S T A T E O F N E W Y O R K
________________________________________________________________________
5575
2013-2014 Regular Sessions
I N A S S E M B L Y
March 1, 2013
___________
Introduced by M. of A. KOLB, TEDISCO, BUTLER, CORWIN -- Multi-Sponsored
by -- M. of A. BARCLAY, CROUCH, DUPREY, FINCH, FITZPATRICK, GIGLIO,
GOODELL, HAWLEY, JORDAN, P. LOPEZ, McDONOUGH, McKEVITT, OAKS, RA,
RABBITT, RAIA, REILICH, SALADINO, TENNEY, THIELE -- read once and
referred to the Committee on Economic Development
AN ACT to amend the economic development law, in relation to establish-
ing an incentive program for manufacturers that maintain or increase
employment, and to amend the tax law, in relation to establishing tax
credit incentives for manufacturing firms enrolled in the program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "manufacturing preservation and enhancement act".
S 2. Legislative findings and intent. The legislature finds and deter-
mines that historically, manufacturing firms have helped to build our
state. Today, manufacturing jobs are an essential part of the state's
economy. Accordingly, the state should offer programs that foster growth
in this important sector of the state economy. The purpose of this
legislation is to establish a tax incentive program that would provide
tax credits to manufacturing firms that create new jobs in the manufac-
turing sector over a specified period of time.
S 3. The economic development law is amended by adding a new article
15 to read as follows:
ARTICLE 15
MANUFACTURING PRESERVATION AND ENHANCEMENT ACT
SECTION 270. DEFINITIONS.
271. MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM.
272. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS.
273. REPORTING.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08255-01-3
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S 270. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTENT SHALL INDI-
CATE ANOTHER OR DIFFERENT MEANING OR INTENT:
1. "PROGRAM" SHALL MEAN THE MANUFACTURING PRESERVATION AND ENHANCEMENT
PROGRAM ESTABLISHED PURSUANT TO THIS ARTICLE.
2. "MANUFACTURING FIRM" SHALL MEAN AN ENTERPRISE, INCLUDING CORPORATE
ENTITIES, PARTNERSHIPS AND SOLE PROPRIETORS, ENGAGED IN THE BUSINESS OF
PRODUCTION OF GOODS AND PRODUCTS FROM RAW MATERIALS.
3. "BENCHMARK" SHALL MEAN A SPECIFIC NUMBER OF ELIGIBLE NEW JOBS
CREATED IN THE STATE PURSUANT TO THE PROGRAM.
4. "MEI" SHALL MEAN THE MANUFACTURING ENHANCEMENT INCENTIVE PROGRAM.
S 271. MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM. 1. THERE
IS HEREBY CREATED A MANUFACTURING PRESERVATION AND ENHANCEMENT PROGRAM
WITHIN THE DEPARTMENT TO PROVIDE TECHNICAL AND FINANCIAL ASSISTANCE IN
THE FORM OF TAX INCENTIVES TO MANUFACTURING FIRMS THAT MEET SPECIFIED
BENCHMARKS IN JOB CREATION AS ESTABLISHED BY THE COMMISSIONER.
2. THE COMMISSIONER SHALL DETERMINE ELIGIBILITY REQUIREMENTS FOR
PARTICIPATION IN THE PROGRAM, PROVIDED, HOWEVER, THAT SUCH REQUIREMENTS
SHALL INCLUDE THE FOLLOWING:
(A) AN APPLICANT TO THE PROGRAM MAY NOT PARTICIPATE IN THE PROGRAM IF
DESIGNATED AS A CERTIFIED BUSINESS LOCATED IN AN EMPIRE ZONE CREATED
PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW; AND
(B) AN APPLICANT THAT HAS PREVIOUSLY PARTICIPATED IN THE PROGRAM MAY
NOT REAPPLY FOR PARTICIPATION IN THE PROGRAM UNLESS IT CAN DOCUMENT THAT
AT THE TIME OF ITS REAPPLICATION FOR PARTICIPATION, IT HAS MAINTAINED A
LEVEL OF EMPLOYMENT AT LEAST AS GREAT AS THE HIGHEST LEVEL REQUIRED
DURING ITS PREVIOUS PARTICIPATION IN THE PROGRAM.
