seventy-one-c of this chapter, (ii) and except that the
comptroller shall pay to the New York state higher education services
corporation and the state university of New York or the city university
of New York respectively that amount of overpayments of tax imposed by
article twenty-two of this chapter and the interest on such amount which
is certified to the comptroller by the commissioner as the amount to be
credited against the amount of defaults in repayment of guaranteed
student loans and state university loans or city university loans pursu-
ant to subdivision five of section one hundred seventy-one-d and subdi-
vision six of section one hundred seventy-one-e of this chapter, (iii)
and except further that, notwithstanding any law, the comptroller shall
credit to the revenue arrearage account, pursuant to section
ninety-one-a of the state finance law, that amount of overpayment of tax
imposed by article nine, [nine-A,] twenty-two, thirty, thirty-A, thir-
ty-B, thirty-two or thirty-three of this chapter, and any interest ther-
eon, which is certified to the comptroller by the commissioner as the
amount to be credited against a past-due legally enforceable debt owed
to a state agency pursuant to paragraph (a) of subdivision six of
section one hundred seventy-one-f of this article, provided, however, he
shall credit to the special offset fiduciary account, pursuant to
section ninety-one-c of the state finance law, any such amount credita-
ble as a liability as set forth in paragraph (b) of subdivision six of
section one hundred seventy-one-f of this article, (iv) and except
further that the comptroller shall pay to the city of New York that
amount of overpayment of tax imposed by article nine, [nine-A,] twenty-
two, thirty, thirty-A, thirty-B, thirty-two, or thirty-three of this
chapter and any interest thereon that is certified to the comptroller by
the commissioner as the amount to be credited against city of New York
tax warrant judgment debt pursuant to section one hundred seventy-one-l
of this article, (v) and except further that the comptroller shall pay
to a non-obligated spouse that amount of overpayment of tax imposed by
article twenty-two of this chapter and the interest on such amount which
has been credited pursuant to section one hundred seventy-one-c, one
hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-
one-f or one hundred seventy-one-l of this article and which is certi-
fied to the comptroller by the commissioner as the amount due such non-
obligated spouse pursuant to paragraph six of subsection (b) of section
six hundred fifty-one of this chapter; and (vi) the comptroller shall
deduct a like amount which the comptroller shall pay into the treasury
to the credit of the general fund from amounts subsequently payable to
the department of social services, the state university of New York, the
city university of New York, or the higher education services corpo-
ration, or the revenue arrearage account or special offset fiduciary
account pursuant to section ninety-one-a or ninety-one-c of the state
finance law, as the case may be, whichever had been credited the amount
A. 8167 9
originally withheld from such overpayment, and (vii) with respect to
amounts originally withheld from such overpayment pursuant to section
one hundred seventy-one-l of this article and paid to the city of New
York, the comptroller shall collect a like amount from the city of New
York.
S 15. Subdivisions 2 and 2-a of section 97-yy of the state finance
law, as amended by chapter 385 of the laws of 2007, are amended to read
as follows:
2. Such fund shall consist of all revenues received by the department
of taxation and finance, pursuant to the provisions of section [two
hundred nine-D and section] six hundred twenty-seven of the tax law, all
moneys collected pursuant to section four hundred four-q of the vehicle
and traffic law, as added by chapter five hundred twenty-eight of the
laws of nineteen hundred ninety-nine, and all other moneys appropriated,
credited, or transferred thereto from any other fund or source pursuant
to law. For each state fiscal year, there shall be appropriated to the
fund by the state, in addition to all other moneys required to be depos-
ited into such fund, an amount equal to the amounts of monies collected
and deposited into the fund pursuant to [sections two hundred nine-D
and] SECTION six hundred twenty-seven of the tax law and section four
hundred four-q of the vehicle and traffic law, as added by chapter five
hundred twenty-eight of the laws of nineteen hundred ninety-nine, and
the amounts of moneys received and deposited into the fund from grants,
gifts and bequests during the preceding calendar year, as certified by
the comptroller. Nothing contained herein shall prevent the state from
receiving grants, gifts or bequests for the purposes of the fund as
defined in this section and depositing them into the fund according to
law.
2-a. On or before the first day of February each year, the comptroller
shall certify to the governor, temporary president of the senate, speak-
er of the assembly, chair of the senate finance committee and chair of
the assembly ways and means committee, the amount of money deposited in
the breast cancer research and education fund during the preceding
calendar year as the result of revenue derived pursuant to [sections two
hundred nine-D and] SECTION six hundred twenty-seven of the tax law and
section four hundred four-q of the vehicle and traffic law, as added by
chapter five hundred twenty-eight of the laws of nineteen hundred nine-
ty-nine, and from grants, gifts and bequests.
S 16. Subdivisions 2 and 4 of section 95-e of the state finance law,
subdivision 2 as amended by section 1 of part A of chapter 58 of the
laws of 2004 and subdivision 4 as added by chapter 273 of the laws of
2004, are amended to read as follows:
2. Such fund shall consist of all revenues received pursuant to the
provisions of [sections two hundred nine-E and] SECTION six hundred
thirty of the tax law, all revenues received pursuant to appropriations
by the legislature, and all moneys appropriated, credited, or trans-
ferred thereto from any other fund or source pursuant to law. For each
state fiscal year, there shall be appropriated to the fund by the state,
in addition to all other moneys required to be deposited into such fund,
an amount equal to the amounts of monies collected and deposited into
the fund pursuant to [sections two hundred nine-e and] SECTION six
hundred thirty of the tax law during the preceding calendar year, as
certified by the comptroller. Nothing contained herein shall prevent the
state from receiving grants, gifts or bequests for the purposes of the
fund as defined in this section and depositing them into the fund
A. 8167 10
according to law. Any interest received by the comptroller on moneys on
deposit in such fund shall be retained in and become part of such fund.
4. On or before the first day of February each year, the comptroller
shall certify to the governor, temporary president of the senate, speak-
er of the assembly, chair of the senate finance committee and chair of
the assembly ways and means committee, the amount of money deposited by
source in the New York state prostate cancer research, detection and
education fund during the preceding calendar year as the result of
revenue derived pursuant to [sections two hundred nine-E and] SECTION
six hundred thirty of the tax law and from all other sources.
S 17. Subdivision 2 of section 79 of the state finance law, as added
by chapter 753 of the laws of 2005, is amended to read as follows:
2. Such fund shall consist of all revenues received by the department
of taxation and finance pursuant to the provisions of [sections two
hundred nine-F and] SECTION six hundred thirty-a of the tax law and all
other money appropriated, credited, or transferred thereto from any
other fund or source pursuant to law. Nothing contained herein shall
prevent the state from receiving grants, gifts or bequests for the
purposes of the fund as defined in this section and depositing them into
the fund according to law.
S 18. Subdivision 2 of section 99-q of the state finance law, as added
by chapter 490 of the laws of 2009, is amended to read as follows:
2. Such fund shall consist of all revenues received by the department
of taxation and finance, pursuant to the provisions of [sections two
hundred nine-G and] SECTION six hundred thirty-b of the tax law and all
other moneys appropriated, credited, or transferred thereto from any
other fund or source pursuant to law. Nothing contained in this section
shall prevent the state from receiving grants, gifts or bequests for the
purposes of the fund as defined in this section and depositing them into
the fund according to law. Any interest received by the comptroller on
moneys on deposit in such fund shall be retained in and become part of
such fund.
S 19. Paragraph 21 of subdivision (b), paragraph 21 of subdivision
(c), paragraph 1 and subparagraph (A) of paragraph 2 of subdivision (n),
clauses (ii) and (iv) and subclause 2 of clause (v) of subparagraph (B)
of paragraph 1 of subdivision (o), and subdivision (p) of section
11-1712 of the administrative code of the city of New York, paragraph 21
of subdivision (b) as amended by section 62, paragraph 21 of subdivision
(c) as amended by section 63 and paragraph 1 and subparagraph (A) of
paragraph 2 of subdivision (n) as amended by section 64 of part A of
chapter 389 of the laws of 1997, clause (ii) of subparagraph (B) of
paragraph 1 of subdivision (o) and subdivision (p) as added by chapter
333 of the laws of 1987 and subdivision (o) as relettered by chapter 639
of the laws of 1986, are amended to read as follows:
(21) In relation to the disposition of stock or indebtedness of a
corporation which elected under subchapter s of chapter one of the
internal revenue code for any taxable year of such corporation begin-
ning, [in the case of a corporation taxable under article nine-A of the
tax law,] after December thirty-first, nineteen hundred eighty, and in
the case of a corporation taxable under article thirty-two of the tax
law, after December thirty-first, nineteen hundred ninety-six, the
amount required to be added to federal adjusted gross income pursuant to
subdivision (n) of this section.
(21) In relation to the disposition of stock or indebtedness of a
corporation which elected under subchapter s of chapter one of the
internal revenue code for any taxable year of such corporation begin-
A. 8167 11
ning, [in the case of a corporation taxable under article nine-A of the
tax law, after December thirty-first, nineteen hundred eighty, and] in
the case of a corporation taxable under article thirty-two of the tax
law, after December thirty-first, nineteen hundred ninety-six, the
amounts required to be subtracted from federal adjusted gross income
pursuant to subdivision (n) of this section.
(1) There shall be added to federal adjusted gross income the amount
of increase in basis with respect to such stock or indebtedness pursuant
to subsection (a) of section thirteen hundred seventy-six of the inter-
nal revenue code as such section was in effect for taxable years begin-
ning before January first, nineteen hundred eighty-three and subpara-
graphs (A) and (B) of paragraph one of subsection (a) of section
thirteen hundred sixty-seven of such code, for each taxable year of the
corporation beginning, in the case of a corporation taxable under [arti-
cle nine-A of] the tax law, after December thirty-first, nineteen
hundred eighty, and in the case of a corporation taxable under article
thirty-two of the tax law, after December thirty-first, nineteen hundred
ninety-six, for which the election provided for in subsection (a) of
section six hundred sixty of the tax law was not in effect, and
(A) the amount of reduction in basis with respect to such stock or
indebtedness pursuant to subsection (b) of section thirteen hundred
seventy-six of the internal revenue code as such section was in effect
for taxable years beginning before January first, nineteen hundred
eighty-three and subparagraphs (B) and (C) of paragraph two of
subsection (a) of section thirteen hundred sixty-seven of such code, for
each taxable year of the corporation beginning, in the case of a corpo-
ration taxable under [article nine-A of] the tax law, after December
thirty-first, nineteen hundred eighty, and in the case of a corporation
taxable under article thirty-two of the tax law, after December thirty-
first, nineteen hundred ninety-six, for which the election provided for
in subsection (a) of section six hundred sixty of the tax law was not in
effect and
(ii) is, at the date of adoption of such plan, subject to taxation
(whether or not any amount is owing) under section one hundred eighty-
three, one hundred eighty-four or one hundred eighty-six of article nine
of the tax law, [or under article nine-a of the tax law] or article
twenty-three of the tax law, or would have been subject to tax under
article twenty-three of such law (as such article was in effect on Janu-
ary first, nineteen hundred eighty) if such article were still in
effect, and the first taxable period for which such new business became
subject to such taxation commenced on or after July first, nineteen
hundred eighty-one and before January first, nineteen hundred eighty-
eight, and such first taxable period includes the date of adoption of
such plan; if not so subject to taxation, the new business must be
subject to taxation under such sections or articles for the first time
within one year from the date of adoption of such plan, and
(iv) within ninety days after adoption of such plan, or, if a return
is required, as part of such return, under such article nine, [article
nine-a] or article twenty-three, whichever is sooner, shall file a new
business certificate with the tax commission attesting to whether it
meets, if subject to taxation under such articles, or intends to meet,
if not so subject, all of the conditions stated in clauses (i), (ii) and
(iii) of this subparagraph within the time set forth therein. Thereaft-
er, during the first four taxable years of such new business, along
with, and as part of, any return required under such articles, such new
business shall make and file a new business certificate for the period
A. 8167 12
covered by such return attesting to whether it has met the conditions
specified in this subparagraph during the taxable period covered by such
return. If no return is required under such articles, such certificate
shall be filed annually on or before the fifteenth day of March which
shall cover the twelve consecutive calendar month period ending on the
last day of December immediately preceding such March fifteenth. If such
new business fails to meet such conditions specified in this subpara-
graph, it shall, in addition, give notice of this fact, within the time
prescribed by the tax commission, to the holders of its "new business
investments." The tax commission shall prescribe the form and content of
such new business certification and may require a new business to file
such certificate for periods (even if no return is filed or required,
but for this section) covering up to eight years from the date of
adoption of such plan, as in its discretion, it deems the same necessary
for the enforcement of this section, and
(2) A new business does not include: (i) any new business of which
twenty-five percent or more of the number of shares of stock that enti-
tle the holders thereof to vote for the election of directors or trus-
tees is owned, directly or indirectly, by a taxpayer subject to tax
under section one hundred eighty-three, one hundred eighty-four[,] OR
one hundred eighty-five [or one hundred eighty-six] of article nine of
the tax law, [or under article nine-a,] thirty-two or thirty-three of
the tax law or (ii) any new business substantially similar in operation
and in ownership, directly or indirectly, to a business entity (or enti-
ties) taxable, or previously taxable, under such section, such article,
article twenty-three of the tax law or which would have been subject to
tax under such article twenty-three (as such article was in effect on
January first, nineteen hundred eighty) or the income (or losses) of
which is (or was) includible under article twenty-two of such tax law
whereby the intent and purpose of this section would be evaded.
