A. 8096 2
LAW, AND PROVIDING TWO-YEAR OR FOUR-YEAR POST SECONDARY PROGRAMS IN
GENERAL AND TECHNICAL EDUCATIONAL SUBJECTS AND RECEIVING FINANCIAL
ASSISTANCE FROM THE STATE, OTHER THAN A COMMUNITY COLLEGE OF THE CITY
UNIVERSITY OF NEW YORK.
3. "CITY UNIVERSITY CAMPUS" MEANS A CAMPUS OF THE CITY UNIVERSITY OF
NEW YORK, AS DEFINED IN SUBDIVISION TWO OF SECTION SIXTY-TWO HUNDRED TWO
OF THE EDUCATION LAW.
4. "PRIVATE COLLEGE OR UNIVERSITY" MEANS A NOT-FOR-PROFIT TWO OR FOUR
YEAR UNIVERSITY OR COLLEGE GIVEN THE POWER TO CONFER ASSOCIATE, BACCA-
LAUREATE OR HIGHER DEGREES IN THIS STATE BY THE LEGISLATURE OR BY THE
REGENTS UNDER ARTICLE FIVE OF THE EDUCATION LAW.
5. "NET NEW JOB" MEANS A JOB CREATED IN A TAX-FREE NY AREA THAT SATIS-
FIES ALL OF THE FOLLOWING CRITERIA:
(A) IS NEW TO THE STATE;
(B) HAS NOT BEEN TRANSFERRED FROM EMPLOYMENT WITH ANOTHER BUSINESS
LOCATED IN THIS STATE, THROUGH AN ACQUISITION, MERGER, CONSOLIDATION OR
OTHER REORGANIZATION OF BUSINESSES OR THE ACQUISITION OF ASSETS OF
ANOTHER BUSINESS, OR EXCEPT AS PROVIDED IN PARAGRAPH (D) OF SUBDIVISION
SIX OF THIS SECTION HAS NOT BEEN TRANSFERRED FROM EMPLOYMENT WITH A
RELATED PERSON IN THIS STATE;
(C) IS NOT FILLED BY AN INDIVIDUAL EMPLOYED WITHIN THE STATE WITHIN
THE IMMEDIATELY PRECEDING SIXTY MONTHS BY A RELATED PERSON;
(D) IS EITHER A FULL-TIME WAGE-PAYING JOB OR EQUIVALENT TO A FULL-TIME
WAGE-PAYING JOB REQUIRING AT LEAST THIRTY-FIVE HOURS PER WEEK; AND
(E) IS FILLED FOR MORE THAN SIX MONTHS.
6. "NEW BUSINESS" MEANS A BUSINESS THAT SATISFIES ALL OF THE FOLLOWING
TESTS:
(A) THE BUSINESS MUST NOT BE OPERATING OR LOCATED WITHIN THE STATE AT
THE TIME IT SUBMITS ITS APPLICATION TO PARTICIPATE IN THE START-UP NY
PROGRAM;
(B) THE BUSINESS MUST NOT BE MOVING EXISTING JOBS INTO THE TAX-FREE NY
AREA FROM ANOTHER AREA IN THE STATE;
(C) THE BUSINESS IS NOT SUBSTANTIALLY SIMILAR IN OPERATION AND IN
OWNERSHIP TO A BUSINESS ENTITY (OR ENTITIES) TAXABLE, OR PREVIOUSLY
TAXABLE WITHIN THE LAST FIVE TAXABLE YEARS, UNDER SECTION ONE HUNDRED
EIGHTY-THREE, ONE HUNDRED EIGHTY-FOUR, ONE HUNDRED EIGHTY-FIVE OR ONE
HUNDRED EIGHTY-SIX OF THE TAX LAW, ARTICLE NINE-A, THIRTY-TWO OR THIR-
TY-THREE OF THE TAX LAW, 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) INCLUDABLE UNDER ARTICLE TWEN-
TY-TWO OF THE TAX LAW; AND
(D) THE BUSINESS MUST NOT HAVE CAUSED INDIVIDUALS TO TRANSFER FROM
EXISTING EMPLOYMENT WITH A RELATED PERSON LOCATED IN THE STATE TO SIMI-
LAR EMPLOYMENT WITH THE BUSINESS, UNLESS SUCH BUSINESS HAS RECEIVED
APPROVAL FOR SUCH TRANSFERS FROM THE COMMISSIONER AFTER DEMONSTRATING
THAT THE RELATED PERSON HAS NOT ELIMINATED THOSE EXISTING POSITIONS.
7. "TAX-FREE NY AREA" MEANS THE LAND OR VACANT SPACE OF A UNIVERSITY
OR COLLEGE THAT MEETS THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION FOUR
HUNDRED THIRTY-TWO OF THIS ARTICLE AND THAT HAS BEEN APPROVED AS A TAX-
FREE NY AREA PURSUANT TO THE PROVISIONS IN SECTION FOUR HUNDRED THIRTY-
FIVE OF THIS ARTICLE. IT ALSO MEANS A STRATEGIC STATE ASSET THAT HAS
BEEN APPROVED BY THE START-UP NY APPROVAL BOARD PURSUANT TO THE
PROVISIONS OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED THIRTY-FIVE OF
THIS ARTICLE.
A. 8096 3
8. "RELATED PERSON" MEANS A "RELATED PERSON" PURSUANT TO SUBPARAGRAPH
(C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-
FIVE OF THE INTERNAL REVENUE CODE.
9. "STRATEGIC STATE ASSET" MEANS LAND OR A BUILDING OR GROUP OF BUILD-
INGS OWNED BY THE STATE OF NEW YORK, THAT IS: (A) CLOSED; (B) VACANT; OR
(C) FOR WHICH NOTICE OF CLOSURE HAS BEEN GIVEN PURSUANT TO ANY STATUTORY
NOTICE REQUIREMENT OR WHICH IS OTHERWISE AUTHORIZED TO BE CLOSED PURSU-
ANT TO ANY CHAPTER OF THE LAWS OF NEW YORK.
10. "START-UP NY APPROVAL BOARD" OR "BOARD" MEANS A BOARD CONSISTING
OF THREE MEMBERS, ONE EACH APPOINTED BY THE GOVERNOR, THE SPEAKER OF THE
ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE. EACH MEMBER OF THE
START-UP NY APPROVAL BOARD MUST HAVE SIGNIFICANT EXPERTISE AND EXPERI-
ENCE IN ACADEMIC BASED ECONOMIC DEVELOPMENT AND MAY NOT HAVE A PERSONAL
INTEREST IN ANY PROJECT THAT COMES BEFORE THE BOARD.
11. "UNDERUTILIZED PROPERTY" MEANS VACANT OR ABANDONED LAND OR SPACE
IN AN EXISTING INDUSTRIAL PARK, MANUFACTURING FACILITY, A BROWNFIELD
SITE AS DEFINED IN ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVA-
TION LAW, OR A DISTRESSED OR ABANDONED PROPERTY, WHICH SHALL BE DETER-
MINED BY FACTORS INCLUDING POVERTY, IDENTIFIED BY THE COUNTY OR THE
TOWN, VILLAGE OR CITY THAT CONTAINS SUCH DISTRESSED OR ABANDONED PROPER-
TY, AS OF THE EFFECTIVE DATE OF THIS ARTICLE. A COLLEGE OR UNIVERSITY
SHALL WORK WITH LOCAL MUNICIPALITIES OR LOCAL ECONOMIC DEVELOPMENT ENTI-
TIES TO IDENTIFY UNDERUTILIZED PROPERTIES.
12. "ELIGIBLE LAND" MEANS LAND ELIGIBLE PURSUANT TO SECTION FOUR
HUNDRED THIRTY-TWO OF THIS ARTICLE FOR APPROVAL AS A TAX-FREE NY AREA.
13. "SPONSORING CAMPUS, UNIVERSITY OR COLLEGE" MEANS A UNIVERSITY OR
COLLEGE THAT HAS RECEIVED APPROVAL TO SPONSOR A TAX-FREE NY AREA PURSU-
ANT TO SECTION FOUR HUNDRED THIRTY-FIVE OF THIS ARTICLE.
S 432. ELIGIBILITY CRITERIA FOR UNIVERSITIES AND COLLEGES. 1. STATE
UNIVERSITY CAMPUSES, COMMUNITY COLLEGES AND CITY UNIVERSITY CAMPUSES.
(A) SUBJECT TO THE LIMITATIONS IN PARAGRAPH (C) OF THIS SUBDIVISION, THE
FOLLOWING WILL CONSTITUTE THE ELIGIBLE LAND OF A STATE UNIVERSITY
CAMPUS, COMMUNITY COLLEGE, OR CITY UNIVERSITY CAMPUS:
(I) ANY VACANT SPACE IN ANY BUILDING LOCATED ON A CAMPUS OF A STATE
UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY UNIVERSITY CAMPUS;
(II) ANY VACANT LAND ON A CAMPUS OF A STATE UNIVERSITY CAMPUS, COMMU-
NITY COLLEGE OR CITY UNIVERSITY CAMPUS;
(III) FOR A STATE UNIVERSITY CAMPUS OR COMMUNITY COLLEGE, A TOTAL OF
TWO HUNDRED THOUSAND SQUARE FEET OF VACANT LAND OR VACANT BUILDING SPACE
THAT, EXCEPT AS PROVIDED UNDER PARAGRAPH (B) OF THIS SUBDIVISION, IS
LOCATED WITHIN ONE MILE OF A CAMPUS OF THE STATE UNIVERSITY CAMPUS OR
COMMUNITY COLLEGE; PROVIDED THAT THIS SUBPARAGRAPH SHALL NOT APPLY TO A
STATE UNIVERSITY CAMPUS OR COMMUNITY COLLEGE LOCATED IN NASSAU COUNTY,
SUFFOLK COUNTY OR WESTCHESTER COUNTY; AND
(IV) A NEW YORK STATE INCUBATOR AS THE TERM IS USED IN SUBDIVISION
FOUR OF SECTION FOUR HUNDRED THIRTY-THREE OF THIS ARTICLE WITH A BONA
FIDE AFFILIATION TO THE STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR
CITY UNIVERSITY CAMPUS, WITH APPROVAL OF THE COMMISSIONER. IN ORDER FOR
THERE TO BE A BONA FIDE AFFILIATION OF A NEW YORK STATE INCUBATOR WITH A
STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY UNIVERSITY CAMPUS,
THE INCUBATOR AND THE STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY
UNIVERSITY CAMPUS MUST HAVE A PARTNERSHIP TO PROVIDE ASSISTANCE AND
PHYSICAL SPACE TO ELIGIBLE BUSINESSES, AS THE TERM IS USED IN SECTION
SIXTEEN-V OF THE URBAN DEVELOPMENT CORPORATION ACT; THE INCUBATOR AND
THE STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY UNIVERSITY CAMPUS
MUST DIRECTLY WORK TOWARDS THE GOALS OF JOINTLY CREATING JOBS AND INCU-
A. 8096 4
BATING NEW STARTUP BUSINESSES; AND THE MISSION AND ACTIVITIES OF THE
INCUBATOR MUST ALIGN WITH OR FURTHER THE ACADEMIC MISSION OF THE STATE
UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY UNIVERSITY CAMPUS.
(B) A STATE UNIVERSITY CAMPUS OR COMMUNITY COLLEGE WHICH QUALIFIES
UNDER SUBPARAGRAPH (III) OF PARAGRAPH (A) OF THIS SUBDIVISION MAY APPLY
TO THE COMMISSIONER FOR A DETERMINATION THAT IDENTIFIED VACANT LAND OR
IDENTIFIED VACANT SPACE IN A BUILDING THAT IS LOCATED MORE THAN ONE MILE
FROM ITS CAMPUS, AND IS NOT LOCATED IN NASSAU COUNTY, SUFFOLK COUNTY,
WESTCHESTER COUNTY OR NEW YORK CITY, IS ELIGIBLE LAND FOR PURPOSES OF
THIS PROGRAM. THE COMMISSIONER SHALL GIVE CONSIDERATION TO FACTORS
INCLUDING RURAL, SUBURBAN AND URBAN GEOGRAPHIC CONSIDERATIONS AND MAY
QUALIFY THE IDENTIFIED LAND OR SPACE IN A BUILDING AS ELIGIBLE LAND IF
THE COMMISSIONER, IN CONSULTATION WITH THE CHANCELLOR OR HIS OR HER
DESIGNEE, DETERMINES THAT THE STATE UNIVERSITY CAMPUS OR COMMUNITY
COLLEGE HAS SHOWN THAT THE USE OF THE LAND OR SPACE WILL BE CONSISTENT
WITH THE REQUIREMENTS OF THIS PROGRAM AND THE PLAN SUBMITTED BY THE
STATE UNIVERSITY CAMPUS OR COMMUNITY COLLEGE PURSUANT TO SECTION FOUR
HUNDRED THIRTY-FIVE OF THIS ARTICLE. IN ADDITION, TWO HUNDRED THOUSAND
SQUARE FEET OF VACANT LAND OR VACANT BUILDING SPACE AFFILIATED WITH OR
IN PARTNERSHIP WITH MARITIME COLLEGE SHALL BE ELIGIBLE UNDER THIS PARA-
GRAPH. THE AGGREGATE AMOUNT OF QUALIFIED LAND OR SPACE UNDER THIS PARA-
GRAPH AND SUBPARAGRAPH (III) OF PARAGRAPH (A) OF THIS SUBDIVISION MAY
NOT EXCEED TWO HUNDRED THOUSAND SQUARE FEET FOR A STATE UNIVERSITY
CAMPUS OR COMMUNITY COLLEGE.
(C) THE PROVISIONS OF PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION SHALL
APPLY ONLY TO:
(I) A STATE UNIVERSITY CAMPUS OTHER THAN THE FOLLOWING: (A) ANY EMPIRE
STATE COLLEGE CAMPUS EXCEPT FOR THE EMPIRE STATE COLLEGE CAMPUS IN SARA-
TOGA SPRINGS, (B) ANY PROPERTY OF DOWNSTATE MEDICAL CENTER LOCATED IN
NASSAU COUNTY, SUFFOLK COUNTY, WESTCHESTER COUNTY OR NEW YORK CITY
EXCEPT FOR PROPERTY AFFILIATED WITH DOWNSTATE MEDICAL CENTER THAT
CONSTITUTES A NEW YORK STATE INCUBATOR AS THE TERM IS USED IN SUBDIVI-
SION FOUR OF SECTION FOUR HUNDRED THIRTY-THREE OF THIS ARTICLE, AND (C)
ANY PROPERTY OF THE COLLEGE OF OPTOMETRY OR MARITIME COLLEGE LOCATED IN
NASSAU COUNTY, SUFFOLK COUNTY, WESTCHESTER COUNTY OR NEW YORK CITY.
(II) A COMMUNITY COLLEGE, EXCEPT THAT FOR A COMMUNITY COLLEGE WHOSE
MAIN CAMPUS IS IN NEW YORK CITY, PARAGRAPHS (A) AND (B) OF THIS SUBDIVI-
SION SHALL NOT APPLY TO PROPERTY OF SUCH COMMUNITY COLLEGE IN NASSAU
COUNTY, SUFFOLK COUNTY, WESTCHESTER COUNTY OR NEW YORK CITY.
(III) A TOTAL OF FIVE CITY UNIVERSITY CAMPUSES, ONE EACH IN THE
BOROUGHS OF MANHATTAN, BROOKLYN, BRONX, QUEENS AND STATEN ISLAND, WHICH
WILL BE DESIGNATED BY THE BOARD OF TRUSTEES OF THE CITY UNIVERSITY OF
NEW YORK. THE CAMPUS DESIGNATED IN EACH BOROUGH MUST BE LOCATED IN AN
ECONOMICALLY DISTRESSED COMMUNITY. THE COMMISSIONER SHALL ESTABLISH A
LIST OF ECONOMICALLY DISTRESSED COMMUNITIES FOR THE PURPOSE OF THIS
DESIGNATION, BASED ON CRITERIA INDICATIVE OF ECONOMIC DISTRESS, INCLUD-
ING POVERTY RATES, NUMBERS OF PERSONS RECEIVING PUBLIC ASSISTANCE, UNEM-
PLOYMENT RATES, AND SUCH OTHER INDICATORS AS THE COMMISSIONER DEEMS
APPROPRIATE TO BE IN NEED OF ECONOMIC ASSISTANCE. IN ADDITION, PARA-
GRAPHS (A) AND (B) OF THIS SUBDIVISION SHALL APPLY TO PROPERTY OF THE
CITY UNIVERSITY LOCATED OUTSIDE OF NASSAU COUNTY, SUFFOLK COUNTY, WEST-
CHESTER COUNTY AND NEW YORK CITY.
