Enacts into law major components of legislation necessary to implement the state fiscal plan relating to revenues of the state
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| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Mar 09, 2015 |
referred to ways and means |
Eliminates entirely the NYC STAR PIT rate reduction benefit for taxpayers with incomes above $500,000 (Part B); converts current STAR delinquency/offset program into a tax clearance program by rejecting offset and making taxpayers pay the tax liability (Part C); relates to recouping improperly granted STAR exemptions 3 year look back (Part E); allows homeowners who registered for the STAR exemption with the department of taxation and finance to receive certain exemptions (Part F)
S T A T E O F N E W Y O R K
________________________________________________________________________
6009
2015-2016 Regular Sessions
I N A S S E M B L Y
March 9, 2015
___________
Introduced by COMMITTEE ON RULES -- read once and referred to the
Committee on Ways and Means
AN ACT intentionally omitted (Part A); to amend the state finance law,
the tax law and the administrative code of the city of New York, in
relation to the New York city personal income tax rates (Part B); to
amend the real property tax law and section 3 of part B of chapter 59
of the laws of 2012 amending the real property tax law and the tax law
relating to the suspension of STAR exemptions of property owned by
persons with outstanding tax liabilities, in relation to the suspen-
sion of STAR exemptions of property owned by persons with outstanding
tax liabilities (Part C); intentionally omitted (Part D); to amend the
real property tax law, in relation to establishing a state-adminis-
tered recoupment provision to the STAR exemption program (Part E); to
amend the state finance law, in relation to making technical
corrections to the school tax relief fund; and to provide one-time
relief to STAR registrants who failed to file timely STAR exemption
applications (Part F); to amend the tax law, in relation to the real
property tax relief credit (Part G); to amend the tax law and the
administrative code of the city of New York, in relation to making the
limitation on charitable contribution deductions for certain taxpayers
permanent (Part H); to amend the tax law, the administrative code of
the city of New York and the labor law, in relation to making certain
technical corrections (Part I); to amend the tax law, in relation to a
report regarding the empire state commercial production tax credit;
and to repeal section 9 of part V of chapter 62 of the laws of 2006,
amending the tax law relating to the empire state commercial
production tax credit, relating thereto (Part J); to amend the econom-
ic development law, in relation to the eligibility of entertainment
companies for the excelsior jobs program (Part K); to amend the tax
law, in relation to costs includible in the investment credit base for
the investment tax credit on masters for films, television shows and
commercials (Part L); to amend the labor law and the tax law, in
relation to a program to provide tax incentives for employers employ-
ing at risk youth (Part M); to amend the tax law, in relation to the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD20007-01-5
A. 6009 2
business income base rate (Part N); to amend the economic development
law and the tax law, in relation to establishing a tax credit for
employers who procure skills training for employees necessary to
cultivate a talented workforce (Part O); to amend the tax law, in
relation to imposing tax on wireless telecommunications businesses
pursuant to sections 184 and 184-a of such law (Part P); to amend the
tax law, in relation to corporation tax refunds or credits (Part Q);
to amend part H of chapter 1 of the laws of 2003, amending the tax law
relating to brownfield redevelopment tax credits, remediated brown-
field credit for real property taxes for qualified sites and environ-
mental remediation insurance credits, in relation to tax credits for
certain sites; to amend the public authorities law and the environ-
mental conservation law, in relation to the environmental restoration
program (Part R); to amend the business corporation law, the limited
liability company law, the partnership law and the tax law, in
relation to the biennial statements filed with the secretary of state
(Part S); to amend the tax law, in relation to making corrections to
the corporate tax reform provisions; and repealing certain provisions
of such law relating thereto (Part T); to amend the tax law, in
relation to exempting certain items of tangible personal property
furnished to customers by certain cider producers, breweries, and
distilleries at tastings (Part U); to amend the tax law, in relation
to the imposition of the sales and compensating use tax on prepaid
mobile calling services (Part V); intentionally omitted (Part W); to
amend the tax law, in relation to requiring marketplace providers
collect sales tax (Part X); to amend the tax law, in relation to clos-
ing certain sales and compensating use tax avoidance strategies with
regard to taxes imposed by and pursuant to the authority of articles
28 and 29 of the tax law (Part Y); to amend the tax law, in relation
to exempting electricity provided by certain sources from the sales
tax imposed by article 28 of the tax law and omitting such exemption
from the taxes imposed pursuant to the authority of article 29 of the
tax law, unless a locality elects otherwise; and to repeal subdivi-
sions (n) and (p) of section 1210 of such law relating to tax
exemptions imposed by resolution in cities having a population of one
million or more persons (Part Z); to amend the tax law, in relation to
allowing a reimbursement of the petroleum business tax for highway
diesel motor fuel used in farm production (Part AA); to amend the tax
law, in relation to the computation of the estate tax (Part BB); to
amend the tax law, in relation to requiring wholesalers of motor fuel
to register and file returns (Part CC); to amend part Q of chapter 59
of the laws of 2013 amending the tax law relating to serving an income
execution with respect to individual tax debtors without filing a
warrant, in relation to the effectiveness thereof (Part DD); inten-
tionally omitted (Part EE); intentionally omitted (Part FF); inten-
tionally omitted (Part GG); intentionally omitted (Part HH); inten-
tionally omitted (Part II); intentionally omitted (Part JJ);
intentionally omitted (Part KK); intentionally omitted (Part LL); to
amend the tax law, in relation to capital awards to vendor tracks
(Part MM); to amend the racing, pari-mutuel wagering and breeding law,
in relation to licenses for simulcast facilities, sums relating to
track simulcast, simulcast of out-of-state thoroughbred races, simul-
casting of races run by out-of-state harness tracks and distributions
of wagers; to amend chapter 281 of the laws of 1994 amending the
racing, pari-mutuel wagering and breeding law and other laws relating
to simulcasting and chapter 346 of the laws of 1990 amending the
A. 6009 3
racing, pari-mutuel wagering and breeding law and other laws relating
to simulcasting and the imposition of certain taxes, in relation to
extending certain provisions thereof; and to amend the racing, pari-
mutuel wagering and breeding law, in relation to extending certain
provisions thereof (Part NN); to amend the tax law and the penal law,
in relation to video lottery gaming (Part OO); to amend the racing,
pari-mutuel wagering and breeding law, in relation to a franchised
corporation (Part PP); to amend the administrative code of the city of
New York, in relation to the taxation of business corporations (Part
QQ); to amend the tax law, in relation to the credit for certain
alternative fuel vehicle refueling property and electric vehicle
recharging property (Part RR); to amend the tax law, in relation to
the enhanced real property tax circuit breaker credit; and to amend
part K of chapter 59 of the laws of 2014, amending the tax law, relat-
ing to establishing an enhanced real property tax circuit breaker, in
relation to making such provisions permanent (Part SS); to amend the
tax law, in relation to a higher education tuition tax credit (Part
TT); to amend the tax law, in relation to QEZE tax reduction credits
(Part UU); to amend the tax law, in relation to a tax exemption for
certain receipts relating to vessels (Part VV); to amend the tax law,
in relation to the creation of the empire state music production cred-
it (Part WW); to amend the tax law, in relation to the exemption of
libraries from the imposition of the metropolitan commuter transporta-
tion mobility tax (Part XX); to amend the tax law, in relation to
vendor fees at vendor tracks (Part YY); to amend the racing, pari-mu-
tuel wagering and breeding law, in relation to eligibility for the New
York Jockey Injury Compensation Fund, Inc. benefits (Part ZZ); and to
amend the tax law, in relation to the temporary exemption from sales
and use taxes for premises used for commercial office space in Lower
Manhattan; and to amend part C of chapter 2 of the laws of 2005 amend-
ing the tax law relating to exemptions from sales and use taxes, in
relation to the effectiveness thereof (Subpart A); to amend the gener-
al city law and the administrative code of the city of New York, in
relation to extending the relocation and employment assistance program
and the Lower Manhattan relocation and employment assistance program
(Subpart B); to amend the general city law and the administrative code
of the city of New York, in relation to extending the special rebates
and discounts provided pursuant to the energy cost savings program and
the Lower Manhattan energy program (Subpart C); and to amend the
administrative code of the city of New York, in relation to the amount
of special reduction allowed (Subpart D) (Part AAA)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2015-2016
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through AAA. The effective date for each partic-
ular provision contained within such Part is set forth in the last
section of such Part. Any provision in any section contained within a
Part, including the effective date of the Part, which makes a reference
to a section "of this act", when used in connection with that particular
component, shall be deemed to mean and refer to the corresponding
A. 6009 4
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.
PART A
Intentionally Omitted
PART B
Section 1. Subdivision 1 of section 54-f of the state finance law, as
amended by section 1 of part EE of chapter 57 of the laws of 2010, is
amended to read as follows:
1. Except as otherwise provided by law, the provisions of this section
shall be utilized by the state to calculate the annual amount due to be
paid to the city of New York by the state to reimburse such city for tax
receipts foregone (a) as a result of [a] chapter THREE HUNDRED
EIGHTY-NINE of the laws of nineteen hundred ninety-seven [that reduced
the rates of tax imposed pursuant to authority granted under section
thirteen hundred one of the tax law and that created a new "state school
tax reduction credit" against liabilities imposed pursuant to the
authority granted the city by such section and other statutes authoriz-
ing the imposition of a personal income tax on the residents of such
city], and (b) as a result of the tax rate adjustments made by [a] chap-
ter FIFTY-SEVEN of the laws of two thousand ten AND BY A CHAPTER OF THE
LAWS OF TWO THOUSAND FIFTEEN, which amended this subdivision.
S 2. Paragraphs 1, 2 and 3 of subsection (a) of section 1304 of the
tax law, as amended by section 2 of part EE of chapter 57 of the laws of
2010, are amended to read as follows:
(1) Resident married individuals filing joint returns and resident
surviving spouses. The tax under this section for each taxable year on
the city taxable income of every city resident married individual who
makes a single return jointly with his or her spouse under subsection
(b) of section thirteen hundred six of this article and on the city
taxable income of every city resident surviving spouse shall be deter-
mined in accordance with the following tables:
(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $21,600 2.55% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT $551 PLUS 3.1% OF EXCESS
OVER $45,000 OVER $21,600
OVER $45,000 BUT NOT $1,276 PLUS 3.15% OF EXCESS
OVER $90,000 OVER $45,000
OVER $90,000 BUT NOT $2,694 PLUS 3.2% OF EXCESS
OVER $500,000 OVER $90,000
OVER $500,000 $16,803 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
If the city taxable income is: The tax is:
Not over $21,600 2.55% of the city taxable income
Over $21,600 but not $551 plus 3.1% of excess
over $45,000 over $21,600
A. 6009 5
Over $45,000 but not $1,276 plus 3.15% of excess
over $90,000 over $45,000
Over $90,000 but not $2,694 plus 3.2% of excess
over $500,000 over $90,000
Over $500,000 $15,814 plus 3.4% of excess
over $500,000
[(B) For taxable years beginning in two thousand one and two thousand
two and for taxable years beginning after two thousand five and before
two thousand ten:
If the city taxable income is: The tax is:
Not over $21,600 2.55% of the city taxable income
Over $21,600 but not $551 plus 3.1% of excess
over $45,000 over $21,600
Over $45,000 but not $1,276 plus 3.15% of excess
over $90,000 over $45,000
Over $90,000 $2,694 plus 3.2% of excess
over $90,000]
(2) Resident heads of households. The tax under this section for each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $14,400 2.55% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT $367 PLUS 3.1% OF EXCESS
OVER $30,000 OVER $14,400
OVER $30,000 BUT NOT $851 PLUS 3.15% OF EXCESS
OVER $60,000 OVER $30,000
OVER $60,000 BUT NOT $1,796 PLUS 3.2% OF EXCESS
OVER $500,000 OVER $60,000
OVER $500,000 $16,869 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
If the city taxable income is: The tax is:
Not over $14,400 2.55% of the city taxable income
Over $14,400 but not $367 plus 3.1% of excess
over $30,000 over $14,400
Over $30,000 but not $851 plus 3.15% of excess
over $60,000 over $30,000
Over $60,000 but not $1,796 plus 3.2% of excess
over $500,000 over $60,000
Over $500,000 $15,876 plus 3.4% of excess
Over $500,000
[(B) For taxable years beginning in two thousand one and two thousand
two and for taxable years beginning after two thousand five and before
two thousand ten:
If the city taxable income is: The tax is:
Not over $14,400 2.55% of the city taxable income
A. 6009 6
Over $14,400 but not $367 plus 3.1% of excess
over $30,000 over $14,400
Over $30,000 but not $851 plus 3.15% of excess
over $60,000 over $30,000
Over $60,000 $1,796 plus 3.2% of excess
over $60,000]
(3) Resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts. The tax under
this section for each taxable year on the city taxable income of every
city resident individual who is not a city resident married individual
who makes a single return jointly with his or her spouse under
subsection (b) of section thirteen hundred six of this article or a city
resident head of household or a city resident surviving spouse, and on
the city taxable income of every city resident estate and trust shall be
determined in accordance with the following tables:
(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,000 2.55% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT $306 PLUS 3.1% OF EXCESS
OVER $25,000 OVER $12,000
OVER $25,000 BUT NOT $709 PLUS 3.15% OF EXCESS
OVER $50,000 OVER $25,000
OVER $50,000 BUT NOT $1,497 PLUS 3.2% OF EXCESS
OVER $500,000 OVER $50,000
OVER $500,000 $16,891 PLUS 3.4%
OF EXCESS OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
If the city taxable income is: The tax is:
Not over $12,000 2.55% of the city taxable income
Over $12,000 but not $306 plus 3.1% of excess
over $25,000 over $12,000
Over $25,000 but not $709 plus 3.15% of excess
over $50,000 over $25,000
Over $50,000 but not $1,497 plus 3.2% of excess
over $500,000 over $50,000
Over $500,000 $15,897 plus 3.4%
of excess over $500,000
[(B) For taxable years beginning in two thousand one and two thousand
two and for taxable years beginning after two thousand five and before
two thousand ten:
If the city taxable income is: The tax is:
Not over $12,000 2.55% of the city taxable income
Over $12,000 but not $306 plus 3.1% of excess
over $25,000 over $12,000
Over $25,000 but not $709 plus 3.15% of excess
over $50,000 over $25,000
Over $50,000 $1,497 plus 3.2% of excess
over $50,000]
A. 6009 7
S 3. Paragraphs 1, 2 and 3 of subdivision (a) of section 11-1701 of
the administrative code of the city of New York, as amended by section 3
of part EE of chapter 57 of the laws of 2010, are amended to read as
follows:
(1) Resident married individuals filing joint returns and resident
surviving spouses. The tax under this section for each taxable year on
the city taxable income of every city resident married individual who
makes a single return jointly with his or her spouse under subdivision
(b) of section 11-1751 of this chapter and on the city taxable income of
every city resident surviving spouse shall be determined in accordance
with the following tables:
(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $21,600 2.55% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT $551 PLUS 3.1% OF EXCESS
OVER $45,000 OVER $21,600
OVER $45,000 BUT NOT $1,276 PLUS 3.15% OF EXCESS
OVER $90,000 OVER $45,000
OVER $90,000 BUT NOT $2,694 PLUS 3.2% OF EXCESS
OVER $500,000 OVER $90,000
OVER $500,000 $16,803 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
If the city taxable income is: The tax is:
Not over $21,600 2.55% of the city taxable income
Over $21,600 but not $551 plus 3.1% of excess
over $45,000 over $21,600
Over $45,000 but not $1,276 plus 3.15% of excess
over $90,000 over $45,000
Over $90,000 but not $2,694 plus 3.2% of excess
over $500,000 over $90,000
Over $500,000 $15,814 plus 3.4% of excess
over $500,000
[(B) For taxable years beginning in two thousand one and two thousand
two and for taxable years beginning after two thousand five and before
two thousand ten:
If the city taxable income is: The tax is:
Not over $21,600 2.55% of the city taxable income
Over $21,600 but not $551 plus 3.1% of excess
over $45,000 over $21,600
Over $45,000 but not $1,276 plus 3.15% of excess
over $90,000 over $45,000
Over $90,000 $2,694 plus 3.2% of excess
over $90,000]
(2) Resident heads of households. The tax under this section for each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN:
A. 6009 8
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $14,400 2.55% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT $367 PLUS 3.1% OF EXCESS
OVER $30,000 OVER $14,400
OVER $30,000 BUT NOT $851 PLUS 3.15% OF EXCESS
OVER $60,000 OVER $30,000
OVER $60,000 BUT NOT $1,796 PLUS 3.2% OF EXCESS
OVER $500,000 OVER $60,000
OVER $500,000 $16,869 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
If the city taxable income is: The tax is:
Not over $14,400 2.55% of the city taxable income
Over $14,400 but not $367 plus 3.1% of excess
over $30,000 over $14,400
Over $30,000 but not $851 plus 3.15% of excess
over $60,000 over $30,000
Over $60,000 but not $1,796 plus 3.2% of excess
over $500,000 over $60,000
Over $500,000 $15,876 plus 3.4% of excess
over $500,000
[(B) For taxable years beginning in two thousand one and two thousand
two and for taxable years beginning after two thousand five and before
two thousand ten:
If the city taxable income is: The tax is:
Not over $14,400 2.55% of the city taxable income
Over $14,400 but not $367 plus 3.1% of excess
over $30,000 over $14,400
Over $30,000 but not $851 plus 3.15% of excess
over $60,000 over $30,000
Over $60,000 $1,796
plus 3.2% of excess
over $60,000]
(3) Resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts. The tax under
this section for each taxable year on the city taxable income of every
city resident individual who is not a married individual who makes a
single return jointly with his or her spouse under subdivision (b) of
section 11-1751 of this chapter or a city resident head of a household
or a city resident surviving spouse, and on the city taxable income of
every city resident estate and trust shall be determined in accordance
with the following tables:
(A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN:
IF THE CITY TAXABLE INCOME IS: THE TAX IS:
NOT OVER $12,000 2.55% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT $306 PLUS 3.1% OF EXCESS
OVER $25,000 OVER $12,000
OVER $25,000 BUT NOT $709 PLUS 3.15% OF EXCESS
A. 6009 9
OVER $50,000 OVER $25,000
OVER $50,000 BUT NOT $1,497 PLUS 3.2% OF EXCESS
OVER $500,000 OVER $50,000
OVER $500,000 $16,891 PLUS 3.4% OF EXCESS
OVER $500,000
(B) For taxable years beginning after two thousand nine AND BEFORE TWO
THOUSAND FIFTEEN:
If the city taxable income is: The tax is:
Not over $12,000 2.55% of the city taxable income
Over $12,000 but not $306 plus 3.1% of excess
over $25,000 over $12,000
Over $25,000 but not $709 plus 3.15% of excess
over $50,000 over $25,000
Over $50,000 but not $1,497 plus 3.2% of excess
over $500,000 over $50,000
Over $500,000 $15,897 plus 3.4% of excess
over $500,000
[(B) For taxable years beginning in two thousand one and two thousand
two and for taxable years beginning after two thousand five and before
two thousand ten:
If the city taxable income is: The tax is:
Not over $12,000 2.55% of the city taxable income
Over $12,000 but not $306 plus 3.1% of excess
over $25,000 over $12,000
Over $25,000 but not $709 plus 3.15% of excess
over $50,000 over $25,000
Over $50,000 $1,497 plus 3.2% of excess
over $50,000]
S 4. Notwithstanding any provision of law to the contrary, the method
of determining the amount to be deducted and withheld from wages on
account of taxes imposed by or pursuant to the authority of article 30
of the tax law in connection with the implementation of the provisions
of this act shall be prescribed by regulations of the commissioner of
taxation and finance with due consideration to the effect such withhold-
ing tables and methods would have on the receipt and amount of revenue.
The commissioner of taxation and finance shall adjust such withholding
tables and methods in regard to taxable years beginning in 2015 and
after in such manner as to result, so far as practicable, in withholding
from an employee's wages an amount substantially equivalent to the tax
reasonably estimated to be due for such taxable years as a result of the
provisions of this act. Provided, however, for tax year 2015 the with-
holding tables shall reflect as accurately as practicable the full
amount of tax year 2015 liability so that such amount is withheld by
December 31, 2015. Any such regulations to implement a change in with-
holding tables and methods for tax year 2015 shall be adopted and effec-
tive as soon as practicable and the commissioner may adopt such regu-
lations on an emergency basis notwithstanding anything to the contrary
in section 202 of the state administrative procedure act. In carrying
out his or her duties and responsibilities under this section, the
commissioner of taxation and finance may accompany such a rule making
procedure with a similar procedure with respect to the taxes required to
be deducted and withheld by local laws imposing taxes pursuant to the
A. 6009 10
authority of articles 30, 30-A and 30-B of the tax law, the provisions
of any other law in relation to such a procedure to the contrary
notwithstanding.
S 5. 1. Notwithstanding any provision of law to the contrary, no addi-
tion to tax shall be imposed for failure to pay the estimated tax in
subsection (c) of section 685 of the tax law and subdivision (c) of
section 11-1785 of the administrative code of the city of New York with
respect to any underpayment of a required installment due prior to, or
within thirty days of, the effective date of this act to the extent that
such underpayment was created or increased by the amendments made by
this act, provided, however, that the taxpayer remits the amount of any
underpayment prior to or with his or her next quarterly estimated tax
payment.
2. The commissioner of taxation and finance shall take steps to publi-
cize the necessary adjustments to estimated tax and, to the extent
reasonably possible, to inform the taxpayer of the tax liability changes
made by this act.
S 6. This act shall take effect immediately.
PART C
Section 1. The opening paragraph of paragraph (f) of subdivision 3 of
section 425 of the real property tax law, as added by section 1 of part
B of chapter 59 of the laws of 2012, is amended to read as follows:
Compliance with state tax obligations. [The] A PROPERTY SHALL NOT BE
ELIGIBLE [property's eligibility] for the STAR exemption [must not be]
IF THE PROPERTY'S ELIGIBILITY HAS BEEN suspended pursuant to section one
hundred seventy-one-y of the tax law due to the past-due state tax
liabilities of one or more of its owners. Notwithstanding any provision
of law to the contrary, where a property's eligibility for a STAR
exemption has been suspended pursuant to such section, the following
provisions shall be applicable:
S 2. Intentionally omitted.
S 3. Section 3 of part B of chapter 59 of the laws of 2012, amending
the real property tax law and the tax law relating to suspension of STAR
exemptions of property owned by persons with outstanding tax liabil-
ities, is amended to read as follows:
S 3. This act shall take effect immediately [and shall apply to the
administration of the STAR exemption authorized by section 425 of the
real property tax law for the 2013-2014, 2014-2015 and 2015-2016 school
years].
S 4. This act shall take effect immediately.
PART D
Intentionally omitted
PART E
Section 1. Section 425 of the real property tax law is amended by
adding a new subdivision 15 to read as follows:
15. RECOUPMENT OF EXEMPTIONS BY COMMISSIONER. (A) GENERALLY. IF THE
COMMISSIONER SHOULD DETERMINE, BASED UPON DATA COLLECTED UNDER THE STAR
REGISTRATION PROGRAM, THAT PROPERTY IMPROPERLY RECEIVED THE BASIC STAR
EXEMPTION ON ONE OR MORE OF THE SIX PRECEDING ASSESSMENT ROLLS, THE
COMMISSIONER SHALL TREAT THE EXEMPTION AS AN IMPROPERLY GRANTED
A. 6009 11
EXEMPTION AND PROCEED IN THE MANNER PROVIDED BY THIS SUBDIVISION;
PROVIDED THAT FINAL ASSESSMENT ROLLS THAT WERE FILED PRIOR TO APRIL
FIRST, TWO THOUSAND ELEVEN SHALL NOT BE SUBJECT TO THE PROVISIONS OF
THIS SUBDIVISION.
(B) PROCEDURE. THE TAX SAVINGS ATTRIBUTABLE TO EACH SUCH IMPROPERLY
GRANTED EXEMPTION SHALL BE COLLECTED FROM THE OWNERS WHOSE PROPERTY
IMPROPERLY RECEIVED THE EXEMPTION FOR THE APPLICABLE YEAR WITH INTEREST
AS SPECIFIED IN THIS SUBDIVISION, BY UTILIZING ANY OF THE PROCEDURES FOR
COLLECTION, LEVY, AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE
TWENTY-TWO OF THE TAX LAW, ANY OTHER RELEVANT PROCEDURES REFERENCED
WITHIN THE PROVISIONS OF THAT ARTICLE, AND ANY OTHER LAW AS MAY BE
APPLICABLE, SO FAR AS PRACTICABLE WHEN RECOUPING THE EXEMPTION AMOUNT
PURSUANT TO THIS SUBDIVISION, EXCEPT THAT:
(I) PRIOR TO DIRECTING THAT AN IMPROPERLY GRANTED EXEMPTION BE
RECOUPED PURSUANT TO THIS SUBDIVISION, THE COMMISSIONER SHALL PROVIDE
THE OWNERS WITH NOTICE AND AN OPPORTUNITY TO SHOW THE COMMISSIONER THAT
THE EXEMPTION WAS PROPERLY GRANTED. IF THE OWNERS FAIL TO RESPOND TO
SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF, OR IF THEIR
RESPONSE DOES NOT SHOW TO THE COMMISSIONER'S SATISFACTION THAT THE
ELIGIBILITY REQUIREMENTS WERE IN FACT SATISFIED, THE COMMISSIONER SHALL
PROCEED WITH THE RECOUPMENT OF THE IMPROPERLY GRANTED EXEMPTION IN
ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION; AND
(II) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION
SIX OF THIS SECTION, NEITHER AN ASSESSOR NOR A BOARD OF ASSESSMENT
REVIEW HAS THE AUTHORITY TO CONSIDER AN OBJECTION TO THE RECOUPMENT OF
AN EXEMPTION PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE
REVIEWED IN A PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO TITLE ONE
OR ONE-A OF ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION MAY ONLY BE
CHALLENGED BEFORE THE DEPARTMENT. IF AN OWNER IS DISSATISFIED WITH THE
DEPARTMENT'S FINAL DETERMINATION, THE OWNER MAY APPEAL THAT DETERMI-
NATION TO THE BOARD IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMIS-
SIONER. SUCH APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE ISSU-
ANCE OF THE DEPARTMENT'S FINAL DETERMINATION. IF DISSATISFIED WITH THE
BOARD'S DETERMINATION, THE OWNER MAY SEEK JUDICIAL REVIEW THEREOF PURSU-
ANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE
OWNER SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMI-
NATION IN A COURT ACTION, ADMINISTRATIVE PROCEEDING, INCLUDING BUT NOT
LIMITED TO AN ADMINISTRATIVE PROCEEDING PURSUANT TO ARTICLE FORTY OF THE
TAX LAW, OR ANY OTHER FORM OF LEGAL RECOURSE AGAINST THE COMMISSIONER,
THE DEPARTMENT, THE BOARD, THE ASSESSOR, OR ANY OTHER PERSON, STATE
AGENCY, OR LOCAL GOVERNMENT.
(C) THE AMOUNT TO BE RECOUPED FOR EACH IMPROPERLY RECEIVED EXEMPTION
SHALL HAVE INTEREST ADDED AT THE RATE PRESCRIBED BY SECTION NINE HUNDRED
TWENTY-FOUR-A OF THIS CHAPTER OR SUCH OTHER LAW AS MAY BE APPLICABLE FOR
EACH MONTH OR PORTION THEREOF SINCE THE LEVY OF SCHOOL TAXES UPON SUCH
ASSESSMENT ROLL.
(D) IN THE EVENT THAT A REVOCATION OF PRIOR EXEMPTION PURSUANT TO
SUBDIVISION TWELVE OF THIS SECTION OR A VOLUNTARY RENUNCIATION OF THE
STAR EXEMPTION PURSUANT TO SECTION FOUR HUNDRED NINETY-SIX OF THIS CHAP-
TER HAS OCCURRED, THE PROVISIONS OF THIS SUBDIVISION SHALL NOT BE APPLI-
CABLE TO THE EXEMPTIONS SO REVOKED OR VOLUNTARILY RENOUNCED.
S 2. This act shall take effect immediately.
PART F
A. 6009 12
Section 1. Subdivision 3 of section 97-rrr of the state finance law,
as amended by section 8 of part F of chapter 109 of the laws of 2006, is
amended to read as follows:
3. The monies in such fund shall be appropriated for school property
tax exemptions [and local property tax rebates] granted pursuant to the
real property tax law [and the tax law] and payable pursuant to section
[thirty-six hundred nine] THIRTY-SIX HUNDRED NINE-E of the education
law, AND for payments to the city of New York pursuant to section
fifty-four-f of this chapter[, and pursuant to section one hundred
seventy-eight of the tax law].
S 2. One-time relief for unenrolled registrants. (1) As used in this
section, the term "unenrolled registrant" means a person who purchased
or otherwise acquired a primary residence after the taxable status date
for the 2013 assessment roll and who registered that property with the
commissioner of taxation and finance in accordance with subdivision 14
of section 425 of the real property tax law on or before the taxable
status date for the 2014 assessment roll, but who failed to file an
application for the STAR exemption for that property in accordance with
subdivision 6 of section 425 of the real property tax law on or before
the taxable status date for the 2014 assessment roll.
(2) If the commissioner of taxation and finance is informed on or
before October 1, 2015, that an owner of property is an unenrolled
registrant, and if such commissioner finds that the unenrolled regis-
trant's property would have qualified for the STAR exemption authorized
by section 425 of the real property tax law on the 2014 assessment roll
if a completed application had been filed with the appropriate assessor
in a timely manner, then the commissioner of taxation and finance is
authorized to remit directly to the property owner or owners the tax
savings that the STAR exemption would have yielded if the STAR exemption
had been granted on the 2014 assessment roll. When remitting such
amount, the commissioner of taxation and finance shall advise the prop-
erty owner or owners that such payment is subject to recovery by such
commissioner if the property owner or owners do not apply for and quali-
fy for the STAR exemption on the 2015 assessment roll, or if it should
otherwise be found to have been erroneously remitted to such property
owner or owners.
(3) The amounts payable under this act shall be paid from the account
established for the payment of STAR benefits to late registrants pursu-
ant to subparagraph (iii) of paragraph (a) of subdivision 14 of section
425 of the real property tax law.
(4) The provisions of part 6 of article 22 of the tax law relating to
the collection of a tax imposed by such article that has been assessed
and remains unpaid shall apply to the recovery authorized by subdivision
two of this section of a payment found to have been erroneously made
pursuant to this act to an ineligible property owner or owners in the
same manner and with the same force and effect as if the language of
such article had been incorporated in full into this act except to the
extent that any provision of such article is either inconsistent with a
provision of this act or is not relevant to this act as determined by
the commissioner of taxation and finance. Furthermore, for purposes of
applying the provisions of part 6 of article 22 of the tax law, where
the terms "tax" and "taxes" appear in such article, such terms shall be
construed to mean "a payment or payments erroneously made pursuant to
this act to an ineligible property owner or owners".
S 3. This act shall take effect immediately.
A. 6009 13
PART G
Section 1. Section 606 of the tax law is amended by adding a new
subsection (e-3) to read as follows:
(E-3) REAL PROPERTY TAX RELIEF CREDIT. (1) FOR PURPOSES OF THIS
SUBSECTION:
(A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
HAS OCCUPIED THE SAME RESIDENCE FOR SIX MONTHS OR MORE OF THE TAXABLE
YEAR AS HIS OR HER PRIMARY RESIDENCE, AND IS REQUIRED OR CHOOSES TO FILE
A RETURN UNDER THIS ARTICLE.
(B) "QUALIFIED GROSS INCOME" MEANS THE ADJUSTED GROSS INCOME OF THE
QUALIFIED TAXPAYER FOR THE TAXABLE YEAR AS REPORTED FOR FEDERAL INCOME
TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED GROSS INCOME IF A
FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED. IN COMPUTING QUALI-
FIED GROSS INCOME, THE NET AMOUNT OF LOSS REPORTED ON FEDERAL SCHEDULE
C, D, E, OR F SHALL NOT EXCEED THREE THOUSAND DOLLARS PER SCHEDULE. IN
ADDITION, THE NET AMOUNT OF ANY OTHER SEPARATE CATEGORY OF LOSS SHALL
NOT EXCEED THREE THOUSAND DOLLARS. THE AGGREGATE AMOUNT OF ALL LOSSES
INCLUDED IN COMPUTING QUALIFIED GROSS INCOME SHALL NOT EXCEED FIFTEEN
THOUSAND DOLLARS.
(C) "RESIDENCE" MEANS A DWELLING IN THIS STATE OWNED OR RENTED BY THE
TAXPAYER AND USED BY THE TAXPAYER AS HIS OR HER PRIMARY RESIDENCE, AND
SO MUCH OF THE LAND ABUTTING IT, NOT EXCEEDING ONE ACRE, AS IS REASON-
ABLY NECESSARY FOR USE OF THE DWELLING AS A HOME, AND MAY CONSIST OF A
PART OF A MULTI-DWELLING OR MULTI-PURPOSE BUILDING INCLUDING A COOPER-
ATIVE OR CONDOMINIUM, AND RENTAL UNITS WITHIN A SINGLE DWELLING. RESI-
DENCE INCLUDES A TRAILER OR MOBILE HOME, USED EXCLUSIVELY FOR RESIDEN-
TIAL PURPOSES AND DEFINED AS REAL PROPERTY PURSUANT TO PARAGRAPH (G) OF
SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THE REAL PROPERTY TAX
LAW.
(D) "QUALIFYING REAL PROPERTY TAXES" MEANS ALL REAL PROPERTY TAXES,
SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE OF PENAL-
TIES AND INTEREST, LEVIED BY A TAXING JURISDICTION ON THE RESIDENCE
OWNED AND OCCUPIED BY A QUALIFIED TAXPAYER AND PAID BY THE QUALIFIED
TAXPAYER DURING THE TAXABLE YEAR, PROVIDED THAT TO THE EXTENT THE TOTAL
AMOUNT OF REAL PROPERTY TAXES SO PAID INCLUDES SCHOOL DISTRICT TAXES,
THE AMOUNT OF THE SCHOOL TAX RELIEF (STAR) CREDIT CLAIMED PURSUANT TO
SUBSECTION (CCC) OF THIS SECTION, IF ANY, SHALL BE DEDUCTED FROM SUCH
AMOUNT.
(I) FOR TAX YEAR TWO THOUSAND FIFTEEN: (A) ONLY REAL PROPERTY TAXES
LEVIED BY SCHOOL DISTRICTS SHALL CONSTITUTE QUALIFYING REAL PROPERTY
TAXES; AND (B) FOR PROPERTY OWNERS WITH A QUALIFYING RESIDENCE LOCATED
IN A CITY CONTAINING A SCHOOL DISTRICT WHICH IS SUBJECT TO ARTICLE
FIFTY-TWO OF THE EDUCATION LAW TO ACCOUNT FOR THE FACT THAT THE SCHOOL
DISTRICT IS FISCALLY DEPENDENT UPON THE CITY, REAL PROPERTY TAXES LEVIED
BY SUCH SCHOOL DISTRICTS SHALL BE DETERMINED BY MULTIPLYING TOTAL REAL
PROPERTY TAXES LEVIED BY A TAXING JURISDICTION AND PAID DURING THE TAXA-
BLE YEAR BY SIXTY-SEVEN PERCENT, OR, IN A CITY WITH A POPULATION OF ONE
MILLION OR MORE, BY FIFTY PERCENT.
(II) HOWEVER, REAL PROPERTY TAXES, SPECIAL AD VALOREM LEVIES, AND
SPECIAL ASSESSMENTS LEVIED BY A CITY WITH A POPULATION OF ONE MILLION OR
MORE SHALL CONSTITUTE QUALIFYING REAL PROPERTY TAXES ONLY IF TAXES
LEVIED IN THE STATE OUTSIDE SUCH CITY ARE REQUIRED FOR PURPOSES OF THIS
CREDIT TO BE LEVIED BY TAXING JURISDICTIONS.
A QUALIFIED TAXPAYER MAY ELECT TO INCLUDE ANY ADDITIONAL AMOUNT THAT
WOULD HAVE BEEN LEVIED BY A TAXING JURISDICTION AND PAID BY THE QUALI-
A. 6009 14
FIED TAXPAYER IN THE ABSENCE OF AN EXEMPTION FROM REAL PROPERTY TAXATION
PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN OF THE REAL PROPERTY TAX
LAW. IF TENANT-STOCKHOLDERS IN A COOPERATIVE HOUSING CORPORATION HAVE
MET THE REQUIREMENTS OF SECTION TWO HUNDRED SIXTEEN OF THE INTERNAL
REVENUE CODE BY WHICH THEY ARE ALLOWED A DEDUCTION FOR REAL ESTATE
TAXES, THE AMOUNT OF TAXES SO ALLOWABLE, OR WHICH WOULD BE ALLOWABLE IF
THE TAXPAYER HAD FILED RETURNS ON A CASH BASIS, SHALL BE QUALIFYING REAL
PROPERTY TAXES. IF A RESIDENCE IS AN INTEGRAL PART OF A LARGER UNIT,
QUALIFYING REAL PROPERTY TAXES SHALL BE LIMITED TO THAT AMOUNT OF SUCH
TAXES PAID AS MAY BE REASONABLY APPORTIONED TO SUCH RESIDENCE. IF A
TAXPAYER OWNS AND OCCUPIES TWO RESIDENCES DURING DIFFERENT PERIODS IN
THE SAME TAXABLE YEAR, QUALIFYING REAL PROPERTY TAXES SHALL BE THE SUM
OF THE PRORATED QUALIFYING REAL PROPERTY TAXES ATTRIBUTABLE TO THE
TAXPAYER DURING THE PERIODS SUCH TAXPAYER OCCUPIES EACH OF SUCH RESI-
DENCES. IF THE TAXPAYER OWNS AND OCCUPIES A RESIDENCE FOR PART OF THE
TAXABLE YEAR AND RENTS A RESIDENCE FOR PART OF THE SAME TAXABLE YEAR, IT
MAY INCLUDE THE PRORATION OF QUALIFYING REAL PROPERTY TAXES ON THE RESI-
DENCE OWNED. PROVIDED, HOWEVER, FOR PURPOSES OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION, QUALIFYING REAL PROPERTY TAXES MAY BE INCLUDED BY A
QUALIFIED TAXPAYER ONLY TO THE EXTENT THAT SUCH TAXPAYER OR THE SPOUSE
OF SUCH TAXPAYER, OCCUPYING SUCH RESIDENCE FOR ONE HUNDRED EIGHTY-THREE
DAYS OR MORE OF THE TAXABLE YEAR, OWNS OR HAS OWNED THE RESIDENCE AND
PAID SUCH TAXES.
(E) "REAL PROPERTY TAX EQUIVALENT" MEANS THIRTEEN AND THREE-QUARTERS
PERCENT OF THE ADJUSTED RENT ACTUALLY PAID IN THE TAXABLE YEAR BY A
TAXPAYER SOLELY FOR THE RIGHT OF OCCUPANCY OF ITS NEW YORK RESIDENCE FOR
THE TAXABLE YEAR. IF A RESIDENCE IS RENTED TO TWO OR MORE INDIVIDUALS AS
COTENANTS, OR SUCH INDIVIDUALS SHARE IN THE PAYMENT OF A SINGLE RENT FOR
THE RIGHT OF OCCUPANCY OF SUCH RESIDENCE, ONE OR MORE OF WHICH INDIVID-
UALS SHARES SUCH RESIDENCE, REAL PROPERTY TAX EQUIVALENT IS THAT PORTION
OF THIRTEEN AND THREE-QUARTERS PERCENT OF THE ADJUSTED RENT PAID IN THE
TAXABLE YEAR THAT REFLECTS THAT PORTION OF THE RENT ATTRIBUTABLE TO THE
QUALIFIED TAXPAYER. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND FIFTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, THE REAL PROPERTY TAX EQUIVALENT SHALL BE EQUAL TO SIXTY-SIX
PERCENT OF THE REAL PROPERTY TAX EQUIVALENT AS OTHERWISE DEFINED IN THIS
PARAGRAPH.
(F) "ADJUSTED RENT" MEANS RENTAL PAID FOR THE RIGHT OF OCCUPANCY OF A
RESIDENCE, EXCLUDING CHARGES FOR HEAT, GAS, ELECTRICITY, FURNISHINGS AND
BOARD. WHERE CHARGES FOR HEAT, GAS, ELECTRICITY, FURNISHINGS OR BOARD
ARE INCLUDED IN RENTAL BUT WHERE SUCH CHARGES AND THE AMOUNT THEREOF ARE
NOT SEPARATELY SET FORTH IN A WRITTEN RENTAL AGREEMENT, FOR PURPOSES OF
DETERMINING ADJUSTED RENT THE QUALIFIED TAXPAYER SHALL REDUCE RENTAL
PAID AS FOLLOWS:
(I) FOR HEAT, OR HEAT AND GAS, DEDUCT SIX PERCENT OF RENTAL PAID.
(II) FOR HEAT, GAS AND ELECTRICITY, DEDUCT EIGHT PERCENT OF RENTAL
PAID.
(III) FOR HEAT, GAS, ELECTRICITY AND FURNISHINGS, DEDUCT TEN PERCENT
OF RENTAL PAID.
(IV) FOR HEAT, GAS, ELECTRICITY, FURNISHINGS AND BOARD, DEDUCT TWENTY
PERCENT OF RENTAL PAID.
(G) "EXCESS REAL PROPERTY TAX" MEANS THE EXCESS OF QUALIFYING REAL
PROPERTY TAXES OR THE EXCESS OF REAL PROPERTY TAX EQUIVALENT OVER THE
FOLLOWING PERCENTAGE OF QUALIFIED GROSS INCOME:
FOR THE YEARS BEGINNING IN: PERCENTAGE:
2015 3.75%
A. 6009 15
2016 AND AFTER 6.0%
(2) A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN
PARAGRAPH THREE OF THIS SUBSECTION AGAINST THE TAXES IMPOSED BY THIS
ARTICLE. IF THE CREDIT EXCEEDS THE TAX FOR SUCH YEAR UNDER THIS ARTICLE,
THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR
REFUNDED, WITHOUT INTEREST. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO
FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE,
A QUALIFIED TAXPAYER MAY NEVERTHELESS RECEIVE THE FULL AMOUNT OF THE
CREDIT TO BE CREDITED OR REPAID AS AN OVERPAYMENT, WITHOUT INTEREST.
(3) DETERMINATION OF CREDIT. (A) FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN AND BEFORE JANUARY FIRST, TWO
THOUSAND SIXTEEN, THE CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL
EQUAL THE APPLICABLE PERCENTAGE OF THE EXCESS REAL PROPERTY TAX, CALCU-
LATED AS FOLLOWS:
(I) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS
SEVENTY-FIVE THOUSAND DOLLARS OR LESS, THE APPLICABLE PERCENTAGE SHALL
BE FOURTEEN PERCENT.
(II) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED
FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE DIFFER-
ENCE BETWEEN (A) FOURTEEN PERCENT AND (B) FIVE PERCENT MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED
TAXPAYER'S QUALIFIED GROSS INCOME AS DEFINED BY THIS SUBSECTION AND
SEVENTY-FIVE THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS SEVENTY-
FIVE THOUSAND DOLLARS.
(III) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE
DIFFERENCE BETWEEN (A) NINE PERCENT AND (B) SIX PERCENT MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED
TAXPAYER'S QUALIFIED GROSS INCOME AND ONE HUNDRED FIFTY THOUSAND
DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE HUNDRED THOUSAND DOLLARS.
(B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SIXTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, THE CRED-
IT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL EQUAL THE APPLICABLE
PERCENTAGE OF THE EXCESS REAL PROPERTY TAX, CALCULATED AS FOLLOWS:
(I) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME EQUALS SEVEN-
TY-FIVE THOUSAND DOLLARS OR LESS, THE APPLICABLE PERCENTAGE SHALL BE
TWENTY-THREE PERCENT.
(II) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED
FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE DIFFER-
ENCE BETWEEN (A) TWENTY-THREE PERCENT AND (B) TEN PERCENT MULTIPLIED BY
A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALI-
FIED TAXPAYER'S QUALIFIED GROSS INCOME AND SEVENTY-FIVE THOUSAND
DOLLARS, AND THE DENOMINATOR OF WHICH IS SEVENTY-FIVE THOUSAND DOLLARS.
(III) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE
DIFFERENCE BETWEEN (A) THIRTEEN PERCENT AND (B) SIX PERCENT MULTIPLIED
BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE
QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND ONE HUNDRED FIFTY THOU-
SAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE HUNDRED THOUSAND
DOLLARS.
(C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE
A. 6009 16
CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL EQUAL THE APPLICABLE
PERCENTAGE OF THE EXCESS REAL PROPERTY TAX, CALCULATED AS FOLLOWS:
(I) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS
SEVENTY-FIVE THOUSAND DOLLARS OR LESS, THE APPLICABLE PERCENTAGE SHALL
BE THIRTY-SIX PERCENT.
(II) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED
FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE DIFFER-
ENCE BETWEEN (A) THIRTY-SIX PERCENT AND (B) NINE PERCENT MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED
TAXPAYER'S QUALIFIED GROSS INCOME AND SEVENTY-FIVE THOUSAND DOLLARS, AND
THE DENOMINATOR OF WHICH IS SEVENTY-FIVE THOUSAND DOLLARS.
(III) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE
DIFFERENCE BETWEEN (A) TWENTY-SEVEN PERCENT AND (B) SEVENTEEN PERCENT
MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE
BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND ONE HUNDRED
FIFTY THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE HUNDRED
THOUSAND DOLLARS.
(D) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND EIGHTEEN, THE CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL
EQUAL THE APPLICABLE PERCENTAGE OF THE EXCESS REAL PROPERTY TAX, CALCU-
LATED AS FOLLOWS:
(I) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS
SEVENTY-FIVE THOUSAND DOLLARS OR LESS, THE APPLICABLE PERCENTAGE SHALL
BE FIFTY PERCENT.
(II) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED
FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE DIFFER-
ENCE BETWEEN (A) FIFTY PERCENT AND (B) TEN PERCENT MULTIPLIED BY A FRAC-
TION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED
TAXPAYER'S QUALIFIED GROSS INCOME AND SEVENTY-FIVE THOUSAND DOLLARS, AND
THE DENOMINATOR OF WHICH IS SEVENTY-FIVE THOUSAND DOLLARS.
(III) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE
DIFFERENCE BETWEEN (A) FORTY PERCENT AND (B) TWENTY-FIVE PERCENT MULTI-
PLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN
THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND ONE HUNDRED FIFTY
THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE HUNDRED THOUSAND
DOLLARS.
(4) MAXIMUM CREDIT FOR PROPERTY OWNERS. NOTWITHSTANDING THE PROVISIONS
OF PARAGRAPH THREE OF THIS SUBSECTION, THE MAXIMUM CREDIT DETERMINED
UNDER SUCH PARAGRAPH, AND THEREBY ALLOWED UNDER THIS SUBSECTION, SHALL
NOT EXCEED THE AMOUNT CALCULATED UNDER THIS PARAGRAPH, FOR EACH RESPEC-
TIVE YEAR AS INDICATED.
(A) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND FIFTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, THE MAXIMUM
CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL BE CALCULATED AS
FOLLOWS:
(I) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS
SEVENTY-FIVE THOUSAND DOLLARS OR LESS, THE MAXIMUM CREDIT ALLOWED SHALL
BE FIVE HUNDRED DOLLARS.
(II) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED
A. 6009 17
FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE DIFFER-
ENCE BETWEEN (A) FIVE HUNDRED DOLLARS AND (B) ONE HUNDRED FIFTY DOLLARS
MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE
BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND SEVENTY-FIVE
THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS SEVENTY-FIVE THOUSAND
DOLLARS.
(III) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE
DIFFERENCE BETWEEN (A) THREE HUNDRED FIFTY DOLLARS AND (B) ONE HUNDRED
FIFTY DOLLARS MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE
DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND
ONE HUNDRED FIFTY THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE
HUNDRED THOUSAND DOLLARS.
(B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SIXTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, THE MAXI-
MUM CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL BE CALCULATED AS
FOLLOWS:
(I) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS
SEVENTY-FIVE THOUSAND DOLLARS OR LESS, THE MAXIMUM CREDIT ALLOWED SHALL
BE ONE THOUSAND DOLLARS.
(II) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED
FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE DIFFER-
ENCE BETWEEN (A) ONE THOUSAND DOLLARS AND (B) TWO HUNDRED FIFTY DOLLARS
MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE
BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND SEVENTY-FIVE
THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS SEVENTY-FIVE THOUSAND
DOLLARS.
(III) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE
DIFFERENCE BETWEEN (A) SEVEN HUNDRED FIFTY DOLLARS AND (B) TWO HUNDRED
FIFTY DOLLARS MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE
DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND
ONE HUNDRED FIFTY THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE
HUNDRED THOUSAND DOLLARS.
(C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE
MAXIMUM CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL BE CALCULATED
AS FOLLOWS:
(I) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS
SEVENTY-FIVE THOUSAND DOLLARS OR LESS, THE MAXIMUM CREDIT ALLOWED SHALL
BE ONE THOUSAND SIX HUNDRED DOLLARS.
(II) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED
FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE DIFFER-
ENCE BETWEEN (A) ONE THOUSAND SIX HUNDRED DOLLARS AND (B) FOUR HUNDRED
DOLLARS MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFER-
ENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND SEVEN-
TY-FIVE THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS SEVENTY-FIVE
THOUSAND DOLLARS.
(III) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE
DIFFERENCE BETWEEN (A) ONE THOUSAND TWO HUNDRED DOLLARS AND (B) FOUR
A. 6009 18
HUNDRED DOLLARS MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE
DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND
ONE HUNDRED FIFTY THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE
HUNDRED THOUSAND DOLLARS.
(D) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND EIGHTEEN, THE MAXIMUM CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION
SHALL BE CALCULATED AS FOLLOWS:
(I) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME EQUALS SEVEN-
TY-FIVE THOUSAND DOLLARS OR LESS, THE MAXIMUM CREDIT ALLOWED SHALL BE
TWO THOUSAND DOLLARS.
(II) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED
FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE DIFFER-
ENCE BETWEEN (A) TWO THOUSAND DOLLARS AND (B) FIVE HUNDRED DOLLARS
MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE
BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND SEVENTY-FIVE
THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS SEVENTY-FIVE THOUSAND
DOLLARS.
(III) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER
THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO
HUNDRED FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE
DIFFERENCE BETWEEN (A) ONE THOUSAND FIVE HUNDRED DOLLARS AND (B) FIVE
HUNDRED DOLLARS MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE
DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND
ONE HUNDRED FIFTY THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE
HUNDRED THOUSAND DOLLARS.
(5) MAXIMUM CREDIT FOR TENANTS. NOTWITHSTANDING THE PROVISIONS OF
PARAGRAPH THREE OF THIS SUBSECTION, FOR A QUALIFIED TAXPAYER WHO PAID
RENT ON HIS OR HER QUALIFYING RESIDENCE THE MAXIMUM CREDIT DETERMINED
UNDER PARAGRAPH THREE OF THIS SUBSECTION, AND THEREBY ALLOWED UNDER THIS
SUBSECTION, SHALL NOT EXCEED THE AMOUNT CALCULATED UNDER THIS PARAGRAPH,
FOR EACH RESPECTIVE YEAR AS INDICATED.
(A) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND FIFTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN AND QUALIFY-
ING RESIDENCES LOCATED IN:
(I) THE CITY OF NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK, ROCK-
LAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS, THE MAXIMUM CREDIT
ALLOWED SHALL BE TWO HUNDRED DOLLARS;
(II) ALL OTHER COUNTIES IN THE STATE, THE MAXIMUM CREDIT ALLOWED SHALL
BE ONE HUNDRED FIFTY DOLLARS.
(B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SIXTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN AND QUALI-
FYING RESIDENCES LOCATED IN:
(I) THE CITY OF NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK, ROCK-
LAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS, THE MAXIMUM CREDIT
ALLOWED SHALL BE FIVE HUNDRED DOLLARS;
(II) ALL OTHER COUNTIES IN THE STATE, THE MAXIMUM CREDIT ALLOWED SHALL
BE THREE HUNDRED SEVENTY-FIVE DOLLARS.
(C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN AND QUAL-
IFYING RESIDENCES LOCATED IN:
(I) THE CITY OF NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK, ROCK-
LAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS, THE MAXIMUM CREDIT
ALLOWED SHALL BE SIX HUNDRED FIFTY DOLLARS;
(II) ALL OTHER COUNTIES IN THE STATE, THE MAXIMUM CREDIT ALLOWED SHALL
BE FOUR HUNDRED FIFTY DOLLARS.
A. 6009 19
(D) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND EIGHTEEN AND QUALIFYING RESIDENCES LOCATED IN:
(I) THE CITY OF NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK, ROCK-
LAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS, THE MAXIMUM CREDIT
ALLOWED SHALL BE SEVEN HUNDRED FIFTY DOLLARS;
(II) ALL OTHER COUNTIES IN THE STATE, THE MAXIMUM CREDIT SHALL BE FIVE
HUNDRED DOLLARS.
(6) IF A QUALIFIED TAXPAYER OCCUPIES A RESIDENCE FOR A PERIOD OF LESS
THAN TWELVE MONTHS DURING THE TAXABLE YEAR OR OCCUPIES TWO RESIDENCES
DURING DIFFERENT PERIODS IN SUCH TAXABLE YEAR, THE CREDIT ALLOWED PURSU-
ANT TO THIS SUBSECTION SHALL BE COMPUTED IN SUCH MANNER AS THE COMMIS-
SIONER MAY, BY REGULATION, PRESCRIBE IN ORDER TO PROPERLY REFLECT THE
CREDIT OR PORTION THEREOF ATTRIBUTABLE TO SUCH RESIDENCE OR RESIDENCES
AND SUCH PERIOD OR PERIODS.
(7) THE COMMISSIONER MAY PRESCRIBE THAT THE CREDIT UNDER THIS
SUBSECTION SHALL BE DETERMINED IN WHOLE OR IN PART BY THE USE OF TABLES
PRESCRIBED BY SUCH COMMISSIONER. SUCH TABLES SHALL SET FORTH THE CREDIT
TO THE NEAREST DOLLAR.
(8) NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION:
(A) TO A PROPERTY OWNER IF QUALIFIED GROSS INCOME FOR THE TAXABLE YEAR
EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS.
(B) TO A TENANT IF QUALIFIED GROSS INCOME FOR THE TAXABLE YEAR EXCEEDS
ONE HUNDRED FIFTY THOUSAND DOLLARS.
(C) TO A PROPERTY OWNER UNLESS: (I) THE PROPERTY IS USED FOR RESIDEN-
TIAL PURPOSES; (II) NOT MORE THAN TWENTY PERCENT OF THE RENTAL INCOME,
IF ANY, FROM THE PROPERTY IS FROM RENTAL FOR NONRESIDENTIAL PURPOSES;
AND (III) THE PROPERTY IS OCCUPIED AS A RESIDENCE IN WHOLE OR IN PART BY
ONE OR MORE OF THE OWNERS OF THE PROPERTY.
(D) TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION
(C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS
ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR.
(E) WITH RESPECT TO A RESIDENCE THAT IS WHOLLY EXEMPTED FROM REAL
PROPERTY TAXATION.
(F) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR
THE ENTIRE TAXABLE YEAR.
(9) THE RIGHT TO CLAIM A CREDIT OR THE PORTION OF A CREDIT, WHERE SUCH
CREDIT HAS BEEN DIVIDED UNDER THIS SUBSECTION, SHALL BE PERSONAL TO THE
QUALIFIED TAXPAYER AND SHALL NOT SURVIVE HIS OR HER DEATH, BUT SUCH
RIGHT MAY BE EXERCISED ON BEHALF OF A CLAIMANT BY HIS OR HER LEGAL GUAR-
DIAN OR ATTORNEY IN FACT DURING HIS OR HER LIFETIME.
(10) IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT
TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A CLAIM FOR A CREDIT
MAY BE TAKEN ON A RETURN FILED WITH THE COMMISSIONER WITHIN THREE YEARS
FROM THE TIME IT WOULD HAVE BEEN REQUIRED THAT A RETURN BE FILED PURSU-
ANT TO SUCH SECTION HAD THE QUALIFIED TAXPAYER HAD A TAXABLE YEAR ENDING
ON DECEMBER THIRTY-FIRST. RETURNS UNDER THIS PARAGRAPH SHALL BE IN SUCH
FORM AS SHALL BE PRESCRIBED BY THE COMMISSIONER, WHO SHALL MAKE AVAIL-
ABLE SUCH FORMS AND INSTRUCTIONS FOR FILING SUCH RETURNS.
(11) THE COMMISSIONER MAY REQUIRE A QUALIFIED TAXPAYER TO FURNISH THE
FOLLOWING INFORMATION IN SUPPORT OF HIS OR HER CLAIM FOR CREDIT UNDER
THIS SUBSECTION: QUALIFIED GROSS INCOME; REAL PROPERTY TAXES LEVIED OR
THAT WOULD HAVE BEEN LEVIED IN THE ABSENCE OF AN EXEMPTION FROM REAL
PROPERTY TAX PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN OF THE REAL
PROPERTY TAX LAW; AND ALL OTHER INFORMATION WHICH MAY BE REQUIRED BY THE
COMMISSIONER TO DETERMINE THE CREDIT.