(p) New business investment deferral. For taxable years beginning
before January first, nineteen hundred eighty-eight, at the option of
the taxpayer, there may be subtracted from federal adjusted gross income
a reinvested amount of long-term capital gain realized in a taxable year
from the sale of a capital asset, as such term is defined in section
twelve hundred twenty-one of the internal revenue code, which is not a
new business investment. A reinvested amount of long-term capital gain
shall mean an amount which bears the same ratio to the long-term capital
gain realized from the sale of a capital asset which was includible in
New York adjusted gross income as that portion of the sale proceeds
which is reinvested, within one year from date of sale, in a New York
new business bears to the total sale proceeds. For the purposes of this
subdivision, a New York new business is a business enterprise which: (1)
has been a taxpayer under article [nine-A,] twenty-two, thirty-two or
thirty-three of the tax law for no more than three taxable years
(including short taxable years), (2) over fifty percent of the number of
shares of stock that entitle the holders thereof to vote for the
election of directors or trustees is not owned, directly or indirectly,
by a taxpayer subject to tax under section one hundred eighty-three, one
hundred eighty-four[,] OR one hundred eighty-five [or one hundred eight-
y-six] of article nine of the tax law, or under [article nine-A,] thir-
ty-two or thirty-three of the tax law, (3) is not substantially similar
in operation or ownership, directly or indirectly, to a business entity
(or entities) taxable, or previously taxable, under such sections, such
articles, article twenty-three of the tax law or which would have been
subject to tax under article twenty-three (as such article was in effect
A. 8167 13
on January first, nineteen hundred eighty) or the income (or losses) of
which is (or was) includible under article twenty-two of the tax law
whereby the intent and purpose of this subdivision would be evaded, (4)
locates and employs at least ninety percent of its assets in the state,
(5) employs principally in the state eighty percent of its employees
[(as ascertained within the meaning and intent of subparagraph three of
paragraph (a) of subdivision three of section two hundred ten of the tax
law and, in addition, in the case of a partnership, excluding part-
ners)], and (6) derives less than forty percent of its gross income from
dividends, interest, royalties (other than mineral, oil, or gas royal-
ties or copyright royalties), annuities and (7) reports at least twen-
ty-five hundred dollars in gross income in any taxable year. The rein-
vested amount must qualify as a capital asset as defined pursuant to
section twelve hundred twenty-one of the internal revenue code and must
be retained by the taxpayer for at least twelve months. The modification
allowable under this subdivision shall be utilized with respect to the
taxable year in which the twelve month retention period ends.
S 20. Subdivision 2 of section 355 of the economic development law, as
amended by section 4 of part G of chapter 61 of the laws of 2011, is
amended to read as follows:
2. Excelsior investment tax credit component. A participant in the
excelsior jobs program shall be eligible to claim a credit on qualified
investments. The credit shall be equal to two percent of the cost or
other basis for federal income tax purposes of the qualified investment.
A participant may not claim both the excelsior investment tax credit
component and the investment tax credit set forth in [subdivision twelve
of section two hundred ten,] subsection (a) of section six hundred six,
subsection (i) of section fourteen hundred fifty-six, or subdivision (q)
of section fifteen hundred eleven of the tax law for the same property
in any taxable year, except that a participant may claim both the
excelsior investment tax credit component and the investment tax credit
for research and development property. In addition, a taxpayer who or
which is qualified to claim the excelsior investment tax credit compo-
nent and is also qualified to claim the brownfield tangible property
credit component under section twenty-one of the tax law may claim
either the excelsior investment tax credit component or such tangible
property credit component, but not both with regard to a particular
piece of property. A credit may not be claimed until a business enter-
prise has received a certificate of tax credit, provided that qualified
investments made on or after the issuance of the certificate of eligi-
bility but before the issuance of the certificate of tax credit to the
business enterprise, may be claimed in the first taxable year for which
the business enterprise is allowed to claim the credit. Expenses
incurred prior to the date the certificate of eligibility is issued are
not eligible to be included in the calculation of the credit.
S 21. Subdivisions (j), (n), (s) and (t) of section 957 of the general
municipal law, as amended by section 1 of part S-1 of chapter 57 of the
laws of 2009, are amended to read as follows:
(j) "Targeted employee" shall mean a New York resident who receives
empire zone wages [pursuant to subdivision nineteen of section two
hundred ten of the tax law] and who is (i) an eligible individual under
the provision 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
A. 8167 14
by the United States department of commerce, or a member of a family
whose family income is below the most recently established poverty rate
promulgated by the appropriate federal agency.
An individual who satisfies the criteria set forth in clause (i), (ii)
or (iv) of this subdivision at the time of initial employment in the job
with respect to which the credit is claimed, or who satisfies the crite-
rion set forth in clause (iii) of this subdivision 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 empire zone wages.
(n) "Community development projects" shall mean projects sponsored by
not-for-profit organizations which have been approved by the zone board,
which will advance the zone development plan. For purposes described in
[subdivision twenty of section two hundred ten,] subsection (l) of
section six hundred six, subsection (d) of section fourteen hundred
fifty-six and subdivision (h) of section fifteen hundred eleven of the
tax law, such projects shall be limited to child care programs serving
zone residents and businesses; community development projects in direct
support of economic development and business revitalization activities,
such as commercial revitalization projects; and business development
activities of local development corporations.
(s) "Qualified investment project" shall mean a project (i) located
within an empire zone, (ii) at which five hundred or more jobs will be
created, provided such jobs are new to the state and are in addition to
any other jobs previously created by the owner of such project in the
state, and (iii) which will consist of tangible personal property and
other tangible property, including buildings and structural components
of buildings[, described in subparagraphs (i), (ii), (iii), (iv) and
clause (A) or (C) of subparagraph (v) of paragraph (b) of subdivision
twelve-B of section two hundred ten of the tax law,] the basis of which
for federal income tax purposes will equal or exceed seven hundred fifty
million dollars. Provided however, the owner of such project does not
employ more than two hundred persons in the state at the time such
project is commenced.
(t) "Significant capital investment project" shall mean a project (i)
located within an empire zone, (ii) which will be either a newly
constructed facility or a newly constructed addition to or expansion of
a qualified investment project, consisting of tangible personal property
and other tangible property, including buildings and structural compo-
nents of buildings[, described in subparagraphs (i), (ii), (iii), (iv)
and clause (A) or (C) of subparagraph (v) of paragraph (b) of subdivi-
sion twelve-B of section two hundred ten of the tax law,] the basis of
which for federal income tax purposes will equal or exceed seven hundred
fifty million dollars, (iii) which is constructed after the basis for
federal income tax purposes of the property comprising such qualified
investment project equals or exceeds seven hundred fifty million
dollars, and (iv) at which five hundred or more jobs will be created,
provided such jobs are new to the state and are in addition to any other
jobs previously created by the owner of such project in the state.
S 22. Subdivision (c) of section 963 of the general municipal law, as
amended by chapter 624 of the laws of 1990 and as further amended by
section 15 of part GG of chapter 63 of the laws of 2000 and, as relet-
tered by section 7 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
(c) At the request of any local empire zone administrative board, the
department of taxation and finance, the department of economic develop-
ment, the public service commission and any municipal corporation within
A. 8167 15
the empire zone shall, to the extent that it possesses any of the infor-
mation required by subdivision [(c)] (B) of this section, and to the
extent that such information can be disclosed without violating the
secrecy provisions contained in sections two hundred two, [two hundred
eleven,] six hundred ninety-seven, one thousand one hundred forty-six,
one thousand two hundred fifty, one thousand four hundred sixty-seven
and one thousand five hundred eighteen of the tax law, provide that
information to the local empire zone administrative board for inclusion
in its annual report. The amount of any real property taxes required to
be set forth in the report pursuant to subdivision [(c)] (B) of this
section shall be computed and furnished to the zone's administrative
board by the municipality which levied the tax. The failure of any
empire zone administrative board to prepare and submit a report as
required by subdivision [(b)] (A) of this section shall make the board
or other community-based development organization ineligible to receive
any financial support for administrative expenses authorized by para-
graph (vii) of subdivision (b) of this section; provided, however, that
such financial assistance shall not be withheld on account of the
report's failure to include any information which is required by subdi-
vision [(c)] (B) of this section but is not available to the empire zone
administrative board.
S 23. Subdivision (d) of section 964 of the general municipal law, as
amended by chapter 708 of the laws of 1993, is amended to read as
follows:
(d) The total amount of tax credits available to each zone pursuant to
[subdivision twenty of section two hundred ten,] subsection (l) of
section six hundred six, subsection (d) of section fourteen hundred
fifty-six and subdivision (h) of section fifteen hundred eleven of the
tax law, shall be two million five hundred thousand dollars, (provided,
however, that in no event shall the credits available in any zone exceed
five hundred thousand dollars in the case of qualified investments in
certified zone businesses as described in such subdivisions and
subsections). Apportionment of credits within a zone between capital
investments in and contributions to zone capital corporations, direct
investments in certified zone businesses or contributions to community
development projects will be determined and accounted for by the local
zone administrative board in consultation with the zone administrative
entity, subject to regulations promulgated by the commissioner of the
department of economic development. Credits not used by a zone within
four years of their apportionment may, after a public hearing, be real-
located pursuant to regulations promulgated by the commissioner.
Certifications under [subdivision twenty of section two hundred ten,]
subsection (l) of section six hundred six, subsection (d) of section
fourteen HUNDRED fifty-six and subdivision (h) of section fifteen
hundred eleven of the tax law shall be consistent with the provisions of
this subdivision.
S 24. Subdivisions (e) and (f) of section 966 of the general municipal
law, subdivision (e) as amended by chapter 170 of the laws of 1994,
subdivision (f) as amended by chapter 708 of the laws of 1993 and such
subdivisions as further amended by section 15 of part GG of chapter 63
of the laws of 2000, are amended to read as follows:
(e) For credits against the taxes imposed under articles [nine-A,]
twenty-two, thirty-two and thirty-three of the tax law, based on wages
paid to certain employees employed by a business located in an empire
zone or in a zone equivalent area, see [subdivision nineteen of section
two hundred ten,] subsection (k) of section six hundred six, subsection
A. 8167 16
(e) of section fourteen hundred fifty-six and subdivision (g) of section
fifteen hundred eleven, respectively, of the tax law;
(f) For credits against the tax imposed under articles [nine-A,] twen-
ty-two, thirty-two and thirty-three of the tax law, based on qualified
investments in or contributions to empire zone capital corporations,
qualified investments in certified zone businesses and contributions to
community development projects, see [subdivision twenty of section two
hundred ten,] subsection (l) of section six hundred six, subsection (d)
of section fourteen hundred fifty-six, and subdivision (h) of section
fifteen hundred eleven of the tax law;
S 24-a. Subdivision (c) of section 966 of the general municipal law is
REPEALED.
S 25. Paragraph 1 of subsection (g) of section 1117 of the insurance
law, as amended by chapter 417 of the laws of 2001, is amended to read
as follows:
(1) Except for certain group contracts described in paragraph four of
this subsection, in order for premium payments for long-term care insur-
ance to qualify for purposes of [section one hundred ninety, subdivision
twenty-five-a of section two hundred ten,] subsection (aa) of section
six hundred six, subsection (k) of section one thousand four hundred
fifty-six and subsection (m) of section one thousand five hundred eleven
of the tax law, the long-term care insurance must be approved by the
superintendent pursuant to this subsection. Prior to approving any such
insurance, the superintendent shall conclude that it meets minimum stan-
dards, including minimum loss ratio standards under this section or
section three thousand two hundred twenty-nine of this chapter and is a
qualified long-term care insurance contract as defined in section 7702B
of the internal revenue code.
S 26. The opening paragraph of paragraph (pp) of subdivision 1 of
section 2807-v of the public health law, as amended by section 8 of part
C of chapter 59 of the laws of 2011, is amended to read as follows:
Funds shall be reserved and accumulated from year to year and shall be
available, including income from invested funds, for the purpose of
supporting the provision of tax credits for long term care insurance
pursuant to subdivision one of section one hundred ninety of the tax
law, [paragraph (a) of subdivision twenty-five-a of section two hundred
ten of such law,] subsection (aa) of section six hundred six of such
law, paragraph one of subsection (k) of section fourteen hundred fifty-
six of such law and paragraph one of subdivision (m) of section fifteen
hundred eleven of such law, in the following amounts:
S 27. Paragraph 1 of subdivision (a), subdivision (f) and paragraph 1
of subdivision (i) of section 14 of the tax law, paragraph 1 of subdivi-
sion (a) as amended by section 3 of part V-1 of chapter 109 of the laws
of 2006, subdivision (f) as amended by section 10 of part CC of chapter
85 of the laws of 2002 and paragraph 1 of subdivision (i) as amended by
section 5 of part A of chapter 63 of the laws of 2005, are amended to
read as follows:
(1) except as provided in paragraphs one-a and one-b of this subdivi-
sion, for purposes of section one hundred eighty-seven-j and articles
[nine-A,] twenty-two, thirty-two and thirty-three of this chapter, for
each of the taxable years within the "business tax benefit period,"
which period shall consist of (A) in the case of a business enterprise
with a test date occurring on or before December thirty-first, two thou-
sand one, the first fifteen taxable years beginning on or after January
first, two thousand one, (B) in the case of a business enterprise with a
test date occurring on or after January first, two thousand two, but
A. 8167 17
prior to April first, two thousand five, the fifteen taxable years next
following the business enterprise's test year, and (C) in the case of a
business enterprise which is first certified under article eighteen-B of
the general municipal law on or after April first, two thousand five,
the ten taxable years starting with the taxable year in which the busi-
ness enterprise's first date of certification under article eighteen-B
of the general municipal law occurs, but only with respect to each of
such business tax benefit period years for which the employment test is
met,
(f) Taxable year. The term "taxable year" means the taxable year of
the business enterprise under section one hundred eighty-three, one
hundred eighty-four, one hundred eighty-five or former section one
hundred eighty-six of article nine, or under article [nine-A,] twenty-
two, thirty-two or thirty-three of this chapter. If a business enter-
prise does not have a taxable year because it is exempt from taxation or
otherwise not required to file a return under any of such sections of
article nine or under article [nine-A,] twenty-two, thirty-two or thir-
ty-three, then the term "taxable year" means (i) the business enter-
prise's federal taxable year, or, (ii) if the enterprise does not have a
federal taxable year, the calendar year.