(D) THE ELIGIBLE LAND OF A STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE,
OR CITY UNIVERSITY CAMPUS WILL ALSO INCLUDE ELIGIBLE LAND DESIGNATED
UNDER PARAGRAPH (C) OF SUBDIVISION TWO OF THIS SECTION.
A. 8096 5
2. PRIVATE COLLEGES AND UNIVERSITIES AND CERTAIN OTHER CAMPUSES. (A)
SUBJECT TO THE LIMITATIONS IN PARAGRAPH (C) OF THIS SUBDIVISION, THE
FOLLOWING WILL CONSTITUTE THE ELIGIBLE LAND OF A PRIVATE COLLEGE OR
UNIVERSITY:
(I) ANY VACANT SPACE IN ANY BUILDING LOCATED ON A CAMPUS OF A PRIVATE
UNIVERSITY OR COLLEGE OTHER THAN A CAMPUS WHICH IS LOCATED IN NASSAU
COUNTY, SUFFOLK COUNTY, WESTCHESTER COUNTY OR NEW YORK CITY;
(II) ANY VACANT LAND ON A CAMPUS OF A PRIVATE UNIVERSITY OR COLLEGE
OTHER THAN A CAMPUS WHICH IS LOCATED IN NASSAU COUNTY, SUFFOLK COUNTY,
WESTCHESTER COUNTY OR NEW YORK CITY;
(III) ANY VACANT LAND OR VACANT SPACE IN A BUILDING WHICH IS NOT
LOCATED IN NASSAU COUNTY, SUFFOLK COUNTY, WESTCHESTER COUNTY OR NEW YORK
CITY; AND
(IV) A NEW YORK STATE INCUBATOR AS THE TERM IS USED IN SUBDIVISION
FOUR OF SECTION FOUR HUNDRED THIRTY-THREE OF THIS ARTICLE WITH A BONA
FIDE AFFILIATION TO THE PRIVATE UNIVERSITY OR COLLEGE, WITH APPROVAL OF
THE COMMISSIONER. IN ORDER FOR THERE TO BE A BONA FIDE AFFILIATION OF A
NEW YORK STATE INCUBATOR WITH A PRIVATE UNIVERSITY OR COLLEGE, THE INCU-
BATOR AND THE PRIVATE UNIVERSITY OR COLLEGE MUST HAVE A PARTNERSHIP TO
PROVIDE ASSISTANCE AND PHYSICAL SPACE TO ELIGIBLE BUSINESSES AS THE TERM
IS USED IN SECTION SIXTEEN-V OF THE URBAN DEVELOPMENT CORPORATION ACT;
THE INCUBATOR AND THE PRIVATE UNIVERSITY OR COLLEGE MUST DIRECTLY WORK
TOWARDS THE GOALS OF JOINTLY CREATING JOBS AND INCUBATING NEW STARTUP
BUSINESSES; AND THE MISSION AND ACTIVITIES OF THE INCUBATOR MUST ALIGN
WITH OR FURTHER THE ACADEMIC MISSION OF THE PRIVATE UNIVERSITY OR
COLLEGE.
(B) SUBJECT TO THE LIMITATIONS IN PARAGRAPH (C) OF THIS SUBDIVISION,
THREE MILLION SQUARE FEET IS THE MAXIMUM AGGREGATE AMOUNT OF TAX-FREE NY
AREAS OF PRIVATE UNIVERSITIES AND COLLEGES THAT MAY BE UTILIZED FOR THIS
PROGRAM, WHICH SHALL BE DESIGNATED IN A MANNER THAT ENSURES REGIONAL
BALANCE AND BALANCE AMONG ELIGIBLE RURAL, URBAN AND SUBURBAN AREAS IN
THE STATE. THE COMMISSIONER SHALL MAINTAIN AN ACCOUNTING OF THE VACANT
LAND AND SPACE OF PRIVATE UNIVERSITIES AND COLLEGES THAT HAVE BEEN
APPROVED AS TAX-FREE NY AREAS AND SHALL STOP ACCEPTING APPLICATIONS FOR
APPROVAL OF TAX-FREE NY AREAS WHEN THAT MAXIMUM AMOUNT HAS BEEN REACHED.
(C) OF THE MAXIMUM AGGREGATE AMOUNT IN PARAGRAPH (B) OF THIS SUBDIVI-
SION, AN INITIAL AMOUNT OF SEVENTY-FIVE THOUSAND SQUARE FEET SHALL BE
DESIGNATED AS TAX-FREE NY AREAS IN EACH OF THE FOLLOWING: NASSAU COUNTY,
SUFFOLK COUNTY, WESTCHESTER COUNTY AND THE BOROUGHS OF BROOKLYN, BRONX,
MANHATTAN, QUEENS AND STATEN ISLAND. THE BOARD MAY APPROVE THE DESIG-
NATION OF UP TO AN ADDITIONAL SEVENTY-FIVE THOUSAND SQUARE FEET FOR ANY
COUNTY OR BOROUGH THAT REACHES THE INITIAL SEVENTY-FIVE THOUSAND SQUARE
FOOT LIMIT, PROVIDED THAT SUCH ADDITIONAL SEVENTY-FIVE THOUSAND SQUARE
FEET SHALL NOT COUNT AGAINST THE SQUARE FOOTAGE LIMITATIONS IN PARAGRAPH
(B) OF THIS SUBDIVISION. VACANT LAND AND VACANT SPACE IN A BUILDING ON
THE CAMPUS OF THE FOLLOWING SHALL BE ELIGIBLE FOR DESIGNATION UNDER THIS
PARAGRAPH:
(I) A PRIVATE UNIVERSITY OR COLLEGE WHICH CAMPUS IS LOCATED IN NASSAU
COUNTY, SUFFOLK COUNTY, WESTCHESTER COUNTY OR NEW YORK CITY.
(II) A STATE UNIVERSITY CAMPUS THAT MEETS THE CRITERIA OF CLAUSE (B)
OR (C) OF SUBPARAGRAPH (I) OF PARAGRAPH (C) OF SUBDIVISION ONE OF THIS
SECTION.
(III) A COMMUNITY COLLEGE WHOSE MAIN CAMPUS IS IN NEW YORK CITY.
(IV) A CITY UNIVERSITY CAMPUS THAT IS NOT DESIGNATED UNDER SUBPARA-
GRAPH (III) OF PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION.
A. 8096 6
(D) IN ADDITION, THE BOARD MAY APPROVE: (I) ONE APPLICATION THAT
INCLUDES ELIGIBLE LAND OWNED OR LEASED BY A CITY UNIVERSITY CAMPUS THAT
IS DIRECTLY ADJACENT TO SUCH CAMPUS; (II) ONE APPLICATION THAT INCLUDES
ELIGIBLE LAND OWNED OR LEASED BY A STATE UNIVERSITY CAMPUS, COMMUNITY
COLLEGE, OR PRIVATE UNIVERSITY OR COLLEGE IN NASSAU COUNTY OR SUFFOLK
COUNTY THAT IS DIRECTLY ADJACENT TO SUCH CAMPUS, UNIVERSITY OR COLLEGE;
AND (III) ONE APPLICATION THAT INCLUDES ELIGIBLE LAND OWNED OR LEASED BY
A STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE, OR PRIVATE UNIVERSITY OR
COLLEGE IN WESTCHESTER COUNTY THAT IS DIRECTLY ADJACENT TO SUCH CAMPUS,
UNIVERSITY OR COLLEGE. THE BOARD MAY APPROVE AN ADDITIONAL APPLICATION,
FOR A STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE, OR PRIVATE UNIVERSITY
OR COLLEGE IN THE COUNTY NOT PREVIOUSLY APPROVED UNDER SUBPARAGRAPH (II)
OF THIS PARAGRAPH IN WHICH CASE IT SHALL ALSO APPROVE A SECOND APPLICA-
TION UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH.
3. PROHIBITION. A STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY
UNIVERSITY CAMPUS IS PROHIBITED FROM RELOCATING OR ELIMINATING ANY
ACADEMIC PROGRAMS, ANY ADMINISTRATIVE PROGRAMS, OFFICES, HOUSING FACILI-
TIES, DINING FACILITIES, ATHLETIC FACILITIES, OR ANY OTHER FACILITY,
SPACE OR PROGRAM THAT ACTIVELY SERVES STUDENTS, FACULTY OR STAFF IN
ORDER TO CREATE VACANT LAND OR SPACE TO BE UTILIZED FOR THE PROGRAM
AUTHORIZED BY THIS ARTICLE. IN ADDITION, NOTHING IN THIS ARTICLE SHALL
BE DEEMED TO WAIVE OR IMPAIR ANY RIGHTS OR BENEFITS OF EMPLOYEES OF THE
STATE UNIVERSITY OF NEW YORK, A COMMUNITY COLLEGE OR THE CITY UNIVERSITY
OF NEW YORK THAT OTHERWISE WOULD BE AVAILABLE TO THEM PURSUANT TO THE
TERMS OF AGREEMENTS BETWEEN THE CERTIFIED REPRESENTATIVES OF SUCH
EMPLOYEES AND THEIR EMPLOYERS PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL
SERVICE LAW. NO SERVICES OR WORK CURRENTLY PERFORMED BY PUBLIC EMPLOYEES
OF THE STATE UNIVERSITY OF NEW YORK, A COMMUNITY COLLEGE, OR THE CITY
UNIVERSITY OF NEW YORK OR FUTURE WORK THAT IS SIMILAR IN SCOPE AND
NATURE TO THE WORK BEING CURRENTLY PERFORMED BY PUBLIC EMPLOYEES SHALL
BE CONTRACTED OUT OR PRIVATIZED BY THE STATE UNIVERSITY OF NEW YORK, A
COMMUNITY COLLEGE OR THE CITY UNIVERSITY OF NEW YORK OR BY AN AFFILIATED
ENTITY OR ASSOCIATED ENTITY OF THE STATE UNIVERSITY OF NEW YORK, A
COMMUNITY COLLEGE OR THE CITY UNIVERSITY OF NEW YORK. FOR THE PURPOSE OF
THIS SECTION, AN AFFILIATED ENTITY OR ASSOCIATED ENTITY SHALL NOT
INCLUDE A BUSINESS THAT IS PARTICIPATING IN THE START-UP NY PROGRAM.
S 433. ELIGIBILITY CRITERIA FOR BUSINESSES. 1. IN ORDER TO PARTICIPATE
IN THE START-UP NY PROGRAM, A BUSINESS MUST SATISFY ALL OF THE FOLLOWING
CRITERIA.
(A) THE MISSION AND ACTIVITIES OF THE BUSINESS MUST ALIGN WITH OR
FURTHER THE ACADEMIC MISSION OF THE CAMPUS, COLLEGE OR UNIVERSITY SPON-
SORING THE TAX-FREE NY AREA IN WHICH IT SEEKS TO LOCATE, AND THE BUSI-
NESS'S PARTICIPATION IN THE START-UP NY PROGRAM MUST HAVE POSITIVE
COMMUNITY AND ECONOMIC BENEFITS.
(B) THE BUSINESS MUST DEMONSTRATE THAT IT WILL, IN ITS FIRST YEAR OF
OPERATION, CREATE NET NEW JOBS. AFTER ITS FIRST YEAR OF OPERATION, THE
BUSINESS MUST MAINTAIN NET NEW JOBS. IN ADDITION, THE AVERAGE NUMBER OF
EMPLOYEES OF THE BUSINESS AND ITS RELATED PERSONS IN THE STATE DURING
THE YEAR MUST EQUAL OR EXCEED THE SUM OF: (I) THE AVERAGE NUMBER OF
EMPLOYEES OF THE BUSINESS AND ITS RELATED PERSONS IN THE STATE DURING
THE YEAR IMMEDIATELY PRECEDING THE YEAR IN WHICH THE BUSINESS SUBMITS
ITS APPLICATION TO LOCATE IN A TAX-FREE NY AREA; AND (II) NET NEW JOBS
OF THE BUSINESS IN THE TAX-FREE NY AREA DURING THE YEAR. THE AVERAGE
NUMBER OF EMPLOYEES OF THE BUSINESS AND ITS RELATED PERSONS IN THE STATE
SHALL BE DETERMINED BY ADDING TOGETHER THE TOTAL NUMBER OF EMPLOYEES OF
THE BUSINESS AND ITS RELATED PERSONS IN THE STATE ON MARCH THIRTY-FIRST,
A. 8096 7
JUNE THIRTIETH, SEPTEMBER THIRTIETH AND DECEMBER THIRTY-FIRST AND DIVID-
ING THE TOTAL BY THE NUMBER OF SUCH DATES OCCURRING WITHIN SUCH YEAR.
(C) EXCEPT AS PROVIDED IN PARAGRAPHS (G) AND (H) OF THIS SUBDIVISION,
AT THE TIME IT SUBMITS ITS APPLICATION FOR THE START-UP NY PROGRAM, THE
BUSINESS MUST BE A NEW BUSINESS TO THE STATE.
(D) THE BUSINESS MAY BE ORGANIZED AS A CORPORATION, A PARTNERSHIP,
LIMITED LIABILITY COMPANY OR A SOLE PROPRIETORSHIP.
(E) UPON COMPLETION OF ITS FIRST YEAR IN THE START-UP NY PROGRAM AND
THEREAFTER, THE BUSINESS MUST COMPLETE AND TIMELY FILE THE ANNUAL REPORT
REQUIRED UNDER SECTION FOUR HUNDRED THIRTY-EIGHT OF THIS ARTICLE.
(F) EXCEPT AS PROVIDED IN PARAGRAPHS (G) AND (H) OF THIS SUBDIVISION,
THE BUSINESS MUST NOT BE ENGAGED IN A LINE OF BUSINESS THAT IS CURRENTLY
OR WAS PREVIOUSLY CONDUCTED BY THE BUSINESS OR A RELATED PERSON IN THE
LAST FIVE YEARS IN NEW YORK STATE.
(G) IF A BUSINESS DOES NOT SATISFY THE ELIGIBILITY STANDARD SET FORTH
IN PARAGRAPH (C) OR (F) OF THIS SUBDIVISION, BECAUSE AT ONE POINT IN
TIME IT OPERATED IN NEW YORK STATE BUT MOVED ITS OPERATIONS OUT OF NEW
YORK STATE ON OR BEFORE JUNE FIRST, TWO THOUSAND THIRTEEN, THE COMMIS-
SIONER SHALL GRANT THAT BUSINESS PERMISSION TO APPLY TO PARTICIPATE IN
THE START-UP NY PROGRAM IF THE COMMISSIONER DETERMINES THAT THE BUSINESS
HAS DEMONSTRATED THAT IT WILL SUBSTANTIALLY RESTORE THE JOBS IN NEW YORK
STATE THAT IT PREVIOUSLY HAD MOVED OUT OF STATE.
(H) IF A BUSINESS SEEKS TO EXPAND ITS CURRENT OPERATIONS IN NEW YORK
STATE INTO A TAX-FREE NY AREA BUT THE BUSINESS DOES NOT QUALIFY AS A NEW
BUSINESS BECAUSE IT DOES NOT SATISFY THE CRITERIA IN PARAGRAPH (C) OF
SUBDIVISION SIX OF SECTION FOUR HUNDRED THIRTY-ONE OF THIS ARTICLE OR
THE BUSINESS DOES NOT SATISFY THE ELIGIBILITY STANDARD SET FORTH IN
PARAGRAPH (F) OF THIS SUBDIVISION, THE COMMISSIONER SHALL GRANT THE
BUSINESS PERMISSION TO APPLY TO PARTICIPATE IN THE START-UP NY PROGRAM
IF THE COMMISSIONER DETERMINES THAT THE BUSINESS HAS DEMONSTRATED THAT
IT WILL CREATE NET NEW JOBS IN THE TAX-FREE NY AREA AND THAT IT OR ANY
RELATED PERSON HAS NOT ELIMINATED ANY JOBS IN THE STATE IN CONNECTION
WITH THIS EXPANSION.
2. THE FOLLOWING TYPES OF BUSINESSES ARE PROHIBITED FROM PARTICIPATING
IN THE START-UP NY PROGRAM.
(A) RETAIL AND WHOLESALE BUSINESSES;
(B) RESTAURANTS;
(C) REAL ESTATE BROKERS;
(D) LAW FIRMS;
(E) MEDICAL OR DENTAL PRACTICES;
(F) REAL ESTATE MANAGEMENT COMPANIES;
(G) HOSPITALITY;
(H) FINANCE AND FINANCIAL SERVICES;
(I) BUSINESSES PROVIDING PERSONAL SERVICES;
(J) BUSINESSES PROVIDING BUSINESS ADMINISTRATIVE OR SUPPORT SERVICES,
UNLESS SUCH BUSINESS HAS RECEIVED PERMISSION FROM THE COMMISSIONER TO
APPLY TO PARTICIPATE IN THE START-UP NY PROGRAM UPON DEMONSTRATION THAT
THE BUSINESS WOULD CREATE NO FEWER THAN ONE HUNDRED NET NEW JOBS IN THE
TAX-FREE NY AREA;
(K) ACCOUNTING FIRMS;
(L) BUSINESSES PROVIDING UTILITIES; AND
(M) BUSINESSES ENGAGED IN THE GENERATION OR DISTRIBUTION OF ELECTRIC-
ITY, THE DISTRIBUTION OF NATURAL GAS, OR THE PRODUCTION OF STEAM ASSOCI-
ATED WITH THE GENERATION OF ELECTRICITY.