A. 6009 20
(12) THE PROVISIONS OF THIS ARTICLE, INCLUDING THE PROVISIONS OF
SECTIONS SIX HUNDRED FIFTY-THREE, SIX HUNDRED FIFTY-EIGHT, AND SIX
HUNDRED FIFTY-NINE OF THIS ARTICLE AND THE PROVISIONS OF PART SIX OF
THIS ARTICLE RELATING TO PROCEDURE AND ADMINISTRATION, INCLUDING THE
JUDICIAL REVIEW OF THE DECISIONS OF THE COMMISSIONER, EXCEPT SO MUCH OF
SECTION SIX HUNDRED EIGHTY-SEVEN OF THIS ARTICLE WHICH PERMITS A CLAIM
FOR CREDIT OR REFUND TO BE FILED AFTER THE PERIOD PROVIDED FOR IN PARA-
GRAPH NINE OF THIS SUBSECTION AND EXCEPT SECTIONS SIX HUNDRED FIFTY-SEV-
EN, SIX HUNDRED EIGHTY-EIGHT AND SIX HUNDRED NINETY-SIX OF THIS ARTICLE,
SHALL APPLY TO THE PROVISIONS OF THIS SUBSECTION IN THE SAME MANNER AND
WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS
HAD BEEN INCORPORATED IN FULL INTO THIS SUBSECTION AND HAD EXPRESSLY
REFERRED TO THE CREDIT ALLOWED OR RETURNS FILED UNDER THIS SUBSECTION,
EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH
A PROVISION OF THIS SUBSECTION OR IS NOT RELEVANT TO THIS SUBSECTION. AS
USED IN SUCH SECTIONS AND SUCH PART, THE TERM "TAXPAYER" SHALL INCLUDE A
QUALIFIED TAXPAYER UNDER THIS SUBSECTION AND, NOTWITHSTANDING THE
PROVISIONS OF SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS
ARTICLE, WHERE A QUALIFIED TAXPAYER HAS PROTESTED THE DENIAL OF A CLAIM
FOR CREDIT UNDER THIS SUBSECTION AND THE TIME TO FILE A PETITION FOR
REDETERMINATION OF A DEFICIENCY OR FOR REFUND HAS NOT EXPIRED, HE OR SHE
SHALL, SUBJECT TO SUCH CONDITIONS AS MAY BE SET BY THE COMMISSIONER,
RECEIVE SUCH INFORMATION WHICH THE COMMISSIONER FINDS IS RELEVANT AND
MATERIAL TO THE ISSUE OF WHETHER SUCH CLAIM WAS PROPERLY DENIED.
(13) THE COMMISSIONER SHALL PREPARE ON AN ANNUAL BASIS A TAX CREDIT
REPORT FOR POSTING ON THE DEPARTMENT'S WEBSITE. THE FIRST REPORT WILL BE
DUE JUNE THIRTIETH, TWO THOUSAND SIXTEEN, AND EVERY TWELVE MONTHS THERE-
AFTER. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO THE NUMBER OF
CREDITS AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED; AND OF THOSE,
THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED TO
QUALIFIED TAXPAYERS IN EACH COUNTY; AND OF THOSE, THE NUMBER OF CREDITS
AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED TO QUALIFIED TAXPAYERS
WHOSE QUALIFIED GROSS INCOME FALLS WITHIN EACH OF THE QUALIFIED GROSS
INCOME RANGES SET FORTH IN THIS SUBSECTION.
(14) IN THE CASE OF A TAXPAYER WHO HAS ITEMIZED DEDUCTIONS FROM FEDER-
AL ADJUSTED GROSS INCOME, AND WHOSE FEDERAL ITEMIZED DEDUCTIONS INCLUDE
AN AMOUNT FOR REAL ESTATE TAXES PAID, THE NEW YORK ITEMIZED DEDUCTION
OTHERWISE ALLOWABLE UNDER SECTION SIX HUNDRED FIFTEEN OF THIS CHAPTER
SHALL BE REDUCED BY THE AMOUNT OF THE CREDIT CLAIMED UNDER THIS
SUBSECTION.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.
PART H
Section 1. Subsection (g) of section 615 of the tax law, as amended by
section 1 of part D of chapter 59 of the laws of 2013, is amended to
read as follows:
(g)(1) With respect to an individual whose New York adjusted gross
income is over one million dollars and no more than ten million dollars,
the New York itemized deduction shall be an amount equal to fifty
percent of any charitable contribution deduction allowed under section
one hundred seventy of the internal revenue code for taxable years
beginning after two thousand nine [and before two thousand sixteen].
With respect to an individual whose New York adjusted gross income is
over one million dollars, the New York itemized deduction shall be an
A. 6009 21
amount equal to fifty percent of any charitable contribution deduction
allowed under section one hundred seventy of the internal revenue code
for taxable years beginning in two thousand nine [or after two thousand
fifteen].
(2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount equal to twenty-five percent of any charitable contribution
deduction allowed under section one hundred seventy of the internal
revenue code for taxable years beginning after two thousand nine [and
ending before two thousand sixteen].
S 2. Subdivision (g) of section 11-1715 of the administrative code of
the city of New York, as added by section 2 of part D of chapter 59 of
the laws of 2013, is amended to read as follows:
(g) (1) With respect to an individual whose New York adjusted gross
income is over one million dollars but no more than ten million dollars,
the New York itemized deduction shall be an amount equal to fifty
percent of any charitable contribution deduction allowed under section
one hundred seventy of the internal revenue code for taxable years
beginning after two thousand nine [and before two thousand sixteen].
With respect to an individual whose New York adjusted gross income is
over one million dollars, the New York itemized deduction shall be an
amount equal to fifty percent of any charitable contribution deduction
allowed under section one hundred seventy of the internal revenue code
for taxable years beginning in two thousand nine [or after two thousand
fifteen].
(2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount equal to twenty-five percent of any charitable contribution
deduction allowed under section one hundred seventy of the internal
revenue code for taxable years beginning after two thousand nine [and
ending before two thousand sixteen].
S 3. This act shall take effect immediately.
PART I
Section 1. Paragraph 41 of subsection (c) of section 612 of the tax
law, as added by section 1 of part KK of chapter 59 of the laws of 2014,
is amended to read as follows:
(41) The amount of any award paid to a volunteer firefighter or volun-
teer ambulance worker from a length of service defined contribution plan
or defined benefit plan as provided for in articles eleven-A, eleven-AA,
eleven-AAA and eleven-AAAA of the general municipal law, to the extent
that such award is includable in gross income for federal income tax
purposes; provided, however, that such award is not distributed in the
form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
paragraph four of subsection (e) of section four hundred two of the
internal revenue code and taxed under section six hundred three of this
article; and provided, further, that such award is not distributed to a
taxpayer who has not attained the age of fifty-nine and one-half years.
S 2. Paragraph 37 of subdivision (c) of section 11-1712 of the admin-
istrative code of the city of New York, as added by section 2 of part KK
of chapter 59 of the laws of 2014, is amended to read as follows:
(37) The amount of any award paid to a volunteer firefighter or volun-
teer ambulance worker from a length of service defined contribution plan
or defined benefit plan as provided for in articles eleven-A, eleven-AA,
eleven-AAA and eleven-AAAA of the general municipal law, to the extent
A. 6009 22
that such award is includable in gross income for federal income tax
purposes; provided, however, that such award is not distributed in the
form of a lump sum distribution, as defined in subparagraph [(A)] (D) of
paragraph four of subsection (e) of section four hundred two of the
internal revenue code and taxed under section six hundred three of the
tax law; and provided, further, that such award is not distributed to a
taxpayer who has not attained the age of fifty-nine and one-half years.
S 3. Paragraph 3-a of subsection (c) of section 612 of the tax law, as
amended by chapter 760 of the laws of 1992, is amended to read as
follows:
(3-a) Pensions and annuities received by an individual who has
attained the age of fifty-nine and one-half, not otherwise excluded
pursuant to paragraph three of this subsection, to the extent includible
in gross income for federal income tax purposes, but not in excess of
twenty thousand dollars, which are periodic payments attributable to
personal services performed by such individual prior to his retirement
from employment, which arise (i) from an employer-employee relationship
or (ii) from contributions to a retirement plan which are deductible for
federal income tax purposes. However, the term "pensions and annuities"
shall also include distributions received by an individual who has
attained the age of fifty-nine and one-half from an individual retire-
ment account or an individual retirement annuity, as defined in section
four hundred eight of the internal revenue code, and distributions
received by an individual who has attained the age of fifty-nine and
one-half from self-employed individual and owner-employee retirement
plans which qualify under section four hundred one of the internal
revenue code, whether or not the payments are periodic in nature. Never-
theless, the term "pensions and annuities" shall not include any lump
sum distribution, as defined in subparagraph [(A)] (D) of paragraph four
of subsection (e) of section four hundred two of the internal revenue
code and taxed under section six hundred three of this article. Where a
husband and wife file a joint state personal income tax return, the
modification provided for in this paragraph shall be computed as if they
were filing separate state personal income tax returns. Where a payment
would otherwise come within the meaning of the term "pensions and annui-
ties" as set forth in this paragraph, except that such individual is
deceased, such payment shall, nevertheless, be treated as a pension or
annuity for purposes of this paragraph if such payment is received by
such individual's beneficiary.
S 4. Subparagraph (B) of paragraph 1 of subsection (e-1) of section
606 of the tax law, as added by section 2 of part K of chapter 59 of the
laws of 2014, is amended to read as follows:
(B) "Household" or "members of the household" means a qualified
taxpayer and all other persons, not necessarily related, who have the
same residence and share its furnishings, facilities and accommodations.
Such terms shall not include a tenant, subtenant, roomer or boarder who
is not related to the qualified taxpayer in any degree specified in
[paragraphs one through eight of subsection (a)] SUBPARAGRAPHS (A)
THROUGH (G) OF PARAGRAPH TWO OF SUBSECTION (D) of section one hundred
fifty-two of the internal revenue code. Provided, however, no person may
be a member of more than one household at one time.
S 5. Subparagraph (D) of paragraph 1 of subsection (e-1) of section
606 of the tax law, as added by section 2 of part K of chapter 59 of the
laws of 2014, is amended to read as follows:
(D) "Residence" means a dwelling in this state, IN A CITY WITH A POPU-
LATION OF OVER ONE MILLION, owned or rented by the taxpayer, and so much
A. 6009 23
of the land abutting it, not exceeding one acre, as is reasonably neces-
sary for use of the dwelling as a home, and may consist of a part of a
multi-dwelling or multi-purpose building including a cooperative or
condominium, and rental units within a single dwelling. Residence
includes a trailer or mobile home, used exclusively for residential
purposes and defined as real property pursuant to paragraph (g) of
subdivision twelve of section one hundred two of the real property tax
law.
S 6. Subparagraph (B) of paragraph 1 of subsection (e) of section 606
of the tax law, as amended by chapter 28 of the laws of 1987, is amended
to read as follows:
(B) "Household" or "members of the household" means a qualified
taxpayer and all other persons, not necessarily related, who have the
same residence and share its furnishings, facilities and accommodations.
Such terms shall not include a tenant, subtenant, roomer or boarder who
is not related to the qualified taxpayer in any degree specified in
[paragraphs one through eight of subsection (a)] SUBPARAGRAPHS (A)
THROUGH (G) OF PARAGRAPH TWO OF SUBSECTION (D) of section one hundred
fifty-two of the internal revenue code. Provided, however, no person may
be a member of more than one household at one time.
S 7. Paragraph 1 of subsection (b) of section 806 of the tax law, as
added by section 2 of part DD of chapter 59 of the laws of 2014, is
amended to read as follows:
(1) The commissioner may require the filing of a combined return
which, in addition to the return provided for in subsection (b) of
section eight hundred four of this article, may also include any of the
returns required to be filed by a [resident individual of New York
state] TAXPAYER pursuant to the provisions of section six hundred
fifty-one of this chapter and which may be required to be filed by such
[individual] TAXPAYER pursuant to any local law enacted pursuant to the
authority of article thirty, thirty-A or thirty-B of this chapter.
S 8. Paragraph 1 and clause (ii) of subparagraph (B) of paragraph 2 of
subsection (xx) of section 606 of the tax law, as added by section 4 of
part R of chapter 59 of the laws of 2014, are amended to read as
follows:
(1) A qualified New York manufacturer will be allowed a credit equal
to twenty percent of the real property tax it paid during the taxable
year for real property owned by such manufacturer in New York which was
principally used during the taxable year for manufacturing to the extent
not deducted in computing [federal] NEW YORK adjusted gross income. This
credit will not be allowed if the real property taxes that are the basis
for this credit are included in the calculation of another credit
claimed by the taxpayer.
(ii) In addition, the term real property tax includes taxes paid by
the taxpayer upon real property principally used during the taxable year
by the taxpayer in manufacturing where the taxpayer leases such real
property from an unrelated third party if the following conditions are
satisfied: (I) the tax must be paid by the taxpayer as lessee pursuant
to explicit requirements in a written lease, and (II) the taxpayer as
lessee has paid such taxes directly to the taxing authority and has
received a written receipt for payment of taxes from the taxing authori-
ty. [In the case of a combined group that constitutes a qualified New
York manufacturer, the conditions in the preceding sentence are satis-
fied if one corporation in the combined group is the lessee and another
corporation in the combined group makes the payments to the taxing
authority.]
A. 6009 24
S 9. Subsection (yy) of section 606 of the tax law, as added by
section 4 of part T of chapter 59 of the laws of 2014, is amended to
read as follows:
(yy) The tax-free NY area excise tax on telecommunication services
credit. A taxpayer that is a business or owner of a business that is
located in a tax-free NY area approved pursuant to article twenty-one of
the economic development law shall be allowed a credit equal to the
excise tax on telecommunication services imposed by section one hundred
eighty-six-e of this chapter and passed through to such business during
the taxable year to the extent not otherwise deducted in computing
[federal] NEW YORK adjusted gross income. This credit may be claimed
only where any tax imposed by such section one hundred eighty-six-e has
been separately stated on a bill from the provider of telecommunication
services and paid by such taxpayer with respect to such services
rendered within a tax-free NY area during the taxable year. 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 eighty-six of this article, provided,
however, that no interest will be paid thereon.
S 10. Subparagraph (i) of paragraph 2 of subdivision (b) and subdivi-
sion (d) of section 25-b of the labor law, as added by section 1 of part
MM of chapter 59 of the laws of 2014, are amended to read as follows:
(i) who is deemed to have a developmental disability, as that term is
defined in subdivision twenty-two of section 1.03 of the mental hygiene
law and who is certified by the education department or the office for
people with developmental disabilities[:
(A)] as a person with a disability which constitutes or results in a
substantial handicap to employment; and
[(B) as a person having completed or as receiving services under an
individualized written rehabilitation plan approved by the education
department or other state agency responsible for providing vocational
rehabilitation services to such individual; and]
(d) To participate in the [developmentally disabled works] WORKERS
WITH DISABILITIES tax credit program, an employer must submit an appli-
cation (in a form prescribed by the commissioner) to the commissioner
[no later than November thirtieth of the prior year]. The commissioner
shall establish guidelines that specify requirements for employers to
participate in the program including criteria for certifying qualified
employees. Any regulations that the commissioner determines are neces-
sary may be adopted on an emergency basis notwithstanding anything to
the contrary in section two hundred two of the state administrative
procedure act. Such requirements may include the types of industries
that the employers are engaged in.
S 11. This act shall take effect immediately, provided, however that:
(i) sections one and two of this act shall be deemed to have been in
full force and effect on and after the effective date of part KK of
chapter 59 of the laws of 2014;
(ii) sections four and five of this act shall be deemed to have been
in full force and effect on and after the effective date of part K of
chapter 59 of the laws of 2014, provided, however, that amendments to
subsection (e-1) of section 606 of the tax law made by sections four and
five of this act shall not affect the repeal of such subsection and
shall be deemed repealed therewith;
A. 6009 25
(iii) section seven of this act shall be deemed to have been in full
force and effect on and after the effective date of part DD of chapter
59 of the laws of 2014;
(iv) section eight of this act shall be deemed to have been in full
force and effect on and after the effective date of part R of chapter 59
of the laws of 2014;
(v) section nine of this act shall be deemed to have been in full
force and effect on and after the effective date of part T of chapter 59
of the laws of 2014;
(vi) section ten of this act shall be deemed to have been in full
force and effect on and after the effective date of part MM of chapter
59 of the laws of 2014; and
(vii) the amendments to section 25-b of the labor law made by section
ten of this act, shall not affect the repeal of such section and shall
be deemed repealed therewith.
PART J
Section 1. Section 9 of part V of chapter 62 of the laws of 2006,
amending the tax law relating to the empire state commercial production
tax credit, is REPEALED.
S 2. Subdivision (c) of section 28 of the tax law, as amended by
section 45 of part A of chapter 59 of the laws of 2014, is relettered
subdivision (d) and a new subdivision (c) is added to read as follows:
(C) THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT, ON OR BEFORE
DECEMBER FIRST OF EACH YEAR, TO THE GOVERNOR, THE DIRECTOR OF THE DIVI-
SION OF THE BUDGET, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE
SPEAKER OF THE ASSEMBLY AN ANNUAL REPORT INCLUDING, BUT NOT LIMITED TO,
THE FOLLOWING INFORMATION REGARDING THE PREVIOUS CALENDAR YEAR:
(1) THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED, THE NAME AND ADDRESS
OF EACH QUALIFIED COMMERCIAL PRODUCTION COMPANY ALLOCATED CREDITS UNDER
THIS SECTION, THE TOTAL AMOUNT OF CREDITS ALLOCATED TO EACH QUALIFIED
COMMERCIAL PRODUCTION COMPANY, THE TOTAL AMOUNT OF QUALIFIED PRODUCTION
COSTS AND PRODUCTION COSTS FOR EACH QUALIFIED COMMERCIAL PRODUCTION
COMPANY, AND THE ESTIMATED NUMBER OF EMPLOYEES, CREDIT-ELIGIBLE MAN
HOURS, AND CREDIT-ELIGIBLE WAGES ASSOCIATED WITH EACH QUALIFIED COMMER-
CIAL PRODUCTION COMPANY ALLOCATED CREDITS UNDER THIS SECTION;
(2) FOR QUALIFIED COMMERCIAL PRODUCTION COMPANIES THAT WERE ALLOCATED
CREDIT PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH TWO OF SUBDIVISION (A)
OF THIS SECTION: THE NAME AND ADDRESS OF EACH QUALIFIED COMMERCIAL
PRODUCTION COMPANY, THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED, THE
TOTAL AMOUNT OF CREDITS ALLOCATED TO EACH QUALIFIED COMMERCIAL
PRODUCTION COMPANY, TOTAL QUALIFIED PRODUCTION COSTS AND PRODUCTION
COSTS FOR EACH QUALIFIED PRODUCTION COMPANY, AND THE ESTIMATED NUMBER OF
EMPLOYEES, CREDIT-ELIGIBLE MAN HOURS, AND CREDIT-ELIGIBLE WAGES ASSOCI-
ATED WITH EACH QUALIFIED COMMERCIAL PRODUCTION COMPANY THAT FILMED OR
RECORDED A QUALIFIED COMMERCIAL WITHIN THE DISTRICT;
(3) FOR QUALIFIED COMMERCIAL PRODUCTION COMPANIES THAT WERE ALLOCATED
CREDIT PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH TWO OF SUBDIVISION
(A) OF THIS SECTION: THE NAME AND ADDRESS OF EACH QUALIFIED COMMERCIAL
PRODUCTION COMPANY, THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED, THE
TOTAL AMOUNT OF CREDITS ALLOCATED TO EACH QUALIFIED COMMERCIAL
PRODUCTION COMPANY, TOTAL QUALIFIED PRODUCTION COSTS AND PRODUCTION
COSTS FOR EACH QUALIFIED PRODUCTION COMPANY, AND THE ESTIMATED NUMBER OF
EMPLOYEES, CREDIT-ELIGIBLE MAN HOURS, AND CREDIT-ELIGIBLE WAGES ASSOCI-
A. 6009 26
ATED WITH EACH QUALIFIED COMMERCIAL PRODUCTION COMPANY THAT FILMED OR
RECORDED A QUALIFIED COMMERCIAL OUTSIDE THE DISTRICT; AND
(4) THE AMOUNT OF CREDITS REALLOCATED TO ALL ELIGIBLE QUALIFIED
COMMERCIAL PRODUCTION COMPANIES PURSUANT TO SUBPARAGRAPH (III) OF PARA-
GRAPH TWO OF SUBDIVISION (A) OF THIS SECTION.
(5) THE REPORT MAY ALSO INCLUDE ANY RECOMMENDATIONS FOR CHANGES IN THE
CALCULATION OR ADMINISTRATION OF THE CREDIT, RECOMMENDATIONS REGARDING
CONTINUING MODIFICATION OR REPEAL OF THIS CREDIT, AND ANY OTHER INFORMA-
TION REGARDING THIS CREDIT AS MAY BE USEFUL AND APPROPRIATE.
S 3. This act shall take effect immediately with the first report
being due December 1, 2016, with regard to credits allocated in calendar
year 2015.
PART K
Section 1. Subdivisions 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18,
and 19 of section 352 of the economic development law, as added by
section 1 of part MM of chapter 59 of the laws of 2010, subdivision 12
as amended by section 1 of part G of chapter 61 of the laws of 2011, are
amended to read as follows:
7. "ENTERTAINMENT COMPANY" MEANS A CORPORATION, PARTNERSHIP, LIMITED
PARTNERSHIP, OR OTHER ENTITY PRINCIPALLY ENGAGED IN THE PRODUCTION OR
POST PRODUCTION OF (I) MOTION PICTURES, WHICH SHALL INCLUDE
FEATURE-LENGTH FILMS AND TELEVISION FILMS, (II) INSTRUCTIONAL VIDEOS,
(III) TELEVISED COMMERCIAL ADVERTISEMENTS, (IV) ANIMATED FILMS OR
CARTOONS, (V) MUSIC VIDEOS, (VI) TELEVISION PROGRAMS, WHICH SHALL
INCLUDE, BUT NOT BE LIMITED TO, TELEVISION SERIES, TELEVISION PILOTS,
AND SINGLE TELEVISION EPISODES, (VII) VIDEO GAMES, OTHER THAN THOSE
EMBEDDED AND USED EXCLUSIVELY IN ADVERTISING, PROMOTIONAL WEBSITES OR
MICROSITES, OR (VIII) PROGRAMS PRIMARILY INTENDED FOR RADIO BROADCAST.
"ENTERTAINMENT COMPANY" SHALL NOT INCLUDE AN ENTITY (I) PRINCIPALLY
ENGAGED IN THE LIVE PERFORMANCE OF EVENTS, INCLUDING, BUT NOT LIMITED
TO, THEATRICAL PRODUCTIONS, CONCERTS, CIRCUSES, AND SPORTING EVENTS,
(II) PRINCIPALLY ENGAGED IN THE PRODUCTION OF CONTENT INTENDED PRIMARILY
FOR INDUSTRIAL, CORPORATE OR INSTITUTIONAL END-USERS, (III) PRINCIPALLY
ENGAGED IN THE PRODUCTION OF FUNDRAISING FILMS OR PROGRAMS, OR (IV)
ENGAGED IN THE PRODUCTION OF CONTENT FOR WHICH RECORDS ARE REQUIRED
UNDER SECTION 2257 OF TITLE 18, UNITED STATES CODE, TO BE MAINTAINED
WITH RESPECT TO ANY PERFORMER IN SUCH PRODUCTION.
8. "Financial services data centers or financial services customer
back office operations" means operations that manage the data or
accounts of existing customers or provide product or service information
and support to customers of financial services companies, including
banks, other lenders, securities and commodities brokers and dealers,
investment banks, portfolio managers, trust offices, and insurance
companies.
[8.] 9. "Investment zone" shall mean an area within the state that had
been designated under paragraph (i) of subdivision (a) and subdivision
(d) of section nine hundred fifty-eight of the general municipal law
that was wholly contained within up to four distinct and separate
contiguous areas as of the date immediately preceding the date the
designation of such area expired pursuant to section nine hundred
sixty-nine of the general municipal law.
[9.] 10. "Manufacturing" means the process of working raw materials
into products suitable for use or which gives new shapes, new quality or
new combinations to matter which has already gone through some artifi-
A. 6009 27
cial process by the use of machinery, tools, appliances, or other simi-
lar equipment. "Manufacturing" does not include an operation that
involves only the assembly of components, provided, however, the assem-
bly of motor vehicles or other high value-added products shall be
considered manufacturing.
[10.] 11. "Net new jobs" means [jobs created in this state that]:
(a) JOBS CREATED IN THIS STATE THAT (I) are new to the state[;],
[(b)] (II) have not been transferred from employment with another
business located in this state including from a related person in this
state[;],
[(c)] (III) are either full-time wage-paying jobs or equivalent to a
full-time wage-paying job requiring at least thirty-five hours per
week[;], and
[(d)] (IV) are filled for more than six months[.]; OR
(B) JOBS OBTAINED BY AN ENTERTAINMENT COMPANY IN THIS STATE (I) AS A
RESULT OF THE TERMINATION OF A LICENSING AGREEMENT WITH ANOTHER ENTER-
TAINMENT COMPANY, (II) THAT THE COMMISSIONER DETERMINES TO BE AT RISK OF
LEAVING THE STATE AS A DIRECT RESULT OF THE TERMINATION, (III) THAT ARE
EITHER FULL-TIME WAGE-PAYING JOBS OR EQUIVALENT TO A FULL-TIME WAGE-PAY-
ING JOB REQUIRING AT LEAST THIRTY-FIVE HOURS PER WEEK, AND (IV) THAT ARE
FILLED FOR MORE THAN SIX MONTHS.
[11.] 12. "Participant" means a business entity that:
(a) has completed an application prescribed by the department to be
admitted into the program;
(b) has been issued a certificate of eligibility by the department;
(c) has demonstrated that it meets the eligibility criteria in section
three hundred fifty-three and subdivision two of section three hundred
fifty-four of this article; and
(d) has been certified as a participant by the commissioner.
[12.] 13. "Preliminary schedule of benefits" means the maximum aggre-
gate amount of each component of the tax credit that a participant in
the excelsior jobs program is eligible to receive pursuant to this arti-
cle. The schedule shall indicate the annual amount of each component of
the credit a participant may claim in each of its ten years of eligibil-
ity. The preliminary schedule of benefits shall be issued by the
department when the department approves the application for admission
into the program. The commissioner may amend that schedule, provided
that the commissioner complies with the credit caps in section three
hundred fifty-nine of this article.
[13.] 14. "Qualified investment" means an investment in tangible prop-
erty (including a building or a structural component of a building)
owned by a business enterprise which:
(a) is depreciable pursuant to section one hundred sixty-seven of the
internal revenue code;
(b) has a useful life of four years or more;
(c) is acquired by purchase as defined in section one hundred seven-
ty-nine (d) of the internal revenue code;
(d) has a situs in this state; and
(e) is placed in service in the state on or after the date the certif-
icate of eligibility is issued to the business enterprise.
[14.] 15. "Regionally significant project" means (a) a manufacturer
creating at least fifty net new jobs in the state and making significant
capital investment in the state; (b) a business creating at least twenty
net new jobs in agriculture in the state and making significant capital
investment in the state, (c) a financial services firm, distribution
center, or back office operation creating at least three hundred net new
A. 6009 28
jobs in the state and making significant capital investment in the
state, [or] (d) a scientific research and development firm creating at
least twenty net new jobs in the state, and making significant capital
investment in the state OR (E) AN ENTERTAINMENT COMPANY CREATING OR
OBTAINING AT LEAST TWO HUNDRED NET NEW JOBS IN THE STATE AND MAKING
SIGNIFICANT CAPITAL INVESTMENT IN THE STATE. Other businesses creating
three hundred or more net new jobs in the state and making significant
capital investment in the state may be considered eligible as a
regionally significant project by the commissioner as well. The commis-
sioner shall promulgate regulations pursuant to section three hundred
fifty-six of this article to determine what constitutes significant
capital investment for each of the project categories indicated in this
subdivision and what additional criteria a business must meet to be
eligible as a regionally significant project, including, but not limited
to, whether a business exports a substantial portion of its products or
services outside of the state or outside of a metropolitan statistical
area or county within the state.
[15.] 16. "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.
[16.] 17. "Remuneration" means wages and benefits paid to an employee
by a participant in the excelsior jobs program.
[17.] 18. "Research and development expenditures" mean the expenses of
the business enterprise that are qualified research expenses under the
federal research and development credit under section forty-one of the
internal revenue code and are attributable to activities conducted in
the state. If the federal research and development credit has expired,
then the research and development expenditures shall be calculated as if
the federal research and development credit structure and definition in
effect in federal tax year two thousand nine were still in effect.
[18.] 19. "Scientific research and development" means conducting
research and experimental development in the physical, engineering, and
life sciences, including but not limited to agriculture, electronics,
environmental, biology, botany, biotechnology, computers, chemistry,
food, fisheries, forests, geology, health, mathematics, medicine, ocean-
ography, pharmacy, physics, veterinary, and other allied subjects. For
the purposes of this article, scientific research and development does
not include medical or veterinary laboratory testing facilities.
[19.] 20. "Software development" means the creation of coded computer
instructions and includes new media as defined by the commissioner in
regulations.
S 2. Subdivisions 1, 3, and 5 of section 353 of the economic develop-
ment law, subdivisions 1 and 5 as amended by section 2 of part G of
chapter 61 of the laws of 2011 and subdivision 3 as amended by section 1
of part C of chapter 68 of the laws of 2013, are amended to read as
follows:
1. To be a participant in the excelsior jobs program, a business enti-
ty shall operate in New York state predominantly:
(a) as a financial services data center or a financial services back
office operation;
(b) in manufacturing;
(c) in software development and new media;
(d) in scientific research and development;
(e) in agriculture;
(f) in the creation or expansion of back office operations in the
state;
A. 6009 29
(g) in a distribution center; [or]
(h) in an industry with significant potential for private-sector
economic growth and development in this state as established by the
commissioner in regulations promulgated pursuant to this article. In
promulgating such regulations the commissioner shall include job and
investment criteria; OR
(I) AS AN ENTERTAINMENT COMPANY.
3. For the purposes of this article, in order to participate in the
excelsior jobs program, a business entity operating predominantly in
manufacturing must create at least ten net new jobs; a business entity
operating predominately in agriculture must create at least five net new
jobs; a business entity operating predominantly as a financial service
data center or financial services customer back office operation must
create at least fifty net new jobs; a business entity operating predomi-
nantly in scientific research and development must create at least five
net new jobs; a business entity operating predominantly in software
development must create at least five net new jobs; a business entity
creating or expanding back office operations must create at least fifty
net new jobs; A BUSINESS ENTITY OPERATING PREDOMINANTLY AS AN ENTER-
TAINMENT COMPANY MUST CREATE OR OBTAIN AT LEAST ONE HUNDRED NET NEW
JOBS; or a business entity operating predominantly as a distribution
center in the state must create at least seventy-five net new jobs,
notwithstanding subdivision five of this section; or a business entity
must be a regionally significant project as defined in this article; or
5. A not-for-profit business entity, a business entity whose primary
function is the provision of services including personal services, busi-
ness services, or the provision of utilities, and a business entity
engaged predominantly in the retail or entertainment industry, OTHER
THAN A BUSINESS OPERATING AS AN ENTERTAINMENT COMPANY AS DEFINED IN THIS
ARTICLE, and a company engaged in the generation or distribution of
electricity, the distribution of natural gas, or the production of steam
associated with the generation of electricity are not eligible to
receive the tax credit described in this article.
S 3. Subdivision 1 of section 354 of the economic development law, as
amended by section 3 of part G of chapter 61 of the laws of 2011, is
amended as follows:
1. A business enterprise must submit a completed application as
prescribed by the commissioner. AN APPLICATION MADE BY AN ENTERTAINMENT
COMPANY MUST BE SUBMITTED BY JUNE FIRST, TWO THOUSAND FIFTEEN. An appli-
cation may be recommended by entities, including but not limited to,
those created pursuant to subdivision (e) of section nine hundred
fifty-seven of the general municipal law.
S 4. Subdivision 6 of section 355 of the economic development law, as
amended by section 4 of part G of chapter 61 of the laws of 2011, is
amended to read as follows:
6. Claim of tax credit. The business enterprise shall be allowed to
claim the credit as prescribed in section thirty-one of the tax law. NO
COSTS USED BY AN ENTERTAINMENT COMPANY AS THE BASIS FOR THE ALLOWANCE OF
A TAX CREDIT DESCRIBED IN THIS SECTION SHALL BE USED BY SUCH ENTER-
TAINMENT COMPANY TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THE TAX
LAW.
S 5. This act shall take effect immediately.
PART L
A. 6009 30
Section 1. Paragraph (a) of subdivision 1 of section 210-B of the tax
law, as added by section 17 of part A of chapter 59 of the laws of 2014,
is amended to read as follows:
(a) A taxpayer shall be allowed a credit, to be computed as hereinaft-
er provided, against the tax imposed by this article. The amount of the
credit shall be the percent provided for hereinbelow of the investment
credit base. The investment credit base is the cost or other basis for
federal income tax purposes of tangible personal property and other
tangible property, including buildings and structural components of
buildings, described in paragraph (b) of this subdivision, less the
amount of the nonqualified nonrecourse financing with respect to such
property to the extent such financing would be excludible from the cred-
it base pursuant to section 46(c)(8) of the internal revenue code
(treating such property as section thirty-eight property irrespective of
whether or not it in fact constitutes section thirty-eight property).
If, at the close of a taxable year following the taxable year in which
such property was placed in service, there is a net decrease in the
amount of nonqualified nonrecourse financing with respect to such prop-
erty, such net decrease shall be treated as if it were the cost or other
basis of property described in paragraph (b) of this subdivision
acquired, constructed, reconstructed or erected during the year of the
decrease in the amount of nonqualified nonrecourse financing. PROVIDED,
HOWEVER, THAT THE INVESTMENT CREDIT BASE OF A MASTER OF A FILM, TELE-
VISION SHOW OR COMMERCIAL SHALL ONLY INCLUDE THOSE COSTS ASSOCIATED WITH
THE CREATION, PRODUCTION OR REPRODUCTION OF SUCH FILM, TELEVISION SHOW
OR COMMERCIAL INCURRED WITHIN THE STATE; PROVIDED, FURTHER, THAT THE
INVESTMENT CREDIT BASE OF A MASTER SHALL NOT INCLUDE THOSE COSTS USED BY
THE TAXPAYER OR ANOTHER TAXPAYER IN THE CALCULATION OF ANY OTHER TAX
CREDIT ALLOWED UNDER THIS CHAPTER. In the case of a combined report the
term investment credit base shall mean the sum of the investment credit
base of each corporation included on such report. The percentage to be
used to compute the credit allowed pursuant to this subdivision shall be
five percent with respect to the first three hundred fifty million
dollars of the investment credit base, and four percent with respect to
the investment credit base in excess of three hundred fifty million
dollars, except that in the case of research and development property at
the option of the taxpayer the applicable percentage shall be nine.
S 2. Section 211 of the tax law is amended by adding a new subdivision
15 to read as follows:
15. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION EIGHT OF THIS
SECTION, IN ORDER TO ADMINISTER THE LIMITATION IN SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN-B OF THIS ARTICLE REGARDING THE INVESTMENT CRED-
IT BASE OF A MASTER OF A FILM, TELEVISION SHOW OR COMMERCIAL, THE
COMMISSIONER MAY DISCLOSE TO A TAXPAYER CLAIMING THE INVESTMENT CREDIT
FOR COSTS ASSOCIATED WITH THE CREATION, PRODUCTION OR REPRODUCTION OF A
FILM, TELEVISION SHOW OR COMMERCIAL PURSUANT TO SUCH SECTION INFORMATION
INCLUDED IN A REPORT OR A RETURN OF ANOTHER TAXPAYER FILED PURSUANT TO
THIS CHAPTER CLAIMING A TAX CREDIT UNDER THIS CHAPTER RELATING TO COSTS
ASSOCIATED WITH THE CREATION, PRODUCTION OR REPRODUCTION OF SUCH FILM,
TELEVISION SHOW OR COMMERCIAL.
S 3. Paragraph 1 of subsection (a) of section 606 of the tax law, as
amended by chapter 170 of the laws of 1994, is amended to read as
follows:
(1) A taxpayer shall be allowed a credit, to be computed as hereinaft-
er provided, against the tax imposed by this article. The amount of the
credit shall be the per cent provided for hereinbelow of the investment
A. 6009 31
credit base. The investment credit base is the cost or other basis, for
federal income tax purposes, of tangible personal property and other
tangible property, including buildings and structural components of
buildings, described in paragraph two of this subsection, less the
amount of the nonqualified nonrecourse financing with respect to such
property to the extent such financing would be excludible from the cred-
it base pursuant to section 46(c)(8) of the internal revenue code
(treating such property as section thirty-eight property irrespective of
whether or not it in fact constitutes section thirty-eight property).
If, at the close of a taxable year following the taxable year in which
such property was placed in service, there is a net decrease in the
amount of nonqualified nonrecourse financing with respect to such prop-
erty, such net decrease shall be treated as if it were the cost or other
basis of property described in paragraph two of this subsection
acquired, constructed, reconstructed or erected during the year of the
decrease in the amount of nonqualified nonrecourse financing. PROVIDED,
HOWEVER, THAT THE INVESTMENT CREDIT BASE OF A MASTER OF A FILM, TELE-
VISION SHOW OR COMMERCIAL SHALL ONLY INCLUDE THOSE COSTS ASSOCIATED WITH
THE CREATION, PRODUCTION OR REPRODUCTION OF SUCH FILM, TELEVISION SHOW
OR COMMERCIAL INCURRED WITHIN THE STATE; PROVIDED, FURTHER, THAT THE
INVESTMENT CREDIT BASE OF A MASTER SHALL NOT INCLUDE THOSE COSTS USED BY
THE TAXPAYER OR ANOTHER TAXPAYER IN THE CALCULATION OF ANY OTHER TAX
CREDIT ALLOWED UNDER THIS CHAPTER. The percentage to be used to compute
the credit allowed pursuant to this subsection shall be that percentage
appearing in column two which is opposite the appropriate period in
column one in which the tangible personal property was acquired,
constructed, reconstructed or erected, as the case may be:
Column 1 Column 2
After December 31, 1968 and
prior to January 1, 1974 one per cent
After December 31, 1973 and
prior to January 1, 1978 two per cent
After December 31, 1977 and
prior to January 1, 1979 three per cent
After December 31, 1978 and
prior to June 1, 1981 four per cent
After May 31, 1981 and
prior to July 1, 1982 five per cent
After June 30, 1982 and
before January 1, 1987 six per cent
After December 31, 1986 four per cent, except that in the
case of research and development
property the applicable percentage
shall be seven
Provided, however, that in the case of an acquisition, construction,
reconstruction or erection which was commenced in any one period and
continued or completed in any subsequent period the credit shall be the
sum of the portions of the investment credit base attributable to each
such period, which portion with respect to each such period shall be
ascertained by multiplying such investment credit base by a fraction the
numerator of which shall be the expenditures paid or incurred during
such period for such purposes and the denominator of which shall be the
total of all expenditures paid or incurred for such acquisition,
A. 6009 32
construction, reconstruction or erection, multiplied by the allowable
percentage for each such period.
S 4. Subsection (e) of section 697 of the tax law is amended by adding
a new paragraph 3-b to read as follows:
(3-B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS
SUBSECTION, IN ORDER TO ADMINISTER THE LIMITATION IN PARAGRAPH ONE OF
SUBSECTION (A) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE REGARDING THE
INVESTMENT CREDIT BASE OF A MASTER OF A FILM, TELEVISION SHOW OR COMMER-
CIAL, THE COMMISSIONER MAY DISCLOSE TO A TAXPAYER CLAIMING THE INVEST-
MENT CREDIT FOR COSTS ASSOCIATED WITH THE CREATION, PRODUCTION OR
REPRODUCTION OF A FILM, TELEVISION SHOW OR COMMERCIAL PURSUANT TO SUCH
SECTION INFORMATION INCLUDED IN A REPORT OR A RETURN OF ANOTHER TAXPAYER
FILED PURSUANT TO THIS CHAPTER CLAIMING A TAX CREDIT UNDER THIS CHAPTER
RELATING TO COSTS ASSOCIATED WITH THE CREATION, PRODUCTION OR REPROD-
UCTION OF SUCH FILM, TELEVISION SHOW OR COMMERCIAL.
S 5. Subparagraph (vi) of paragraph (a) of subdivision 1 of section
210 of the tax law, as amended by section 12 of part A of chapter 59 of
the laws of 2014, is amended to read as follows:
(vi) for taxable years beginning on or after January first, two thou-
sand fourteen, the amount prescribed by this paragraph for a taxpayer
which is a qualified New York manufacturer, shall be computed at the
rate of zero percent of the taxpayer's business income base. The term
"manufacturer" shall mean a taxpayer which during the taxable year is
principally engaged in the production of goods by manufacturing, proc-
essing, assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing. However,
the generation and distribution of electricity, the distribution of
natural gas, and the production of steam associated with the generation
of electricity shall not be qualifying activities for a manufacturer
under this subparagraph. Moreover, the combined group shall be consid-
ered a "manufacturer" for purposes of this subparagraph only if the
combined group during the taxable year is principally engaged in the
activities set forth in this paragraph, or any combination thereof. A
taxpayer or a combined group shall be "principally engaged" in activ-
ities described above if, during the taxable year, more than fifty
percent of the gross receipts of the taxpayer or combined group, respec-
tively, are derived from receipts from the sale of goods produced by
such activities. HOWEVER, THE LICENSE OF A MASTER OF A FILM, TELEVISION
SHOW OR COMMERCIAL SHALL NOT CONSTITUTE THE SALE OF A GOOD UNDER THIS
SUBPARAGRAPH. In computing a combined group's gross receipts, intercor-
porate receipts shall be eliminated. A "qualified New York manufacturer"
is a manufacturer which has property in New York which is described in
subdivision one of section two hundred ten-B of this article and either
(I) the adjusted basis of such property for federal income tax purposes
at the close of the taxable year is at least one million dollars or (II)
all of its real and personal property is located in New York. A taxpayer
or, in the case of a combined report, a combined group, that does not
satisfy the principally engaged test may be a qualified New York
manufacturer if the taxpayer or the combined group employs during the
taxable year at least two thousand five hundred employees in manufactur-
ing in New York and the taxpayer or the combined group has property in
the state used in manufacturing, the adjusted basis of which for federal
income tax purposes at the close of the taxable year is at least one
hundred million dollars.
S 6. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.
A. 6009 33
PART M
Section 1. Section 25-a of the labor law, as added by section 1 of
part D of chapter 56 of the laws of 2011, subdivision (a) as amended by
section 3, subdivision (c) as amended by section 4 and subdivision (f)
as amended by section 5 of part U of chapter 59 of the laws of 2014, and
subdivision (b) as amended by section 1 and subdivision (d) as amended
by section 2 of part DD of chapter 59 of the laws of 2013, is amended to
read as follows:
S 25-a. Power to administer the [New York] URBAN youth [works] JOBS
PROGRAM tax credit [program]. (a) The commissioner is authorized to
establish and administer the [New York youth works tax credit] program
ESTABLISHED UNDER THIS SECTION to provide tax incentives to employers
for employing at risk youth in part-time and full-time positions. There
will be five distinct pools of tax incentives. Program one will cover
tax incentives allocated for two thousand twelve and two thousand thir-
teen. Program two will cover tax incentives allocated in two thousand
fourteen [to be used in two thousand fourteen and fifteen]. Program
three will cover tax incentives allocated in two thousand fifteen [to be
used in two thousand fifteen and sixteen]. Program four will cover tax
incentives allocated in two thousand sixteen [to be used in two thousand
sixteen and seventeen]. Program five will cover tax incentives allocated
in two thousand seventeen [to be used in two thousand seventeen and
eighteen]. The commissioner is authorized to allocate up to twenty-five
million dollars of tax credits under program one, ten million dollars of
tax credits under program two, AND ten million dollars of tax credits
FOR A BASE CREDIT ALLOCATION AND AN ADDITIONAL TEN MILLION DOLLARS OF
TAX CREDITS FOR AN INCREMENTAL ALLOCATION under [program] EACH OF
PROGRAMS three, [ten million dollars of tax credits under program] four,
[ten million dollars of tax credits under program] AND FIVE.
(b) Definitions. (1) The term "qualified employer" means an employer
that has been certified by the commissioner to participate in the [New
York youth works tax credit] program ESTABLISHED UNDER THIS SECTION and
that employs one or more qualified employees.
(2) The term "qualified employee" means an individual:
(i) who is between the age of sixteen and twenty-four;
(ii) who resides in a [city with a population of fifty-five thousand
or more or a town with a population of four hundred eighty thousand or
more] TARGETED LOCALITY;
(iii) who is low-income or at-risk, as those terms are defined by the
commissioner;
(iv) who is unemployed prior to being hired by the qualified employer;
and
(v) who will be working for the qualified employer in a full-time or
part-time position that pays wages that are equivalent to the wages paid
for similar jobs, with appropriate adjustments for experience and train-
ing, and for which no other employee has been terminated, or where the
employer has not otherwise reduced its workforce by involuntary termi-
nations with the intention of filling the vacancy by creating a new
hire.
(3) THE TERM "LOCALITY" MEANS A CITY WITH A POPULATION OF FIFTY-FIVE
THOUSAND OR MORE OR A TOWN WITH A POPULATION OF FOUR HUNDRED EIGHTY
THOUSAND OR MORE.
(4) THE TERM "LOCALITY WITH HIGH UNEMPLOYMENT" MEANS A LOCALITY THAT
IS LOCATED IN ONE OR MORE COUNTIES THAT ARE RANKED AMONG THE TOP SIX
COUNTIES CONTAINING A LOCALITY FOR THE TWELVE-MONTH ANNUAL AVERAGE UNEM-
A. 6009 34
PLOYMENT RATE, AS DETERMINED BY THE COMMISSIONER USING THE MOST CURRENT
AVAILABLE DATA, PROVIDED, HOWEVER, THAT MULTIPLE COUNTIES THAT COMPRISE
A SINGLE LOCALITY SHALL NOT BE SEPARATELY RANKED AND SHALL BE CONSIDERED
AS ONE FOR PURPOSES OF DETERMINING THE TOP SIX.
(5) THE TERM "LOCALITY WITH HIGH YOUTH POVERTY" MEANS A LOCALITY THAT
IS RANKED AMONG THE TOP SIX IN NEW YORK STATE FOR INDIVIDUALS BETWEEN
THE AGES OF EIGHTEEN AND TWENTY-FOUR LIVING BELOW THE POVERTY LINE, AS
DETERMINED BY THE UNITED STATES CENSUS BUREAU 5-YEAR AMERICAN COMMUNITY
SURVEY, USING THE MOST CURRENT DATA AVAILABLE.
(6) THE TERM "TARGETED LOCALITY" MEANS A LOCALITY, PROVIDED, HOWEVER,
THAT FOR PURPOSES OF THE INCREMENTAL ALLOCATIONS IN PROGRAMS THREE,
FOUR, AND FIVE, SUCH TERM SHALL BE LIMITED TO A LOCALITY WITH HIGH UNEM-
PLOYMENT THAT IS ALSO A LOCALITY WITH HIGH YOUTH POVERTY.
(c) A qualified employer shall be entitled to a tax credit equal to
(1) five hundred dollars per month for up to six months for each quali-
fied employee the employer employs in a full-time job or two hundred
fifty dollars per month for up to six months for each qualified employee
the employer employs in a part-time job of at least twenty hours per
week or ten hours per week when the qualified employee is enrolled in
high school full-time, (2) one thousand dollars for each qualified
employee who is employed for at least an additional six months by the
qualified employer in a full-time job or five hundred dollars for each
qualified employee who is employed for at least an additional six months
by the qualified employer in a part-time job of at least twenty hours
per week or ten hours per week when the qualified employee is enrolled
in high school full-time, and (3) an additional one thousand dollars for
each qualified employee who is employed for at least an additional year
after the first year of the employee's employment by the qualified
employer in a full-time job or five hundred dollars for each qualified
employee who is employed for at least an additional year after the first
year of the employee's employment by the qualified employer in a part-
time job of at least twenty hours per week or ten hours per week when
the qualified employee is enrolled in high school full time. The tax
credits shall be claimed by the qualified employer as specified in
subdivision [forty-four] THIRTY-SIX of section two hundred [ten] TEN-B
and subsection (tt) of section six hundred six of the tax law.
(d) To participate in the [New York youth works tax credit] program
ESTABLISHED UNDER THIS SECTION, an employer must submit an application
(in a form prescribed by the commissioner) to the commissioner after
January first, two thousand twelve but no later than November thirtieth,
two thousand twelve for program one, after January first, two thousand
fourteen but no later than November thirtieth, two thousand fourteen for
program two, after January first, two thousand fifteen but no later than
November thirtieth, two thousand fifteen for program three, after Janu-
ary first, two thousand sixteen but no later than November thirtieth,
two thousand sixteen for program four, and after January first, two
thousand seventeen but no later than November thirtieth, two thousand
seventeen for program five. The qualified employees must start their
employment on or after January first, two thousand twelve but no later
than December thirty-first, two thousand twelve for program one, on or
after January first, two thousand fourteen but no later than December
thirty-first, two thousand fourteen for program two, on or after January
first, two thousand fifteen but no later than December thirty-first, two
thousand fifteen for program three, on or after January first, two thou-
sand sixteen but no later than December thirty-first, two thousand
sixteen for program four, and on or after January first, two thousand
A. 6009 35
seventeen but no later than December thirty-first, two thousand seven-
teen for program five. The commissioner shall establish guidelines and
criteria that specify requirements for employers to participate in the
program including criteria for certifying qualified employees. Any regu-
lations that the commissioner determines are necessary may be adopted on
an emergency basis notwithstanding anything to the contrary in section
two hundred two of the state administrative procedure act. Such require-
ments may include the types of industries that the employers are engaged
in. The commissioner may give preference to employers that are engaged
in demand occupations or industries, or in regional growth sectors,
including those identified by the regional economic development coun-
cils, such as clean energy, healthcare, advanced manufacturing and
conservation. In addition, the commissioner shall give preference to
employers who offer advancement and employee benefit packages to the
qualified individuals.
(e) If, after reviewing the application submitted by an employer, the
commissioner determines that such employer is eligible to participate in
the [New York youth works tax credit] program ESTABLISHED UNDER THIS
SECTION, the commissioner shall issue the employer a certificate of
eligibility that establishes the employer as a qualified employer. The
certificate of eligibility shall specify the maximum amount of [New York
youth works] tax credit that the employer will be allowed to claim.
(f) The commissioner shall annually publish a report. Such report must
contain the names and addresses of any employer issued a certificate of
eligibility under this section, and the maximum amount of New York youth
works tax credit allowed to the employer as specified on such certif-
icate of eligibility.
S 2. The subdivision heading and paragraph (a) of subdivision 36 of
section 210-B of the tax law, as added by section 17 of part A of chap-
ter 59 of the laws of 2014, is amended to read as follows:
[New York] URBAN youth [works] JOBS PROGRAM tax credit. (a) A taxpayer
that has been certified by the commissioner of labor as a qualified
employer pursuant to section twenty-five-a of the labor law shall be
allowed a credit against the tax imposed by this article equal to (i)
five hundred dollars per month for up to six months for each qualified
employee the employer employs in a full-time job or two hundred fifty
dollars per month for up to six months for each qualified employee the
employer employs in a part-time job of at least twenty hours per week or
ten hours per week when the qualified employee is enrolled in high
school full-time, (ii) one thousand dollars for each qualified employee
who is employed for at least an additional six months by the qualified
employer in a full-time job or five hundred dollars for each qualified
employee who is employed for at least an additional six months by the
qualified employer in a part-time job of at least twenty hours per week
or ten hours per week when the qualified employee is enrolled in high
school full-time, and (iii) an additional one thousand dollars for each
qualified employee who is employed for at least an additional year after
the first year of the employee's employment by the qualified employer in
a full-time job or five hundred dollars for each qualified employee who
is employed for at least an additional year after the first year of the
employee's employment by the qualified employer in a part-time job of at
least twenty hours per week or ten hours per week when the qualified
employee is enrolled in high school full-time. For purposes of this
subdivision, the term "qualified employee" shall have the same meaning
as set forth in subdivision (b) of section twenty-five-a of the labor
law. The portion of the credit described in subparagraph (i) of this
A. 6009 36
paragraph shall be allowed for the taxable year in which the wages are
paid to the qualified employee, [and] the portion of the credit
described in subparagraph (ii) of this paragraph shall be allowed in the
taxable year in which the additional six month period ends, AND THE
PORTION OF THE CREDIT DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH
SHALL BE ALLOWED IN THE TAXABLE YEAR IN WHICH THE ADDITIONAL YEAR AFTER
THE FIRST YEAR OF EMPLOYMENT ENDS.
S 3. The subdivision heading and paragraph 1 of subsection (tt) of
section 606 of the tax law, the subdivision heading as added by section
3 of part D of chapter 56 of the laws of 2011 and paragraph 1 as amended
by section 2 of part U of chapter 59 of the laws of 2014, are amended to
read as follows:
[New York] URBAN youth [works] JOBS PROGRAM tax credit. (1) A taxpay-
er that has been certified by the commissioner of labor as a qualified
employer pursuant to section twenty-five-a of the labor law shall be
allowed a credit against the tax imposed by this article equal to (A)
five hundred dollars per month for up to six months for each qualified
employee the employer employs in a full-time job or two hundred fifty
dollars per month for up to six months for each qualified employee the
employer employs in a part-time job of at least twenty hours per week or
ten hours per week when the qualified employee is enrolled in high
school full-time, and (B) one thousand dollars for each qualified
employee who is employed for at least an additional six months by the
qualified employer in a full-time job or five hundred dollars for each
qualified employee who is employed for at least an additional six months
by the qualified employer in a part-time job of at least twenty hours
per week or ten hours per week when the qualified employee is enrolled
in high school full-time, and (C) an additional one thousand dollars for
each qualified employee who is employed for at least an additional year
after the first year of the employee's employment by the qualified
employer in a full-time job or five hundred dollars for each qualified
employee who is employed for at least an additional year after the first
year of the employee's employment by the qualified employer in a part-
time job of at least twenty hours per week or ten hours per week when
the qualified employee is enrolled in high school full-time. A taxpayer
that is a partner in a partnership, member of a limited liability compa-
ny or shareholder in an S corporation that has been certified by the
commissioner of labor as a qualified employer pursuant to section twen-
ty-five-a of the labor law shall be allowed its pro rata share of the
credit earned by the partnership, limited liability company or S corpo-
ration. For purposes of this subsection, the term "qualified employee"
shall have the same meaning as set forth in subdivision (b) of section
twenty-five-a of the labor law. The portion of the credit described in
subparagraph (A) of this paragraph shall be allowed for the taxable year
in which the wages are paid to the qualified employee, [and] the portion
of the credit described in subparagraph (B) of this paragraph shall be
allowed in the taxable year in which the additional six month period
ends, AND THE PORTION OF THE CREDIT DESCRIBED IN SUBPARAGRAPH (C) OF
THIS PARAGRAPH SHALL BE ALLOWED IN THE TAXABLE YEAR IN WHICH THE ADDI-
TIONAL YEAR AFTER THE FIRST YEAR OF EMPLOYMENT ENDS.
S 4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of subsection
(i) of section 606 of the tax law, as amended by section 68 of part A of
chapter 59 of the laws of 2014, is amended to read as follows:
(xxxiii) [New York] URBAN youth Amount of credit under
[works] JOBS PROGRAM subdivision thirty-six
A. 6009 37
tax credit of section two hundred ten-B
S 5. This act shall take effect immediately.
PART N
Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 12 of part A of chap-
ter 59 of the laws of 2014, is amended to read as follows:
(iv) (A) for taxable years beginning before January first, two thou-
sand sixteen, if the business income base is not more than two hundred
ninety thousand dollars the amount shall be six and one-half percent of
the business income base; if the business income base is more than two
hundred ninety thousand dollars but not over three hundred ninety thou-
sand dollars the amount shall be the sum of (1) eighteen thousand eight
hundred fifty dollars, (2) seven and one-tenth percent of the excess of
the business income base over two hundred ninety thousand dollars but
not over three hundred ninety thousand dollars and (3) four and thirty-
five hundredths percent of the excess of the business income base over
three hundred fifty thousand dollars but not over three hundred ninety
thousand dollars;
(B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SIXTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, IF THE
BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED NINETY THOUSAND
DOLLARS THE AMOUNT SHALL BE THREE AND ONE-QUARTER PERCENT OF THE BUSI-
NESS INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN TWO HUNDRED
NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND
DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) NINE THOUSAND FOUR HUNDRED
TWENTY FIVE DOLLARS, (2) SIX AND ONE-HALF PERCENT OF THE EXCESS OF THE
BUSINESS INCOME BASE OVER TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT
OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND (3) TWENTY-THREE AND
FIFTY-SIX HUNDREDTHS PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE
OVER THREE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS;
(C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, IF THE
BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED NINETY THOUSAND
DOLLARS THE AMOUNT SHALL BE TWO AND NINE-TENTHS PERCENT OF THE BUSINESS
INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN TWO HUNDRED NINETY
THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS THE
AMOUNT SHALL BE THE SUM OF (1) EIGHT THOUSAND FOUR HUNDRED TEN DOLLARS,
(2) SIX AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE
OVER TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED
NINETY THOUSAND DOLLARS AND (3) TWENTY-SIX AND ONE-TENTH PERCENT OF THE
EXCESS OF THE BUSINESS INCOME BASE OVER THREE HUNDRED FIFTY THOUSAND
DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS;
(D) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND EIGHTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED
NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE TWO AND ONE-HALF PERCENT OF
THE BUSINESS INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN TWO
HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOU-
SAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1) SEVEN THOUSAND TWO
HUNDRED FIFTY DOLLARS, (2) SIX AND ONE-HALF PERCENT OF THE EXCESS OF THE
BUSINESS INCOME BASE OVER TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT
OVER THREE HUNDRED NINETY THOUSAND DOLLARS AND (3) TWENTY-NINE PERCENT
A. 6009 38
OF THE EXCESS OF THE BUSINESS INCOME BASE OVER THREE HUNDRED FIFTY THOU-
SAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS;
S 2. This act shall take effect immediately.
PART O
Section 1. The economic development law is amended by adding a new
article 22 to read as follows:
ARTICLE 22
EMPLOYEE TRAINING INCENTIVE PROGRAM
SECTION 441. DEFINITIONS.
442. ELIGIBILITY CRITERIA.
443. APPLICATION AND APPROVAL PROCESS.
444. POWERS AND DUTIES OF THE COMMISSIONER.
445. RECORDKEEPING REQUIREMENTS.
446. CAP ON TAX CREDIT.
S 441. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "APPROVED PROVIDER" MEANS AN ENTITY MEETING SUCH CRITERIA AS SHALL
BE ESTABLISHED BY THE COMMISSIONER IN REGULATIONS PROMULGATED PURSUANT
TO THIS ARTICLE, THAT MAY PROVIDE ELIGIBLE TRAINING TO EMPLOYEES OF A
BUSINESS ENTITY PARTICIPATING IN THE EMPLOYEE TRAINING INCENTIVE
PROGRAM. SUCH CRITERIA SHALL ENSURE THAT ANY APPROVED PROVIDER POSSESS
ADEQUATE CREDENTIALS TO PROVIDE THE TRAINING DESCRIBED IN AN APPLICATION
BY A BUSINESS ENTITY TO THE COMMISSIONER TO PARTICIPATE IN THE EMPLOYEE
TRAINING INCENTIVE PROGRAM.