(1) for purposes of section one hundred eighty-seven-j of article
nine, and articles [nine-A,] twenty-two, thirty-two and thirty-three of
this chapter, on the first day of the taxable year during which revoca-
tion of its certification under article eighteen-B of the general munic-
ipal law occurs, and
S 28. Subdivisions (a) and (d) of section 14-a of the tax law, as
added by section 45 of part Y of chapter 63 of the laws of 2000, are
amended to read as follows:
(a) Allowance of credit. A taxpayer which is an industrial or manufac-
turing business (IMB), or which is a sole proprietor of an IMB or a
member of a partnership which is an IMB, and which 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] PROVISION refer-
enced in subdivision (d) of this section. Such credit shall be equal to
the sum (or pro rata share of the sum, in the case of a member of a
partnership) of the taxes imposed under sections one hundred
eighty-six-a[,] AND one hundred eighty-six-c[, one hundred eighty-nine
and one hundred eighty-nine-a] of this chapter which during the taxable
year were either paid by, or passed through to, the IMB, on or after
January first, two thousand, but only with regard to gas, electricity,
steam, water or refrigeration, or gas, electric, steam, water or refrig-
eration services, consumed or used by the IMB in this state.
(d) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:
[(1) Article 9-A: Section 210.26-a.
(2)] Article 22: Sections 606(i) and (t-1).
S 29. Subdivision (a) of section 15 of the tax law, as amended by
section 5 of part A of chapter 63 of the laws of 2005, is amended to
read as follows:
(a) Allowance of credit. A taxpayer which is a qualified empire zone
enterprise (QEZE), or which is a sole proprietor of a QEZE or a member
of a partnership which is a QEZE, and which is subject to tax under
article [nine-A,] twenty-two, thirty-two or thirty-three of this chap-
ter, shall be allowed a credit against such tax, pursuant to the
provisions referenced in subdivision (h) of this section, for eligible
real property taxes.
A. 8167 18
S 30. Subdivisions (a), (f) and (g) of section 16 of the tax law,
subdivisions (a) and (g) as added by section 2 of part GG of chapter 63
of the laws of 2000, and subdivision (f) as amended by section 14 of
part CC of chapter 85 of the laws of 2002, are amended to read as
follows:
(a) Allowance of credit. A taxpayer which is a qualified empire zone
enterprise (QEZE), or which is a sole proprietor of a QEZE or a member
of a partnership which is a QEZE, and which is subject to tax under
article [nine-A,] twenty-two, thirty-two or thirty-three of this chap-
ter, shall be allowed a credit against such tax, pursuant to the
provisions referenced in subdivision (g) of this section, to be computed
as hereinafter provided.
(f) Tax factor. (1) General. [The tax factor shall be, in the case of
article nine-A of this chapter, the larger of the amounts of tax deter-
mined for the taxable year under paragraphs (a) and (c) of subdivision
one of section two hundred ten of such article.] The tax factor shall
be, in the case of article twenty-two of this chapter, the tax deter-
mined for the taxable year under subsections (a) through (d) of section
six hundred one of such article. The tax factor shall be, in the case of
article thirty-two of this chapter, the larger of the amounts of tax
determined for the taxable year under subsection (a) and paragraph two
of subsection (b) of section fourteen hundred fifty-five of such arti-
cle. The tax factor shall be, in the case of article thirty-three of
this chapter, the larger of the amounts of tax determined for the taxa-
ble year under paragraphs one and three of subdivision (a) of section
fifteen hundred two of such article.
(2) Sole proprietors, partners and S corporation shareholders. (A)
Where the taxpayer is a sole proprietor of a qualified empire zone
enterprise, the taxpayer's tax factor shall be that portion of the
amount determined in paragraph one of this subdivision which is attrib-
utable to the income of the qualified empire zone enterprise. Such
attribution shall be made in accordance with the ratio of the taxpayer's
income from the qualified empire zone enterprise allocated within the
state, entering into New York adjusted gross income, to the taxpayer's
New York adjusted gross income, or in accordance with such other methods
as the commissioner may prescribe as providing an apportionment which
reasonably reflects the portion of the taxpayer's tax attributable to
the income of the qualified empire zone enterprise. In no event may the
ratio so determined exceed 1.0.
(B)(i) Where the taxpayer is a member of a partnership which is a
qualified empire zone enterprise, the taxpayer's tax factor shall be
that portion of the amount determined in paragraph one of this subdivi-
sion which is attributable to the income of the partnership. Such attri-
bution shall be made in accordance with the ratio of the partner's
income from the partnership allocated within the state to the partner's
entire income, or in accordance with such other methods as the commis-
sioner may prescribe as providing an apportionment which reasonably
reflects the portion of the partner's tax attributable to the income of
the partnership. In no event may the ratio so determined exceed 1.0.
(ii) For purposes of article [nine-A,] thirty-two or thirty-three of
this chapter, the term "partner's income from the partnership" means
partnership items of income, gain, loss and deduction, and New York
modifications thereto, entering into entire net income, minimum taxable
income, alternative entire net income or entire net income plus compen-
sation and the term "partner's entire income" means entire net income,
minimum taxable income, alternative entire net income or entire net
A. 8167 19
income plus compensation, allocated within the state. For purposes of
article twenty-two of this chapter, the term "partner's income from the
partnership" means partnership items of income, gain, loss and
deduction, and New York modifications thereto, entering into New York
adjusted gross income, and the term "partner's entire income" means New
York adjusted gross income.
(C) Where the taxpayer is a shareholder of a New York S corporation
which is a qualified empire zone enterprise, the shareholder's tax
factor shall be that portion of the amount determined in paragraph one
of this subdivision which is attributable to the income of the S corpo-
ration. Such attribution shall be made in accordance with the ratio of
the shareholder's income from the S corporation allocated within the
state, entering into New York adjusted gross income, to the sharehold-
er's New York adjusted gross income, or in accordance with such other
methods as the commissioner may prescribe as providing an apportionment
which reasonably reflects the portion of the shareholder's tax attribut-
able to the income of the qualified empire zone enterprise. In no event
may the ratio so determined exceed 1.0.
(3) Combined returns or reports. (A) Where the taxpayer is a qualified
empire zone enterprise and is required or permitted to make a return or
report on a combined basis under article [nine-A,] thirty-two or thir-
ty-three of this chapter, the taxpayer's tax factor shall be the amount
determined in paragraph one of this subdivision which is attributable to
the income of the qualified empire zone enterprise. Such attribution
shall be made in accordance with the ratio of the qualified empire zone
enterprise's income allocated within the state to the combined group's
income, or in accordance with such other methods as the commissioner may
prescribe as providing an apportionment which reasonably reflects the
portion of the combined group's tax attributable to the income of the
qualified empire zone enterprise. In no event may the ratio so deter-
mined exceed 1.0.
(B) The term "income of the qualified empire zone enterprise" means
entire net income, minimum taxable income, alternative entire net income
or entire net income plus compensation calculated as if the taxpayer was
filing separately and the term "combined group's income" means entire
net income, minimum taxable income, alternative entire net income or
entire net income plus compensation as shown on the combined return or
report, allocated within the state.
(4) If the amount determined in paragraph one of this subdivision is
less than zero, a taxpayer shall not be allowed a credit under this
section.
(g) Definitions and cross-references. For definitions of terms used in
this section see sections fourteen and fifteen of this article. For
application of the credit provided for in this section, see the follow-
ing provisions of this chapter:
(1) [Article 9-A: Section 210: subdivision 28.
(2)] Article 22: Section 606: subsections (i) and (cc).
[(3)] (2) Article 32: Section 1456: subsection (p).
[(4)] (3) Article 33: Section 1511: subdivision (s).
S 31. Subdivisions (a) and (d) of section 18 of the tax law, as added
by section 2 of part CC of chapter 63 of the laws of 2000, are amended
to read as follows:
(a) Allowance of credit. A taxpayer subject to tax under [article
nine-A,] twenty-two, thirty-two or thirty-three of this chapter shall be
allowed a credit against such tax, pursuant to the provisions referenced
in subdivision (d) of this section, with respect to the ownership of
A. 8167 20
eligible low-income buildings for which an eligibility statement has
been issued by the commissioner of housing and community renewal. The
amount of the credit shall be the credit amount for each such building
allocated by such commissioner as provided in article two-A of the
public housing law. The credit amount shall be allowed for each of the
ten taxable years in the credit period, and any reduction in first-year
credit as provided in subdivision two of section twenty-two of such law
shall be allowed in the eleventh taxable year.
(d) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:
(1) [Article 9-A: Section 210: subdivision 30,
(2)] Article 22: Section 606: subsections (i) and (x),
[(3)] (2) Article 32: Section 1456: subsection (l),
[(4)] (3) Article 33: Section 1511: subdivision (n).
S 32. Subparagraph (A) of paragraph 1 of subdivision (a) and subdivi-
sion (f) of section 19 of the tax law, as added by section 2 of part II
of chapter 63 of the laws of 2000, are amended to read as follows:
(A) Green building credit. A taxpayer subject to tax under article
nine, [nine-A,] twenty-two, thirty-two or thirty-three of this chapter
shall be allowed a green building credit against such tax, pursuant to
the provisions referenced in subdivision (f) of this section. Provided,
however, no credit shall be allowed under this section unless the
taxpayer has complied with the applicable requirements of paragraph two
of subdivision (d) of this section (relating to reports to DEC). The
amount of the credit shall be the sum of the credit components specified
in paragraphs two through seven of this subdivision. Provided, however,
the amount of each such credit component shall not exceed the limit set
forth in the initial credit component certificate obtained pursuant to
subdivision (c) of this section. In the determination of such credit
components, no cost paid or incurred by the taxpayer shall be the basis
for more than one such component.
(f) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:
(1) Article nine: Section one hundred eighty-seven-d;
(2) [Article nine-A: Subdivision thirty-one of section two hundred
ten;
(3)] Article twenty-two: Subsections (i) and (y) of section six
hundred six;
[(4)] (3) Article thirty-two: Subsection (m) of section fourteen
hundred fifty-six;
[(5)] (4) Article thirty-three: Subdivision (o) of section fifteen
hundred eleven.
S 33. Subdivision (a), paragraph 2 of subdivision (c) and subdivision
(d) of section 20 of the tax law, subdivision (a) as amended by section
6 of part C-1 of chapter 57 of the laws of 2009, paragraph 2 of subdivi-
sion (c) and subdivision (d) as added by section 1 of part I of chapter
63 of the laws of 2000, are amended to read as follows:
(a) Allowance of credit. For taxable years beginning before January
first, two thousand nine, a taxpayer subject to tax under article nine,
[nine-A,] twenty-two, thirty-two or thirty-three of this chapter shall
be allowed a credit against such tax, pursuant to the provisions refer-
enced in subdivision (d) of this section. The credit shall be allowed
where a taxpayer has made a certified contribution of at least ten
million dollars to a qualified transportation improvement project in a
prior taxable year. The credit shall be equal to six percent of the
taxpayer's increased qualified business facility payroll for the taxable
A. 8167 21
year. The aggregate of all credit amounts allowed to the taxpayer pursu-
ant to this section with respect to a certified contribution shall not
exceed the amount of such certified contribution.
(2) The amount required to be added back pursuant to this subdivision
shall be augmented by an amount equal to the product of such amount and
the underpayment rate of interest (without regard to compounding), set
by the commissioner pursuant to subsection (e) of section one thousand
ninety-six of this chapter, in the case of taxpayers which applied the
credit against tax under article nine, [nine-A,] thirty-two or thirty-
three, or pursuant to subsection (j) of section six hundred ninety-seven
of this chapter, in the case of taxpayers who applied the credit against
tax under article twenty-two of this chapter, in effect on the last day
of the taxable year.
(d) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:
(1) Article 9: Section 187-e,
(2) [Article 9-A: Section 210: subdivision 32,
(3)] Article 22: Section 606: subsections (i) and (z),
[(4)] (3) Article 32: Section 1456: subsection (n),
[(5)] (4) Article 33: Section 1511: subdivision (p).
S 34. Paragraphs 1 and 5 of subdivision (a) and subdivision (f) of
section 21 of the tax law, paragraphs 1 and 5 of subdivision (a) as
amended by section 1 of part H of chapter 577 of the laws of 2004 and
subdivision (f) as added by section 1 of part H of chapter 1 of the laws
of 2003, are amended to read as follows:
(1) General. A taxpayer subject to tax under article nine, [nine-A,]
twenty-two, thirty-two or thirty-three of this chapter shall be allowed
a credit against such tax, pursuant to the provisions referenced in
subdivision (f) of this section. Such credit shall be allowed with
respect to a qualified site, as such term is defined in paragraph one of
subdivision (b) of this section. The amount of the credit in a taxable
year shall be the sum of the credit components specified in paragraphs
two, three and four of this subdivision applicable in such year.