2-A. ADDITIONAL ELIGIBILITY REQUIREMENTS IN NASSAU COUNTY, SUFFOLK
COUNTY, WESTCHESTER COUNTY AND NEW YORK CITY. IN ORDER TO BE ELIGIBLE TO
A. 8096 8
PARTICIPATE IN THE START-UP NY PROGRAM IN NASSAU COUNTY, SUFFOLK COUNTY,
WESTCHESTER COUNTY OR NEW YORK CITY, A BUSINESS MUST BE:
(A) IN THE FORMATIVE STAGE OF DEVELOPMENT; OR
(B) ENGAGED IN THE DESIGN, DEVELOPMENT, AND INTRODUCTION OF NEW
BIOTECHNOLOGY, INFORMATION TECHNOLOGY, REMANUFACTURING, ADVANCED MATERI-
ALS, PROCESSING, ENGINEERING OR ELECTRONIC TECHNOLOGY PRODUCTS AND/OR
INNOVATIVE MANUFACTURING PROCESSES, AND MEET SUCH OTHER REQUIREMENTS FOR
A HIGH-TECH BUSINESS AS THE COMMISSIONER SHALL DEVELOP.
3. A BUSINESS MUST BE IN COMPLIANCE WITH ALL WORKER PROTECTION AND
ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, A BUSINESS MAY NOT OWE
PAST DUE FEDERAL OR STATE TAXES OR LOCAL PROPERTY TAXES.
4. ANY BUSINESS THAT HAS SUCCESSFULLY COMPLETED RESIDENCY IN A NEW
YORK STATE INCUBATOR PURSUANT TO SECTION SIXTEEN-V OF SECTION ONE OF
CHAPTER ONE HUNDRED SEVENTY-FOUR OF THE LAWS OF NINETEEN HUNDRED SIXTY-
EIGHT CONSTITUTING THE URBAN DEVELOPMENT CORPORATION ACT, SUBJECT TO
APPROVAL OF THE COMMISSIONER, MAY APPLY TO PARTICIPATE IN THE START-UP
NY PROGRAM PROVIDED THAT SUCH BUSINESS LOCATES IN A TAX-FREE NY AREA,
NOTWITHSTANDING THE FACT THAT THE BUSINESS MAY NOT CONSTITUTE A NEW
BUSINESS.
S 434. TAX BENEFITS. 1. A BUSINESS THAT IS ACCEPTED INTO THE START-UP
NY PROGRAM AND LOCATES IN A TAX-FREE NY AREA OR THE OWNER OF A BUSINESS
THAT IS ACCEPTED INTO THE START-UP NY PROGRAM AND LOCATES IN A TAX-FREE
NY AREA IS ELIGIBLE FOR THE TAX BENEFITS SPECIFIED IN SECTION
THIRTY-NINE OF THE TAX LAW. SUBJECT TO THE LIMITATIONS OF SUBDIVISION
TWO OF THIS SECTION, EMPLOYEES OF SUCH BUSINESS SATISFYING THE ELIGIBIL-
ITY REQUIREMENTS SPECIFIED IN SECTION THIRTY-NINE OF THE TAX LAW SHALL
BE ELIGIBLE FOR THE PERSONAL INCOME TAX BENEFITS DESCRIBED IN SUCH
SECTION IN A MANNER TO BE DETERMINED BY THE DEPARTMENT OF TAXATION AND
FINANCE.
2. THE AGGREGATE NUMBER OF NET NEW JOBS APPROVED FOR PERSONAL INCOME
TAX BENEFITS UNDER THIS ARTICLE SHALL NOT EXCEED TEN THOUSAND JOBS PER
YEAR DURING THE PERIOD IN WHICH APPLICATIONS ARE ACCEPTED PURSUANT TO
SECTION FOUR HUNDRED THIRTY-SIX OF THIS ARTICLE. THE COMMISSIONER SHALL
ALLOCATE TO EACH BUSINESS ACCEPTED TO LOCATE IN A TAX-FREE NY AREA A
MAXIMUM NUMBER OF NET NEW JOBS THAT SHALL BE ELIGIBLE FOR THE PERSONAL
INCOME TAX BENEFITS DESCRIBED IN SUBDIVISION (E) OF SECTION THIRTY-NINE
OF THE TAX LAW BASED ON THE SCHEDULE OF JOB CREATION INCLUDED IN THE
APPLICATION OF SUCH BUSINESS. AT SUCH TIME AS THE TOTAL NUMBER OF NET
NEW JOBS UNDER SUCH APPROVED APPLICATIONS REACHES THE APPLICABLE ALLOW-
ABLE TOTAL OF AGGREGATE NET NEW JOBS FOR TAX BENEFITS FOR THE YEAR IN
WHICH THE APPLICATION IS ACCEPTED, THE COMMISSIONER SHALL STOP GRANTING
ELIGIBILITY FOR PERSONAL INCOME TAX BENEFITS FOR NET NEW JOBS UNTIL THE
NEXT YEAR. ANY BUSINESS NOT GRANTED SUCH PERSONAL INCOME TAX BENEFITS
FOR NET NEW JOBS FOR SUCH REASON SHALL BE GRANTED SUCH BENEFITS IN THE
NEXT YEAR PRIOR TO THE CONSIDERATION OF NEW APPLICANTS. IN ADDITION, IF
THE TOTAL NUMBER OF NET NEW JOBS APPROVED FOR TAX BENEFITS IN ANY GIVEN
YEAR IS LESS THAN THE MAXIMUM ALLOWED UNDER THIS SUBDIVISION, THE
DIFFERENCE SHALL BE CARRIED OVER TO THE NEXT YEAR. A BUSINESS MAY AMEND
ITS SCHEDULE OF JOB CREATION IN THE SAME MANNER THAT IT APPLIED FOR
PARTICIPATION IN THE START-UP NY PROGRAM, AND ANY INCREASE IN ELIGIBIL-
ITY FOR PERSONAL INCOME TAX BENEFITS ON BEHALF OF ADDITIONAL NET NEW
JOBS SHALL BE SUBJECT TO THE LIMITATIONS OF THIS SUBDIVISION. IF THE
BUSINESS ACCEPTED TO LOCATE IN A TAX-FREE NY AREA CREATES MORE NET NEW
JOBS THAN FOR WHICH IT IS ALLOCATED PERSONAL INCOME TAX BENEFITS, THE
PERSONAL INCOME TAX BENEFITS IT IS ALLOCATED SHALL BE PROVIDED TO THOSE
A. 8096 9
INDIVIDUALS EMPLOYED IN THOSE NET NEW JOBS BASED ON THE EMPLOYEES' DATES
OF HIRING.
S 435. APPROVAL OF TAX-FREE NY AREAS. 1. THE PRESIDENT OR CHIEF EXECU-
TIVE OFFICER OF ANY STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY
UNIVERSITY CAMPUS SEEKING TO SPONSOR A TAX-FREE NY AREA AND HAVE SOME OF
ITS ELIGIBLE LAND SPECIFIED UNDER SUBDIVISION ONE OF SECTION FOUR
HUNDRED THIRTY-TWO OF THIS ARTICLE BE DESIGNATED AS A TAX-FREE NY AREA
MUST SUBMIT A PLAN TO THE COMMISSIONER THAT SPECIFIES THE LAND OR SPACE
THE CAMPUS OR COLLEGE WANTS TO INCLUDE, DESCRIBES THE TYPE OF BUSINESS
OR BUSINESSES THAT MAY LOCATE ON THAT LAND OR IN THAT SPACE, EXPLAINS
HOW THOSE TYPES OF BUSINESSES ALIGN WITH OR FURTHER THE ACADEMIC MISSION
OF THE CAMPUS OR COLLEGE AND HOW PARTICIPATION BY THOSE TYPES OF BUSI-
NESSES IN THE START-UP NY PROGRAM WOULD HAVE POSITIVE COMMUNITY AND
ECONOMIC BENEFITS, AND DESCRIBES THE PROCESS THE CAMPUS OR COLLEGE WILL
FOLLOW TO SELECT PARTICIPATING BUSINESSES. AT LEAST THIRTY DAYS PRIOR TO
SUBMITTING SUCH PLAN, THE CAMPUS OR COLLEGE MUST PROVIDE THE MUNICI-
PALITY OR MUNICIPALITIES IN WHICH THE PROPOSED TAX-FREE NY AREA IS
LOCATED, LOCAL ECONOMIC DEVELOPMENT ENTITIES, THE APPLICABLE CAMPUS OR
COLLEGE FACULTY SENATE, UNION REPRESENTATIVES AND THE CAMPUS STUDENT
GOVERNMENT WITH A COPY OF THE PLAN. IN ADDITION, IF THE PLAN OF THE
CAMPUS OR COLLEGE INCLUDES LAND OR SPACE LOCATED OUTSIDE OF THE CAMPUS
BOUNDARIES, THE CAMPUS OR COLLEGE MUST CONSULT WITH THE MUNICIPALITY OR
MUNICIPALITIES IN WHICH SUCH LAND OR SPACE IS LOCATED PRIOR TO INCLUDING
SUCH SPACE OR LAND IN ITS PROPOSED TAX-FREE NY AREA AND SHALL GIVE PREF-
ERENCE TO UNDERUTILIZED PROPERTIES. BEFORE APPROVING OR REJECTING THE
PLAN SUBMITTED BY A STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY
UNIVERSITY CAMPUS, THE COMMISSIONER SHALL CONSULT WITH THE CHANCELLOR OF
THE APPLICABLE UNIVERSITY SYSTEM OR HIS OR HER DESIGNEE.
2. THE PRESIDENT OR CHIEF EXECUTIVE OFFICER OF ANY PRIVATE COLLEGE OR
UNIVERSITY OR OF ANY STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY
UNIVERSITY CAMPUS SEEKING TO SPONSOR A TAX-FREE NY AREA AND HAVE SOME OF
ITS ELIGIBLE LAND SPECIFIED UNDER SUBDIVISION TWO OF SECTION FOUR
HUNDRED THIRTY-TWO OF THIS ARTICLE BE DESIGNATED AS A TAX-FREE NY AREA
MUST SUBMIT A PLAN TO THE COMMISSIONER THAT SPECIFIES THE LAND OR SPACE
THE COLLEGE OR UNIVERSITY WANTS TO INCLUDE, DESCRIBES THE TYPE OF BUSI-
NESS OR BUSINESSES THAT MAY LOCATE ON THAT LAND OR IN THAT SPACE,
EXPLAINS HOW THOSE TYPES OF BUSINESSES ALIGN WITH OR FURTHER THE ACADEM-
IC MISSION OF THE COLLEGE OR UNIVERSITY AND HOW PARTICIPATION BY THOSE
TYPES OF BUSINESSES IN THE START-UP NY PROGRAM WOULD HAVE POSITIVE
COMMUNITY AND ECONOMIC BENEFITS, AND DESCRIBES THE PROCESS THE CAMPUS OR
COLLEGE WILL FOLLOW TO SELECT PARTICIPATING BUSINESSES. IN ADDITION, IF
THE PLAN OF THE CAMPUS OR COLLEGE INCLUDES LAND OR SPACE LOCATED OUTSIDE
OF THE CAMPUS BOUNDARIES, THE CAMPUS OR COLLEGE MUST CONSULT WITH THE
MUNICIPALITY OR MUNICIPALITIES IN WHICH SUCH LAND OR SPACE IS LOCATED
PRIOR TO INCLUDING SUCH SPACE OR LAND IN ITS PROPOSED TAX-FREE NY AREA
AND SHALL NOTIFY LOCAL ECONOMIC DEVELOPMENT ENTITIES. THE COMMISSIONER
SHALL FORWARD THE PLAN SUBMITTED UNDER THIS SUBDIVISION TO THE START-UP
NY APPROVAL BOARD. IN EVALUATING SUCH PLANS, THE BOARD SHALL EXAMINE THE
MERITS OF EACH PROPOSAL, INCLUDING BUT NOT LIMITED TO, COMPLIANCE WITH
THE PROVISIONS OF THIS ARTICLE, REASONABLENESS OF THE ECONOMIC AND
FISCAL ASSUMPTIONS CONTAINED IN THE APPLICATION AND IN ANY SUPPORTING
DOCUMENTATION AND POTENTIAL OF THE PROPOSED PROJECT TO CREATE NEW JOBS,
AND, EXCEPT FOR PROPOSALS FOR DESIGNATION OF ELIGIBLE LAND UNDER PARA-
GRAPH (C) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED THIRTY-TWO OF THIS
ARTICLE, SHALL PRIORITIZE FOR ACCEPTANCE AND INCLUSION INTO THE START-UP
NY PROGRAM PLANS FOR TAX-FREE NY AREAS IN COUNTIES THAT CONTAIN A CITY
A. 8096 10
WITH A POPULATION OF ONE HUNDRED THOUSAND OR MORE WITHOUT A UNIVERSITY
CENTER AS DEFINED IN SUBDIVISION SEVEN OF SECTION THREE HUNDRED FIFTY OF
THE EDUCATION LAW ON THE EFFECTIVE DATE OF THIS ARTICLE. NO PREFERENCE
SHALL BE GIVEN BASED ON THE TIME OF SUBMISSION OF THE PLAN, PROVIDED
THAT ANY SUBMISSION DEADLINES ESTABLISHED BY THE BOARD ARE MET. IN
ADDITION, THE BOARD SHALL GIVE PREFERENCE TO PRIVATE COLLEGES OR UNIVER-
SITIES THAT INCLUDE UNDERUTILIZED PROPERTIES WITHIN THEIR PROPOSED TAX-
FREE NY AREAS. THE BOARD BY A MAJORITY VOTE SHALL APPROVE OR REJECT EACH
PLAN FORWARDED TO IT BY THE COMMISSIONER.
3. A CAMPUS, UNIVERSITY OR COLLEGE MAY AMEND ITS APPROVED PLAN,
PROVIDED THAT THE CAMPUS, UNIVERSITY OR COLLEGE MAY NOT VIOLATE THE
TERMS OF ANY LEASE WITH A BUSINESS LOCATED IN THE APPROVED TAX-FREE NY
AREA. IN ADDITION, IF A BUSINESS LOCATED IN A TAX-FREE NY AREA DOES NOT
HAVE A LEASE WITH A CAMPUS, UNIVERSITY OR COLLEGE, AND SUCH BUSINESS IS
TERMINATED FROM THE START-UP NY PROGRAM PURSUANT TO PARAGRAPH (B) OF
SUBDIVISION FOUR OF SECTION FOUR HUNDRED THIRTY-SIX OF THIS ARTICLE, AND
SUBSEQUENTLY DOES NOT RELOCATE OUTSIDE OF THE TAX-FREE NY AREA, A
CAMPUS, UNIVERSITY OR COLLEGE MAY AMEND ITS APPROVED PLAN TO ALLOCATE AN
AMOUNT OF VACANT LAND OR SPACE EQUAL TO THE AMOUNT OF SPACE OCCUPIED BY
THE BUSINESS THAT IS TERMINATED. THE AMENDMENT MUST BE APPROVED PURSU-
ANT TO THE PROCEDURES AND REQUIREMENTS SET FORTH IN SUBDIVISION ONE OR
TWO OF THIS SECTION, WHICHEVER IS APPLICABLE.
4. THE START-UP NY APPROVAL BOARD, BY MAJORITY VOTE, SHALL DESIGNATE
UP TO TWENTY STRATEGIC STATE ASSETS AS TAX-FREE NY AREAS. EACH SHALL BE
AFFILIATED WITH A STATE UNIVERSITY CAMPUS, CITY UNIVERSITY CAMPUS,
COMMUNITY COLLEGE, OR PRIVATE COLLEGE OR UNIVERSITY AND SUCH DESIGNATION
SHALL REQUIRE THE SUPPORT OF THE AFFILIATED CAMPUS, COLLEGE OR UNIVERSI-
TY. EACH STRATEGIC STATE ASSET MAY NOT EXCEED A MAXIMUM OF TWO HUNDRED
THOUSAND SQUARE FEET OF VACANT LAND OR VACANT BUILDING SPACE DESIGNATED
AS A TAX-FREE NY AREA. DESIGNATION OF STRATEGIC STATE ASSETS AS
TAX-FREE NY AREAS SHALL NOT COUNT AGAINST ANY SQUARE FOOTAGE LIMITATIONS
IN SECTION FOUR HUNDRED THIRTY-TWO OF THIS ARTICLE.