3. APPLICATIONS FOR PARTICIPATION IN THE MEI SHALL BE SUBMITTED BY
EACH MANUFACTURING FIRM SEEKING TO PARTICIPATE IN THE PROGRAM, AND SHALL
BE IN THE FORM AND CONTAIN SUCH INFORMATION, EXHIBITS AND SUPPORTING
DATA AS THE COMMISSIONER MAY PRESCRIBE. NO APPLICATIONS FOR PARTIC-
IPATION SHALL BE ACCEPTED AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND
TWENTY-ONE.
4. MANUFACTURING FIRMS INTERESTED IN PARTICIPATING IN THE MEI SHALL
SUBMIT AN APPLICATION TO THE PROGRAM. THE COMMISSIONER SHALL REVIEW ALL
APPLICATIONS FOR PARTICIPATION IN THE PROGRAM FOR ELIGIBILITY AND SHALL
REGISTER ELIGIBLE APPLICANTS. THE COMMISSIONER SHALL PROVIDE EACH REGIS-
TERED APPLICANT WITH BENCHMARKS IN JOB CREATION THAT MUST BE ACHIEVED BY
THE REGISTERED APPLICANT OVER THE FOLLOWING ONE YEAR. SUCH BENCHMARKS
SHALL BE CONSISTENT WITH REGULATIONS TO BE PRESCRIBED BY THE COMMISSION-
ER. ANNUALLY, EACH REGISTERED APPLICANT SHALL SUBMIT TO THE COMMISSIONER
A REGISTRATION STATEMENT, TOGETHER WITH SUCH INFORMATION, EXHIBITS AND
SUPPORTING DATA AS THE COMMISSIONER MAY REQUIRE. UPON SUBMISSION OF THE
SECOND ANNUAL REGISTRATION STATEMENT, THE COMMISSIONER SHALL REVIEW THE
REGISTERED APPLICANT'S FILE FOR ELIGIBILITY FOR THE TAX INCENTIVES. IF
THE REGISTERED APPLICANT HAS MET THE REQUIRED BENCHMARKS IN JOB
CREATION, THE COMMISSIONER SHALL PROVIDE A CERTIFICATE, VALID FOR THE
SUCCEEDING FIVE TAX YEARS, CERTIFYING THAT THE REGISTERED APPLICANT IS
ELIGIBLE FOR TAX CREDITS PURSUANT TO THIS ARTICLE. THE MEI CERTIFICATE
SHALL INCLUDE A DESCRIPTION OF THE PROPERTY ELIGIBLE FOR THE PROPERTY
TAX BENEFIT AND SHALL SPECIFY THE EMPLOYMENT LEVEL AND TOTAL AMOUNT OF
EMPLOYEE GROSS SALARY ELIGIBLE FOR THE WAGE CREDIT.
S 272. SPECIAL PROVISIONS RELATING TO CERTIFIED MANUFACTURERS. DURING
THE FIVE-YEAR CERTIFICATION PERIOD, CERTIFIED MANUFACTURING FIRMS SHALL
BE ELIGIBLE TO RECEIVE THE FOLLOWING TAX CREDITS:
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1. AN MEI PROPERTY TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO
SECTION EIGHT HUNDRED FIFTY-ONE OF THE TAX LAW;
2. AN MEI WAGE TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO SECTION
EIGHT HUNDRED FIFTY-TWO OF THE TAX LAW; AND
3. AN MEI ENERGY TAX CREDIT, WHICH SHALL BE COMPUTED PURSUANT TO
SECTION EIGHT HUNDRED FIFTY-THREE OF THE TAX LAW.