(5) Applicable percentage. For purposes of paragraphs two, three and
four of this subdivision, the applicable percentage shall be twelve
percent in the case of credits claimed under article nine, [nine-A,]
thirty-two or thirty-three of this chapter, and ten percent in the case
of credits claimed under article twenty-two of this chapter, except that
where at least fifty percent of the area of the qualified site relating
to the credit provided for in this section is located in an environ-
mental zone as defined in paragraph six of subdivision (b) of this
section, the applicable percentage shall be increased by an additional
eight percent. Provided, however, as afforded in section 27-1419 of the
environmental conservation law, if the certificate of completion indi-
cates that the qualified site has been remediated to Track 1 as that
term is described in subdivision four of section 27-1415 of the environ-
mental conservation law, the applicable percentage set forth in the
first sentence of this paragraph shall be increased by an additional two
percent.
(f) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:
(1) Article 9: Section 187-g
(2) [Article 9-A: Section 210, subdivision 33
(3)] Article 22: Section 606, subsections (i) and (dd)
[(4)] (3) Article 32: Section 1456, subsection (q)
[(5)] (4) Article 33: Section 1511, subdivision (u).
A. 8167 22
S 35. Paragraph 3 of subdivision (a) and paragraphs 1 and 9 of subdi-
vision (b) of section 22 of the tax law, as amended by section 4 of part
H of chapter 577 of the laws of 2004, are amended to read as follows:
(3) Developer. (i) A "developer" is a taxpayer under article nine,
[nine-A,] twenty-two, thirty-two or thirty-three of this chapter who or
which either (I) has been issued a certificate of completion with
respect to a qualified site or (II) has purchased or in any other way
has been conveyed all or any portion of a qualified site from a taxpayer
or any other party who or which has been issued a certificate of
completion with respect to such site provided, such purchase or convey-
ance occurs within seven years of the effective date of the certificate
of completion issued with respect to such qualified site. Provided
further, that the taxpayer who or which is purchasing all or any portion
of a qualified site and the taxpayer or any other party who or which has
been issued a certificate of completion with respect to such site may
not be related persons, as such term is defined in subparagraph (C) of
paragraph three of subsection (b) of section four hundred sixty-five of
the internal revenue code.
(ii) Where the entity to whom a certificate of completion has been
issued is a partnership, or where the entity which has purchased all or
any portion of a qualified site from a taxpayer who or which has been
issued a certificate of completion with respect to such site within the
applicable time limit is a partnership, any partner in such partnership
who or which is taxable under article nine, [nine-A,] twenty-two, thir-
ty-two or thirty-three of this chapter shall be a developer under this
paragraph. Where the entity to whom a certificate of completion has been
issued is a New York S corporation, or where the entity which has
purchased all or any portion of a qualified site from a taxpayer who or
which has been issued a certificate of completion with respect to such
site within the applicable time limit is a New York S corporation, any
shareholder in such New York S corporation shall be a developer under
this paragraph.
(1) Allowance of credit. A developer of a qualified site who or which
is subject to tax under article nine, [nine-A,] twenty-two, thirty-two
or thirty-three of this chapter, shall be allowed a credit against such
tax, pursuant to the provisions referenced in paragraph nine of this
subdivision, for eligible real property taxes imposed on such site.
(9) Cross-references. For application of the credit provided for in
this subdivision, see the following provisions of this chapter:
(i) Article 9: Section 187-h.
(ii) [Article 9-A: Section 210: subdivision 34.
(iii)] Article 22: Section 606: subsections (i) and (ee).
[(iv)] (III) Article 32: Section 1456: subsection (r).
[(v)] (IV) Article 33: Section 1511: subdivision (v).
S 36. Subdivisions (a) and (e) of section 23 of the tax law, subdivi-
sion (a) as amended by section 10 of part H of chapter 577 of the laws
of 2004 and subdivision (e) as added by section 19 of part H of chapter
1 of the laws of 2003, are amended to read as follows:
(a) Allowance of credit. General. A taxpayer subject to tax under
article nine, [nine-A,] twenty-two, thirty-two or thirty-three of this
chapter shall be allowed a credit against such tax, pursuant to the
provisions referenced in subdivision (e) of this section. The amount of
such credit shall be equal to the lesser of thirty thousand dollars or
fifty percent of the premiums paid on or after the date of the brown-
field site cleanup agreement executed by the taxpayer and the department
of environmental conservation pursuant to section 27-1409 of the envi-
A. 8167 23
ronmental conservation law by the taxpayer for environmental remediation
insurance issued with respect to a qualified site.
(e) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:
(1) Article 9: Section 187-i
(2) [Article 9-A: Section 210, subdivision 35
(3)] Article 22: Section 606, subsections (i) and (ff)
[(4)] (3) Article 32: Section 1456, subsection (s)
[(5)] (4) Article 33: Section 1511, subdivision (w).
S 37. Paragraph 1 of subdivision (a) and subdivision (c) of section 24
of the tax law, paragraph 1 of subdivision (a) as amended by section 3
of part Q of chapter 57 of the laws of 2010 and subdivision (c) as added
by section 1 of part P of chapter 60 of the laws of 2004, are amended to
read as follows:
(1) Allowance of credit. A taxpayer which is a qualified film
production company, or a qualified independent film production company,
or which is a sole proprietor of or a member of a partnership which is a
qualified film production company or a qualified independent film
production company, and which is subject to tax under [articles nine-A
or] ARTICLE twenty-two of this chapter, shall be allowed a credit
against such tax, pursuant to the [provisions] PROVISION referenced in
subdivision (c) of this section, to be computed as hereinafter provided.
(c) Cross-references. For application of the credit provided for in
this section, see the following [provisions] PROVISION of this chapter:
[(1) article 9-A: section 210: subdivision 36.
(2)] article 22: section 606: subsection (gg).
S 38. Subdivisions (a) and (f) of section 26 of the tax law, subdivi-
sions (a) and (f) as added by chapter 537 of the laws of 2005, are
amended to read as follows:
(a) Allowance of credit. A taxpayer, which is subject to tax under
article nine, [nine-A,] twenty-two, thirty-two or thirty-three of this
chapter and which is a qualified building owner, shall be allowed a
credit against such tax. The amount of the credit allowed under this
section shall equal the sum of the number of qualified security officers
providing protection to a building or buildings owned by the taxpayer
multiplied by three thousand dollars. Provided, however, that in the
case of a worker not so employed for a full year, such amount shall be
prorated to reflect the length of such employment under regulations of
the commissioner.
(f) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:
(1) article 9: section 187-n.
(2) [article 9-A: section 210: subdivision 37.
(3)] article 22: section 606: subsection (ii).
[(4)] (3) article 32: section 1456: subsection (t).
[(5)] (4) article 33: section 1511: subdivision (x).
S 39. Subdivision (c) of section 28 of the tax law, as added by
section 2 of part V of chapter 62 of the laws of 2006, is amended to
read as follows:
(c) Cross-references. For application of the credit provided for in
this section, see the following provision of this chapter:
[(1) article 9-A: section 210: subdivision 38.
(2)] article 22: section 606: subsection (jj).
S 40. Subdivisions (a) and (d) of section 28 of the tax law, subdivi-
sion (a) as amended by section 1 of part A of chapter 57 of the laws of
A. 8167 24
2010 and subdivision (d) as added by section 7 of part X of chapter 62
of the laws of 2006, are amended to read as follows:
(a) General. A taxpayer subject to tax under article nine, [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. The credit (or pro rata share of earned credit in the case of a
partnership) for each gallon of biofuel produced at a biofuel plant on
or after January first, two thousand six shall equal fifteen cents per
gallon after the production of the first forty thousand gallons per year
presented to market. The credit under this section shall be capped at
two and one-half million dollars per taxpayer per taxable year for up to
no more than four consecutive taxable years per biofuel plant. If the
taxpayer is a partner in a partnership or shareholder of a New York S
corporation, then the cap imposed by the preceding sentence shall be
applied at the entity level, so that the aggregate credit allowed to all
the partners or shareholders of each such entity in the taxable year
does not exceed two and one-half million dollars.
(d) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:
(1) Article 9: Section 187-c.
(2) [Article 9-A: Section 210, subdivision 38.
(3)] Article 22: Section 606, subsections (i) and (jj).
S 41. Subdivisions (a), (c) and (g) of section 31 of the tax law,
subdivisions (a) and (g) as amended by section 7 of part G of chapter 61
of the laws of 2011 and subdivision (c) as added by section 2 of part MM
of chapter 59 of the laws of 2010, are amended to read as follows:
(a) General. A taxpayer subject to tax under section one hundred
eighty-five, article [nine-A,] twenty-two, thirty-two or thirty-three of
this chapter shall be allowed a credit against such tax, pursuant to the
provisions referenced in subdivision (g) of this section. The amount of
the credit, allowable for up to ten consecutive taxable years, is the
sum of the following four credit components:
(1) the excelsior jobs tax credit component;
(2) the excelsior investment tax credit component;
(3) the excelsior research and development tax credit component; and
(4) the excelsior real property tax credit component.
(c) Election of credit. A taxpayer who or which is qualified to claim
the excelsior investment tax credit component and is also qualified to
claim the investment tax credit provided for under [subdivision twelve
of section two hundred ten,] subsection (a) of section six hundred six,
or subsection (i) of section fourteen hundred fifty-six of this chapter,
may claim either the excelsior investment tax credit component or the
investment tax credit, but not both with regard to a particular piece of
property. In addition, a taxpayer who or which is qualified to claim the
excelsior investment tax credit component and is also qualified to claim
the brownfield tangible property credit component under section twenty-
one of this article, as added by chapter one of the laws of two thousand
three, may claim either the excelsior investment tax credit component or
such tangible property credit component, but not both with regard to a
particular piece of property. The election to claim the excelsior
investment tax credit component, the investment tax credit or the brown-
field tangible property credit component, with regard to the same prop-
erty, is irrevocable.
(g) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:
(1) article 9: section 187-q.
A. 8167 25
(2) [article 9-A: section 210: subdivision 41.
(3)] article 22: section 606: subsection (qq).
[(4)] (3) article 32: section 1456: subsection (u).
[(5)] (4) article 33: section 1511: subdivision (y).
S 42. Paragraph 1 of subdivision (a) and subdivision (d) of section 31
of the tax law, as added by section 12 of part Q of chapter 57 of the
laws of 2010, are amended to read as follows:
(1) A taxpayer which is a qualified film production company, and which
is subject to tax under article [nine-A or] twenty-two of this chapter,
unless eligible for the credit under section twenty-four of this article
with respect to the qualified film, shall be allowed a credit against
such tax, pursuant to the [provisions] PROVISION referenced in subdivi-
sion [(c)] (D) of this section to be computed as provided in this subdi-
vision.
(d) Cross-references. For application of the credit provided for in
this section, see the following [provisions] PROVISION of this chapter:
[(1) article 9-A: section 210: subdivision 41.
(2)] article 22: section 606: subsection (qq).
S 43. Subdivision 3 of section 34 of the tax law, as added by section
2 of part Y of chapter 57 of the laws of 2010, is amended to read as
follows:
3. (a) For application of the temporary deferral nonrefundable payout
credit, see the following provisions of this chapter:
(1) Article 9: section 187-0
(2) [Article 9-A: section 210(41)
(3)] Article 22: section 606(qq)
[(4)] (3) Article 32: section 1456(v)
[(5)] (4) Article 33: section 1511(y)
(b) For application of the temporary deferral refundable payout cred-
it, see the following provisions of this chapter:
(1) Article 9: section 187-p
(2) [Article 9-A: section 210(42)
(3)] Article 22: section 606(rr)
[(4)] (3) Article 32: section 1456(w)
[(5)] (4) Article 33: section 1511(z)
S 44. Subdivision 3 of section 33 of the tax law, as added by section
1 of part Y of chapter 57 of the laws of 2010, is amended to read as
follows:
3. [(a)] This section shall apply to the credits allowed under [the
following provisions in article nine-a of this chapter and any applica-
ble counterpart provisions in] articles nine, twenty-two, thirty-two and
thirty-three of this chapter[:
Section 210(12) investment tax credit
Section 210(12-B) empire zone investment tax credit
Section 210(12-C) empire zone employment incentive credit
Section 210(12-D) employment incentive credit
Section 210(12-E) QETC employment credit
Section 210(12-F) QETC capital tax credit
Section 210(12-G) QETC facilities, operations, and training credit
Section 210(17) special additional mortgage recording tax credit
Section 210(19) empire zone wage tax credit
Section 210(20) empire zone capital tax credit
Section 210(21-a) credit for servicing certain mortgages
Section 210(23) credit for employment of persons with disabilities
Section 210(24) alternative fuels credit
A. 8167 26
Section 210(25) credit for purchase of an automated external defibril-
lator
Section 210(27) QEZE credit for real property taxes
Section 210(28) QEZE tax reduction credit
Section 210(30) low income housing credit
Section 210(31) green building credit
Section 210(33) brownfield redevelopment tax credit
Section 210(34) remediated brownfield credit for real property taxes
for qualified sites
Section 210(35) environmental remediation insurance credit
Section 210(37) security training tax credit
Section 210(37) credit for fuel cell electric generating equipment
expenditures
Section 210(38) conservation easement tax credit
Section 210(38) empire state commercial production credit
Section 210(38) biofuel production credit
Section 210(39) clean heating fuel credit
Section 210(40) credit for rehabilitation of historic properties
Section 210(40) credit for companies who provide transportation to
individuals with disabilities
(b) This section] AND shall also apply to the credits allowed by the
following sections:
Section 186-a(9) power for jobs credit
Section 606(g-1) solar energy system equipment credit
Section 606(pp) historic homeownership rehabilitation credit
Section 1511(k) credit for certain investments in certified capital
companies
S 45. Paragraph (b) of subdivision 8 of section 186-a of the tax law,
as amended by chapter 708 of the laws of 1993 and as further amended by
section 15 of part GG of chapter 63 of the laws of 2000, is amended to
read as follows:
(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
nineteen hundred ninety-four, for ultimate consumption or use within an
area designated as an empire zone pursuant to article eighteen-B of the
general municipal law by a business, whether incorporated or unincorpo-
rated, [other than a retail enterprise as defined in paragraph (k) of
subdivision twelve of section two hundred ten of this chapter but with-
out regard to subparagraph (iii) thereof,] which has been certified
pursuant to article eighteen-B of the general municipal law, and which
has claimed a credit under [subdivision nineteen 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 previous fifteen months, as
evidenced by a certificate issued by the commissioner to such business.