5. THE COMMISSIONER SHALL PROMULGATE REGULATIONS TO EFFECTUATE THE
PURPOSES OF THIS SECTION, INCLUDING, BUT NOT LIMITED TO, ESTABLISHING
THE PROCESS FOR THE PLAN SUBMISSIONS AND APPROVALS OF TAX-FREE NY AREAS
AND THE ELIGIBILITY CRITERIA THAT WILL BE APPLIED IN EVALUATING THOSE
PLANS.
S 436. BUSINESSES LOCATING IN TAX-FREE NY AREAS. 1. A CAMPUS, UNIVER-
SITY OR COLLEGE THAT HAS SPONSORED A TAX-FREE NY AREA (INCLUDING ANY
STRATEGIC STATE ASSET AFFILIATED WITH THE CAMPUS, UNIVERSITY OR COLLEGE)
SHALL SOLICIT AND ACCEPT APPLICATIONS FROM BUSINESSES TO LOCATE IN SUCH
AREA THAT ARE CONSISTENT WITH THE PLAN OF SUCH CAMPUS, UNIVERSITY OR
COLLEGE OR STRATEGIC STATE ASSET THAT HAS BEEN APPROVED PURSUANT TO
SECTION FOUR HUNDRED THIRTY-FIVE OF THIS ARTICLE. ANY BUSINESS THAT
WANTS TO LOCATE IN A TAX-FREE NY AREA MUST SUBMIT AN APPLICATION TO THE
CAMPUS, UNIVERSITY OR COLLEGE WHICH IS SPONSORING THE TAX-FREE NY AREA
BY DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY. PRIOR TO SUCH DATE, THE
COMMISSIONER SHALL PREPARE AN EVALUATION ON THE EFFECTIVENESS OF THE
START-UP NY PROGRAM AND DELIVER IT TO THE GOVERNOR AND THE LEGISLATURE
TO DETERMINE CONTINUED ELIGIBILITY FOR APPLICATION SUBMISSIONS.
2. (A) THE SPONSORING CAMPUS, UNIVERSITY OR COLLEGE SHALL PROVIDE THE
APPLICATION AND ALL SUPPORTING DOCUMENTATION OF ANY BUSINESS IT DECIDES
TO ACCEPT INTO ITS TAX-FREE NY AREA TO THE COMMISSIONER FOR REVIEW. SUCH
APPLICATION SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER AND SHALL
CONTAIN ALL INFORMATION THE COMMISSIONER DETERMINES IS NECESSARY TO
PROPERLY EVALUATE THE BUSINESS'S APPLICATION, INCLUDING, BUT NOT LIMITED
A. 8096 11
TO, THE NAME, ADDRESS, AND EMPLOYER IDENTIFICATION NUMBER OF THE BUSI-
NESS; A DESCRIPTION OF THE LAND OR SPACE THE BUSINESS WILL USE, THE
TERMS OF THE LEASE AGREEMENT, IF APPLICABLE, BETWEEN THE SPONSORING
CAMPUS, UNIVERSITY OR COLLEGE AND THE BUSINESS, AND WHETHER OR NOT THE
LAND OR SPACE BEING USED BY THE BUSINESS IS BEING TRANSFERRED OR SUBLET
TO THE BUSINESS FROM SOME OTHER BUSINESS. THE APPLICATION MUST INCLUDE A
CERTIFICATION BY THE BUSINESS THAT IT MEETS THE ELIGIBILITY CRITERIA
SPECIFIED IN SECTION FOUR HUNDRED THIRTY-THREE OF THIS ARTICLE AND WILL
ALIGN WITH OR FURTHER THE ACADEMIC MISSION OF THE SPONSORING CAMPUS,
COLLEGE OR UNIVERSITY, AND THAT THE BUSINESS'S PARTICIPATION IN THE
START-UP NY PROGRAM WILL HAVE POSITIVE COMMUNITY AND ECONOMIC BENEFITS.
THE APPLICATION MUST ALSO DESCRIBE WHETHER OR NOT THE BUSINESS COMPETES
WITH OTHER BUSINESSES IN THE SAME COMMUNITY BUT OUTSIDE THE TAX-FREE NY
AREA. IN ADDITION, THE APPLICATION MUST INCLUDE A DESCRIPTION OF HOW THE
BUSINESS PLANS TO RECRUIT EMPLOYEES FROM THE LOCAL WORKFORCE.
(B) THE COMMISSIONER SHALL REVIEW SUCH APPLICATION AND DOCUMENTATION
WITHIN SIXTY DAYS AND MAY REJECT SUCH APPLICATION UPON A DETERMINATION
THAT THE BUSINESS DOES NOT MEET THE ELIGIBILITY CRITERIA IN SECTION FOUR
HUNDRED THIRTY-THREE OF THIS ARTICLE, HAS SUBMITTED AN INCOMPLETE APPLI-
CATION, HAS FAILED TO COMPLY WITH SUBDIVISION THREE OF THIS SECTION, OR
HAS FAILED TO DEMONSTRATE THAT THE BUSINESS'S PARTICIPATION IN THE
START-UP NY PROGRAM WILL HAVE POSITIVE COMMUNITY AND ECONOMIC BENEFITS,
WHICH SHALL BE EVALUATED BASED ON FACTORS INCLUDING BUT NOT LIMITED TO
WHETHER OR NOT THE BUSINESS COMPETES WITH OTHER BUSINESSES IN THE SAME
COMMUNITY BUT OUTSIDE THE TAX-FREE NY AREA AS PROHIBITED BY SECTION FOUR
HUNDRED FORTY OF THIS ARTICLE. IF THE COMMISSIONER REJECTS SUCH APPLI-
CATION, IT SHALL PROVIDE NOTICE OF SUCH REJECTION TO THE SPONSORING
CAMPUS, UNIVERSITY OR COLLEGE AND BUSINESS. IF THE COMMISSIONER DOES NOT
REJECT SUCH APPLICATION WITHIN SIXTY DAYS, SUCH BUSINESS IS ACCEPTED TO
LOCATE IN SUCH TAX-FREE NY AREA, AND THE APPLICATION OF SUCH BUSINESS
SHALL CONSTITUTE A CONTRACT BETWEEN SUCH BUSINESS AND THE SPONSORING
CAMPUS, UNIVERSITY OR COLLEGE. THE SPONSORING CAMPUS, UNIVERSITY OR
COLLEGE MUST PROVIDE ACCEPTED BUSINESSES WITH DOCUMENTATION OF THEIR
ACCEPTANCES IN SUCH FORM AS PRESCRIBED BY THE COMMISSIONER OF TAXATION
AND FINANCE WHICH WILL BE USED TO DEMONSTRATE SUCH BUSINESS'S ELIGIBIL-
ITY FOR THE TAX BENEFITS SPECIFIED IN SECTION THIRTY-NINE OF THE TAX
LAW.
(C) IF A STATE UNIVERSITY CAMPUS PROPOSES TO ENTER INTO A LEASE WITH A
BUSINESS FOR ELIGIBLE LAND IN A TAX-FREE NY AREA WITH A TERM GREATER
THAN FORTY YEARS, INCLUDING ANY OPTIONS TO RENEW, OR FOR ELIGIBLE LAND
IN A TAX-FREE NY AREA OF ONE MILLION OR MORE SQUARE FEET, THE STATE
UNIVERSITY CAMPUS, AT THE SAME TIME AS THE APPLICATION IS PROVIDED TO
THE COMMISSIONER, ALSO MUST SUBMIT THE LEASE FOR REVIEW TO THE START-UP
NY APPROVAL BOARD. IF THE BOARD DOES NOT DISAPPROVE OF THE LEASE TERMS
WITHIN THIRTY DAYS, THE LEASE IS DEEMED APPROVED. IF THE BOARD DISAP-
PROVES THE LEASE TERMS, THE STATE UNIVERSITY CAMPUS MUST SUBMIT MODIFIED
LEASE TERMS TO THE COMMISSIONER FOR REVIEW. THE COMMISSIONER'S SIXTY DAY
REVIEW PERIOD IS SUSPENDED WHILE THE BOARD IS REVIEWING THE LEASE AND
DURING THE TIME IT TAKES FOR THE STATE UNIVERSITY CAMPUS TO MODIFY THE
LEASE TERMS.
(D) EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, PROPRIETARY INFORMA-
TION OR SUPPORTING DOCUMENTATION SUBMITTED BY A BUSINESS TO A SPONSORING
CAMPUS, UNIVERSITY OR COLLEGE SHALL ONLY BE UTILIZED FOR THE PURPOSE OF
EVALUATING SUCH BUSINESS'S APPLICATION OR COMPLIANCE WITH THE PROVISIONS
OF THIS ARTICLE AND SHALL NOT BE OTHERWISE DISCLOSED. ANY PERSON WHO
A. 8096 12
WILLFULLY DISCLOSES SUCH INFORMATION TO A THIRD PARTY FOR ANY OTHER
PURPOSE WHATSOEVER SHALL BE GUILTY OF A MISDEMEANOR.
3. THE BUSINESS SUBMITTING THE APPLICATION, AS PART OF THE APPLICA-
TION, MUST:
(A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX INFORMATION WITH THE DEPARTMENT AND THE SPONSORING CAMPUS, UNIVERSI-
TY OR COLLEGE;
(B) AGREE TO ALLOW THE DEPARTMENT OF LABOR TO SHARE ITS TAX AND
EMPLOYER INFORMATION WITH THE DEPARTMENT AND THE SPONSORING CAMPUS,
UNIVERSITY OR COLLEGE;
(C) ALLOW THE DEPARTMENT AND ITS AGENTS AND THE SPONSORING CAMPUS,
UNIVERSITY OR COLLEGE ACCESS TO ANY AND ALL BOOKS AND RECORDS THE
DEPARTMENT OR SPONSORING CAMPUS, UNIVERSITY OR COLLEGE MAY REQUIRE TO
MONITOR COMPLIANCE;
(D) INCLUDE PERFORMANCE BENCHMARKS, INCLUDING THE NUMBER OF NET NEW
JOBS THAT MUST BE CREATED, THE SCHEDULE FOR CREATING THOSE JOBS, AND
DETAILS ON JOB TITLES AND EXPECTED SALARIES. THE APPLICATION MUST SPEC-
IFY THE CONSEQUENCES FOR FAILURE TO MEET SUCH BENCHMARKS, AS DETERMINED
BY THE BUSINESS AND THE SPONSORING CAMPUS, UNIVERSITY OR COLLEGE: (I)
SUSPENSION OF SUCH BUSINESS'S PARTICIPATION IN THE START-UP NY PROGRAM
FOR ONE OR MORE TAX YEARS AS SPECIFIED IN SUCH APPLICATION; (II) TERMI-
NATION OF SUCH BUSINESS'S PARTICIPATION IN THE START-UP NY PROGRAM;
AND/OR (III) PROPORTIONAL RECOVERY OF TAX BENEFITS AWARDED UNDER THE
START-UP NY PROGRAM AS SPECIFIED IN SECTION THIRTY-NINE OF THE TAX LAW;
(E) PROVIDE THE FOLLOWING INFORMATION TO THE DEPARTMENT AND SPONSORING
CAMPUS, UNIVERSITY OR COLLEGE UPON REQUEST:
(I) THE PRIOR THREE YEARS OF FEDERAL AND STATE INCOME OR FRANCHISE TAX
RETURNS, UNEMPLOYMENT INSURANCE QUARTERLY RETURNS, REAL PROPERTY TAX
BILLS AND AUDITED FINANCIAL STATEMENTS;
(II) THE EMPLOYER IDENTIFICATION OR SOCIAL SECURITY NUMBERS FOR ALL
RELATED PERSONS TO THE BUSINESS, INCLUDING THOSE OF ANY MEMBERS OF A
LIMITED LIABILITY COMPANY OR PARTNERS IN A PARTNERSHIP;
(F) PROVIDE A CLEAR AND DETAILED PRESENTATION OF ALL RELATED PERSONS
TO THE BUSINESS TO ASSURE THE DEPARTMENT THAT JOBS ARE NOT BEING SHIFTED
WITHIN THE STATE; AND
(G) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT IS IN SUBSTANTIAL
COMPLIANCE WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL, STATE,
AND FEDERAL TAX LAWS, AND THAT IT SATISFIES ALL THE ELIGIBILITY REQUIRE-
MENTS TO PARTICIPATE IN THE START-UP NY PROGRAM.
4. (A) AT THE CONCLUSION OF THE LEASE TERM OF A LEASE BY THE SPONSOR-
ING CAMPUS, UNIVERSITY OR COLLEGE TO A BUSINESS OF LAND OR SPACE IN A
TAX-FREE NY AREA OWNED BY THE SPONSORING CAMPUS, UNIVERSITY OR COLLEGE,
THE LEASED LAND OR SPACE AND ANY IMPROVEMENTS THEREON SHALL REVERT TO
THE SPONSORING CAMPUS, UNIVERSITY OR COLLEGE, UNLESS THE LEASE IS
RENEWED.
(B) IF, AT ANY TIME, THE SPONSORING CAMPUS, UNIVERSITY OR COLLEGE OR
THE COMMISSIONER DETERMINES THAT A BUSINESS NO LONGER SATISFIES ANY OF
THE ELIGIBILITY CRITERIA SPECIFIED IN SECTION FOUR HUNDRED THIRTY-THREE
OF THIS ARTICLE, THE SPONSORING CAMPUS, UNIVERSITY OR COLLEGE SHALL
RECOMMEND TO THE COMMISSIONER THAT THE COMMISSIONER TERMINATE OR THE
COMMISSIONER ON HIS OR HER OWN INITIATIVE SHALL IMMEDIATELY TERMINATE
SUCH BUSINESS'S PARTICIPATION IN THE START-UP NY PROGRAM. SUCH BUSINESS
SHALL BE NOTIFIED OF SUCH TERMINATION BY A METHOD WHICH ALLOWS FOR
VERIFICATION OF RECEIPT OF SUCH TERMINATION NOTICE. A COPY OF SUCH
TERMINATION NOTICE SHALL BE SENT TO THE COMMISSIONER OF TAXATION AND
FINANCE. UPON SUCH TERMINATION, SUCH BUSINESS SHALL NOT BE ELIGIBLE FOR
A. 8096 13
THE TAX BENEFITS SPECIFIED IN SECTION THIRTY-NINE OF THE TAX LAW FOR
THAT OR ANY FUTURE TAXABLE YEAR, CALENDAR QUARTER OR SALES TAX QUARTER,
ALTHOUGH EMPLOYEES OF SUCH BUSINESS MAY CONTINUE TO CLAIM THE TAX BENE-
FIT FOR THEIR WAGES DURING THE REMAINDER OF THAT TAXABLE YEAR. FURTHER,
SUCH LEASE OR CONTRACT BETWEEN THE SPONSORING CAMPUS, UNIVERSITY OR
COLLEGE AND SUCH BUSINESS SHALL BE RESCINDED, EFFECTIVE ON THE THIRTIETH
DAY AFTER THE COMMISSIONER MAILED SUCH TERMINATION NOTICE TO SUCH BUSI-
NESS AND THE LAND OR SPACE AND ANY IMPROVEMENTS THEREON SHALL REVERT TO
THE SPONSORING CAMPUS, UNIVERSITY OR COLLEGE.
5. THE COMMISSIONER SHALL PROMULGATE REGULATIONS TO EFFECTUATE THE
PURPOSES OF THIS SECTION, INCLUDING, BUT NOT LIMITED TO, ESTABLISHING
THE PROCESS FOR THE EVALUATION AND POSSIBLE REJECTION OF APPLICATIONS,
THE ELIGIBILITY CRITERIA THAT WILL BE APPLIED IN EVALUATING THOSE APPLI-
CATIONS, AND THE PROCESS FOR TERMINATIONS FROM THE START-UP NY PROGRAM
AND ADMINISTRATIVE APPEALS OF SUCH TERMINATIONS.
S 437. MWBE AND PREVAILING WAGE REQUIREMENTS. 1. FOR PREVAILING WAGE
AND MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES REQUIREMENTS APPLICA-
BLE TO TAX-FREE NY AREAS ON STATE UNIVERSITY CAMPUSES, CITY UNIVERSITY
CAMPUSES AND COMMUNITY COLLEGES, SEE SECTION THREE HUNDRED SIXTY-ONE OF
THE EDUCATION LAW.