S 273. REPORTING. THE COMMISSIONER SHALL, ON OR BEFORE SEPTEMBER
FIRST, TWO THOUSAND FIFTEEN, AND ANNUALLY THEREAFTER, SUBMIT A REPORT TO
THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE MINORITY LEADER OF THE SENATE AND THE MINORITY LEADER OF
THE ASSEMBLY ON THE OPERATION AND ACCOMPLISHMENTS OF THE PROGRAM
PROVIDED FOR PURSUANT TO THIS ARTICLE.
S 4. The tax law is amended by adding a new article 24 to read as
follows:
ARTICLE 24
MANUFACTURING PRESERVATION AND ENHANCEMENT ACT
SECTION 851. MEI PROPERTY TAX CREDIT.
852. MEI WAGE TAX CREDIT.
853. MEI ENERGY TAX CREDIT.
S 851. MEI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
RECEIVING AN MEI CERTIFICATE ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE
ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO IS SUBJECT TO PROPERTY TAXES
UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL BE
ALLOWED A CREDIT AGAINST THE PROPERTY TAXES ASSESSED UNDER ARTICLE
NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT
THE CERTIFICATE IS VALID, PROVIDED, AND TO THE EXTENT THAT, THE TAXES
ASSESSED CONSTITUTE ELIGIBLE REAL PROPERTY TAXES AS DEFINED IN
SUBSECTION (B) OF THIS SECTION. THE CREDIT SHALL BE COMPUTED PURSUANT TO
THE PROVISIONS OF SUBSECTION (C) OF THIS SECTION.
(B) DEFINITION. THE TERM "ELIGIBLE REAL PROPERTY TAXES" SHALL MEAN TAX
IMPOSED ON REAL PROPERTY WHICH HAS BEEN CERTIFIED AS MEI ELIGIBLE PROP-
ERTY PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW. IN
ADDITION, THE TERM "ELIGIBLE REAL PROPERTY TAXES" INCLUDES PAYMENTS IN
LIEU OF TAXES MADE BY THE TAXPAYER TO THE STATE, A MUNICIPAL CORPORATION
OR A PUBLIC BENEFIT CORPORATION PURSUANT TO A WRITTEN AGREEMENT ENTERED
INTO BY THE TAXPAYER AND THE STATE, MUNICIPAL CORPORATION OR PUBLIC
BENEFIT CORPORATION.
(C) COMPUTATION OF PROPERTY TAX CREDIT. THE PROPERTY TAX CREDIT
DESCRIBED IN THIS SECTION SHALL BE A FLAT TEN PERCENT OF THE PROPERTY
TAX ASSESSED.
S 852. MEI WAGE TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
RECEIVING AN MEI CERTIFICATE THAT HAS BEEN ISSUED PURSUANT TO ARTICLE
FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO IS SUBJECT TO
TAXES UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL
BE ALLOWED A CREDIT AGAINST THE TAXES ASSESSED UNDER ARTICLE NINE-A OR
ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT THE CERTIF-
ICATE IS VALID. THE CREDIT SHALL BE COMPUTED PURSUANT TO THE PROVISIONS
OF SUBSECTION (C) OF THIS SECTION.
(B) DEFINITIONS. THE TERM "ELIGIBLE WAGES" SHALL MEAN THE TOTAL AMOUNT
OF EMPLOYEE GROSS SALARY ELIGIBLE FOR THE WAGE TAX CREDIT, AS SUCH
AMOUNT IS SPECIFIED IN THE MEI CERTIFICATE ISSUED PURSUANT TO ARTICLE
FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW.