Ninety-six and one-half percent of the aggregate 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 46. Subdivision 2 of section 187-l of the tax law, as added by
section 5 of part A of chapter 63 of the laws of 2005, is amended to
read as follows:
2. The average number of employees employed in an empire zone, or,
where applicable, in the geographic area subsequently constituting such
zone, in a taxable year shall be computed by ascertaining the number of
A. 8167 27
such employees within such zone, or, where applicable, in the geographic
area subsequently constituting such zone, except general executive offi-
cers, 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 section, the term "employ-
ees" and the term "general executive officers" shall mean the same as in
subparagraph three of paragraph (a) of subdivision three of section two
hundred ten of this chapter.]
S 47. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law, as amended by section 7 of part C-1 of chapter 57 of the
laws of 2009, clause (xxxi) as added by section 5 of part MM of chapter
59 of the laws of 2010, clause (xxxi) as added by section 14 of part Q
of chapter 57 of the laws of 2010 and clause (xxxii) as added by section
6 of part V of chapter 61 of the laws of 2011, is amended to read as
follows:
(B) shall be treated as the owner of a new business with respect to
such share if the corporation qualifies as a new business [pursuant to
paragraph (j) of subdivision twelve of section two hundred ten of this
chapter].
The corporation's credit base under
[section two hundred ten or] section
With respect to the following fourteen hundred fifty-six of this
credit under this section: chapter is:
(i) [Investment tax credit under Investment credit base or qualified
subsection (a) rehabilitation expenditures under
subdivision twelve of section two
hundred ten
(ii) Empire zone investment Cost or other basis under
tax credit under subsection (j) subdivision twelve-B of section
two hundred ten
(iii)] Empire zone wage tax credit Eligible wages under [subdivision
under subsection (k) nineteen of section two hundred
ten or] subsection (e) of section
fourteen hundred fifty-six
[(iv)](II) Empire zone capital tax Qualified investments and
credit under subsection (l) contributions under [subdivision
twenty of section two hundred ten
or] subsection (d) of section
fourteen hundred fifty-six
[(v) Agricultural property tax Allowable school district property
credit under subsection (n) taxes under subdivision twenty-two
of section two hundred ten
(vi)](III) Credit for employment of Qualified first-year wages or
persons with disabilities qualified second-year wages under
under subsection (o) [subdivision twenty-three of
section two hundred ten or]
A. 8167 28
subsection (f) of section
fourteen hundred fifty-six
[(vii) Employment incentive credit Applicable investment credit base
under subsection (a-1) under subdivision twelve-D of
section two hundred ten
(viii) Empire zone employment Applicable investment credit
incentive credit under subsection under subdivision twelve-C of
(j-1) section two hundred ten
(ix) Alternative fuels credit Cost under subdivision twenty-four
under subsection (p) of section two hundred ten
(x) Qualified emerging technology Applicable credit base under
company employment credit under subdivision twelve-E of section
subsection (q) two hundred ten
(xi) Qualified emerging technology Qualified investments under
company capital tax credit under subdivision twelve-F of section
subsection (r) two hundred ten
(xii)](IV) Credit for purchase of Cost of an automated external
an automated external defibrillator defibrillator under [subdivision
under subsection (s) twenty-five of section two hundred
ten or] subsection (j) of section
fourteen hundred fifty-six
[(xiii)](V) Low-income housing Credit amount under [subdivision
credit under subsection (x) thirty of section two hundred ten
or] subsection (l) of section
fourteen hundred fifty-six
[(xiv)](VI) Credit for For taxable years beginning
transportation improvement before January first, two
contributions under subsection (z) thousand nine, amount of credit under
[subdivision thirty-two of
section two hundred ten
or] subsection (n) of section
fourteen hundred fifty-six
[(xv)](VII) QEZE credit for real Amount of credit under [subdivision
property taxes under subsection (bb) twenty-seven of section two hundred
ten or] subsection (o) of section
fourteen hundred fifty-six
[(xvi)](VIII) QEZE tax reduction Amount of benefit period factor,
credit under subsection (cc) employment increase factor and zone
allocation factor (without regard
to pro ration) under [subdivision
twenty-eight of section two hundred
ten or] subsection (p) of section
fourteen hundred fifty-six and
amount of tax factor as determined
under subdivision (f) of section
sixteen
A. 8167 29
[(xvii)](IX) Green building credit Amount of green building credit
under subsection (y) under [subdivision thirty-one of
section two hundred ten or]
subsection (m) of section fourteen
hundred fifty-six
[(xviii)](X) Credit for long-term Qualified costs under [subdivision
care insurance premiums under twenty-five-a of section two
subsection (aa) hundred ten or] subsection (k) of
section fourteen hundred fifty-six
[(xix)](XI) Brownfield redevelopment Amount of credit under [subdivision
credit under subsection (dd) thirty-three of section two hundred
ten or] subsection (q) of section
fourteen hundred fifty-six
[(xx)](XII) Remediated brownfield Amount of credit under [subdivision
credit for real property taxes for thirty-four of section two hundred
qualified sites under subsection ten or] subsection (r) of section
(ee) fourteen hundred fifty-six
[(xxi)](XIII) Environmental Amount of credit under [subdivision
remediation insurance credit thirty-five of section two hundred
under subsection (ff) ten or] subsection (s) of section
fourteen hundred fifty-six
[(xxii) Empire state film Amount of credit for qualified
production credit under production costs in production of a
subsection (gg) qualified film under subdivision
thirty-six of section two hundred
ten
(xxiii) Qualified emerging Qualifying expenditures and
technology company facilities, development activities under
operations and training credit subdivision twelve-G of section two
under subsection (nn) hundred ten
(xxiv)](XIV) Security training tax Amount of credit under [subdivision
credit under subsection (ii) thirty-seven of section two hundred
ten or under] subsection (t) of
section fourteen hundred fifty-six
[(xxv)](XV) Credit for qualified For taxable years beginning before
fuel cell electric generating January first, two thousand nine,
equipment expenditures amount of credit under [subdivision
under subsection (g-2) thirty-seven of section two hundred
ten or] subsection (t) of section
fourteen hundred fifty-six
[(xxvi) Empire state commercial Amount of credit for qualified
production credit under subsection production costs in production of
(jj) a qualified commercial under
subdivision thirty-eight of
section two hundred ten
(xxvii) Biofuel production tax Amount of credit under subdivision
A. 8167 30
credit under subsection (jj) thirty-eight of section two hundred
ten
(xxviii) Clean heating fuel credit Amount of credit under subdivision
under subsection (mm) thirty-nine of section two hundred
ten
(xxix) Credit for rehabilitation Amount of credit under subdivision
of historic properties under forty of section two hundred ten
subsection (oo)
(xxxi)](XVI) Excelsior jobs program Amount of credit under [subdivision
tax credit under subsection (qq) forty-one of section two hundred
ten or] under subdivision (u) of
section fourteen hundred fifty-six
[(xxxi) Empire state film Amount of credit for
post production credit under qualified post production
subsection (qq) costs of a qualified film
under subdivision forty-one of
section two hundred ten
(xxxii)](XVII) Economic Amount of credit under [subdivision
transformation and facility forty-three of section 210 or
redevelopment PROGRAM TAX credit under] subsection (x) of section
UNDER SUBSECTION (SS) fourteen hundred fifty-six
S 48. Clauses (ii), (iii) and (iv) and subclause 2 of clause (v) of
subparagraph (B) of paragraph 1 of subsection (o) and subsection (p) of
section 612 of the tax law, clause (ii) of subparagraph (B) of paragraph
1 of subsection o and subsection p as amended by chapter 28 of the laws
of 1987, clause (iii) of subparagraph (B) of paragraph 1 of subsection
(o) as added by chapter 103 of the laws of 1981, clause (iv) of subpara-
graph (B) of paragraph (1) of subsection (o) as amended by chapter 267
of the laws of 1987 and subclause 2 of clause (v) of subparagraph (B) of
paragraph 1 of subsection o as amended by chapter 1043 of the laws of
1981, are amended to read as follows:
(ii) is, at the date of adoption of such plan, subject to taxation
(whether or not any amount is owing) under section one hundred eighty-
three[,] OR one hundred eighty-four [or one hundred eighty-six] of arti-
cle nine of this chapter, [or under article nine-a of this chapter] or
article twenty-three of this chapter, or would have been subject to tax
under article twenty-three (as such article was in effect on January
first, nineteen hundred eighty) if such article were still in effect,
and the first taxable period for which such new business became subject
to such taxation commenced on or after July first, nineteen hundred
eighty-one and before January first, nineteen hundred eighty-eight, and
such first taxable period includes the date of adoption of such plan; if
not so subject to taxation, the new business must be subject to taxation
under such sections or articles for the first time within one year from
the date of adoption of such plan, and
(iii) is conducted (or will be conducted, as evidenced by such plan)
whereby at least ninety percent of the assets (valued at original cost)
are located and employed in this state and eighty percent of the employ-
ees [(as ascertained within the meaning and intent of subparagraph three
of paragraph (a) of subdivision three of section two hundred ten of this
chapter and,] in addition, in the case of a partnership, excluding part-
A. 8167 31
ners) are principally employed in this state during each taxable period,
or part thereof, as required by clause (iv) of this subparagraph, and
(iv) within ninety days after the adoption of such plan, or, if a
return is required, as part of such return, under such article nine,
[article nine-A] or article twenty-three (as such article was in effect
on or before December thirtieth, nineteen hundred eighty-two), whichever
is sooner, shall file a new business certificate with the state tax
commission attesting to whether it meets, if subject to taxation under
such articles, or intends to meet, if not so subject, all of the condi-
tions stated in clauses (i), (ii) and (iii) of this subparagraph within
the time set forth therein. Thereafter, during the first four taxable
years of such new business, along with, and as part of, any return
required under such articles, such new business shall make and file a
new business certificate for the period covered by such return attesting
to whether it has met the conditions specified in this subparagraph
during the taxable period covered by such return. If no return is
required under such articles, such certificate shall be filed annually
on or before the fifteenth day of March which shall cover the twelve
consecutive calendar month period ending on the last day of December
immediately preceding such March fifteenth. If such new business fails
to meet such conditions specified in this subparagraph, it shall, in
addition, give notice of this fact, within the time prescribed by the
state tax commission, to the holders of its "new business investments."
The state tax commission shall prescribe the form and content of such
new business certification and may require a new business to file such
certificate for periods (even if no return is filed or required, but for
this section) covering up to eight years from the date of adoption of
such plan, as in its discretion, it deems the same necessary for the
enforcement of this subparagraph, and
(2) A new business does not include (i) any new business of which
twenty-five percent or more of the number of shares of stock that enti-
tle the holders thereof to vote for the election of directors or trus-
tees is owned, directly or indirectly, by a taxpayer subject to tax
under section one hundred eighty-three, one hundred eighty-four[,] OR
one hundred eighty-five [or one hundred eighty-six] of article nine of
this chapter, or under article [nine-A,] thirty-two or thirty-three of
this chapter or (ii) any new business substantially similar in operation
and in ownership, directly or indirectly, to a business entity (or enti-
ties) taxable, or previously taxable, under such sections, such arti-
cles, article twenty-three or which would have been subject to tax under
article twenty-three (as such article was in effect on January first,
nineteen hundred eighty) or the income (or losses) of which is (or was)
includable under article twenty-two whereby the intent and purpose of
this subsection would be evaded.