2. ANY CONTRACT TO WHICH A BUSINESS ON A STRATEGIC STATE ASSET IN A
TAX-FREE NY AREA IS A PARTY, AND ANY CONTRACT ENTERED INTO BY A THIRD
PARTY ACTING IN PLACE OF, ON BEHALF OF AND FOR THE BENEFIT OF THE BUSI-
NESS PURSUANT TO ANY LEASE, PERMIT OR OTHER AGREEMENT BETWEEN SUCH THIRD
PARTY AND THE BUSINESS, FOR THE CONSTRUCTION, RECONSTRUCTION, DEMOLI-
TION, EXCAVATION, REHABILITATION, REPAIR, RENOVATION, ALTERATION, OR
IMPROVEMENT, OF A PROJECT, SHALL BE SUBJECT TO ALL OF THE PROVISIONS OF
ARTICLE EIGHT OF THE LABOR LAW, INCLUDING THE ENFORCEMENT OF PREVAILING
WAGE REQUIREMENTS BY THE FISCAL OFFICER AS DEFINED IN PARAGRAPH E OF
SUBDIVISION FIVE OF SECTION TWO HUNDRED TWENTY OF THE LABOR LAW TO THE
SAME EXTENT AS A CONTRACT OF THE STATE, AND SHALL BE DEEMED A PUBLIC
WORK FOR PURPOSES OF SUCH ARTICLE.
3. ANY INDIVIDUAL, PUBLIC CORPORATION OR AUTHORITY, PRIVATE CORPO-
RATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP OR OTHER ENTITY ENTER-
ING INTO A CONTRACT, SUBCONTRACT, LEASE, GRANT, BOND, COVENANT OR OTHER
AGREEMENT FOR A PROJECT UNDERTAKEN ON A STRATEGIC STATE ASSET IN A TAX-
FREE NY AREA SHALL BE DEEMED A STATE AGENCY AS THAT TERM IS DEFINED IN
ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW AND SUCH CONTRACTS SHALL BE
DEEMED STATE CONTRACTS WITHIN THE MEANING OF THAT TERM AS SET FORTH IN
SUCH ARTICLE.
4. A BUSINESS ON A STRATEGIC STATE ASSET IN A TAX-FREE NY AREA MAY
REQUIRE A CONTRACTOR AWARDED A CONTRACT, SUBCONTRACT, LEASE, GRANT,
BOND, COVENANT OR OTHER AGREEMENT FOR A PROJECT TO ENTER INTO A PROJECT
LABOR AGREEMENT PURSUANT TO SECTION TWO HUNDRED TWENTY-TWO OF THE LABOR
LAW DURING AND FOR THE WORK INVOLVED WITH SUCH PROJECT WHEN SUCH
REQUIREMENT IS PART OF THE BUSINESS'S REQUEST FOR PROPOSALS FOR THE
PROJECT AND WHEN THE BUSINESS DETERMINES THAT THE RECORD SUPPORTING THE
DECISION TO ENTER INTO SUCH AN AGREEMENT ESTABLISHES THAT THE INTERESTS
UNDERLYING THE COMPETITIVE BIDDING LAWS ARE BEST MET BY REQUIRING A
PROJECT LABOR AGREEMENT INCLUDING: OBTAINING THE BEST WORK AT THE LOWEST
POSSIBLE PRICE; PREVENTING FAVORITISM, FRAUD AND CORRUPTION; THE IMPACT
OF DELAY; THE POSSIBILITY OF COST SAVINGS; AND ANY LOCAL HISTORY OF
LABOR UNREST.
5. FOR THE PURPOSES OF THIS SECTION "PROJECT" SHALL MEAN CAPITAL
IMPROVEMENT WORK ON A STRATEGIC STATE ASSET TO BE SUBJECT TO ANY LEASE,
TRANSFER OR CONVEYANCE, OTHER THAN CONVEYANCE OF TITLE. SUCH CAPITAL
A. 8096 14
IMPROVEMENT WORK SHALL INCLUDE THE DESIGN, CONSTRUCTION, RECONSTRUCTION,
DEMOLITION, EXCAVATION, REHABILITATION, REPAIR, RENOVATION, ALTERATION
OR IMPROVEMENT OF A STRATEGIC STATE ASSET.
S 438. DISCLOSURE AUTHORIZATION AND REPORTING REQUIREMENTS. 1. THE
COMMISSIONER AND THE DEPARTMENT SHALL DISCLOSE PUBLICLY THE NAMES AND
ADDRESSES OF THE BUSINESSES LOCATED WITHIN A TAX-FREE NY AREA. IN ADDI-
TION, THE COMMISSIONER AND THE DEPARTMENT SHALL DISCLOSE PUBLICLY AND
INCLUDE IN THE ANNUAL REPORT REQUIRED UNDER SUBDIVISION TWO OF THIS
SECTION SUCH OTHER INFORMATION CONTAINED IN SUCH BUSINESSES' APPLICA-
TIONS AND ANNUAL REPORTS, INCLUDING THE PROJECTED NUMBER OF NET NEW JOBS
TO BE CREATED, AS THEY DETERMINE IS RELEVANT AND NECESSARY TO EVALUATE
THE SUCCESS OF THIS PROGRAM.
2. (A) THE COMMISSIONER SHALL PREPARE AN ANNUAL REPORT TO THE GOVERNOR
AND THE LEGISLATURE. SUCH REPORT SHALL INCLUDE THE NUMBER OF BUSINESS
APPLICANTS, NUMBER OF BUSINESSES APPROVED, THE NAMES AND ADDRESSES OF
THE BUSINESSES LOCATED WITHIN A TAX-FREE NY AREA, TOTAL AMOUNT OF BENE-
FITS DISTRIBUTED, BENEFITS RECEIVED PER BUSINESS, NUMBER OF NET NEW JOBS
CREATED, NET NEW JOBS CREATED PER BUSINESS, NEW INVESTMENT PER BUSINESS,
THE TYPES OF INDUSTRIES REPRESENTED AND SUCH OTHER INFORMATION AS THE
COMMISSIONER DETERMINES IS NECESSARY TO EVALUATE THE PROGRESS OF THE
START-UP NY PROGRAM.
(B) ANY BUSINESS LOCATED IN A TAX-FREE NY AREA MUST SUBMIT AN ANNUAL
REPORT TO THE COMMISSIONER IN A FORM AND AT SUCH TIME AND WITH SUCH
INFORMATION AS PRESCRIBED BY THE COMMISSIONER IN CONSULTATION WITH THE
COMMISSIONER OF TAXATION AND FINANCE. SUCH INFORMATION SHALL BE SUFFI-
CIENT FOR THE COMMISSIONER AND THE COMMISSIONER OF TAXATION AND FINANCE
TO: (I) MONITOR THE CONTINUED ELIGIBILITY OF THE BUSINESS AND ITS
EMPLOYEES TO PARTICIPATE IN THE START-UP NY PROGRAM AND RECEIVE THE TAX
BENEFITS DESCRIBED IN SECTION THIRTY-NINE OF THE TAX LAW; (II) EVALUATE
THE PROGRESS OF THE START-UP NY PROGRAM; AND (III) PREPARE THE ANNUAL
REPORT REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION. SUCH ANNUAL REPORT
SHALL ALSO INCLUDE INFORMATION REGARDING THE WAGES PAID DURING THE YEAR
TO ITS EMPLOYEES EMPLOYED IN THE NET NEW JOBS CREATED AND MAINTAINED IN
THE TAX-FREE NY AREA.
S 439. CONFLICT OF INTEREST GUIDELINES. 1. EACH CAMPUS, UNIVERSITY OR
COLLEGE PARTICIPATING IN THE START-UP NY PROGRAM SHALL ADOPT A CONFLICT
OF INTEREST POLICY. SUCH CONFLICT OF INTEREST POLICY SHALL PROVIDE, AS
IT RELATES TO THE START-UP NY PROGRAM: (A) AS A GENERAL PRINCIPLE, THAT
SERVICE AS AN OFFICIAL OF THE CAMPUS, UNIVERSITY OR COLLEGE SHALL NOT BE
USED AS A MEANS FOR PRIVATE BENEFIT OR INUREMENT FOR THE OFFICIAL, A
RELATIVE THEREOF, OR ANY ENTITY IN WHICH THE OFFICIAL, OR RELATIVE THER-
EOF, HAS A BUSINESS INTEREST; (B) NO OFFICIAL WHO IS A VENDOR OR EMPLOY-
EE OF A VENDOR OF GOODS OR SERVICES TO THE CAMPUS, UNIVERSITY OR
COLLEGE, OR WHO HAS A BUSINESS INTEREST IN SUCH VENDOR, OR WHOSE RELA-
TIVE HAS A BUSINESS INTEREST IN SUCH VENDOR, SHALL VOTE ON, OR PARTIC-
IPATE IN THE ADMINISTRATION BY THE CAMPUS, UNIVERSITY OR COLLEGE, AS THE
CASE MAY BE, OF ANY TRANSACTION WITH SUCH VENDOR; AND (C) UPON BECOMING
AWARE OF AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, AN OFFICIAL SHALL
ADVISE THE PRESIDENT OR CHIEF EXECUTIVE OFFICER OF THE CAMPUS, UNIVERSI-
TY OR COLLEGE, AS THE CASE MAY BE, OF HIS OR HER OR A RELATIVE'S BUSI-
NESS INTEREST IN ANY SUCH EXISTING OR PROPOSED VENDOR WITH THE CAMPUS,
UNIVERSITY OR COLLEGE. EACH CAMPUS, UNIVERSITY OR COLLEGE SHALL MAINTAIN
A WRITTEN RECORD OF ALL DISCLOSURES OF ACTUAL OR POTENTIAL CONFLICTS OF
INTEREST MADE PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, AND SHALL
REPORT SUCH DISCLOSURES, ON A CALENDAR YEAR BASIS, BY JANUARY
THIRTY-FIRST OF EACH YEAR, TO THE AUDITOR FOR SUCH CAMPUS, UNIVERSITY OR
A. 8096 15
COLLEGE. THE AUDITOR SHALL FORWARD SUCH REPORTS TO THE COMMISSIONER, WHO
SHALL MAKE PUBLIC SUCH REPORTS.
2. FOR PURPOSES OF SUCH CONFLICT OF INTEREST POLICIES: (A) AN OFFICIAL
OF A CAMPUS, UNIVERSITY OR COLLEGE HAS A "BUSINESS INTEREST" IN AN ENTI-
TY IF THE INDIVIDUAL: (I) OWNS OR CONTROLS TEN PERCENT OR MORE OF THE
STOCK OF THE ENTITY (OR ONE PERCENT IN THE CASE OF AN ENTITY THE STOCK
OF WHICH IS REGULARLY TRADED ON AN ESTABLISHED SECURITIES EXCHANGE); OR
(II) SERVES AS AN OFFICER, DIRECTOR OR PARTNER OF THE ENTITY; (B) A
"RELATIVE" OF AN OFFICIAL OF A CAMPUS, UNIVERSITY OR COLLEGE SHALL MEAN
ANY PERSON LIVING IN THE SAME HOUSEHOLD AS THE INDIVIDUAL AND ANY PERSON
WHO IS A DIRECT DESCENDANT OF THAT INDIVIDUAL'S GRANDPARENTS OR THE
SPOUSE OF SUCH DESCENDANT; AND (C) AN "OFFICIAL" OF A CAMPUS, UNIVERSITY
OR COLLEGE SHALL MEAN AN EMPLOYEE AT THE LEVEL OF DEAN AND ABOVE AS WELL
AS ANY OTHER EMPLOYEE WITH DECISION-MAKING AUTHORITY OVER THE START-UP
NY PROGRAM.
S 440. PROHIBITION OF ANTI-COMPETITIVE BEHAVIOR. A SPONSORING CAMPUS,
UNIVERSITY OR COLLEGE SHALL NOT ACCEPT ANY APPLICATION TO LOCATE IN A
TAX-FREE NY AREA UNDER SUBDIVISION ONE OF SECTION FOUR HUNDRED
THIRTY-SIX OF THIS ARTICLE FROM A BUSINESS THAT WOULD COMPETE WITH OTHER
BUSINESSES IN THE SAME COMMUNITY BUT OUTSIDE THE TAX-FREE NY AREA, AND
THE COMMISSIONER SHALL REJECT ANY APPLICATION UNDER SUBDIVISION TWO OF
SECTION FOUR HUNDRED THIRTY-SIX OF THIS ARTICLE UPON DETERMINING THAT
THE BUSINESS WOULD COMPETE WITH OTHER BUSINESSES IN THE SAME COMMUNITY
BUT OUTSIDE THE TAX-FREE NY AREA. THE COMMISSIONER SHALL ISSUE AND
PROMULGATE SUCH RULES AND REGULATIONS AS ARE NECESSARY TO IMPLEMENT THIS
SECTION.
S 2. The tax law is amended by adding a new section 39 to read as
follows:
S 39. TAX BENEFITS FOR BUSINESSES LOCATED IN TAX-FREE NY AREAS AND
EMPLOYEES OF SUCH BUSINESSES. (A) (1) ANY BUSINESS OR OWNER OF A BUSI-
NESS IN THE CASE OF A BUSINESS TAXED AS A SOLE PROPRIETORSHIP, PARTNER-
SHIP OR NEW YORK S CORPORATION, THAT IS LOCATED IN A TAX-FREE NY AREA
APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW
IS ELIGIBLE FOR THE TAX BENEFITS DESCRIBED IN THIS SECTION. UNLESS
OTHERWISE SPECIFIED, SUCH BUSINESS OR OWNER OF SUCH BUSINESS SHALL BE
ELIGIBLE FOR THESE TAX BENEFITS FOR A PERIOD OF TEN CONSECUTIVE TAXABLE
YEARS, COMMENCING WITH THE TAXABLE YEAR DURING WHICH IT LOCATES IN THE
TAX-FREE NY AREA.
(2) IN ORDER TO BE ELIGIBLE FOR THESE TAX BENEFITS DURING ANY TAXABLE
YEAR, CALENDAR QUARTER OR SALES TAX QUARTER, SUCH BUSINESS MUST BE
APPROVED TO PARTICIPATE IN THE START-UP NY PROGRAM, MUST OPERATE AT THE
APPROVED LOCATION IN THE TAX-FREE NY AREA, AND MUST SATISFY THE ELIGI-
BILITY CRITERIA SPECIFIED IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION
FOUR HUNDRED THIRTY-THREE OF THE ECONOMIC DEVELOPMENT LAW.
(B) TAX-FREE NY AREA ELIMINATION CREDIT. SUCH BUSINESS OR THE OWNER OF
SUCH BUSINESS SHALL BE ELIGIBLE FOR THE TAX-FREE NY AREA TAX ELIMINATION
CREDIT DESCRIBED IN SECTION FORTY OF THIS ARTICLE.
(C) ORGANIZATION TAX AND LICENSE AND MAINTENANCE FEES. SUCH BUSINESS,
IF LOCATED EXCLUSIVELY IN A TAX-FREE NY AREA, SHALL BE EXEMPT FROM THE
ORGANIZATION TAX IMPOSED UNDER SECTION ONE HUNDRED EIGHTY OF THIS CHAP-
TER OR THE LICENSE AND MAINTENANCE FEES IMPOSED UNDER SECTION ONE
HUNDRED EIGHTY-ONE OF THIS CHAPTER, WHICHEVER IS APPLICABLE.
(D) METROPOLITAN COMMUTER TRANSPORTATION DISTRICT MOBILITY TAX. IF THE
TAX-FREE NY AREA AT WHICH SUCH BUSINESS IS LOCATED IS WITHIN THE METRO-
POLITAN COMMUTER TRANSPORTATION DISTRICT (MCTD), AND SUCH BUSINESS IS AN
EMPLOYER ENGAGED IN BUSINESS WITHIN THE MCTD, THE PAYROLL EXPENSE OF
A. 8096 16
SUCH BUSINESS AT SUCH LOCATION WITHIN THE TAX-FREE NY AREA SHALL BE
EXEMPT FROM THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT MOBILITY
TAX IMPOSED UNDER ARTICLE TWENTY-THREE OF THIS CHAPTER FOR FORTY CONSEC-
UTIVE CALENDAR QUARTERS, COMMENCING WITH THE CALENDAR QUARTER DURING
WHICH THE EMPLOYER LOCATES IN THE TAX-FREE NY AREA WITHIN THE MCTD. IF
THE TAX-FREE NY AREA AT WHICH SUCH BUSINESS IS LOCATED IS WITHIN THE
MCTD AND THE OWNER OF SUCH BUSINESS IS AN INDIVIDUAL WHO HAS NET EARN-
INGS FROM SELF-EMPLOYMENT AT SUCH LOCATION, SUCH NET EARNINGS SHALL BE
EXEMPT FROM THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT MOBILITY
TAX IMPOSED UNDER ARTICLE TWENTY-THREE OF THIS CHAPTER FOR TEN CONSEC-
UTIVE TAXABLE YEARS COMMENCING WITH THE TAXABLE YEAR DURING WHICH THE
BUSINESS LOCATES IN THE TAX-FREE NY AREA.