(C) COMPUTATION OF WAGE TAX CREDIT. (1) DURING THE FIRST TAX YEAR OF
THE FIVE-YEAR PERIOD FOR WHICH A VALID MEI CERTIFICATE HAS BEEN ISSUED
PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, PROVIDED
THE TAXPAYER HAS MAINTAINED THE EMPLOYMENT AND ELIGIBLE WAGE REQUIRE-
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MENTS SPECIFIED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC
DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED A CREDIT OF ONE AND ONE-
HALF PERCENT OF THE TOTAL AMOUNT OF THE ELIGIBLE WAGES ACTUALLY PAID BY
THE TAXPAYER. IF THE TAXPAYER INCREASES EMPLOYMENT DURING THIS TAX YEAR,
AND EXCEEDS THE LEVEL OF EMPLOYMENT REQUIRED BY THE MEI AS DEFINED IN
ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, HIRING AND MAINTAINING
ADDITIONAL EMPLOYEES AND PAYING ADDITIONAL WAGES OVER AND ABOVE THE
ELIGIBLE WAGES AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CRED-
IT OF TWO AND ONE-HALF PERCENT OF THE TOTAL AMOUNT BY WHICH THE WAGES
ACTUALLY PAID AS A RESULT OF THE INCREASED LEVEL OF EMPLOYMENT EXCEED
THE ELIGIBLE WAGES.
(2) DURING THE SECOND TAX YEAR OF THE FIVE-YEAR PERIOD FOR WHICH A
VALID MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE
ECONOMIC DEVELOPMENT LAW, PROVIDED THE TAXPAYER HAS MAINTAINED THE
EMPLOYMENT AND ELIGIBLE WAGE REQUIREMENTS SPECIFIED BY THE MEI AS
DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, THE TAXPAYER
SHALL BE ALLOWED A CREDIT OF ONE AND ONE-HALF PERCENT OF THE TOTAL
AMOUNT OF THE ELIGIBLE WAGES ACTUALLY PAID BY THE TAXPAYER; HOWEVER, IF
THE TAXPAYER INCREASED EMPLOYMENT IN THE PRECEDING TAX YEAR AND CLAIMED
THE TWO AND ONE-HALF PERCENT CREDIT FOR EMPLOYMENT AND PAYMENT OF WAGES
IN EXCESS OF THE MEI REQUIREMENTS PURSUANT TO ARTICLE FIFTEEN OF THE
ECONOMIC DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED A CREDIT OF ONE
AND ONE-HALF PERCENT OF THE TOTAL AMOUNT OF THE ELIGIBLE WAGES ACTUALLY
PAID BY THE TAXPAYER DURING THE PRECEDING TAX YEAR, PROVIDED THE TAXPAY-
ER HAS MAINTAINED THE INCREASED EMPLOYMENT AND SALARY LEVELS. IF THE
TAXPAYER AGAIN INCREASES EMPLOYMENT, HIRING AND MAINTAINING ADDITIONAL
EMPLOYEES AND PAYING ADDITIONAL WAGES OVER AND ABOVE THE PREVIOUS TAX
YEAR'S AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CREDIT OF TWO
AND ONE-HALF PERCENT OF THE TOTAL AMOUNT BY WHICH THE WAGES ACTUALLY
PAID AS A RESULT OF THE INCREASED LEVEL OF EMPLOYMENT EXCEED THE WAGES
SUBJECT TO THE ONE AND ONE-HALF PERCENT CREDIT.
S 853. MEI ENERGY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
RECEIVING AN MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN
OF THE ECONOMIC DEVELOPMENT LAW, AND THAT OR WHO IS SUBJECT TO TAXES
UNDER ARTICLE NINE-A OR ARTICLE TWENTY-TWO OF THIS CHAPTER, SHALL BE
ALLOWED A CREDIT AGAINST THE TAXES ASSESSED UNDER ARTICLE NINE-A OR
ARTICLE TWENTY-TWO OF THIS CHAPTER DURING THE TAX YEARS THAT THE CERTIF-
ICATE IS VALID. THE CREDIT SHALL BE COMPUTED PURSUANT TO THE PROVISIONS
OF SUBSECTION (C) OF THIS SECTION.
(B) DEFINITION. THE TERM "ELIGIBLE ENERGY COSTS" SHALL MEAN THE
AMOUNTS PAID BY THE TAXPAYER FOR ELECTRICITY, NATURAL GAS, OR ANY OTHER
ENERGY PRODUCT OR SERVICE WHICH THE TAXPAYER HAS USED IN THE OPERATION
OF A MEI CERTIFIED MANUFACTURING FIRM FACILITY PURSUANT TO ARTICLE
FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW.