2. "COMMISSIONER" MEANS THE COMMISSIONER OF ECONOMIC DEVELOPMENT.
3. "ELIGIBLE TRAINING" MEANS TRAINING PROVIDED BY AN APPROVED PROVIDER
THAT IS:
(A) TO UPGRADE, RETRAIN OR IMPROVE THE PRODUCTIVITY OF EMPLOYEES;
(B) PROVIDED TO EMPLOYEES FILLING NET NEW JOBS, OR TO EXISTING EMPLOY-
EES IN CONNECTION WITH A SIGNIFICANT CAPITAL INVESTMENT BY A PARTICIPAT-
ING BUSINESS ENTITY;
(C) DETERMINED BY THE COMMISSIONER TO SATISFY A BUSINESS NEED ON THE
PART OF A PARTICIPATING BUSINESS ENTITY;
(D) NOT DESIGNED TO TRAIN OR UPGRADE SKILLS AS REQUIRED BY A FEDERAL
OR STATE ENTITY;
(E) NOT TRAINING THE COMPLETION OF WHICH MAY RESULT IN THE AWARDING OF
A LICENSE OR CERTIFICATE REQUIRED BY LAW IN ORDER TO PERFORM A JOB FUNC-
TION; AND
(F) NOT CULTURALLY FOCUSED TRAINING.
4. "NET NEW JOB" MEANS A JOB CREATED IN THIS STATE THAT:
(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, AND HAS NOT BEEN TRANSFERRED FROM EMPLOYMENT WITH A
RELATED PERSON IN THIS STATE;
(C) 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;
(D) IS FILLED FOR MORE THAN SIX MONTHS;
(E) IS FILLED BY A PERSON WHO HAS RECEIVED ELIGIBLE TRAINING; AND
A. 6009 39
(F) IS COMPRISED OF TASKS THE PERFORMANCE OF WHICH REQUIRED THE PERSON
FILLING THE JOB TO UNDERGO ELIGIBLE TRAINING.
5. "SIGNIFICANT CAPITAL INVESTMENT" MEANS A CAPITAL INVESTMENT OF AT
LEAST ONE MILLION DOLLARS IN NEW BUSINESS PROCESSES OR EQUIPMENT.
6. "STRATEGIC INDUSTRY" MEANS AN INDUSTRY IN THIS STATE, AS ESTAB-
LISHED BY THE COMMISSIONER IN REGULATIONS PROMULGATED PURSUANT TO THIS
ARTICLE, BASED UPON THE FOLLOWING CRITERIA:
(A) SHORTAGES OF WORKERS TRAINED TO WORK WITHIN THE INDUSTRY;
(B) TECHNOLOGICAL DISRUPTION IN THE INDUSTRY, REQUIRING SIGNIFICANT
CAPITAL INVESTMENT FOR EXISTING BUSINESSES TO REMAIN COMPETITIVE;
(C) THE ABILITY OF BUSINESSES IN THE INDUSTRY TO RELOCATE OUTSIDE OF
THE STATE IN ORDER TO ATTRACT TALENT;
(D) THE POTENTIAL TO RECRUIT MINORITIES OR WOMEN TO BE TRAINED TO WORK
IN THE INDUSTRY IN WHICH THEY ARE TRADITIONALLY UNDERREPRESENTED;
(E) THE POTENTIAL TO CREATE JOBS IN ECONOMICALLY DISTRESSED AREAS,
WHICH SHALL BE BASED ON CRITERIA INDICATIVE OF ECONOMIC DISTRESS,
INCLUDING POVERTY RATES, NUMBERS OF PERSONS RECEIVING PUBLIC ASSISTANCE,
AND UNEMPLOYMENT RATES; AND
(F) SUCH OTHER CRITERIA AS SHALL BE DEVELOPED BY THE COMMISSIONER IN
CONSULTATION WITH THE COMMISSIONER OF LABOR.
S 442. ELIGIBILITY CRITERIA. 1. IN ORDER TO PARTICIPATE IN THE EMPLOY-
EE TRAINING INCENTIVE PROGRAM, A BUSINESS ENTITY MUST SATISFY ALL OF THE
FOLLOWING CRITERIA:
(A) THE BUSINESS ENTITY MUST OPERATE IN THE STATE PREDOMINANTLY IN A
STRATEGIC INDUSTRY;
(B) THE BUSINESS ENTITY MUST DEMONSTRATE THAT IT IS OBTAINING ELIGIBLE
TRAINING FROM AN APPROVED PROVIDER;
(C) THE BUSINESS ENTITY MUST CREATE AT LEAST TEN NET NEW JOBS OR MAKE
A SIGNIFICANT CAPITAL INVESTMENT IN CONNECTION WITH THE ELIGIBLE TRAIN-
ING; AND
(D) THE BUSINESS ENTITY MUST BE IN COMPLIANCE WITH ALL WORKER
PROTECTION AND ENVIRONMENTAL LAWS AND REGULATIONS. IN ADDITION, THE
BUSINESS ENTITY MAY NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY
TAXES.
S 443. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST
SUBMIT A COMPLETED APPLICATION IN SUCH FORM AND WITH SUCH INFORMATION AS
PRESCRIBED BY THE COMMISSIONER.
2. AS PART OF SUCH APPLICATION, EACH BUSINESS ENTITY MUST:
(A) PROVIDE SUCH DOCUMENTATION AS THE COMMISSIONER MAY REQUIRE IN
ORDER FOR THE COMMISSIONER TO DETERMINE THAT THE BUSINESS ENTITY INTENDS
TO PROCURE ELIGIBLE TRAINING FOR ITS EMPLOYEES FROM AN APPROVED PROVID-
ER;
(B) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS
A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(C) AGREE TO ALLOW THE DEPARTMENT OF LABOR TO SHARE ITS TAX AND
EMPLOYER INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION
SHARED AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLO-
SURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW;
(D) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE;
(E) PROVIDE A CLEAR AND DETAILED PRESENTATION OF ALL RELATED PERSONS
TO THE APPLICANT TO ASSURE THE DEPARTMENT THAT JOBS ARE NOT BEING SHIFT-
ED WITHIN THE STATE; AND
A. 6009 40
(F) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT IS IN SUBSTANTIAL
COMPLIANCE WITH ALL ENVIRONMENTAL, WORKER PROTECTION, AND LOCAL, STATE,
AND FEDERAL TAX LAWS.
3. THE COMMISSIONER MAY APPROVE AN APPLICATION FROM A BUSINESS ENTITY
UPON DETERMINING THAT SUCH BUSINESS ENTITY MEETS THE ELIGIBILITY CRITE-
RIA ESTABLISHED IN SECTION FOUR HUNDRED FORTY-TWO OF THIS ARTICLE.
FOLLOWING APPROVAL BY THE COMMISSIONER OF AN APPLICATION BY A BUSINESS
ENTITY TO PARTICIPATE IN THE EMPLOYEE TRAINING INCENTIVE PROGRAM, THE
COMMISSIONER SHALL ISSUE A CERTIFICATE OF TAX CREDIT TO THE BUSINESS
ENTITY UPON ITS DEMONSTRATING SUCCESSFUL COMPLETION OF SUCH ELIGIBLE
TRAINING TO THE SATISFACTION OF THE COMMISSIONER. THE AMOUNT OF THE
CREDIT SHALL BE EQUAL TO FIFTY PERCENT OF ELIGIBLE TRAINING COSTS, UP TO
TEN THOUSAND DOLLARS PER EMPLOYEE RECEIVING ELIGIBLE TRAINING. THE TAX
CREDITS SHALL BE CLAIMED BY THE QUALIFIED EMPLOYER AS SPECIFIED IN
SUBDIVISION FIFTY OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (DDD) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW.
S 444. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER
SHALL, IN CONSULTATION WITH THE COMMISSIONER OF LABOR, PROMULGATE REGU-
LATIONS CONSISTENT WITH THE PURPOSES OF THIS ARTICLE THAT, NOTWITHSTAND-
ING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE
ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS. SUCH REGULATIONS SHALL
INCLUDE, BUT NOT BE LIMITED TO, ELIGIBILITY CRITERIA FOR BUSINESS ENTI-
TIES DESIRING TO PARTICIPATE IN THE EMPLOYEE TRAINING INCENTIVE PROGRAM,
PROCEDURES FOR THE RECEIPT AND EVALUATION OF APPLICATIONS FROM BUSINESS
ENTITIES TO PARTICIPATE IN THE PROGRAM, AND SUCH OTHER PROVISIONS AS THE
COMMISSIONER DEEMS TO BE APPROPRIATE IN ORDER TO IMPLEMENT THE
PROVISIONS OF THIS ARTICLE.
2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE
ISSUED BY THE COMMISSIONER TO PARTICIPATING BUSINESS ENTITIES. PARTIC-
IPANTS MAY BE REQUIRED BY THE COMMISSIONER OF TAXATION AND FINANCE TO
INCLUDE THE CERTIFICATE OF TAX CREDIT WITH THEIR TAX RETURN TO RECEIVE
ANY TAX BENEFITS UNDER THIS ARTICLE.
3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY
APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY
PARTICIPANT FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS
SET FORTH IN SUBDIVISION ONE OF SECTION FOUR HUNDRED FORTY-TWO OF THIS
ARTICLE OR FOR MAKING A MATERIAL MISREPRESENTATION WITH RESPECT TO ITS
PARTICIPATION IN THE EMPLOYEE TRAINING INCENTIVE PROGRAM.
S 445. RECORDKEEPING REQUIREMENTS. EACH BUSINESS ENTITY PARTICIPATING
IN THE EMPLOYEE TRAINING INCENTIVE PROGRAM SHALL MAINTAIN ALL RELEVANT
RECORDS FOR THE DURATION OF ITS PROGRAM PARTICIPATION PLUS THREE YEARS.
S 446. CAP ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER FOR ANY TAXABLE
YEAR MAY NOT EXCEED FIVE MILLION DOLLARS, AND SHALL BE ALLOTTED FROM THE
FUNDS AVAILABLE FOR TAX CREDITS UNDER THE EXCELSIOR JOBS PROGRAM ACT
PURSUANT TO SECTION THREE HUNDRED FIFTY-NINE OF THIS CHAPTER.
S 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 50 to read as follows:
50. EMPLOYEE TRAINING INCENTIVE PROGRAM TAX CREDIT. (A) A TAXPAYER
THAT HAS BEEN APPROVED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT TO
PARTICIPATE IN THE EMPLOYEE TRAINING INCENTIVE PROGRAM AND HAS BEEN
ISSUED A CERTIFICATE OF TAX CREDIT PURSUANT TO SECTION FOUR HUNDRED
FORTY-THREE OF THE ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED TO CLAIM A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE CREDIT SHALL EQUAL
FIFTY PERCENT OF A TAXPAYER'S ELIGIBLE TRAINING COSTS, UP TO TEN THOU-
A. 6009 41
SAND DOLLARS PER EMPLOYEE RECEIVING ELIGIBLE TRAINING. IN NO EVENT SHALL
A TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF CREDIT LISTED
ON THE CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC
DEVELOPMENT. THE CREDIT WILL BE ALLOWED IN THE TAXABLE YEAR IN WHICH THE
ELIGIBLE TRAINING FOR ALL EMPLOYEES IS COMPLETED.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY
NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED
IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, OR IF THE
TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
ANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS
CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION
ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST
WILL BE PAID THEREON.
(C) THE TAXPAYER MAY BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS
CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT PURSUANT TO SECTION FOUR HUNDRED FORTY-THREE OF THE ECONOMIC
DEVELOPMENT LAW. IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT
GREATER THAN THE AMOUNT OF THE CREDIT LISTED IN THE CERTIFICATE OF TAX
CREDIT, OR IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP
OR A MEMBER OF A LIMITED LIABILITY COMPANY, ITS PRO RATA SHARE OF THE
AMOUNT OF CREDIT LISTED IN THE CERTIFICATE OF TAX CREDIT ISSUED TO THE
PARTNERSHIP OR LIMITED LIABILITY COMPANY.
S 3. Section 606 of the tax law is amended to add a new subsection
(ddd) to read as follows:
(DDD) EMPLOYEE TRAINING INCENTIVE PROGRAM TAX CREDIT. (1) A TAXPAYER
THAT HAS BEEN APPROVED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT TO
PARTICIPATE IN THE EMPLOYEE TRAINING INCENTIVE PROGRAM AND HAS BEEN
ISSUED A CERTIFICATE OF TAX CREDIT PURSUANT TO SECTION FOUR HUNDRED
FORTY-THREE OF THE ECONOMIC DEVELOPMENT LAW SHALL BE ALLOWED TO CLAIM A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE CREDIT SHALL EQUAL
FIFTY PERCENT OF A TAXPAYER'S ELIGIBLE TRAINING COSTS, UP TO TEN THOU-
SAND DOLLARS PER EMPLOYEE RECEIVING ELIGIBLE TRAINING. IN NO EVENT SHALL
A TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT LISTED ON THE
CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF ECONOMIC DEVEL-
OPMENT. IN THE CASE OF A TAXPAYER WHO IS A PARTNER IN A PARTNERSHIP,
MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPO-
RATION, THE TAXPAYER SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT
EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR S CORPORATION.
THE CREDIT WILL BE ALLOWED IN THE TAXABLE YEAR IN WHICH THE ELIGIBLE
TRAINING FOR ALL EMPLOYEES IS COMPLETED.
(2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON.
S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xlii) to read as
follows:
(XLII) EMPLOYEE TRAINING INCENTIVE AMOUNT OF CREDIT UNDER
PROGRAM CREDIT UNDER SUBDIVISION FIFTY OF
SUBSECTION (DDD) SECTION TWO HUNDRED TEN-B
A. 6009 42
S 5. This act shall take effect immediately and apply to taxable years
beginning on or after January 1, 2015.
PART P
Section 1. Subdivision 1 of section 184 of the tax law, as amended by
section 62 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
1. The term "corporation" as used in this section shall include an
association, within the meaning of paragraph three of subsection (a) of
section seventy-seven hundred one of the internal revenue code (includ-
ing a limited liability company), a publicly traded partnership treated
as a corporation for purposes of the internal revenue code pursuant to
section seventy-seven hundred four thereof.
Every corporation, joint-stock company or association formed for or
principally engaged in the conduct of canal, steamboat, ferry (except a
ferry company operating between any of the boroughs of the city of New
York under a lease granted by the city), express, navigation, pipe line,
transfer, baggage express, omnibus, taxicab, telegraph, MOBILE TELECOM-
MUNICATIONS or local telephone business, or formed for or principally
engaged in the conduct of two or more of such businesses, and every
corporation, joint-stock company or association formed for or principal-
ly engaged in the conduct of surface railroad, whether or not operated
by steam, subway railroad, elevated railroad, palace car, sleeping car
or trucking business or formed for or principally engaged in the conduct
of two or more such businesses and which has made an election pursuant
to subdivision ten of section one hundred eighty-three of this article,
and every other corporation, joint-stock company or association formed
for or principally engaged in the conduct of a transportation or trans-
mission business (other than a telephone business), except a corpo-
ration, joint-stock company or association formed for or principally
engaged in the conduct of a surface railroad, whether or not operated by
steam, subway railroad, elevated railroad, palace car, sleeping car or
trucking business or formed for or principally engaged in the conduct of
two or more of such businesses and which has not made the election
provided for in subdivision ten of section one hundred eighty-three of
this article, and, except a corporation, joint-stock company or associ-
ation principally engaged in the conduct of aviation (including air
freight forwarders acting as principal and like indirect air carriers)
and except a corporation principally engaged in providing telecommuni-
cation services between aircraft and dispatcher, aircraft and air traf-
fic control or ground station and ground station (or any combination of
the foregoing), at least ninety percent of the voting stock of which
corporation is owned, directly or indirectly, by air carriers and which
corporation's principal function is to fulfill the requirements of (i)
the federal aviation administration (or the successor thereto) or (ii)
the international civil aviation organization (or the successor there-
to), relating to the existence of a communication system between
aircraft and dispatcher, aircraft and air traffic control or ground
station and ground station (or any combination of the foregoing) for the
purposes of air safety and navigation and for the privilege of exercis-
ing its corporate franchise, or of doing business, or of employing capi-
tal, or of owning or leasing property in this state in a corporate or
organized capacity, or maintaining an office in this state, shall pay a
franchise tax which shall be equal to three-eighths of one percent for
taxable years commencing after two thousand, upon its gross earnings
A. 6009 43
from all sources within this state; except that, for taxable years
commencing on or after January first, nineteen hundred ninety, every
corporation, joint-stock company or association formed for or principal-
ly engaged in the conduct of A MOBILE TELECOMMUNICATIONS BUSINESS, local
telephone business, or telegraph business shall pay a franchise tax
which shall be equal to three-eighths of one percent for taxable years
commencing after two thousand, upon its gross earnings from all sources
within this state, except that a corporation, joint-stock company or
association formed for or principally engaged in the conduct of a local
telephone business shall exclude the following earnings (but not in any
event earnings derived by such taxpayer from the provision of carrier
access services) derived by such taxpayer from sales for ultimate
consumption of telecommunications service to its customers (i) thirty
percent of separately charged intra-LATA toll service (which shall also
include interregion regional calling plan service) and (ii) one hundred
percent of separately charged inter-LATA, interstate or international
telecommunications service; and except that corporations, joint-stock
companies or associations formed for or principally engaged in the
conduct of canal, steamboat, ferry (except a ferry company operating
between any of the boroughs of the city of New York under a lease grant-
ed by the city), navigation or any corporation formed for or principally
engaged in the operation of vessels, shall pay a franchise tax which
shall be equal to three-quarters of one per centum upon its gross earn-
ings from all sources within this state, excluding earnings derived from
business of an interstate or foreign character; except that for taxable
years beginning in nineteen hundred ninety-seven or thereafter, in the
case of a corporation, joint-stock company or association which, with
respect to taxable years beginning after nineteen hundred ninety-seven,
has made an election pursuant to subdivision ten of section one hundred
eighty-three of this article and which is formed for or principally
engaged in the conduct of surface railroad, whether or not operated by
steam, subway railroad, elevated railroad, palace car, sleeping car or
trucking business or formed for or principally engaged in the conduct of
two or more of such businesses, such corporation, joint-stock company or
association shall pay a franchise tax which shall be equal to three-
eighths of one percent for taxable years commencing after two thousand,
upon its gross earnings from all sources within this state, provided
that in the case of a corporation, joint-stock company or association
formed for or principally engaged in the conduct of surface railroad,
whether or not operated by steam, subway railroad, elevated railroad,
palace car or sleeping car business, or formed for or principally
engaged in the conduct of two or more of such businesses, such gross
earnings shall not include earnings derived from business of an inter-
state or foreign character.
Provided, however, with respect to railroad, elevated railroad, palace
car or sleeping car business or any other corporation formed for or
principally engaged in the conduct of a railroad business and canal,
steamboat, ferry (except a ferry company operating between any of the
boroughs of the city of New York under a lease granted by the city),
navigation or any corporation formed for or principally engaged in the
operation of vessels where the gross earnings from such transportation
business both originating and terminating within this state and travers-
ing both this state and another state or states or country shall be
subject to the franchise tax imposed by this section (except where such
corporation, joint-stock company or association is formed for or princi-
pally engaged in the conduct of a railroad (including surface railroad,
A. 6009 44
whether or not operated by steam, subway railroad or elevated railroad),
palace car or sleeping car business or formed for or principally engaged
in the conduct of two or more of such businesses, and has not made the
election provided for under subdivision ten of section one hundred
eighty-three of this article) and such earnings shall be allocated to
this state in the same ratio that the mileage within the state bears to
the total mileage of such business. Provided, further, a corporation,
joint-stock company or association formed for or principally engaged in
the transportation, transmission or distribution of gas, electricity or
steam shall not be subject to tax under this section or section one
hundred eighty-three of this article.
The term "local telephone business" means the provision or furnishing
of telecommunication services for hire wherein the service furnished by
the provider thereof consists of carrier access service or the service
originates and terminates within the same local access and transport
area ("LATA"), a local access and transport area being that geographic
area as established and approved, and as so set and in existence on July
first, nineteen hundred ninety-four, pursuant to the modification of
final judgment in United States v. Western Electric Company (civil
action no. 82-0192) in the United States district court for the District
of Columbia or within the LATA-like Rochester non-associated independent
area.
THE TERM "MOBILE TELECOMMUNICATIONS BUSINESS" MEANS THE PROVISION OR
FURNISHING OF "MOBILE TELECOMMUNICATIONS SERVICE" AS SUCH TERM IS
DEFINED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION (B) OF SECTION ELEVEN
HUNDRED ONE OF THIS CHAPTER.
The term "telecommunication services" shall have the meaning ascribed
to such term in section one hundred eighty-six-e of this article.
S 2. Subdivision 1 of section 184-a of the tax law, as amended by
section 2 of part C of chapter 60 of the laws of 2004, the opening para-
graph as amended by section 63 of part A of chapter 59 of the laws of
2014, is amended to read as follows:
1. The term "corporation" as used in this section shall include an
association, within the meaning of paragraph three of subsection (a) of
section seventy-seven hundred one of the internal revenue code (includ-
ing a limited liability company), and a publicly traded partnership
treated as a corporation for purposes of the internal revenue code
pursuant to section seventy-seven hundred four thereof. Every corpo-
ration, joint-stock company or association formed for or principally
engaged in the conduct of canal, steamboat, ferry (except a ferry compa-
ny operating between any of the boroughs of the city of New York under a
lease granted by the city), express, navigation, pipe line, transfer,
baggage express, omnibus, taxicab, telegraph, MOBILE TELECOMMUNICATIONS
or local telephone business, or formed for or principally engaged in the
conduct of two or more such businesses, and every corporation, joint-
stock company or association formed for or principally engaged in the
conduct of a surface railroad, whether or not operated by steam, subway
railroad, elevated railroad, palace car, sleeping car or trucking busi-
ness or principally engaged in the conduct of two or more such busi-
nesses and which has made an election pursuant to subdivision ten of
section one hundred eighty-three of this article, and every other corpo-
ration, joint-stock company or association formed for or principally
engaged in the conduct of a transportation or transmission business
(other than a telephone business) except a corporation, joint-stock
company or association formed for or principally engaged in the conduct
of a surface railroad, whether or not operated by steam, subway rail-
A. 6009 45
road, elevated railroad, palace car, sleeping car or trucking business
or principally engaged in the conduct of two or more such businesses and
which has not made the election provided for in subdivision ten of
section one hundred eighty-three of this article, and except a corpo-
ration, joint-stock company or association principally engaged in the
conduct of aviation (including air freight forwarders acting as princi-
pal and like indirect air carriers) and except a corporation principally
engaged in providing telecommunication services between aircraft and
dispatcher, aircraft and air traffic control or ground station and
ground station (or any combination of the foregoing), at least ninety
percent of the voting stock of which corporation is owned, directly or
indirectly, by air carriers and which corporation's principal function
is to fulfill the requirements of (i) the federal aviation adminis-
tration (or the successor thereto) or (ii) the international civil
aviation organization (or the successor thereto), relating to the exist-
ence of a communication system between aircraft and dispatcher, aircraft
and air traffic control or ground station and ground station (or any
combination of the foregoing) for the purposes of air safety and naviga-
tion, shall pay for the privilege of exercising its corporate franchise,
or of doing business, or of employing capital, or of owning or leasing
property in the metropolitan commuter transportation district in such
corporate or organized capacity, or of maintaining an office in such
district, a tax surcharge, which tax surcharge, in addition to the tax
imposed by section one hundred eighty-four of this article, shall be
computed at the rate of seventeen percent of the tax imposed under such
section for such taxable years or any part of such taxable years after
the deduction of any credits otherwise allowable under this article;
provided, however, that such rates of tax surcharge shall be applied
only to that portion of the tax imposed under section one hundred eight-
y-four of this article after the deduction of any credits otherwise
allowable under this article which is attributable to the taxpayer's
business activity carried on within the metropolitan commuter transpor-
tation district. Provided, however, that for taxable years beginning in
two thousand and thereafter, for purposes of this subdivision the tax
imposed under section one hundred eighty-four of this article shall be
deemed to have been imposed at the rate of three-quarters of one
percent, except that in the case of a corporation, joint-stock company
or association which has made an election pursuant to subdivision ten of
section one hundred eighty-three of this article, for purposes of this
subdivision the tax imposed under section one hundred eighty-four of
this article shall be deemed to have been imposed at the rate of six-
tenths of one percent.
The term "local telephone business" shall have the same meaning as
such term is used in section one hundred eighty-four of this article.
The term "telecommunication services" shall have the meaning ascribed to
such term in section one hundred eighty-six-e of this article.
THE TERM "MOBILE TELECOMMUNICATIONS BUSINESS" MEANS THE PROVISION OR
FURNISHING OF "MOBILE TELECOMMUNICATIONS SERVICE" AS SUCH TERM IS
DEFINED IN PARAGRAPH TWENTY-FOUR OF SUBDIVISION (B) OF SECTION ELEVEN
HUNDRED ONE OF THIS CHAPTER.
S 3. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2015.
PART Q
A. 6009 46
Section 1. The tax law is amended by adding a new section 195 to read
as follows:
S 195. LIMITATION ON REFUNDS OR CREDITS. WHERE ANY PERSON SUBJECT TO
TAX UNDER THIS ARTICLE PASSES THROUGH THE ECONOMIC INCIDENCE OF ANY TAX
IMPOSED BY THIS ARTICLE AS A SEPARATELY STATED AMOUNT ON A BILL OR
INVOICE FURNISHED TO ITS CUSTOMER, NO REFUND OR CREDIT SHALL BE MADE TO
SUCH PERSON OF ANY SUCH AMOUNT UNLESS SUCH PERSON SHALL FIRST ESTABLISH
TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH AMOUNT HAD BEEN REPAID
TO SUCH CUSTOMER. FOR PURPOSES OF THIS SECTION, THE TERM "PERSON" SHALL
HAVE THE SAME MEANING THAT IS ASCRIBED TO IT IN PARAGRAPH (C) OF SUBDI-
VISION ONE OF SECTION ONE HUNDRED EIGHTY-SIX-E OF THIS ARTICLE.
S 2. This act shall take effect immediately and shall apply to any
amended return or claim for refund submitted on and after January 1,
2015.
PART R
Section 1. Section 31 of part H of chapter 1 of the laws of 2003,
amending the tax law relating to brownfield redevelopment tax credits,
remediated brownfield credit for real property taxes for qualified sites
and environmental remediation insurance credits, as amended by chapter
474 of the laws of 2012, is amended to read as follows:
S 31. The tax credits allowed under section 21, 22 or 23 of the tax
law and the corresponding provisions in articles 9, 9-A, 22, 32 and 33
of the tax law, as added by the provisions of sections one through twen-
ty-nine of this act, shall not be applicable if the [remediation]
certificate OF COMPLETION required to qualify for any of such credits is
issued after [December 31, 2015] MARCH 31, 2025.
S 2. Subdivisions 1 and 3 of section 1285-q of the public authorities
law, as added by section 6 of part I of chapter 1 of the laws of 2003,
are amended to read as follows:
1. Subject to chapter fifty-nine of the laws of two thousand, but
notwithstanding any other provisions of law to the contrary, in order to
assist the corporation in undertaking the administration and the financ-
ing of hazardous waste site remediation projects for payment of the
state's share of the costs of the remediation of hazardous waste sites,
in accordance with title thirteen of article twenty-seven of the envi-
ronmental conservation law and section ninety-seven-b of the state
finance law, and for payment of state costs associated with the remedi-
ation of offsite contamination at significant threat sites as provided
in section 27-1411 of the environmental conservation law, AND BEGINNING
IN STATE FISCAL YEAR TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN, FOR
ENVIRONMENTAL RESTORATION PROJECTS PURSUANT TO TITLE FIVE OF ARTICLE
FIFTY-SIX OF THE ENVIRONMENTAL CONSERVATION LAW PROVIDED THAT FUNDING
FOR SUCH PROJECT SHALL NOT EXCEED TEN PERCENT OF THE FUNDING APPROPRI-
ATED FOR THE PURPOSES OF FINANCING HAZARDOUS WASTE SITE REMEDIATION
PROJECTS, PURSUANT TO TITLE THIRTEEN OF ARTICLE TWENTY-SEVEN OF THE
ENVIRONMENTAL CONSERVATION LAW, IN ANY STATE FISCAL YEAR pursuant to
capital appropriations made to the department of environmental conserva-
tion, the director of the division of budget and the corporation are
each authorized to enter into one or more service contracts, none of
which shall exceed twenty years in duration, upon such terms and condi-
tions as the director and the corporation may agree, so as to annually
provide to the corporation in the aggregate, a sum not to exceed the
annual debt service payments and related expenses required for any bonds
and notes authorized pursuant to section twelve hundred ninety of this
A. 6009 47
title. Any service contract entered into pursuant to this section shall
provide that the obligation of the state to fund or to pay the amounts
therein provided for shall not constitute a debt of the state within the
meaning of any constitutional or statutory provision and shall be deemed
executory only to the extent of moneys available for such purposes,
subject to annual appropriation by the legislature. Any such service
contract or any payments made or to be made thereunder may be assigned
and pledged by the corporation as security for its bonds and notes, as
authorized pursuant to section twelve hundred ninety of this title.
3. The maximum amount of bonds that may be issued for the purpose of
financing hazardous waste site remediation projects AND ENVIRONMENTAL
RESTORATION PROJECTS authorized by this section shall not exceed [one]
TWO billion two hundred million dollars and shall not exceed one hundred
[twenty] million dollars for appropriations enacted for any state fiscal
year, provided that the bonds not issued for such appropriations may be
issued pursuant to reappropriation in subsequent fiscal years. No bonds
shall be issued for the repayment of any new appropriation enacted after
March thirty-first, two thousand [thirteen] TWENTY-FIVE for hazardous
waste site remediation projects authorized by this section. Amounts
authorized to be issued by this section shall be exclusive of bonds
issued to fund any debt service reserve funds, pay costs of issuance of
such bonds, and bonds or notes issued to refund or otherwise repay bonds
or notes previously issued. Such bonds and notes of the corporation
shall not be a debt of the state, and the state shall not be liable
thereon, nor shall they be payable out of any funds other than those
appropriated by this state to the corporation for debt service and
related expenses pursuant to any service contracts executed pursuant to
subdivision one of this section, and such bonds and notes shall contain
on the face thereof a statement to such effect.
S 3. Section 56-0501 of the environmental conservation law, as added
by chapter 413 of the laws of 1996, is amended to read as follows:
S 56-0501. Allocation of moneys.
1. Of the moneys received by the state from the sale of bonds pursuant
to the Clean Water/Clean Air Bond Act of 1996, two hundred million
dollars ($200,000,000) shall be available for disbursements for environ-
mental restoration projects.
2. BEGINNING IN STATE FISCAL YEAR TWO THOUSAND FIFTEEN--TWO THOUSAND
SIXTEEN ENVIRONMENTAL RESTORATION PROJECTS MAY BE FUNDED USING THE
PROCEEDS OF BONDS ISSUED PURSUANT TO SECTION TWELVE HUNDRED
EIGHTY-FIVE-Q OF THE PUBLIC AUTHORITIES LAW PROVIDED THAT FUNDING FOR
SUCH PROJECTS SHALL CONFORM TO THE LIMITATIONS PROVIDED IN SUBDIVISION
ONE OF SUCH SECTION.
S 4. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2015.
PART S
Section 1. Paragraph (r) of section 104-A of the business corporation
law, as amended by chapter 172 of the laws of 2000, is amended to read
as follows:
(r) For filing a statement or amendment pursuant to section four
hundred eight of this chapter WITH THE DEPARTMENT OF STATE, nine
dollars.
S 2. Paragraphs (b) and (c) of section 306-A of the business corpo-
ration law, as added by chapter 469 of the laws of 1997, are amended to
read as follows:
A. 6009 48
(b) Upon the failure of the designating corporation to file a certif-
icate of amendment or change providing for the designation by the corpo-
ration of the new address after the filing of a certificate of resigna-
tion for receipt of process with the secretary of state, its authority
to do business in this state shall be suspended unless the corporation
has previously filed a statement [of addresses and directors] under
section four hundred eight of this chapter, IN WHICH CASE the address of
the principal executive office stated in the last filed statement [of
addresses and directors], shall constitute the new address for process
of the corporation PROVIDED SUCH ADDRESS IS DIFFERENT FROM THE PREVIOUS
ADDRESS FOR PROCESS, and the corporation shall not be deemed suspended.
(c) The filing by the department of state of a certificate of amend-
ment or change OR STATEMENT UNDER SECTION FOUR HUNDRED EIGHT OF THIS
CHAPTER providing for a new address by a designating corporation shall
annul the suspension and its authority to do business in this state
shall be restored and continue as if no suspension had occurred.
S 3. Section 408 of the business corporation law, as added by chapter
55 of the laws of 1992, the section heading as amended by chapter 375 of
the laws of 1998, subparagraph (a) of paragraph 1 and paragraph 2 as
amended by chapter 172 of the laws of 1999, subparagraph (b) of para-
graph 3 as amended by chapter 170 of the laws of 1994, paragraph 6 as
added by chapter 469 of the laws of 1997, and paragraph 7 as added by
chapter 172 of the laws of 2000, is amended to read as follows:
S 408. [Biennial statement] STATEMENT; filing.
1. [Each] EXCEPT AS PROVIDED IN PARAGRAPH EIGHT OF THIS SECTION, EACH
domestic corporation, and each foreign corporation authorized to do
business in this state, shall, during the applicable filing period as
determined by subdivision three of this section, file a statement
setting forth:
(a) The name and business address of its chief executive officer.
(b) The street address of its principal executive office.
(c) The post office address within or without this state to which the
secretary of state shall mail a copy of any process against it served
upon him or her. Such address shall supersede any previous address on
file with the department of state for this purpose.
2. [Such] EXCEPT AS PROVIDED IN PARAGRAPH EIGHT OF THIS SECTION, SUCH
statement shall be made on forms prescribed by the secretary of state,
and the information therein contained shall be given as of the date of
the execution of the statement. Such statement shall only request
reporting of information required under paragraph one of this section.
It shall be signed and delivered to the department of state.
3. [For] EXCEPT AS PROVIDED IN PARAGRAPH EIGHT OF THIS SECTION, FOR
the purpose of this section the applicable filing period for a corpo-
ration shall be the calendar month during which its original certificate
of incorporation or application for authority were filed or the effec-
tive date thereof if stated. The applicable filing period shall only
occur: (a) annually, during the period starting on April 1, 1992 and
ending on March 31, 1994; and (b) biennially, during a period starting
on April 1 and ending on March 31 thereafter. Those corporations that
filed between April 1, 1992 and June 30, 1994 shall not be required to
file such statements again until such time as they would have filed, had
this subdivision not been amended.
4. The provisions of [subdivision eleven of section ninety-six of the
executive law and] paragraph (g) of section one hundred four of this
chapter shall not be applicable to filings pursuant to this section.
A. 6009 49
5. The provisions of this section and section 409 of this article
shall not apply to a farm corporation. For the purposes of this subdivi-
sion, the term "farm corporation" shall mean any domestic corporation or
foreign corporation authorized to do business in this state under this
chapter engaged in the production of crops, livestock and livestock
products on land used in agricultural production, as defined in section
301 of the agriculture and markets law. HOWEVER, THIS EXCEPTION FOR FARM
CORPORATIONS SHALL NOT BE APPLICABLE IF AN AGREEMENT IS MADE PURSUANT TO
PARAGRAPH EIGHT OF THIS SECTION SO THAT THESE STATEMENTS WILL BE FILED
WITH THE DEPARTMENT OF TAXATION AND FINANCE.
6. No such statement shall be accepted for filing when a certificate
of resignation for receipt of process has been filed under section three
hundred six-A of this chapter unless the corporation has stated a
different address for process which does not include the name of the
party previously designated in the address for process in such certif-
icate.
7. A domestic corporation or foreign corporation may amend its state-
ment to change the information required by [subdivisions] SUBPARAGRAPHS
(a) and (b) of paragraph one of this section. Such amendment shall be
made on forms prescribed by the secretary of state. It shall be signed
and delivered to the department of state.
8. (A) THE COMMISSIONER OF TAXATION AND FINANCE AND THE SECRETARY OF
STATE MAY AGREE TO ALLOW CORPORATIONS TO PROVIDE THE STATEMENT SPECIFIED
IN PARAGRAPH ONE OF THIS SECTION ON TAX REPORTS FILED WITH THE DEPART-
MENT OF TAXATION AND FINANCE IN LIEU OF BIENNIAL REPORTS. THIS AGREEMENT
MAY APPLY TO TAX REPORTS DUE FOR TAX YEARS STARTING ON OR AFTER JANUARY
FIRST, TWO THOUSAND SIXTEEN.
(B) IF THE AGREEMENT DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH
IS MADE, EACH CORPORATION REQUIRED TO FILE THE STATEMENT SPECIFIED IN
PARAGRAPH ONE OF THIS SECTION THAT IS ALSO SUBJECT TO TAX UNDER ARTICLE
NINE OR NINE-A OF THE TAX LAW SHALL INCLUDE SUCH STATEMENT ANNUALLY ON
ITS TAX REPORT FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU
OF FILING A STATEMENT UNDER THIS SECTION WITH THE DEPARTMENT OF STATE
AND IN A MANNER PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE.
HOWEVER, EACH CORPORATION REQUIRED TO FILE A STATEMENT UNDER THIS
SECTION MUST CONTINUE TO FILE THE BIENNIAL STATEMENT REQUIRED BY THIS
SECTION WITH THE DEPARTMENT OF STATE UNTIL THE CORPORATION IN FACT HAS
FILED A TAX REPORT WITH THE DEPARTMENT OF TAXATION AND FINANCE THAT
INCLUDES ALL REQUIRED INFORMATION. AFTER THAT TIME, THE CORPORATION
SHALL CONTINUE TO DELIVER ANNUALLY THE STATEMENT SPECIFIED IN PARAGRAPH
ONE OF THIS SECTION ON ITS TAX REPORT IN LIEU OF THE BIENNIAL STATEMENT
REQUIRED BY THIS SECTION.
(C) IF THE AGREEMENT DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH
IS MADE, THE DEPARTMENT OF TAXATION AND FINANCE SHALL DELIVER TO THE
DEPARTMENT OF STATE FOR FILING THE STATEMENT SPECIFIED IN PARAGRAPH ONE
OF THIS SECTION FOR EACH CORPORATION THAT FILES A TAX REPORT CONTAINING
SUCH STATEMENT. THE DEPARTMENT OF TAXATION AND FINANCE MUST, TO THE
EXTENT FEASIBLE, ALSO INCLUDE THE CURRENT NAME OF THE CORPORATION,
DEPARTMENT OF STATE IDENTIFICATION NUMBER FOR SUCH CORPORATION, THE
NAME, SIGNATURE AND CAPACITY OF THE SIGNER OF THE STATEMENT, NAME AND
STREET ADDRESS OF THE FILER OF THE STATEMENT, AND THE EMAIL ADDRESS, IF
ANY, OF THE FILER OF THE STATEMENT.
S 4. Section 409 of the business corporation law is amended by adding
a new paragraph 4 to read as follows:
A. 6009 50
4. THIS SECTION SHALL NOT APPLY TO A FAILURE TO FILE A STATEMENT FOR
ANY SITUATION FOR WHICH A PENALTY UNDER SUBDIVISION (V) OF SECTION ONE
THOUSAND EIGHTY-FIVE OF THE TAX LAW IS APPLICABLE.
S 5. Subdivision (e) of section 301 of the limited liability company
law, as amended by chapter 643 of the laws of 1995, is amended to read
as follows:
(e) [Every] (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION,
EVERY limited liability company to which this chapter applies, shall
biennially in the calendar month during which its articles of organiza-
tion or application for authority were filed, or effective date thereof
if stated, file on forms prescribed by the secretary of state, a state-
ment setting forth the post office address within or without this state
to which the secretary of state shall mail a copy of any process
accepted against it served upon him or her. Such address shall supersede
any previous address on file with the department of state for this
purpose.
(2) THE COMMISSIONER OF TAXATION AND FINANCE AND THE SECRETARY OF
STATE MAY AGREE TO ALLOW LIMITED LIABILITY COMPANIES TO INCLUDE THE
STATEMENT SPECIFIED IN PARAGRAPH ONE OF THIS SUBDIVISION ON TAX REPORTS
FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU OF BIENNIAL
REPORTS AND IN A MANNER PRESCRIBED BY THE COMMISSIONER OF TAXATION AND
FINANCE. IF THIS AGREEMENT IS MADE, STARTING WITH TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, EACH LIMITED
LIABILITY COMPANY REQUIRED TO FILE THE STATEMENT SPECIFIED IN PARAGRAPH
ONE OF THIS SUBDIVISION THAT IS SUBJECT TO THE FILING FEE IMPOSED BY
PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF
THE TAX LAW SHALL PROVIDE SUCH STATEMENT ANNUALLY ON ITS FILING FEE
PAYMENT FORM FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU
OF FILING A STATEMENT UNDER THIS SECTION WITH THE DEPARTMENT OF STATE.
HOWEVER, EACH LIMITED LIABILITY COMPANY REQUIRED TO FILE A STATEMENT
UNDER THIS SECTION MUST CONTINUE TO FILE THE BIENNIAL STATEMENT REQUIRED
BY THIS SECTION WITH THE DEPARTMENT OF STATE UNTIL THE LIMITED LIABILITY
COMPANY IN FACT HAS FILED A FILING FEE PAYMENT FORM WITH THE DEPARTMENT
OF TAXATION AND FINANCE THAT INCLUDES ALL REQUIRED INFORMATION. AFTER
THAT TIME, THE LIMITED LIABILITY COMPANY SHALL CONTINUE TO PROVIDE ANNU-
ALLY THE STATEMENT SPECIFIED IN PARAGRAPH ONE OF THIS SUBDIVISION ON ITS
FILING FEE PAYMENT FORM IN LIEU OF THE BIENNIAL STATEMENT REQUIRED BY
THIS SUBDIVISION.
(3) IF THE AGREEMENT DESCRIBED IN PARAGRAPH TWO OF THIS SUBDIVISION IS
MADE, THE DEPARTMENT OF TAXATION AND FINANCE SHALL DELIVER TO THE
DEPARTMENT OF STATE THE STATEMENT SPECIFIED IN PARAGRAPH ONE OF THIS
SUBDIVISION CONTAINED ON FILING FEE PAYMENT FORMS. THE DEPARTMENT OF
TAXATION AND FINANCE MUST, TO THE EXTENT FEASIBLE, ALSO INCLUDE THE
CURRENT NAME OF THE LIMITED LIABILITY COMPANY, DEPARTMENT OF STATE IDEN-
TIFICATION NUMBER FOR SUCH LIMITED LIABILITY COMPANY, THE NAME, SIGNA-
TURE AND CAPACITY OF THE SIGNER OF THE STATEMENT, NAME AND STREET
ADDRESS OF THE FILER OF THE STATEMENT, AND THE EMAIL ADDRESS, IF ANY, OF
THE FILER OF THE STATEMENT.
S 6. Subdivision (c) of section 301-A of the limited liability company
law, as added by chapter 448 of the laws of 1998, is amended to read as
follows:
(c) The filing by the department of state of a certificate of amend-
ment or certificate of change OR THE FILING OF A STATEMENT UNDER SECTION
THREE HUNDRED ONE OF THIS ARTICLE providing for a new address by a
designating limited liability company shall annul the suspension and its
A. 6009 51
authority to do business in this state shall be restored and continued
as if no suspension had occurred.
S 7. Subdivision (c) of section 1101 of the limited liability company
law is amended to read as follows:
(c) For the statement of address of the post office address to which
the secretary of state shall mail a copy of any process against the
limited liability company served upon him or her pursuant to section
three hundred one of this chapter, nine dollars. THIS FEE SHALL NOT
APPLY IF THIS STATEMENT IS FILED DIRECTLY WITH THE DEPARTMENT OF TAXA-
TION AND FINANCE.
S 8. Subdivision (g) of section 121-1500 of the partnership law, as
amended by chapter 643 of the laws of 1995, is amended to read as
follows:
(g) Each registered limited liability partnership shall, within sixty
days prior to the fifth anniversary of the effective date of its regis-
tration and every five years thereafter, furnish a statement to the
department of state setting forth: (i) the name of the registered limit-
ed liability partnership, (ii) the address of the principal office of
the registered limited liability partnership, (iii) the post office
address within or without this state to which the secretary of state
shall mail a copy of any process accepted against it served upon him or
her, which address shall supersede any previous address on file with the
department of state for this purpose, and (iv) a statement that it is
eligible to register as a registered limited liability partnership
pursuant to subdivision (a) of this section. The statement shall be
executed by one or more partners of the registered limited liability
partnership. The statement shall be accompanied by a fee of twenty
dollars IF SUBMITTED DIRECTLY TO THE DEPARTMENT OF STATE. THE COMMIS-
SIONER OF TAXATION AND FINANCE AND THE SECRETARY OF STATE MAY AGREE TO
ALLOW REGISTERED LIMITED LIABILITY PARTNERSHIPS TO PROVIDE THE STATEMENT
SPECIFIED IN THIS SUBDIVISION ON TAX REPORTS FILED WITH THE DEPARTMENT
OF TAXATION AND FINANCE IN LIEU OF STATEMENTS FILED DIRECTLY WITH THE
SECRETARY OF STATE AND IN A MANNER PRESCRIBED BY THE COMMISSIONER OF
TAXATION AND FINANCE. IF THIS AGREEMENT IS MADE, STARTING WITH TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, EACH
LIMITED LIABILITY PARTNERSHIP REQUIRED TO FILE THE STATEMENT SPECIFIED
IN THIS SUBDIVISION THAT IS SUBJECT TO THE FILING FEE IMPOSED BY PARA-
GRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THE
TAX LAW SHALL PROVIDE SUCH STATEMENT ANNUALLY ON ITS FILING FEE PAYMENT
FORM FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU OF FILING
A STATEMENT UNDER THIS SUBDIVISION WITH THE DEPARTMENT OF STATE. HOWEV-
ER, EACH REGISTERED LIMITED LIABILITY PARTNERSHIP REQUIRED TO FILE A
STATEMENT UNDER THIS SECTION MUST CONTINUE TO FILE A STATEMENT WITH THE
DEPARTMENT OF STATE AS REQUIRED BY THIS SECTION UNTIL THE REGISTERED
LIMITED LIABILITY PARTNERSHIP IN FACT HAS FILED A FILING FEE PAYMENT
FORM WITH THE DEPARTMENT OF TAXATION AND FINANCE THAT INCLUDES ALL
REQUIRED INFORMATION. AFTER THAT TIME, THE LIMITED LIABILITY PARTNERSHIP
SHALL CONTINUE TO PROVIDE ANNUALLY THE STATEMENT SPECIFIED IN THIS
SUBDIVISION ON ITS FILING FEE PAYMENT FORM IN LIEU OF THE STATEMENT
REQUIRED BY THIS SUBDIVISION. THE COMMISSIONER OF TAXATION AND FINANCE
SHALL DELIVER THE COMPLETED STATEMENT SPECIFIED IN THIS SUBDIVISION TO
THE DEPARTMENT OF STATE FOR FILING. THE DEPARTMENT OF TAXATION AND
FINANCE MUST, TO THE EXTENT FEASIBLE, ALSO INCLUDE IN SUCH DELIVERY THE
CURRENT NAME OF THE REGISTERED LIMITED LIABILITY PARTNERSHIP, DEPARTMENT
OF STATE IDENTIFICATION NUMBER FOR SUCH REGISTERED LIMITED LIABILITY
PARTNERSHIP, THE NAME, SIGNATURE AND CAPACITY OF THE SIGNER OF THE
A. 6009 52
STATEMENT, NAME AND STREET ADDRESS OF THE FILER OF THE STATEMENT, AND
THE EMAIL ADDRESS, IF ANY, OF THE FILER OF THE STATEMENT. If a regis-
tered limited liability partnership shall not timely file the statement
required by this subdivision, the department of state may, upon sixty
days' notice mailed to the address of such registered limited liability
partnership as shown in the last registration or statement or certif-
icate of amendment filed by such registered limited liability partner-
ship, make a proclamation declaring the registration of such registered
limited liability partnership to be revoked pursuant to this subdivi-
sion. The department of state shall file the original proclamation in
its office and shall publish a copy thereof in the state register no
later than three months following the date of such proclamation. Upon
the publication of such proclamation in the manner aforesaid, the regis-
tration of each registered limited liability partnership named in such
proclamation shall be deemed revoked without further legal proceedings.
Any registered limited liability partnership whose registration was so
revoked may file in the department of state a [certificate of consent
certifying that either a] statement required by this subdivision [has
been filed or accompanies the certificate of consent and all fees
imposed under this chapter on the registered limited liability partner-
ship have been paid]. The filing of such [certificate of consent] STATE-
MENT shall have the effect of annulling all of the proceedings thereto-
fore taken for the revocation of the registration of such registered
limited liability partnership under this subdivision and (1) the regis-
tered limited liability partnership shall thereupon have such powers,
rights, duties and obligations as it had on the date of the publication
of the proclamation, with the same force and effect as if such proclama-
tion had not been made or published and (2) such publication shall not
affect the applicability of the provisions of subdivision (b) of section
twenty-six of this chapter to any debt, obligation or liability
incurred, created or assumed from the date of publication of the procla-
mation through the date of the filing of the [certificate of consent.
The filing of a certificate of consent shall be accompanied by a fee of
fifty dollars and if accompanied by a statement, the fee required by
this subdivision] STATEMENT WITH THE DEPARTMENT OF STATE. If, after the
publication of such proclamation, it shall be determined by the depart-
ment of state that the name of any registered limited liability partner-
ship was erroneously included in such proclamation, the department of
state shall make appropriate entry on its records, which entry shall
have the effect of annulling all of the proceedings theretofore taken
for the revocation of the registration of such registered limited
liability partnership under this subdivision and (A) such registered
limited liability partnership shall have such powers, rights, duties and
obligations as it had on the date of the publication of the proclama-
tion, with the same force and effect as if such proclamation had not
been made or published and (B) such publication shall not affect the
applicability of the provisions of subdivision (b) of section twenty-six
of this chapter to any debt, obligation or liability incurred, created
or assumed from the date of publication of the proclamation through the
date of the making of the entry on the records of the department of
state. Whenever a registered limited liability partnership WHOSE REGIS-
TRATION WAS REVOKED shall have filed a [certificate of consent] STATE-
MENT pursuant to this subdivision or if the name of a registered limited
liability partnership was erroneously included in a proclamation and
such proclamation was annulled, the department of state shall publish a
notice thereof in the state register.
A. 6009 53
S 9. Paragraph (I) of subdivision (f) of section 121-1502 of the part-
nership law, as amended by chapter 643 of the laws of 1995 and as desig-
nated by chapter 767 of the laws of 2005, is amended to read as follows:
(I) Each New York registered foreign limited liability partnership
shall, within sixty days prior to the fifth anniversary of the effective
date of its notice and every five years thereafter, furnish a statement
to the department of state setting forth:
(i) the name under which the New York registered foreign limited
liability partnership is carrying on or conducting or transacting busi-
ness or activities in this state, (ii) the address of the principal
office of the New York registered foreign limited liability partnership,
(iii) the post office address within or without this state to which the
secretary of state shall mail a copy of any process accepted against it
served upon him or her, which address shall supersede any previous
address on file with the department of state for this purpose, and (iv)
a statement that it is a foreign limited liability partnership. The
statement shall be executed by one or more partners of the New York
registered foreign limited liability partnership. The statement shall be
accompanied by a fee of fifty dollars IF SUBMITTED DIRECTLY TO THE
DEPARTMENT OF STATE. THE COMMISSIONER OF TAXATION AND FINANCE AND THE
SECRETARY OF STATE MAY AGREE TO ALLOW NEW YORK REGISTERED FOREIGN LIMIT-
ED LIABILITY PARTNERSHIPS TO PROVIDE THE STATEMENT SPECIFIED IN THIS
PARAGRAPH ON TAX REPORTS FILED WITH THE DEPARTMENT OF TAXATION AND
FINANCE IN LIEU OF STATEMENTS FILED DIRECTLY WITH THE SECRETARY OF STATE
AND IN A MANNER PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE.
IF THIS AGREEMENT IS MADE, STARTING WITH TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, EACH NEW YORK REGISTERED
FOREIGN LIMITED LIABILITY PARTNERSHIP REQUIRED TO FILE THE STATEMENT
SPECIFIED IN THIS PARAGRAPH THAT IS SUBJECT TO THE FILING FEE IMPOSED BY
PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF
THE TAX LAW SHALL PROVIDE SUCH STATEMENT ANNUALLY ON ITS FILING FEE
PAYMENT FORM FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE IN LIEU
OF FILING A STATEMENT UNDER THIS PARAGRAPH DIRECTLY WITH THE DEPARTMENT
OF STATE. HOWEVER, EACH NEW YORK REGISTERED FOREIGN LIMITED LIABILITY
PARTNERSHIP REQUIRED TO FILE A STATEMENT UNDER THIS SECTION MUST CONTIN-
UE TO FILE A STATEMENT WITH THE DEPARTMENT OF STATE AS REQUIRED BY THIS
SECTION UNTIL THE NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNER-
SHIP IN FACT HAS FILED A FILING FEE PAYMENT FORM WITH THE DEPARTMENT OF
TAXATION AND FINANCE THAT INCLUDES ALL REQUIRED INFORMATION. AFTER THAT
TIME, THE NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP
SHALL CONTINUE TO PROVIDE ANNUALLY THE STATEMENT SPECIFIED IN THIS PARA-
GRAPH ON ITS FILING FEE PAYMENT FORM IN LIEU OF FILING THE STATEMENT
REQUIRED BY THIS PARAGRAPH DIRECTLY WITH THE DEPARTMENT OF STATE. THE
COMMISSIONER OF TAXATION AND FINANCE SHALL DELIVER THE COMPLETED STATE-
MENT SPECIFIED IN THIS PARAGRAPH TO THE DEPARTMENT OF STATE FOR FILING.
THE DEPARTMENT OF TAXATION AND FINANCE MUST, TO THE EXTENT FEASIBLE,
ALSO INCLUDE IN SUCH DELIVERY THE CURRENT NAME OF THE NEW YORK REGIS-
TERED FOREIGN LIMITED LIABILITY PARTNERSHIP, DEPARTMENT OF STATE IDEN-
TIFICATION NUMBER FOR SUCH NEW YORK REGISTERED FOREIGN LIMITED LIABILITY
PARTNERSHIP, THE NAME, SIGNATURE AND CAPACITY OF THE SIGNER OF THE
STATEMENT, NAME AND STREET ADDRESS OF THE FILER OF THE STATEMENT, AND
THE EMAIL ADDRESS, IF ANY, OF THE FILER OF THE STATEMENT. If a New York
registered foreign limited liability partnership shall not timely file
the statement required by this subdivision, the department of state may,
upon sixty days' notice mailed to the address of such New York regis-
tered foreign limited liability partnership as shown in the last notice
A. 6009 54
or statement or certificate of amendment filed by such New York regis-
tered foreign limited liability partnership, make a proclamation declar-
ing the status of such New York registered foreign limited liability
partnership to be revoked pursuant to this subdivision. The department
of state shall file the original proclamation in its office and shall
publish a copy thereof in the state register no later than three months
following the date of such proclamation. Upon the publication of such
proclamation in the manner aforesaid, the status of each New York regis-
tered foreign limited liability partnership named in such proclamation
shall be deemed revoked without further legal proceedings. Any New York
registered foreign limited liability partnership whose status was so
revoked may file in the department of state a [certificate of consent
certifying that either a] statement required by this subdivision [has
been filed or accompanies the certificate of consent and all fees
imposed under this chapter on the New York registered foreign limited
liability partnership have been paid]. The filing of such [certificate
of consent] STATEMENT shall have the effect of annulling all of the
proceedings theretofore taken for the revocation of the status of such
New York registered foreign limited liability partnership under this
subdivision and (1) the New York registered foreign limited liability
partnership shall thereupon have such powers, rights, duties and obli-
gations as it had on the date of the publication of the proclamation,
with the same force and effect as if such proclamation had not been made
or published and (2) such publication shall not affect the applicability
of the laws of the jurisdiction governing the agreement under which such
New York registered foreign limited liability partnership is operating
(including laws governing the liability of partners) to any debt, obli-
gation or liability incurred, created or assumed from the date of publi-
cation of the proclamation through the date of the filing of the
[certificate of consent. The filing of a certificate of consent shall be
accompanied by a fee of fifty dollars and if accompanied by a statement,
the fee required by this subdivision] STATEMENT WITH THE DEPARTMENT OF
STATE. If, after the publication of such proclamation, it shall be
determined by the department of state that the name of any New York
registered foreign limited liability partnership was erroneously
included in such proclamation, the department of state shall make appro-
priate entry on its records, which entry shall have the effect of
annulling all of the proceedings theretofore taken for the revocation of
the status of such New York registered foreign limited liability part-
nership under this subdivision and (1) such New York registered foreign
limited liability partnership shall have such powers, rights, duties and
obligations as it had on the date of the publication of the proclama-
tion, with the same force and effect as if such proclamation had not
been made or published and (2) such publication shall not affect the
applicability of the laws of the jurisdiction governing the agreement
under which such New York registered foreign limited liability partner-
ship is operating (including laws governing the liability of partners)
to any debt, obligation or liability incurred, created or assumed from
the date of publication of the proclamation through the date of the
making of the entry on the records of the department of state. Whenever
a New York registered foreign limited liability partnership WHOSE STATUS
WAS REVOKED shall have filed a [certificate of consent] STATEMENT pursu-
ant to this subdivision or if the name of a New York registered foreign
limited liability partnership was erroneously included in a proclamation
and such proclamation was annulled, the department of state shall
publish a notice thereof in the state register.
A. 6009 55
S 10. Subdivision (d) of section 121-1506 of the partnership law, as
amended by chapter 172 of the laws of 1999, is amended to read as
follows:
(d) The filing by the department of state of a certificate of amend-
ment OR THE FILING OF A STATEMENT providing for a new address by a
designating limited liability partnership shall annul the suspension and
its authority to do business in this state shall be restored and contin-
ued as if no suspension had occurred.
S 11. Section 192 of the tax law is amended by adding a new subdivi-
sion 5 to read as follows:
5. NOTWITHSTANDING THE PROVISIONS OF SECTION TWO HUNDRED TWO OF THIS
ARTICLE, THE COMMISSIONER SHALL PROVIDE THE STATEMENTS AND OTHER
REQUIRED INFORMATION REQUESTED ON TAX REPORTS UNDER SECTION FOUR HUNDRED
EIGHT OF THE BUSINESS CORPORATION LAW TO THE SECRETARY OF STATE FOR
FILING. SUCH PROVISION MAY ALSO INCLUDE A COPY OR IMAGE OF THAT PORTION
OF THE REPORT SOLELY PERTINENT TO SUCH INFORMATION TO THE EXTENT FEASI-
BLE. THE COMMISSIONER MAY ALSO PROVIDE INFORMATION ON NONCOMPLIANCE.