(p) New business investment deferral. For taxable years beginning
before January first, nineteen hundred eighty-eight, at the option of
the taxpayer, there may be subtracted from federal adjusted gross income
a reinvested amount of long-term capital gain realized in a taxable year
from the sale of a capital asset, as such term is defined in section
1221 of the internal revenue code, which is not a new business invest-
ment. A reinvested amount of long-term capital gain shall mean an amount
which bears the same ratio to the long-term capital gain realized from
the sale of a capital asset which was includable in New York adjusted
gross income as that portion of the sale proceeds which is reinvested,
within one year from date of sale, in a New York new business bears to
the total sale proceeds. For the purposes of this subsection, a New York
A. 8167 32
new business is a business enterprise which (1) has been a taxpayer
under this article for no more than three taxable years (including short
taxable years), (2) over fifty percent of the number of shares of stock
that entitle the holders thereof to vote for the election of directors
or trustees is not owned, directly or indirectly, by a taxpayer subject
to tax under section one hundred eighty-three, one hundred eighty-
four[,] OR one hundred eighty-five [or one hundred eighty-six] of arti-
cle nine of this chapter, or under article [nine-A,] thirty-two or thir-
ty-three of this chapter, (3) is not substantially similar in operation
or ownership, directly or indirectly, to a business entity (or entities)
taxable, or previously taxable, under such sections, such articles,
article twenty-three or which would have been subject to tax under arti-
cle twenty-three (as such article was in effect on January first, nine-
teen hundred eighty) or the income (or losses) of which is (or was)
includable under article twenty-two whereby the intent and purpose of
this subsection would be evaded, (4) locates and employs at least ninety
percent of its assets in the state, (5) employs principally in the state
eighty percent of its employees [(as ascertained within the meaning and
intent of subparagraph three of paragraph (a) of subdivision three of
section two hundred ten of this chapter and, in addition, in the case of
a partnership, excluding partners)], (6) derives less than forty percent
of its gross income from dividends, interest, royalties (other than
mineral, oil, or gas royalties or copyright royalties), and annuities
and (7) reports at least twenty-five hundred dollars in gross income in
any taxable year. The reinvested amount must qualify as a capital asset
as defined in section 1221 of the internal revenue code and must be
retained by the taxpayer for at least twelve months. The modification
allowable under this subsection shall be utilized with respect to the
taxable year in which the twelve month retention period ends. The
commissioner of taxation and finance may require annual information
reports on the investments in new businesses made pursuant to this
subsection, and such other reports as he may require to ensure against
the evasion of the intent and purposes of this subsection.
S 49. Subparagraph (A) of paragraph 4 of subsection (c) of section 658
of the tax law, as amended by section 1 of part DD of chapter 686 of the
laws of 2003, is amended to read as follows:
(A) General. Every entity which is a partnership, other than a public-
ly traded partnership as defined in section 7704 of the federal Internal
Revenue Code, subchapter K limited liability company or an S corporation
for which the election provided for in subsection (a) of section six
hundred sixty of this article is in effect, which has partners, members
or shareholders who are nonresident individuals, as defined under
subsection (b) of section six hundred five of this article, or C corpo-
rations, and which has any income derived from New York sources, deter-
mined in accordance with the applicable rules of section six hundred
thirty-one of this article as in the case of a nonresident individual,
shall pay estimated tax on such income on behalf of such partners,
members or shareholders in the manner and at the times prescribed by
subsection (c) of section six hundred eighty-five of this article. For
purposes of this paragraph, the term "estimated tax" shall mean a part-
ner's, member's or shareholder's distributive share or pro rata share of
the entity income derived from New York sources, multiplied by the high-
est rate of tax prescribed by section six hundred one of this article
for the taxable year of any partner, member or shareholder who is an
individual taxpayer, [or paragraph (a) of subdivision one of section two
hundred ten of this chapter for the taxable year of any partner,] member
A. 8167 33
or shareholder which is a C corporation, whether or not such C corpo-
ration is subject to tax under article nine, [nine-A,] thirty-two, or
thirty-three of this chapter, and reduced by the distributive share or
pro rata share of any credits determined under section one hundred
eighty-seven, one hundred eighty-seven-a, six hundred six, fourteen
hundred fifty-six or fifteen hundred eleven of this chapter, whichever
is applicable, derived from the entity.
S 50. Subsection (a), paragraphs 3 and 4 of subsection (c) and the
opening paragraph and paragraph 1 of subsection (d) of section 1083 of
the tax law, subsection (a) as added by chapter 188 of the laws of 1964,
paragraph 3 of subsection (c) and the opening paragraph and paragraph 1
of subsection (d) as amended by chapter 817 of the laws of 1987 and
paragraph 4 of subsection (c) as amended by chapter 548 of the laws of
1981, are amended to read as follows:
(a) General.--- Except as otherwise provided in this section, any tax
under article nine, [nine-a, nine-b or nine-c] NINE-B OR NINE-C shall be
assessed within three years after the return was filed (whether or not
such return was filed on or after the date prescribed).
(3) Report of changed or corrected federal income.---[In the case of
the tax imposed under article nine-a, nine-b or nine-c, if the taxpayer
files a report or amended return required under subdivision three of
section two hundred eleven or section two hundred nineteen-bb or two
hundred nineteen-zz, in respect of] WITH RESPECT TO an increase or
decrease in federal taxable income or federal alternative minimum taxa-
ble income or federal tax, or in respect of a change or correction or
renegotiation, or computation or recomputation of tax, which is treated
in the same manner as if it were a deficiency for federal income tax
purposes, the assessment (if not deemed to have been made upon the
filing of the report or amended return) may be made at any time within
two years after such report or amended return was filed. The amount of
such assessment of tax shall not exceed the amount of the increase in
New York tax attributable to such federal change or correction or rene-
gotiation, or computation or recomputation of tax. The provisions of
this paragraph shall not affect the time within which or the amount for
which an assessment may otherwise be made.
(4) Deficiency attributable to carryback.---If a deficiency of tax
under [article nine-a] is attributable to the application to the taxpay-
er of a net operating loss carryback or a capital loss carryback, it may
be assessed at any time that a deficiency for the taxable year of the
loss may be assessed.
The tax may be assessed at any time within six years after the return
was filed if (i) a taxpayer omits from gross income required to be
reported on a return under article nine, [nine-a, nine-b or nine-c]
NINE-B OR NINE-C an amount properly includible therein which is in
excess of twenty-five percent of the amount of gross income stated in
the return or, (ii) a taxpayer omits from the sum of its items of tax
preference and its adjustment required in the computation of minimum
taxable income an amount properly includible therein which is in excess
of twenty-five percent of such sum as stated in the return.
For purposes of this subsection---
(1) the term gross income means gross income for federal income tax
purposes as reportable on a return [under article nine-a,] and "gross
earnings", "gross income", "gross operating income" and "gross direct
premiums less return premiums", as those terms are used in article nine,
nine-b or nine-c, whichever is applicable;
A. 8167 34
S 51. Subdivisions (b) and (c) and paragraph 1 of subdivision (d) of
section 1201-a of the tax law, subdivision (b) as amended by section 5
of part Y of chapter 62 of the laws of 2006, subdivision (c) as amended
by chapter 300 of the laws of 2007 and paragraph 1 of subdivision (d) as
added by chapter 453 of the laws of 2009, are amended to read as
follows:
(b) Empire state film production credit. Any city in this state having
a population of one million or more, acting through its local legisla-
tive body, is hereby authorized to adopt and amend local laws to allow a
credit against the general corporation tax and the unincorporated busi-
ness tax imposed pursuant to the authority of chapter seven hundred
seventy-two of the laws of nineteen hundred sixty-six which shall be
substantially identical to the credit allowed under section twenty-four
of this chapter, except that (A) the percentage of qualified production
costs used to calculate such credit shall be five percent, (B) whenever
such section twenty-four references the state, such words shall be read
as referencing the city, (C) such credit shall be allowed only to a
taxpayer which is a qualified film production company, and (D) the
effective date of such credit shall be July first, two thousand six.
[Such credit shall be applied in a manner consistent with the credit
allowed under subdivision thirty-six of section two hundred ten of this
chapter except as may be necessary to take into account differences
between the general corporation tax and the unincorporated business
tax.]
(c) Empire state commercial production credit. Any city in this state
having a population of one million or more, acting through its local
legislative body, is hereby authorized to adopt and amend local laws to
allow a credit against the general corporation tax and the unincorporat-
ed business tax imposed pursuant to the authority of chapter seven
hundred seventy-two of the laws of nineteen hundred sixty-six which
shall be substantially identical to the credit allowed under the
provisions of section twenty-eight of this chapter, except that (A) the
percentage of qualified production costs used to calculate such credit
shall be five percent, (B) whenever such section twenty-eight references
the state, such words shall be read as referencing the city, (C) such
credit shall be allowed only to a taxpayer that is a qualified commer-
cial production company, and (D) the effective date of such credit shall
be as provided in local laws. [Such credit shall be applied in a manner
consistent with the credit allowed under subdivision thirty-eight of
section two hundred ten of this chapter except as may be necessary to
take into account differences between the general corporation tax and
unincorporated business tax.]
1. Any city in this state having a population of one million or more,
acting through its local legislative body, is hereby authorized to adopt
and amend local laws to allow a credit against the general corporation
tax, unincorporated business tax and the banking corporation tax imposed
pursuant to the authority of chapter seven hundred seventy-two of the
laws of nineteen hundred sixty-six [which shall be substantially identi-
cal to the credit allowed under subdivision twelve-G of section two
hundred ten of this chapter,] except that (A) whenever [subdivision
twelve-G of section two hundred ten of this chapter] references ARE MADE
TO the state, such words shall be read as referencing the city, (B) such
credit shall be allowed only to a taxpayer that (1) is a qualified
emerging technology company pursuant to the provisions of paragraph (c)
of subdivision one of section thirty-one hundred two-e of the public
authorities law, except that such company shall mean a company located
A. 8167 35
in such city, AND (2) engages in activities referenced in subparagraph
five of paragraph (b) of subdivision one of section thirty-one hundred
two-e of the public authorities law, [and (3) meets the eligibility
requirements in paragraph (b) of subdivision twelve-G of section two
hundred ten of this chapter,] and (C) the effective date of such credit
shall be as provided in local laws. [Subject to the limitations set
forth in paragraph two of this subdivision, such credit shall be applied
in a manner consistent with the credit allowed under subdivision
twelve-G of section two hundred ten of this chapter except as may be
necessary to take into account differences between article nine-A of
this chapter and the general corporation tax, the unincorporated busi-
ness tax or the banking corporation tax.]
S 52. Subdivision (a) of section 1809 of the tax law, as added by
section 1 of subpart A of part S of chapter 57 of the laws of 2010, is
amended to read as follows:
(a) Any person who, with intent to evade payment of any tax imposed
under article nine (other than under section one hundred eighty or one
hundred eighty-one), [nine-A,] thirteen, thirty-two, thirty-three or
thirty-three-A of this chapter, fails to file a return or report for
three consecutive taxable years shall be guilty of a class E felony,
provided that such person had an unpaid tax liability, in excess of the
threshold amount with respect to each of the three consecutive taxable
years. The threshold amount in [the case of a taxable year under article
nine-A of this chapter ending after June thirtieth, nineteen hundred
eighty-nine is the applicable fixed dollar minimum prescribed under
paragraph (d) of subdivision one of section two hundred ten of this
chapter. In the event such fixed dollar minimum is less than two hundred
fifty dollars, the threshold amount in the case of such taxable year is
two hundred fifty dollars. In] all [other] cases [the threshold amount]
is two hundred fifty dollars.
S 53. Section 295 of the tax law, as added by chapter 1005 of the laws
of 1970, is amended to read as follows:
S 295. Procedural provisions. The provisions [of section two hundred
eleven, except subdivisions one, four and nine thereof, the provisions
of subdivision three of section two hundred sixteen, and the provisions
of section two hundred nineteen of this chapter and the provisions] of
article twenty-seven of this chapter, shall apply to the provisions of
this article in the same manner and with the same force and effect as if
the language of those sections had been incorporated in full into this
article and had expressly referred to the tax under this article, except
to the extent that any such provision is either inconsistent with a
provision of this article or is not relevant to this article, and except
that the term "report" shall be read as "return", the term "taxable
income" shall be read as "unrelated business taxable income" and the
terms "corporation" and "foreign corporation" shall be read as "taxpay-
er".
S 54. Subsection (a), paragraph 2 of subsection (b), subsection (d)
and paragraph 1 of subsection (e) of section 1096 of the tax law,
subsections (a) and (d) as added by chapter 188 of the laws of 1964,
paragraph 2 of subsection (b) as amended by chapter 411 of the laws of
1986, and paragraph 1 of subsection (e) as amended by section 8 of
subpart D of part V-1 of chapter 57 of the laws of 2009, are amended to
read as follows:
(a) General.---The tax commission shall administer and enforce the tax
imposed by article nine, [nine-a,] nine-b and nine-c, and it is author-
ized to make such rules and regulations, and to require such facts and
A. 8167 36
information to be reported, as it may deem necessary to enforce the
provisions of such articles and of this article.
(2) The tax commission may take any action under paragraph one of this
subdivision to inquire into the commission of an offense connected with
the administration or enforcement of this article or article nine,
[nine-a,] thirteen, [thirteen-a] THIRTEEN-A, thirty-two, or thirty-three
of this chapter, provided, however, that notwithstanding the provisions
of section one hundred seventy-four of this chapter no such action shall
be taken when a referral by the department or the tax commission to the
attorney general, a district attorney or any other prosecutorial agency
is in effect. Provided, however, the tax commission shall have power,
during the period when such referral is in effect, to examine or to
cause to have examined, by any agent or representative designated by it
for that purpose, any books, papers, records or memoranda bearing upon
the matters required to be included in the return, where such books,
papers, records or memoranda are in its possession, or where such books,
papers, records or memoranda are in the possession of the attorney
general, district attorney or other prosecutorial agency to which such
referral is made.
(d) Special refund authority.---Where no questions of fact or law are
involved and it appears from the records of the tax commission that any
moneys have been erroneously or illegally collected from any taxpayer or
other person, or paid by such taxpayer or other person under a mistake
of facts, pursuant to the provisions of this article or of article nine,
[nine-a, nine-b or nine-c] NINE-B OR NINE-C, the tax commission at any
time, without regard to any period of limitations, shall have the power,
upon making a record of its reasons therefor in writing, to cause such
moneys so paid and being erroneously and illegally held to be refunded
and to issue therefor its certificate to the comptroller.