(C) COMPUTATION OF ENERGY CREDIT. (1) IF THE TAXPAYER HAS PAID ELIGI-
BLE ENERGY COSTS DURING THE FIRST TAX YEAR OF THE FIVE-YEAR PERIOD FOR
WHICH A VALID MEI CERTIFICATE HAS BEEN ISSUED PURSUANT TO ARTICLE
FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, PROVIDED THE TAXPAYER HAS MAIN-
TAINED THE EMPLOYMENT AND ELIGIBLE WAGES REQUIREMENTS SPECIFIED BY THE
MEI AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, THE
TAXPAYER SHALL BE ALLOWED AN ENERGY CREDIT OF TWENTY-FIVE DOLLARS PER
EMPLOYEE REQUIRED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN OF THE
ECONOMIC DEVELOPMENT LAW. IF THE TAXPAYER INCREASES EMPLOYMENT DURING
THIS TAX YEAR, AND EXCEEDS THE LEVEL OF EMPLOYMENT REQUIRED BY THE MEI
AS DEFINED IN ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW, HIRING
AND MAINTAINING ADDITIONAL EMPLOYEES AND PAYING ADDITIONAL WAGES OVER
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AND ABOVE THE ELIGIBLE WAGES AMOUNT, THE TAXPAYER SHALL BE ALLOWED AN
ADDITIONAL ENERGY CREDIT OF FIFTY DOLLARS PER EACH ADDITIONAL EMPLOYEE.
THE ENERGY TAX CREDIT SHALL NOT EXCEED THE AMOUNT OF ELIGIBLE ENERGY
COSTS ACTUALLY PAID BY THE TAXPAYER.
(2) IF THE TAXPAYER HAS PAID ELIGIBLE ENERGY COSTS DURING THE SECOND
TAX YEAR OF THE FIVE-YEAR PERIOD FOR WHICH A VALID MEI CERTIFICATE HAS
BEEN ISSUED PURSUANT TO ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW,
PROVIDED THE TAXPAYER HAS MAINTAINED THE EMPLOYMENT AND ELIGIBLE WAGE
REQUIREMENTS SPECIFIED BY THE MEI AS DEFINED IN ARTICLE FIFTEEN OF THE
ECONOMIC DEVELOPMENT LAW, THE TAXPAYER SHALL BE ALLOWED AN ENERGY CREDIT
OF TWENTY-FIVE DOLLARS PER EMPLOYEE REQUIRED BY THE MEI AS DEFINED IN
ARTICLE FIFTEEN OF THE ECONOMIC DEVELOPMENT LAW; HOWEVER, IF THE TAXPAY-
ER INCREASED EMPLOYMENT DURING THE PRECEDING TAX YEAR AND CLAIMED THE
ADDITIONAL ENERGY TAX CREDIT OF FIFTY DOLLARS PER ADDITIONAL EMPLOYEE,
THE TAXPAYER SHALL BE ALLOWED A CREDIT OF TWENTY-FIVE DOLLARS PER
EMPLOYEE UP TO THE NUMBER OF EMPLOYEES CLAIMED IN THE PREVIOUS TAX YEAR,
PROVIDED THE TAXPAYER HAS MAINTAINED THE INCREASED EMPLOYMENT AND WAGE
LEVELS. IF THE TAXPAYER AGAIN INCREASES EMPLOYMENT, HIRING ADDITIONAL
EMPLOYEES AND PAYING ADDITIONAL WAGES OVER AND ABOVE THE PREVIOUS TAX
YEAR'S AMOUNTS, THE TAXPAYER SHALL BE ALLOWED AN ADDITIONAL CREDIT OF
FIFTY DOLLARS FOR EACH ADDITIONAL EMPLOYEE HIRED DURING THE SECOND YEAR.
THE ENERGY TAX CREDIT SHALL NOT EXCEED THE AMOUNT OF ELIGIBLE ENERGY
COSTS ACTUALLY PAID BY THE TAXPAYER.