S 12. Section 211 of the tax law is amended by adding a new subdivi-
sion 15 to read as follows:
15. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION EIGHT OF THIS
SECTION, THE COMMISSIONER SHALL PROVIDE THE STATEMENTS AND OTHER
REQUIRED INFORMATION REQUESTED ON TAX REPORTS UNDER SECTION FOUR HUNDRED
EIGHT OF THE BUSINESS CORPORATION LAW TO THE SECRETARY OF STATE FOR
FILING. SUCH PROVISION MAY ALSO INCLUDE A COPY OR IMAGE OF THAT PORTION
OF THE REPORT SOLELY PERTINENT TO SUCH INFORMATION TO THE EXTENT FEASI-
BLE. THE COMMISSIONER ANY ALSO PROVIDE INFORMATION ON NONCOMPLIANCE.
S 13. Paragraph 3 of subsection (c) of section 658 of the tax law is
amended by adding a new subparagraph (E) to read as follows:
(E) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (E) OF SECTION SIX
HUNDRED NINETY-SEVEN OF THIS ARTICLE, THE COMMISSIONER SHALL PROVIDE THE
STATEMENTS AND OTHER REQUIRED INFORMATION INCLUDED ON THE FILING FEE
PAYMENT FORM UNDER SECTION THREE HUNDRED ONE OF THE LIMITED LIABILITY
COMPANY LAW, SUBDIVISION (F) OF SECTION 121-1502 OF THE PARTNERSHIP LAW,
AND SUBDIVISION (D) OF SECTION 121-1506 OF THE PARTNERSHIP LAW TO THE
SECRETARY OF STATE FOR FILING. SUCH PROVISION MAY ALSO INCLUDE A COPY
OR IMAGE OF THAT PORTION OF THE REPORT SOLELY PERTINENT TO SUCH INFORMA-
TION TO THE EXTENT FEASIBLE. THE COMMISSIONER MAY ALSO PROVIDE INFORMA-
TION ON NONCOMPLIANCE.
S 14. Section 1085 of the tax law is amended by adding a new
subsection (v) to read as follows:
(V) FAILURE TO SUPPLY ALL THE INFORMATION REQUIRED OR TO PROVIDE
CORRECT INFORMATION IN SECRETARY OF STATE STATEMENTS. UNLESS IT IS SHOWN
THAT SUCH FAILURE TO PROVIDE THE STATEMENT AND INFORMATION REQUIRED BY
SECTION FOUR HUNDRED EIGHT OF THE BUSINESS CORPORATION LAW IS DUE TO
REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THERE SHALL, UPON NOTICE
AND DEMAND BY THE COMMISSIONER AND IN THE SAME MANNER AS TAX, BE PAID BY
THE TAXPAYER FAILING TO SUPPLY COMPLETE AND CORRECT INFORMATION, A
PENALTY OF TWO HUNDRED FIFTY DOLLARS PER TAXPAYER REQUIRED TO PROVIDE
SUCH INFORMATION.
S 15. Section 685 of the tax law is amended by adding a new subsection
(dd) to read as follows:
(DD) FAILURE TO SUPPLY ALL THE INFORMATION REQUIRED OR TO PROVIDE
CORRECT INFORMATION IN SECRETARY OF STATE STATEMENTS. UNLESS IT IS SHOWN
THAT SUCH FAILURE TO PROVIDE THE STATEMENT AND INFORMATION REQUIRED BY
SUBDIVISION (E) OF SECTION THREE HUNDRED ONE OF THE LIMITED LIABILITY
COMPANY LAW, SUBDIVISION (F) OF SECTION 121-1502 OF THE PARTNERSHIP LAW,
A. 6009 56
OR SUBDIVISION (D) OF SECTION 121-1506 OF THE PARTNERSHIP LAW IS DUE TO
REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THERE SHALL, UPON NOTICE
AND DEMAND BY THE COMMISSIONER AND IN THE SAME MANNER AS TAX, BE PAID BY
THE TAXPAYER FAILING TO SUPPLY COMPLETE AND CORRECT INFORMATION, A
PENALTY OF TWO HUNDRED AND FIFTY DOLLARS PER LIMITED LIABILITY COMPANY
REQUIRED TO PROVIDE SUCH INFORMATION ON ITS FILING FEE PAYMENT FORM.
S 16. This act shall take effect immediately.
PART T
Section 1. Paragraph (a) of subdivision 5 of section 208 of the tax
law, as amended by section 4 of part A of chapter 59 of the laws of
2014, is amended to read as follows:
(a) The term "investment capital" means investments in stocks that are
held by the taxpayer for more than six consecutive months but are not
[held for sale to customers] AND HAVE NEVER BEEN USED BY THE TAXPAYER in
the regular course of business, or, if the taxpayer makes the election
provided for in subparagraph one of paragraph (a) of subdivision five of
section two hundred ten-A of this article, are not qualified financial
instruments as described in subdivision five of section two hundred
ten-A of this article. Stock in a corporation that is conducting a
unitary business with the taxpayer, stock in a corporation that is
included in a combined report with the taxpayer pursuant to the commonly
owned group election in subdivision three of section two hundred ten-C
of this article, and stock issued by the taxpayer shall not constitute
investment capital. For purposes of this subdivision, if the taxpayer
owns or controls, directly or indirectly, less than twenty percent of
the voting power of the stock of a corporation, that corporation will be
presumed to be conducting a business that is not unitary with the busi-
ness of the taxpayer.
S 2. Paragraph (d) of subdivision 5 of section 208 of the tax law, as
added by section 4 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(d) If a taxpayer acquires stock during the second half of its taxable
year and owns that stock on the last day of the taxable year, it will be
presumed, SOLELY FOR PURPOSES OF DETERMINING WHETHER THAT STOCK SHOULD
BE CLASSIFIED AS INVESTMENT CAPITAL AFTER IT IS ACQUIRED, that the
taxpayer held that stock for more than six consecutive months during the
taxable year. THIS PRESUMPTION SHALL APPLY ONLY IF THE TAXPAYER IN FACT
OWNS THE STOCK AT THE TIME IT FILES ITS ORIGINAL REPORT FOR THE TAXABLE
YEAR IN WHICH IT ACQUIRES THE STOCK. However, if the taxpayer does not
in fact hold that stock AS INVESTMENT CAPITAL for more than six consec-
utive months, the taxpayer must increase its total business capital in
the immediately succeeding taxable year by the amount included in
investment capital for that stock, net of any liabilities attributable
to that stock computed as provided in paragraph (b) of this subdivision
and must increase its business income in the immediately succeeding
taxable year by the amount of income and net gains (but not less than
zero) from that stock included in investment income, less any interest
deductions directly or indirectly attributable to that stock, as
provided in subdivision six of this section.
S 3. Paragraph (e) of subdivision 5 of section 208 of the tax law, as
added by section 4 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(e) When income or gain from a debt obligation or other security
cannot be apportioned to the state using the [business allocation
A. 6009 57
percentage] APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED
TEN-A OF THIS ARTICLE as a result of United States constitutional prin-
ciples, the debt obligation or other security will be included in
investment capital.
S 4. Paragraph (f) of subdivision 5 of section 208 of the tax law is
REPEALED.
S 5. Paragraph (a) of subdivision 6 of section 208 of the tax law, as
amended by section 4 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(a) The term "investment income" means income, including capital gains
in excess of capital losses, from investment capital, to the extent
included in computing entire net income, less, (i) in the discretion of
the commissioner, any interest deductions allowable in computing entire
net income which are directly or indirectly attributable to investment
capital or investment income, [and (ii) the taxpayer's loss, deduction
and/or expense attributable to any transaction, or series of trans-
actions, entered into to manage the risk of price changes or currency
fluctuations with respect to any item of investment capital that is held
or to be held by the taxpayer, or the aggregate investment capital that
is held or to be held by the taxpayer, if all of the risk, or all but a
de minimis amount of the risk, is with respect to investment capital,]
provided, however, that in no case shall investment income exceed entire
net income. (II) If the amount OF INTEREST DEDUCTIONS subtracted under
[subparagraph (i) or subparagraph (ii) of this paragraph or under both
of those subparagraphs] SUBPARAGRAPH (I) OF THIS PARAGRAPH exceeds
investment income, the excess of such amount over investment income must
be added back to entire net income.
S 6. Subclause (ii) of clause (B) of subparagraph 1 of paragraph (r)
of subdivision 9 of section 208 of the tax law, as added by section 4 of
part A of chapter 59 of the laws of 2014, is amended to read as follows:
(ii) Measurement of assets. FOR PURPOSES OF THIS PARAGRAPH: (I) Total
assets are those assets that are properly reflected on a balance sheet,
computed in the same manner as is required by the banking regulator of
the taxpayers included in the combined return.
(II) Assets will only be included if the income or expenses of which
are properly reflected (or would have been properly reflected if not
fully depreciated or expensed, or depreciated or expensed to a nominal
amount) in the computation of the combined group's entire net income for
the taxable year. Assets will not include deferred tax assets and intan-
gible assets identified as "goodwill".
(III) Tangible real and personal property, such as buildings, land,
machinery, and equipment shall be valued at cost. Leased assets will be
valued at the annual lease payment multiplied by eight. Intangible prop-
erty, such as loans and investments, shall be valued at book value
exclusive of reserves.
(IV) Intercorporate stockholdings and bills, notes and accounts
receivable, and other intercorporate indebtedness between the corpo-
rations included in the combined report shall be eliminated.
(V) Average assets are computed using the assets measured on the first
day of the taxable year, and on the last day of each subsequent quarter
of the taxable year or month or day during the taxable year.
S 7. Clause (B) of subparagraph 2 and clause (B) of subparagraph 2-a
of paragraph (s) of subdivision 9 of section 208 of the tax law, as
added by section 4 of part A of chapter 59 of the laws of 2014, are
amended to read as follows:
A. 6009 58
(B) The average value during the taxable year of the assets of the
taxpayer, or, IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, the
assets of the combined reporting group of the taxpayer under section two
hundred ten-C of this article, must not exceed eight billion dollars.
(B) The average value during the taxable year of the assets of the
taxpayer, or, IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, the
assets of the combined reporting group of the taxpayer under section two
hundred ten-C of this article, must not exceed eight billion dollars.
S 8. Paragraph (d) of subdivision 1 of section 209 of the tax law, as
added by section 5 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(d)(i) A corporation with less than one million dollars but at least
ten thousand dollars of receipts within this state in a taxable year
that is part of a [combined reporting] UNITARY group THAT MEETS THE
OWNERSHIP TEST under section two hundred ten-C of this article is deriv-
ing receipts from activity in this state if the receipts within this
state of the members of the [combined reporting] UNITARY group that have
at least ten thousand dollars of receipts within this state in the
aggregate meet the threshold set forth in paragraph (b) of this subdivi-
sion.
(ii) A corporation that does not meet any of the thresholds set forth
in paragraph (c) of this subdivision but has at least ten customers, or
locations, or customers and locations, as described in paragraph (c) of
this subdivision, and is part of a [combined reporting] UNITARY group
THAT MEETS THE OWNERSHIP TEST under section two hundred ten-C of this
article [that] is doing business in this state if the number of custom-
ers, locations, or customers and locations, within this state of the
members of the [combined reporting] UNITARY group that have at least ten
customers, locations, or customers and locations, within this state in
the aggregate meets any of the thresholds set forth in paragraph (c) of
this subdivision.
S 9. Paragraph (d) of subdivision 1 of section 209-B of the tax law,
as added by section 7 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(d)(i) A corporation with less than one million dollars but at least
ten thousand dollars of receipts within the metropolitan commuter trans-
portation district in a taxable year that is part of a [combined report-
ing] UNITARY group THAT MEETS THE OWNERSHIP TEST under section two
hundred ten-C of this article is deriving receipts from activity in the
metropolitan commuter transportation district if the receipts within the
metropolitan commuter transportation district of the members of the
[combined reporting] UNITARY group that have at least ten thousand
dollars of receipts within the metropolitan commuter transportation
district in the aggregate meet the threshold set forth in paragraph (b)
of this subdivision.
(ii) A corporation that does not meet any of the thresholds set forth
in paragraph (c) of this subdivision but has at least ten customers, or
locations, or customers and locations, as described in paragraph (c),
and is part of a [combined reporting] UNITARY group THAT MEETS THE
OWNERSHIP TEST under section two hundred ten-C of this article [that] is
doing business in the metropolitan commuter transportation district if
the number of customers, locations, or customers and locations, within
the metropolitan commuter transportation district of the members of the
[combined reporting] UNITARY group that have at least ten customers,
locations, or customers and locations, within the metropolitan commuter
A. 6009 59
transportation district in the aggregate meets any of the thresholds set
forth in paragraph (c) of this subdivision.
S 10. The opening paragraph of paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 12 of part A of chap-
ter 59 of the laws of 2014, is amended to read as follows:
For taxable years beginning before January first, two thousand
sixteen, the amount prescribed by this paragraph shall be computed at
the rate of seven and one-tenth percent of the taxpayer's business
income base. For taxable years beginning on or after January first, two
thousand sixteen, the amount prescribed by this paragraph shall be six
and one-half percent of the taxpayer's business income base. The taxpay-
er's business income base shall mean the portion of the taxpayer's busi-
ness income allocated within the state as hereinafter provided. However,
in the case of a small business taxpayer, as defined in paragraph (f) of
this subdivision, the amount prescribed by this paragraph shall be
computed pursuant to subparagraph (iv) of this paragraph and in the case
of a manufacturer, as defined in subparagraph (vi) of this paragraph,
the amount prescribed by this paragraph shall be computed pursuant to
subparagraph (vi) of this paragraph, AND, IN THE CASE OF A QUALIFIED
EMERGING TECHNOLOGY COMPANY, AS DEFINED IN SUBPARAGRAPH (VII) OF THIS
PARAGRAPH, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE COMPUTED
PURSUANT TO SUBPARAGRAPH (VII) OF THIS PARAGRAPH.
S 11. Subparagraph (vi) of paragraph (a) of subdivision 1 of section
210 of the tax law, as amended by section 12 of part A of chapter 59 of
the laws of 2014, is amended to read as follows:
(vi) for taxable years beginning on or after January first, two thou-
sand fourteen, the amount prescribed by this paragraph for a taxpayer
which is a qualified New York manufacturer, shall be computed at the
rate of zero percent of the taxpayer's business income base. The term
"manufacturer" shall mean a taxpayer which during the taxable year is
principally engaged in the production of goods by manufacturing, proc-
essing, assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing. However,
the generation and distribution of electricity, the distribution of
natural gas, and the production of steam associated with the generation
of electricity shall not be qualifying activities for a manufacturer
under this subparagraph. Moreover, IN THE CASE OF A COMBINED REPORT, the
combined group shall be considered a "manufacturer" for purposes of this
subparagraph only if the combined group during the taxable year is prin-
cipally engaged in the activities set forth in this paragraph, or any
combination thereof. A taxpayer or, IN THE CASE OF A COMBINED REPORT, a
combined group shall be "principally engaged" in activities described
above if, during the taxable year, more than fifty percent of the gross
receipts of the taxpayer or combined group, respectively, are derived
from receipts from the sale of goods produced by such activities. In
computing a combined group's gross receipts, intercorporate receipts
shall be eliminated. A "qualified New York manufacturer" is a manufac-
turer which has property in New York which is described in CLAUSE (A) OF
SUBPARAGRAPH (I) OF PARAGRAPH (B) OF subdivision one of section two
hundred ten-B of this article and either (I) the adjusted basis of such
property for federal income tax purposes at the close of the taxable
year is at least one million dollars or (II) all of its real and
personal property is located in New York. A taxpayer or, in the case of
a combined report, a combined group, that does not satisfy the princi-
pally engaged test may be a qualified New York manufacturer if the
taxpayer or the combined group employs during the taxable year at least
A. 6009 60
two thousand five hundred employees in manufacturing in New York and the
taxpayer or the combined group has property in the state used in manu-
facturing, the adjusted basis of which for federal income tax purposes
at the close of the taxable year is at least one hundred million
dollars.
S 12. Subparagraph (vii) of paragraph (a) of subdivision 1 of section
210 of the tax law, as amended by section 12 of part A of chapter 59 of
the laws of 2014, is amended to read as follows:
(vii) For a taxpayer that is defined as a qualified emerging technolo-
gy company under paragraph (c) of subdivision one of section thirty-one
hundred two-e of the public authorities law regardless of the ten
million dollar limitation expressed in subparagraph one of such para-
graph (c) the AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE COMPUTED AT
THE rate [at which the tax is computed in effect for taxable years
beginning on or after January first, two thousand thirteen and before
January first, two thousand fourteen for such qualified emerging tech-
nology companies shall be reduced by nine and two-tenths percent for
taxable years commencing on or after January first, two thousand four-
teen and before January first, two thousand fifteen, twelve and three-
tenths percent for taxable years commencing on or after January first,
two thousand fifteen and before January first, two thousand sixteen,
fifteen and four-tenths percent for taxable years commencing on or after
January first, two thousand sixteen and before January first, two thou-
sand eighteen, and twenty-five percent for taxable years beginning on or
after January first, two thousand eighteen] OF 5.7 PERCENT FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN AND
BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, 5.5 PERCENT FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST TWO THOUSAND SIXTEEN AND
BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, AND 4.875 PERCENT FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN. IN
THE CASE OF A COMBINED REPORT, EACH CORPORATION INCLUDED IN THE COMBINED
REPORT MUST QUALIFY AS A QUALIFIED EMERGING TECHNOLOGY COMPANY IN ORDER
FOR THE TAX RATES PROVIDED BY THIS SUBPARAGRAPH TO APPLY.
S 13. Item (IV) of subclause 2 of clause (B) of subparagraph (viii) of
paragraph (a) of subdivision 1 of section 210 of the tax law, as added
by section 12 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
(IV) In lieu of the subtraction described in item (III) of this
subclause, if the taxpayer so elects, the taxpayer's prior net operating
loss conversion subtraction for the tax years beginning on or after
January first, two thousand fifteen and before January first, two thou-
sand seventeen shall equal in each year, not more than one-half of its
net operating loss conversion subtraction pool UNTIL THE POOL IS
EXHAUSTED. IF THE POOL IS NOT EXHAUSTED AT THE END OF SUCH TIME PERIOD,
THE REMAINDER OF THE POOL SHALL BE FORFEITED. The taxpayer shall make
such election on its FIRST return for the tax year beginning on or after
January first, two thousand fifteen and before January first, two thou-
sand sixteen by the due date for such return (determined with regard to
extensions).
S 14. Subclause 4 of clause (B) of subparagraph (viii) of paragraph
(a) of subdivision 1 of section 210 of the tax law, as added by section
12 of part A of chapter 59 of the laws of 2014, is amended to read as
follows:
(4) The prior net operating loss conversion subtraction may be used to
reduce the taxpayer's tax on allocated business income to the higher of
the tax on the capital base under paragraph (b) of this subdivision or
A. 6009 61
the fixed dollar minimum under paragraph (d) of this subdivision. [Any]
UNLESS THE TAXPAYER HAS MADE THE ELECTION PROVIDED FOR IN ITEM (IV) OF
SUBCLAUSE TWO OF THIS CLAUSE, ANY amount of unused subtraction shall be
carried forward to subsequent tax year or years until [tax] THE PRIOR
NET OPERATING LOSS CONVERSION SUBTRACTION POOL IS EXHAUSTED, BUT FOR NO
LONGER THAN TWENTY TAXABLE years OR THE TAXABLE YEAR beginning on or
after January first, TWO THOUSAND THIRTY-FIVE BUT BEFORE JANUARY FIRST,
two thousand thirty-six, WHICHEVER COMES FIRST. Such amount carried
forward shall not be subject to the one-tenth limitation for the subse-
quent tax year or years. However, if the taxpayer elects to compute its
prior net operating loss conversion subtraction pursuant to item (IV) of
subclause two of this clause, the taxpayer shall not carry forward any
UNUSED amount of such subtraction [beyond its] TO ANY tax year beginning
on or after [January first, two thousand sixteen and before] January
first, two thousand seventeen.
S 15. The opening paragraph of subparagraph (ix) of paragraph (a) of
subdivision 1 of section 210 of the tax law, as added by section 12 of
part A of chapter 59 of the laws of 2014, is amended to read as follows:
In computing the business income base, a net operating loss deduction
shall be allowed. A net operating loss deduction is the amount of net
operating loss or losses from one or more taxable years that are carried
forward OR CARRIED BACK to a particular [income] TAXABLE year. A net
operating loss is the amount of a business loss incurred in a particular
tax year multiplied by the apportionment factor for that year as deter-
mined under section two hundred ten-A of this article. The maximum net
operating LOSS deduction that is allowed in a taxable year is the amount
that reduces the taxpayer's tax on [allocated] APPORTIONED business
income to the higher of the tax on the capital base or the fixed dollar
minimum. Such deduction and loss are determined in accordance with the
following:
S 16. Clauses 4 and 6 of subparagraph (ix) of paragraph (a) of subdi-
vision 1 or section 210 of the tax law, as added by section 12 of part A
of chapter 59 of the laws of 2014, are amended to read as follows:
(4) [A net operating loss may be carried forward to each of the twenty
taxable years following the taxable year of the loss. A net operating
loss may be carried back to each of the three taxable years preceding
the taxable year of the loss; provided, however no loss can be carried
back to a tax year prior to a tax year beginning on or after January,
first, two thousand fifteen. A taxpayer must apply both of these limita-
tions in computing such net operating loss deduction.] A NET OPERATING
LOSS MAY BE CARRIED BACK THREE TAXABLE YEARS PRECEDING THE TAXABLE YEAR
OF THE LOSS. HOWEVER NO LOSS CAN BE CARRIED BACK TO A TAXABLE YEAR
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN. THE LOSS IS FIRST
CARRIED TO THE EARLIEST OF THE THREE TAXABLE YEARS. IF IT IS NOT ENTIRE-
LY USED IN THAT YEAR, IT IS CARRIED TO THE SECOND TAXABLE YEAR PRECEDING
THE LOSS YEAR, AND ANY REMAINING AMOUNT IS CARRIED TO THE TAXABLE YEAR
IMMEDIATELY PRECEDING THE LOSS YEAR. ANY UNUSED AMOUNT OF LOSS THEN
REMAINING MAY BE CARRIED FORWARD FOR AS MANY AS TWENTY TAXABLE YEARS
FOLLOWING THE LOSS YEAR. LOSSES CARRIED FORWARD ARE CARRIED FORWARD
FIRST TO THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE LOSS YEAR, THEN TO
THE SECOND TAXABLE YEAR FOLLOWING THE LOSS YEAR, AND THEN TO THE NEXT
IMMEDIATELY SUBSEQUENT TAXABLE YEAR OR YEARS UNTIL THE LOSS IS USED UP
OR THE TWENTIETH TAXABLE YEAR FOLLOWING THE LOSS YEAR, WHICHEVER COMES
FIRST.
(6) Where there are two or more allocated net operating losses, or
portions thereof, carried BACK OR CARRIED forward to be deducted in one
A. 6009 62
particular tax year from allocated business income, the earliest allo-
cated loss incurred must be applied first.
S 17. Subparagraph (ix) of paragraph (a) of subdivision 1 of section
210 of the tax law is amended by adding a new clause 7 to read as
follows:
(7) A TAXPAYER MAY ELECT TO WAIVE THE ENTIRE CARRYBACK PERIOD WITH
RESPECT TO A NET OPERATING LOSS. SUCH ELECTION MUST BE MADE ON THE
TAXPAYER'S ORIGINAL TIMELY FILED RETURN (DETERMINED WITH REGARD TO
EXTENSIONS) FOR THE TAXABLE YEAR OF THE NET OPERATING LOSS FOR WHICH THE
ELECTION IS TO BE IN EFFECT. ONCE AN ELECTION IS MADE FOR A TAXABLE
YEAR, IT SHALL BE IRREVOCABLE FOR THAT TAXABLE YEAR. A SEPARATE ELECTION
MUST BE MADE FOR EACH LOSS YEAR. THIS ELECTION APPLIES TO ALL MEMBERS OF
A COMBINED GROUP.
S 18. Paragraph (b) of subdivision 1 of section 210 of the tax law, as
amended by section 12 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(b) Capital base. (1) The amount prescribed by this paragraph shall be
computed at .15 percent for each dollar of the taxpayer's total business
capital, or the portion thereof allocated within the state as hereinaft-
er provided for taxable years beginning before January first, two thou-
sand sixteen. However, in the case of a cooperative housing corporation
as defined in the internal revenue code, the applicable rate shall be
.04 percent until taxable years beginning on or after January first, two
thousand twenty. The rate of tax for subsequent tax years shall be as
follows: .125 percent for taxable years beginning on or after January
first, two thousand sixteen and before January first, two thousand
seventeen; .100 percent for taxable years beginning on or after January
first, two thousand seventeen and before January first, two thousand
eighteen; .075 percent for taxable years beginning on or after January
first, two thousand eighteen and before January first, two thousand
nineteen; .050 percent for taxable years beginning on or after January
first, two thousand nineteen and before January first, two thousand
twenty; .025 percent for taxable years beginning on or after January
first, two thousand twenty and before January first, two thousand twen-
ty-one; and zero percent for years beginning on or after January first,
two thousand twenty-one. The rate of tax for a qualified New York
manufacturer [for tax years subsequent to taxable years beginning on or
after January first, two thousand fifteen and before January first, two
thousand sixteen] shall be .132 PERCENT FOR TAXABLE YEARS BEGINNING ON
OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN AND BEFORE JANUARY FIRST,
TWO THOUSAND SIXTEEN, .106 percent for taxable years beginning on or
after January first, two thousand sixteen and before January first, two
thousand seventeen, .085 percent for taxable years beginning on or after
January first, two thousand seventeen and before January first, two
thousand eighteen; .056 percent for taxable years beginning on or after
January first, two thousand eighteen and before January first, two thou-
sand nineteen; .038 percent for taxable years beginning on or after
January first, two thousand nineteen and before January first, thousand
twenty; .019 percent for taxable years beginning on or after January
first, two thousand twenty and before January first, two thousand twen-
ty-one; and zero percent for years beginning on or after January first,
two thousand twenty-one. In no event shall the amount prescribed by this
paragraph exceed three hundred fifty thousand dollars for qualified New
York manufacturers and for all other taxpayers five million dollars.
(2) For purposes of subparagraph one of this paragraph, the term
"manufacturer" shall mean a taxpayer which during the taxable year is
A. 6009 63
principally engaged in the production of goods by manufacturing, proc-
essing, assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing. Moreover,
for purposes of computing the capital base in a combined report, the
combined group shall be considered a "manufacturer" for purposes of this
subparagraph only if the combined group during the taxable year is prin-
cipally engaged in the activities set forth in this subparagraph, or any
combination thereof. A taxpayer or, IN THE CASE OF A COMBINED REPORT, a
combined group shall be "principally engaged" in activities described
above if, during the taxable year, more than fifty percent of the gross
receipts of the taxpayer or combined group, respectively, are derived
from receipts from the sale of goods produced by such activities. In
computing a combined group's gross receipts, intercorporate receipts
shall be eliminated. A "qualified New York manufacturer" is a manufac-
turer that has property in New York that is described in subdivision one
of section [210-B] TWO HUNDRED TEN-B of this article and either (i) the
adjusted basis of that property for federal income tax purposes at the
close of the taxable year is at least one million dollars or (ii) all of
its real and personal property is located in New York. In addition, a
"qualified New York manufacturer" means a taxpayer that is defined as a
qualified emerging technology company under paragraph (c) of subdivision
one of section thirty-one hundred two-e of the public authorities law
regardless of the ten million dollar limitation expressed in subpara-
graph one of such paragraph. IN THE CASE OF A COMBINED REPORT, EACH
CORPORATION INCLUDED IN THE COMBINED REPORT MUST QUALIFY AS A QUALIFIED
EMERGING TECHNOLOGY COMPANY IN ORDER FOR THE PREFERENTIAL TAX RATES
PROVIDED BY THIS PARAGRAPH TO APPLY. A taxpayer or, in the case of a
combined report, a combined group, that does not satisfy the principally
engaged test may be a qualified New York manufacturer if the taxpayer or
the combined group employs during the taxable year at least two thousand
five hundred employees in manufacturing in New York and the taxpayer or
the combined group has property in the state used in manufacturing, the
adjusted basis of which for federal income tax purposes at the close of
the taxable year is at least one hundred million dollars.
S 19. Subparagraph 1 of paragraph (d) of subdivision 1 of section 210
of the tax law, as amended by section 12 of part A of chapter 59 of the
laws of 2014, is amended to read as follows:
(1) (A) The amount prescribed by this paragraph for New York S corpo-
rations, OTHER THAN NEW YORK S CORPORATIONS THAT ARE QUALIFIED NEW YORK
MANUFACTURERS OR QUALIFIED EMERGING TECHNOLOGY COMPANIES, will be deter-
mined in accordance with the following table:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 25
more than $100,000 but not over $250,000 $ 50
more than $250,000 but not over $500,000 $ 175
more than $500,000 but not over $1,000,000 $ 300
more than $1,000,000 but not over $5,000,000 $1,000
more than $5,000,000 but not over $25,000,000 $3,000
Over $25,000,000 $4,500
(B) PROVIDED FURTHER, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH FOR NEW
YORK S CORPORATIONS THAT ARE QUALIFIED NEW YORK MANUFACTURES, AS DEFINED
IN SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF THIS SUBDIVISION, AND FOR NEW
YORK S CORPORATIONS THAT ARE QUALIFIED EMERGING TECHNOLOGY COMPANIES
UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION THIRTY-ONE HUNDRED
A. 6009 64
TWO-E OF THE PUBLIC AUTHORITIES LAW REGARDLESS OF THE TEN MILLION DOLLAR
LIMITATION EXPRESSED IN SUBPARAGRAPH ONE OF SUCH PARAGRAPH (C), WILL BE
DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLES.
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2015 AND BEFORE JANU-
ARY 1, 2016:
IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000 $ 22
MORE THAN $100,000 BUT NOT OVER $250,000 $ 44
MORE THAN $250,000 BUT NOT OVER $500,000 $ 153
MORE THAN $500,000 BUT NOT OVER $1,000,000 $ 263
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $ 877
MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $2,631
OVER $25,000,000 $3,947
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2016 AND BEFORE JANU-
ARY 1, 2018:
IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000 $ 21
MORE THAN $100,000 BUT NOT OVER $250,000 $ 42
MORE THAN $250,000 BUT NOT OVER $500,000 $ 148
MORE THAN $500,000 BUT NOT OVER $1,000,000 $ 254
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $ 846
MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $2,538
OVER $25,000,000 $3,807
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2018:
IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000 $ 19
MORE THAN $100,000 BUT NOT OVER $250,000 $ 38
MORE THAN $250,000 BUT NOT OVER $500,000 $ 131
MORE THAN $500,000 BUT NOT OVER $1,000,000 $ 225
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $ 750
MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $2,250
OVER $25,000,000 $3,375
(C) Provided further, the amount prescribed by this paragraph for a
qualified New York manufacturer, as defined in subparagraph (vi) of
paragraph (a) of this subdivision, and a qualified emerging technology
company under paragraph (c) of subdivision one of section thirty-one
hundred two-e of the public authorities law regardless of the ten
million dollar limitation expressed in subparagraph one of such para-
graph (c), THAT IS NOT A NEW YORK S CORPORATION, will be determined in
accordance with the following tables[:]. HOWEVER, WITH RESPECT TO QUALI-
FIED NEW YORK MANUFACTURERS, THE AMOUNTS IN THESE TABLES WILL APPLY IN
THE CASE OF A COMBINED REPORT ONLY IF THE COMBINED GROUP SATISFIES THE
REQUIREMENTS TO BE A QUALIFIED NEW YORK MANUFACTURER AS SET FORTH IN
SUCH SUBPARAGRAPH (VI). WITH RESPECT TO QUALIFIED EMERGING TECHNOLOGY
COMPANIES, THE AMOUNTS IN THESE TABLES WILL APPLY IN THE CASE OF A
COMBINED REPORT ONLY IF EACH CORPORATION INCLUDED IN THE COMBINED REPORT
QUALIFIES AS A QUALIFIED EMERGING TECHNOLOGY COMPANY.
[For tax years beginning on or after January 1, 2014 and before January
1, 2015:
A. 6009 65
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 23
more than $100,000 but not over $250,000 $ 68
more than $250,000 but not over $500,000 $ 159
more than $500,000 but not over $1,000,000 $ 454
more than $1,000,000 but not over $5,000,000 $1,362
more than $5,000,000 but not over $25,000,000 $3,178
Over $25,000,000 $4,500]
For tax years beginning on or after January 1, 2015 and before January
1, 2016:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 22
more than $100,000 but not over $250,000 $ 66
more than $250,000 but not over $500,000 $ 153
more than $500,000 but not over $1,000,000 $ 439
more than $1,000,000 but not over $5,000,000 $1,316
more than $5,000,000 but not over $25,000,000 $3,070
Over $25,000,000 $4,385
For tax years beginning on or after January 1, 2016 and before January
1, 2018:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 21
more than $100,000 but not over $250,000 $ 63
more than $250,000 but not over $500,000 $ 148
more than $500,000 but not over $1,000,000 $ 423
more than $1,000,000 but not over $5,000,000 $1,269
more than $5,000,000 but not over $25,000,000 $2,961
Over $25,000,000 $4,230
For tax years beginning on or after January 1, 2018:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 19
more than $100,000 but not over $250,000 $ 56
more than $250,000 but not over $500,000 $ 131
more than $500,000 but not over $1,000,000 $ 375
more than $1,000,000 but not over $5,000,000 $1,125
more than $5,000,000 but not over $25,000,000 $2,625
Over $25,000,000 $3,750
(D) Otherwise, FOR ALL OTHER TAXPAYERS NOT COVERED BY CLAUSES (A), (B)
AND (C) OF THIS SUBPARAGRAPH, the amount prescribed by this paragraph
will be determined in accordance with the following table:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 25
more than $100,000 but not over $250,000 $ 75
more than $250,000 but not over $500,000 $ 175
more than $500,000 but not over $1,000,000 $ 500
more than $1,000,000 but not over $5,000,000 $1,500
more than $5,000,000 but not over $25,000,000 $3,500
more than $25,000,000 but not over $50,000,000 $5,000
A. 6009 66
more than $50,000,000 but not over $100,000,000 $10,000
more than $100,000,000 but not over $250,000,000 $20,000
more than $250,000,000 but not over $500,000,000 $50,000
more than $500,000,000 but not over $1,000,000,000 $100,000
Over $1,000,000,000 $200,000
(E) For purposes of this paragraph, New York receipts are the receipts
included in the numerator of the apportionment factor determined under
section two hundred ten-A for the taxable year.
S 20. Paragraph (f) of subdivision 1 of section 210 of the tax law, as
amended by section 12 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(f) For purposes of this section, the term "small business taxpayer"
shall mean a taxpayer (i) which has an entire net income of not more
than three hundred ninety thousand dollars for the taxable year; (ii)
the aggregate amount of money and other property received by the corpo-
ration for stock, as a contribution to capital, and as paid-in surplus,
does not exceed one million dollars; (iii) which is not part of an
affiliated group, as defined in section 1504 of the internal revenue
code, unless such group, if it had filed a report under this article on
a combined basis, would have itself qualified as a "small business
taxpayer" pursuant to this subdivision; and (iv) which has an average
number of individuals, excluding general executive officers, employed
full-time in the state during the taxable year of one hundred or fewer.
If the taxable period to which subparagraph (i) of this paragraph
applies is less than twelve months, entire net income under such subpar-
agraph shall be placed on an annual basis by multiplying the entire net
income by twelve and dividing the result by the number of months in the
period. For purposes of subparagraph (ii) of this paragraph, the amount
taken into account with respect to any property other than money shall
be the amount equal to the adjusted basis to the corporation of such
property for determining gain, reduced by any liability to which the
property was subject or which was assumed by the corporation. The deter-
mination under the preceding sentence shall be made as of the time the
property was received by the corporation. For purposes of subparagraph
[(iii)] (IV) of this [section] PARAGRAPH, "average number of individ-
uals, excluding general executive officers, employed full-time" shall be
computed by ascertaining the number of such individuals employed by the
taxpayer on the thirty-first day of March, the thirtieth day of June,
the thirtieth day of September and the thirty-first day of December
during each taxable year or other applicable period, by adding together
the number of such individuals ascertained on each of such dates and
dividing the sum so obtained by the number of such dates occurring with-
in such taxable year or other applicable period. An individual employed
full-time means an employee in a job consisting of at least thirty-five
hours per week, or two or more employees who are in jobs that together
constitute the equivalent of a job at least thirty-five hours per week
(full-time equivalent). Full-time equivalent employees in the state
[includes] INCLUDE all employees regularly connected with or working out
of an office or place of business of the taxpayer within the state.
S 21. Subdivision 1 of section 210-A of the tax law, as added by
section 16 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
1. General. Business income and capital shall be apportioned to the
state by the apportionment factor determined pursuant to this section.
The apportionment factor is a fraction, determined by including only
A. 6009 67
those receipts, net income, net gains, and other items described in this
section that are included in the computation of the taxpayer's business
income (DETERMINED WITHOUT REGARD TO THE MODIFICATION PROVIDED IN
SUBPARAGRAPH NINETEEN OF PARAGRAPH (A) OF SUBDIVISION NINE OF SECTION
TWO HUNDRED EIGHT OF THIS ARTICLE) for the taxable year. The numerator
of the apportionment fraction shall be equal to the sum of all the
amounts required to be included in the numerator pursuant to the
provisions of this section and the denominator of the apportionment
fraction shall be equal to the sum of all the amounts required to be
included in the denominator pursuant to the provisions of this section.
S 22. Paragraph (c) of subdivision 2 of section 210-A of the tax law,
as added by section 16 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(c) Receipts from sales of tangible personal property and electricity
that are traded as commodities, as [described] THE TERM "COMMODITY" IS
DEFINED in section 475 of the internal revenue code, are included in the
apportionment fraction in accordance with clause (I) of subparagraph two
of paragraph (a) of subdivision five of this section.
S 23. The opening paragraph and paragraph 1 of paragraph (a) of subdi-
vision 5 of section 210-A of the tax law, as added by section 16 of part
A of chapter 59 of the laws of 2014, are amended to read as follows:
A financial instrument is a "qualified financial instrument" if it is
ELIGIBLE OR REQUIRED TO BE marked to market under section 475 or section
1256 of the internal revenue code, provided that loans secured by real
property shall not be qualified financial instruments. A financial
instrument is a "nonqualified financial instrument" if it is not a qual-
ified financial instrument.
(1) Fixed percentage method for qualified financial instruments. In
determining the inclusion of receipts and net gains from qualified
financial instruments in the apportionment fraction, taxpayers may elect
to use the fixed percentage method described in this subparagraph for
qualified financial instruments. The election is irrevocable, applies to
all qualified financial instruments, and must be made on an annual basis
on the taxpayer's original, timely filed return. If the taxpayer elects
the fixed percentage method, then all income, gain or loss, INCLUDING
MARKED TO MARKET NET GAINS AS DEFINED IN CLAUSE (J) OF SUBPARAGRAPH TWO
OF THIS PARAGRAPH, from qualified financial instruments constitutes
business income, gain or loss. If the taxpayer does not elect to use the
fixed percentage method, then receipts and net gains are included in the
apportionment fraction in accordance with the customer sourcing method
described in subparagraph two of this paragraph. Under the fixed
percentage method, eight percent of all net income (not less than zero)
from qualified financial instruments is included in the numerator of the
apportionment fraction. All net income (not less than zero) from quali-
fied financial instruments is included in the denominator of the appor-
tionment fraction.
S 24. Subclause (iv) of clause (A) of subparagraph 2 of paragraph (a)
of subdivision 5 of section 210-A of the tax law, as added by section 16
of part A of chapter 59 of the laws of 2014, is amended to read as
follows:
(iv) Net gains (not less than zero) from sales of loans not secured by
real property are included in the numerator of the apportionment frac-
tion as provided in this subclause. The amount of net gains from the
sale of loans not secured by real property included in the numerator of
the apportionment fraction is determined by multiplying the net gains by
a fraction, the numerator of which is the amount of gross proceeds from
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sales of loans not secured by real property to purchasers located within
the state and the denominator of which is the amount of gross [receipts]
PROCEEDS from sales of loans not secured by real property to purchasers
located within and without the state. Gross proceeds shall be determined
after the deduction of any cost incurred to acquire the loans but shall
not be less than zero. Net gains (not less than zero) from sales of
loans not secured by real property are included in the denominator of
the apportionment fraction.
S 25. Clause (A) of subparagraph 2 of paragraph (a) of subdivision 5
of section 210-A of the tax law is amended by adding a new subclause (v)
to read as follows:
(V) FOR PURPOSES OF THIS SUBDIVISION, A LOAN IS SECURED BY REAL PROP-
ERTY IF FIFTY PERCENT OR MORE OF THE VALUE OF THE COLLATERAL USED TO
SECURE THE LOAN, WHEN VALUED AT FAIR MARKET VALUE AS OF THE TIME THE
LOAN WAS ENTERED INTO, CONSISTS OF REAL PROPERTY.
S 26. Subparagraph 2 of paragraph (a) of subdivision 5 of section
210-A of the tax law is amended by adding a new clause (J) to read as
follows:
(J) MARKED TO MARKET NET GAINS. (I) FOR PURPOSES OF THIS CLAUSE,
"MARKED TO MARKET" MEAN THAT A FINANCIAL INSTRUMENT IS, UNDER SECTION
475 OR SECTION 1256 OF THE INTERNAL REVENUE CODE, TREATED BY THE TAXPAY-
ER AS SOLD FOR ITS FAIR MARKET VALUE ON THE LAST BUSINESS DAY OF THE
TAXPAYER'S TAXABLE YEAR. "MARKED TO MARKET GAIN OR LOSS" MEANS THE GAIN
OR LOSS RECOGNIZED BY THE TAXPAYER UNDER SECTION 475 OR SECTION 1256 OF
THE INTERNAL REVENUE CODE BECAUSE THE FINANCIAL INSTRUMENT IS TREATED AS
SOLD FOR ITS FAIR MARKET VALUE ON THE LAST BUSINESS DAY OF THE TAXABLE
YEAR.
(II) THE AMOUNT OF MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO)
FROM EACH TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET INCLUDED
IN THE NUMERATOR OF THE APPORTIONMENT FRACTION IS DETERMINED BY MULTI-
PLYING THE MARKED TO MARKET NET GAINS (BUT NOT LESS THAN ZERO) FROM SUCH
TYPE OF THE FINANCIAL INSTRUMENT BY A FRACTION, THE NUMERATOR OF WHICH
IS THE NUMERATOR OF THE APPORTIONMENT FRACTION FOR THE NET GAINS FROM
THAT TYPE OF FINANCIAL INSTRUMENT DETERMINED UNDER THE APPLICABLE CLAUSE
OF THIS SUBPARAGRAPH AND THE DENOMINATOR OF WHICH IS THE DENOMINATOR OF
THE APPORTIONMENT FRACTION FOR THE NET GAINS FOR THAT TYPE OF FINANCIAL
INSTRUMENT DETERMINED UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH.
MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM FINANCIAL INSTRU-
MENTS FOR WHICH THE NUMERATOR OF THE APPORTIONMENT FRACTION IS DETER-
MINED UNDER THE IMMEDIATELY PRECEDING SENTENCE ARE INCLUDED IN THE
DENOMINATOR OF THE APPORTIONMENT FRACTION.
(III) IF THE TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET IS
NOT OTHERWISE SOURCED BY THE TAXPAYER UNDER THIS SUBPARAGRAPH, OR IF THE
TAXPAYER HAS A NET LOSS FROM THE SALES OF THAT TYPE OF FINANCIAL INSTRU-
MENT UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH, THE AMOUNT OF
MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM THAT TYPE OF FINAN-
CIAL INSTRUMENT INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRACTION
IS DETERMINED BY MULTIPLYING THE MARKED TO MARKET NET GAINS (BUT NOT
LESS THAN ZERO) FROM THAT TYPE OF FINANCIAL INSTRUMENT BY A FRACTION,
THE NUMERATOR OF WHICH IS THE SUM OF THE AMOUNT OF RECEIPTS INCLUDED IN
THE NUMERATOR OF THE APPORTIONMENT FRACTION UNDER CLAUSES (A), (B), (C),
(D), (E), (F), (G), (H) OR (I) OF THIS SUBPARAGRAPH AND SUBCLAUSE (II)
OF THIS CLAUSE, AND THE DENOMINATOR OF WHICH IS THE SUM OF THE AMOUNT OF
RECIEPTS INCLUDED IN THE DENOMINATOR OF THE APPORTIONMENT FRACTION UNDER
CLAUSES (A), (B), (C), (D), (E), (F), (G), (H) OR (I) AND SUBCLAUSE (II)
OF THIS CLAUSE. MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FOR
A. 6009 69
WHICH THE AMOUNT TO BE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT
FRACTION IS DETERMINED UNDER THE IMMEDIATELY PRECEDING SENTENCE ARE
INCLUDED IN THE DENOMINATOR OF THE APPORTIONMENT FRACTION.
S 27. Paragraph (e) of subdivision 5 of section 210-A of the tax law,
as added by section 16 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(e) For purposes of this subdivision, a taxpayer shall use the follow-
ing hierarchy to determine the commercial domicile of a business entity,
based on the information known to the taxpayer or information that would
be known upon reasonable inquiry: (i) [the location of the treasury
function of the business entity; (ii)] the seat of management and
control of the business entity; and [(iii)] (II) the billing address of
the business entity in the taxpayer's records. The taxpayer must exer-
cise due diligence before rejecting [a] THE FIRST method in this hierar-
chy and proceeding to the next method.
S 28. Section 210-A of the tax law is amended by adding a new subdivi-
sion 6-a to read as follows:
6-A. RECEIPTS FROM THE OPERATION OF VESSELS. RECEIPTS FROM THE OPERA-
TION OF VESSELS ARE INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRAC-
TION AS FOLLOWS. THE AMOUNT OF RECEIPTS FROM THE OPERATION OF VESSELS
INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FRACTION IS DETERMINED BY
MULTIPLYING THE AMOUNT OF SUCH RECEIPTS BY A FRACTION, THE NUMERATOR OF
WHICH IS THE AGGREGATE NUMBER OF WORKING DAYS OF THE VESSELS OWNED OR
LEASED BY THE TAXPAYER IN TERRITORIAL WATERS OF THE STATE DURING THE
PERIOD COVERED BY THE TAXPAYER'S REPORT AND THE DENOMINATOR OF WHICH IS
THE AGGREGATE NUMBER OF WORKING DAYS OF ALL VESSELS OWNED OR LEASED BY
THE TAXPAYER DURING SUCH PERIOD.
S 29. The opening paragraph of clause (A) of subparagraph 1 of para-
graph (b) of subdivision 7 of section 210-A of the tax law, as added by
section 16 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
The portion of receipts of a taxpayer from aviation services (other
than services described in paragraph (a) of this subdivision, BUT
INCLUDING THE RECEIPTS OF A QUALIFIED AIR FREIGHT FORWARDER) to be
included in the numerator of the apportionment fraction shall be deter-
mined by multiplying its receipts from such aviation services by a
percentage which is equal to the arithmetic average of the following
three percentages:
S 30. Paragraph (b) of subdivision 7 of section 210-A of the tax law
is amended by adding a new subparagraph 3 to read as follows:
(3) A CORPORATION IS A QUALIFIED AIR FREIGHT FORWARDER WITH RESPECT TO
ANOTHER CORPORATION:
(A) IF IT OWNS OR CONTROLS EITHER DIRECTLY OR INDIRECTLY ALL OF THE
CAPITAL STOCK OF SUCH OTHER CORPORATION, OR IF ALL OF ITS CAPITAL STOCK
IS OWNED OR CONTROLLED EITHER DIRECTLY OR INDIRECTLY BY SUCH OTHER
CORPORATION, OR IF ALL OF THE CAPITAL STOCK OF BOTH CORPORATIONS IS
OWNED OR CONTROLLED EITHER DIRECTLY OR INDIRECTLY BY THE SAME INTERESTS,
(B) IF IT IS PRINCIPALLY ENGAGED IN THE BUSINESS OF AIR FREIGHT
FORWARDING, AND
(C) IF ITS AIR FREIGHT FORWARDING BUSINESS IS CARRIED ON PRINCIPALLY
WITH THE AIRLINE OR AIRLINES OPERATED BY SUCH OTHER CORPORATION.
S 31. Subparagraph (i) of paragraph (b) and paragraph (d) of subdivi-
sion 1 of section 210-B of the tax law, as added by section 17 of part A
of chapter 59 of the laws of 2014, are amended to read as follows:
(i) A credit shall be allowed under this subdivision with respect to
tangible personal property and other tangible property, including build-
A. 6009 70
ings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (A) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture, horti-
culture, floriculture, viticulture or commercial fishing, (B) industrial
waste treatment facilities or air pollution control facilities, used in
the taxpayer's trade or business, (C) research and development property,
or (D) principally used in the ordinary course of the taxpayer's trade
or business as a broker or dealer in connection with the purchase or
sale (which shall include but not be limited to the issuance, entering
into, assumption, offset, assignment, termination, or transfer) of
stocks, bonds or other securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
defined in section four hundred seventy-five (e) of the Internal Revenue
Code, (E) principally used in the ordinary course of the taxpayer's
trade or business of providing investment advisory services for a regu-
lated investment company as defined in section eight hundred fifty-one
of the Internal Revenue Code, or lending, loan arrangement or loan orig-
ination services to customers in connection with the purchase or sale
(which shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of securities
as defined in section four hundred seventy-five (c)(2) of the Internal
Revenue Code, (F) [originally] PRINCIPALLY used in the ordinary course
of the taxpayer's business as an exchange registered as a national secu-
rities exchange within the meaning of sections 3(a)(1) and 6(a) of the
Securities Exchange Act of 1934 or a board of trade as defined in
[section 1410(a)(1) of the New York Not-for-Profit Corporation Law]
SUBPARAGRAPH ONE OF PARAGRAPH (A) OF SECTION FOURTEEN HUNDRED TEN OF THE
NOT-FOR-PROFIT CORPORATION LAW or as an entity that is wholly owned by
one or more such national securities exchanges or boards of trade and
that provides automation or technical services thereto, or (G) princi-
pally used as a qualified film production facility including qualified
film production facilities having a situs in an empire zone designated
as such pursuant to article eighteen-B of the general municipal law,
where the taxpayer is providing three or more services to any qualified
film production company using the facility, including such services as a
studio lighting grid, lighting and grip equipment, multi-line phone
service, broadband information technology access, industrial scale elec-
trical capacity, food services, security services, and heating, venti-
lation and air conditioning. FOR PURPOSES OF CLAUSES (D), (E) AND (F) OF
THIS SUBPARAGRAPH, PROPERTY PURCHASED BY A TAXPAYER AFFILIATED WITH A
REGULATED BROKER, DEALER, REGISTERED INVESTMENT ADVISOR, NATIONAL SECU-
RITIES EXCHANGE OR BOARD OF TRADE, IS ALLOWED A CREDIT UNDER THIS SUBDI-
VISION IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED BROKER, DEAL-
ER, REGISTERED INVESTMENT ADVISOR, NATIONAL SECURITIES EXCHANGE OR BOARD
OF TRADE IN ACCORDANCE WITH THIS SUBDIVISION. FOR PURPOSES OF DETERMIN-
ING IF THE PROPERTY IS PRINCIPALLY USED IN QUALIFYING USES, THE USES BY
THE TAXPAYER DESCRIBED IN CLAUSES (D) AND (E) OF THIS SUBPARAGRAPH MAY
BE AGGREGATED. IN ADDITION, THE USES BY THE TAXPAYER, ITS AFFILIATED
REGULATED BROKER, DEALER AND REGISTERED INVESTMENT ADVISOR UNDER EITHER
OR BOTH OF THOSE CLAUSES MAY BE AGGREGATED. Provided, however, a taxpay-
er shall not be allowed the credit provided by clauses (D), (E) and (F)
of this subparagraph unless THE PROPERTY IS FIRST PLACED IN SERVICE
A. 6009 71
BEFORE OCTOBER FIRST, TWO THOUSAND FIFTEEN AND (i) eighty percent or
more of the employees performing the administrative and support func-
tions resulting from or related to the qualifying uses of such equipment
are located in this state or (ii) the average number of employees that
perform the administrative and support functions resulting from or
related to the qualifying uses of such equipment and are located in this
state during the taxable year for which the credit is claimed is equal
to or greater than ninety-five percent of the average number of employ-
ees that perform these functions and are located in this state during
the thirty-six months immediately preceding the year for which the cred-
it is claimed, or (iii) the number of employees located in this state
during the taxable year for which the credit is claimed is equal to or
greater than ninety percent of the number of employees located in this
state on December thirty-first, nineteen hundred ninety-eight or, if the
taxpayer was not a calendar year taxpayer in nineteen hundred ninety-
eight, the last day of its first taxable year ending after December
thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes
subject to tax in this state after the taxable year beginning in nine-
teen hundred ninety-eight, then the taxpayer is not required to satisfy
the employment test provided in the preceding sentence of this subpara-
graph for its first taxable year. For purposes of clause (iii) of this
subparagraph the employment test will be based on the number of employ-
ees located in this state on the last day of the first taxable year the
taxpayer is subject to tax in this state. If the uses of the property
must be aggregated to determine whether the property is principally used
in qualifying uses, then either each affiliate using the property must
satisfy this employment test or this employment test must be satisfied
through the aggregation of the employees of the taxpayer, its affiliated
regulated broker, dealer, and registered investment adviser using the
property. For purposes of this subdivision, the term "goods" shall not
include electricity.
(d) Except as otherwise provided in this paragraph, the credit allowed
under this subdivision for any taxable year shall not reduce the tax due
for such year to less than the [higher of the amounts prescribed in
paragraphs (c) and] FIXED DOLLAR MINIMUM AMOUNT PRESCRIBED IN PARAGRAPH
(d) of subdivision one of [this] section TWO HUNDRED TEN OF THIS
ARTICLE. However, if the amount of credit allowable under this subdivi-
sion for any taxable year reduces the tax to such amount OR IF THE
TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
any amount of credit allowed for a taxable year commencing prior to
January first, nineteen hundred eighty-seven and not deductible in such
taxable year may be carried over to the following year or years and may
be deducted from the taxpayer's tax for such year or years but in no
event shall such credit be carried over to taxable years commencing on
or after January first, two thousand two, and any amount of credit
allowed for a taxable year commencing on or after January first, nine-
teen hundred eighty-seven and not deductible in such year may be carried
over to the fifteen taxable years next following such taxable year and
may be deducted from the taxpayer's tax for such year or years. In lieu
of such carryover, any such taxpayer which qualifies as a new business
under paragraph [(j)] (F) of this subdivision may elect to treat the
amount of such carryover as an overpayment of tax to be credited or
refunded in accordance with the provisions of section ten hundred eight-
y-six of this chapter, provided, however, the provisions of subsection
(c) of section ten hundred eighty-eight of this chapter notwithstanding,
no interest shall be paid thereon.
A. 6009 72
S 32. Subdivision 27 of section 210-B of the tax law, as added by
section 17 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
27. Credits of New York S corporations. (a) General. Notwithstanding
the provisions of this section, no carryover of credit allowable in a
New York C year shall be deducted from the tax otherwise due under this
article in a New York S year, and no credit allowable in a New York S
year, or carryover of such credit, shall be deducted from the tax
imposed by this article. However, a New York S year shall be treated as
a taxable year for purposes of determining the number of taxable years
to which a credit may be carried over under this section. Notwithstand-
ing the first sentence of this subdivision, however, the credit for the
special additional mortgage recording tax shall be allowed as provided
in subdivision [fifteen] NINE of this section, and the carryover of any
such credit shall be determined without regard to whether the credit is
carried from a New York C year to a New York S year or vice-versa.
S 33. Subdivision 1, subparagraphs (i) and (ii) of paragraph (d) and
paragraphs (d-1) and (e) of subdivision 4, and subdivision 7 of section
210-C of the tax law, as added by section 18 of part A of chapter 59 of
the laws of 2014, are amended to read as follows:
1. Tax. (A) The tax on a combined report shall be the highest of (i)
the combined business income base multiplied by the tax rate specified
in paragraph (a) of subdivision one of section two hundred ten of this
article; (ii) the combined capital base multiplied by the tax rate spec-
ified in paragraph (b) of subdivision one of section two hundred ten of
this article, but not exceeding the limitation provided for in that
paragraph (b); or (iii) the fixed dollar minimum that is attributable to
the designated agent of the combined group. In addition, the tax on a
combined report shall include the fixed dollar minimum tax specified in
paragraph (d) of subdivision one of section two hundred ten of this
article for each member of the combined group, other than the designated
agent, that is a taxpayer.
(b) The combined business income base is the amount of the combined
business income of the combined group that is apportioned to the state,
reduced by any PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION AND ANY
net operating loss deduction for the combined group. The combined capi-
tal base is the amount of the combined capital of the combined group
that is apportioned to the state.
(i) A net operating loss deduction is allowed in computing the
combined business income base. Such deduction may reduce the tax on the
combined business income base to the higher of the tax on the combined
capital base or the fixed dollar minimum amount that is attributable to
the designated agent of the combined group. A combined net operating
loss deduction is equal to the amount of combined net operating loss or
losses from one or more taxable years that are carried forward OR
CARRIED BACK to a particular [income] TAXABLE year. A combined net oper-
ating loss is the combined business loss incurred in a particular taxa-
ble year multiplied by the combined apportionment factor for that year
determined as provided in subdivision five of this section.
(ii) The combined net operating loss deduction and combined net oper-
ating loss are also subject to the provisions contained in clauses one
through [six] SEVEN of subparagraph (ix) of paragraph (a) of subdivision
one of section two hundred ten of this article.
(d-1) A PRIOR net operating loss conversion subtraction is allowed in
computing the combined business income base, as provided in subparagraph
(viii) of paragraph (a) of subdivision one of section two hundred ten of
A. 6009 73
this article. Such subtraction may reduce the tax on the combined busi-
ness income base to the higher of the tax on the combined capital base
or the fixed dollar minimum amount that is attributable to the desig-
nated agent of the combined group.
