S T A T E O F N E W Y O R K
________________________________________________________________________
5767
2011-2012 Regular Sessions
I N A S S E M B L Y
February 28, 2011
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Introduced by M. of A. TOBACCO -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing an underground
infrastructure security device credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new section 35 to read
as follows:
S 35. UNDERGROUND INFRASTRUCTURE SECURITY DEVICE CREDIT. (A) ALLOWANCE
OF CREDIT. (1) A TAXPAYER WHICH OWNS OR MAINTAINS A QUALIFIED MANHOLE
PROVIDING ACCESS TO HIGHLY CRITICAL UNDERGROUND INFRASTRUCTURE WHERE
SUCH MANHOLE IS LOCATED IN A CITY WITH A POPULATION GREATER THAN ONE
MILLION AND IN AN AREA WHICH IS OPEN TO OR READILY ACCESSIBLE BY THE
PUBLIC, AND WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE, NINE-A OR THIR-
TY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX,
PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (C) OF THIS
SECTION, TO BE COMPUTED AS PROVIDED IN THIS SECTION, EQUAL TO THE
TAXPAYERS COST OF COMMONLY AVAILABLE SELF CONTAINED INDEPENDENT MANHOLE
BARRIER LOCKING DEVICES TO SECURE SUCH MANHOLES FROM UNAUTHORIZED
ACCESS.
(B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) "QUALIFIED MANHOLE" MEANS SURFACE-LEVEL ACCESS TO HIGHLY CRITICAL
UNDERGROUND INFRASTRUCTURE WHICH IS AT OR NEAR GRADE, AND UNSECURED BY
MEANS OTHER THAN A COVER OR GRATE OVER SUCH OPENING.
(2) "HIGHLY CRITICAL UNDERGROUND INFRASTRUCTURE" MEANS INFRASTRUCTURE
CERTIFIED AS SUCH BY THE OFFICE OF HOMELAND SECURITY, LOSS OR FAILURE OF
WHICH WOULD LEAD TO A SUBSTANTIAL LOSS OF LIFE OR SERIOUS INJURY,
SIGNIFICANT ECONOMIC LOSS, AND WOULD UNDERMINE THE MORALE AND CONFIDENCE
OF SUBSTANTIAL PORTIONS OF THE COMMUNITY, AND MAY INCLUDE THOSE WHICH
PROVIDE ACCESS TO POINTS OF MULTIPLE CRITICAL INFRASTRUCTURE COMPONENTS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08871-01-1
A. 5767 2
AND THOSE NEAR OR DIRECTLY SERVING SECURE GOVERNMENT FACILITIES, MAJOR
FINANCIAL CENTERS, SIGNIFICANT PORTS OF ENTRY, OR MASS TRANSIT CENTERS
OR LINES.
(3) "COSTS" MEANS THE AMOUNT ACTUALLY EXPENDED BY THE TAXPAYER FOR
DEVICES TO SECURE QUALIFIED MANHOLES, LESS ANY REFUNDS, OFFSETS, OR
REIMBURSEMENTS, AND NOT TO EXCEED SIX HUNDRED FIFTY DOLLARS PER QUALI-
FIED MANHOLE UPON WHICH A DEVICE IS INSTALLED.
(4) "COMMONLY AVAILABLE SELF CONTAINED INDEPENDENT MANHOLE BARRIER
LOCKING DEVICE" MEANS A MECHANICAL DEVICE WHICH BLOCKS A PERSON FROM
ENTERING A MANHOLE, IS READILY REMOVABLE AND REUSABLE, AND REQUIRES A
PROPRIETARY, CUSTOM, OR UNIQUE KEY OR WRENCH TO REMOVE, AND ANY ASSOCI-
ATED KEY OR WRENCHES TO LOCK AND UNLOCK SUCH DEVICE.
(C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISION OF THIS CHAPTER:
(1) ARTICLE 9: SECTION 187-Q.
(2) ARTICLE 9-A: SECTION 210: SUBDIVISION 43.
(3) ARTICLE 32: SECTION 1456: SUBSECTION (X).
S 2. The tax law is amended by adding a new section 187-q to read as
follows:
S 187-Q. UNDERGROUND INFRASTRUCTURE SECURITY DEVICE CREDIT. 1. ALLOW-
ANCE OF CREDIT. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND ELEVEN, A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION THIRTY-FIVE OF THIS CHAPTER, AGAINST THE TAX IMPOSED
BY THIS ARTICLE.
2. APPLICATION OF CREDIT. IN NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO
LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
Y-THREE OR ONE HUNDRED EIGHTY-FIVE OF THIS ARTICLE. IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN
SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 3. Section 210 of the tax law is amended by adding a new subdivision
43 to read as follows:
43. UNDERGROUND INFRASTRUCTURE SECURITY DEVICE CREDIT. (A) ALLOWANCE
OF CREDIT. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND ELEVEN, A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION THIRTY-FIVE OF THIS CHAPTER, AGAINST THE TAX IMPOSED
BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. IN NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT THAT SHALL REDUCE THE TAX PAYABLE TO
LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
Y-THREE OR ONE HUNDRED EIGHTY-FIVE OF THIS CHAPTER. IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN
SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 4. Section 1456 of the tax law is amended by adding a new subsection
(x) to read as follows:
A. 5767 3
(X) UNDERGROUND INFRASTRUCTURE SECURITY DEVICE CREDIT. (1) ALLOWANCE
OF CREDIT. FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND ELEVEN, A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
PROVIDED IN SECTION THIRTY-FIVE OF THIS CHAPTER, AGAINST THE TAX IMPOSED
BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IN NO EVENT SHALL THE CREDIT UNDER THIS
SECTION BE ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO
LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHT-
Y-THREE OR ONE HUNDRED EIGHTY-FIVE OF THIS CHAPTER. IF, HOWEVER, THE
AMOUNT OF CREDIT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN
SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 5. 1. The director of the office of homeland security, in consulta-
tion with the office of cyber security and critical infrastructure coor-
dination, is hereby directed to develop standards for identifying highly
critical underground infrastructure, loss or failure of which would lead
to a substantial loss of life or serious injury, significant economic
loss, and would undermine the morale and confidence of substantial
portions of the community, and may include those which provide access to
points of multiple critical infrastructure components and those near or
directly serving secure government facilities, major financial centers,
significant ports of entry, or mass transit centers or lines.
2. The director of the office of homeland security shall make or cause
to be made a survey of access points to underground infrastructure to
identify those points which provide access to highly critical under-
ground infrastructure, as defined in section 35 of the tax law, and
certify manholes identified in such survey which qualify for such cred-
it. For the purposes of carrying out this section, the director of the
office of homeland security may request that an initial survey be
completed by the entities which own or maintain access points to such
underground infrastructure, and that such entities provide information
regarding such access points and such infrastructure to the director,
provided however, that this section shall not be construed as requiring
such entities to provide such information, provided further however that
the director of the office of homeland security may decline to certify
any access point as being eligible for highly critical underground
infrastructure security tax credit when the entity which owns or
controls such access point fails to provide information requested by the
director. Nothing in this section shall be construed as limiting the
director of the office of homeland security for collecting, requesting,
or requiring any information as provided for elsewhere in law, or by
order or regulation.
S 6. This act shall take effect immediately.