(E) TO THE EXTENT SPECIFIED, THE WAGES OF AN INDIVIDUAL WHO IS AN
EMPLOYEE OF SUCH BUSINESS LOCATED WITHIN A TAX-FREE NY AREA RECEIVED
FROM SUCH BUSINESS FOR EMPLOYMENT IN SUCH TAX-FREE NY AREA SHALL BE
EXCLUDED FROM TAXATION UNDER THE PERSONAL INCOME TAX IMPOSED UNDER ARTI-
CLE TWENTY-TWO OF THIS CHAPTER, THE NEW YORK CITY PERSONAL INCOME TAX
IMPOSED UNDER THE AUTHORITY OF ARTICLE THIRTY OF THIS CHAPTER, THE YONK-
ERS CITY INCOME TAX IMPOSED UNDER THE AUTHORITY OF ARTICLE THIRTY-A OF
THIS CHAPTER, AND THE YONKERS EARNINGS TAX ON NON-RESIDENTS DURING THE
TEN TAXABLE YEAR PERIOD FOR SUCH BUSINESS SPECIFIED IN SUBDIVISION (A)
OF THIS SECTION, PROVIDED THE REQUIREMENTS OF THIS SUBDIVISION ARE
SATISFIED.
(I) THE INDIVIDUAL WHEN EMPLOYED BY SUCH BUSINESS MUST BE ENGAGED IN
WORK PERFORMED EXCLUSIVELY AT THE LOCATION WITHIN THE TAX-FREE NY AREA
DURING THE TAXABLE YEAR.
(II) THE INDIVIDUAL WHEN EMPLOYED BY SUCH BUSINESS MUST BE ENGAGED IN
WORK AT THE LOCATION OF SUCH BUSINESS WITHIN THE TAX-FREE NY AREA FOR AT
LEAST ONE-HALF OF THE TAXABLE YEAR.
(III) SUCH BUSINESS MUST BE IN COMPLIANCE WITH THE REQUIREMENTS SET
FORTH IN SUBDIVISION (A) OF THIS SECTION.
(IV) THE INDIVIDUAL MUST BE EMPLOYED BY SUCH BUSINESS IN A NET NEW JOB
CREATED BY SUCH BUSINESS IN THE TAX-FREE NY AREA.
(F) SALES AND USE TAX. SUCH BUSINESS SHALL BE ELIGIBLE FOR A CREDIT OR
REFUND FOR SALES AND USE TAXES IMPOSED ON THE RETAIL SALE OF TANGIBLE
PERSONAL PROPERTY OR SERVICES UNDER SUBDIVISIONS (A), (B), AND (C) OF
SECTION ELEVEN HUNDRED FIVE AND SECTION ELEVEN HUNDRED TEN OF THIS CHAP-
TER AND SIMILAR TAXES IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE TWEN-
TY-NINE OF THIS CHAPTER. THE CREDIT OR REFUND SHALL BE ALLOWED FOR ONE
HUNDRED TWENTY CONSECUTIVE MONTHS BEGINNING WITH THE MONTH DURING WHICH
SUCH BUSINESS LOCATES IN THE TAX-FREE NY AREA.
(G) REAL ESTATE TRANSFER TAXES. ANY LEASE OF PROPERTY TO SUCH BUSINESS
SHALL BE EXEMPT FROM ANY STATE OR LOCAL REAL ESTATE TRANSFER TAX OR REAL
PROPERTY TRANSFER TAX.
(H) (A) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY,
THE COMMISSIONER, TO THE EXTENT PRACTICABLE, MAY DISCLOSE PUBLICLY THE
NAMES AND ADDRESSES OF THE BUSINESSES RECEIVING ANY OF THE TAX BENEFITS
SPECIFIED IN THIS SECTION. IN ADDITION, THE COMMISSIONER MAY DISCLOSE
PUBLICLY THE AMOUNTS OF SUCH BENEFITS ALLOWED TO EACH SUCH BUSINESS, AND
WHETHER OR NOT A BUSINESS CREATED OR MAINTAINED NET NEW JOBS DURING THE
TAXABLE YEAR. WITH REGARD TO THE INCOME TAX EXEMPTION SPECIFIED IN
SUBDIVISION (E) OF THIS SECTION, THE COMMISSIONER MAY PUBLICLY DISCLOSE
THE AGGREGATE AMOUNTS OF SUCH TAX EXEMPTION ALLOWED TO EMPLOYEES. IN
ADDITION, THE COMMISSIONER MAY PUBLICLY DISCLOSE THE NUMBER OF NET NEW
JOBS SUCH BUSINESS REPORTS ON ITS TAX RETURN OR REPORT OR ANY OTHER
INFORMATION NECESSARY FOR THE COMMISSIONER OF ECONOMIC DEVELOPMENT OR
A. 8096 17
THE CAMPUS, COLLEGE OR UNIVERSITY SPONSORING THE TAX-FREE NY AREA
APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW
TO MONITOR AND ENFORCE COMPLIANCE WITH THE LAW, RULES AND REGULATIONS
GOVERNING THE START-UP NY PROGRAM.
(B) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, THE
COMMISSIONER, IN DETERMINING WHETHER A BUSINESS OR ANY OF ITS OWNERS IS
ENTITLED TO THE TAX BENEFITS DESCRIBED IN THIS SECTION, MAY UTILIZE AND
IF NECESSARY, DISCLOSE TO THE COMMISSIONER OF ECONOMIC DEVELOPMENT,
INFORMATION DERIVED FROM THE TAX RETURNS OF SUCH BUSINESS OR RELATED
PERSONS OF SUCH BUSINESS AND WAGE REPORTING INFORMATION RELATING TO ANY
EMPLOYEES OF SUCH BUSINESS OR ITS RELATED PERSONS.
(I) SUCH BUSINESS SHALL NOT BE ALLOWED TO CLAIM ANY OTHER TAX CREDIT
ALLOWED UNDER THIS CHAPTER WITH RESPECT TO ITS ACTIVITIES OR EMPLOYEES
IN SUCH TAX-FREE NY AREA.
(J) IF THE APPLICATION OF A BUSINESS FOR PARTICIPATION IN THE START-UP
NY PROGRAM SPECIFIES THAT FAILURE TO MEET THE PERFORMANCE BENCHMARKS
SPECIFIED IN SUCH APPLICATION SHALL RESULT IN PROPORTIONAL RECOVERY OF
TAX BENEFITS AWARDED UNDER THE START-UP NY PROGRAM, THE BUSINESS SHALL
BE REQUIRED TO REDUCE THE TOTAL AMOUNT OF TAX BENEFITS DESCRIBED IN THIS
SECTION THAT THE BUSINESS OR ITS OWNERS CLAIMED OR RECEIVED DURING THE
TAXABLE YEAR BY THE PERCENTAGE REDUCTION IN NET NEW JOBS PROMISED BY THE
PERFORMANCE BENCHMARKS, AND IF THE TAX BENEFITS ARE REDUCED TO AN AMOUNT
LESS THAN ZERO, THOSE NEGATIVE AMOUNTS SHALL BE ADDED BACK AS TAX. THE
AMOUNT REQUIRED TO BE ADDED BACK SHALL BE REPORTED ON SUCH BUSINESS'S
CORPORATE FRANCHISE TAX REPORT IF SUCH BUSINESS IS TAXED AS A CORPO-
RATION OR ON THE CORPORATE FRANCHISE TAX REPORTS OR PERSONAL INCOME TAX
RETURNS OF THE OWNERS OF SUCH BUSINESS IF SUCH BUSINESS IS TAXED AS A
SOLE PROPRIETORSHIP, PARTNERSHIP OR NEW YORK S CORPORATION.
(K) CROSS-REFERENCES. FOR APPLICATION OF THE TAX BENEFITS PROVIDED FOR
IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) SECTION 40.
(2) ARTICLE 9: SECTION 180, SUBDIVISION 3.
(3) ARTICLE 9: SECTION 181, SUBDIVISION 3.
(4) ARTICLE 9-A: SECTION 210, SUBDIVISION 47.
(5) ARTICLE 22: SECTION 606, SUBSECTION (I), PARAGRAPH (1), SUBPARA-
GRAPH (B), CLAUSE (XXXVI).
(6) ARTICLE 22: SECTION 606, SUBSECTION (WW).
(7) ARTICLE 22: SECTION 612, SUBSECTION (C), PARAGRAPH (40).
(8) ARTICLE 23: SECTION 803.
(9) ARTICLE 28: SECTION 1119, SUBDIVISION (D).
(10) ARTICLE 31: SECTION 1405, SUBDIVISION (B), PARAGRAPH 11.
S 3. The tax law is amended by adding a new section 39-a to read as
follows:
S 39-A. PENALTIES FOR FRAUD IN THE START-UP NY PROGRAM. IF THE COMMIS-
SIONER OF ECONOMIC DEVELOPMENT ON HIS OR HER OWN INITIATIVE OR ON THE
RECOMMENDATION OF A SPONSORING CAMPUS, UNIVERSITY OR COLLEGE FINALLY
DETERMINES THAT ANY SUCH BUSINESS PARTICIPATING IN THE START-UP NY
PROGRAM AUTHORIZED UNDER ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT
LAW HAS ACTED FRAUDULENTLY IN CONNECTION WITH ITS PARTICIPATION IN SUCH
PROGRAM, SUCH BUSINESS:
(A) SHALL BE IMMEDIATELY TERMINATED FROM SUCH PROGRAM;
(B) SHALL BE SUBJECT TO APPLICABLE CRIMINAL PENALTIES, INCLUDING BUT
NOT LIMITED TO THE FELONY CRIME OF OFFERING A FALSE INSTRUMENT FOR
FILING IN THE FIRST DEGREE PURSUANT TO SECTION 175.35 OF THE PENAL LAW;
AND
A. 8096 18
(C) SHALL BE REQUIRED IN THAT YEAR TO ADD BACK TO TAX THE TOTAL VALUE
OF THE TAX BENEFITS DESCRIBED IN SECTION THIRTY-NINE OF THIS ARTICLE
THAT SUCH BUSINESS HAS RECEIVED AND THAT THE EMPLOYEES OF SUCH BUSINESS
HAVE RECEIVED UP TO THE DATE OF SUCH FINDING. THE AMOUNT REQUIRED TO BE
ADDED BACK SHALL BE REPORTED ON SUCH BUSINESS'S CORPORATE FRANCHISE
REPORT IF SUCH BUSINESS IS TAXED AS A CORPORATION OR ON THE CORPORATE
FRANCHISE TAX REPORTS OR PERSONAL INCOME TAX RETURNS OF THE OWNERS OF
SUCH BUSINESS IF SUCH BUSINESS IS TAXED AS A SOLE PROPRIETORSHIP, PART-
NERSHIP OR NEW YORK S CORPORATION.
S 4. The tax law is amended by adding a new section 40 to read as
follows:
S 40. THE TAX-FREE NY AREA TAX ELIMINATION CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER THAT IS A BUSINESS OR OWNER OF A BUSINESS IN THE CASE
OF A BUSINESS TAXED AS A SOLE PROPRIETORSHIP, PARTNERSHIP OR NEW YORK S
CORPORATION, THAT IS LOCATED IN A TAX-FREE NY AREA APPROVED PURSUANT TO
ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW AND IS SUBJECT TO TAX
UNDER ARTICLE NINE-A, OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A
CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDI-
VISION (E) OF THIS SECTION, TO BE COMPUTED AS HEREINAFTER PROVIDED.
(B) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT
OF: (1) THE TAX-FREE AREA ALLOCATION FACTOR; AND (2) THE TAX FACTOR.
(C) TAX-FREE AREA ALLOCATION FACTOR. THE TAX-FREE AREA ALLOCATION
FACTOR SHALL BE THE PERCENTAGE REPRESENTING THE BUSINESS'S ECONOMIC
PRESENCE IN THE TAX-FREE NY AREA IN WHICH THE BUSINESS WAS APPROVED TO
LOCATE PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW.
THIS PERCENTAGE SHALL BE COMPUTED BY:
(1) ASCERTAINING THE PERCENTAGE THAT THE AVERAGE VALUE OF THE BUSI-
NESS'S REAL AND TANGIBLE PERSONAL PROPERTY, WHETHER OWNED OR RENTED TO
IT, IN THE TAX-FREE NY AREA IN WHICH THE BUSINESS WAS LOCATED DURING THE
PERIOD COVERED BY THE TAXPAYER'S REPORT OR RETURN BEARS TO THE AVERAGE
VALUE OF THE BUSINESS'S REAL AND TANGIBLE PERSONAL PROPERTY, WHETHER
OWNED OR RENTED TO IT, WITHIN THE STATE DURING SUCH PERIOD; PROVIDED
THAT THE TERM "VALUE OF THE BUSINESS'S REAL AND TANGIBLE PERSONAL PROP-
ERTY" SHALL HAVE THE SAME MEANING AS SUCH TERM HAS IN SUBPARAGRAPH ONE
OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION TWO HUNDRED TEN OF THIS
CHAPTER; AND
(2) ASCERTAINING THE PERCENTAGE THAT THE TOTAL WAGES, SALARIES AND
OTHER PERSONAL SERVICE COMPENSATION, SIMILARLY COMPUTED, DURING SUCH
PERIOD OF EMPLOYEES, EXCEPT GENERAL EXECUTIVE OFFICERS, EMPLOYED AT THE
BUSINESS'S LOCATION IN THE TAX-FREE NY AREA, BEARS TO THE TOTAL WAGES,
SALARIES AND OTHER PERSONAL SERVICE COMPENSATION, SIMILARLY COMPUTED,
DURING SUCH PERIOD, OF ALL THE BUSINESS'S EMPLOYEES WITHIN THE STATE,
EXCEPT GENERAL EXECUTIVE OFFICERS; AND
(3) ADDING TOGETHER THE PERCENTAGES SO DETERMINED AND DIVIDING THE
RESULT BY TWO.
FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER, REFERENCES IN THIS
SUBDIVISION TO PROPERTY, WAGES, SALARIES AND OTHER PERSONAL SERVICE
COMPENSATION SHALL BE DEEMED TO BE REFERENCES TO SUCH ITEMS CONNECTED
WITH THE CONDUCT OF A BUSINESS.
(D) TAX FACTOR. (1) GENERAL. THE TAX FACTOR SHALL BE, IN THE CASE OF
ARTICLE NINE-A OF THIS CHAPTER, THE LARGEST OF THE AMOUNTS OF TAX DETER-
MINED FOR THE TAXABLE YEAR UNDER PARAGRAPHS (A) THROUGH (D) OF SUBDIVI-
SION ONE OF SECTION TWO HUNDRED TEN OF SUCH ARTICLE AFTER THE DEDUCTION
OF ANY OTHER CREDITS ALLOWABLE UNDER 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
A. 8096 19
SIX HUNDRED ONE OF SUCH ARTICLE AFTER THE DEDUCTION OF ANY OTHER CREDITS
ALLOWABLE UNDER SUCH ARTICLE.
(2) SOLE PROPRIETORS, PARTNERS AND S CORPORATION SHAREHOLDERS. (A)
WHERE THE TAXPAYER IS A SOLE PROPRIETOR OF A BUSINESS LOCATED IN A TAX-
FREE NY AREA, THE TAXPAYER'S TAX FACTOR SHALL BE THAT PORTION OF THE
AMOUNT DETERMINED IN PARAGRAPH ONE OF THIS SUBDIVISION THAT IS ATTRIBUT-
ABLE TO THE INCOME OF THE BUSINESS AT ITS LOCATION IN THE TAX-FREE NY
AREA. SUCH ATTRIBUTION SHALL BE MADE IN ACCORDANCE WITH THE RATIO OF THE
TAXPAYER'S INCOME FROM SUCH BUSINESS ALLOCATED WITHIN THE STATE, ENTER-
ING 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 THAT REASONABLY
REFLECTS THE PORTION OF THE TAXPAYER'S TAX ATTRIBUTABLE TO THE INCOME OF
SUCH BUSINESS. IN NO EVENT MAY THE RATIO SO DETERMINED EXCEED 1.0. THE
INCOME FROM SUCH BUSINESS ALLOCATED WITHIN THE STATE SHALL BE DETERMINED
AS IF THE SOLE PROPRIETOR WAS A NON-RESIDENT.
(B)(I) WHERE THE TAXPAYER IS A MEMBER OF A PARTNERSHIP THAT IS A BUSI-
NESS LOCATED IN A TAX-FREE NY AREA, THE TAXPAYER'S TAX FACTOR SHALL BE
THAT PORTION OF THE AMOUNT DETERMINED IN PARAGRAPH ONE OF THIS SUBDIVI-
SION THAT 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 THAT 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. THE
INCOME FROM THE PARTNERSHIP ALLOCATED WITHIN THE STATE SHALL BE DETER-
MINED AS IF ANY OF THE PARTNERS WAS A NON-RESIDENT.