(e) Any election made pursuant to paragraph (b) of subdivision six,
[and] paragraphs (b) and (c) of subdivision six-a of section two hundred
eight, AND ITEM (IV) OF SUBCLAUSE TWO OF CLAUSE (B) OF SUBPARAGRAPH
(VIII) AND CLAUSE SEVEN OF SUBPARAGRAPH (IX) OF PARAGRAPH (A) OF SUBDI-
VISION ONE OF SECTION TWO HUNDRED TEN of this article shall apply to all
members of the combined group.
7. Designated agent. Each combined group shall have one designated
agent FOR THE COMBINED GROUP, which shall be a taxpayer. [The designated
agent is the parent corporation of the combined group. If there is no
such parent corporation, or the parent corporation is not a taxpayer,
then another member of the combined group that is a taxpayer may be
appointed as the designated agent.] Only the designated agent may act on
behalf of the members of the combined group for matters relating to the
combined report.
S 34. Paragraph 1 of subdivision (c) of section 40 of the tax law, as
added by section 4 of part A of chapter 68 of the laws of 2013, is
amended to read as follows:
(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] TWO of section [two hundred
ten] TWO HUNDRED NINE-B of this chapter; and
S 35. Clause (ii) of subparagraph (B) of paragraph 2 of subdivision
(d) of section 40 of the tax law, as added by section 4 of part A of
chapter 68 of the laws of 2013, is amended to read as follows:
(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] BUSINESS income [or minimum taxable income] and the
term "partner's entire income" means [entire net] BUSINESS income [or
minimum taxable income], allocated within the state. For purposes of
article twenty-two of this chapter, the term "partner's income from the
partnership" means partnership items of income, gain, loss and
deduction, and New York modifications thereto, entering into New York
adjusted gross income, and the term "partner's entire income" means New
York adjusted gross income.
S 36. Subparagraph (C) of paragraph 2 of subdivision (d) of section 40
of the tax law, as added by section 4 of part A of chapter 68 of the
laws of 2013, is amended to read as follows:
(C) (I) Where the taxpayer is a shareholder of a New York S corpo-
ration that is a business located in a tax-free NY area, the sharehold-
er's tax factor shall be that portion of the amount determined in para-
graph one of this subdivision that is attributable to the income of the
S corporation. Such attribution shall be made in accordance with the
ratio of the shareholder's income from the S corporation allocated with-
in the state, entering into New York adjusted gross income, to the
shareholder's New York adjusted gross income, or in accordance with such
A. 6009 74
other methods as the commissioner may prescribe as providing an appor-
tionment that reasonably reflects the portion of the shareholder's tax
attributable to the income of such business. The income of the S corpo-
ration allocated within the state shall be determined by multiplying the
income of the S corporation by [the] A 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)] THAT SHALL BE DETERMINED IN CLAUSE (II) OF THIS SUBPARA-
GRAPH. In no event may the ratio so determined exceed 1.0.
(II) THE BUSINESS ALLOCATION FACTOR FOR PURPOSES OF THIS SUBPARAGRAPH
SHALL BE COMPUTED BY ADDING TOGETHER THE PROPERTY FACTOR SPECIFIED IN
SUBCLAUSE (I) OF THIS CLAUSE, THE WAGE FACTOR SPECIFIED IN SUBCLAUSE
(II) OF THIS CLAUSE AND THE APPORTIONMENT FACTOR DETERMINED UNDER
SECTION TWO HUNDRED TEN-A OF THIS CHAPTER AND DIVIDING BY THREE.
(I) THE PROPERTY FACTOR SHALL BE DETERMINED BY ASCERTAINING THE
PERCENTAGE THAT THE AVERAGE VALUE OF THE BUSINESS'S REAL AND TANGIBLE
PERSONAL PROPERTY, WHETHER OWNED OR RENTED TO IT, WITHIN THE STATE
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 AND WITHOUT THE STATE DURING SUCH
PERIOD; PROVIDED THAT THE TERM "VALUE OF THE BUSINESS'S REAL AND TANGI-
BLE PERSONAL PROPERTY" SHALL HAVE THE SAME MEANING AS SUCH TERM HAS IN
PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWO HUNDRED NINE-B OF THIS
CHAPTER.
(II) THE WAGE FACTOR SHALL BE DETERMINED BY ASCERTAINING THE PERCENT-
AGE THAT THE TOTAL WAGES, SALARIES AND OTHER PERSONAL SERVICE COMPEN-
SATION, SIMILARLY COMPUTED, DURING SUCH PERIOD OF EMPLOYEES, EXCEPT
GENERAL EXECUTIVE OFFICERS, EMPLOYED AT THE BUSINESS'S LOCATION OR
LOCATIONS WITHIN THE STATE, BEARS TO THE TOTAL WAGES, SALARIES AND OTHER
PERSONAL SERVICE COMPENSATION, SIMILARLY COMPUTED, DURING SUCH PERIOD,
OF ALL THE BUSINESS'S EMPLOYEES WITHIN AND WITHOUT THE STATE, EXCEPT
GENERAL EXECUTIVE OFFICERS.
S 37. Subparagraph (B) of paragraph 3 of subdivision (d) of section 40
of the tax law, as added by section 4 of part A of chapter 68 of the
laws of 2013, is amended to read as follows:
(B) The term "income of the business located in a tax-free NY area"
means [entire net] BUSINESS income [or minimum taxable income] calcu-
lated as if the taxpayer was filing separately and the term "combined
group's income" means [entire net] BUSINESS income [or minimum taxable
income] as shown on the combined report, allocated within the state.
S 38. Paragraph 1 of subdivision (e) of section 40 of the tax law, as
added by section 4 of part A of chapter 68 of the laws of 2013, is
amended to read as follows:
(1) Article 9-A: section [210] 210-B, subdivision [47] 41.
S 39. Paragraph 1 of subsection (i) of section 660 of the tax law, as
amended by section 74 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
(1) Notwithstanding the provisions in subsection (a) of this section,
in the case of an eligible S corporation for which the election under
subsection (a) of this section is not in effect for the current taxable
year, the shareholders of an eligible S corporation are deemed to have
made that election effective for the eligible S corporation's entire
current taxable year, if the eligible S corporation's investment income
for the current taxable year is more than fifty percent of its federal
gross income for such year. In determining WHETHER an eligible S [corpo-
ration's investment income] CORPORATION IS DEEMED TO HAVE MADE THAT
A. 6009 75
ELECTION, the [investment] income of a qualified subchapter S subsidiary
owned directly or indirectly by the eligible S corporation shall be
included WITH THE INCOME OF THE ELIGIBLE S CORPORATION.
S 40. This act shall take effect immediately and shall be deemed to be
in full force and effect on the same date as part A of chapter 59 of the
laws of 2014.
PART U
Section 1. Paragraph 33 of subdivision (a) of section 1115 of the tax
law, as added by section 99 of part A of chapter 389 of the laws of
1997, is amended to read as follows:
(33) Wine or wine product, AND THE BOTTLES, CORKS, CAPS, AND LABELS
USED TO PACKAGE SUCH WINE OR WINE PRODUCT, furnished by the official
agent of a farm winery, winery, wholesaler, or importer at a wine tast-
ing held in accordance with [section eighty of] the alcoholic beverage
control law to a customer or prospective customer who consumes such wine
at such wine tasting.
S 2. Section 1118 of the tax law is amended by adding a new subdivi-
sion (13) to read as follows:
(13) IN RESPECT TO THE USE OF THE FOLLOWING ITEMS AT A TASTING HELD BY
A LICENSED BREWERY, FARM BREWERY, CIDER PRODUCER, FARM CIDERY, DISTIL-
LERY OR FARM DISTILLERY IN ACCORDANCE WITH THE ALCOHOLIC BEVERAGE
CONTROL LAW: (I) THE ALCOHOLIC BEVERAGE OR BEVERAGES AUTHORIZED BY THE
ALCOHOLIC BEVERAGE CONTROL LAW TO BE FURNISHED AT NO CHARGE TO A CUSTOM-
ER OR PROSPECTIVE CUSTOMER AT SUCH TASTING FOR CONSUMPTION AT SUCH TAST-
ING; AND (II) BOTTLES, CORKS, CAPS AND LABELS USED TO PACKAGE SUCH ALCO-
HOLIC BEVERAGES.
S 3. This act shall take effect immediately, provided, however,
section two of this act shall take effect June 1, 2015 and shall apply
in accordance with the transition provisions of section 1106 and 1217 of
the tax law.
PART V
Section 1. Paragraph 22 of subdivision (b) of section 1101 of the tax
law, as amended by chapter 651 of the laws of 1999, is amended to read
as follows:
(22) (A) "Prepaid telephone calling service" means the right to exclu-
sively purchase telecommunication services, that must be paid for in
advance and enable the origination of one or more intrastate, interstate
or international telephone calls using an access number (such as a toll
free network access number) and/or authorization code, whether manually
or electronically dialed, for which payment to a vendor must be made in
advance, whether or not that right is represented by the transfer by the
vendor to the purchaser of an item of tangible personal property. SUCH
TERM INCLUDES A PREPAID MOBILE CALLING SERVICE. In no event shall a
credit card constitute a prepaid telephone calling service. If the sale
or recharge of a prepaid telephone calling service does not take place
at the vendor's place of business, it shall be conclusively determined
to take place at the purchaser's shipping address or, if there is no
item shipped, at the purchaser's billing address or the location associ-
ated with the purchaser's mobile telephone number, OR, IF THE VENDOR
DOES NOT HAVE THE ADDRESS OR THE LOCATION ASSOCIATED WITH THE CUSTOMER'S
MOBILE TELEPHONE NUMBER, AT SUCH ADDRESS, AS APPROVED BY THE COMMISSION-
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ER, THAT REASONABLY REFLECTS THE CUSTOMER'S LOCATION AT THE TIME OF THE
SALE OR RECHARGE.
(B) "PREPAID MOBILE CALLING SERVICE" MEANS THE RIGHT TO USE A COMMER-
CIAL MOBILE RADIO SERVICE, WHETHER OR NOT SOLD WITH OTHER PROPERTY OR
SERVICES, THAT MUST BE PAID FOR IN ADVANCE AND IS SOLD IN PREDETERMINED
UNITS OR DOLLARS THAT DECLINE WITH USE IN A KNOWN AMOUNT, WHETHER OR NOT
THAT RIGHT IS REPRESENTED BY OR INCLUDES THE TRANSFER TO THE PURCHASER
OF AN ITEM OF TANGIBLE PERSONAL PROPERTY.
S 2. This act shall take effect immediately.
PART W
Intentionally Omitted
PART X
Section 1. Section 1101 of the tax law is amended by adding a new
subdivision (e) to read as follows:
(E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED
UNDER SUBDIVISIONS (A) THROUGH (F) OF SECTION ELEVEN HUNDRED FIVE OF
THIS ARTICLE AND BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE
FOLLOWING TERMS SHALL MEAN:
(1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH
A MARKETPLACE SELLER, FACILITATES A SALE, OCCUPANCY, OR ADMISSION BY
SUCH MARKETPLACE SELLER. A PERSON "FACILITATES A SALE, OCCUPANCY, OR
ADMISSION" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF
THE FOLLOWING CONDITIONS: (I) SUCH PERSON, OR AN AFFILIATED PERSON,
COLLECTS THE RECEIPTS, RENT, OR AMUSEMENT CHARGE PAID BY A CUSTOMER,
OCCUPANT OR PATRON TO A MARKETPLACE SELLER; AND (II) SUCH PERSON
PERFORMS EITHER OF THE FOLLOWING ACTIVITIES: (A) PROVIDES THE FORUM IN
WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE OFFER OF OCCU-
PANCY OR ADMISSION IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, OR AN
INTERNET WEBSITE, CATALOG, OR A SIMILAR FORUM; OR (B) ARRANGES FOR THE
EXCHANGE OF INFORMATION OR MESSAGES BETWEEN THE CUSTOMER, OCCUPANT, OR
PATRON, AS THE CASE MAY BE, AND THE MARKETPLACE SELLER. A PERSON WHO
VOLUNTARILY REGISTERS TO COLLECT TAX AS A MARKETPLACE PROVIDER UNDER
SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS ARTICLE SHALL ALSO QUALIFY AS
A MARKETPLACE PROVIDER. FOR PURPOSES OF THIS PARAGRAPH, TWO PERSONS ARE
AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE
PERCENT, WHETHER DIRECT OR INDIRECT, IN THE OTHER, OR WHERE AN OWNERSHIP
INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IS HELD
IN EACH OF SUCH PERSONS BY ANOTHER PERSON OR BY A GROUP OF OTHER PERSONS
WHICH ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER.
(2) MARKETPLACE SELLER. ANY PERSON, WHETHER OR NOT SUCH PERSON IS
REQUIRED TO REGISTER TO COLLECT TAX UNDER SECTION ELEVEN HUNDRED THIR-
TY-FOUR OF THIS ARTICLE, WHO (I) HAS AN AGREEMENT WITH A MARKETPLACE
PROVIDER UNDER WHICH THE MARKETPLACE PROVIDER WILL FACILITATE SALES,
OCCUPANCIES OR ADMISSIONS FOR SUCH PERSON WITHIN THE MEANING OF PARA-
GRAPH ONE OF THIS SUBDIVISION; AND (II) SATISFIES AT LEAST ONE OF THE
FOLLOWING CONDITIONS: (A) SELLS TANGIBLE PERSONAL PROPERTY OR THE
SERVICES DESCRIBED IN SUBDIVISIONS (A), (B) AND (C) OF SECTION ELEVEN
HUNDRED FIVE OF THIS ARTICLE; (B) OPERATES A RESTAURANT, TAVERN OR OTHER
ESTABLISHMENT, OR ACTS AS A CATERER, WHO SELLS FOOD AND DRINK OR MAKES
OTHER CHARGES TAXABLE UNDER SUBDIVISION (D) OF SUCH SECTION ELEVEN
HUNDRED FIVE OF THIS ARTICLE; (C) IS AN OPERATOR OF A HOTEL; OR (D) IS A
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RECIPIENT AS DEFINED BY PARAGRAPH ELEVEN OF SUBDIVISION (D) OF THIS
SECTION.
S 2. Subdivision 1 of section 1131 of the tax law, as amended by chap-
ter 576 of the laws of 1994, is amended to read as follows:
(1) "Persons required to collect tax" or "person required to collect
any tax imposed by this article" shall include: every vendor of tangible
personal property or services; every recipient of amusement charges;
[and] every operator of a hotel, AND EVERY MARKETPLACE PROVIDER WITH
RESPECT TO SALES, OCCUPANCIES, OR ADMISSIONS FACILITATED BY IT AS
DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED
ONE OF THIS ARTICLE. Said terms shall also include any officer, direc-
tor or employee of a corporation or of a dissolved corporation, any
employee of a partnership, any employee or manager of a limited liabil-
ity company, or any employee of an individual proprietorship who as such
officer, director, employee or manager is under a duty to act for such
corporation, partnership, limited liability company or individual
proprietorship in complying with any requirement of this article; and
any member of a partnership or limited liability company. Provided,
however, that any person who is a vendor solely by reason of clause (D)
or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of
section eleven hundred one shall not be a "person required to collect
any tax imposed by this article" until twenty days after the date by
which such person is required to file a certificate of registration
pursuant to section eleven hundred thirty-four.
S 3. Section 1132 of the tax law is amended by adding a new subdivi-
sion (l) to read as follows:
(L)(1) A MARKETPLACE PROVIDER: (I) SHALL COMPLY WITH ALL THE
PROVISIONS OF THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER AND
OF ANY REGULATIONS ADOPTED PURSUANT THERETO, AND TO ALL THE REQUIREMENTS
AND OBLIGATIONS THEREOF, INCLUDING THE RIGHT TO ACCEPT A CERTIFICATE OR
OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION OR
EXCLUSION FROM TAX, AND HAVE ALL THE DUTIES, BENEFITS AND ENTITLEMENTS
OF A PERSON REQUIRED TO COLLECT TAX UNDER THIS ARTICLE AND PURSUANT TO
THE AUTHORITY OF SUCH ARTICLE TWENTY-NINE WITH RESPECT TO SUCH SALE,
OCCUPANCY, OR ADMISSION, AND SUCH TAX REQUIRED TO BE COLLECTED, AS IF
SUCH MARKETPLACE PROVIDER WERE THE VENDOR, OPERATOR, OR RECIPIENT WITH
RESPECT TO SUCH SALE, OCCUPANCY, OR ADMISSION, INCLUDING THE RIGHT TO
RECEIVE THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE
CREDIT ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN
OF THIS PART; AND (II) SHALL KEEP SUCH RECORDS AND INFORMATION AND COOP-
ERATE WITH THE COMMISSIONER TO ENSURE THE PROPER COLLECTION AND REMIT-
TANCE OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE COLLECTED UNDER THIS
ARTICLE AND SUCH ARTICLE TWENTY-NINE.
(2) A MARKETPLACE SELLER IS NOT A PERSON REQUIRED TO COLLECT TAX FOR
PURPOSES OF THIS SECTION IN REGARD TO A PARTICULAR SALE, OCCUPANCY, OR
ADMISSION SUBJECT TO TAX UNDER SUBDIVISIONS (A) THROUGH (E) OR PARAGRAPH
ONE OF SUBDIVISION (F) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE
IF, IN REGARD TO SUCH SALE, OCCUPANCY OR ADMISSION: (I) THE MARKETPLACE
SELLER CAN SHOW THAT SUCH SALE, OCCUPANCY, OR ADMISSION WAS FACILITATED,
AS DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
HUNDRED ONE OF THIS ARTICLE, BY A MARKETPLACE PROVIDER FROM WHOM SUCH
SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF
COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER CERTIFYING THAT THE
MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT
SALES TAX ON ALL TAXABLE SALES, OCCUPANCIES OR ADMISSIONS BY THE MARKET-
PLACE SELLER AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY
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PRESCRIBE; AND (II) ANY FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT
THE PROPER AMOUNT OF TAX IN REGARD TO SUCH SALE, OCCUPANCY, OR ADMISSION
WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER PROVIDING THE MARKETPLACE
PROVIDER WITH INCORRECT INFORMATION. THIS PROVISION SHALL BE ADMINIS-
TERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH (I) OF PARAGRAPH ONE OF
SUBDIVISION (C) OF THIS SECTION AS IF A CERTIFICATE OF COLLECTION WERE A
RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH SUBPARAGRAPH,
INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH CERTIFICATE OF
COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE MARKETPLACE SELLER.
PROVIDED THAT, WITH REGARD TO ANY SALES, OCCUPANCIES, OR ADMISSIONS SOLD
BY A MARKETPLACE SELLER THAT ARE FACILITATED BY A MARKETPLACE PROVIDER
WHO IS AFFILIATED WITH SUCH MARKETPLACE SELLER WITHIN THE MEANING OF
PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS
ARTICLE, THE MARKETPLACE SELLER SHALL BE DEEMED LIABLE AS A PERSON UNDER
A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR PURPOSES OF SUBDIVISION
ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART.
(3) THE COMMISSIONER MAY, IN HIS OR HER DISCRETION: (I) DEVELOP STAND-
ARD LANGUAGE, OR APPROVE LANGUAGE DEVELOPED BY A MARKETPLACE PROVIDER,
IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON
BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM THE MARKETPLACE PROVIDER
FACILITATES SALES, OCCUPANCIES, OR ADMISSIONS, AS DESCRIBED IN PARAGRAPH
ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE;
AND (II) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH
LANGUAGE IN THE MARKETPLACE PROVIDER'S AGREEMENT WITH A MARKETPLACE
SELLER THAT IS PUBLICLY AVAILABLE WILL HAVE THE SAME EFFECT AS A MARKET-
PLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH
MARKETPLACE PROVIDER UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH.
S 4. Section 1133 of the tax law is amended by adding a new subdivi-
sion (f) to read as follows:
(F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE
MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR-
MATION GIVEN TO THE MARKETPLACE PROVIDER BY THE MARKETPLACE SELLER.
PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE MARKETPLACE
SELLER AND MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF
PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS
ARTICLE.
S 5. This act shall take effect March 1, 2016, and shall apply in
accordance with the transition provisions in sections 1106 and 1217 of
the tax law.
PART Y
Section 1. The tax law is amended by adding a new section 1118-A to
read as follows:
S 1118-A. LIMITATIONS ON TAX AVOIDANCE STRATEGIES. NOTWITHSTANDING
THE PROVISIONS OF THIS ARTICLE OR OTHER LAW TO THE CONTRARY:
(A) THE EXCLUSION IN SUBDIVISION TWO OF SECTION ELEVEN HUNDRED EIGH-
TEEN OF THIS PART FOR PROPERTY OR SERVICES PURCHASED BY A NONRESIDENT OF
THIS STATE SHALL NOT APPLY WHEN A PERSON (OTHER THAN AN INDIVIDUAL)
BRINGS SUCH PROPERTY OR SERVICE INTO THIS STATE FOR USE HERE, UNLESS
SUCH PERSON HAS BEEN DOING BUSINESS OUTSIDE THIS STATE FOR AT LEAST SIX
MONTHS PRIOR TO THE DATE SUCH PERSON BROUGHT SUCH PROPERTY OR SERVICE
INTO THIS STATE.
(B) A SINGLE MEMBER LIMITED LIABILITY COMPANY AND THE MEMBER OF THAT
LIMITED LIABILITY COMPANY SHALL BE DEEMED TO BE ONE PERSON, AND, AMONG
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OTHER THINGS, A PURCHASE OR SALE BY ONE SHALL BE DEEMED TO BE THE
PURCHASE OR SALE BY THE OTHER AND NEITHER OF THEM CAN MAKE A PURCHASE
FOR RESALE TO THE OTHER.
(C) A LEASE OF ANY TANGIBLE PERSONAL PROPERTY BETWEEN RELATED ENTITIES
SHALL BE SUBJECT TO THE PROVISIONS OF SUBDIVISION (I) OF SECTION ELEVEN
HUNDRED ELEVEN OF THIS ARTICLE, INCLUDING THE PROVISIONS, AMONG OTHERS,
RELATING TO LEASES ENTERED INTO OUTSIDE THIS STATE WHERE THE PROPERTY
SUBJECT TO THE LEASE IS THEN BROUGHT INTO THIS STATE, AS IF SUCH SUBDI-
VISION (I) REFERRED TO THE LEASE DESCRIBED IN THIS SUBDIVISION, WITH
SUCH CHANGES AS ARE NECESSARY TO MAKE SUCH PROVISIONS APPLY TO THIS
SUBDIVISION; PROVIDED THAT ANY PAYMENTS DUE UNDER SUCH A LEASE UNDER
THIS SUBDIVISION SHALL BE DUE AT THE INCEPTION OF THE LEASE REGARDLESS
OF THE LENGTH OF THE TERM OF SUCH LEASE, INCLUDING ANY OPTION TO RENEW
OR SIMILAR PROVISION, OR COMBINATION OF THEM; AND PROVIDED FURTHER THAT,
IF THE COMMISSIONER FINDS THAT THE SUM OF ALL SUCH PAYMENTS DUE UNDER
SUCH LEASE DO NOT REFLECT THE TRUE VALUE OR COST OF THE PROPERTY SUBJECT
TO SUCH LEASE, THE COMMISSIONER SHALL BE AUTHORIZED TO ESTIMATE SUCH
TRUE VALUE OR COST FROM SUCH INFORMATION AS MAY BE AVAILABLE, INCLUDING
BY MEANS OF EXTERNAL INDICES, AND ASSESS TAX DUE UNDER THIS SUBDIVISION
BASED ON SUCH ESTIMATE. FOR PURPOSES OF THIS SUBDIVISION:
(1) "LEASE" MEANS AND INCLUDES A LEASE, RENTAL AGREEMENT, OR RIGHT TO
USE OR OTHER AGREEMENT IN THE NATURE OF A LEASE, RENTAL AGREEMENT, OR
RIGHT TO USE;
(2) "RELATED ENTITIES" MEANS TWO OR MORE PERSONS THAT BEAR A RELATION-
SHIP TO EACH OTHER AS DESCRIBED IN SUBPARAGRAPHS (II) THROUGH (VI) OF
PARAGRAPH (B) OF SUBDIVISION THREE OF SECTION FIVE HUNDRED FOUR OF THIS
CHAPTER.
S 2. Subdivision (q) of section 1111 of the tax law, as added by
section 3 of subpart B of part S of chapter 57 of the laws of 2010, is
amended to read as follows:
(q) (1) The exclusions from the definition of retail sale in subpara-
graph (iv) of paragraph four of subdivision (b) of section eleven
hundred one of this article shall not apply to transfers, distributions,
or contributions of [an aircraft or vessel] TANGIBLE PERSONAL PROPERTY,
except where, in the case of the exclusion in subclause (I) of clause
(A) of such subparagraph (iv), the two corporations to be merged or
consolidated are not affiliated persons with respect to each other. For
purposes of this subdivision, corporations are affiliated persons with
respect to each other where (i) more than five percent of their combined
shares are owned by members of the same family, as defined by paragraph
four of subsection (c) of section two hundred sixty-seven of the inter-
nal revenue code of nineteen hundred eighty-six; (ii) one of the corpo-
rations has an ownership interest of more than five percent, whether
direct or indirect, in the other; or (iii) another person or a group of
other persons that are affiliated persons with respect to each other
hold an ownership interest of more than five percent, whether direct or
indirect, in each of the corporations.
(2) Notwithstanding any contrary provision of law, in relation to any
transfer, distribution, or contribution of [an aircraft or vessel]
TANGIBLE PERSONAL PROPERTY that qualifies as a retail sale as a result
of paragraph one of this subdivision, the sales tax imposed by subdivi-
sion (a) of section eleven hundred five of this part shall be computed
based on the price at which the seller purchased the tangible personal
property, provided that where the seller or purchaser affirmatively
shows that the seller owned the property for six months prior to making
the transfer, distribution or contribution covered by paragraph one of
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this subdivision, such [aircraft or vessel] TANGIBLE PERSONAL PROPERTY
shall be taxed on the basis of the current market value of the [aircraft
or vessel] TANGIBLE PERSONAL PROPERTY at the time of that transfer,
distribution, or contribution. For the purposes of the prior sentence,
"current market value" shall not exceed the cost of the [aircraft or
vessel] TANGIBLE PERSONAL PROPERTY. See subdivision (b) of this section
for a similar rule on the computation of any compensating use tax due
under section eleven hundred ten of this part on such transfers,
distributions, or contributions.
(3) A purchaser of [an aircraft or vessel] TANGIBLE PERSONAL PROPERTY
covered by paragraph one of this subdivision will be entitled to a
refund or credit against the sales or compensating use tax due as a
result of a transfer, distribution, or contribution of such [aircraft or
vessel] TANGIBLE PERSONAL PROPERTY in the amount of any sales or use tax
paid to this state or any other state on the seller's purchase or use of
the [aircraft or vessel] TANGIBLE PERSONAL PROPERTY so transferred,
distributed or contributed, but not to exceed the tax due on the trans-
fer, distribution, or contribution of the [aircraft or vessel] TANGIBLE
PERSONAL PROPERTY or on the purchaser's use in the state of the
[aircraft or vessel] TANGIBLE PERSONAL PROPERTY so transferred, distrib-
uted or contributed. An application for a refund or credit under this
subdivision must be filed and shall be in such form as the commissioner
may prescribe. Where an application for credit has been filed, the
applicant may immediately take such credit on the return which is due
coincident with or immediately subsequent to the time the application
for credit is filed. However, the taking of the credit on the return
shall be deemed to be part of the application for credit. Provided that
the commissioner may, in his or her discretion and notwithstanding any
other law, waive the application requirement for any or all classes of
persons where the amount of the credit or refund is equal to the amount
of the tax due from the purchaser. The provisions of subdivisions (a),
(b), and (c) of section eleven hundred thirty-nine of this article shall
apply to applications for refund or credit under this subdivision. No
interest shall be allowed or paid on any refund made or credit allowed
under this subdivision. If a refund is granted or a credit allowed under
this paragraph, the seller or purchaser shall not be eligible for a
refund or credit pursuant to subdivision seven of section eleven hundred
eighteen of this article with regard to the same purchase or use.
S 3. This act shall take effect immediately and shall apply in accord-
ance with applicable transitional provisions of sections 1106 and 1217
of the tax law.
PART Z
Section 1. Subdivision (ee) of section 1115 of the tax law, as added
by chapter 306 of the laws of 2005, is amended to read as follows:
(ee) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1)
Receipts from the retail sale of, AND CONSIDERATION GIVEN OR CONTRACTED
TO BE GIVEN FOR, OR FOR THE USE OF, residential solar energy systems
equipment and [of] the service of installing such systems [shall be
exempt from tax under this article]. For the purposes of this subdivi-
sion, "residential solar energy systems equipment" shall mean an
arrangement or combination of components installed in a residence that
utilizes solar radiation to produce energy designed to provide heating,
cooling, hot water and/or electricity. Such arrangement or components
shall not include equipment that is part of a non-solar energy system or
A. 6009 81
which uses any sort of recreational facility or equipment as a storage
medium.
(2) RECEIPTS FROM THE SALE OF ELECTRICITY BY A PERSON PRIMARILY
ENGAGED IN THE SALE OF SOLAR ENERGY SYSTEM EQUIPMENT AND/OR ELECTRICITY
GENERATED BY SUCH EQUIPMENT PURSUANT TO A WRITTEN AGREEMENT UNDER WHICH
SUCH ELECTRICITY IS GENERATED BY RESIDENTIAL SOLAR ENERGY SYSTEM EQUIP-
MENT THAT IS: (A) OWNED BY A PERSON OTHER THAN THE PURCHASER OF SUCH
ELECTRICITY; (B) INSTALLED ON RESIDENTIAL PROPERTY OF THE PURCHASER OF
SUCH ELECTRICITY; AND (C) USED TO PROVIDE HEATING, COOLING, HOT WATER OR
ELECTRICITY TO SUCH PROPERTY.
S 2. Subdivision (ii) of section 1115 of the tax law, as amended by
chapter 13 of the laws of 2013, is amended to read as follows:
(ii) THE FOLLOWING SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE: (1)
Receipts from the retail sale of, AND CONSIDERATION GIVEN OR CONTRACTED
TO BE GIVEN FOR, OR FOR THE USE OF, commercial solar energy systems
equipment and [of] the service of installing such systems [shall be
exempt from taxes imposed by sections eleven hundred five and eleven
hundred ten of this article]. For the purposes of this subdivision,
"commercial solar energy systems equipment" shall mean an arrangement or
combination of components installed upon non-residential premises that
utilize solar radiation to produce energy designed to provide heating,
cooling, hot water and/or electricity. Such arrangement or components
shall not include equipment that is part of a non-solar energy system.
(2) RECEIPTS FROM THE SALE OF ELECTRICITY BY A PERSON PRIMARILY
ENGAGED IN THE SALE OF SOLAR ENERGY SYSTEM EQUIPMENT AND/OR ELECTRICITY
GENERATED BY SUCH EQUIPMENT PURSUANT TO A WRITTEN AGREEMENT UNDER WHICH
THE ELECTRICITY IS GENERATED BY COMMERCIAL SOLAR ENERGY SYSTEM EQUIPMENT
THAT IS: (A) OWNED BY A PERSON OTHER THAN THE PURCHASER OF SUCH ELEC-
TRICITY; (B) INSTALLED ON THE NON-RESIDENTIAL PREMISES OF THE PURCHASER
OF SUCH ELECTRICITY; AND (C) USED TO PROVIDE HEATING, COOLING, HOT WATER
OR ELECTRICITY TO SUCH PREMISES.
S 3. Paragraphs 1 and 4 of subdivision (a) of section 1210 of the tax
law, paragraph 1 as amended by chapter 13 of the laws of 2012, and para-
graph 4 as amended by chapter 200 of the laws of 2009, are amended to
read as follows:
(1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with the
corresponding provisions in such article twenty-eight, including the
definition and exemption provisions of such article, so far as the
provisions of such article twenty-eight can be made applicable to the
taxes imposed by such city or county and with such limitations and
special provisions as are set forth in this article. The taxes author-
ized under this subdivision may not be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes so as
to include all portions and all types of receipts, charges or rents,
subject to state tax under sections eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. (i) Any local
law, ordinance or resolution enacted by any city of less than one
million or by any county or school district, imposing the taxes author-
ized by this subdivision, shall, notwithstanding any provision of law to
the contrary, exclude from the operation of such local taxes all sales
of tangible personal property for use or consumption directly and
predominantly in the production of tangible personal property, gas,
electricity, refrigeration or steam, for sale, by manufacturing, proc-
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essing, generating, assembly, refining, mining or extracting; and all
sales of tangible personal property for use or consumption predominantly
either in the production of tangible personal property, for sale, by
farming or in a commercial horse boarding operation, or in both; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy systems equipment
AND ELECTRICITY exemption provided for in subdivision (ee), the commer-
cial solar energy systems equipment AND ELECTRICITY exemption provided
for in subdivision (ii) and the clothing and footwear exemption provided
for in paragraph thirty of subdivision (a) of section eleven hundred
fifteen of this chapter, unless such city, county or school district
elects otherwise as to either such residential solar energy systems
equipment AND ELECTRICITY exemption, such commercial solar energy
systems equipment AND ELECTRICITY exemption or such clothing and foot-
wear exemption.
(4) Notwithstanding any other provision of law to the contrary, any
local law enacted by any city of one million or more that imposes the
taxes authorized by this subdivision (i) may omit the exception provided
in subparagraph (ii) of paragraph three of subdivision (c) of section
eleven hundred five of this chapter for receipts from laundering, dry-
cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining;
(ii) may impose the tax described in paragraph six of subdivision (c) of
section eleven hundred five of this chapter at a rate in addition to the
rate prescribed by this section not to exceed two percent in multiples
of one-half of one percent; (iii) shall provide that the tax described
in paragraph six of subdivision (c) of section eleven hundred five of
this chapter does not apply to facilities owned and operated by the city
or an agency or instrumentality of the city or a public corporation the
majority of whose members are appointed by the chief executive officer
of the city or the legislative body of the city or both of them; (iv)
shall not include any tax on receipts from, or the use of, the services
described in paragraph seven of subdivision (c) of section eleven
hundred five of this chapter; (v) shall provide that, for purposes of
the tax described in subdivision (e) of section eleven hundred five of
this chapter, "permanent resident" means any occupant of any room or
rooms in a hotel for at least one hundred eighty consecutive days with
regard to the period of such occupancy; (vi) may omit the exception
provided in paragraph one of subdivision (f) of section eleven hundred
five of this chapter for charges to a patron for admission to, or use
of, facilities for sporting activities in which the patron is to be a
participant, such as bowling alleys and swimming pools; (vii) may
provide the clothing and footwear exemption in paragraph thirty of
subdivision (a) of section eleven hundred fifteen of this chapter, and,
notwithstanding any provision of subdivision (d) of this section to the
contrary, any local law providing for such exemption or repealing such
exemption, may go into effect on any one of the following dates: March
first, June first, September first or December first; (viii) shall omit
the exemption provided in paragraph forty-one of subdivision (a) of
section eleven hundred fifteen of this chapter; (ix) shall omit the
exemption provided in subdivision (c) of section eleven hundred fifteen
of this chapter insofar as it applies to fuel, gas, electricity, refrig-
eration and steam, and gas, electric, refrigeration and steam service of
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whatever nature for use or consumption directly and exclusively in the
production of gas, electricity, refrigeration or steam; (x) shall omit,
unless such city elects otherwise, the provision for refund or credit
contained in clause six of subdivision (a) or in subdivision (d) of
section eleven hundred nineteen of this chapter; [and] (xi) shall
provide that section eleven hundred five-C of this chapter does not
apply to such taxes, and shall tax receipts from every sale, other than
sales for resale, of gas service or electric service of whatever nature,
including the transportation, transmission or distribution of gas or
electricity, even if sold separately, at the rate set forth in clause
one of subparagraph (i) of the opening paragraph of this section; (XII)
SHALL OMIT, UNLESS SUCH CITY ELECTS OTHERWISE, THE EXEMPTION FOR RESI-
DENTIAL SOLAR ENERGY SYSTEMS EQUIPMENT AND ELECTRICITY PROVIDED IN
SUBDIVISION (EE) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER; AND
(XIII) SHALL OMIT, UNLESS SUCH CITY ELECTS OTHERWISE, THE EXEMPTION FOR
COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT AND ELECTRICITY PROVIDED IN
SUBDIVISION (II) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER. ANY
REFERENCE IN THIS CHAPTER OR IN ANY LOCAL LAW, ORDINANCE OR RESOLUTION
ENACTED PURSUANT TO THE AUTHORITY OF THIS ARTICLE TO FORMER SUBDIVISIONS
(N) OR (P) OF THIS SECTION SHALL BE DEEMED TO BE A REFERENCE TO CLAUSES
(XII) OR (XIII) OF THIS PARAGRAPH, RESPECTIVELY, AND ANY SUCH LOCAL LAW,
ORDINANCE OR RESOLUTION THAT PROVIDES THE EXEMPTIONS PROVIDED IN SUCH
FORMER SUBDIVISIONS (N) AND/OR (P) SHALL BE DEEMED INSTEAD TO PROVIDE
THE EXEMPTIONS PROVIDED IN CLAUSES (XII) AND/OR (XIII) OF THIS
PARAGRAPH.
S 4. Paragraph 1 and subparagraph (i) of paragraph 3 of subdivision
(b) of section 1210 of the tax law, paragraph 1 as amended by section 36
of part S-1 of chapter 57 of the laws of 2009, and subparagraph (i) of
paragraph 3 as amended by section 3 of part B of chapter 35 of the laws
of 2006, are amended to read as follows:
(1) Or, one or more of the taxes described in subdivisions (b), (d),
(e) and (f) of section eleven hundred five of this chapter, at the same
uniform rate, including the transitional provisions in section eleven
hundred six of this chapter covering such taxes, but not the taxes
described in subdivisions (a) and (c) of section eleven hundred five of
this chapter. Provided, further, that where the tax described in subdi-
vision (b) of section eleven hundred five of this chapter is imposed,
the compensating use taxes described in clauses (E), (G) and (H) of
subdivision (a) of section eleven hundred ten of this chapter shall also
be imposed. Provided, further, that where the taxes described in subdi-
vision (b) of section eleven hundred five are imposed, such taxes shall
omit: (A) the provision for refund or credit contained in subdivision
(d) of section eleven hundred nineteen of this chapter with respect to
such taxes described in such subdivision (b) of section eleven hundred
five unless such city or county elects to provide such provision or, if
so elected, to repeal such provision; (B) THE EXEMPTION PROVIDED IN
PARAGRAPH TWO OF SUBDIVISION (EE) OF SECTION ELEVEN HUNDRED FIFTEEN OF
THIS CHAPTER UNLESS SUCH COUNTY OR CITY ELECTS OTHERWISE; AND (C) THE
EXEMPTION PROVIDED IN PARAGRAPH TWO OF SUBDIVISION (II) OF SECTION ELEV-
EN HUNDRED FIFTEEN OF THIS CHAPTER, UNLESS SUCH COUNTY OR CITY ELECTS
OTHERWISE.
(i) Notwithstanding any other provision of law to the contrary but not
with respect to cities subject to the provisions of section eleven
hundred eight of this chapter, any city or county, except a county whol-
ly contained within a city, may provide that the tax imposed, pursuant
to this subdivision, by such city or county on the sale, other than for
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resale, of propane (except when sold in containers of less than one
hundred pounds), natural gas, electricity, steam and gas, electric and
steam services of whatever nature used for residential purposes and on
the use of gas or electricity used for residential purposes may be
imposed at a lower rate than the uniform local rate imposed pursuant to
the opening paragraph of this section, as long as such rate is one of
the rates authorized by such paragraph or such sale or use may be
exempted from such taxes. Provided, however, such lower rate must apply
to all such energy sources and services and at the same rate and no such
exemption, OTHER THAN THE EXEMPTION PROVIDED FOR IN SUBDIVISION (EE) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER, IF SUCH EXEMPTION IS
ELECTED BY SUCH CITY OR COUNTY, may be enacted unless such exemption
applies to all such energy sources and services.
S 4-a. Subdivision (d) of section 1210 of the tax law, as amended by
section 37 of part S-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
(d) A local law, ordinance or resolution imposing any tax pursuant to
this section, increasing or decreasing the rate of such tax, repealing
or suspending such tax, exempting from such tax the energy sources and
services described in paragraph three of subdivision (a) or of subdivi-
sion (b) of this section or changing the rate of tax imposed on such
energy sources and services or providing for the credit or refund
described in clause six of subdivision (a) of section eleven hundred
nineteen of this chapter, OR ELECTING OR REPEALING THE EXEMPTION FOR
RESIDENTIAL SOLAR EQUIPMENT AND ELECTRICITY IN SUBDIVISION (EE) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE, OR THE EXEMPTION FOR
COMMERCIAL SOLAR EQUIPMENT AND ELECTRICITY IN SUBDIVISION (II) OF
SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE must go into effect only
on one of the following dates: March first, June first, September first
or December first; provided, that a local law, ordinance or resolution
providing for the exemption described in paragraph thirty of subdivision
(a) of section eleven hundred fifteen of this chapter or repealing any
such exemption or a local law, ordinance or resolution providing for a
refund or credit described in subdivision (d) of section eleven hundred
nineteen of this chapter or repealing such provision so provided must go
into effect only on March first. No such local law, ordinance or resol-
ution shall be effective unless a certified copy of such law, ordinance
or resolution is mailed by registered or certified mail to the commis-
sioner at the commissioner's office in Albany at least ninety days prior
to the date it is to become effective. However, the commissioner may
waive and reduce such ninety-day minimum notice requirement to a mailing
of such certified copy by registered or certified mail within a period
of not less than thirty days prior to such effective date if the commis-
sioner deems such action to be consistent with the commissioner's duties
under section twelve hundred fifty of this article and the commissioner
acts by resolution. Where the restriction provided for in section twelve
hundred twenty-three of this article as to the effective date of a tax
and the notice requirement provided for therein are applicable and have
not been waived, the restriction and notice requirement in section
twelve hundred twenty-three of this article shall also apply.
S 5. Subdivisions (n) and (p) of section 1210 of the tax law are
REPEALED.
S 6. Subdivision (a) of section 1212 of the tax law, as amended by
section 40 of part S-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
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(a) Any school district which is coterminous with, partly within or
wholly within a city having a population of less than one hundred twen-
ty-five thousand, is hereby authorized and empowered, by majority vote
of the whole number of its school authorities, to impose for school
district purposes, within the territorial limits of such school district
and without discrimination between residents and nonresidents thereof,
the taxes described in subdivision (b) of section eleven hundred five
(but excluding the tax on prepaid telephone calling services) and the
taxes described in clauses (E) and (H) of subdivision (a) of section
eleven hundred ten, including the transitional provisions in subdivision
(b) of section eleven hundred six of this chapter, so far as such
provisions can be made applicable to the taxes imposed by such school
district and with such limitations and special provisions as are set
forth in this article, such taxes to be imposed at the rate of one-half,
one, one and one-half, two, two and one-half or three percent which rate
shall be uniform for all portions and all types of receipts and uses
subject to such taxes. In respect to such taxes, all provisions of the
resolution imposing them, except as to rate and except as otherwise
provided herein, shall be identical with the corresponding provisions in
such article twenty-eight of this chapter, including the applicable
definition and exemption provisions of such article, so far as the
provisions of such article twenty-eight of this chapter can be made
applicable to the taxes imposed by such school district and with such
limitations and special provisions as are set forth in this article. The
taxes described in subdivision (b) of section eleven hundred five (but
excluding the tax on prepaid telephone calling service) and clauses (E)
and (H) of subdivision (a) of section eleven hundred ten, including the
transitional provision in subdivision (b) of such section eleven hundred
six of this chapter, may not be imposed by such school district unless
the resolution imposes such taxes so as to include all portions and all
types of receipts and uses subject to tax under such subdivision (but
excluding the tax on prepaid telephone calling service) and clauses.
Provided, however, that, where a school district imposes such taxes,
such taxes shall omit the provision for refund or credit contained in
subdivision (d) of section eleven hundred nineteen of this chapter with
respect to such taxes described in such subdivision (b) of section elev-
en hundred five unless such school district elects to provide such
provision or, if so elected, to repeal such provision, AND SHALL OMIT
THE EXEMPTION PROVIDED IN PARAGRAPH TWO OF EITHER SUBDIVISION (EE) OR
SUBDIVISION (II) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER
UNLESS SUCH SCHOOL DISTRICT ELECTS OTHERWISE.
S 7. Section 1224 of the tax law is amended by adding a new subdivi-
sion (c-1) to read as follows:
(C-1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW: (1) WHERE A COUNTY
CONTAINING ONE OR MORE CITIES WITH A POPULATION OF LESS THAN ONE MILLION
HAS ELECTED THE EXEMPTION FOR RESIDENTIAL SOLAR ENERGY SYSTEMS EQUIPMENT
AND ELECTRICITY PROVIDED IN SUBDIVISION (EE) OF SECTION ELEVEN HUNDRED
FIFTEEN OF THIS CHAPTER, THE EXEMPTION FOR COMMERCIAL SOLAR ENERGY
SYSTEMS EQUIPMENT AND ELECTRICITY PROVIDED IN SUBDIVISION (II) OF SUCH
SECTION ELEVEN HUNDRED FIFTEEN, OR BOTH SUCH EXEMPTIONS, A CITY WITHIN
SUCH COUNTY SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT
EQUIPMENT AND/OR ELECTRICITY TO THE EXTENT OF ONE HALF OF THE MAXIMUM
RATES AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF
THIS ARTICLE;
(2) WHERE A CITY OF LESS THAN ONE MILLION HAS ELECTED THE EXEMPTION
FOR RESIDENTIAL SOLAR ENERGY SYSTEMS EQUIPMENT AND ELECTRICITY PROVIDED
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IN SUBDIVISION (EE) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER,
THE EXEMPTION FOR COMMERCIAL SOLAR ENERGY SYSTEMS EQUIPMENT AND ELEC-
TRICITY PROVIDED IN SUBDIVISION (II) OF SUCH SECTION ELEVEN HUNDRED
FIFTEEN, OR BOTH SUCH EXEMPTIONS, THE COUNTY IN WHICH SUCH CITY IS
LOCATED SHALL HAVE THE PRIOR RIGHT TO IMPOSE TAX ON SUCH EXEMPT EQUIP-
MENT AND/OR ELECTRICITY TO THE EXTENT OF ONE HALF OF THE MAXIMUM RATES
AUTHORIZED UNDER SUBDIVISION (A) OF SECTION TWELVE HUNDRED TEN OF THIS
ARTICLE.
S 8. This act shall take effect December 1, 2015 and shall apply in
accordance with the applicable transitional provisions in sections 1106
and 1217 of the tax law.
PART AA
Section 1. Subdivision (f) of section 301-c of the tax law, as amended
by section 23 of part K of chapter 61 of the laws of 2011, is amended to
read as follows:
(f) Motor fuel AND HIGHWAY DIESEL MOTOR FUEL used for farm production.
No more than one thousand five hundred gallons of motor fuel AND NO MORE
THAN FOUR THOUSAND FIVE HUNDRED GALLONS OF HIGHWAY DIESEL MOTOR FUEL
purchased in this state in a thirty-day period or a greater amount which
has been given prior clearance by the commissioner, by a consumer for
use or consumption directly and exclusively in the production for sale
of tangible personal property by farming, but only if all of such MOTOR
fuel OR HIGHWAY DIESEL MOTOR FUEL is delivered on the farm site and is
consumed other than on the public highways of this state (except for the
use of the public highway to reach adjacent farmlands). This reimburse-
ment to such purchaser who used such motor fuel OR HIGHWAY DIESEL MOTOR
FUEL in the manner specified in this subdivision may be claimed only
where, (i) the tax imposed pursuant to this article has been paid with
respect to such motor fuel OR HIGHWAY DIESEL MOTOR FUEL and the entire
amount of such tax has been absorbed by such purchaser, and (ii) such
purchaser possesses documentary proof satisfactory to the commissioner
evidencing the absorption by it of the entire amount of the tax imposed
pursuant to this article. Provided, however, that the commissioner shall
require such documentary proof to qualify for any reimbursement of tax
provided by this subdivision as the commissioner deems appropriate. The
commissioner is hereby empowered to make such provisions as deemed
necessary to define the procedures for granting prior clearance for
purchases of more than one thousand five hundred gallons OF MOTOR FUEL
OR FOUR THOUSAND FIVE HUNDRED GALLONS OF HIGHWAY DIESEL MOTOR FUEL in a
thirty-day period.
S 2. This act shall take effect immediately.
PART BB
Section 1. Subsections (b) and (c) of section 952 of the tax law,
subsection (b) as amended and subsection (c) as added by section 2 of
part X of chapter 59 of the laws of 2014, are amended to read as
follows:
(b) Computation of tax. The tax imposed by this section shall be
computed on the deceased resident's New York taxable estate as follows:
[In the case of decedents dying on or after April 1, 2014 and before
April 1, 2015]
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If the New York taxable estate is: The tax is:
Not over $500,000 3.06% of taxable estate
Over $500,000 but not over $1,000,000 $15,300 plus 5.0% of excess over
$500,000
Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over
$1,000,000
Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over
$1,500,000
Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess
over $2,100,000
Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over
$2,600,000
Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over
$3,100,000
Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess
over $3,600,000
Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess
over $4,100,000
Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess
over $5,100,000
Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess
over $6,100,000
Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess
over $7,100,000
Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess
over $8,100,000
Over $9,100,000 but not over $930,800 plus 15.2% of excess over
$10,100,000 $9,100,000
Over $10,100,000 $1,082,800 plus 16.0% of excess
over $10,100,000
(c) Applicable credit amount. (1) A credit of the applicable credit
amount shall be allowed against the tax imposed by this section as
provided in this subsection. In the case of a decedent whose New York
taxable estate is less than or equal to the basic exclusion amount, the
applicable credit amount shall be the amount of tax that would be due
under subsection (b) of this section on such decedent's New York taxable
estate. In the case of a decedent whose New York taxable estate exceeds
the basic exclusion amount by an amount that is less than or equal to
five percent of such amount, the applicable credit amount shall be the
amount of tax that would be due under subsection (b) of this section if
the amount on which the tax is to be computed were equal to the basic
exclusion amount multiplied by one minus a fraction, the numerator of
which is the decedent's New York taxable estate minus the basic exclu-
sion amount, and the denominator of which is five percent of the basic
exclusion amount. Provided, however, that the credit allowed by this
subsection shall not exceed the tax imposed by this section, and no
credit shall be allowed to the estate of any decedent whose New York
taxable estate exceeds one hundred five percent of the basic exclusion
amount. PROVIDED, FURTHER, THAT THE CREDIT ALLOWED BY THIS SUBSECTION
SHALL BE INCREASED BY AN AMOUNT EQUAL TO THE UNUSED EXCLUSION AMOUNT OF
THE DESCENDENT'S LAST DECEASED SPOUSE.
(2) (A) For purposes of this section, the basic exclusion amount shall
be as follows:
In the case of decedents dying on or after: The basic exclusion amount
is:
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April 1, 2014 and before April 1, 2015 $ 2,062,500
April 1, 2015 and before April 1, 2016 3,125,000
April 1, 2016 and before April 1, 2017 4,187,500
April 1, 2017 and before January 1, 2019 5,250,000
(B) In the case of any decedent dying in a calendar year beginning on
or after January first, two thousand nineteen, the basic exclusion
amount shall be equal to:
(i) five million dollars, multiplied by
(ii) one plus the cost-of-living adjustment, which shall be the
percentage by which the consumer price index for the preceding calendar
year exceeds the consumer price index for calendar year two thousand
ten.
(C) (i) For purposes of this paragraph, "consumer price index" means
the most recent consumer price index for all-urban consumers published
by the United States department of labor.
(ii) For purposes of clause (ii) of subparagraph (B) of this para-
graph, the consumer price index for any calendar year shall be the aver-
age of the consumer price index as of the close of the twelve-month
period ending on August thirty-first of such calendar year.
(iii) If any amount adjusted under this paragraph is not a multiple of
ten thousand dollars, such amount shall be rounded to the nearest multi-
ple of ten thousand dollars.
(3)(A) FOR DECEDENTS DYING ON OR AFTER APRIL FIRST, TWO THOUSAND
FIFTEEN, THE CREDIT ALLOWED BY THIS SUBSECTION SHALL BE INCREASED BY AN
AMOUNT EQUAL TO THE UNUSED EXCLUSION AMOUNT OF THE DECEDENT'S LAST
DECEASED SPOUSE.
(B) FOR PURPOSES OF THIS SUBSECTION, THE UNUSED EXCLUSION AMOUNT OF
THE DECEDENT'S LAST DECEASED SPOUSE IS THE BASIC EXCLUSION AMOUNT OF THE
LAST SUCH DECEASED SPOUSE OF SUCH SURVIVING SPOUSE MINUS THE AMOUNT WITH
RESPECT TO WHICH THE TAX IS DETERMINED AND IMPOSED BY THIS SUBSECTION ON
THE ESTATE OF SUCH DECEASED SPOUSE.
(C) PROVIDED, HOWEVER, THAT NO CREDIT AMOUNT OF THE DECEDENT'S LAST
DECEASED SPOUSE SHALL BE ALLOWED IF THE NEW YORK TAXABLE ESTATE OF THE
DECEDENT'S LAST DECEASED SPOUSE WAS EQUAL TO OR GREATER THAN THE BASIC
EXCLUSION AMOUNT ALLOWABLE AT THE DATE OF DEATH OF SUCH LAST DECEASED
SPOUSE. THE CREDIT AMOUNT OF THE DECEDENT'S LAST DECEASED SPOUSE, AS
REFERENCED IN THE IMMEDIATELY PRECEDING SENTENCE OF THIS SUBPARAGRAPH,
SHALL TAKE INTO ACCOUNT SUCH ADJUSTMENTS AS MAY BE WARRANTED PURSUANT TO
PARAGRAPH ONE OF THIS SUBSECTION.
(D) ANY ELECTION MADE UNDER THIS PARAGRAPH SHALL BE IRREVOCABLE. NO
ELECTION MAY BE MADE UNDER THIS PARAGRAPH IF SUCH RETURN IS FILED AFTER
THE TIME PRESCRIBED BY LAW (INCLUDING EXTENSIONS) FOR FILING THE RETURN.
S 2. Paragraph 3 of subsection (a) of section 954 of the tax law, as
added by section 3 of part X of chapter 59 of the laws of 2014, is
amended to read as follows:
(3) Increased by the amount of any taxable gift under section 2503 of
the internal revenue code not otherwise included in the decedent's
federal gross estate, made during the three year period ending on the
decedent's date of death, but not including any gift made: [(1)] (A)
when the decedent was not a resident of New York state; [(2)] OR (B)
before April first, two thousand fourteen; or [(3)] (C) THAT IS REAL OR
TANGIBLE PERSONAL PROPERTY HAVING AN ACTUAL SITUS OUTSIDE NEW YORK
STATE, AT THE TIME SUCH GIFT WAS MADE. PROVIDED, HOWEVER, THAT THIS
PARAGRAPH SHALL NOT APPLY TO THE ESTATE OF A DECEDENT DYING on or after
January first, two thousand nineteen.
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S 3. Subsection (c) of section 955 of the tax law, as added by section
4 of part X of chapter 59 of the laws of 2014, is amended to read as
follows:
(c) Qualified terminable interest property election.-- Except as
otherwise provided in this subsection, the election referred to in para-
graph (7) of subsection (b) of section 2056 of the internal revenue code
shall not be allowed under this article unless such election was made
with respect to the federal estate tax return required to be filed under
the provisions of the internal revenue code. If such election was made
for the purposes of the federal estate tax, then such election must also
be made by the executor on the return of the tax imposed by this arti-
cle. Where no federal estate tax return is required to be filed AND A
FEDERAL ESTATE TAX RETURN IS FILED SOLELY TO ELECT THE DECEASED SPOUSAL
UNUSED EXCLUSION AMOUNT UNDER PARAGRAPHS (4) AND (5) OF SUBSECTION (C)
OF SECTION 2010 OF THE INTERNAL REVENUE CODE, the executor may make the
election referred to in such paragraph (7) with respect to the tax
imposed by this article on the return of the tax imposed by this arti-
cle. Any election made under this subsection shall be irrevocable.
S 4. Subsection (b) of section 960 of the tax law, as amended by
section 5 of part X of chapter 59 of the laws of 2014, is amended to
read as follows:
(b) Computation of tax.--The tax imposed under subsection (a) shall be
the same as the tax that would be due, if the decedent had died a resi-
dent, under subsection (a) of section nine hundred fifty-two, except
that for purposes of computing the tax under subsection (b) of section
nine hundred fifty-two, "New York taxable estate" shall not include the
value of, OR ANY DEDUCTION ALLOWABLE UNDER THE INTERNAL REVENUE CODE
RELATED TO, any intangible personal property otherwise includible in the
deceased individual's New York gross estate, and shall not include the
amount of any gift unless such gift consists of real or tangible
personal property having an actual situs in New York state or intangible
personal property employed in a business, trade or profession carried on
in this state.
S 5. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2015.
PART CC
Section 1. Section 282 of the tax law is amended by adding a new
subdivision 27 to read as follows:
27. "WHOLESALER OF MOTOR FUEL" MEANS ANY PERSON, FIRM, ASSOCIATION OR
CORPORATION WHO OR WHICH IS NOT A DISTRIBUTOR OF MOTOR FUEL, AND MAKES A
SALE OF MOTOR FUEL IN THIS STATE OTHER THAN A RETAIL SALE NOT IN BULK.
FOR THE PURPOSES OF THIS ARTICLE WHEN USED WITH RESPECT TO MOTOR FUEL, A
"RETAIL SALE NOT IN BULK" MEANS THE MAKING OR OFFERING TO MAKE ANY SALE
OF MOTOR FUEL TO A CONSUMER OF SUCH FUEL WHICH IS DELIVERED DIRECTLY
INTO A MOTOR VEHICLE FOR USE IN THE OPERATION OF SUCH VEHICLE. A "RETAIL
SALE IN BULK" MEANS THE MAKING OR OFFERING TO MAKE ANY SALE OF MOTOR
FUEL TO A CONSUMER WHICH IS OTHER THAN A "RETAIL SALE NOT IN BULK".