(1) Authority to set interest rates.---The commissioner shall set the
overpayment and underpayment rates of interest to be paid pursuant to
sections [two hundred thirteen, two hundred thirteen-b,] two hundred
fifty-eight, two hundred sixty-three, two hundred ninety-four, one thou-
sand eighty-four, one thousand eighty-five, one thousand eighty-eight,
fourteen hundred sixty-one and fourteen hundred sixty-three of this
chapter, but if no such rate or rates of interest are set, such overpay-
ment rate shall be deemed to be set at six percent per annum and such
underpayment rate shall be deemed to be set at seven and one-half
percent per annum. Such overpayment and underpayment rates shall be the
rates prescribed in paragraph two of this subsection, but the underpay-
ment rate shall not be less than seven and one-half percent per annum.
Any such rates set by the commissioner shall apply to taxes, or any
portion thereof, which remain or become due or overpaid on or after the
date on which such rates become effective and shall apply only with
respect to interest computed or computable for periods or portions of
periods occurring in the period during which such rates are in effect.
S 55. Section 1825 of the tax law, as amended by section 2 of part E
of chapter 25 of the laws of 2009, is amended to read as follows:
S 1825. Violation of secrecy provisions of the tax law.--Any person
who violates the provisions of [subdivision (b) of section twenty-one,
subdivision one of section two hundred two, subdivision eight of section
two hundred eleven,] subdivision (a) of section three hundred fourteen,
subdivision one or two of section four hundred thirty-seven, section
four hundred eighty-seven, subdivision one or two of section five
hundred fourteen, subsection (e) of section six hundred ninety-seven,
subsection (a) of section nine hundred ninety-four, subdivision (a) of
A. 8167 37
section eleven hundred forty-six, section twelve hundred eighty-seven,
subdivision (a) of section fourteen hundred eighteen, subsection (a) of
section fourteen hundred sixty-seven, subdivision (a) of section fifteen
hundred eighteen, subdivision (a) of section fifteen hundred fifty-five
of this chapter, and subdivision (e) of section 11-1797 of the adminis-
trative code of the city of New York shall be guilty of a misdemeanor.
S 56. Subsection (e) of section 301-l of the tax law, as added by
chapter 170 of the laws of 1994, is amended to read as follows:
(e) If there is a disallowance of a bad debt with respect to which a
refund under this section has been paid, such disallowance shall have
the effect of and be treated as a report of federal change, correction
or disallowance (as such effect and treatment is described in section
six hundred fifty-nine [and subdivision three of section two hundred
eleven] of this chapter) and the time to assess under this article with
respect to such disallowance shall be determined as set forth in such
[sections] SECTION.
S 57. Subsections (a) an (g) and the opening paragraph of subsection
(h) of section 1081 of the tax law, as added by chapter 188 of the laws
of 1964, are amended to read as follows:
(a) General.-- If upon examination of a taxpayer's return under arti-
cle nine, [nine-a, nine-b or nine-c] NINE-B OR NINE-C, the tax commis-
sion determines that there is a deficiency of tax, it may mail a notice
of deficiency to the taxpayer. If a taxpayer fails to file a tax return
required under article nine, [nine-a, nine-b or nine-c] NINE-B OR
NINE-C, the tax commission is authorized to estimate the taxpayer's New
York tax liability from any information in its possession, and to mail a
notice of deficiency to the taxpayer. A notice of deficiency shall be
mailed by certified or registered mail to the taxpayer at its last known
address in or out of this state. If the taxpayer has terminated its
existence, a notice of deficiency may be mailed to its last known
address in or out of this state, unless the tax commission has received
notice of the existence of a fiduciary relationship with respect to the
taxpayer.
(g) Two or more corporations.--In the case of a [combined return under
article nine-a or a] consolidated return under article [nine-b or
nine-c] NINE-B OR NINE-C of two or more corporations, the tax commission
may determine a deficiency of tax under article [nine-a, nine-b or
nine-c] NINE-B OR NINE-C with respect to the entire tax due upon such
return against any taxpayer included therein. In the case of a taxpayer
which might have been included in such a return under article [nine-a,
nine-b or nine-c] NINE-B OR NINE-C when the tax under such articles was
originally reported, the tax commission may determine a deficiency of
tax under article [nine-a, nine-b or nine-c] NINE-B OR NINE-C against
such taxpayer and against any other taxpayers which might have been
included in such a return.
For purposes of this article, a deficiency means the amount of the tax
imposed by article nine, [nine-a, nine-b or nine-c] NINE-B OR NINE-C,
less (i) the amount shown as the tax upon the taxpayer's return (whether
the return was made or the tax computed by it or by the tax commission),
and less (ii) the amounts previously assessed (or collected without
assessment) as a deficiency and plus (iii) the amount of any rebates.
For the purpose of this definition, the tax imposed by article [nine-a,
nine-b or nine-c] NINE-B OR NINE-C and the tax shown on the return shall
both be determined without regard to any payment of estimated tax; and a
rebate means so much of an abatement, credit, refund or other repayment
(whether or not erroneous) as was made on the ground that the amounts
A. 8167 38
entering into the definition of a deficiency showed a balance in favor
of the taxpayer.
S 58. Paragraph 2 of subsection (a) and subsections (b) and (c) of
section 1082 of the tax law, paragraph 2 of subsection (a) as amended by
chapter 788 of the laws of 1982 and subsections (b) and (c) as added by
chapter 188 of the laws of 1964, are amended to read as follows:
(2) If a report or an amended return filed [pursuant to subdivision
three of section two hundred eleven or section two hundred nineteen-bb
or two hundred nineteen-zz] concedes the accuracy of a federal change or
correction or renegotiation, or computation or recomputation of tax, any
deficiency in tax under article [nine-a, nine-b or nine-c] NINE-B OR
NINE-C resulting therefrom shall be deemed to be assessed on the date of
filing such report or amended return, and such assessment shall be time-
ly notwithstanding section one thousand eighty-three. If a notice of
additional tax due, as prescribed in subsection (e) of section one thou-
sand eighty-one, has been mailed, the amount of the deficiency shall be
deemed to be assessed on the date specified in such subsection unless
within thirty days after the mailing of such notice a report of the
federal change or correction or renegotiation or computation or recompu-
tation of tax, or an amended return, [where such return was required by
subdivision three of section two hundred eleven or by section two
hundred nineteen-bb or by section two hundred nineteen-zz,] is filed
accompanied by a statement showing wherein such federal determination
and such notice of additional tax due are erroneous.
(b) Other assessment powers.---If the mode or time for the assessment
of any tax under article nine, [nine-a, nine-b or nine-c] NINE-B OR
NINE-C (including interest, additions to tax and assessable penalties)
is not otherwise provided for, the tax commission may establish the same
by regulations.
(c) Estimated tax.---No unpaid amount of estimated tax under article
[nine-a, nine-b or nine-c] NINE-B OR NINE-C shall be assessed.
S 59. Paragraphs 1, 2 and 3 of subsection (a), paragraph 1 of
subsection (b), paragraphs 1 and 3 of subsection (c), the opening para-
graph, paragraph 3 and clause (i) of subparagraph (A) of paragraph 4 of
subsection (d), subsection (g), the opening paragraph of subsection (h),
paragraph 1 of subsection (l), clause (ii) of subparagraph (B) of para-
graph 2 of subsection (q), paragraph 3 of subsection (s) and clause (iv)
of subparagraph (C) of paragraph 1 of subsection (t) of section 1085 of
the tax law, paragraph 1 of subsection (a), paragraph 1 of subsection
(b) and the opening paragraph of subsection (h) as amended by chapter 65
of the laws of 1985, paragraph 2 of subsection (a) as amended by chapter
1005 of the laws of 1970, subparagraph (B) of paragraph 1 of subsection
(a) and paragraph 1 of subsection (l) as amended by chapter 765 of the
laws of 1985, paragraph 3 of subsection (a) as amended by chapter 577 of
the laws of 1997, paragraph 1 of subsection (c) as amended by section 7
of subpart D of part V-1 of chapter 57 of the laws of 2009, paragraph 3
of subsection (c) as amended by section 15 of part Y of chapter 63 of
the laws of 2000, the opening paragraph of subsection (d) as amended and
subsection (g) as relettered by chapter 15 of the laws of 1983, para-
graph 3 of subsection (d) as amended by chapter 170 of the laws of 1994,
clause (i) of subparagraph (A) of paragraph 4 of subsection (d) as
amended by chapter 57 of the laws of 1993, subsection (g) as added by
chapter 188 of the laws of 1964, clause (ii) of subparagraph (B) of
paragraph 2 of subsection (q), paragraph 3 of subsection (S) and clause
(iv) of subparagraph (C) of paragraph 1 of subsection (t) as added by
A. 8167 39
section 10 of part N of chapter 61 of the laws of 2005, are amended to
read as follows:
(1) Failure to file return.---(A) In case of failure to file a return
under article nine, [nine-a, nine-b or nine-c] NINE-B OR NINE-C on or
before the prescribed date (determined with regard to any extension of
time for filing), unless it is shown that such failure is due to reason-
able cause and not due to willful neglect, there shall be added to the
amount required to be shown as tax on such return five percent of the
amount of such tax if the failure is for not more than one month, with
an additional five percent for each additional month or fraction thereof
during which such failure continues, not exceeding twenty-five percent
in the aggregate.
(B) In the case of a failure to file a return of tax within sixty days
of the date prescribed for filing of such return (determined with regard
to any extension of time for filing), unless it is shown that such fail-
ure is due to reasonable cause and not due to willful neglect, the addi-
tion to tax under subparagraph (A) of this paragraph shall not be less
than the lesser of one hundred dollars or one hundred percent of the
amount required to be shown as tax on such return.
(C) For purposes of this paragraph, the amount of tax required to be
shown on the return shall be reduced by the amount of any part of the
tax which is paid on or before the date prescribed for payment of the
tax and by the amount of any credit against the tax which may be claimed
upon the return.
(2) Failure to pay tax shown on return.--In case of failure to pay the
amounts shown as tax on any return required to be filed under article
nine, [nine-a, nine-b or nine-c] NINE-B OR NINE-C on or before the
prescribed date (determined with regard to any extension of time for
payment), unless it is shown that such failure is due to reasonable
cause and not due to willful neglect, there shall be added to the amount
shown as tax on such return one-half of one per cent of the amount of
such tax if the failure is not for more than one month, with an addi-
tional one-half of one per cent for each additional month or fraction
thereof during which such failure continues, not exceeding twenty-five
per cent in the aggregate. For the purpose of computing the addition
for any month the amount of tax shown on the return shall be reduced by
the amount of any part of the tax which is paid on or before the begin-
ning of such month and by the amount of any credit against the tax which
may be claimed upon the return. If the amount of tax required to be
shown on a return is less than the amount shown as tax on such return,
this paragraph shall be applied by substituting such lower amount.
(3) Failure to pay tax required to be shown on return.--In case of
failure to pay any amount in respect of any tax required to be shown on
a return required to be filed under article nine [or nine-a] which is
not so shown (including an assessment made pursuant to subsection (a) of
section one thousand eighty-two of this article) within twenty-one
calendar days of the date of a notice and demand therefor (ten business
days if the amount for which such notice and demand is made equals or
exceeds one hundred thousand dollars), unless it is shown that such
failure is due to reasonable cause and not due to willful neglect, there
shall be added to the amount of tax stated in such notice and demand
one-half of one percent of such tax if the failure is not for more than
one month, with an additional one-half of one percent for each addi-
tional month or fraction thereof during which such failure continues,
not exceeding twenty-five percent in the aggregate. For the purpose of
computing the addition for any month, the amount of tax stated in the
A. 8167 40
notice and demand shall be reduced by the amount of any part of the tax
which is paid before the beginning of such month.
(l) If any part of a deficiency is due to negligence or intentional
disregard of this article or article nine, [nine-a, nine-b or nine-c]
NINE-B OR NINE-C, or rules or regulations thereunder (but without intent
to defraud), there shall be added to the tax an amount equal to five
percent of the deficiency.
(1) If any taxpayer fails to file a declaration of estimated tax
[under article nine-A of] WHERE REQUIRED UNDER this chapter, or fails to
pay all or any part of an amount which is applied as an installment
against such estimated tax, it shall be deemed to have made an underpay-
ment of estimated tax. There shall be added to the tax for the taxable
year an amount at the underpayment rate set by the commissioner pursuant
to section one thousand ninety-six of this article, or if no rate is
set, at the rate of seven and one-half percent per annum upon the amount
of the underpayment for the period of the underpayment but not beyond
the fifteenth day of the third month following the close of the taxable
year. The amount of the underpayment shall be, with respect to any
installment of estimated tax computed on the basis of the preceding
year's tax, the excess of the amount required to be paid over the
amount, if any, paid on or before the last day prescribed for such
payment or, with respect to any other installment of estimated tax, the
excess of the amount of the installment which would be required to be
paid if the estimated tax were equal to ninety-one percent of the tax
shown on the return for the taxable year (or if no return was filed,
ninety-one percent of the tax for such year) over the amount, if any, of
the installment paid on or before the last day prescribed for such
payment. In any case in which there would be no underpayment if "eighty
percent" were substituted for "ninety-one percent" each place it appears
in this subsection, the addition to the tax shall be equal to seventy-
five percent of the amount otherwise determined. No underpayment shall
be deemed to exist with respect to a declaration or installment other-
wise due on or after the termination of existence of the taxpayer.