(II) FOR PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER, THE TERM "PART-
NER'S INCOME FROM THE PARTNERSHIP" MEANS PARTNERSHIP ITEMS OF INCOME,
GAIN, LOSS AND DEDUCTION, AND NEW YORK MODIFICATIONS THERETO, ENTERING
INTO ENTIRE NET INCOME OR MINIMUM TAXABLE INCOME AND THE TERM "PARTNER'S
ENTIRE INCOME" MEANS ENTIRE NET INCOME OR MINIMUM TAXABLE INCOME, ALLO-
CATED WITHIN THE STATE. FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAP-
TER, 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
THAT IS A BUSINESS LOCATED IN A TAX-FREE NY AREA, THE SHAREHOLDER'S TAX
FACTOR SHALL BE THAT PORTION OF THE AMOUNT DETERMINED IN PARAGRAPH ONE
OF THIS SUBDIVISION THAT 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
THAT REASONABLY REFLECTS THE PORTION OF THE SHAREHOLDER'S TAX ATTRIBUT-
ABLE TO THE INCOME OF SUCH BUSINESS. THE INCOME OF THE S CORPORATION
ALLOCATED WITHIN THE STATE SHALL BE DETERMINED BY MULTIPLYING THE INCOME
OF THE S CORPORATION BY THE BUSINESS ALLOCATION FACTOR COMPUTED UNDER
PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE WITHOUT REGARD TO SUBPARAGRAPH TEN OF SUCH PARAGRAPH (A). IN NO
EVENT MAY THE RATIO SO DETERMINED EXCEED 1.0.
(3) COMBINED RETURNS OR REPORTS. (A) WHERE THE TAXPAYER IS A BUSINESS
LOCATED IN A TAX-FREE NY AREA AND IS REQUIRED OR PERMITTED TO MAKE A
A. 8096 20
RETURN OR REPORT ON A COMBINED BASIS UNDER ARTICLE NINE-A OF THIS CHAP-
TER, THE TAXPAYER'S TAX FACTOR SHALL BE THE AMOUNT DETERMINED IN PARA-
GRAPH ONE OF THIS SUBDIVISION THAT IS ATTRIBUTABLE TO THE INCOME OF SUCH
BUSINESS. SUCH ATTRIBUTION SHALL BE MADE IN ACCORDANCE WITH THE RATIO OF
THE BUSINESS'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 THAT REASONABLY REFLECTS THE
PORTION OF THE COMBINED GROUP'S TAX ATTRIBUTABLE TO THE INCOME OF SUCH
BUSINESS. IN NO EVENT MAY THE RATIO SO DETERMINED EXCEED 1.0.
(B) THE TERM "INCOME OF THE BUSINESS LOCATED IN A TAX-FREE NY AREA"
MEANS ENTIRE NET INCOME OR MINIMUM TAXABLE INCOME CALCULATED AS IF THE
TAXPAYER WAS FILING SEPARATELY AND THE TERM "COMBINED GROUP'S INCOME"
MEANS ENTIRE NET INCOME OR MINIMUM TAXABLE INCOME AS SHOWN ON THE
COMBINED REPORT, ALLOCATED WITHIN THE STATE.
(4) IF A BUSINESS IS GENERATING OR RECEIVING INCOME FROM A LINE OF
BUSINESS OR INTANGIBLE PROPERTY THAT WAS PREVIOUSLY CONDUCTED, CREATED
OR DEVELOPED BY THE BUSINESS OR A RELATED PERSON, AS THAT TERM IS
DEFINED IN SECTION FOUR HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT
LAW, THE TAX FACTOR SPECIFIED IN THIS SUBDIVISION SHALL BE ADJUSTED TO
DISREGARD SUCH INCOME.
(E) 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 47.
(2) ARTICLE 22: SECTION 606, SUBSECTION (I), PARAGRAPH (1), SUBPARA-
GRAPH (B), CLAUSE (XXXVI).
(3) ARTICLE 22: SECTION 606, SUBSECTION (WW).
S 5. Section 180 of the tax law is amended by adding a new subdivision
3 to read as follows:
3. A CORPORATION THAT IS LOCATED EXCLUSIVELY WITHIN THE STATE IN A
TAX-FREE NY AREA APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC
DEVELOPMENT LAW SHALL BE EXEMPT FROM THE TAX IMPOSED BY THIS SECTION.
S 6. Section 181 of the tax law is amended by adding a new subdivision
3 to read as follows:
3. A CORPORATION THAT IS ACCEPTED TO LOCATE IN A TAX-FREE NY AREA AND
IS LOCATED EXCLUSIVELY WITHIN THE STATE IN A TAX-FREE NY AREA APPROVED
PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW SHALL BE
EXEMPT FROM: (A) THE LICENSE FEE IMPOSED BY SUBDIVISION ONE OF THIS
SECTION; AND (B) PROVIDED THAT THE CORPORATION SATISFIES THE REQUIRE-
MENTS IN SUBDIVISION (A) OF SECTION THIRTY-NINE OF THIS CHAPTER, THE
ANNUAL MAINTENANCE FEE IMPOSED BY SUBDIVISION TWO OF THIS SECTION.
S 7. Section 210 of the tax law is amended by adding a new subdivision
47 to read as follows:
47. THE TAX-FREE NY AREA TAX ELIMINATION CREDIT. A TAXPAYER SHALL BE
ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION FORTY OF THIS
CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. UNLESS THE TAXPAYER
HAS A TAX-FREE NY AREA ALLOCATION FACTOR OF ONE HUNDRED PERCENT, THE
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT
REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN
PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, ANY AMOUNT OF
CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVER-
PAYMENT OF TAX TO BE CREDITED OR 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 EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
A. 8096 21
S 8. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xxxvi) to read as
follows:
(XXXVI) TAX-FREE NY AREA TAX AMOUNT OF CREDIT UNDER
ELIMINATION CREDIT SUBDIVISION FORTY-SEVEN OF
SECTION TWO HUNDRED TEN
S 9. Section 606 of the tax law is amended by adding a new subsection
(ww) to read as follows:
(WW) TAX-FREE NY AREA TAX ELIMINATION CREDIT. (1) ALLOWANCE OF CREDIT.
A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED UNDER
SECTION FORTY 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 EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE PAID
THEREON.
S 10. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 40 to read as follows:
(40) ANY WAGES RECEIVED BY AN INDIVIDUAL AS AN EMPLOYEE OF A BUSINESS
LOCATED WITHIN A TAX-FREE NY AREA DURING THE FIRST FIVE YEARS OF SUCH
BUSINESS'S TEN YEAR TAXABLE PERIOD SPECIFIED IN SUBDIVISION (A) OF
SECTION THIRTY-NINE OF THIS CHAPTER, TO THE EXTENT INCLUDED IN FEDERAL
ADJUSTED GROSS INCOME AND ALLOWED UNDER SECTION THIRTY-NINE OF THIS
CHAPTER. DURING THE SECOND FIVE YEARS OF SUCH BUSINESS'S TEN YEAR TAXA-
BLE PERIOD, THE FIRST TWO HUNDRED THOUSAND DOLLARS OF SUCH WAGES IN THE
CASE OF A TAXPAYER FILING AS A SINGLE INDIVIDUAL, THE FIRST TWO HUNDRED
FIFTY THOUSAND DOLLARS OF SUCH WAGES IN THE CASE OF A TAXPAYER FILING AS
A HEAD OF HOUSEHOLD, AND THREE HUNDRED THOUSAND DOLLARS OF SUCH WAGES IN
THE CASE OF A TAXPAYER FILING A JOINT RETURN, TO THE EXTENT INCLUDED IN
FEDERAL ADJUSTED GROSS INCOME AND ALLOWED UNDER SECTION THIRTY-NINE OF
THIS CHAPTER.
S 11. Section 803 of the tax law, as added by section 1 of part C of
chapter 25 of the laws of 2009, is amended to read as follows:
S 803. Exemption override. [Any] (A) EXCEPT AS PROVIDED IN SUBDIVISION
(B) OF THIS SECTION, ANY exemption from tax specified in any other New
York state law will not apply to the tax imposed by this article.
(B) IF A TAX-FREE NY AREA APPROVED PURSUANT TO THE PROVISIONS OF ARTI-
CLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW IS LOCATED WITHIN THE
MCTD, THE PAYROLL EXPENSE IN SUCH TAX-FREE NY AREA OF ANY EMPLOYER THAT
IS LOCATED IN SUCH AREA AND ACCEPTED INTO THE START-UP NY PROGRAM SHALL
BE EXEMPT FROM THE TAX IMPOSED UNDER THIS ARTICLE. IN ADDITION, THE NET
EARNINGS FROM SELF-EMPLOYMENT OF AN INDIVIDUAL FROM A BUSINESS IN SUCH
TAX-FREE NY AREA THAT IS ACCEPTED INTO THE START-UP NY PROGRAM SHALL BE
EXEMPT FROM THE TAX IMPOSED UNDER THIS ARTICLE.
S 12. Paragraphs 1 and 2 of subdivision (d) of section 1119 of the tax
law, paragraph 1 as amended by section 6 of part C of chapter 59 of the
laws of 2013 and paragraph 2 as added by section 31 of part S1 of chap-
ter 57 of the laws of 2009, are amended to read as follows:
(1) Subject to the conditions and limitations provided for in this
section, a refund or credit will be allowed for taxes imposed on the
retail sale of tangible personal property described in subdivision (a)
of section eleven hundred five of this article, and on every sale of
services described in subdivisions (b) and (c) of such section, and
consideration given or contracted to be given for, or for the use of,
such tangible personal property or services, where such tangible
A. 8096 22
personal property or services are sold to a qualified empire zone enter-
prise or to a qualified entity that is also a tenant in or part of a New
York state innovation hot spot as provided in section thirty-eight of
this chapter OR TO A BUSINESS LOCATED IN A TAX-FREE NY AREA APPROVED
PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW, provided
that (A) such tangible personal property or tangible personal property
upon which such a service has been performed or such service (other than
a service described in subdivision (b) of section eleven hundred five of
this article) is directly and predominantly, or such a service described
in clause (A) or (D) of paragraph one of such subdivision (b) of section
eleven hundred five of this article is directly and exclusively, used or
consumed by (i) such qualified empire zone enterprise in an area desig-
nated as an empire zone pursuant to article eighteen-B of the general
municipal law with respect to which such enterprise is certified pursu-
ant to such article eighteen-B, or (ii) such qualified entity at its
location in or as part of a New York state innovation hot spot, OR (III)
SUCH BUSINESS AT ITS LOCATION IN SUCH TAX-FREE NY AREA, or (B) such a
service described in clause (B) or (C) of paragraph one of subdivision
(b) of section eleven hundred five of this article is delivered and
billed to (i) such enterprise at an address in such empire zone or (ii)
such qualified entity at its location in or as part of the New York
state innovation hot spot, or (III) SUCH BUSINESS AT ITS LOCATION IN
SUCH TAX-FREE NY AREA, OR (C) the enterprise's place of primary use of
the service described in paragraph two of such subdivision (b) of
section eleven hundred five is at an address in such empire zone or at
its location in or as part of a New York state innovation hot spot, OR
AT ITS LOCATION IN SUCH TAX-FREE NY AREA; provided, further, that, in
order for a motor vehicle, as defined in subdivision (c) of section
eleven hundred seventeen of this article, or tangible personal property
related to such a motor vehicle to be found to be used predominantly in
such a zone, at least fifty percent of such motor vehicle's use shall be
exclusively within such zone or at least fifty percent of such motor
vehicle's use shall be in activities originating or terminating in such
zone, or both; and either or both such usages shall be computed either
on the basis of mileage or hours of use, at the discretion of such
enterprise. For purposes of this subdivision, tangible personal property
related to such a motor vehicle shall include a battery, diesel motor
fuel, an engine, engine components, motor fuel, a muffler, tires and
similar tangible personal property used in or on such a motor vehicle.
(2) Subject to the conditions and limitations provided for in this
section, a refund or credit will be allowed for taxes imposed on the
retail sale of, and consideration given or contracted to be given for,
or for the use of, tangible personal property sold to a contractor,
subcontractor or repairman for use in (A) erecting a structure or build-
ing of a qualified empire zone enterprise OR A BUSINESS LOCATED IN A
TAX-FREE NY AREA APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC
DEVELOPMENT LAW, (B) adding to, altering or improving real property,
property or land of such an enterprise OR SUCH BUSINESS, or (C) main-
taining, servicing or repairing real property, property or land of such
an enterprise OR OF SUCH BUSINESS, as the terms real property, property
or land are defined in the real property tax law; provided, however, no
credit or refund will be allowed under this paragraph unless such tangi-
ble personal property is to become an integral component part of such
structure, building, real property, property or land located in an area
designated as an empire zone pursuant to article eighteen-B of the
general municipal law in, and with respect to which such enterprise is
A. 8096 23
certified pursuant to such article eighteen-B, OR IN AN AREA APPROVED AS
A TAX-FREE NY AREA PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC DEVEL-
OPMENT LAW WHERE SUCH BUSINESS IS LOCATED.
S 13. Subdivision (b) of section 1405 of the tax law is amended by
adding a new paragraph 11 to read as follows:
11. CONVEYANCES OF REAL PROPERTY LOCATED IN TAX-FREE NY AREAS APPROVED
PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW TO BUSI-
NESSES LOCATED IN SUCH AREAS THAT ARE PARTICIPATING IN THE START-UP NY
PROGRAM PURSUANT TO SUCH ARTICLE TWENTY-ONE.
S 14. The exemption described in paragraph 11 of subdivision (b) of
section 1405 of the tax law, as added by section thirteen of this act,
shall also apply to any local real estate transfer tax or local real
property transfer tax imposed by a county or municipality pursuant to
the authority of the tax law.
S 15. Subdivision (c) of section 11-1712 of the administrative code of
the city of New York is amended by adding a new paragraph 36 to read as
follows:
(36) ANY WAGES RECEIVED BY AN INDIVIDUAL AS AN EMPLOYEE OF A BUSINESS
LOCATED WITHIN A TAX-FREE NY AREA DURING THE FIRST FIVE YEARS OF SUCH
BUSINESS'S TEN YEAR TAXABLE PERIOD SPECIFIED IN SUBDIVISION (A) OF
SECTION THIRTY-NINE OF THE TAX LAW TO THE EXTENT INCLUDED IN FEDERAL
ADJUSTED GROSS INCOME AND ALLOWED UNDER SECTION THIRTY-NINE OF THE TAX
LAW. DURING THE SECOND FIVE YEARS OF SUCH BUSINESS'S TEN YEAR TAXABLE
PERIOD, THE FIRST TWO HUNDRED THOUSAND DOLLARS OF SUCH WAGES IN THE CASE
OF A TAXPAYER FILING AS A SINGLE INDIVIDUAL, THE FIRST TWO HUNDRED FIFTY
THOUSAND DOLLARS OF SUCH WAGES IN THE CASE OF A TAXPAYER FILING AS A
HEAD OF HOUSEHOLD, AND THREE HUNDRED THOUSAND DOLLARS OF SUCH WAGES IN
THE CASE OF A TAXPAYER FILING A JOINT RETURN, TO THE EXTENT INCLUDED IN
FEDERAL ADJUSTED GROSS INCOME AND ALLOWED UNDER SECTION THIRTY-NINE OF
THE TAX LAW.
S 16. Section 1340 of the tax law is amended by adding a new
subsection (d) to read as follows:
(D) ANY WAGES RECEIVED BY AN INDIVIDUAL AS AN EMPLOYEE OF A BUSINESS
LOCATED IN A TAX-FREE NY AREA WITHIN THE CITY DURING THE FIRST FIVE
YEARS OF SUCH BUSINESS'S TEN YEAR TAXABLE PERIOD SPECIFIED IN SUBDIVI-
SION (A) OF SECTION THIRTY-NINE OF THIS CHAPTER AND EARNED AT SUCH
LOCATION SHALL BE EXEMPT FROM THE TAX AUTHORIZED TO BE IMPOSED BY THIS
ARTICLE TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME AND
ALLOWED UNDER SECTION THIRTY-NINE OF THIS CHAPTER. DURING THE SECOND
FIVE YEARS OF SUCH BUSINESS'S TEN YEAR TAXABLE PERIOD, THE FIRST TWO
HUNDRED THOUSAND DOLLARS OF SUCH WAGES IN THE CASE OF A TAXPAYER FILING
AS A SINGLE INDIVIDUAL, THE FIRST TWO HUNDRED FIFTY THOUSAND DOLLARS OF
SUCH WAGES IN THE CASE OF A TAXPAYER FILING AS A HEAD OF HOUSEHOLD, AND
THREE HUNDRED THOUSAND DOLLARS OF SUCH WAGES IN THE CASE OF A TAXPAYER
FILING A JOINT RETURN, TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS
INCOME AND ALLOWED UNDER SECTION THIRTY-NINE OF THIS CHAPTER.