S 2. The tax law is amended by adding a new section 283-d to read as
follows:
S 283-D. REGISTRATION OF WHOLESALERS OF MOTOR FUEL. (A) REGISTRATION
REQUIRED. EACH WHOLESALER OF MOTOR FUEL MUST BE REGISTERED WITH THE
DEPARTMENT UNDER THIS SECTION. NO WHOLESALER OF MOTOR FUEL SHALL MAKE A
SALE OF MOTOR FUEL IN THIS STATE OTHER THAN A RETAIL SALE NOT IN BULK
UNLESS SUCH WHOLESALER IS SO REGISTERED. THE DEPARTMENT, UPON THE
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APPLICATION OF A PERSON, SHALL REGISTER SUCH PERSON AS A WHOLESALER OF
MOTOR FUEL EXCEPT THAT THE COMMISSIONER MAY REFUSE TO REGISTER AN APPLI-
CANT FOR ANY OF THE GROUNDS SPECIFIED IN SUBDIVISION TWO OR FIVE OF
SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE OR IN SUBDIVISION (C)
OF THIS SECTION. THE APPLICATION SHALL BE IN SUCH FORM AND CONTAIN SUCH
INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE. ALL OF THE PROVISIONS
OF SUBDIVISIONS TWO, FOUR, FIVE, SIX, SEVEN, EIGHT, NINE AND TEN OF
SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE RELATING TO REGISTRA-
TION OF DISTRIBUTORS SHALL BE APPLICABLE TO THE REGISTRATION OF WHOLE-
SALERS OF MOTOR FUEL UNDER THIS SECTION WITH THE SAME FORCE AND EFFECT
AS IF THE LANGUAGE OF SUCH SUBDIVISIONS HAD BEEN INCORPORATED IN FULL IN
THIS SECTION AND HAD EXPRESSLY REFERRED TO THE REGISTRATION OF WHOLE-
SALERS OF MOTOR FUEL, WITH SUCH MODIFICATION AS MAY BE NECESSARY IN
ORDER TO ADAPT THE LANGUAGE OF SUCH PROVISIONS TO THE PROVISIONS OF THIS
SECTION, PROVIDED, SPECIFICALLY, THAT THE TERM "DISTRIBUTOR" SHALL BE
READ AS "WHOLESALER OF MOTOR FUEL." PROVIDED, HOWEVER, THAT IF THE
COMMISSIONER IS SATISFIED THAT THE REQUIREMENTS OF SUCH PROVISIONS FOR
REGISTRATION ARE NOT NECESSARY IN ORDER TO PROTECT TAX REVENUES, THE
COMMISSIONER MAY LIMIT OR MODIFY SUCH REQUIREMENTS WITH RESPECT TO ANY
PERSON NOT REQUIRED TO BE REGISTERED AS A DISTRIBUTOR OF MOTOR FUEL.
(B) BOND OR OTHER SECURITY. THE COMMISSIONER MAY REQUIRE A WHOLESALER
OF MOTOR FUEL SEEKING A REGISTRATION TO FILE WITH THE DEPARTMENT A BOND
ISSUED BY A SURETY COMPANY APPROVED BY THE SUPERINTENDENT OF FINANCIAL
SERVICES AS TO SOLVENCY AND RESPONSIBILITY AND AUTHORIZED TO TRANSACT
BUSINESS IN THIS STATE OR OTHER SECURITY ACCEPTABLE TO THE COMMISSIONER,
IN SUCH AMOUNT AS THE COMMISSIONER MAY FIX TO SECURE THE PERFORMANCE BY
SUCH WHOLESALER OF MOTOR FUEL OF THE DUTIES AND RESPONSIBILITIES
REQUIRED (I) PURSUANT TO THIS ARTICLE AND (II) PURSUANT TO ARTICLES
TWENTY-EIGHT AND TWENTY-NINE OF THIS CHAPTER WITH RESPECT TO MOTOR FUEL.
THE COMMISSIONER MAY REQUIRE THAT SUCH A BOND OR OTHER SECURITY BE FILED
BEFORE A WHOLESALER OF MOTOR FUEL IS REGISTERED, AND THE AMOUNT THEREOF
MAY BE INCREASED AT ANY TIME WHEN IN THE COMMISSIONER'S JUDGMENT THE
SAME IS NECESSARY. IF SECURITIES ARE DEPOSITED AS SECURITY UNDER THIS
SUBDIVISION, SUCH SECURITIES SHALL BE KEPT IN THE JOINT CUSTODY OF THE
COMPTROLLER AND THE COMMISSIONER AND MAY BE SOLD BY THE COMMISSIONER IF
IT BECOMES NECESSARY SO TO DO IN ORDER TO RECOVER AGAINST SUCH WHOLE-
SALER OF MOTOR FUEL BUT NO SUCH SALE SHALL BE HAD UNTIL AFTER SUCH
WHOLESALER OF MOTOR FUEL SHALL HAVE HAD OPPORTUNITY TO LITIGATE THE
VALIDITY OF THE LIABILITY IF IT ELECTS TO DO SO. UPON ANY SUCH SALE THE
SURPLUS, IF ANY, ABOVE THE SUMS DUE SHALL BE RETURNED TO SUCH WHOLESALER
OF MOTOR FUEL. THE DEPARTMENT, WHEN AUTHORIZED BY THE WHOLESALER OF
MOTOR FUEL, SHALL FURNISH INFORMATION REGARDING THE REGISTRATION OF THE
WHOLESALER OF MOTOR FUEL AND ANY OTHER INFORMATION WHICH THE WHOLESALER
OF MOTOR FUEL AUTHORIZES IT TO DISCLOSE.
(C) REFUSAL TO REGISTER. FOR THE PURPOSES OF DETERMINING WHETHER TO
REFUSE AN APPLICATION FOR REGISTRATION UNDER THIS SECTION, THE REFER-
ENCES IN SUBDIVISION TWO OF SECTION TWO HUNDRED EIGHTY-THREE OF THIS
ARTICLE TO EMPLOYEES OR SHAREHOLDERS UNDER A DUTY TO FILE A RETURN UNDER
OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR PAY THE TAXES IMPOSED BY
OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF OF THE APPLICANT
OR ANOTHER PERSON SHALL BE DEEMED TO ALSO INCLUDE AN EMPLOYEE UNDER A
DUTY TO FILE A RETURN OR PAY TAXES UNDER OR PURSUANT TO THE AUTHORITY OF
THIS ARTICLE ON BEHALF OF SUCH APPLICANT OR OTHER PERSON. IN ADDITION TO
THE GROUNDS SPECIFIED IN SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTI-
CLE, THE COMMISSIONER MAY REFUSE TO REGISTER AN APPLICANT WHERE THE
COMMISSIONER ASCERTAINS THAT THE APPLICANT, AN OFFICER, DIRECTOR OR
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PARTNER OF THE APPLICANT, A SHAREHOLDER DIRECTLY OR INDIRECTLY OWNING
MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK OF SUCH APPLICANT
(WHERE SUCH APPLICANT IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO
VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, OR AN EMPLOYEE OR SHARE-
HOLDER OF SUCH APPLICANT WHO, AS SUCH EMPLOYEE OR SHAREHOLDER IS UNDER A
DUTY TO FILE A RETURN UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE
OR TO PAY THE TAXES IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS
ARTICLE ON BEHALF OF THE APPLICANT; (1) HAS COMMITTED ANY OF THE ACTS OR
OMISSIONS WHICH ARE, OR WAS CONVICTED AS, SPECIFIED IN SUBDIVISION (D)
OF THIS SECTION WITHIN THE PRECEDING FIVE YEARS; OR (2) WAS AN OFFICER,
DIRECTOR OR PARTNER OF ANOTHER PERSON, OR WHO DIRECTLY OR INDIRECTLY
OWNED MORE THAN TEN PERCENT OF THE SHARES OF STOCK OF ANOTHER PERSON
(WHERE SUCH OTHER PERSON IS A CORPORATION) ENTITLING THE HOLDER THEREOF
TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, OR WHO WAS AN EMPLOY-
EE OR SHAREHOLDER OF ANOTHER PERSON UNDER A DUTY TO FILE A RETURN UNDER
OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR PAY THE TAXES IMPOSED BY
OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF OF SUCH OTHER
PERSON AT THE TIME SUCH OTHER PERSON COMMITTED ANY OF THE ACTS OR OMIS-
SIONS WHICH ARE, OR WAS CONVICTED AS, SPECIFIED IN SUBDIVISION (D) OF
THIS SECTION WITHIN THE PRECEDING FIVE YEARS.
(D) CANCELLATION OR SUSPENSION OF REGISTRATION. THE GROUNDS FOR A
CANCELLATION OR SUSPENSION OF A REGISTRATION UNDER THIS SECTION AS A
WHOLESALER OF MOTOR FUEL ARE THE SAME AS THOSE GROUNDS SPECIFIED IN
SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE AND, IN ADDITION TO
SUCH GROUNDS, THE FOLLOWING GROUNDS RELATING TO THIS ARTICLE SHALL
APPLY:
(1) A REGISTRATION AS A WHOLESALER OF MOTOR FUEL MAY BE CANCELLED OR
SUSPENDED IF THE COMMISSIONER DETERMINES THAT A REGISTRANT OR AN OFFI-
CER, DIRECTOR OR PARTNER OF THE REGISTRANT, A SHAREHOLDER DIRECTLY OR
INDIRECTLY OWNING MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK
OF SUCH REGISTRANT (WHERE SUCH REGISTRANT IS A CORPORATION) ENTITLING
THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, OR
AN EMPLOYEE OR SHAREHOLDER OF SUCH REGISTRANT UNDER A DUTY TO FILE A
RETURN UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR TO PAY THE
TAXES IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF
OF THE REGISTRANT
(A) FAILS TO FILE OR MAINTAIN IN FULL FORCE AND EFFECT A BOND OR OTHER
SECURITY WHEN REQUIRED PURSUANT TO SUBDIVISION (B) OF THIS SECTION OR
WHEN THE AMOUNT THEREOF IS INCREASED,
(B) FAILS TO COMPLY WITH ANY OF THE PROVISIONS OF THIS ARTICLE OR ANY
RULE OR REGULATION ADOPTED PURSUANT TO THIS ARTICLE BY THE COMMISSIONER,
(C) KNOWINGLY AIDS AND ABETS ANOTHER PERSON IN VIOLATING ANY OF THE
PROVISIONS OF THIS ARTICLE OR ANY RULE OR REGULATION ADOPTED PURSUANT TO
THIS ARTICLE BY THE COMMISSIONER,
(D) TRANSFERS ITS REGISTRATION AS A WHOLESALER OF MOTOR FUEL WITHOUT
THE PRIOR WRITTEN APPROVAL OF THE COMMISSIONER,
(E) WITH RESPECT TO A WHOLESALER OF MOTOR FUEL WHICH IS A CORPORATION,
HAS BEEN DISSOLVED PURSUANT TO SECTION TWO HUNDRED THREE-A AND SUBDIVI-
SION (D) OF SECTION THREE HUNDRED TEN OF THIS CHAPTER,
(F) COMMITS FRAUD OR DECEIT IN HIS, HER OR ITS OPERATIONS AS A WHOLE-
SALER OF MOTOR FUEL OR HAS COMMITTED FRAUD OR DECEIT IN PROCURING HIS,
HER OR ITS REGISTRATION,
(G) HAS IMPERSONATED ANY PERSON REPRESENTED TO BE A WHOLESALER OF
MOTOR FUEL UNDER THIS ARTICLE BUT NOT IN FACT REGISTERED AS A WHOLESALER
OF MOTOR FUEL, OR
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(H) HAS KNOWINGLY AIDED AND ABETTED THE DISTRIBUTION OF MOTOR FUEL, BY
ANY PERSON WHICH SUCH REGISTRANT OR SUCH OTHER PERSON KNOWS HAS NOT BEEN
REGISTERED BY THE COMMISSIONER AS REQUIRED UNDER THIS ARTICLE.
(2) A REGISTRATION AS A WHOLESALER OF MOTOR FUEL MAY BE CANCELLED OR
SUSPENDED IF THE COMMISSIONER DETERMINES THAT A REGISTRANT OR AN OFFI-
CER, DIRECTOR OR PARTNER OF THE REGISTRANT, A SHAREHOLDER DIRECTLY OR
INDIRECTLY OWNING MORE THAN TEN PERCENT OF THE NUMBER OF SHARES OF STOCK
OF SUCH REGISTRANT (WHERE SUCH REGISTRANT IS A CORPORATION) ENTITLING
THE HOLDER THEREOF TO VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES, OR
AN EMPLOYEE OR SHAREHOLDER OF SUCH REGISTRANT UNDER A DUTY TO FILE A
RETURN UNDER OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE OR TO PAY THE
TAXES IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS ARTICLE ON BEHALF
OF THE REGISTRANT, WAS AN OFFICER, DIRECTOR OR PARTNER OF ANOTHER PERSON
OR WAS A SHAREHOLDER DIRECTLY OR INDIRECTLY OWNING MORE THAN TEN PERCENT
OF THE NUMBER OF SHARES OF STOCK OF ANOTHER PERSON (WHERE SUCH OTHER
PERSON IS A CORPORATION) ENTITLING THE HOLDER THEREOF TO VOTE FOR THE
ELECTION OF DIRECTORS OR TRUSTEES, OR WAS AN EMPLOYEE OR SHAREHOLDER OF
ANOTHER PERSON UNDER A DUTY TO FILE A RETURN UNDER OR PURSUANT TO THE
AUTHORITY OF THIS ARTICLE OR TO PAY THE TAXES IMPOSED BY OR PURSUANT TO
THE AUTHORITY OF THIS ARTICLE ON BEHALF OF SUCH OTHER PERSON AT THE TIME
SUCH OTHER PERSON COMMITTED ANY OF THE ACTS SPECIFIED IN PARAGRAPH ONE
OF THIS SUBDIVISION WITHIN THE PRECEDING FIVE YEARS.
(E) CANCELLATION OR SUSPENSION OF REGISTRATION PRIOR TO A HEARING.
THE GROUNDS FOR CANCELLING OR SUSPENDING A REGISTRATION AS A WHOLESALER
OF MOTOR FUEL PRIOR TO A HEARING SHALL BE THE SAME AS THOSE SPECIFIED IN
SUBDIVISION FIVE OF SECTION TWO HUNDRED EIGHTY-THREE OF THIS ARTICLE
AND, IN ADDITION TO SUCH GROUNDS, THE FOLLOWING GROUNDS RELATING TO THIS
ARTICLE SHALL APPLY:
(1) THE FAILURE TO FILE A RETURN WITHIN TEN DAYS OF THE DATE
PRESCRIBED FOR FILING A RETURN UNDER THIS ARTICLE IF THE REGISTRANT
SHALL HAVE FAILED TO FILE SUCH RETURN WITHIN TEN DAYS AFTER THE DATE THE
DEMAND THEREFOR IS SENT BY REGISTERED OR CERTIFIED MAIL TO THE ADDRESS
OF THE WHOLESALER OF MOTOR FUEL GIVEN IN ITS APPLICATION, OR AN ADDRESS
SUBSTITUTED THEREFOR AS PROVIDED IN SUBDIVISION FIVE OF SECTION TWO
HUNDRED EIGHTY-THREE OF THIS ARTICLE,
(2) THE FAILURE TO CONTINUE TO MAINTAIN IN FULL FORCE AND EFFECT AT
ALL TIMES THE BOND OR OTHER SECURITY REQUIRED TO BE FILED PURSUANT TO
SUBDIVISION (B) OF THIS SECTION, PROVIDED, HOWEVER, THAT IF A SURETY
BOND IS CANCELLED PRIOR TO EXPIRATION, THE COMMISSIONER MAY AFTER
CONSIDERING ALL THE RELEVANT CIRCUMSTANCES MAKE SUCH OTHER ARRANGEMENTS,
AND MAY REQUIRE THE FILING OF SUCH OTHER BOND OR OTHER SECURITY AS IT
DEEMS APPROPRIATE,
(3) THE TRANSFER OF A REGISTRATION AS A WHOLESALER OF MOTOR FUEL WITH-
OUT THE PRIOR WRITTEN APPROVAL OF THE COMMISSIONER, OR
(4) WITH RESPECT TO A WHOLESALER OF MOTOR FUEL WHICH IS A CORPORATION,
THE DISSOLUTION OR ANNULMENT OF SUCH CORPORATION PURSUANT TO SECTION
THREE HUNDRED TEN OF THIS CHAPTER.
S 3. Section 287 of the tax law is amended by adding a new subdivision
3 to read as follows:
3. EVERY WHOLESALER OF MOTOR FUEL SHALL, ON OR BEFORE THE TWENTIETH
DAY OF EACH MONTH, FILE WITH THE DEPARTMENT A RETURN, ON FORMS
PRESCRIBED BY THE COMMISSIONER STATING THE NUMBER OF GALLONS OF MOTOR
FUEL PURCHASED AND SOLD BY SUCH WHOLESALER IN THE STATE DURING THE
PRECEDING CALENDAR MONTH. FOR EACH PURCHASE AND SALE, THE DATE, NUMBER
OF GALLONS OF MOTOR FUEL PURCHASED OR SOLD, AND THE NAME OF THE SELLER
OR PURCHASER SHALL BE SET FORTH ON THE RETURN. SUCH RETURNS SHALL
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CONTAIN SUCH FURTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE. THE
FACT THAT A WHOLESALER'S NAME IS SIGNED TO A FILED RETURN SHALL BE PRIMA
FACIE EVIDENCE FOR ALL PURPOSES THAT THE RETURN WAS ACTUALLY SIGNED BY
SUCH WHOLESALER OF MOTOR FUEL.
S 4. Section 1102 of the tax law is amended by adding a new subdivi-
sion (f) to read as follows:
(F) EVERY WHOLESALER OF MOTOR FUEL, AS SUCH TERM IS DEFINED BY SUBDI-
VISION TWENTY-SEVEN OF SECTION TWO HUNDRED EIGHTY-TWO OF THIS CHAPTER,
SHALL PAY OR BE ENTITLED TO A CREDIT OR REFUND OF THE TAX IMPOSED BY
THIS SECTION ON GALLONS OF MOTOR FUEL UNDER THE CIRCUMSTANCES SET FORTH
IN PARAGRAPH THREE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ELEVEN
OF THIS ARTICLE.
S 5. Subdivision (e) of section 1111 of the tax law is amended by
adding a new paragraph 3 to read as follows:
(3) WHEN A WHOLESALER OF MOTOR FUEL SELLS MOTOR FUEL IN A REGION, AS
DEFINED IN PARAGRAPH ONE OF THIS SUBDIVISION, DIFFERENT FROM THE REGION
IN WHICH SUCH MOTOR FUEL WAS PURCHASED:
(I) IF THE REGION IN WHICH IT SELLS THE MOTOR FUEL HAS A HIGHER
PREPAID RATE AS SET FORTH IN THIS SUBDIVISION THAN THE REGION IN WHICH
THE WHOLESALER PURCHASED THE MOTOR FUEL IN, THE WHOLESALER SHALL PAY TO
THE DEPARTMENT THE DIFFERENCE IN THE RATES FOR THE GALLONAGE SOLD.
(II) IF THE REGION IN WHICH IT SELLS THE MOTOR FUEL HAS A LOWER
PREPAID RATE AS SET FORTH IN THIS SUBDIVISION THAN THE REGION IN WHICH
THE WHOLESALER PURCHASED THE MOTOR FUEL, THE WHOLESALER SHALL BE ENTI-
TLED TO A CREDIT OR REFUND FOR THE DIFFERENCE IN THE RATES FOR THE
GALLONAGE SOLD.
S 6. The tax law is amended by adding a new section 1812-g to read as
follows:
S 1812-G. PERSON NOT REGISTERED AS A WHOLESALER OF MOTOR FUEL. ANY
PERSON WHO, WHILE NOT REGISTERED AS A WHOLESALER OF MOTOR FUEL PURSUANT
TO THE PROVISIONS OF ARTICLE TWELVE-A OF THIS CHAPTER, MAKES A SALE OF
MOTOR FUEL IN THIS STATE OTHER THAN A RETAIL SALE NOT IN BULK, SHALL BE
GUILTY OF A CLASS E FELONY.
S 7. This act shall take effect September 1, 2015.
PART DD
Section 1. Section 2 of part Q of chapter 59 of the laws of 2013,
amending the tax law relating to serving an income execution with
respect to individual tax debtors without filing a warrant, is amended
to read as follows:
S 2. This act shall take effect immediately [and shall expire and be
deemed repealed on and after April 1, 2015].
S 2. This act shall take effect immediately.
PART EE
Intentionally Omitted
PART FF
Intentionally Omitted
PART GG
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Intentionally Omitted
PART HH
Intentionally Omitted
PART II
Intentionally Omitted
PART JJ
Intentionally Omitted
PART KK
Intentionally Omitted
PART LL
Intentionally Omitted
PART MM
Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by section 1 of part
BB of chapter 59 of the laws of 2014, is amended to read as follows:
(H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
this subparagraph, the track operator of a vendor track shall be eligi-
ble for a vendor's capital award of up to four percent of the total
revenue wagered at the vendor track after payout for prizes pursuant to
this chapter, which shall be used exclusively for capital project
investments to improve the facilities of the vendor track which promote
or encourage increased attendance at the video lottery gaming facility
including, but not limited to hotels, other lodging facilities, enter-
tainment facilities, retail facilities, dining facilities, events
arenas, parking garages and other improvements that enhance facility
amenities; provided that such capital investments shall be approved by
the division, in consultation with the state racing and wagering board,
and that such vendor track demonstrates that such capital expenditures
will increase patronage at such vendor track's facilities and increase
the amount of revenue generated to support state education programs. The
annual amount of such vendor's capital awards that a vendor track shall
be eligible to receive shall be limited to two million five hundred
thousand dollars, except for Aqueduct racetrack, for which there shall
be no vendor's capital awards. Except for tracks having less than one
thousand one hundred video gaming machines, and except for a vendor
track located west of State Route 14 from Sodus Point to the Pennsylva-
nia border within New York, each track operator shall be required to
co-invest an amount of capital expenditure equal to its cumulative
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vendor's capital award. For all tracks, except for Aqueduct racetrack,
the amount of any vendor's capital award that is not used during any one
year period may be carried over into subsequent years ending before
April first, two thousand [fifteen] SIXTEEN. Any amount attributable to
a capital expenditure approved prior to April first, two thousand
[fifteen] SIXTEEN and completed before April first, two thousand [seven-
teen] EIGHTEEN; or approved prior to April first, two thousand [nine-
teen] TWENTY and completed before April first, two thousand [twenty-one]
TWENTY-TWO for a vendor track located west of State Route 14 from Sodus
Point to the Pennsylvania border within New York, shall be eligible to
receive the vendor's capital award. In the event that a vendor track's
capital expenditures, approved by the division prior to April first, two
thousand [fifteen] SIXTEEN and completed prior to April first, two thou-
sand [seventeen] EIGHTEEN, exceed the vendor track's cumulative capital
award during the five year period ending April first, two thousand
[fifteen] SIXTEEN, the vendor shall continue to receive the capital
award after April first, two thousand [fifteen] SIXTEEN until such
approved capital expenditures are paid to the vendor track subject to
any required co-investment. In no event shall any vendor track that
receives a vendor fee pursuant to clause (F) or (G) of this subparagraph
be eligible for a vendor's capital award under this section. Any opera-
tor of a vendor track which has received a vendor's capital award,
choosing to divest the capital improvement toward which the award was
applied, prior to the full depreciation of the capital improvement in
accordance with generally accepted accounting principles, shall reim-
burse the state in amounts equal to the total of any such awards. Any
capital award not approved for a capital expenditure at a video lottery
gaming facility by April first, two thousand [fifteen] SIXTEEN shall be
deposited into the state lottery fund for education aid; and
S 2. This act shall take effect immediately.
PART NN
Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by section 1
of part AA of chapter 59 of the laws of 2014, is amended to read as
follows:
(a) Any racing association or corporation or regional off-track
betting corporation, authorized to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such form as
may be prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No license
shall be issued by the commission authorizing the simulcast transmission
of thoroughbred races from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per simulcast facility
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission shall not
approve any application to conduct simulcasting into individual or group
residences, homes or other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting into
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residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is authorized
by this chapter at one or more simulcast facilities for each of the
contracting off-track betting corporations which shall include wagers
made in accordance with section one thousand fifteen, one thousand
sixteen and one thousand seventeen of this article; provided further
that the contract provisions or other simulcast arrangements for such
simulcast facility shall be no less favorable than those in effect on
January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of the parties except that
statutory payments to non-contracting parties, if any, may not be
reduced; provided, however, that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall not apply. Any agreement authorizing an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth, two thousand [fifteen] SIXTEEN; provided, however, that any
party to such agreement may elect to terminate such agreement upon
conveying written notice to all other parties of such agreement at least
forty-five days prior to the effective date of the termination, via
registered mail. Any party to an agreement receiving such notice of an
intent to terminate, may request the commission to mediate between the
parties new terms and conditions in a replacement agreement between the
parties as will permit continuation of an in-home experiment until June
thirtieth, two thousand [fifteen] SIXTEEN; and (iv) no in-home simul-
casting in the thoroughbred special betting district shall occur without
the approval of the regional thoroughbred track.
S 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part AA of chapter 59 of the laws of 2014, is amended to
read as follows:
(iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [fifteen] SIXTEEN, the amount used exclusively
for purses to be awarded at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and one-half
percent of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference in total commissions
determined by comparing the total commissions available after July twen-
ty-first, nineteen hundred ninety-five to the total commissions that
would have been available to such track prior to July twenty-first,
nineteen hundred ninety-five.
S 3. The opening paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by section 3
of part AA of chapter 59 of the laws of 2014, is amended to read as
follows:
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The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [fifteen] SIXTEEN and on any day regardless of
whether or not a franchised corporation is conducting a race meeting in
Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
two thousand [fifteen] SIXTEEN. On any day on which a franchised corpo-
ration has not scheduled a racing program but a thoroughbred racing
corporation located within the state is conducting racing, every off-
track betting corporation branch office and every simulcasting facility
licensed in accordance with section one thousand seven (that have
entered into a written agreement with such facility's representative
horsemen's organization, as approved by the commission), one thousand
eight, or one thousand nine of this article shall be authorized to
accept wagers and display the live simulcast signal from thoroughbred
tracks located in another state or foreign country subject to the
following provisions:
S 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part AA of chapter 59 of
the laws of 2014, is amended to read as follows:
1. The provisions of this section shall govern the simulcasting of
races conducted at harness tracks located in another state or country
during the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [fifteen] SIXTEEN. This section shall supersede
all inconsistent provisions of this chapter.
S 5. The opening paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by section 5
of part AA of chapter 59 of the laws of 2014, is amended to read as
follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [fifteen] SIXTEEN. Every off-track betting
corporation branch office and every simulcasting facility licensed in
accordance with section one thousand seven that have entered into a
written agreement with such facility's representative horsemen's organ-
ization as approved by the commission, one thousand eight or one thou-
sand nine of this article shall be authorized to accept wagers and
display the live full-card simulcast signal of thoroughbred tracks
(which may include quarter horse or mixed meetings provided that all
such wagering on such races shall be construed to be thoroughbred races)
located in another state or foreign country, subject to the following
provisions; provided, however, no such written agreement shall be
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:
S 6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of part AA of chapter
59 of the laws of 2014, is amended to read as follows:
Notwithstanding any other provision of this chapter, for the period
July twenty-fifth, two thousand one through September eighth, two thou-
sand [fourteen] FIFTEEN, when a franchised corporation is conducting a
race meeting within the state at Saratoga Race Course, every off-track
betting corporation branch office and every simulcasting facility
licensed in accordance with section one thousand seven (that has entered
A. 6009 98
into a written agreement with such facility's representative horsemen's
organization as approved by the commission), one thousand eight or one
thousand nine of this article shall be authorized to accept wagers and
display the live simulcast signal from thoroughbred tracks located in
another state, provided that such facility shall accept wagers on races
run at all in-state thoroughbred tracks which are conducting racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
S 7. Section 32 of chapter 281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating
to simulcasting, as amended by section 7 of part AA of chapter 59 of the
laws of 2014, is amended to read as follows:
S 32. This act shall take effect immediately and the pari-mutuel tax
reductions in section six of this act shall expire and be deemed
repealed on July 1, [2015] 2016; provided, however, that nothing
contained herein shall be deemed to affect the application, qualifica-
tion, expiration, or repeal of any provision of law amended by any
section of this act, and such provisions shall be applied or qualified
or shall expire or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided by
law; provided further, however, that sections twenty-three and twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
S 8. Section 54 of chapter 346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by section
8 of part AA of chapter 59 of the laws of 2014, is amended to read as
follows:
S 54. This act shall take effect immediately; provided, however,
sections three through twelve of this act shall take effect on January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2015] 2016; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772 of
the laws of 1989 took effect.
S 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of part
AA of chapter 59 of the laws of 2014, is amended to read as follows:
(a) The franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for payment
before April first of the year following the year of their purchase,
less an amount which shall be established and retained by such fran-
chised corporation of between twelve to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and four-
teen to twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
total deposits in pools resulting from on-track exotic bets and fifteen
to thirty-six per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention rate to be
established is subject to the prior approval of the gaming commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
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"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid by such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, the following
percentages of the total pool for regular and multiple bets five per
centum of regular bets and four per centum of multiple bets plus twenty
per centum of the breaks; for exotic wagers seven and one-half per
centum plus twenty per centum of the breaks, and for super exotic bets
seven and one-half per centum plus fifty per centum of the breaks. For
the period June first, nineteen hundred ninety-five through September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three per centum and such tax on multiple wagers shall be two and one-
half per centum, plus twenty per centum of the breaks. For the period
September tenth, nineteen hundred ninety-nine through March thirty-
first, two thousand one, such tax on all wagers shall be two and six-
tenths per centum and for the period April first, two thousand one
through December thirty-first, two thousand [fifteen] SIXTEEN, such tax
on all wagers shall be one and six-tenths per centum, plus, in each such
period, twenty per centum of the breaks. Payment to the New York state
thoroughbred breeding and development fund by such franchised corpo-
ration shall be one-half of one per centum of total daily on-track pari-
mutuel pools resulting from regular, multiple and exotic bets and three
per centum of super exotic bets provided, however, that for the period
September tenth, nineteen hundred ninety-nine through March thirty-
first, two thousand one, such payment shall be six-tenths of one per
centum of regular, multiple and exotic pools and for the period April
first, two thousand one through December thirty-first, two thousand
[fifteen] SIXTEEN, such payment shall be seven-tenths of one per centum
of such pools.
S 10. This act shall take effect immediately.
PART OO
Section 1. Section 1602 of the tax law is amended by adding a new
subdivision 6 to read as follows:
6. "VIDEO LOTTERY GAMING" MEANS ANY LOTTERY GAME PLAYED ON A VIDEO
LOTTERY TERMINAL THAT ISSUES ELECTRONIC TICKETS, ALLOWS MULTIPLE PLAYERS
TO PARTICIPATE IN THE SAME GAME AND DETERMINES WINNERS TO A MATERIAL
DEGREE UPON THE ELEMENT OF CHANCE, NOTWITHSTANDING THAT THE SKILL OF A
PLAYER MAY INFLUENCE SUCH PLAYER'S CHANCE OF WINNING A GAME. VIDEO
LOTTERY GAMING MAY INCLUDE ELEMENTS OF PLAYER INTERACTION AFTER A PLAYER
RECEIVES AN INITIAL CHANCE.
S 2. Subdivision 28 of section 225.00 of the penal law, as added by
chapter 174 of the laws of 2013, is amended to read as follows:
A. 6009 100
28. "Video lottery gaming" [means any lottery game played on a video
lottery terminal, which consists of multiple players competing for a
chance to win a random drawn prize pursuant to section sixteen hundred
seventeen-a and paragraph five of subdivision a of section sixteen
hundred twelve of the tax law, as amended and implemented] HAS THE MEAN-
ING SET FORTH IN SUBDIVISION SIX OF SECTION SIXTEEN HUNDRED TWO OF THE
TAX LAW.
S 3. This act shall take effect on the thirtieth day after it shall
have become a law.
PART PP
Section 1. Paragraph d of subdivision 1 of section 207 of the racing,
pari-mutuel wagering and breeding law, as added by chapter 457 of the
laws of 2012, is amended to read as follows:
d. The board, which shall become effective upon appointment of a
majority of public members, shall terminate [three] FOUR years from its
date of creation. The board shall propose, no less than one hundred
eighty days prior to its termination, recommendations to the governor
and the state legislature representing a statutory plan for the prospec-
tive not-for-profit governing structure of The New York Racing Associ-
ation, Inc.
S 2. This act shall take effect June 18, 2015.
PART QQ
Section 1. Chapter 6 of title 11 of the administrative code of the
city of New York is amended by adding a new subchapter 3-A to read as
follows:
SUBCHAPTER 3-A
CORPORATE TAX OF 2015
SECTION 11-651 APPLICABILITY.
11-652 DEFINITIONS.
11-653 IMPOSITION OF TAX; EXEMPTIONS.
11-654 COMPUTATION OF TAX.
11-654.1 NET OPERATING LOSS.
11-654.2 RECEIPTS APPORTIONMENT.
11-654.3 COMBINED REPORTS.
11-655 REPORTS.
11-656 PAYMENT AND LIEN OF TAX.
11-657 DECLARATION OF ESTIMATED TAX.
11-658 PAYMENTS ON ACCOUNT OF ESTIMATED TAX.
11-659 COLLECTION OF TAXES.
11-660 LIMITATIONS OF TIME.
S 11-651 APPLICABILITY. 1. NOTWITHSTANDING ANYTHING TO THE CONTRARY
IN THIS CHAPTER, THIS SUBCHAPTER SHALL APPLY TO CORPORATIONS FOR TAX
YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, EXCEPT
THAT IT SHALL NOT APPLY TO ANY CORPORATION THAT (A) HAS AN ELECTION IN
EFFECT UNDER SUBSECTION (A) OF SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (B) IS A QUALIFIED
SUBCHAPTER S SUBSIDIARY WITHIN THE MEANING OF PARAGRAPH THREE OF
SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED, IN ANY TAX YEAR AFTER SUCH DATE.
SUBCHAPTERS TWO AND THREE OF THIS CHAPTER SHALL NOT APPLY TO CORPO-
RATIONS TO WHICH THIS SUBCHAPTER APPLIES FOR TAX YEARS COMMENCING ON OR
AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, EXCEPT TO THE EXTENT PROVIDED
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IN THIS SUBCHAPTER AND TO THE EXTENT THAT THE EFFECT OF THE APPLICATION
OF SUBCHAPTERS TWO AND THREE TO TAX YEARS COMMENCING PRIOR TO JANUARY
FIRST, TWO THOUSAND FIFTEEN CARRIES OVER TO TAX YEARS COMMENCING ON OR
AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN.
2. EACH REFERENCE IN THIS CODE TO SUBCHAPTERS TWO OR THREE OF THIS
CHAPTER, OR ANY OF THE PROVISIONS THEREOF, SHALL BE DEEMED A REFERENCE
ALSO TO THIS SUBCHAPTER, AND ANY OF THE APPLICABLE PROVISIONS THEREOF,
WHERE APPROPRIATE AND WITH ALL NECESSARY MODIFICATIONS.
S 11-652 DEFINITIONS. 1. (A) THE TERM "CORPORATION" INCLUDES (1) AN
ASSOCIATION WITHIN THE MEANING OF PARAGRAPH THREE OF SUBSECTION (A) OF
SECTION SEVENTY-SEVEN HUNDRED ONE OF THE INTERNAL REVENUE CODE (INCLUD-
ING, WHEN APPLICABLE, A LIMITED LIABILITY COMPANY), (2) A JOINT-STOCK
COMPANY OR ASSOCIATION, (3) A PUBLICLY TRADED PARTNERSHIP TREATED AS A
CORPORATION FOR PURPOSES OF THE INTERNAL REVENUE CODE PURSUANT TO
SECTION SEVENTY-SEVEN HUNDRED FOUR THEREOF AND (4) ANY BUSINESS
CONDUCTED BY A TRUSTEE OR TRUSTEES WHEREIN INTEREST OR OWNERSHIP IS
EVIDENCED BY CERTIFICATE OR OTHER WRITTEN INSTRUMENT;
(B) (1) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, AN UNINCOR-
PORATED ORGANIZATION THAT (I) IS DESCRIBED IN SUBPARAGRAPH ONE OR THREE
OF SUCH PARAGRAPH (A) OF THIS SUBDIVISION, (II) WAS SUBJECT TO THE
PROVISIONS OF CHAPTER FIVE OF THIS TITLE FOR ITS TAXABLE YEAR BEGINNING
IN NINETEEN HUNDRED NINETY-FIVE, AND (III) MADE A ONE-TIME ELECTION NOT
TO BE TREATED AS A CORPORATION AND, INSTEAD, TO CONTINUE TO BE SUBJECT
TO THE PROVISIONS OF CHAPTER FIVE OF THIS TITLE FOR ITS TAXABLE YEARS
BEGINNING IN NINETEEN HUNDRED NINETY-SIX AND THEREAFTER, SHALL CONTINUE
TO BE SUBJECT TO THE PROVISIONS OF CHAPTER FIVE OF THIS TITLE FOR ITS
TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED NINETY-SIX.
(2) AN ELECTION UNDER THIS PARAGRAPH SHALL CONTINUE TO BE IN EFFECT
UNTIL REVOKED BY THE UNINCORPORATED ORGANIZATION. AN ELECTION UNDER THIS
PARAGRAPH SHALL BE REVOKED BY THE FILING OF A RETURN UNDER THIS SUBCHAP-
TER FOR THE FIRST TAXABLE YEAR WITH RESPECT TO WHICH SUCH REVOCATION IS
TO BE EFFECTIVE. SUCH RETURN SHALL BE FILED ON OR BEFORE THE DUE DATE
(DETERMINED WITH REGARD TO EXTENSIONS) FOR FILING SUCH RETURN. IN NO
EVENT SHALL SUCH ELECTION OR REVOCATION BE FOR A PART OF A TAXABLE YEAR.
(C) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, A CORPORATION
SHALL NOT INCLUDE AN ENTITY CLASSIFIED AS A PARTNERSHIP FOR FEDERAL
INCOME TAX PURPOSES.
2. THE TERM "SUBSIDIARY" MEANS A CORPORATION OF WHICH OVER FIFTY PER
CENTUM OF THE NUMBER OF SHARES OF STOCK ENTITLING THE HOLDERS THEREOF TO
VOTE FOR THE ELECTION OF DIRECTORS OR TRUSTEES IS OWNED BY THE TAXPAYER.
2-A. THE TERM "TAXPAYER" MEANS ANY CORPORATION SUBJECT TO TAX UNDER
THIS SUBCHAPTER.
3. INTENTIONALLY OMITTED.
3-A. THE TERM "STOCK" MEANS AN INTEREST IN A CORPORATION THAT IS
TREATED AS EQUITY FOR FEDERAL INCOME TAX PURPOSES.
4. (A) THE TERM "INVESTMENT CAPITAL" MEANS INVESTMENTS IN STOCKS THAT
ARE HELD BY THE TAXPAYER FOR MORE THAN SIX CONSECUTIVE MONTHS BUT ARE
NOT AND HAVE NEVER BEEN USED BY THE TAXPAYER IN THE REGULAR COURSE OF
BUSINESS, OR, IF THE TAXPAYER MAKES THE ELECTION PROVIDED FOR IN SUBPAR-
AGRAPH ONE OF PARAGRAPH (A) OF SUBDIVISION FIVE OF SECTION 11-654.2 OF
THIS SUBCHAPTER, ARE NOT QUALIFIED FINANCIAL INSTRUMENTS AS DESCRIBED IN
SUBDIVISION FIVE OF SECTION 11-654.2 OF THIS SUBCHAPTER. STOCK IN A
CORPORATION THAT IS CONDUCTING A UNITARY BUSINESS WITH THE TAXPAYER,
STOCK IN A CORPORATION THAT IS INCLUDED IN A COMBINED REPORT WITH THE
TAXPAYER PURSUANT TO THE COMMONLY OWNED GROUP ELECTION IN SUBDIVISION
THREE OF SECTION 11-654.3 OF THIS SUBCHAPTER, AND STOCK ISSUED BY THE
A. 6009 102
TAXPAYER SHALL NOT CONSTITUTE INVESTMENT CAPITAL. FOR PURPOSES OF THIS
SUBDIVISION, IF THE TAXPAYER OWNS OR CONTROLS, DIRECTLY OR INDIRECTLY,
LESS THAN TWENTY PERCENT OF THE VOTING POWER OF THE STOCK OF A CORPO-
RATION, THAT CORPORATION WILL BE PRESUMED TO BE CONDUCTING A BUSINESS
THAT IS NOT UNITARY WITH THE BUSINESS OF THE TAXPAYER.
(B) THERE SHALL BE DEDUCTED FROM INVESTMENT CAPITAL ANY LIABILITIES
WHICH ARE DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO INVESTMENT CAPITAL. IF
THE AMOUNT OF THOSE LIABILITIES EXCEEDS THE AMOUNT OF INVESTMENT CAPI-
TAL, THE AMOUNT OF INVESTMENT CAPITAL WILL BE ZERO.
(C) INVESTMENT CAPITAL SHALL NOT INCLUDE ANY SUCH INVESTMENTS THE
INCOME FROM WHICH IS EXCLUDED FROM ENTIRE NET INCOME PURSUANT TO THE
PROVISIONS OF PARAGRAPH (C-1) OF SUBDIVISION EIGHT OF THIS SECTION, AND
THAT INVESTMENT CAPITAL SHALL BE COMPUTED WITHOUT REGARD TO LIABILITIES
DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO SUCH INVESTMENTS, BUT ONLY IF AIR
CARRIERS ORGANIZED IN THE UNITED STATES AND OPERATING IN THE FOREIGN
COUNTRY OR COUNTRIES IN WHICH THE TAXPAYER HAS ITS MAJOR BASE OF OPER-
ATIONS AND IN WHICH IT IS ORGANIZED, RESIDENT OR HEADQUARTERED (IF NOT
IN THE SAME COUNTRY AS ITS MAJOR BASE OF OPERATIONS) ARE NOT SUBJECT TO
ANY TAX BASED ON OR MEASURED BY CAPITAL IMPOSED BY SUCH FOREIGN COUNTRY
OR COUNTRIES OR ANY POLITICAL SUBDIVISION THEREOF, OR IF TAXED, ARE
PROVIDED AN EXEMPTION, EQUIVALENT TO THAT PROVIDED FOR HEREIN, FROM ANY
TAX BASED ON OR MEASURED BY CAPITAL IMPOSED BY SUCH FOREIGN COUNTRY OR
COUNTRIES AND FROM ANY SUCH TAX IMPOSED BY ANY POLITICAL SUBDIVISION
THEREOF.
(D) IF A TAXPAYER ACQUIRES STOCK DURING THE SECOND HALF OF ITS TAXABLE
YEAR AND OWNS THAT STOCK ON THE LAST DAY OF THE TAXABLE YEAR, IT WILL BE
PRESUMED, SOLELY FOR THE PURPOSES OF DETERMINING WHETHER THAT STOCK
SHOULD BE CLASSIFIED AS INVESTMENT CAPITAL AFTER IT IS ACQUIRED, THAT
THE TAXPAYER HELD THAT STOCK FOR MORE THAN SIX CONSECUTIVE MONTHS DURING
THE TAXABLE YEAR. THIS PRESUMPTION SHALL APPLY ONLY IF THE TAXPAYER IN
FACT OWNS THE STOCK AT THE TIME IT FILES ITS ORIGINAL REPORT FOR THE
TAXABLE YEAR IN WHICH IT ACQUIRES THE STOCK. HOWEVER, IF THE TAXPAYER
DOES NOT IN FACT HOLD THAT STOCK AS INVESTMENT CAPITAL FOR MORE THAN SIX
CONSECUTIVE MONTHS, THE TAXPAYER MUST INCREASE ITS BUSINESS CAPITAL IN
THE IMMEDIATELY SUCCEEDING TAXABLE YEAR BY THE AMOUNT INCLUDED IN
INVESTMENT CAPITAL FOR THAT STOCK, NET OF ANY LIABILITIES ATTRIBUTABLE
TO THAT STOCK COMPUTED AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION
AND MUST INCREASE ITS BUSINESS INCOME IN THE IMMEDIATELY SUCCEEDING
TAXABLE YEAR BY THE AMOUNT OF INCOME AND NET GAINS (BUT NOT LESS THAN
ZERO) FROM THAT STOCK INCLUDED IN INVESTMENT INCOME, LESS ANY INTEREST
DEDUCTIONS DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THAT STOCK, AS
PROVIDED IN SUBDIVISION FIVE OF THIS SECTION.
(E) WHEN INCOME OR GAIN FROM A DEBT OBLIGATION OR OTHER SECURITY
CANNOT BE ALLOCATED TO THE CITY USING THE BUSINESS ALLOCATION PERCENTAGE
AS A RESULT OF THE UNITED STATES CONSTITUTIONAL PRINCIPLES, THE DEBT
OBLIGATION OR OTHER SECURITY WILL BE INCLUDED IN INVESTMENT CAPITAL.
5. (A) THE TERM "INVESTMENT INCOME" MEANS INCOME, INCLUDING CAPITAL
GAINS IN EXCESS OF CAPITAL LOSSES, FROM INVESTMENT CAPITAL, TO THE
EXTENT INCLUDED IN COMPUTING ENTIRE NET INCOME, LESS, IN THE DISCRETION
OF THE COMMISSIONER OF FINANCE, ANY INTEREST DEDUCTIONS ALLOWABLE IN
COMPUTING ENTIRE NET INCOME WHICH ARE DIRECTLY OR INDIRECTLY ATTRIBUT-
ABLE TO INVESTMENT CAPITAL OR INVESTMENT INCOME, PROVIDED, HOWEVER, THAT
IN NO CASE SHALL INVESTMENT INCOME EXCEED ENTIRE NET INCOME. IF THE
AMOUNT OF INTEREST DEDUCTIONS SUBTRACTED UNDER THE PRECEDING SENTENCE
EXCEEDS INVESTMENT INCOME, THE EXCESS OF SUCH AMOUNT OVER INVESTMENT
INCOME MUST BE ADDED BACK TO ENTIRE NET INCOME.
A. 6009 103
(B) IN LIEU OF SUBTRACTING FROM INVESTMENT INCOME THE AMOUNT OF THOSE
INTEREST DEDUCTIONS, THE TAXPAYER MAY ELECT TO REDUCE ITS TOTAL INVEST-
MENT INCOME BY FORTY PERCENT. IF THE TAXPAYER MAKES THIS ELECTION, THE
TAXPAYER MUST ALSO MAKE THE ELECTIONS PROVIDED FOR IN PARAGRAPHS (B) AND
(C) OF SUBDIVISION FIVE-A OF THIS SECTION. A TAXPAYER WHICH DOES NOT
MAKE THIS ELECTION BECAUSE IT HAS NO INVESTMENT CAPITAL WILL NOT BE
PRECLUDED FROM MAKING THOSE OTHER ELECTIONS.
(C) INVESTMENT INCOME SHALL NOT INCLUDE ANY AMOUNT TREATED AS DIVI-
DENDS PURSUANT TO SECTION SEVENTY-EIGHT OF THE INTERNAL REVENUE CODE.
5-A. (A) THE TERM "OTHER EXEMPT INCOME" MEANS THE SUM OF EXEMPT CFC
INCOME AND EXEMPT UNITARY CORPORATION DIVIDENDS.
(B) "EXEMPT CFC INCOME" MEANS THE INCOME REQUIRED TO BE INCLUDED IN
THE TAXPAYER'S FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF
SECTION NINE HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE, RECEIVED
FROM A CORPORATION THAT IS CONDUCTING A UNITARY BUSINESS WITH THE
TAXPAYER BUT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER,
LESS, IN THE DISCRETION OF THE COMMISSIONER OF FINANCE, ANY INTEREST
DEDUCTIONS DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THAT INCOME. IN LIEU
OF SUBTRACTING FROM ITS EXEMPT CFC INCOME THE AMOUNT OF THOSE INTEREST
DEDUCTIONS, THE TAXPAYER MAY ELECT TO REDUCE ITS TOTAL EXEMPT CFC INCOME
BY FORTY PERCENT. IF THE TAXPAYER MAKES THIS ELECTION, THE TAXPAYER MUST
ALSO MAKE THE ELECTIONS PROVIDED FOR IN PARAGRAPH (B) OF SUBDIVISION
FIVE OF THIS SECTION AND PARAGRAPH (C) OF THIS SUBDIVISION. A TAXPAYER
WHICH DOES NOT MAKE THIS ELECTION BECAUSE IT HAS NO EXEMPT CFC INCOME
WILL NOT BE PRECLUDED FROM MAKING THOSE OTHER ELECTIONS.
(C) "EXEMPT UNITARY CORPORATE DIVIDENDS" MEANS THOSE DIVIDENDS FROM A
CORPORATION THAT IS CONDUCTING A UNITARY BUSINESS WITH THE TAXPAYER BUT
IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER, LESS, IN THE
DISCRETION OF THE COMMISSIONER OF FINANCE, ANY INTEREST DEDUCTIONS
DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO SUCH INCOME. OTHER THAN DIVIDEND
INCOME RECEIVED FROM CORPORATIONS THAT ARE TAXABLE UNDER CHAPTER ELEVEN
OF THIS TITLE (EXCEPT FOR VENDORS OF UTILITY SERVICES THAT ARE ALSO
TAXABLE UNDER THIS SUBCHAPTER) OR WOULD BE TAXABLE UNDER CHAPTER ELEVEN
OF THIS TITLE (EXCEPT FOR VENDORS OF UTILITY SERVICES THAT ARE ALSO
TAXABLE UNDER THIS SUBCHAPTER) IF SUBJECT TO TAX, IN LIEU OF SUBTRACTING
FROM THIS DIVIDEND INCOME THOSE INTEREST DEDUCTIONS, THE TAXPAYER MAY
ELECT TO REDUCE THE TOTAL AMOUNT OF THIS DIVIDEND INCOME BY FORTY
PERCENT. IF THE TAXPAYER MAKES THIS ELECTION, THE TAXPAYER MUST ALSO
MAKE THE ELECTIONS PROVIDED FOR IN PARAGRAPH (B) OF SUBDIVISION FIVE OF
THIS SECTION AND PARAGRAPH (B) OF THIS SUBDIVISION. A TAXPAYER THAT DOES
NOT MAKE THIS ELECTION BECAUSE IT HAS NOT RECEIVED ANY EXEMPT UNITARY
CORPORATION DIVIDENDS OR IS PRECLUDED FROM MAKING THIS ELECTION FOR
DIVIDENDS RECEIVED FROM CORPORATIONS THAT ARE TAXABLE UNDER CHAPTER
ELEVEN OF THIS TITLE (EXCEPT FOR VENDORS OF UTILITY SERVICES THAT ARE
ALSO TAXABLE UNDER THIS SUBCHAPTER) OR WOULD BE TAXABLE UNDER CHAPTER
ELEVEN OF THIS TITLE IF SUBJECT TO TAX (EXCEPT FOR VENDORS OF UTILITY
SERVICES THAT ARE ALSO TAXABLE UNDER THIS SUBCHAPTER) WILL NOT BE
PRECLUDED FROM MAKING THOSE OTHER ELECTIONS.
(D) IF THE TAXPAYER ATTRIBUTES INTEREST DEDUCTIONS TO OTHER EXEMPT
INCOME AND THE AMOUNT DEDUCTED EXCEEDS OTHER EXEMPT INCOME, THE EXCESS
OF THE INTEREST DEDUCTIONS OVER OTHER EXEMPT INCOME MUST BE ADDED BACK
TO ENTIRE NET INCOME. IN NO CASE SHALL OTHER EXEMPT INCOME EXCEED ENTIRE
NET INCOME.
(E) OTHER EXEMPT INCOME SHALL NOT INCLUDE ANY AMOUNT TREATED AS DIVI-
DENDS PURSUANT TO SECTION SEVENTY-EIGHT OF THE INTERNAL REVENUE CODE.
A. 6009 104
6. (A) THE TERM "BUSINESS CAPITAL" MEANS ALL ASSETS, OTHER THAN
INVESTMENT CAPITAL AND STOCK ISSUED BY THE TAXPAYER, LESS LIABILITIES
NOT DEDUCTED FROM INVESTMENT CAPITAL; PROVIDED, HOWEVER, BUSINESS CAPI-
TAL SHALL INCLUDE ONLY THOSE ASSETS THE INCOME, LOSS OR EXPENSE OF WHICH
ARE PROPERLY REFLECTED (OR WOULD HAVE BEEN PROPERLY REFLECTED IF NOT
FULLY DEPRECIATED OR EXPENSED OR DEPRECIATED OR EXPENSED TO A NOMINAL
AMOUNT) IN THE COMPUTATION OF ENTIRE NET INCOME FOR THE TAXABLE YEAR.
(B) PROVIDED, FURTHER, "BUSINESS CAPITAL" SHALL NOT INCLUDE ASSETS TO
THE EXTENT EMPLOYED FOR THE PURPOSE OF GENERATING INCOME WHICH IS
EXCLUDED FROM ENTIRE NET INCOME PURSUANT TO THE PROVISIONS OF PARAGRAPH
(C-1) OF SUBDIVISION EIGHT OF THIS SECTION AND SHALL BE COMPUTED WITHOUT
REGARD TO LIABILITIES DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO SUCH
ASSETS, BUT ONLY IF AIR CARRIERS ORGANIZED IN THE UNITED STATES AND
OPERATING IN THE FOREIGN COUNTRY OR COUNTRIES IN WHICH THE TAXPAYER HAS
ITS MAJOR BASE OF OPERATIONS AND IN WHICH IT IS ORGANIZED, RESIDENT OR
HEADQUARTERED (IF NOT IN THE SAME COUNTRY AS ITS MAJOR BASE OF OPER-
ATIONS) ARE NOT SUBJECT TO ANY TAX BASED ON OR MEASURED BY CAPITAL
IMPOSED BY SUCH FOREIGN COUNTRY OR COUNTRIES OR ANY POLITICAL SUBDIVI-
SION THEREOF, OR IF TAXED, ARE PROVIDED AN EXEMPTION, EQUIVALENT TO THAT
PROVIDED FOR HEREIN, FROM ANY TAX BASED ON OR MEASURED BY CAPITAL
IMPOSED BY SUCH FOREIGN COUNTRY OR COUNTRIES AND FROM ANY SUCH TAX
IMPOSED BY ANY POLITICAL SUBDIVISION THEREOF.
7. THE TERM "BUSINESS INCOME" MEANS ENTIRE NET INCOME MINUS INVESTMENT
INCOME AND OTHER EXEMPT INCOME. IN NO EVENT SHALL THE SUM OF INVESTMENT
INCOME AND OTHER EXEMPT INCOME EXCEED ENTIRE NET INCOME. IF THE TAXPAYER
MAKES THE ELECTION PROVIDED FOR IN SUBPARAGRAPH ONE OF PARAGRAPH (A) OF
SUBDIVISION FIVE OF SECTION 11-654.2 OF THIS SUBCHAPTER, THEN ALL INCOME
FROM QUALIFIED FINANCIAL INSTRUMENTS SHALL CONSTITUTE BUSINESS INCOME.
8. THE TERM "ENTIRE NET INCOME" MEANS TOTAL NET INCOME FROM ALL SOURC-
ES, WHICH SHALL BE PRESUMABLY THE SAME AS THE ENTIRE TAXABLE INCOME (BUT
NOT ALTERNATIVE MINIMUM TAXABLE INCOME), WHICH EXCEPT AS HEREAFTER
PROVIDED IN THIS SUBDIVISION.
1. THE TAXPAYER IS REQUIRED TO REPORT TO THE UNITED STATES TREASURY
DEPARTMENT, OR
2. THE TAXPAYER, IN THE CASE OF A CORPORATION THAT IS EXEMPT FROM
FEDERAL INCOME TAX (OTHER THAN THE TAX ON UNRELATED BUSINESS TAXABLE
INCOME IMPOSED UNDER SECTION FIVE HUNDRED ELEVEN OF THE INTERNAL REVENUE
CODE) BUT WHICH IS SUBJECT TO TAX UNDER THIS SUBCHAPTER, WOULD HAVE BEEN
REQUIRED TO REPORT TO THE UNITED STATES TREASURY DEPARTMENT BUT FOR SUCH
EXEMPTION, OR
3. IN THE CASE OF AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF THE
INTERNAL REVENUE CODE IS NOT TREATED AS A "DOMESTIC CORPORATION" AS
DEFINED IN SECTION SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE, IS
EFFECTIVELY CONNECTED WITH THE CONDUCT OF A TRADE OR BUSINESS WITHIN THE
UNITED STATES AS DETERMINED UNDER SECTION EIGHT HUNDRED EIGHTY-TWO OF
THE INTERNAL REVENUE CODE.