(3) The provisions of this subsection and subsections (d) and (e) of
this section shall apply to the failure of a taxpayer to file a declara-
tion of estimated tax surcharge or the failure to pay all or any part of
an amount which is applied as an installment against such estimated tax
surcharge pursuant to sections one hundred ninety-seven-a, one hundred
ninety-seven-b, two hundred thirteen-a, two hundred thirteen-b, fourteen
hundred sixty, fourteen hundred sixty-one, fifteen hundred thirteen and
fifteen hundred fourteen of this chapter. For purposes of applying this
section and subsections (d) and (e) of this section to the estimated tax
surcharge, where appropriate the term "tax" shall be read to mean "tax
surcharge," and the terms "amount required to be paid," "amount which
would be required to be paid," and "amount which would have been
required to be paid" shall be computed as the product of (1) such amount
computed without regard to the tax surcharges imposed under sections one
hundred eighty-four-a, one hundred eighty-six-c, one hundred eighty-
eight, [two hundred nine-A, two hundred nine-B,] fourteen hundred
fifty-five-A, fourteen hundred fifty-five-B, fifteen hundred five-a, and
fifteen hundred twenty of this chapter, and (2) the MTA percentage. The
term "MTA percentage" shall mean the product of (A) the tax rate appli-
cable under such sections imposing such surcharges and (B) the percent-
age utilized in determining the portion of the taxpayer's business
activity carried on within the metropolitan commuter transportation
district under such sections.
A. 8167 41
The addition to tax under subsection (c) with respect to any underpay-
ment of any amount which is applied as an installment against estimated
tax under article [nine-a, nine-b or nine-c] NINE-B OR NINE-C shall not
be imposed if the total amount of all payments of estimated tax made on
or before the last date prescribed for the payment of any such amount
equals or exceeds the amount which would have been required to be paid
on or before such date if the estimated tax were whichever of the
following is the least--
(3) Annualized income installment. (A) General. An amount equal to
ninety-one percent of the tax for the taxable year computed on all items
entering into the computation of the tax or taxes of the taxpayer for
the taxable year under article nine, [nine-A,] thirty-two or thirty-
three of this chapter. For purposes of computing the tax, all items of
receipts, income and expenses shall be placed on an annualized basis--
(i) take the items entering into the computation of the tax or taxes
of the taxpayer for the taxable year under article nine, [nine-A,] thir-
ty-two or thirty-three of this chapter, for all months during the taxa-
ble year preceding the filing month,
(g) Additional penalty.---Any person who with fraudulent intent shall
fail to pay under article nine, [nine-a, nine-b or nine-c] NINE-B OR
NINE-C, any tax, or to make, render, sign or certify any return or
declaration of estimated tax, or to supply any information within the
time required by or under such article, shall be liable to penalty of
not more than one thousand dollars, in addition to any other amounts
required under this article, to be imposed, assessed and collected by
the tax commission. The tax commission shall have the power, in its
discretion, to waive, reduce or compromise any penalty under this
subsection.
The additions to tax and penalties provided by this section shall be
paid upon notice and demand and shall be assessed, collected and paid in
the same manner as taxes, and any reference in this article to tax
imposed by article nine, [nine-a, nine-b or nine-c] NINE-B OR NINE-C
shall be deemed also to refer to the additions to tax and penalties
provided by this section. For purposes of section one thousand eighty-
one, this subsection shall not apply to---
(1) Any person who, with the intent that tax be evaded, shall, for a
fee or other compensation or as an incident to the performance of other
services for which such person receives compensation, aid or assist in,
or procure, counsel, or advise the preparation or presentation under, or
in connection with any matter arising under article nine, [nine-A,]
nine-B or nine-C of this chapter of any return, report, declaration,
statement or other document which is fraudulent or false as to any mate-
rial matter, or supply any false or fraudulent information, whether or
not such falsity or fraud is with the knowledge or consent of the person
authorized or required to present such return, report, declaration,
statement or other document shall pay a penalty not exceeding ten thou-
sand dollars.
(ii) fifty percent of the gross income that the organizer or material
advisor derived with respect to activities that were the basis for the
requirement to file, disclose or provide information pursuant to section
six thousand eleven of the internal revenue code, to the extent such
gross income is attributable to the avoidance of any tax imposed under
article nine, [nine-A,] thirty-two, or thirty-three of this chapter.
(3) For purposes of this subsection, the term "understatement of
liability" means any understatement of the net amount payable with
respect to any tax imposed under article nine, [nine-A,] thirty-two, or
A. 8167 42
thirty-three of this chapter or any overstatement of the net amount
creditable or refundable with respect to any such tax.
(iv) the person conducts any of the activities described in subpara-
graph (A) or (B) of this paragraph within the state of New York, shall
pay, with respect to each activity described in subparagraph (A) of this
paragraph, a penalty equal to one thousand dollars or, if the person
establishes that it is lesser, one hundred percent of the gross income
derived (or to be derived) by such person from such activity to the
extent such gross income is attributed to the avoidance of any tax
imposed under articles nine, [nine-A,] thirty-two or thirty-three of
this chapter; provided, however, that if an activity with respect to
which a penalty imposed under this subsection involves a statement
described in clause (i) of subparagraph (B) of paragraph one of this
subsection, the penalty shall be equal to fifty percent of the gross
income derived (or to be derived) from that activity within the state by
the person on which the penalty is imposed. For purposes of the preced-
ing sentence, activities described in clause (i) of subparagraph (A) of
this paragraph with respect to each entity or arrangement shall be
treated as a separate activity and participation in each sale described
in clause (ii) of subparagraph (A) of this paragraph shall be so treat-
ed.
S 60. The opening paragraph of subsection (a), the opening paragraph
of subsection (c) and subsections (d), (e) and (i) of section 1087 of
the tax law, the opening paragraph of subsection (a) as amended by
section 9 of part H of chapter 1 of the laws of 2003, the opening para-
graph of subsection (c) as separately amended by chapters 760 and 770 of
the laws of 1992, subsection (d) as amended by chapter 548 of the laws
of 1981 and subsections (e) and (i) as added by chapter 188 of the laws
of 1964, are amended to read as follows:
Claim for credit or refund of an overpayment of tax under article nine
[or nine-A] shall be filed by the taxpayer within:
If a taxpayer is required by [subdivision three of section two hundred
eleven,] subsection (e) of section fourteen hundred sixty-two or para-
graph one of subdivision (e) of section fifteen hundred fifteen, to file
a report or amended return in respect of:
(d) Overpayment attributable to net operating loss carryback or capi-
tal loss carryback.--A claim for credit or refund of so much of an over-
payment [under article nine-a] as is attributable to the application to
the taxpayer of a net operating loss carryback or a capital loss carry-
back shall be filed within three years from the time the return was due
(including extensions thereof) for the taxable year of the loss, or
within the period prescribed in subsection (b) in respect of such taxa-
ble year, or within the period prescribed in subsection (c), where
applicable, in respect of the taxable year to which the net operating
loss or capital loss is carried back, whichever expires the latest.
Where such claim for credit or refund is filed after the expiration of
the period prescribed in subsection (a), or in subsection (b) where
applicable, in respect of the taxable year to which the net operating
loss or capital loss is carried back, the amount of such credit or
refund shall be computed without change of the allocation of income or
capital upon which the taxpayer's return (or any additional assessment)
was based.
(e) Failure to file claim within prescribed period.--No credit or
refund shall be allowed or made, except as provided in subsection (f) of
this section or subsection (d) of section one thousand ninety, after the
expiration of the applicable period of limitation specified in this
A. 8167 43
article, unless a claim for credit or refund is filed by the taxpayer
within such period. Any later credit shall be void and any later refund
erroneous. No period of limitations specified in any other law shall
apply to the recovery by a taxpayer of moneys paid in respect of taxes
under article nine, [nine-a, nine-b or nine-c] NINE-B OR NINE-C.
(i) Prepaid tax.--For purposes of this section, any tax paid by the
taxpayer before the last day prescribed for its payment (including any
amount paid by the taxpayer as estimated tax for a taxable year) shall
be deemed to have been paid by it on the fifteenth day of the third
month following the close of the taxable year the income of which is the
basis for tax under article [nine-a, nine-b or nine-c] NINE-B OR NINE-C,
or on the last day prescribed in article nine for the filing of a final
return for such taxable year, or portion thereof, determined in all
cases without regard to any extension of time granted the taxpayer.
S 61. The opening paragraph of subsection (a), paragraph 1 of
subsection (c) and subsections (d) and (g) of section 1088 of the tax
law, the opening paragraph of subsection (a) and subsection (g) as
amended by chapter 61 of the laws of 1989, paragraph 1 of subsection (c)
as amended by chapter 166 of the laws of 1991, subsection (d) as amended
by chapter 15 of the laws of 1983 and subsection (g) as relettered by
chapter 55 of the laws of 1992, are amended to read as follows:
Notwithstanding the provisions of section sixteen of the state finance
law, interest shall be allowed and paid as follows at the overpayment
rate set by the commissioner [of taxation and finance] pursuant to
section one thousand ninety-six, or if no rate is set, at the rate of
six percent per annum upon any overpayment in respect of the tax imposed
by article nine [or nine-a]:
(1) If any overpayment of tax imposed by article nine [or nine-a] is
credited or refunded within three months after the last date prescribed
(or permitted by extension of time) for filing the return of such tax on
which such overpayment was claimed or within three months after such
return was filed, whichever is later, or within three months after an
amended return was filed claiming such overpayment or within three
months after a claim for credit or refund was filed on which such over-
payment was claimed, no interest shall be allowed under this section on
any such overpayment. For purposes of this subsection, any amended
return or claim for credit or refund filed before the last day
prescribed (or permitted by extension of time) for the filing of the
return of tax for such year or period shall be considered as filed on
such last day.
(d) Refund of tax caused by carryback.--For purposes of this section,
if any overpayment of tax imposed by [article nine-a] THIS CHAPTER
results from a carryback of a net operating loss or a net capital loss,
such overpayment shall be deemed not to have been made prior to the
filing date for the taxable year in which such net operating loss or net
capital loss arises. In the case of a taxpayer which has made an
election under subchapter s of chapter one of the internal revenue code,
where an overpayment of tax results from a carryback of a net operating
loss arising in a taxable year ending on or after December thirty-first,
nineteen hundred seventy-six, or from a carryback of a net capital loss
arising in a taxable year ending on or after December thirty-first,
nineteen hundred eighty-one, unless a claim for refund based on such
overpayment has been filed within a period ending twelve months and one
hundred eighty days subsequent to the last day of the taxable year in
which the net operating loss or net capital loss arises, interest on any
resulting refund or credit shall cease to accrue upon the conclusion of
A. 8167 44
such period. Such filing date shall be determined without regard to
extensions of time to file. For purposes of subsection (c) of this
section any overpayment described herein shall be treated as an overpay-
ment for the loss year and such subsection shall be applied with respect
to such overpayment by treating the return for the loss year as not
filed before claim for such overpayment is filed. The term "loss year"
means the taxable year in which such loss arises.
(g) Cross-reference.--For provision with respect to interest after
failure to file a report or amended return under [subdivision three of
section two hundred eleven,] subsection (e) of section fourteen hundred
sixty-two or paragraph one of subdivision (e) of section fifteen hundred
fifteen, see subsection (c) of section one thousand eighty-seven.
S 62. Paragraph 4 of subsection (d) and paragraph 3 of subsection (e)
of section 1089 of the tax law, as amended by chapter 817 of the laws of
1987, are amended to read as follows:
(4) Restriction on further notices of deficiency.---If the taxpayer
files a petition with the tax commission under this section, no notice
of deficiency under section one thousand eighty-one may thereafter be
issued by the tax commission for the same taxable year, except in case
of fraud or with respect to an increase or decrease in federal taxable
income or federal alternative minimum taxable income or federal tax or a
federal change or correction or renegotiation, or computation or recom-
putation of tax, which is treated in the same manner as if it were a
deficiency for federal income tax purposes, required to be reported
[under subdivision three of section two hundred eleven, or under section
two hundred nineteen-bb or under section two hundred nineteen-zz].
(3) whether the petitioner is liable for any increase in a deficiency
where such increase is asserted initially after a notice of deficiency
was mailed and a petition under this section filed, unless such increase
in deficiency is the result of an increase or decrease in federal taxa-
ble income or federal alternative minimum taxable income or federal tax
or a federal change or correction or renegotiation, or computation or
recomputation of tax, which is treated in the same manner as if it were
a deficiency for federal income tax purposes, required to be reported
[under subdivision three of section two hundred eleven, or under section
two hundred nineteen-bb, or under section two hundred nineteen-zz,] and
of which increase, decrease, change or correction or renegotiation, or
computation or recomputation, the tax commission had no notice at the
time it mailed the notice of deficiency; and
S 63. Subsections (d), (h), (i), (j), (k), (l), (m) and (n) of section
1452 of the tax law are REPEALED.
S 64. This act shall take effect immediately; provided, however that:
(a) the amendments to section 28 of the tax law made by sections five
and thirty-nine of this act shall not affect the repeal of such section
and shall be deemed repealed therewith;
(b) the amendments to clause (xxxii) of subparagraph (B) of paragraph
1 of subsection (i) of section 606 of the tax law made by section
forty-seven of this act shall not affect the repeal of such clause and
shall be deemed repealed therewith;
(c) the amendments to subdivision (c) of section 1201-a of the tax law
made by section fifty-one of this act shall not affect the repeal of
such subdivision and shall be deemed repealed therewith; and
(d) the amendments to subsections (q), (s) and (t) of section 1085 of
the tax law made by section fifty-nine of this act shall not affect the
repeal of such subsections and shall be deemed repealed therewith.