S 5. Section 210 of the tax law is amended by adding three new subdi-
visions 46, 47 and 48 to read as follows:
46. MEI PROPERTY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED
FIFTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
47. MEI WAGE TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, TO BE COMPUTED
AS PROVIDED IN SECTION EIGHT HUNDRED FIFTY-TWO OF THIS CHAPTER, AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
(B) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
48. MEI ENERGY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, TO BE
COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED FIFTY-THREE OF THIS CHAP-
TER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION ONE OF THIS SECTION; PROVIDED, HOWEVER, IF THE AMOUNT OF THIS CRED-
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IT ALLOWABLE UNDER THIS SECTION FOR ANY TAXABLE YEAR REDUCES TAX TO SUCH
AMOUNT, ANY AMOUNT OF THE CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY
BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law, is amended by adding three new clauses (xxxv), (xxxvi)
and (xxxvii) to read as follows:
(XXXV) MEI PROPERTY TAX CREDIT AMOUNT OF MEI PROPERTY TAX CREDIT
UNDER SUBSECTION (VV) UNDER SUBDIVISION FORTY-SIX OF
SECTION TWO HUNDRED TEN
(XXXVI) MEI WAGE TAX CREDIT UNDER AMOUNT OF MEI WAGE TAX CREDIT
SUBSECTION (WW) UNDER SUBDIVISION FORTY-SEVEN OF
SECTION TWO HUNDRED TEN
(XXXVII) MEI ENERGY TAX CREDIT UNDER AMOUNT OF MEI ENERGY TAX CREDIT
SUBSECTION (XX) UNDER SUBDIVISION FORTY-EIGHT OF
SECTION TWO HUNDRED TEN
S 7. Section 606 of the tax law is amended by adding three new
subsections (vv), (ww) and (xx) to read as follows:
(VV) MEI PROPERTY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT
HUNDRED FIFTY-ONE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
(WW) MEI WAGE TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED
FIFTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
(XX) MEI ENERGY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION EIGHT HUNDRED
FIFTY-THREE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
S 8. Subparagraph (vi) of paragraph (a) of subdivision 1 of section
210 of the tax law, as amended by section 1 of part C of chapter 56 of
the laws of 2011, is amended to read as follows:
(vi) for taxable years beginning on or after January thirty-first, two
thousand seven, the amount prescribed by this paragraph for a taxpayer
which is a qualified New York manufacturer, shall be computed at the
rate of six and one-half (6.5) percent of the taxpayer's entire net
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income base. For taxable years beginning on or after January first, two
thousand twelve [and before January first, two thousand fifteen], the
amount prescribed by this paragraph for a taxpayer which is [an eligi-
ble] A qualified New York manufacturer shall be computed at the rate of
three and one-quarter (3.25) percent of the taxpayer's entire net income
base. The term "manufacturer" shall mean a taxpayer which during the
taxable year is principally engaged in the production of goods by manu-
facturing, processing, assembling, refining, mining, extracting, farm-
ing, agriculture, horticulture, floriculture, viticulture or commercial
fishing. However, the generation and distribution of electricity, the
distribution of natural gas, and the production of steam associated with
the generation of electricity shall not be qualifying activities for a
manufacturer under this subparagraph. Moreover, the combined group shall
be considered a "manufacturer" for purposes of this subparagraph only if
the combined group during the taxable year is principally engaged in the
activities set forth in this paragraph, or any combination thereof. A
taxpayer or a combined group shall be "principally engaged" in activ-
ities described above if, during the taxable year, more than fifty
percent of the gross receipts of the taxpayer or combined group, respec-
tively, are derived from receipts from the sale of goods produced by
such activities. In computing a combined group's gross receipts, inter-
corporate receipts shall be eliminated. A "qualified New York manufac-
turer" is a manufacturer which has property in New York which is
described in clause (A) of subparagraph (i) of paragraph (b) of subdivi-
sion twelve of this section and either (I) the adjusted basis of such
property for federal income tax purposes at the close of the taxable
year is at least one million dollars or (II) all of its real and
personal property is located in New York. In addition, a "qualified New
York manufacturer" means a taxpayer which is defined as a qualified
emerging technology company under paragraph (c) of subdivision one of
section thirty-one hundred two-e of the public authorities law regard-
less of the ten million dollar limitation expressed in subparagraph one
of such paragraph (c). [The commissioner shall establish guidelines and
criteria that specify requirements by which a manufacturer may be clas-
sified as an eligible qualified New York manufacturer. Criteria may
include but not be limited to factors such as regional unemployment, the
economic impact that manufacturing has on the surrounding community,
population decline within the region and median income within the region
in which the manufacturer is located. In establishing these guidelines
and criteria, the commissioner shall endeavor that the total annual cost
of the lower rates shall not exceed twenty-five million dollars.]