(A) ENTIRE NET INCOME SHALL NOT INCLUDE:
(1) INTENTIONALLY OMITTED;
(2) INTENTIONALLY OMITTED;
(2-A) ANY AMOUNTS TREATED AS DIVIDENDS PURSUANT TO SECTION
SEVENTY-EIGHT OF THE INTERNAL REVENUE CODE AND NOT OTHERWISE DEDUCTIBLE
UNDER SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH;
(3) BONA FIDE GIFTS;
(4) INCOME AND DEDUCTIONS WITH RESPECT TO AMOUNTS RECEIVED FROM SCHOOL
DISTRICTS AND FROM CORPORATIONS AND ASSOCIATIONS, ORGANIZED AND OPERATED
EXCLUSIVELY FOR RELIGIOUS, CHARITABLE OR EDUCATIONAL PURPOSES, NO PART
A. 6009 105
OF THE NET EARNINGS OF WHICH INURES TO THE BENEFIT OF ANY PRIVATE SHARE-
HOLDER OR INDIVIDUAL, FOR THE OPERATION OF SCHOOL BUSES;
(5) ANY REFUND OR CREDIT OF A TAX IMPOSED UNDER THIS CHAPTER, OR
IMPOSED BY ARTICLE NINE, NINE-A, TWENTY-THREE, OR FORMER ARTICLE THIR-
TY-TWO OF THE TAX LAW, FOR WHICH TAX NO EXCLUSION OR DEDUCTION WAS
ALLOWED IN DETERMINING THE TAXPAYER'S ENTIRE NET INCOME UNDER THIS
SUBCHAPTER, SUBCHAPTER TWO, OR SUBCHAPTER THREE OF THIS CHAPTER FOR ANY
PRIOR YEAR;
(6) INTENTIONALLY OMITTED;
(7) THAT PORTION OF WAGES AND SALARIES PAID OR INCURRED FOR THE TAXA-
BLE YEAR FOR WHICH A DEDUCTION IS NOT ALLOWED PURSUANT TO THE PROVISIONS
OF SECTION TWO HUNDRED EIGHTY-C OF THE INTERNAL REVENUE CODE;
(8) EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT-
ING VEHICLE DESCRIBED IN SUBPARAGRAPH (D) OF PARAGRAPH EIGHT OF
SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF
A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT,
FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH
IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED
EIGHTY-NINE, ANY AMOUNT WHICH IS INCLUDED IN THE TAXPAYER'S FEDERAL
TAXABLE INCOME SOLELY AS A RESULT OF AN ELECTION MADE PURSUANT TO THE
PROVISIONS OF SUCH PARAGRAPH EIGHT AS IT WAS IN EFFECT FOR AGREEMENTS
ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN HUNDRED EIGHTY-FOUR;
(9) EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT-
ING VEHICLE DESCRIBED IN SUBPARAGRAPH (D) OF PARAGRAPH EIGHT OF
SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF
A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT,
FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH
IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED
EIGHTY-NINE, ANY AMOUNT WHICH THE TAXPAYER COULD HAVE EXCLUDED FROM
FEDERAL TAXABLE INCOME HAD IT NOT MADE THE ELECTION PROVIDED FOR IN SUCH
PARAGRAPH EIGHT AS IT WAS IN EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO
JANUARY FIRST, NINETEEN HUNDRED EIGHTY-FOUR;
(10) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (J) OF THIS SUBDIVI-
SION;
(11) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (J) OF THIS
SUBDIVISION APPLIES, THE AMOUNT, IF ANY, BY WHICH THE AGGREGATE OF THE
AMOUNTS DESCRIBED IN SUBPARAGRAPH ELEVEN OF PARAGRAPH (B) OF THIS SUBDI-
VISION ATTRIBUTABLE TO SUCH PROPERTY EXCEEDS THE AGGREGATE OF THE
AMOUNTS DESCRIBED IN PARAGRAPH (J) OF THIS SUBDIVISION ATTRIBUTABLE TO
SUCH PROPERTY;
(12) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (K) OF THIS SUBDIVI-
SION;
(13) THE AMOUNT DEDUCTIBLE PURSUANT TO PARAGRAPH (O) OF THIS SUBDIVI-
SION; AND
(14) THE AMOUNT COMPUTED PURSUANT TO PARAGRAPH (Q), (R) OR (S) OF THIS
SUBDIVISION, BUT ONLY THE AMOUNT DETERMINED PURSUANT TO ONE OF SUCH
PARAGRAPHS.
(A-1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER, IN THE
CASE OF A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP SUBJECT TO THE TAX
IMPOSED BY CHAPTER ELEVEN OF THIS TITLE AS A UTILITY, AS DEFINED IN
SUBDIVISION SIX OF SECTION 11-1101 OF SUCH CHAPTER, ENTIRE NET INCOME
SHALL NOT INCLUDE THE TAXPAYER'S DISTRIBUTIVE OR PRO RATA SHARE FOR
FEDERAL INCOME TAX PURPOSES OF ANY ITEM OF INCOME, GAIN, LOSS OR
DEDUCTION OF SUCH PARTNERSHIP, OR ANY ITEM OF INCOME, GAIN, LOSS OR
A. 6009 106
DEDUCTION OF SUCH PARTNERSHIP THAT THE TAXPAYER IS REQUIRED TO TAKE INTO
ACCOUNT SEPARATELY FOR FEDERAL INCOME TAX PURPOSES.
(B) ENTIRE NET INCOME SHALL BE DETERMINED WITHOUT THE EXCLUSION,
DEDUCTION OR CREDIT OF:
(1) IN THE CASE OF AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF
THE INTERNAL REVENUE CODE IS NOT TREATED AS A "DOMESTIC CORPORATION" AS
DEFINED IN SECTION SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE, (I)
ANY PART OF ANY INCOME FROM DIVIDENDS OR INTEREST ON ANY KIND OF STOCK,
SECURITIES OR INDEBTEDNESS, BUT ONLY IF SUCH INCOME IS TREATED AS EFFEC-
TIVELY CONNECTED WITH THE CONDUCT OF A TRADE OR BUSINESS IN THE UNITED
STATES PURSUANT TO SECTION EIGHT HUNDRED SIXTY-FOUR OF THE INTERNAL
REVENUE CODE, (II) ANY INCOME EXEMPT FROM FEDERAL TAXABLE INCOME UNDER
ANY TREATY OBLIGATION OF THE UNITED STATES, BUT ONLY IF SUCH INCOME
WOULD BE TREATED AS EFFECTIVELY CONNECTED IN THE ABSENCE OF SUCH
EXEMPTION PROVIDED THAT SUCH TREATY OBLIGATION DOES NOT PRECLUDE THE
TAXATION OF SUCH INCOME BY A STATE, OR (III) ANY INCOME WHICH WOULD BE
TREATED AS EFFECTIVELY CONNECTED IF SUCH INCOME WERE NOT EXCLUDED FROM
GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION ONE HUNDRED THREE OR
THE INTERNAL REVENUE CODE;
(2) ANY PART OF ANY INCOME FROM DIVIDENDS OR INTEREST ON ANY KIND OF
STOCK, SECURITIES, OR INDEBTEDNESS;
(3) TAXES ON OR MEASURED BY PROFITS OR INCOME PAID OR ACCRUED TO THE
UNITED STATES, ANY OF ITS POSSESSIONS, TERRITORIES OR COMMONWEALTHS,
INCLUDING TAXES IN LIEU OF ANY OF THE FOREGOING TAXES OTHERWISE GENERAL-
LY IMPOSED BY ANY POSSESSION, TERRITORY OR COMMONWEALTH OF THE UNITED
STATES, OR TAXES PAID OR ACCRUED TO THE STATE UNDER ARTICLE NINE,
NINE-A, THIRTEEN-A OR THIRTY-TWO OF THE TAX LAW AS IN EFFECT ON DECEMBER
THIRTY-FIRST, TWO THOUSAND FOURTEEN;
(3-A) TAXES ON OR MEASURED BY PROFITS OR INCOME, OR WHICH INCLUDE
PROFITS OR INCOME AS A MEASURE, PAID OR ACCRUED TO ANY OTHER STATE OF
THE UNITED STATES, OR ANY POLITICAL SUBDIVISION THEREOF, OR TO THE
DISTRICT OF COLUMBIA, INCLUDING TAXES EXPRESSLY IN LIEU OF ANY OF THE
FOREGOING TAXES OTHERWISE GENERALLY IMPOSED BY ANY OTHER STATE OF THE
UNITED STATES, OR ANY POLITICAL SUBDIVISION THEREOF, OR THE DISTRICT OF
COLUMBIA;
(4) TAXES IMPOSED UNDER THIS CHAPTER;
(4-A) INTENTIONALLY OMITTED;
(4-B) THE AMOUNT ALLOWED AS AN EXCLUSION OR A DEDUCTION IMPOSED BY THE
TAX LAW IN DETERMINING THE ENTIRE TAXABLE INCOME FOR A RELOCATION
DESCRIBED IN SUBDIVISION THIRTEEN OF SECTION 11-654 OF THIS SUBCHAPTER
WHICH THE TAXPAYER IS REQUIRED TO REPORT TO THE UNITED STATES TREASURY
DEPARTMENT BUT ONLY SUCH PORTION OF SUCH EXCLUSION OR DEDUCTION WHICH IS
NOT IN EXCESS OF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO SUBDIVI-
SION THIRTEEN OF SECTION 11-654 OF THIS SUBCHAPTER;
(4-C) THE AMOUNT ALLOWED AS AN EXCLUSION OR A DEDUCTION IMPOSED BY THE
TAX LAW FOR A RELOCATION DESCRIBED IN SUBDIVISION FOURTEEN OF SECTION
11-654 OF THIS SUBCHAPTER IN DETERMINING THE ENTIRE TAXABLE INCOME WHICH
THE TAXPAYER IS REQUIRED TO REPORT TO THE UNITED STATES TREASURY DEPART-
MENT BUT ONLY SUCH PORTION OF SUCH EXCLUSION OR DEDUCTION WHICH IS NOT
IN EXCESS OF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO SUBDIVISION
FOURTEEN OF SECTION 11-654 OF THIS SUBCHAPTER;
(4-D) INTENTIONALLY OMITTED;
(4-E) INTENTIONALLY OMITTED;
(5) INTENTIONALLY OMITTED;
A. 6009 107
(6) ANY AMOUNT ALLOWED AS A DEDUCTION FOR THE TAXABLE YEAR UNDER
SECTION ONE HUNDRED SEVENTY-TWO OF THE INTERNAL REVENUE CODE, INCLUDING
CARRYOVERS OF DEDUCTIONS FROM PRIOR TAXABLE YEARS;
(7) ANY AMOUNT BY REASON OF THE GRANTING, ISSUING OR ASSUMING OF A
RESTRICTED STOCK OPTION, AS DEFINED IN THE INTERNAL REVENUE CODE OF
NINETEEN HUNDRED FIFTY-FOUR, OR BY REASON OF THE TRANSFER OF THE SHARE
OF STOCK UPON THE EXERCISE OF THE OPTION, UNLESS SUCH SHARE IS DISPOSED
OF BY THE GRANTEE OF THE OPTION WITHIN TWO YEARS FROM THE DATE OF THE
GRANTING OF THE OPTION OR WITHIN SIX MONTHS AFTER THE TRANSFER OF SUCH
SHARE TO THE GRANTEE;
(8) INTENTIONALLY OMITTED;
(9) EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT-
ING VEHICLE DESCRIBED IN SUBPARAGRAPH (D) OF PARAGRAPH EIGHT OF
SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF
A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT,
FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH
IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED
EIGHTY-NINE, ANY AMOUNT WHICH THE TAXPAYER CLAIMED AS A DEDUCTION IN
COMPUTING ITS FEDERAL TAXABLE INCOME SOLELY AS A RESULT OF AN ELECTION
MADE PURSUANT TO THE PROVISIONS OF SUCH PARAGRAPH EIGHT AS IT WAS IN
EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN
HUNDRED EIGHTY-FOUR;
(10) EXCEPT WITH RESPECT TO PROPERTY WHICH IS A QUALIFIED MASS COMMUT-
ING VEHICLE DESCRIBED IN SUBPARAGRAPH (D) OF PARAGRAPH EIGHT OF
SUBSECTION (F) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE (RELATING TO QUALIFIED MASS COMMUTING VEHICLES) AND PROPERTY OF
A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT,
FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH
IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED
EIGHTY-NINE, ANY AMOUNT WHICH THE TAXPAYER WOULD HAVE BEEN REQUIRED TO
INCLUDE IN THE COMPUTATION OF ITS FEDERAL TAXABLE INCOME HAD IT NOT MADE
THE ELECTION PERMITTED PURSUANT TO SUCH PARAGRAPH EIGHT AS IT WAS IN
EFFECT FOR AGREEMENTS ENTERED INTO PRIOR TO JANUARY FIRST, NINETEEN
HUNDRED EIGHTY-FOUR;
(11) IN THE CASE OF PROPERTY PLACED IN SERVICE IN TAXABLE YEARS BEGIN-
NING BEFORE NINETEEN HUNDRED NINETY-FOUR, FOR TAXABLE YEARS BEGINNING
AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-ONE, EXCEPT WITH
RESPECT TO PROPERTY SUBJECT TO THE PROVISIONS OF SECTION TWO HUNDRED
EIGHTY-F OF THE INTERNAL REVENUE CODE, PROPERTY SUBJECT TO THE
PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE
CODE WHICH IS PLACED IN SERVICE IN THIS STATE IN TAXABLE YEARS BEGINNING
AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-FOUR AND PROPERTY
OF A TAXPAYER PRINCIPALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAM-
BOAT, FERRY OR NAVIGATION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES,
WHICH IS PLACED IN SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN
HUNDRED EIGHTY-NINE, THE AMOUNT ALLOWABLE AS A DEDUCTION DETERMINED
UNDER SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE CODE;
(12) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (J) OF THIS
SUBDIVISION APPLIES, THE AMOUNT, IF ANY, BY WHICH THE AGGREGATE OF THE
AMOUNTS DESCRIBED IN SUCH PARAGRAPH (J) ATTRIBUTABLE TO SUCH PROPERTY
EXCEEDS THE AGGREGATE OF THE AMOUNTS DESCRIBED IN SUBPARAGRAPH ELEVEN OF
THIS PARAGRAPH ATTRIBUTABLE TO SUCH PROPERTY;
(13) INTENTIONALLY OMITTED;
(14) INTENTIONALLY OMITTED;
(15) INTENTIONALLY OMITTED;
A. 6009 108
(16) IN THE CASE OF QUALIFIED PROPERTY DESCRIBED IN PARAGRAPH TWO OF
SUBSECTION (K) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE, OTHER THAN QUALIFIED RESURGENCE ZONE PROPERTY DESCRIBED IN
PARAGRAPH (M) OF THIS SUBDIVISION, AND OTHER THAN QUALIFIED NEW YORK
LIBERTY ZONE PROPERTY DESCRIBED IN PARAGRAPH TWO OF SUBSECTION (B) OF
SECTION FOURTEEN HUNDRED-L OF THE INTERNAL REVENUE CODE (WITHOUT REGARD
TO CLAUSE (I) OF SUBPARAGRAPH (C) OF SUCH PARAGRAPH), THE AMOUNT ALLOW-
ABLE AS A DEDUCTION UNDER SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTER-
NAL REVENUE CODE;
(17) IN THE CASE OF A TAXPAYER THAT IS NOT AN ELIGIBLE FARMER AS
DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE
AMOUNT ALLOWABLE AS A DEDUCTION UNDER SECTIONS ONE HUNDRED SEVENTY-NINE,
ONE HUNDRED SIXTY-SEVEN AND ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL
REVENUE CODE WITH RESPECT TO A SPORT UTILITY VEHICLE THAT IS NOT A
PASSENGER AUTOMOBILE AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (D) OF
SECTION TWO HUNDRED EIGHTY-F OF THE INTERNAL REVENUE CODE;
(18) THE AMOUNT OF ANY DEDUCTION ALLOWED PURSUANT TO SECTION ONE
HUNDRED NINETY-NINE OF THE INTERNAL REVENUE CODE;
(19) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR TAXES IMPOSED UNDER ARTI-
CLE TWENTY-THREE OF THE TAX LAW;
(C) INTENTIONALLY OMITTED;
(C-1)(1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER, IN
THE CASE OF A TAXPAYER WHICH IS A FOREIGN AIR CARRIER HOLDING A FOREIGN
AIR CARRIER PERMIT ISSUED BY THE UNITED STATES DEPARTMENT OF TRANSPORTA-
TION PURSUANT TO SECTION FOUR HUNDRED TWO OF THE FEDERAL AVIATION ACT OF
NINETEEN HUNDRED FIFTY-EIGHT, AS AMENDED, AND WHICH IS QUALIFIED UNDER
SUBPARAGRAPH TWO OF THIS PARAGRAPH, ENTIRE NET INCOME SHALL NOT INCLUDE,
AND SHALL BE COMPUTED WITHOUT THE DEDUCTION OF, AMOUNTS DIRECTLY OR
INDIRECTLY ATTRIBUTABLE TO, (I) ANY INCOME DERIVED FROM THE INTERNA-
TIONAL OPERATION OF AIRCRAFT AS DESCRIBED IN AND SUBJECT TO THE
PROVISIONS OF SECTION EIGHT HUNDRED EIGHTY-THREE OF THE INTERNAL REVENUE
CODE, (II) INCOME WITHOUT THE UNITED STATES WHICH IS DERIVED FROM THE
OPERATION OF AIRCRAFT, AND (III) INCOME WITHOUT THE UNITED STATES WHICH
IS OF A TYPE DESCRIBED IN SUBDIVISION (A) OF SECTION EIGHT HUNDRED
EIGHTY-ONE OF THE INTERNAL REVENUE CODE EXCEPT THAT IT IS DERIVED FROM
SOURCES WITHOUT THE UNITED STATES. ENTIRE NET INCOME SHALL INCLUDE
INCOME DESCRIBED IN CLAUSES (I), (II) AND (III) OF THIS SUBPARAGRAPH IN
THE CASE OF TAXPAYERS NOT DESCRIBED IN THE PREVIOUS SENTENCE;
(2) A TAXPAYER IS QUALIFIED UNDER THIS SUBPARAGRAPH IF AIR CARRIERS
ORGANIZED IN THE UNITED STATES AND OPERATING IN THE FOREIGN COUNTRY OR
COUNTRIES IN WHICH THE TAXPAYER HAS ITS MAJOR BASE OF OPERATIONS AND IN
WHICH IT IS ORGANIZED, RESIDENT OR HEADQUARTERED (IF NOT IN THE SAME
COUNTRY AS ITS MAJOR BASE OF OPERATIONS) ARE NOT SUBJECT TO ANY INCOME
TAX OR OTHER TAX BASED ON OR MEASURED BY INCOME OR RECEIPTS IMPOSED BY
SUCH FOREIGN COUNTRY OR COUNTRIES OR ANY POLITICAL SUBDIVISION THEREOF,
OR IF SO SUBJECT TO SUCH TAX, ARE PROVIDED AN EXEMPTION FROM SUCH TAX
EQUIVALENT TO THAT PROVIDED FOR HEREIN;
(D) THE COMMISSIONER OF FINANCE MAY, WHENEVER NECESSARY IN ORDER PROP-
ERLY TO REFLECT THE ENTIRE NET INCOME OF ANY TAXPAYER, DETERMINE THE
YEAR OR PERIOD IN WHICH ANY ITEM OF INCOME OR DEDUCTION SHALL BE
INCLUDED, WITHOUT REGARD TO THE METHOD OF ACCOUNTING EMPLOYED BY THE
TAXPAYER;
(E) THE ENTIRE NET INCOME OF ANY BRIDGE COMMISSION CREATED BY ACT OF
CONGRESS TO CONSTRUCT A BRIDGE ACROSS AN INTERNATIONAL BOUNDARY MEANS
ITS GROSS INCOME LESS THE EXPENSE OF MAINTAINING AND OPERATING ITS PROP-
ERTIES, THE ANNUAL INTEREST UPON ITS BONDS AND OTHER OBLIGATIONS, AND
A. 6009 109
THE ANNUAL CHARGE FOR THE RETIREMENT OF SUCH BONDS OR OBLIGATIONS AT
MATURITY;
(F) INTENTIONALLY OMITTED;
(G) AT THE ELECTION OF THE TAXPAYER, A DEDUCTION SHALL BE ALLOWED FOR
EXPENDITURES PAID OR INCURRED DURING THE TAXABLE YEAR FOR THE
CONSTRUCTION, RECONSTRUCTION, ERECTION OR IMPROVEMENT OF INDUSTRIAL
WASTE TREATMENT FACILITIES AND AIR POLLUTION CONTROL FACILITIES.
(1)(I) THE TERM "INDUSTRIAL WASTE TREATMENT FACILITIES" SHALL MEAN
FACILITIES FOR THE TREATMENT, NEUTRALIZATION OR STABILIZATION OF INDUS-
TRIAL WASTE (AS THE TERM "INDUSTRIAL WASTE" IS DEFINED IN SECTION
17-0105 OF THE ENVIRONMENTAL CONSERVATION LAW) FROM A POINT IMMEDIATELY
PRECEDING THE POINT OF SUCH TREATMENT, NEUTRALIZATION OR STABILIZATION
TO THE POINT OF DISPOSAL, INCLUDING THE NECESSARY PUMPING AND TRANSMIT-
TING FACILITIES, BUT EXCLUDING SUCH FACILITIES INSTALLED FOR THE PRIMARY
PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE IN THE MANUFACTURING
PROCESS OR ARE MARKETABLE.
(II) THE TERM "AIR POLLUTION CONTROL FACILITIES" SHALL MEAN FACILITIES
WHICH REMOVE, REDUCE, OR RENDER LESS NOXIOUS AIR CONTAMINANTS EMITTED
FROM AN AIR CONTAMINATION SOURCE (AS THE TERMS "AIR CONTAMINANT" AND
"AIR CONTAMINATION SOURCE" ARE DEFINED IN SECTION 19-0107 OF THE ENVI-
RONMENTAL CONSERVATION LAW) FROM A POINT IMMEDIATELY PRECEDING THE POINT
OF SUCH REMOVAL, REDUCTION OR RENDERING TO THE POINT OF DISCHARGE OF
AIR, MEETING EMISSION STANDARDS AS ESTABLISHED BY THE AIR POLLUTION
CONTROL BOARD, BUT EXCLUDING SUCH FACILITIES INSTALLED FOR THE PRIMARY
PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE IN THE MANUFACTURING
PROCESS OR ARE MARKETABLE AND EXCLUDING THOSE FACILITIES WHICH RELY FOR
THEIR EFFICACY ON DILUTION, DISPERSION OR ASSIMILATION OF AIR CONTAM-
INANTS IN THE AMBIENT AIR AFTER EMISSION.
(2) HOWEVER, SUCH DEDUCTION SHALL BE ALLOWED ONLY (I) WITH RESPECT TO
TANGIBLE PROPERTY WHICH IS DEPRECIABLE, PURSUANT TO SECTION ONE HUNDRED
SIXTY-SEVEN OF THE INTERNAL REVENUE CODE, HAVING A SITUS IN THE CITY AND
USED IN THE TAXPAYER'S TRADE OR BUSINESS, THE CONSTRUCTION, RECON-
STRUCTION, ERECTION OR IMPROVEMENT OF WHICH, IN THE CASE OF INDUSTRIAL
WASTE TREATMENT FACILITIES, IS INITIATED ON OR AFTER JANUARY FIRST,
NINETEEN HUNDRED SIXTY-SIX, AND ONLY FOR EXPENDITURES PAID OR INCURRED
PRIOR TO JANUARY FIRST, NINETEEN HUNDRED SEVENTY-TWO, OR WHICH, IN THE
CASE OF AIR POLLUTION CONTROL FACILITIES, IS INITIATED ON OR AFTER JANU-
ARY FIRST, NINETEEN HUNDRED SIXTY-SIX, AND
(II) ON CONDITION THAT SUCH FACILITIES HAVE BEEN CERTIFIED BY THE
STATE COMMISSIONER OF ENVIRONMENTAL CONSERVATION OR THE STATE COMMIS-
SIONER'S DESIGNATED REPRESENTATIVE, IN THE SAME MANNER AS PROVIDED FOR
IN SECTION 17-0707 OR 19-0309 OF THE ENVIRONMENTAL CONSERVATION LAW, AS
APPLICABLE, AS COMPLYING WITH APPLICABLE PROVISIONS OF THE ENVIRONMENTAL
CONSERVATION LAW, THE STATE SANITARY CODE AND REGULATIONS, PERMITS OR
ORDERS ISSUED PURSUANT THERETO, AND
(III) ON CONDITION THAT ENTIRE NET INCOME FOR THE TAXABLE YEAR AND ALL
SUCCEEDING TAXABLE YEARS BE COMPUTED WITHOUT ANY DEDUCTIONS FOR SUCH
EXPENDITURES OR FOR DEPRECIATION OF THE SAME PROPERTY OTHER THAN THE
DEDUCTIONS ALLOWED BY THIS PARAGRAPH EXCEPT TO THE EXTENT THAT THE BASIS
OF THE PROPERTY MAY BE ATTRIBUTABLE TO FACTORS OTHER THAN SUCH EXPENDI-
TURES, OR IN CASE A DEDUCTION IS ALLOWABLE PURSUANT TO THIS PARAGRAPH
FOR ONLY A PART OF SUCH EXPENDITURES, ON CONDITION THAT ANY DEDUCTION
ALLOWED FOR FEDERAL INCOME TAX PURPOSES FOR SUCH EXPENDITURES OR FOR
DEPRECIATION OF THE SAME PROPERTY BE PROPORTIONATELY REDUCED IN COMPUT-
ING ENTIRE NET INCOME FOR THE TAXABLE YEAR AND ALL SUCCEEDING TAXABLE
YEARS, AND
A. 6009 110
(IV) WHERE THE ELECTION PROVIDED FOR IN PARAGRAPH (D) OF SUBDIVISION
THREE OF SECTION 11-604 OF THIS CHAPTER OR THE ELECTION PROVIDED FOR IN
SUBDIVISION (K) OF SECTION 11-641 OF THIS CHAPTER HAS NOT BEEN EXERCISED
IN RESPECT TO THE SAME PROPERTY.
(3)(I) IF EXPENDITURES IN RESPECT TO AN INDUSTRIAL WASTE TREATMENT
FACILITY OR AN AIR POLLUTION CONTROL FACILITY HAVE BEEN DEDUCTED AS
PROVIDED HEREIN AND IF WITHIN TEN YEARS FROM THE END OF THE TAXABLE YEAR
IN WHICH SUCH DEDUCTION WAS ALLOWED SUCH PROPERTY OR ANY PART THEREOF IS
USED FOR THE PRIMARY PURPOSE OF SALVAGING MATERIALS WHICH ARE USABLE IN
THE MANUFACTURING PROCESS OR ARE MARKETABLE, THE TAXPAYER SHALL REPORT
SUCH CHANGE OF USE IN ITS REPORT FOR THE FIRST TAXABLE YEAR DURING WHICH
IT OCCURS, AND THE COMMISSIONER OF FINANCE MAY RECOMPUTE THE TAX FOR THE
YEAR OR YEARS FOR WHICH SUCH DEDUCTION WAS ALLOWED AND ANY CARRYBACK OR
CARRYOVER YEAR, AND MAY ASSESS ANY ADDITIONAL TAX RESULTING FROM SUCH
RECOMPUTATION WITHIN THE TIME FIXED BY PARAGRAPH (H) OF SUBDIVISION
THREE OF SECTION 11-674 OF THIS CHAPTER.
(II) IF A DEDUCTION IS ALLOWED AS HEREIN PROVIDED FOR EXPENDITURES
PAID OR INCURRED DURING ANY TAXABLE YEAR ON THE BASIS OF A TEMPORARY
CERTIFICATE OF COMPLIANCE ISSUED PURSUANT TO THE ENVIRONMENTAL CONSERVA-
TION LAW AND IF THE TAXPAYER FAILS TO OBTAIN A PERMANENT CERTIFICATE OF
COMPLIANCE UPON COMPLETION OF THE FACILITIES WITH RESPECT TO WHICH SUCH
TEMPORARY CERTIFICATE WAS ISSUED, THE TAXPAYER SHALL REPORT SUCH FAILURE
IN ITS REPORT FOR THE TAXABLE YEAR DURING WHICH SUCH FACILITIES ARE
COMPLETED, AND THE COMMISSIONER OF FINANCE MAY RECOMPUTE THE TAX FOR THE
YEAR OR YEARS FOR WHICH SUCH DEDUCTION WAS ALLOWED AND ANY CARRYBACK OR
CARRYOVER YEAR, AND MAY ASSESS ANY ADDITIONAL TAX RESULTING FROM SUCH
RECOMPUTATION WITHIN THE TIME FIXED BY PARAGRAPH (H) OF SUBDIVISION
THREE OF SECTION 11-674 OF THIS CHAPTER.
(4) IN ANY TAXABLE YEAR WHEN PROPERTY IS SOLD OR OTHERWISE DISPOSED
OF, WITH RESPECT TO WHICH A DEDUCTION HAS BEEN ALLOWED PURSUANT TO THIS
PARAGRAPH, SUCH DEDUCTION SHALL BE DISREGARDED IN COMPUTING GAIN OR
LOSS, AND THE GAIN OR LOSS ON THE SALE OR OTHER DISPOSITION OF SUCH
PROPERTY SHALL BE THE GAIN OR LOSS ENTERING INTO THE COMPUTATION OF
ENTIRE TAXABLE INCOME WHICH THE TAXPAYER IS REQUIRED TO REPORT TO THE
UNITED STATES TREASURY FOR SUCH TAXABLE YEAR;
(H) WITH RESPECT TO GAIN DERIVED FROM THE SALE OR OTHER DISPOSITION OF
ANY PROPERTY ACQUIRED PRIOR TO JANUARY FIRST, NINETEEN HUNDRED
SIXTY-SIX; WHICH HAD A FEDERAL ADJUSTED BASIS ON SUCH DATE (OR ON THE
DATE OF ITS SALE OR OTHER DISPOSITION PRIOR TO JANUARY FIRST, NINETEEN
HUNDRED SIXTY-SIX) LOWER THAN ITS FAIR MARKET VALUE ON JANUARY FIRST,
NINETEEN HUNDRED SIXTY-SIX OR THE DATE OF ITS SALE OR OTHER DISPOSITION
PRIOR THERETO, EXCEPT PROPERTY DESCRIBED IN SUBSECTIONS ONE AND FOUR OF
SECTION TWELVE HUNDRED TWENTY-ONE OF THE INTERNAL REVENUE CODE, THERE
SHALL BE DEDUCTED FROM ENTIRE NET INCOME, THE DIFFERENCE BETWEEN (1) THE
AMOUNT OF THE TAXPAYER'S FEDERAL TAXABLE INCOME, AND (2) THE AMOUNT OF
THE TAXPAYER'S FEDERAL TAXABLE INCOME (IF SMALLER THAN THE AMOUNT
DESCRIBED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH) COMPUTED AS IF THE
FEDERAL ADJUSTED BASIS OF EACH SUCH PROPERTY (ON THE SALE OR OTHER
DISPOSITION OF WHICH GAIN WAS DERIVED) ON THE DATE OF THE SALE OR OTHER
DISPOSITION HAD BEEN EQUAL TO EITHER (I) ITS FAIR MARKET VALUE ON JANU-
ARY FIRST, NINETEEN HUNDRED SIXTY-SIX OR THE DATE OF ITS SALE OR OTHER
DISPOSITION PRIOR TO JANUARY FIRST, NINETEEN HUNDRED SIXTY-SIX, PLUS OR
MINUS ALL ADJUSTMENTS TO BASIS MADE WITH RESPECT TO SUCH PROPERTY FOR
FEDERAL INCOME TAX PURPOSES FOR PERIODS ON AND AFTER JANUARY FIRST,
NINETEEN HUNDRED SIXTY-SIX OR (II) THE AMOUNT REALIZED FROM ITS SALE OR
DISPOSITION, WHICHEVER IS LOWER; PROVIDED, HOWEVER, THAT THE TOTAL
A. 6009 111
MODIFICATION PROVIDED BY THIS PARAGRAPH SHALL NOT EXCEED THE AMOUNT OF
THE TAXPAYER'S NET GAIN FROM THE SALE OR OTHER DISPOSITION OF ALL SUCH
PROPERTY.
(I) IF THE PERIOD COVERED BY A REPORT UNDER THIS SUBCHAPTER IS OTHER
THAN THE PERIOD COVERED BY THE REPORT OF THE UNITED STATES TREASURY
DEPARTMENT, ENTIRE NET INCOME SHALL BE DETERMINED BY MULTIPLYING THE
FEDERAL TAXABLE INCOME (AS ADJUSTED PURSUANT TO THE PROVISIONS OF THIS
SUBCHAPTER) BY THE NUMBER OF CALENDAR MONTHS OR MAJOR PARTS THEREOF
COVERED BY THE REPORT UNDER THIS SUBCHAPTER AND DIVIDING BY THE NUMBER
OF CALENDAR MONTHS OR MAJOR PARTS THEREOF COVERED BY THE REPORT TO SUCH
DEPARTMENT. IF IT SHALL APPEAR THAT SUCH METHOD OF DETERMINING ENTIRE
NET INCOME DOES NOT PROPERLY REFLECT THE TAXPAYER'S INCOME DURING THE
PERIOD COVERED BY THE REPORT UNDER THIS SUBCHAPTER, THE COMMISSIONER OF
FINANCE SHALL BE AUTHORIZED IN HIS OR HER DISCRETION TO DETERMINE SUCH
ENTIRE NET INCOME SOLELY ON THE BASIS OF THE TAXPAYER'S INCOME DURING
THE PERIOD COVERED BY ITS REPORT UNDER THIS SUBCHAPTER.
(J) IN THE CASE OF PROPERTY PLACED IN SERVICE IN TAXABLE YEARS BEGIN-
NING BEFORE NINETEEN HUNDRED NINETY-FOUR, FOR TAXABLE YEARS BEGINNING
AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-ONE, EXCEPT WITH
RESPECT TO PROPERTY SUBJECT TO THE PROVISIONS OF SECTION TWO HUNDRED
EIGHTY-F OF THE INTERNAL REVENUE CODE AND PROPERTY SUBJECT TO THE
PROVISIONS OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE
CODE WHICH IS PLACED IN SERVICE IN THIS STATE IN TAXABLE YEARS BEGINNING
AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED EIGHTY-FOUR, AND PROVIDED
A DEDUCTION HAS NOT BEEN EXCLUDED FROM ENTIRE NET INCOME PURSUANT TO
SUBPARAGRAPH NINE OF PARAGRAPH (B) OF THIS SUBDIVISION, A TAXPAYER SHALL
BE ALLOWED WITH RESPECT TO PROPERTY WHICH IS SUBJECT TO THE PROVISIONS
OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE CODE THE
DEPRECIATION DEDUCTION ALLOWABLE UNDER SECTION ONE HUNDRED SIXTY-SEVEN
OF THE INTERNAL REVENUE CODE AS SUCH SECTION WOULD HAVE APPLIED TO PROP-
ERTY PLACED IN SERVICE ON DECEMBER THIRTY-FIRST, NINETEEN HUNDRED
EIGHTY. THIS PARAGRAPH SHALL NOT APPLY TO PROPERTY OF A TAXPAYER PRINCI-
PALLY ENGAGED IN THE CONDUCT OF AN AVIATION, STEAMBOAT, FERRY OR NAVIGA-
TION BUSINESS, OR TWO OR MORE OF SUCH BUSINESSES, WHICH IS PLACED IN
SERVICE BEFORE TAXABLE YEARS BEGINNING IN NINETEEN HUNDRED EIGHTY-NINE.
(K) IN THE CASE OF QUALIFIED PROPERTY DESCRIBED IN PARAGRAPH TWO OF
SUBSECTION (K) OF SECTION ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVEN-
UE CODE, OTHER THAN QUALIFIED RESURGENCE ZONE PROPERTY DESCRIBED IN
PARAGRAPH (M) OF THIS SUBDIVISION, AND OTHER THAN QUALIFIED NEW YORK
LIBERTY ZONE PROPERTY DESCRIBED IN PARAGRAPH TWO OF SUBSECTION (B) OF
SECTION FOURTEEN HUNDRED L OF THE INTERNAL REVENUE CODE (WITHOUT REGARD
TO CLAUSE (I) OF SUBPARAGRAPH (C) OF SUCH PARAGRAPH), THE DEPRECIATION
DEDUCTION ALLOWABLE UNDER SECTION ONE HUNDRED SIXTY-SEVEN AS SUCH
SECTION WOULD HAVE APPLIED TO SUCH PROPERTY HAD IT BEEN ACQUIRED BY THE
TAXPAYER ON SEPTEMBER TENTH, TWO THOUSAND ONE, PROVIDED, HOWEVER, THAT
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
FOUR, IN THE CASE OF A PASSENGER MOTOR VEHICLE OR A SPORT UTILITY VEHI-
CLE SUBJECT TO THE PROVISIONS OF PARAGRAPH (O) OF THIS SUBDIVISION, THE
LIMITATION UNDER CLAUSE (I) OF SUBPARAGRAPH (A) OF PARAGRAPH ONE OF
SUBDIVISION (A) OF SECTION TWO HUNDRED EIGHTY-F OF THE INTERNAL REVENUE
CODE APPLICABLE TO THE AMOUNT ALLOWED AS A DEDUCTION UNDER THIS PARA-
GRAPH SHALL BE DETERMINED AS OF THE DATE SUCH VEHICLE WAS PLACED IN
SERVICE AND NOT AS OF SEPTEMBER TENTH, TWO THOUSAND ONE.
(L) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (K) OF THIS
SUBDIVISION APPLIES, THE AMOUNT OF ANY GAIN OR LOSS INCLUDIBLE IN ENTIRE
NET INCOME SHALL BE ADJUSTED TO REFLECT THE INCLUSIONS AND EXCLUSIONS
A. 6009 112
FROM ENTIRE NET INCOME PURSUANT TO SUBPARAGRAPH TWELVE OF PARAGRAPH (A)
AND SUBPARAGRAPH SIXTEEN OF PARAGRAPH (B) OF THIS SUBDIVISION ATTRIBUT-
ABLE TO SUCH PROPERTY.
(M) FOR PURPOSES OF THIS PARAGRAPH AND PARAGRAPH (L) OF THIS SUBDIVI-
SION, QUALIFIED RESURGENCE ZONE PROPERTY SHALL MEAN QUALIFIED PROPERTY
DESCRIBED IN PARAGRAPH TWO OF SUBSECTION (K) OF SECTION ONE HUNDRED
SIXTY-EIGHT OF THE INTERNAL REVENUE CODE SUBSTANTIALLY ALL OF THE USE OF
WHICH IS IN THE RESURGENCE ZONE, AS DEFINED BELOW, AND IS IN THE ACTIVE
CONDUCT OF A TRADE OR BUSINESS BY THE TAXPAYER IN SUCH ZONE, AND THE
ORIGINAL USE OF WHICH IN THE RESURGENCE ZONE COMMENCES WITH THE TAXPAYER
AFTER SEPTEMBER TENTH, TWO THOUSAND ONE. THE RESURGENCE ZONE SHALL MEAN
THE AREA OF NEW YORK COUNTY BOUNDED ON THE SOUTH BY A LINE RUNNING FROM
THE INTERSECTION OF THE HUDSON RIVER WITH THE HOLLAND TUNNEL, AND
RUNNING THENCE EAST TO CANAL STREET, THEN RUNNING ALONG THE CENTERLINE
OF CANAL STREET TO THE INTERSECTION OF THE BOWERY AND CANAL STREET,
RUNNING THENCE IN A SOUTHEASTERLY DIRECTION DIAGONALLY ACROSS MANHATTAN
BRIDGE PLAZA, TO THE MANHATTAN BRIDGE, AND THENCE ALONG THE CENTERLINE
OF THE MANHATTAN BRIDGE TO THE POINT WHERE THE CENTERLINE OF THE MANHAT-
TAN BRIDGE WOULD INTERSECT WITH THE EASTERLY BANK OF THE EAST RIVER, AND
BOUNDED ON THE NORTH BY A LINE RUNNING FROM THE INTERSECTION OF THE
HUDSON RIVER WITH THE HOLLAND TUNNEL AND RUNNING THENCE NORTH ALONG WEST
AVENUE TO THE INTERSECTION OF CLARKSON STREET THEN RUNNING EAST ALONG
THE CENTERLINE OF CLARKSON STREET TO THE INTERSECTION OF WASHINGTON
AVENUE, THEN RUNNING SOUTH ALONG THE CENTERLINE OF WASHINGTON AVENUE TO
THE INTERSECTION OF WEST HOUSTON STREET, THEN EAST ALONG THE CENTERLINE
OF WEST HOUSTON STREET, THEN AT THE INTERSECTION OF THE AVENUE OF THE
AMERICAS CONTINUING EAST ALONG THE CENTERLINE OF EAST HOUSTON STREET TO
THE EASTERLY BANK OF THE EAST RIVER.
(N) RELATED MEMBERS EXPENSE ADD BACK. (1) FOR PURPOSES OF THIS PARA-
GRAPH: (I) "RELATED MEMBER" MEANS A RELATED PERSON AS DEFINED IN SUBPAR-
AGRAPH (C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR HUNDRED
SIXTY-FIVE OF THE INTERNAL REVENUE CODE, EXCEPT THAT "FIFTY PERCENT"
SHALL BE SUBSTITUTED FOR "TEN PERCENT".
(II) "EFFECTIVE RATE OF TAX" MEANS, AS TO ANY CITY, THE MAXIMUM STATU-
TORY RATE OF TAX IMPOSED BY THE CITY ON OR MEASURED BY A RELATED
MEMBER'S NET INCOME MULTIPLIED BY THE APPORTIONMENT PERCENTAGE, IF ANY,
APPLICABLE TO THE RELATED MEMBER UNDER THE LAWS OF SAID JURISDICTION.
FOR PURPOSES OF THIS DEFINITION, THE EFFECTIVE RATE OF TAX AS TO ANY
CITY IS ZERO WHERE THE RELATED MEMBER'S NET INCOME TAX LIABILITY IN SAID
CITY IS REPORTED ON A COMBINED OR CONSOLIDATED RETURN INCLUDING BOTH THE
TAXPAYER AND THE RELATED MEMBER WHERE THE REPORTED TRANSACTIONS BETWEEN
THE TAXPAYER AND THE RELATED MEMBER ARE ELIMINATED OR OFFSET. ALSO, FOR
PURPOSES OF THIS DEFINITION, WHEN COMPUTING THE EFFECTIVE RATE OF TAX
FOR A CITY IN WHICH A RELATED MEMBER'S NET INCOME IS ELIMINATED OR
OFFSET BY A CREDIT OR SIMILAR ADJUSTMENT THAT IS DEPENDENT UPON THE
RELATED MEMBER EITHER MAINTAINING OR MANAGING INTANGIBLE PROPERTY OR
COLLECTING INTEREST INCOME IN THAT CITY, THE MAXIMUM STATUTORY RATE OF
TAX IMPOSED BY SAID CITY SHALL BE DECREASED TO REFLECT THE STATUTORY
RATE OF TAX THAT APPLIES TO THE RELATED MEMBER AS EFFECTIVELY REDUCED BY
SUCH CREDIT OR SIMILAR ADJUSTMENT.
(III) ROYALTY PAYMENTS ARE PAYMENTS DIRECTLY CONNECTED TO THE ACQUISI-
TION, USE, MAINTENANCE OR MANAGEMENT, OWNERSHIP, SALE, EXCHANGE, OR ANY
OTHER DISPOSITION OF LICENSES, TRADEMARKS, COPYRIGHTS, TRADE NAMES,
TRADE DRESS, SERVICE MARKS, MASK WORKS, TRADE SECRETS, PATENTS AND ANY
OTHER SIMILAR TYPES OF INTANGIBLE ASSETS AS DETERMINED BY THE COMMIS-
SIONER OF FINANCE, AND INCLUDE AMOUNTS ALLOWABLE AS INTEREST DEDUCTIONS
A. 6009 113
UNDER SECTION ONE HUNDRED SIXTY-THREE OF THE INTERNAL REVENUE CODE TO
THE EXTENT SUCH AMOUNTS ARE DIRECTLY OR INDIRECTLY FOR, RELATED TO OR IN
CONNECTION WITH THE ACQUISITION, USE, MAINTENANCE OR MANAGEMENT, OWNER-
SHIP, SALE, EXCHANGE OR DISPOSITION OF SUCH INTANGIBLE ASSETS.
(IV) A VALID BUSINESS PURPOSE IS ONE OR MORE BUSINESS PURPOSES, OTHER
THAN THE AVOIDANCE OR REDUCTION OF TAXATION, WHICH ALONE OR IN COMBINA-
TION CONSTITUTE THE PRIMARY MOTIVATION FOR SOME BUSINESS ACTIVITY OR
TRANSACTION, WHICH ACTIVITY OR TRANSACTION CHANGES IN A MEANINGFUL WAY,
APART FROM TAX EFFECTS, THE ECONOMIC POSITION OF THE TAXPAYER. THE
ECONOMIC POSITION OF THE TAXPAYER INCLUDES AN INCREASE IN THE MARKET
SHARE OF THE TAXPAYER, OR THE ENTRY BY THE TAXPAYER INTO NEW BUSINESS
MARKETS.
(2) ROYALTY EXPENSE ADD BACKS. (I) EXCEPT WHERE A TAXPAYER IS INCLUDED
IN A COMBINED REPORT PURSUANT TO SECTION 11-654.3 OF THIS SUBCHAPTER
WITH THE APPLICABLE RELATED MEMBER, FOR THE PURPOSE OF COMPUTING ENTIRE
NET INCOME OR OTHER APPLICABLE TAXABLE BASIS, A TAXPAYER MUST ADD BACK
ROYALTY PAYMENTS DIRECTLY OR INDIRECTLY PAID, ACCRUED, OR INCURRED IN
CONNECTION WITH ONE OR MORE DIRECT OR INDIRECT TRANSACTIONS WITH ONE OR
MORE RELATED MEMBERS DURING THE TAXABLE YEAR TO THE EXTENT DEDUCTIBLE IN
CALCULATING FEDERAL TAXABLE INCOME.
(II) EXCEPTIONS. (A) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL
NOT APPLY TO THE PORTION OF THE ROYALTY PAYMENT THAT THE TAXPAYER ESTAB-
LISHES, BY CLEAR AND CONVINCING EVIDENCE OF THE TYPE AND IN THE FORM
SPECIFIED BY THE COMMISSIONER OF FINANCE, MEETS ALL OF THE FOLLOWING
REQUIREMENTS: (I) THE RELATED MEMBER WAS SUBJECT TO TAX IN THIS CITY OR
ANOTHER CITY WITHIN THE UNITED STATES OR A FOREIGN NATION OR SOME COMBI-
NATION THEREOF ON A TAX BASE THAT INCLUDED THE ROYALTY PAYMENT PAID,
ACCRUED OR INCURRED BY THE TAXPAYER; (II) THE RELATED MEMBER DURING THE
SAME TAXABLE YEAR DIRECTLY OR INDIRECTLY PAID, ACCRUED OR INCURRED SUCH
PORTION TO A PERSON THAT IS NOT A RELATED MEMBER; AND (III) THE TRANS-
ACTION GIVING RISE TO THE ROYALTY PAYMENT BETWEEN THE TAXPAYER AND THE
RELATED MEMBER WAS UNDERTAKEN FOR A VALID BUSINESS PURPOSE.
(B) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL NOT APPLY IF THE
TAXPAYER ESTABLISHES, BY CLEAR AND CONVINCING EVIDENCE OF THE TYPE AND
IN THE FORM SPECIFIED BY THE COMMISSIONER OF FINANCE, THAT: (I) THE
RELATED MEMBER WAS SUBJECT TO TAX ON OR MEASURED BY ITS NET INCOME IN
THIS CITY OR ANOTHER CITY WITHIN THE UNITED STATES, OR SOME COMBINATION
THEREOF; (II) THE TAX BASE FOR SAID TAX INCLUDED THE ROYALTY PAYMENT
PAID, ACCRUED OR INCURRED BY THE TAXPAYER; AND (III) THE AGGREGATE
EFFECTIVE RATE OF TAX APPLIED TO THE RELATED MEMBER IN THOSE JURISDIC-
TIONS IS NO LESS THAN EIGHTY PERCENT OF THE STATUTORY RATE OF TAX THAT
APPLIED TO THE TAXPAYER UNDER SECTION 11-604 OF THIS CHAPTER FOR THE
TAXABLE YEAR.
(C) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL NOT APPLY IF THE
TAXPAYER ESTABLISHES, BY CLEAR AND CONVINCING EVIDENCE OF THE TYPE AND
IN THE FORM SPECIFIED BY THE COMMISSIONER OF FINANCE, THAT: (I) THE
ROYALTY PAYMENT WAS PAID, ACCRUED OR INCURRED TO A RELATED MEMBER ORGAN-
IZED UNDER THE LAWS OF A COUNTRY OTHER THAN THE UNITED STATES; (II) THE
RELATED MEMBER'S INCOME FROM THE TRANSACTION WAS SUBJECT TO A COMPREHEN-
SIVE INCOME TAX TREATY BETWEEN SUCH COUNTRY AND THE UNITED STATES; (III)
THE RELATED MEMBER WAS SUBJECT TO TAX IN A FOREIGN NATION ON A TAX BASE
THAT INCLUDED THE ROYALTY PAYMENT PAID, ACCRUED OR INCURRED BY THE
TAXPAYER; (IV) THE RELATED MEMBER'S INCOME FROM THE TRANSACTION WAS
TAXED IN SUCH COUNTRY AT AN EFFECTIVE RATE OF TAX AT LEAST EQUAL TO THAT
IMPOSED BY THIS CITY; AND (V) THE ROYALTY PAYMENT WAS PAID, ACCRUED OR
A. 6009 114
INCURRED PURSUANT TO A TRANSACTION THAT WAS UNDERTAKEN FOR A VALID BUSI-
NESS PURPOSE AND USING TERMS THAT REFLECT AN ARM'S LENGTH RELATIONSHIP.
(D) THE ADJUSTMENT REQUIRED IN THIS PARAGRAPH SHALL NOT APPLY IF THE
TAXPAYER AND THE COMMISSIONER OF FINANCE AGREE IN WRITING TO THE APPLI-
CATION OR USE OF ALTERNATIVE ADJUSTMENTS OR COMPUTATIONS. THE COMMIS-
SIONER OF FINANCE MAY, IN HIS OR HER DISCRETION, AGREE TO THE APPLICA-
TION OR USE OF ALTERNATIVE ADJUSTMENTS OR COMPUTATIONS WHEN HE OR SHE
CONCLUDES THAT IN THE ABSENCE OF SUCH AGREEMENT THE INCOME OF THE
TAXPAYER WOULD NOT BE PROPERLY REFLECTED.
(O) IN THE CASE OF A TAXPAYER THAT IS NOT AN ELIGIBLE FARMER AS
DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THE TAX LAW, THE
DEDUCTIONS ALLOWABLE UNDER SECTIONS ONE HUNDRED SEVENTY-NINE, ONE
HUNDRED SIXTY-SEVEN AND ONE HUNDRED SIXTY-EIGHT OF THE INTERNAL REVENUE
CODE WITH RESPECT TO A SPORT UTILITY VEHICLE THAT IS NOT A PASSENGER
AUTOMOBILE AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (D) OF SECTION TWO
HUNDRED EIGHTY-F OF THE INTERNAL REVENUE CODE, DETERMINED AS IF SUCH
SPORT UTILITY VEHICLE WERE A PASSENGER AUTOMOBILE AS DEFINED IN SUCH
PARAGRAPH FIVE. FOR PURPOSES OF SUBPARAGRAPH SIXTEEN OF PARAGRAPH (B)
AND PARAGRAPH (K) OF THIS SUBDIVISION, THE TERMS QUALIFIED RESURGENCE
ZONE PROPERTY AND QUALIFIED NEW YORK LIBERTY ZONE PROPERTY DESCRIBED IN
PARAGRAPH TWO OF SUBSECTION B OF SECTION FOURTEEN HUNDRED-L OF THE
INTERNAL REVENUE CODE SHALL NOT INCLUDE ANY SPORT UTILITY VEHICLE THAT
IS NOT A PASSENGER AUTOMOBILE AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION
(D) OF SECTION TWO HUNDRED EIGHTY-F OF THE INTERNAL REVENUE CODE.
(P) UPON THE DISPOSITION OF PROPERTY TO WHICH PARAGRAPH (O) OF THIS
SUBDIVISION APPLIES, THE AMOUNT OF ANY GAIN OR LOSS INCLUDIBLE IN ENTIRE
NET INCOME SHALL BE ADJUSTED TO REFLECT THE INCLUSIONS AND EXCLUSIONS
FROM ENTIRE NET INCOME PURSUANT TO SUBPARAGRAPH THIRTEEN OF PARAGRAPH
(A) AND SUBPARAGRAPH SEVENTEEN OF PARAGRAPH (B) OF THIS SUBDIVISION
ATTRIBUTABLE TO SUCH PROPERTY.
(Q) SUBTRACTION MODIFICATION FOR COMMUNITY BANKS AND SMALL THRIFTS.
(1) A TAXPAYER THAT IS A QUALIFIED COMMUNITY BANK AS DEFINED IN SUBPARA-
GRAPH TWO OF THIS PARAGRAPH OR A SMALL THRIFT INSTITUTION AS DEFINED IN
SUBPARAGRAPH TWO-A OF THIS PARAGRAPH SHALL BE ALLOWED A DEDUCTION IN
COMPUTING ENTIRE NET INCOME EQUAL TO THE AMOUNT COMPUTED UNDER SUBPARA-
GRAPH THREE OF THIS PARAGRAPH.
(2) TO BE A QUALIFIED COMMUNITY BANK, A TAXPAYER MUST SATISFY THE
FOLLOWING CONDITIONS:
(I) IT IS A BANK OR TRUST COMPANY ORGANIZED UNDER OR SUBJECT TO THE
PROVISIONS OF ARTICLE THREE OF THE BANKING LAW OR A COMPARABLE PROVISION
OF THE LAWS OF ANOTHER STATE, OR A NATIONAL BANKING ASSOCIATION.
(II) THE AVERAGE VALUE DURING THE TAXABLE YEAR OF THE ASSETS OF THE
TAXPAYER, OR, IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, THE
ASSETS OF THE COMBINED REPORTING GROUP OF THE TAXPAYER UNDER SECTION
11-654.3 OF THIS SUBCHAPTER, MUST NOT EXCEED EIGHT BILLION DOLLARS.
(2-A) TO BE A SMALL THRIFT INSTITUTION, A TAXPAYER MUST SATISFY THE
FOLLOWING CONDITIONS:
(I) IT IS A SAVINGS BANK, A SAVINGS AND LOAN ASSOCIATION, OR OTHER
SAVINGS INSTITUTION CHARTERED AND SUPERVISED AS SUCH UNDER FEDERAL OR
STATE LAW.
(II) THE AVERAGE VALUE DURING THE TAXABLE YEAR OF THE ASSETS OF THE
TAXPAYER, OR, IF THE TAXPAYER IS INCLUDED IN A COMBINED REPORT, THE
ASSETS OF THE COMBINED REPORTING GROUP OF THE TAXPAYER UNDER SECTION
11-654.3 OF THIS SUBCHAPTER, MUST NOT EXCEED EIGHT BILLION DOLLARS.
(3)(I) THE SUBTRACTION MODIFICATION SHALL BE COMPUTED AS FOLLOWS:
A. 6009 115
(A) MULTIPLY THE TAXPAYER'S NET INTEREST INCOME FROM LOANS DURING THE
TAXABLE YEAR BY A FRACTION, THE NUMERATOR OF WHICH IS THE GROSS INTEREST
INCOME DURING THE TAXABLE YEAR FROM QUALIFYING LOANS AND THE DENOMINATOR
OF WHICH IS THE GROSS INTEREST INCOME DURING THE TAXABLE YEAR FROM ALL
LOANS.
(B) MULTIPLY THE AMOUNT DETERMINED IN SUBCLAUSE (A) OF THIS CLAUSE BY
FIFTY PERCENT. THIS PRODUCT IS THE AMOUNT OF THE DEDUCTION ALLOWED UNDER
THIS PARAGRAPH.
(II)(A) NET INTEREST INCOME FROM LOANS SHALL MEAN GROSS INTEREST
INCOME FROM LOANS LESS GROSS INTEREST EXPENSE FROM LOANS. GROSS INTEREST
EXPENSE FROM LOANS IS DETERMINED BY MULTIPLYING GROSS INTEREST EXPENSE
BY A FRACTION, THE NUMERATOR OF WHICH IS THE AVERAGE TOTAL VALUE OF
LOANS OWNED BY THE THRIFT INSTITUTION OR COMMUNITY BANK DURING THE TAXA-
BLE YEAR AND THE DENOMINATOR OF WHICH IS THE AVERAGE TOTAL ASSETS OF THE
THRIFT INSTITUTION OR COMMUNITY BANK DURING THE TAXABLE YEAR.
(B) MEASUREMENT OF ASSETS. FOR PURPOSES OF THIS CLAUSE: (I) TOTAL
ASSETS ARE THOSE ASSETS THAT ARE PROPERLY REFLECTED ON A BALANCE SHEET,
COMPUTED IN THE SAME MANNER AS IS REQUIRED BY THE BANKING REGULATOR OF
THE TAXPAYERS INCLUDED IN THE COMBINED RETURN.
(II) ASSETS WILL ONLY BE INCLUDED IF THE INCOME OR EXPENSES OF WHICH
ARE PROPERLY REFLECTED (OR WOULD HAVE BEEN PROPERLY REFLECTED IF NOT
FULLY DEPRECIATED OR EXPENSED, OR DEPRECIATED OR EXPENSED TO A NOMINAL
AMOUNT) IN THE COMPUTATION OF THE TAXPAYER'S ENTIRE NET INCOME FOR THE
TAXABLE YEAR. ASSETS WILL NOT INCLUDE DEFERRED TAX ASSETS AND INTANGIBLE
ASSETS IDENTIFIED AS "GOODWILL".
(III) TANGIBLE REAL AND PERSONAL PROPERTY, SUCH AS BUILDINGS, LAND,
MACHINERY, AND EQUIPMENT, SHALL BE VALUED AT COST. LEASED ASSETS WILL BE
VALUED AT THE ANNUAL LEASE PAYMENT MULTIPLIED BY EIGHT. INTANGIBLE PROP-
ERTY, SUCH AS LOANS AND INVESTMENTS, SHALL BE VALUED AT BOOK VALUE
EXCLUSIVE OF RESERVES.
(IV) AVERAGE ASSETS ARE COMPUTED USING THE ASSETS MEASURED ON THE
FIRST DAY OF THE TAXABLE YEAR, AND ON THE LAST DAY OF EACH SUBSEQUENT
QUARTER OF THE TAXABLE YEAR OR MONTH OR DAY DURING THE TAXABLE YEAR.
(III) A QUALIFYING LOAN IS A LOAN THAT MEETS THE CONDITIONS SPECIFIED
IN SUBCLAUSE (A) OF THIS CLAUSE AND SUBCLAUSE (B) OF THIS CLAUSE.
(A) THE LOAN IS ORIGINATED BY THE QUALIFIED COMMUNITY BANK OR SMALL
THRIFT INSTITUTION OR PURCHASED BY THE QUALIFIED COMMUNITY BANK OR SMALL
THRIFT INSTITUTION IMMEDIATELY AFTER ITS ORIGINATION IN CONNECTION WITH
A COMMITMENT TO PURCHASE MADE BY THE BANK OR THRIFT INSTITUTION PRIOR TO
THE LOAN'S ORIGINATION.
(B) THE LOAN IS A SMALL BUSINESS LOAN OR A RESIDENTIAL MORTGAGE LOAN,
THE PRINCIPAL AMOUNT OF WHICH LOAN IS FIVE MILLION DOLLARS OR LESS, AND
EITHER THE BORROWER IS LOCATED IN THIS CITY AS DETERMINED UNDER SECTION
11-654.2 OF THIS SUBCHAPTER AND THE LOAN IS NOT SECURED BY REAL PROPER-
TY, OR THE LOAN IS SECURED BY REAL PROPERTY LOCATED IN THE CITY.