S 17. Subdivision 2 of section 420-a of the real property tax law, as
amended by chapter 534 of the laws of 2003, is amended to read as
follows:
2. If any portion of such real property is not so used exclusively to
carry out thereupon one or more of such purposes but is leased or other-
wise used for other purposes, such portion shall be subject to taxation
and the remaining portion only shall be exempt; provided, however, that
such real property shall be fully exempt from taxation although it or a
portion thereof is used (a) for purposes which are exempt pursuant to
this section or sections four hundred twenty-b, four hundred twenty-two,
A. 8096 24
four hundred twenty-four, four hundred twenty-six, four hundred twenty-
eight, four hundred thirty or four hundred fifty of this chapter by
another corporation which owns real property exempt from taxation pursu-
ant to such sections or whose real property if it owned any would be
exempt from taxation pursuant to such sections, (b) for purposes which
are exempt pursuant to section four hundred six or section four hundred
eight of this chapter by a corporation which owns real property exempt
from taxation pursuant to such section or if it owned any would be
exempt from taxation pursuant to such section, (c) for purposes which
are exempt pursuant to section four hundred sixteen of this chapter by
an organization which owns real property exempt from taxation pursuant
to such section or whose real property if it owned any would be exempt
from taxation pursuant to such section [or], (d) for purposes relating
to civil defense pursuant to the New York state defense emergency act,
including but not limited to activities in preparation for anticipated
attack, during attack, or following attack or false warning thereof, or
in connection with drill or test ordered or directed by civil defense
authorities, OR (E) FOR PURPOSES OF A TAX-FREE NY AREA THAT HAS BEEN
APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW,
SUBJECT TO THE CONDITIONS THAT THE REAL PROPERTY MUST HAVE BEEN OWNED BY
THE CORPORATION OR ASSOCIATION ORGANIZED EXCLUSIVELY FOR EDUCATIONAL
PURPOSES AND EXEMPT PURSUANT TO THIS SECTION ON JUNE FIRST, TWO THOUSAND
THIRTEEN, AND THAT THE EXEMPTION SHALL APPLY ONLY TO THE PORTION OF SUCH
REAL PROPERTY THAT IS USED FOR PURPOSES OF THE START-UP NY PROGRAM; and
provided further that such real property shall be exempt from taxation
only so long as it or a portion thereof, as the case may be, is devoted
to such exempt purposes and so long as any moneys paid for such use do
not exceed the amount of the carrying, maintenance and depreciation
charges of the property or portion thereof, as the case may be.
S 18. Paragraph a of subdivision 2 of section 355 of the education
law, as amended by section 1 of subpart A of part D of chapter 58 of the
laws of 2011, is amended to read as follows:
a. To take, hold and administer on behalf of the state university or
any institution therein, real and personal property or any interest
therein and the income thereof either absolutely or in trust for any
educational or other purpose within the jurisdiction and corporate
purposes of the state university. The trustees may acquire property for
such purposes by purchase, appropriation or lease and by the acceptance
of gifts, grants, bequests and devises, and, within appropriations made
therefor, may equip and furnish buildings and otherwise improve property
owned, used or occupied by the state university or any institution ther-
ein. The trustees may acquire property by the acceptance of conditional
gifts, grants, devises or bequests, the provisions of section eleven of
the state finance law notwithstanding. Where real property is to be
acquired by purchase or appropriation, such acquisition shall be in
accordance with the provisions of section three hundred seven of this
chapter except that the powers and duties in said section mentioned to
be performed by the commissioner shall be performed by the state univer-
sity trustees. THE PROVISIONS OF SECTION THREE OF THE PUBLIC LANDS LAW
NOTWITHSTANDING, THE TRUSTEES MAY PROVIDE FOR THE LEASE OF STATE-OWNED
REAL PROPERTY UNDER THE JURISDICTION OF THE STATE UNIVERSITY THAT IS
PART OF A TAX-FREE NY AREA APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF
THE ECONOMIC DEVELOPMENT LAW, IN SUCH MANNER AND UPON SUCH TERMS AS THE
TRUSTEES SHALL DETERMINE, PROVIDED SUCH LEASE IS CONSISTENT WITH THE
APPROVED PLAN FOR SUCH TAX-FREE NY AREA.
A. 8096 25
S 19. Paragraph s of subdivision 2 of section 355 of the education
law, as amended by chapter 552 of the laws of 1985, is amended to read
as follows:
s. To lease or make available to the state university construction
fund, the dormitory authority or other public benefit corporation, the
New York state teachers' retirement system [or], the New York state
employees' retirement system, OR A BUSINESS THAT INTENDS TO LOCATE IN A
TAX-FREE NY AREA APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC
DEVELOPMENT LAW, a portion of the grounds or real property occupied by a
state-operated institution or statutory or contract college for the
construction, acquisition, reconstruction, rehabilitation or improvement
of academic buildings, dormitories or other facilities thereon pursuant
to article eight-A of this chapter and for the purpose of facilitating
such construction, acquisition, reconstruction, rehabilitation or
improvement, to enter into leases and agreements for the use of any such
academic building, dormitory or other facility in accordance with the
provisions of section three hundred seventy-eight of this chapter;
provided, however, that nothing herein contained shall affect the
provisions of any lease or agreement heretofore executed by the state
university with the dormitory authority. The state university trustees
may also enter into agreements with the state university construction
fund, the dormitory authority or other public benefit corporation, the
New York state teachers' retirement system [or], the New York state
employees' retirement system OR ANY BUSINESS THAT INTENDS TO LOCATE IN A
TAX-FREE NY AREA APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC
DEVELOPMENT LAW, to furnish heat from a central heating plant to any
academic building, dormitory or other facility erected by them or with
moneys supplied by them. Any such academic building, dormitory or other
facility shall not be subject to taxation for any purpose.
S 20. Subdivision 2 of section 355 of the education law is amended by
adding a new paragraph z to read as follows:
Z. IN CONNECTION WITH BUSINESS/UNIVERSITY PARTNERSHIPS IN SUPPORT OF
THE CORPORATE PURPOSES OF THE STATE UNIVERSITY, TO PARTICIPATE IN JOINT
AND COOPERATIVE ARRANGEMENTS WITH BUSINESSES THAT HAVE LOCATED IN A
TAX-FREE NY AREA APPROVED PURSUANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC
DEVELOPMENT LAW PROVIDED SUCH ARRANGEMENTS ARE CONSISTENT WITH THE
APPROVED PLAN FOR SUCH TAX-FREE NY AREA.
S 21. The education law is amended by adding a new section 361 to read
as follows:
S 361. START-UP NY PROGRAM LEASES. 1. ANY LEASE OR CONTRACT BETWEEN A
STATE UNIVERSITY CAMPUS, CITY UNIVERSITY CAMPUS OR COMMUNITY COLLEGE AS
DEFINED IN SECTION FOUR HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT
LAW AND A BUSINESS FOR THE USE OF VACANT LAND OR VACANT SPACE OWNED OR
LEASED BY SUCH STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE OR CITY
UNIVERSITY CAMPUS IN A TAX-FREE NY AREA APPROVED PURSUANT TO ARTICLE
TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW SHALL PROVIDE:
(A) THE TERM OF THE LEASE OR CONTRACT.
(B) A REQUIREMENT THAT ANY CONTRACT TO WHICH A CAMPUS OR COLLEGE IS A
PARTY, AND ANY CONTRACT ENTERED INTO BY A THIRD PARTY ACTING IN PLACE
OF, ON BEHALF OF AND FOR THE BENEFIT OF THE CAMPUS OR COLLEGE THEREIN
PURSUANT TO ANY LEASE, PERMIT OR OTHER AGREEMENT BETWEEN SUCH THIRD
PARTY AND THE CAMPUS OR COLLEGE FOR THE USE OF VACANT LAND OR VACANT
SPACE OWNED OR LEASED BY THE STATE UNIVERSITY CAMPUS, COMMUNITY COLLEGE
OR CITY UNIVERSITY CAMPUS FOR THE CONSTRUCTION, RECONSTRUCTION, DEMOLI-
TION, EXCAVATION, REHABILITATION, REPAIR, RENOVATION, ALTERATION OR
IMPROVEMENT OF A PROJECT SHALL BE SUBJECT TO ALL OF THE PROVISIONS OF
A. 8096 26
ARTICLE EIGHT OF THE LABOR LAW, INCLUDING THE ENFORCEMENT OF PREVAILING
WAGE REQUIREMENTS BY THE FISCAL OFFICER AS DEFINED IN PARAGRAPH E OF
SUBDIVISION FIVE OF SECTION TWO HUNDRED TWENTY OF THE LABOR LAW TO THE
SAME EXTENT AS A CONTRACT OF THE STATE, AND SHALL BE DEEMED A PUBLIC
WORK FOR PURPOSES OF SUCH ARTICLE.
(C) WHENEVER A PARTY TO ANY LEASE OR CONTRACT FOR PROJECTS AUTHORIZED
PURSUANT TO THIS SECTION ON LANDS LEASED OR OWNED BY THE CITY UNIVERSITY
OF NEW YORK, ENTERS INTO A CONTRACT UNDER WHICH EMPLOYEES ARE EMPLOYED
TO PERFORM BUILDING SERVICE WORK, AS THAT TERM IS DEFINED IN SECTION TWO
HUNDRED THIRTY OF THE LABOR LAW, SUCH WORK SHALL BE SUBJECT TO ARTICLE
NINE OF THE LABOR LAW TO THE SAME EXTENT AS BUILDING SERVICE WORK
PERFORMED PURSUANT TO A CONTRACT WITH A PUBLIC AGENCY.
(D) A REQUIREMENT THAT FOR THE PURPOSES OF ARTICLE FIFTEEN-A OF THE
EXECUTIVE LAW, ANY INDIVIDUAL, PUBLIC CORPORATION OR AUTHORITY, PRIVATE
CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP OR OTHER ENTITY
ENTERING INTO A CONTRACT, SUBCONTRACT, LEASE, GRANT, BOND, COVENANT OR
OTHER AGREEMENT FOR A PROJECT UNDERTAKEN BY A BUSINESS AUTHORIZED PURSU-
ANT TO ARTICLE TWENTY-ONE OF THE ECONOMIC DEVELOPMENT LAW SHALL BE
DEEMED A STATE AGENCY AS THAT TERM IS DEFINED IN SUCH ARTICLE AND SUCH
CONTRACTS SHALL BE DEEMED STATE CONTRACTS WITHIN THE MEANING OF THAT
TERM AS SET FORTH IN SUCH ARTICLE, EXCEPT THAT THIS PARAGRAPH SHALL NOT
APPLY TO ANY LEASE OR CONTRACT ENTERED INTO BY A COMMUNITY COLLEGE OF
THE STATE UNIVERSITY OF NEW YORK OR CITY UNIVERSITY OF NEW YORK.
(E) THE METES AND BOUNDS OR OTHER APPLICABLE DESCRIPTION THAT CAN BE
EASILY IDENTIFIED, SHARED AND VERIFIED BY AN INDEPENDENT THIRD PARTY OF
THE VACANT LAND OR VACANT SPACE SUBJECT TO THE CONTRACT OR LEASE.
(F) A REQUIREMENT THAT ANY LEASE, CONTRACT OR OTHER AGREEMENT SHALL
INCLUDE AN INDEMNITY PROVISION WHEREBY THE LESSEE OR SUBLESSEE PROMISES
TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE LESSOR AGAINST ALL CLAIMS,
SUITS, ACTIONS, AND LIABILITY TO ALL PERSONS ON THE LEASED PREMISES,
INCLUDING TENANT, TENANT'S AGENTS, CONTRACTORS, SUBCONTRACTORS, EMPLOY-
EES, CUSTOMERS, GUESTS, LICENSEES, INVITEES, AND MEMBERS OF THE PUBLIC,
FOR DAMAGE TO ANY SUCH PERSON'S PROPERTY, WHETHER REAL OR PERSONAL, OR
FOR PERSONAL INJURIES ARISING OUT OF TENANT'S USE OR OCCUPATION OF THE
DEMISED PREMISES.
(G) A REQUIREMENT THAT UPON THE EXPIRATION OF THE LEASE OR AGREEMENT
COVERING PROPERTY OWNED BY THE CAMPUS OR COLLEGE THE DEMISED PREMISES
AND ANY IMPROVEMENTS THEREON SHALL REVERT TO THE CAMPUS OR COLLEGE,
UNLESS THE LEASE IS RENEWED.
(H) A REQUIREMENT THAT IN THE EVENT THE DEMISED PREMISES SHALL CEASE
TO BE USED FOR THE PURPOSES DESCRIBED IN THE LEASE OR CONTRACT COVERING
PROPERTY OWNED BY THE CAMPUS OR COLLEGE, THE LEASE OR CONTRACT SHALL
TERMINATE ON THE THIRTIETH DAY AFTER NOTICE OF SUCH TERMINATION IS
MAILED TO THE BUSINESS, THE DEMISED PREMISES AND ANY IMPROVEMENTS THERE-
ON SHALL REVERT TO THE CAMPUS OR COLLEGE.
(I) A REQUIREMENT THAT ANY AND ALL PROCEEDS RELATING TO THE LEASE OR
CONTRACT SHALL BE ALLOCATED BY THE BOARD OF TRUSTEES TO THE CAMPUS OR
COLLEGE FOR WHICH SUCH CONTRACT OR LEASE APPLIES, DEPOSITED IN THE
GENERAL FUND OF SUCH CAMPUS OR COLLEGE, AND USED FOR PURPOSES INCLUDING
BUT NOT LIMITED TO STUDENT FINANCIAL AID FOR STUDENTS WHO ARE ELIGIBLE
TO RECEIVE A TUITION ASSISTANCE AWARD OR SUPPLEMENTAL TUITION ASSISTANCE
PURSUANT TO SECTION SIX HUNDRED SIXTY-SEVEN OR SIX HUNDRED SIXTY-SEVEN-A
OF THE EDUCATION LAW AND TO SUPPORT ADDITIONAL FULL-TIME FACULTY POSI-
TIONS.
2. FOR THE PURPOSES OF THIS SECTION AND FOR THE PURPOSES OF ANY LEASE
OR CONTRACT AUTHORIZED PURSUANT TO THIS SECTION: "PROJECT" SHALL MEAN
A. 8096 27
CAPITAL IMPROVEMENT WORK ON REAL PROPERTY UNDER THE JURISDICTION OF THE
CAMPUS OR COLLEGE TO BE SUBJECT TO ANY LEASE, TRANSFER OR CONVEYANCE,
OTHER THAN CONVEYANCE OF TITLE. SUCH CAPITAL IMPROVEMENT WORK SHALL
INCLUDE THE DESIGN, CONSTRUCTION, RECONSTRUCTION, DEMOLITION, EXCA-
VATION, REHABILITATION, REPAIR, RENOVATION, ALTERATION OR IMPROVEMENT OF
REAL PROPERTY UNDER THE JURISDICTION OF THE CAMPUS OR COLLEGE.
3. A PARTY TO ANY LEASE OR CONTRACT AUTHORIZED PURSUANT TO THIS
SECTION MAY REQUIRE A CONTRACTOR AWARDED A CONTRACT, SUBCONTRACT, LEASE,
GRANT, BOND, COVENANT OR OTHER AGREEMENT FOR A PROJECT TO ENTER INTO A
PROJECT LABOR AGREEMENT PURSUANT TO SECTION TWO HUNDRED TWENTY-TWO OF
THE LABOR LAW DURING AND FOR THE WORK INVOLVED WITH SUCH PROJECT WHEN
SUCH REQUIREMENT IS PART OF SUCH PARTY'S REQUEST FOR PROPOSALS FOR THE
PROJECT AND WHEN THE PARTY DETERMINES THAT THE RECORD SUPPORTING THE
DECISION TO ENTER INTO SUCH AN AGREEMENT ESTABLISHES THAT THE INTERESTS
UNDERLYING THE COMPETITIVE BIDDING LAWS ARE BEST MET BY REQUIRING A
PROJECT LABOR AGREEMENT INCLUDING: OBTAINING THE BEST WORK AT THE LOWEST
POSSIBLE PRICE; PREVENTING FAVORITISM, FRAUD AND CORRUPTION; THE IMPACT
OF DELAY; THE POSSIBILITY OF COST SAVINGS; AND ANY LOCAL HISTORY OF
LABOR UNREST.
S 22. This act shall take effect immediately; provided however that
the tax benefits specified in section 39 of the tax law, as added by
section two of this act shall apply to taxable years beginning on or
after January 1, 2014, calendar quarters beginning on or after January
1, 2014, sales tax quarters beginning on or after March 1, 2014, or
transactions occurring on or after January 1, 2014, whichever is appli-
cable; provided, further, that the amendments to paragraph a of subdivi-
sion 2 of section 355 of the education law made by section eighteen of
this act shall not affect the expiration of such paragraph and shall be
deemed to expire therewith.