S 9. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210
of the tax law, as amended by section 1 of part GG-1 of chapter 57 of
the laws of 2008, is amended to read as follows:
(1) The amount prescribed by this paragraph for taxable years begin-
ning before January first, two thousand eight shall be computed at .178
percent for each dollar of the taxpayer's total business and investment
capital, or the portion thereof allocated within the state as hereinaft-
er provided. For taxable years beginning on or after January first, two
thousand eight, the amount prescribed by this paragraph shall be
computed at .15 percent for each dollar of the taxpayer's total business
and investment capital, or the portion thereof allocated within the
state as hereinafter provided. However, in the case of a cooperative
housing corporation as defined in the internal revenue code, the appli-
cable rate shall be .04 percent. FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, THE AMOUNT PRESCRIBED BY
A. 5575 8
THIS PARAGRAPH FOR A TAXPAYER WHICH IS A QUALIFIED NEW YORK MANUFACTURER
SHALL BE COMPUTED AT THE RATE OF .075 PERCENT OF THE TAXPAYER'S TOTAL
BUSINESS AND INVESTMENT CAPITAL, OR THE PORTION THEREOF ALLOCATED WITHIN
THE STATE AS HEREINAFTER PROVIDED. In no event shall the amount
prescribed by this paragraph exceed three hundred fifty thousand dollars
for qualified New York manufacturers and for all other taxpayers ten
million dollars for taxable years beginning on or after January first,
two thousand eight but before January first, two thousand eleven and one
million dollars for taxable years beginning on or after January first,
two thousand eleven.
S 10. Clause (B) of subparagraph (ii) of paragraph (c) of subdivision
1 of section 210 of the tax law, as amended by section 2 of part C of
chapter 56 of the laws of 2011, is amended to read as follows:
(B) For taxable years beginning on or after January first, two thou-
sand twelve [and before January first, two thousand fifteen], the amount
prescribed by this paragraph for [an eligible] A qualified New York
manufacturer shall be computed at the rate of seventy-five hundredths
(.75) percent of the taxpayer's minimum taxable income base. For
purposes of this clause, the term "[eligible] qualified New York
manufacturer" shall have the same meaning as in subparagraph (vi) of
paragraph (a) of this subdivision.
S 11. Subparagraph 5 of paragraph (d) of subdivision 1 of section 210
of the tax law, as added by section 3 of part C of chapter 56 of the
laws of 2011, is amended to read as follows:
(5) For taxable years beginning on or after January first, two thou-
sand twelve [and before January first, two thousand fifteen], the
amounts prescribed in subparagraphs one and four of this paragraph as
the fixed dollar minimum tax for [an eligible] A qualified New York
manufacturer shall be one-half of the amounts stated in those subpara-
graphs. For purposes of this subparagraph, the term "[eligible] quali-
fied New York manufacturer" shall have the same meaning as in subpara-
graph (vi) of paragraph (a) of this subdivision.
S 12. This act shall take effect on the one hundred eightieth day
after it shall have become a law and shall apply to taxable years begin-
ning on or after January 1, 2014 and before January 1, 2021; provided,
however, that the addition, amendment and/or repeal of any rule or regu-
lation necessary for the implementation of this act on its effective
date are authorized and directed to be made on or before such date.