(C) A LOAN THAT MEETS THE DEFINITION OF A QUALIFYING LOAN IN A PRIOR
TAXABLE YEAR (INCLUDING YEARS PRIOR TO THE EFFECTIVE DATE OF THIS PARA-
GRAPH) REMAINS A QUALIFYING LOAN IN TAXABLE YEARS DURING AND AFTER WHICH
SUCH LOAN IS ACQUIRED BY ANOTHER CORPORATION IN THE TAXPAYER'S COMBINED
REPORTING GROUP UNDER SECTION 11-654.3 OF THIS SUBCHAPTER.
(R) A SMALL THRIFT INSTITUTION OR A QUALIFIED COMMUNITY BANK, AS
DEFINED IN PARAGRAPH (Q) OF THIS SUBDIVISION, THAT MAINTAINED A CAPTIVE
REIT ON APRIL FIRST, TWO THOUSAND FOURTEEN SHALL UTILIZE A REIT
SUBTRACTION EQUAL TO ONE HUNDRED SIXTY PERCENT OF THE DIVIDENDS PAID
DEDUCTIONS ALLOWED TO THAT CAPTIVE REIT FOR THE TAXABLE YEAR FOR FEDERAL
INCOME TAX PURPOSES AND SHALL NOT BE ALLOWED TO UTILIZE THE SUBTRACTION
A. 6009 116
MODIFICATION FOR COMMUNITY BANKS AND SMALL THRIFTS UNDER PARAGRAPH (Q)
OF THIS SUBDIVISION OR THE SUBTRACTION MODIFICATION FOR QUALIFIED RESI-
DENTIAL LOAN PORTFOLIOS UNDER PARAGRAPH (S) OF THIS SUBDIVISION IN ANY
TAX YEAR IN WHICH SUCH THRIFT INSTITUTION OR COMMUNITY BANK MAINTAINS
THAT CAPTIVE REIT.
(S) SUBTRACTION MODIFICATION FOR QUALIFIED RESIDENTIAL LOAN PORTFO-
LIOS. (1)(I) A TAXPAYER THAT IS EITHER A THRIFT INSTITUTION AS DEFINED
IN SUBPARAGRAPH THREE OF THIS PARAGRAPH OR A QUALIFIED COMMUNITY BANK AS
DEFINED IN SUBPARAGRAPH TWO OF PARAGRAPH (Q) OF THIS SUBDIVISION AND
MAINTAINS A QUALIFIED RESIDENTIAL LOAN PORTFOLIO AS DEFINED IN SUBPARA-
GRAPH TWO OF THIS PARAGRAPH SHALL BE ALLOWED AS A DEDUCTION IN COMPUTING
ENTIRE NET INCOME THE AMOUNT, IF ANY, BY WHICH (A) THIRTY-TWO PERCENT OF
ITS ENTIRE NET INCOME DETERMINED WITHOUT REGARD TO THIS PARAGRAPH
EXCEEDS (B) THE AMOUNTS DEDUCTED BY THE TAXPAYER PURSUANT TO SECTIONS
166 AND 585 OF THE INTERNAL REVENUE CODE LESS ANY AMOUNTS INCLUDED IN
FEDERAL TAXABLE INCOME AS A RESULT OF A RECOVERY OF A LOAN.
(II)(A) IF THE TAXPAYER IS IN A COMBINED REPORT UNDER SECTION 11-654.3
OF THIS SUBCHAPTER, THIS DEDUCTION WILL BE COMPUTED ON A COMBINED BASIS.
IN THAT INSTANCE, THE ENTIRE NET INCOME OF THE COMBINED REPORTING GROUP
FOR PURPOSES OF THIS PARAGRAPH SHALL BE MULTIPLIED BY A FRACTION, THE
NUMERATOR OF WHICH IS THE AVERAGE TOTAL ASSETS OF ALL THE THRIFT INSTI-
TUTIONS AND QUALIFIED COMMUNITY BANKS INCLUDED IN THE COMBINED REPORT
AND THE DENOMINATOR OF WHICH IS THE AVERAGE TOTAL ASSETS OF ALL THE
CORPORATIONS INCLUDED IN THE COMBINED REPORT.
(B) MEASUREMENT OF ASSETS. (I) TOTAL ASSETS ARE THOSE ASSETS THAT ARE
PROPERLY REFLECTED ON A BALANCE SHEET, COMPUTED IN THE SAME MANNER AS IS
REQUIRED BY THE BANKING REGULATOR OF THE TAXPAYERS INCLUDED IN THE
COMBINED RETURN.
(II) ASSETS WILL ONLY BE INCLUDED IF THE INCOME OR EXPENSES OF WHICH
ARE PROPERLY REFLECTED (OR WOULD HAVE BEEN PROPERLY REFLECTED IF NOT
FULLY DEPRECIATED OR EXPENSED, OR DEPRECIATED OR EXPENSED TO A NOMINAL
AMOUNT) IN THE COMPUTATION OF THE COMBINED GROUP'S ENTIRE NET INCOME FOR
THE TAXABLE YEAR. ASSETS WILL NOT INCLUDE DEFERRED TAX ASSETS AND INTAN-
GIBLE ASSETS IDENTIFIED AS "GOODWILL".
(III) TANGIBLE REAL AND PERSONAL PROPERTY, SUCH AS BUILDINGS, LAND,
MACHINERY, AND EQUIPMENT SHALL BE VALUED AT COST. LEASED ASSETS WILL BE
VALUED AT THE ANNUAL LEASE PAYMENT MULTIPLIED BY EIGHT. INTANGIBLE PROP-
ERTY, SUCH AS LOANS AND INVESTMENTS, SHALL BE VALUED AT BOOK VALUE
EXCLUSIVE OF RESERVES.
(IV) INTERCORPORATE STOCKHOLDINGS AND BILLS, NOTES AND ACCOUNTS
RECEIVABLE, AND OTHER INTERCORPORATE INDEBTEDNESS BETWEEN THE CORPO-
RATIONS INCLUDED IN THE COMBINED REPORT SHALL BE ELIMINATED.
(V) AVERAGE ASSETS ARE COMPUTED USING THE ASSETS MEASURED ON THE FIRST
DAY OF THE TAXABLE YEAR, AND ON THE LAST DAY OF EACH SUBSEQUENT QUARTER
OF THE TAXABLE YEAR OR MONTH OR DAY DURING THE TAXABLE YEAR.
(2) QUALIFIED RESIDENTIAL LOAN PORTFOLIO. (I) A TAXPAYER MAINTAINS A
QUALIFIED RESIDENTIAL LOAN PORTFOLIO IF AT LEAST SIXTY PERCENT OF THE
AMOUNT OF THE TOTAL ASSETS AT THE CLOSE OF THE TAXABLE YEAR OF THE
THRIFT INSTITUTION OR QUALIFIED COMMUNITY BANK CONSISTS OF THE ASSETS
DESCRIBED IN SUBCLAUSES (A) THROUGH (L) OF THIS CLAUSE, WITH THE APPLI-
CATION OF THE RULE IN THE LAST UNDESIGNATED SUBCLAUSE OF THIS CLAUSE. IF
THE TAXPAYER IS A MEMBER OF A COMBINED GROUP, THE DETERMINATION OF
WHETHER THERE IS A QUALIFIED RESIDENTIAL LOAN PORTFOLIO WILL BE MADE BY
AGGREGATING THE ASSETS OF THE THRIFT INSTITUTIONS AND QUALIFIED COMMUNI-
TY BANKS THAT ARE MEMBERS OF THE COMBINED GROUP. ASSETS: (A) CASH,
WHICH INCLUDES CASH AND CASH EQUIVALENTS INCLUDING CASH ITEMS IN THE
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PROCESS OF COLLECTION, DEPOSITS WITH OTHER FINANCIAL INSTITUTIONS,
INCLUDING CORPORATE CREDIT UNIONS, BALANCES WITH FEDERAL RESERVE BANKS
AND FEDERAL HOME LOAN BANKS, FEDERAL FUNDS SOLD, AND CASH AND CASH
EQUIVALENTS ON HAND. CASH SHALL NOT INCLUDE ANY BALANCES SERVING AS
COLLATERAL FOR SECURITIES LENDING TRANSACTIONS; (B) OBLIGATIONS OF THE
UNITED STATES OR OF A STATE OR POLITICAL SUBDIVISION THEREOF, AND STOCK
OR OBLIGATIONS OF A CORPORATION WHICH IS AN INSTRUMENTALITY OR A GOVERN-
MENT SPONSORED ENTERPRISE OF THE UNITED STATES OR OF A STATE OR POLI-
TICAL SUBDIVISION THEREOF; (C) LOANS SECURED BY A DEPOSIT OR SHARE OF A
MEMBER; (D) LOANS SECURED BY AN INTEREST IN REAL PROPERTY WHICH IS (OR,
FROM THE PROCEEDS OF THE LOAN, WILL BECOME) RESIDENTIAL REAL PROPERTY OR
REAL PROPERTY USED PRIMARILY FOR CHURCH PURPOSES, LOANS MADE FOR THE
IMPROVEMENT OF RESIDENTIAL REAL PROPERTY OR REAL PROPERTY USED PRIMARILY
FOR CHURCH PURPOSES, PROVIDED THAT FOR PURPOSES OF THIS SUBCLAUSE, RESI-
DENTIAL REAL PROPERTY SHALL INCLUDE SINGLE OR MULTI-FAMILY DWELLINGS,
FACILITIES IN RESIDENTIAL DEVELOPMENTS DEDICATED TO PUBLIC USE OR PROP-
ERTY USED ON A NONPROFIT BASIS FOR RESIDENTS, AND MOBILE HOMES NOT USED
ON A TRANSIENT BASIS; (E) PROPERTY ACQUIRED THROUGH THE LIQUIDATION OF
DEFAULTED LOANS DESCRIBED IN SUBCLAUSE (D) OF THIS CLAUSE; (F) ANY REGU-
LAR OR RESIDUAL INTEREST IN A REMIC, AS SUCH TERM IS DEFINED IN SECTION
860D OF THE INTERNAL REVENUE CODE, BUT ONLY IN THE PROPORTION WHICH THE
ASSETS OF SUCH REMIC CONSIST OF PROPERTY DESCRIBED IN ANY OF THE PRECED-
ING SUBCLAUSES OF THIS CLAUSE, EXCEPT THAT IF NINETY-FIVE PERCENT OR
MORE OF THE ASSETS OF SUCH REMIC ARE ASSETS DESCRIBED IN SUBCLAUSES (A)
THROUGH (E) OF THIS CLAUSE, THE ENTIRE INTEREST IN THE REMIC SHALL QUAL-
IFY; (G) ANY MORTGAGE-BACKED SECURITY WHICH REPRESENTS OWNERSHIP OF A
FRACTIONAL UNDIVIDED INTEREST IN A TRUST, THE ASSETS OF WHICH CONSIST
PRIMARILY OF MORTGAGE LOANS, PROVIDED THAT THE REAL PROPERTY WHICH
SERVES AS SECURITY FOR THE LOANS IS (OR FROM THE PROCEEDS OF THE LOAN,
WILL BECOME) THE TYPE OF PROPERTY DESCRIBED IN SUBCLAUSE (D) OF THIS
CLAUSE AND ANY COLLATERALIZED MORTGAGE OBLIGATION, THE SECURITY FOR
WHICH CONSISTS PRIMARILY OF MORTGAGE LOANS THAT MAINTAIN AS SECURITY THE
TYPE OF PROPERTY DESCRIBED IN SUBCLAUSE (D) OF THIS CLAUSE; (H) CERTIF-
ICATES OF DEPOSIT IN, OR OBLIGATIONS OF, A CORPORATION ORGANIZED UNDER A
STATE LAW WHICH SPECIFICALLY AUTHORIZES SUCH CORPORATION TO INSURE THE
DEPOSITS OR SHARE ACCOUNTS OF MEMBER ASSOCIATIONS; (I) LOANS SECURED BY
AN INTEREST IN EDUCATIONAL, HEALTH, OR WELFARE INSTITUTIONS OR FACILI-
TIES, INCLUDING STRUCTURES DESIGNED OR USED PRIMARILY FOR RESIDENTIAL
PURPOSES FOR STUDENTS, RESIDENTS, AND PERSONS UNDERCARE, EMPLOYEES, OR
MEMBERS OF THE STAFF OF SUCH INSTITUTIONS OR FACILITIES; (J) LOANS MADE
FOR THE PAYMENT OF EXPENSES OF COLLEGE OR UNIVERSITY EDUCATION OR VOCA-
TIONAL TRAINING; (K) PROPERTY USED BY THE TAXPAYER IN SUPPORT OF BUSI-
NESS WHICH CONSISTS PRINCIPALLY OF ACQUIRING THE SAVINGS OF THE PUBLIC
AND INVESTING IN LOANS; AND (L) LOANS FOR WHICH THE TAXPAYER IS THE
CREDITOR AND WHICH ARE WHOLLY SECURED BY LOANS DESCRIBED IN SUBCLAUSE
(D) OF THIS CLAUSE.
THE VALUE OF ACCRUED INTEREST RECEIVABLE AND ANY LOSS-SHARING COMMIT-
MENT OR OTHER LOAN GUARANTY BY A GOVERNMENTAL AGENCY WILL BE CONSIDERED
PART OF THE BASIS IN THE LOANS TO WHICH THE ACCRUED INTEREST OR LOSS
PROTECTION APPLIES.
(II) AT THE ELECTION OF THE TAXPAYER, THE PERCENTAGE SPECIFIED IN
CLAUSE (I) OF THIS SUBPARAGRAPH SHALL BE APPLIED ON THE BASIS OF THE
AVERAGE ASSETS OUTSTANDING DURING THE TAXABLE YEAR, IN LIEU OF THE CLOSE
OF THE TAXABLE YEAR. THE TAXPAYER CAN ELECT TO COMPUTE AN AVERAGE USING
THE ASSETS MEASURED ON THE FIRST DAY OF THE TAXABLE YEAR AND ON THE LAST
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DAY OF EACH SUBSEQUENT QUARTER, OR MONTH OR DAY DURING THE TAXABLE YEAR.
THIS ELECTION MAY BE MADE ANNUALLY.
(III) FOR PURPOSES OF SUBCLAUSE (D) OF CLAUSE (I) OF THIS SUBPARA-
GRAPH, IF A MULTIFAMILY STRUCTURE SECURING A LOAN IS USED IN PART FOR
NONRESIDENTIAL USE PURPOSES, THE ENTIRE LOAN IS DEEMED A RESIDENTIAL
REAL PROPERTY LOAN IF THE PLANNED RESIDENTIAL USE EXCEEDS EIGHTY PERCENT
OF THE PROPERTY'S PLANNED USE (MEASURED, AT THE TAXPAYER'S ELECTION, BY
USING SQUARE FOOTAGE OR GROSS RENTAL REVENUE, AND DETERMINED AS OF THE
TIME THE LOAN IS MADE).
(IV) FOR PURPOSES OF SUBCLAUSE (D) OF CLAUSE (I) OF THIS SUBPARAGRAPH,
LOANS MADE TO FINANCE THE ACQUISITION OR DEVELOPMENT OF LAND SHALL BE
DEEMED TO BE LOANS SECURED BY AN INTEREST IN RESIDENTIAL REAL PROPERTY
IF THERE IS A REASONABLE ASSURANCE THAT THE PROPERTY WILL BECOME RESI-
DENTIAL REAL PROPERTY WITHIN A PERIOD OF THREE YEARS FROM THE DATE OF
ACQUISITION OF SUCH LAND; BUT THIS SENTENCE SHALL NOT APPLY FOR ANY
TAXABLE YEAR UNLESS, WITHIN SUCH THREE YEAR PERIOD, SUCH LAND BECOMES
RESIDENTIAL REAL PROPERTY. FOR PURPOSES OF DETERMINING WHETHER ANY
INTEREST IN A REMIC QUALIFIES UNDER SUBCLAUSE (F) OF CLAUSE (I) OF THIS
SUBPARAGRAPH, ANY REGULAR INTEREST IN ANOTHER REMIC HELD BY SUCH REMIC
SHALL BE TREATED AS A LOAN DESCRIBED IN A PRECEDING SUBCLAUSE UNDER
PRINCIPLES SIMILAR TO THE PRINCIPLE OF SUCH SUBCLAUSE (F), EXCEPT THAT
IF SUCH REMICS ARE PART OF A TIERED STRUCTURE, THEY SHALL BE TREATED AS
ONE REMIC FOR PURPOSES OF SUCH SUBCLAUSE (F).
(3) FOR PURPOSES OF THIS PARAGRAPH, A "THRIFT INSTITUTION" IS A
SAVINGS BANK, A SAVINGS AND LOAN ASSOCIATION, OR OTHER SAVINGS INSTITU-
TION CHARTERED AND SUPERVISED AS SUCH UNDER FEDERAL OR STATE LAW.
9. (A) THE TERM "CALENDAR YEAR" MEANS A PERIOD OF TWELVE CALENDAR
MONTHS (OR ANY SHORTER PERIOD BEGINNING ON THE DATE THE TAXPAYER BECOMES
SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER) ENDING ON THE
THIRTY-FIRST DAY OF DECEMBER, PROVIDED THE TAXPAYER KEEPS ITS BOOKS ON
THE BASIS OF SUCH PERIOD OR ON THE BASIS OF ANY PERIOD ENDING ON ANY DAY
OTHER THAN THE LAST DAY OF A CALENDAR MONTH, OR PROVIDED THE TAXPAYER
DOES NOT KEEP BOOKS, AND INCLUDES, IN CASE THE TAXPAYER CHANGES THE
PERIOD ON THE BASIS OF WHICH IT KEEPS ITS BOOKS FROM A FISCAL YEAR TO A
CALENDAR YEAR, THE PERIOD FROM THE CLOSE OF ITS LAST OLD FISCAL YEAR UP
TO AND INCLUDING THE FOLLOWING DECEMBER THIRTY-FIRST.
(B) THE TERM "FISCAL YEAR" MEANS A PERIOD OF TWELVE CALENDAR MONTHS
(OR ANY SHORTER PERIOD BEGINNING ON THE DATE THE TAXPAYER BECOMES
SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER) ENDING ON THE LAST DAY OF
ANY MONTH OTHER THAN DECEMBER, PROVIDED THE TAXPAYER KEEPS ITS BOOKS ON
THE BASIS OF SUCH PERIOD, AND INCLUDES, IN CASE THE TAXPAYER CHANGES THE
PERIOD ON THE BASIS OF WHICH IT KEEPS ITS BOOKS FROM A CALENDAR YEAR TO
A FISCAL YEAR OR FROM ONE FISCAL YEAR TO ANOTHER FISCAL YEAR, THE PERIOD
FROM THE CLOSE OF ITS LAST OLD CALENDAR OR FISCAL YEAR UP TO THE DATE
DESIGNATED AS THE CLOSE OF ITS NEW FISCAL YEAR.
10. THE TERM "TANGIBLE PERSONAL PROPERTY" MEANS CORPOREAL PERSONAL
PROPERTY, SUCH AS MACHINERY, TOOLS, IMPLEMENTS, GOODS, WARES AND
MERCHANDISE, AND DOES NOT MEAN MONEY, DEPOSITS IN BANKS, SHARES OF
STOCK, BONDS, NOTES, CREDITS OR EVIDENCES OF AN INTEREST PROPERTY AND
EVIDENCES OF DEBT.
11. THE TERM "INTERNAL REVENUE CODE" MEANS, UNLESS OTHERWISE SPECIF-
ICALLY STATED IN THIS SUBCHAPTER, THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED.
12. THE TERM "COMBINABLE CAPTIVE INSURANCE COMPANY" MEANS AN ENTITY
THAT IS TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION UNDER THE
INTERNAL REVENUE CODE: (A) MORE THAN FIFTY PERCENT OF THE VOTING STOCK
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OF WHICH IS OWNED OR CONTROLLED, DIRECTLY OR INDIRECTLY, BY A SINGLE
ENTITY THAT IS TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION UNDER
THE INTERNAL REVENUE CODE AND NOT EXEMPT FROM FEDERAL INCOME TAX;
(B) THAT IS LICENSED AS A CAPTIVE INSURANCE COMPANY UNDER THE LAWS OF
THIS STATE OR ANOTHER JURISDICTION;
(C) WHOSE BUSINESS INCLUDES PROVIDING, DIRECTLY AND INDIRECTLY, INSUR-
ANCE OR REINSURANCE COVERING THE RISKS OF ITS PARENT AND/OR MEMBERS OF
ITS AFFILIATED GROUP; AND
(D) FIFTY PERCENT OR LESS OF WHOSE GROSS RECEIPTS FOR THE TAXABLE YEAR
CONSIST OF PREMIUMS FROM ARRANGEMENTS THAT CONSTITUTE INSURANCE FOR
FEDERAL INCOME TAX PURPOSES.
FOR PURPOSES OF THIS SUBDIVISION, "AFFILIATED GROUP" HAS THE SAME
MEANING AS THAT TERM IS GIVEN IN SECTION FIFTEEN HUNDRED FOUR OF THE
INTERNAL REVENUE CODE, EXCEPT THAT THE TERM "COMMON PARENT CORPORATION"
IN THAT SECTION IS DEEMED TO MEAN ANY PERSON, AS DEFINED IN SECTION
SEVEN THOUSAND SEVEN HUNDRED ONE OF THE INTERNAL REVENUE CODE AND REFER-
ENCES TO "AT LEAST EIGHTY PERCENT" IN SECTION FIFTEEN HUNDRED FOUR OF
THE INTERNAL REVENUE CODE ARE TO BE READ AS "FIFTY PERCENT OR MORE;"
SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE IS TO BE READ
WITHOUT REGARD TO THE EXCLUSIONS PROVIDED FOR IN SUBSECTION (B) OF THAT
SECTION; "PREMIUMS" HAS THE SAME MEANING AS THAT TERM IS GIVEN IN PARA-
GRAPH ONE OF SUBDIVISION (C) OF SECTION FIFTEEN HUNDRED TEN OF THE TAX
LAW, EXCEPT THAT IT INCLUDES CONSIDERATION FOR ANNUITY CONTRACTS AND
EXCLUDES ANY PART OF THE CONSIDERATION FOR INSURANCE, REINSURANCE OR
ANNUITY CONTRACTS THAT DO NOT PROVIDE BONA FIDE INSURANCE, REINSURANCE
OR ANNUITY BENEFITS; AND "GROSS RECEIPTS" INCLUDES THE AMOUNTS INCLUDED
IN GROSS RECEIPTS FOR PURPOSES OF PARAGRAPH FIFTEEN OF SUBSECTION (C) OF
SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, EXCEPT THAT THOSE
AMOUNTS ALSO INCLUDE ALL PREMIUMS AS DEFINED IN THIS SUBDIVISION.
13. THE TERM "PARTNERSHIP" INCLUDES A SYNDICATE, GROUP, POOL, JOINT
VENTURE, OR OTHER UNINCORPORATED ORGANIZATION, THROUGH OR BY MEANS OF
WHICH ANY BUSINESS, FINANCIAL OPERATION, OR VENTURE IS CARRIED ON, AND
WHICH IS NOT A CORPORATION AS DEFINED BY SUBDIVISION ONE OF THIS
SECTION, OR A TRUST OR ESTATE THAT IS SEPARATE FROM ITS OWNER UNDER PART
ONE OF SUBCHAPTER J OF CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE
CODE; AND THE TERM "PARTNER" INCLUDES A MEMBER IN SUCH SYNDICATE, GROUP,
POOL, JOINT VENTURE, OR ORGANIZATION.
S 11-653 IMPOSITION OF TAX; EXEMPTIONS. 1. (A) FOR THE PRIVILEGE OF
DOING BUSINESS, OR OF EMPLOYING CAPITAL, OR OF OWNING OR LEASING PROPER-
TY IN THE CITY IN A CORPORATE OR ORGANIZED CAPACITY, OR OF MAINTAINING
AN OFFICE IN THE CITY, OR OF DERIVING RECEIPTS FROM ACTIVITY IN THE
CITY, FOR ALL OR ANY PART OF EACH OF ITS FISCAL OR CALENDAR YEARS, EVERY
DOMESTIC OR FOREIGN CORPORATION, EXCEPT CORPORATIONS SPECIFIED IN SUBDI-
VISION FOUR OF THIS SECTION, SHALL ANNUALLY PAY A TAX, UPON THE BASIS OF
ITS BUSINESS INCOME, OR UPON SUCH OTHER BASIS AS MAY BE APPLICABLE AS
HEREINAFTER PROVIDED, FOR SUCH FISCAL OR CALENDAR YEAR OR PART THEREOF,
ON A REPORT WHICH SHALL BE FILED, EXCEPT AS HEREINAFTER PROVIDED, ON OR
BEFORE THE FIFTEENTH DAY OF MARCH NEXT SUCCEEDING THE CLOSE OF EACH SUCH
YEAR, OR, IN THE CASE OF A TAXPAYER WHICH REPORTS ON THE BASIS OF A
FISCAL YEAR, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF SUCH
FISCAL YEAR, AND SHALL BE PAID AS HEREINAFTER PROVIDED.
(B) A CORPORATION IS DERIVING RECEIPTS FROM ACTIVITY IN THE CITY IF IT
HAS RECEIPTS WITHIN THE CITY OF ONE MILLION DOLLARS OR MORE IN THE TAXA-
BLE YEAR. FOR PURPOSES OF THIS SECTION, THE TERM "RECEIPTS" MEANS THE
RECEIPTS THAT ARE SUBJECT TO THE APPORTIONMENT RULES SET FORTH IN
SECTION 11-654.2 OF THIS SUBCHAPTER, AND THE TERM "RECEIPTS WITHIN THE
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CITY" MEANS THE RECEIPTS INCLUDED IN THE NUMERATOR OF THE RECEIPTS
PERCENTAGE DETERMINED UNDER SECTION 11-654.2 OF THIS SUBCHAPTER. FOR
PURPOSES OF THIS PARAGRAPH, RECEIPTS FROM PROCESSING CREDIT CARD TRANS-
ACTIONS FOR MERCHANTS INCLUDE MERCHANT DISCOUNT FEES RECEIVED BY THE
CORPORATION.
(C) A CORPORATION IS DOING BUSINESS IN THE CITY IF (1) IT HAS ISSUED
CREDIT CARDS TO ONE THOUSAND OR MORE CUSTOMERS WHO HAVE A MAILING
ADDRESS WITHIN THE CITY AS OF THE LAST DAY OF ITS TAXABLE YEAR, (2) IT
HAS MERCHANT CUSTOMER CONTRACTS WITH MERCHANTS AND THE TOTAL NUMBER OF
LOCATIONS COVERED BY THOSE CONTRACTS EQUALS ONE THOUSAND OR MORE
LOCATIONS IN THE CITY TO WHOM THE CORPORATION REMITTED PAYMENTS FOR
CREDIT CARD TRANSACTIONS DURING THE TAXABLE YEAR, OR (3) THE SUM OF THE
NUMBER OF CUSTOMERS DESCRIBED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH PLUS
THE NUMBER OF LOCATIONS COVERED BY ITS CONTRACTS DESCRIBED IN SUBPARA-
GRAPH TWO OF THIS PARAGRAPH EQUALS ONE THOUSAND OR MORE. AS USED IN THIS
SUBDIVISION, THE TERM "CREDIT CARD" INCLUDES BANK, CREDIT, TRAVEL AND
ENTERTAINMENT CARDS.
(D)(1) A CORPORATION WITH LESS THAN ONE MILLION DOLLARS BUT AT LEAST
TEN THOUSAND DOLLARS OF RECEIPTS WITHIN THE CITY IN A TAXABLE YEAR THAT
IS PART OF A UNITARY GROUP UNDER SECTION 11-654.3 OF THIS SUBCHAPTER IS
DERIVING RECEIPTS FROM ACTIVITY IN THE CITY IF THE RECEIPTS WITHIN THE
CITY OF THE MEMBERS OF THE UNITARY GROUP THAT HAVE AT LEAST TEN THOUSAND
DOLLARS OF RECEIPTS WITHIN THE CITY IN THE AGGREGATE MEET THE THRESHOLD
SET FORTH IN PARAGRAPH (B) OF THIS SUBDIVISION.
(2) A CORPORATION THAT DOES NOT MEET ANY OF THE THRESHOLDS SET FORTH
IN PARAGRAPH (C) OF THIS SUBDIVISION BUT HAS AT LEAST TEN CUSTOMERS, OR
LOCATIONS, OR CUSTOMERS AND LOCATIONS, AS DESCRIBED IN PARAGRAPH (C) OF
THIS SUBDIVISION, AND IS PART OF A UNITARY GROUP THAT MEETS THE OWNER-
SHIP TEST UNDER SECTION 11-654.3 OF THIS SUBCHAPTER IS DOING BUSINESS IN
THE CITY IF THE NUMBER OF CUSTOMERS, LOCATIONS, OR CUSTOMERS AND
LOCATIONS, WITHIN THE CITY OF THE MEMBERS OF THE UNITARY GROUP THAT HAVE
AT LEAST TEN CUSTOMERS, LOCATIONS, OR CUSTOMERS AND LOCATIONS, WITHIN
THE CITY IN THE AGGREGATE MEETS ANY OF THE THRESHOLDS SET FORTH IN PARA-
GRAPH (C) OF THIS SUBDIVISION.
(E) AT THE END OF EACH YEAR, THE COMMISSIONER OF FINANCE SHALL REVIEW
THE CUMULATIVE PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX. THE
COMMISSIONER OF FINANCE SHALL ADJUST THE RECEIPT THRESHOLDS SET FORTH IN
THIS SUBDIVISION IF THE CONSUMER PRICE INDEX HAS CHANGED BY TEN PERCENT
OR MORE SINCE JANUARY FIRST, TWO THOUSAND FIFTEEN, OR SINCE THE DATE
THAT THE THRESHOLDS WERE LAST ADJUSTED UNDER THIS SUBDIVISION. THE
THRESHOLDS SHALL BE ADJUSTED TO REFLECT THAT CUMULATIVE PERCENTAGE
CHANGE IN THE CONSUMER PRICE INDEX. THE ADJUSTED THRESHOLDS SHALL BE
ROUNDED TO THE NEAREST ONE THOUSAND DOLLARS. AS USED IN THIS PARAGRAPH,
"CONSUMER PRICE INDEX" MEANS THE CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS (CPI-U) AVAILABLE FROM THE BUREAU OF LABOR STATISTICS OF THE
UNITED STATES DEPARTMENT OF LABOR. ANY ADJUSTMENT SHALL APPLY TO TAX
PERIODS THAT BEGIN AFTER THE ADJUSTMENT IS MADE.
(F) IF A PARTNERSHIP IS DOING BUSINESS, EMPLOYING CAPITAL, OWNING OR
LEASING PROPERTY IN THE CITY, MAINTAINING AN OFFICE IN THE CITY, OR
DERIVING RECEIPTS FROM ACTIVITY IN THE CITY, ANY CORPORATION THAT IS A
PARTNER IN SUCH PARTNERSHIP SHALL BE SUBJECT TO TAX UNDER THIS SUBCHAP-
TER AS DESCRIBED IN THE REGULATIONS OF THE COMMISSIONER OF FINANCE.
2. A CORPORATION SHALL NOT BE DEEMED TO BE DOING BUSINESS, EMPLOYING
CAPITAL, OWNING OR LEASING PROPERTY, OR MAINTAINING AN OFFICE IN THE
CITY, OR DERIVING RECEIPTS FROM ACTIVITY IN THE CITY, FOR THE PURPOSES
OF THIS SUBCHAPTER, BY REASON OF
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(A) THE MAINTENANCE OF CASH BALANCES WITH BANKS OR TRUST COMPANIES IN
THE CITY, OR
(B) THE OWNERSHIP OF SHARES OF STOCK OR SECURITIES KEPT IN THE CITY,
IF KEPT IN A SAFE DEPOSIT BOX, SAFE, VAULT OR OTHER RECEPTACLE RENTED
FOR THE PURPOSE, OR IF PLEDGED AS COLLATERAL SECURITY, OR IF DEPOSITED
WITH ONE OR MORE BANKS OR TRUST COMPANIES, OR BROKERS WHO ARE MEMBERS OF
A RECOGNIZED SECURITY EXCHANGE, IN SAFEKEEPING OR CUSTODY ACCOUNTS, OR
(C) THE TAKING OF ANY ACTION BY ANY SUCH BANK OR TRUST COMPANY OR
BROKER, WHICH IS INCIDENTAL TO THE RENDERING OF SAFEKEEPING OR CUSTODIAN
SERVICE TO SUCH CORPORATION, OR
(D) THE MAINTENANCE OF AN OFFICE IN THE CITY BY ONE OR MORE OFFICERS
OR DIRECTORS OF THE CORPORATION WHO ARE NOT EMPLOYEES OF THE CORPORATION
IF THE CORPORATION OTHERWISE IS NOT DOING BUSINESS IN THE CITY, AND DOES
NOT EMPLOY CAPITAL OR OWN OR LEASE PROPERTY IN THE CITY, OR
(E) THE KEEPING OF BOOKS OR RECORDS OF A CORPORATION IN THE CITY IF
SUCH BOOKS OR RECORDS ARE NOT KEPT BY EMPLOYEES OF SUCH CORPORATION AND
SUCH CORPORATION DOES NOT OTHERWISE DO BUSINESS, EMPLOY CAPITAL, OWN OR
LEASE PROPERTY OR MAINTAIN AN OFFICE IN THE CITY, OR
(F) ANY COMBINATION OF THE FOREGOING ACTIVITIES.
2-A. AN ALIEN CORPORATION SHALL NOT BE DEEMED TO BE DOING BUSINESS,
EMPLOYING CAPITAL, OWNING OR LEASING PROPERTY, OR MAINTAINING AN OFFICE
IN THE CITY, FOR THE PURPOSES OF THIS SUBCHAPTER, IF ITS ACTIVITIES IN
THE CITY ARE LIMITED SOLELY TO
(A) INVESTING OR TRADING IN STOCKS AND SECURITIES FOR ITS OWN ACCOUNT
WITHIN THE MEANING OF CLAUSE (II) OF SUBPARAGRAPH (A) OF PARAGRAPH (2)
OF SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-FOUR OF THE INTERNAL
REVENUE CODE, OR
(B) INVESTING OR TRADING IN COMMODITIES FOR ITS OWN ACCOUNT WITHIN THE
MEANING OF CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH (2) OF
SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-FOUR OF THE INTERNAL
REVENUE CODE, OR
(C) ANY COMBINATION OF ACTIVITIES DESCRIBED IN PARAGRAPHS (A) AND (B)
OF THIS SUBDIVISION.
AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF THE INTERNAL REVENUE
CODE IS NOT TREATED AS A "DOMESTIC CORPORATION" AS DEFINED IN SECTION
SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE AND HAS NO EFFECTIVELY
CONNECTED INCOME FOR THE TAXABLE YEAR PURSUANT TO CLAUSE THREE OF THE
OPENING PARAGRAPH OF SUBDIVISION EIGHT OF SECTION 11-652 OF THIS
SUBCHAPTER SHALL NOT BE SUBJECT TO TAX UNDER THIS SUBCHAPTER FOR THAT
TAXABLE YEAR. FOR PURPOSES OF THIS SUBCHAPTER, AN ALIEN CORPORATION IS A
CORPORATION ORGANIZED UNDER THE LAWS OF A COUNTRY, OR ANY POLITICAL
SUBDIVISION THEREOF, OTHER THAN THE UNITED STATES, OR ORGANIZED UNDER
THE LAWS OF A POSSESSION, TERRITORY OR COMMONWEALTH OF THE UNITED
STATES.
3. ANY RECEIVER, REFEREE, TRUSTEE, ASSIGNEE OR OTHER FIDUCIARY, OR ANY
OFFICER OR AGENT APPOINTED BY ANY COURT, WHO CONDUCTS THE BUSINESS OF
ANY CORPORATION, SHALL BE SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER
IN THE SAME MANNER AND TO THE SAME EXTENT AS IF THE BUSINESS WERE
CONDUCTED BY THE AGENTS OR OFFICERS OF SUCH CORPORATION. A DISSOLVED
CORPORATION WHICH CONTINUES TO CONDUCT BUSINESS SHALL ALSO BE SUBJECT TO
THE TAX IMPOSED BY THIS SUBCHAPTER.
4. (A) CORPORATIONS SUBJECT TO TAX UNDER CHAPTER ELEVEN OF THIS TITLE,
ANY TRUST COMPANY ORGANIZED UNDER A LAW OF THIS STATE ALL OF THE STOCK
OF WHICH IS OWNED BY NOT LESS THAN TWENTY SAVINGS BANKS ORGANIZED UNDER
A LAW OF THIS STATE, HOUSING COMPANIES ORGANIZED AND OPERATING PURSUANT
TO THE PROVISIONS OF ARTICLE TWO OF THE PRIVATE HOUSING FINANCE LAW,
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HOUSING DEVELOPMENT FUND COMPANIES ORGANIZED PURSUANT TO THE PROVISIONS
OF ARTICLE ELEVEN OF THE PRIVATE HOUSING FINANCE LAW, CORPORATIONS
DESCRIBED IN SECTION THREE OF THE TAX LAW, A CORPORATION PRINCIPALLY
ENGAGED IN THE OPERATION OF MARINE VESSELS WHOSE ACTIVITIES IN THE CITY
ARE LIMITED EXCLUSIVELY TO THE USE OF PROPERTY IN INTERSTATE OR FOREIGN
COMMERCE, PROVIDED, HOWEVER, SUCH A CORPORATION WILL NOT BE SUBJECT TO
TAX UNDER THIS SUBCHAPTER SOLELY BECAUSE IT MAINTAINS AN OFFICE IN THE
CITY, OR EMPLOYS CAPITAL IN THE CITY, IN CONNECTION WITH SUCH USE OF
PROPERTY, A CORPORATION PRINCIPALLY ENGAGED IN THE CONDUCT OF A FERRY
BUSINESS AND OPERATING BETWEEN ANY OF THE BOROUGHS OF THE CITY UNDER A
LEASE GRANTED BY THE CITY AND A CORPORATION PRINCIPALLY ENGAGED IN THE
CONDUCT OF AN AVIATION, STEAMBOAT, FERRY OR NAVIGATION BUSINESS, OR TWO
OR MORE OF SUCH BUSINESSES, ALL OF THE CAPITAL STOCK OF WHICH IS OWNED
BY A MUNICIPAL CORPORATION OF THIS STATE, SHALL NOT BE SUBJECT TO TAX
UNDER THIS SUBCHAPTER; PROVIDED, HOWEVER, THAT ANY CORPORATION, OTHER
THAN (1) A UTILITY CORPORATION SUBJECT TO THE SUPERVISION OF THE STATE
DEPARTMENT OF PUBLIC SERVICE, AND (2) FOR TAXABLE YEARS BEGINNING ON OR
AFTER AUGUST FIRST, TWO THOUSAND TWO, A UTILITY AS DEFINED IN SUBDIVI-
SION SIX OF SECTION 11-1101 OF THIS TITLE, WHICH IS SUBJECT TO TAX UNDER
CHAPTER ELEVEN OF THIS TITLE AS A VENDOR OF UTILITY SERVICES SHALL BE
SUBJECT TO TAX UNDER THIS SUBCHAPTER, BUT IN COMPUTING THE TAX IMPOSED
BY THIS SECTION PURSUANT TO THE PROVISIONS OF CLAUSE (I) OF SUBPARAGRAPH
ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION 11-654 OF THIS
SUBCHAPTER, BUSINESS INCOME ALLOCATED TO THE CITY PURSUANT TO PARAGRAPH
(A) OF SUBDIVISION THREE OF SUCH SECTION SHALL BE REDUCED BY THE
PERCENTAGE WHICH SUCH CORPORATION'S GROSS OPERATING INCOME SUBJECT TO
TAX UNDER CHAPTER ELEVEN OF THIS TITLE IS OF ITS GROSS OPERATING INCOME.
(B) THE TERM "GROSS OPERATING INCOME", WHEN USED IN PARAGRAPH (A) OF
THIS SUBDIVISION, MEANS RECEIPTS RECEIVED IN OR BY REASON OF ANY TRANS-
ACTION HAD AND CONSUMMATED IN THE CITY, INCLUDING CASH, CREDITS AND
PROPERTY OF ANY KIND OR NATURE (WHETHER OR NOT SUCH TRANSACTION IS MADE
FOR PROFIT), WITHOUT ANY DEDUCTION THEREFROM ON ACCOUNT OF THE COST OF
THE PROPERTY SOLD, THE COST OF MATERIALS USED, LABOR OR OTHER SERVICES,
DELIVERY COSTS OR ANY OTHER COSTS WHATSOEVER, INTEREST OR DISCOUNT PAID
OR ANY OTHER EXPENSES WHATSOEVER.
(C) IF IT SHALL APPEAR TO THE COMMISSIONER OF FINANCE THAT THE APPLI-
CATION OF THE PROVISO OF PARAGRAPH (A) OF THIS SUBDIVISION, DOES NOT
FAIRLY AND EQUITABLY REFLECT THE PORTION OF THE TAXPAYER'S BUSINESS
INCOME ALLOCABLE TO THE CITY WHICH IS ATTRIBUTABLE TO ITS CITY ACTIV-
ITIES WHICH ARE NOT TAXABLE UNDER SUBCHAPTER TWO OF CHAPTER ELEVEN OF
THIS TITLE, THE COMMISSIONER OF FINANCE MAY PRESCRIBE OTHER MEANS OR
METHODS OF DETERMINING SUCH PORTION, INCLUDING THE USE OF THE BOOKS AND
RECORDS OF THE TAXPAYER, IF THE COMMISSIONER OF FINANCE FINDS THAT SUCH
MEANS OR METHODS USED IN KEEPING THEM FAIRLY AND EQUITABLY REFLECT SUCH
PORTION.
5. INTENTIONALLY OMITTED.
6. INTENTIONALLY OMITTED.
7. FOR ANY TAXABLE YEAR OF A REAL ESTATE INVESTMENT TRUST, AS DEFINED
IN SECTION EIGHT HUNDRED FIFTY-SIX OF THE INTERNAL REVENUE CODE, IN
WHICH SUCH TRUST IS SUBJECT TO FEDERAL INCOME TAXATION UNDER SECTION
EIGHT HUNDRED FIFTY-SEVEN OF SUCH CODE, SUCH TRUST SHALL BE SUBJECT TO A
TAX COMPUTED UNDER EITHER CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH
(E) SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER, OR CLAUSE
(IV), WHICHEVER IS GREATER. IN THE CASE OF SUCH A REAL ESTATE INVESTMENT
TRUST, INCLUDING A CAPTIVE REIT AS DEFINED IN SECTION 11-601 OF THIS
CHAPTER, THE TERM "ENTIRE NET INCOME" MEANS "REAL ESTATE INVESTMENT
A. 6009 123
TRUST TAXABLE INCOME" AS DEFINED IN PARAGRAPH TWO OF SUBDIVISION (B) OF
SECTION EIGHT HUNDRED FIFTY-SEVEN (AS MODIFIED BY SECTION EIGHT HUNDRED
FIFTY-EIGHT) OF THE INTERNAL REVENUE CODE PLUS THE AMOUNT TAXABLE UNDER
PARAGRAPH THREE OF SUBDIVISION (B) OF SECTION EIGHT HUNDRED FIFTY-SEVEN
OF SUCH CODE, SUBJECT TO THE MODIFICATIONS REQUIRED BY SUBDIVISION EIGHT
OF SECTION 11-652 OF THIS SUBCHAPTER INCLUDING THE MODIFICATIONS
REQUIRED BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF SECTION
11-654 OF THIS SUBCHAPTER.
8. FOR ANY TAXABLE YEAR OF A REGULATED INVESTMENT COMPANY, AS DEFINED
IN SECTION EIGHT HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE, IN
WHICH SUCH COMPANY IS SUBJECT TO FEDERAL INCOME TAXATION UNDER SECTION
EIGHT HUNDRED FIFTY-TWO OF SUCH CODE, SUCH COMPANY SHALL BE SUBJECT TO A
TAX COMPUTED UNDER EITHER CLAUSE ONE OR FOUR OF SUBPARAGRAPH (A) OF
PARAGRAPH E OF SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER,
WHICHEVER IS GREATER. IN THE CASE OF SUCH A REGULATED INVESTMENT COMPA-
NY, INCLUDING A CAPTIVE RIC AS DEFINED IN SECTION 11-601 OF THIS CHAP-
TER, THE TERM "ENTIRE NET INCOME" USED IN SUBDIVISION ONE OF THIS
SECTION MEANS "INVESTMENT COMPANY TAXABLE INCOME" AS DEFINED IN PARA-
GRAPH TWO OF SUBDIVISION (B) OF SECTION EIGHT HUNDRED FIFTY-TWO, AS
MODIFIED BY SECTION EIGHT HUNDRED FIFTY-FIVE, OF THE INTERNAL REVENUE
CODE PLUS THE AMOUNT TAXABLE UNDER PARAGRAPH THREE OF SUBDIVISION (B) OF
SECTION EIGHT HUNDRED FIFTY-TWO OF SUCH CODE SUBJECT TO THE MODIFICA-
TIONS REQUIRED BY SUBDIVISION EIGHT OF SECTION 11-652 OF THIS SUBCHAP-
TER, INCLUDING THE MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E) OF
SUBDIVISION THREE OF SECTION 11-654 OF THIS SUBCHAPTER.
9. AN ORGANIZATION DESCRIBED IN PARAGRAPH TWO OR TWENTY-FIVE OF SUBDI-
VISION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE
SHALL BE EXEMPT FROM ALL TAXES IMPOSED BY THIS SUBCHAPTER.
S 11-654 COMPUTATION OF TAX. 1. (A) INTENTIONALLY OMITTED.
(B) INTENTIONALLY OMITTED.
(C) INTENTIONALLY OMITTED.
(D) INTENTIONALLY OMITTED.
(E) THE TAX IMPOSED BY SUBDIVISION ONE OF SECTION 11-653 OF THIS
SUBCHAPTER SHALL BE, IN THE CASE OF EACH TAXPAYER:
(1) WHICHEVER OF THE FOLLOWING AMOUNTS IS THE GREATEST:
(I) AN AMOUNT COMPUTED AT THE RATE OF EIGHT AND EIGHTY-FIVE ONE-HUN-
DREDTHS PER CENTUM, OF ITS BUSINESS INCOME OR THE PORTION OF SUCH BUSI-
NESS INCOME ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED, SUBJECT
TO THE APPLICATION OF PARAGRAPHS (J) AND (K) OF THIS SUBDIVISION AND ANY
MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF
THIS SECTION,
(II) AN AMOUNT COMPUTED BY MULTIPLYING ITS TOTAL BUSINESS CAPITAL, OR
THE PORTION THEREOF ALLOCATED WITHIN THE CITY, AS HEREINAFTER PROVIDED,
BY FIFTEEN ONE-HUNDREDTHS PER CENTUM AND SUBTRACTING TEN THOUSAND
DOLLARS FROM THE TOTAL, EXCEPT THAT IN THE CASE OF A COOPERATIVE HOUSING
CORPORATION AS DEFINED IN THE INTERNAL REVENUE CODE, SUCH AMOUNT SHALL
BE COMPUTED BY MULTIPLYING ITS TOTAL BUSINESS CAPITAL, OR THE PORTION
THEREOF ALLOCATED WITHIN THE CITY, AS HEREINAFTER PROVIDED, BY FOUR
ONE-HUNDREDTHS PER CENTUM AND SUBTRACTING TEN THOUSAND DOLLARS FROM THE
TOTAL, PROVIDED THAT IF SUCH AMOUNT IS LESS THAN ZERO IT SHALL BE DEEMED
TO BE ZERO, AND PROVIDED FURTHER THAT IN NO EVENT SHALL THE AMOUNT OF
TAX COMPUTED ON THE TAXPAYER'S BUSINESS CAPITAL, OR THE PORTION OF THER-
EOF ALLOCATED WITHIN THE CITY, EXCEED TEN MILLION DOLLARS, OR
(III) INTENTIONALLY OMITTED
(IV) IF NEW YORK CITY RECEIPTS ARE: FIXED DOLLAR MINIMUM
A. 6009 124
TAX IS:
NOT MORE THAN $100,000 $25
MORE THAN $100,000 BUT NOT OVER $250,000 $75
MORE THAN $250,000 BUT NOT OVER $500,000 $175
MORE THAN $500,000 BUT NOT OVER $1,000,000 $500
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,500
MORE THAN $5,000,000 BUT NOT OVER $25,000,000 $3,500
MORE THAN $25,000,000 BUT NOT OVER $50,000,000 $5,000
MORE THAN $50,000,000 BUT NOT OVER $100,000,000 $10,000
MORE THAN $100,000,000 BUT NOT OVER $250,000,000 $20,000
MORE THAN $250,000,000 BUT NOT OVER $500,000,000 $50,000
MORE THAN $500,000,000 BUT NOT OVER $1,000,000,000 $100,000
OVER $1,000,000,000 $200,000
FOR PURPOSES OF THIS CLAUSE, NEW YORK CITY RECEIPTS ARE THE RECEIPTS
COMPUTED IN ACCORDANCE WITH SECTION 11-654.2 OF THIS SUBCHAPTER FOR THE
TAXABLE YEAR. IF THE TAXABLE YEAR IS LESS THAN TWELVE MONTHS, THE AMOUNT
PRESCRIBED BY THIS CLAUSE SHALL BE REDUCED BY TWENTY-FIVE PERCENT IF THE
PERIOD FOR WHICH THE TAXPAYER IS SUBJECT TO TAX IS MORE THAN SIX MONTHS
BUT NOT MORE THAN NINE MONTHS AND BY FIFTY PERCENT IF THE PERIOD FOR
WHICH THE TAXPAYER IS SUBJECT TO TAX IS NOT MORE THAN SIX MONTHS. IF THE
TAXABLE YEAR IS LESS THAN TWELVE MONTHS, THE AMOUNT OF NEW YORK CITY
RECEIPTS FOR PURPOSES OF THIS CLAUSE IS DETERMINED BY DIVIDING THE
AMOUNT OF THE RECEIPTS FOR THE TAXABLE YEAR BY THE NUMBER OF MONTHS IN
THE TAXABLE YEAR AND MULTIPLYING THE RESULT BY TWELVE.
(F) INTENTIONALLY OMITTED.
(G) INTENTIONALLY OMITTED.
(H) INTENTIONALLY OMITTED.
(I) INTENTIONALLY OMITTED.
(J) (1) IF THE AMOUNT OF BUSINESS INCOME COMPUTED WITHOUT TAKING INTO
ACCOUNT THE PRIOR NET OPERATION LOSS CONVERSION SUBTRACTION PROVIDED FOR
IN SUBDIVISION TWO OF SECTION 11-654.1 OF THIS SUBCHAPTER ALLOCATED
WITHIN THE CITY AS HEREINAFTER PROVIDED IS LESS THAN ONE MILLION
DOLLARS, THE AMOUNT COMPUTED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARA-
GRAPH (E) OF THIS SUBDIVISION SHALL BE AT THE RATE OF SIX AND
FIVE-TENTHS PER CENTUM OF THE AMOUNT OF BUSINESS INCOME ALLOCATED WITHIN
THE CITY AS HEREINAFTER PROVIDED, SUBJECT TO ANY MODIFICATION REQUIRED
BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF THIS SECTION;
(2) SUBJECT TO SUBPARAGRAPH THREE OF THIS PARAGRAPH, IF THE AMOUNT OF
BUSINESS INCOME COMPUTED WITHOUT TAKING INTO ACCOUNT THE PRIOR NET OPER-
ATING LOSS CONVERSION SUBTRACTION PROVIDED FOR IN SUBDIVISION TWO OF
SECTION 11-654.1 OF THIS SUBCHAPTER ALLOCATED WITHIN THE CITY AS HEREIN-
AFTER PROVIDED IS ONE MILLION DOLLARS OR GREATER BUT LESS THAN ONE
MILLION DOLLARS BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS,
THE AMOUNT COMPUTED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E)
OF THIS SUBDIVISION SHALL BE AT THE RATE OF (I) SIX AND FIVE-TENTHS PER
CENTUM, PLUS (II) TWO AND THIRTY-FIVE ONE-HUNDREDTHS PER CENTUM MULTI-
PLIED BY A FRACTION THE NUMERATOR OF WHICH IS ALLOCATED BUSINESS INCOME
COMPUTED WITHOUT TAKING INTO ACCOUNT THE PRIOR NET OPERATING LOSS
CONVERSION SUBTRACTION PROVIDED FOR IN SUBDIVISION TWO OF SECTION
11-654.1 OF THIS SUBCHAPTER LESS ONE MILLION DOLLARS AND THE DENOMINATOR
OF WHICH IS FIVE HUNDRED THOUSAND DOLLARS, OF THE AMOUNT OF BUSINESS
INCOME ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED, SUBJECT TO ANY
MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF
THIS SECTION;
(3) PROVIDED, HOWEVER, NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF
THE AMOUNT OF UNALLOCATED BUSINESS INCOME COMPUTED WITHOUT TAKING INTO
A. 6009 125
ACCOUNT THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION PROVIDED FOR
IN SUBDIVISION TWO OF SECTION 11-654.1 OF THIS SUBCHAPTER IS TWO MILLION
DOLLARS OR GREATER BUT LESS THAN THREE MILLION DOLLARS, THE RATE OF TAX
PROVIDED FOR IN THIS PARAGRAPH SHALL NOT BE LESS THAN (I) SIX AND FIVE-
TENTHS PER CENTUM, PLUS (II) TWO AND THIRTY-FIVE ONE-HUNDREDTHS PER
CENTUM MULTIPLIED BY A FRACTION THE NUMERATOR OF WHICH IS UNALLOCATED
BUSINESS INCOME COMPUTED WITHOUT TAKING INTO ACCOUNT THE PRIOR NET OPER-
ATING LOSS CONVERSION SUBTRACTION PROVIDED FOR IN SUBDIVISION TWO OF
SECTION 11-654.1 OF THIS SUBCHAPTER LESS TWO MILLION DOLLARS AND THE
DENOMINATOR OF WHICH IS ONE MILLION DOLLARS, AND PROVIDED, HOWEVER,
NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF THE AMOUNT OF UNALLOCATED
BUSINESS INCOME COMPUTED WITHOUT TAKING INTO ACCOUNT THE PRIOR NET OPER-
ATING LOSS CONVERSION SUBTRACTION PROVIDED FOR IN SUBDIVISION TWO OF
SECTION 11-654.1 OF THIS SUBCHAPTER IS THREE MILLION DOLLARS OR GREATER,
THE RATE OF TAX SHALL BE EIGHT AND EIGHTY-FIVE ONE HUNDREDTHS PERCENTUM.
(K)(1) FOR QUALIFIED NEW YORK CITY MANUFACTURING CORPORATIONS AS
DEFINED IN SUBPARAGRAPH FOUR OF THIS PARAGRAPH, IF THE AMOUNT OF BUSI-
NESS INCOME COMPUTED WITHOUT TAKING INTO ACCOUNT THE PRIOR NET OPERATING
LOSS CONVERSION SUBTRACTION PROVIDED FOR IN SUBDIVISION TWO OF SECTION
11-654.1 OF THIS SUBCHAPTER ALLOCATED WITHIN THE CITY AS HEREINAFTER
PROVIDED IS LESS THAN TEN MILLION DOLLARS, THE AMOUNT COMPUTED IN CLAUSE
(I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF THIS SUBDIVISION SHALL BE AT
THE RATE OF FOUR AND FOUR HUNDRED TWENTY-FIVE ONE THOUSANDTHS PER
CENTUM, OF ITS BUSINESS INCOME ALLOCATED WITHIN THE CITY AS HEREINAFTER
PROVIDED, SUBJECT TO ANY MODIFICATION REQUIRED BY PARAGRAPHS (D) AND (E)
OF SUBDIVISION THREE OF THIS SECTION;
(2) SUBJECT TO SUBPARAGRAPH THREE OF THIS PARAGRAPH FOR QUALIFIED NEW
YORK CITY MANUFACTURING CORPORATIONS AS DEFINED IN SUBPARAGRAPH FOUR OF
THIS PARAGRAPH, IF THE AMOUNT OF BUSINESS INCOME COMPUTED WITHOUT TAKING
INTO ACCOUNT THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION
PROVIDED FOR IN SUBDIVISION TWO OF SECTION 11-654.1 OF THIS SUBCHAPTER
ALLOCATED WITHIN THE CITY AS HEREINAFTER PROVIDED IS TEN MILLION DOLLARS
OR GREATER BUT LESS THAN TWENTY MILLION DOLLARS, THE AMOUNT COMPUTED IN
CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF THIS SUBDIVISION
SHALL BE AT THE RATE OF (I) FOUR AND FOUR HUNDRED TWENTY-FIVE ONE-THOUS-
ANDTHS PER CENTUM, PLUS (II) FOUR AND FOUR HUNDRED TWENTY-FIVE
ONE-THOUSANDTHS PER CENTUM MULTIPLIED BY A FRACTION THE NUMERATOR OF
WHICH IS ALLOCATED BUSINESS INCOME COMPUTED WITHOUT TAKING INTO ACCOUNT
THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION PROVIDED FOR IN
SUBDIVISION TWO OF SECTION 11-654.1 OF THIS SUBCHAPTER LESS TEN MILLION
DOLLARS AND THE DENOMINATOR OF WHICH IS TEN MILLION DOLLARS, OF ITS
BUSINESS INCOME OR THE PORTION OF SUCH BUSINESS INCOME ALLOCATED WITHIN
THE CITY AS HEREINAFTER PROVIDED, SUBJECT TO ANY MODIFICATION REQUIRED
BY PARAGRAPHS (D) AND (E) OF SUBDIVISION THREE OF THIS SECTION;
(3) NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF THE AMOUNT OF UNALLO-
CATED BUSINESS INCOME COMPUTED WITHOUT TAKING INTO ACCOUNT THE PRIOR NET
OPERATING LOSS CONVERSION SUBTRACTION PROVIDED FOR IN SUBDIVISION TWO OF
SECTION 11-654.1 OF THIS SUBCHAPTER IS TWENTY MILLION DOLLARS OR GREATER
BUT LESS THAN FORTY MILLION DOLLARS, THE RATE OF TAX PROVIDED FOR IN
THIS PARAGRAPH SHALL NOT BE LESS THAN (I) FOUR AND FOUR HUNDRED TWENTY-
FIVE ONE THOUSANDTHS PERCENTUM, PLUS (II) FOUR AND FOUR HUNDRED TWENTY-
FIVE ONE THOUSANDTHS PERCENTUM MULTIPLIED BY A FRACTION THE NUMERATOR OF
WHICH IS UNALLOCATED BUSINESS INCOME COMPUTED WITHOUT TAKING INTO
ACCOUNT THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION PROVIDED FOR
IN SUBDIVISION TWO OF SECTION 11-654.1 OF THIS SUBCHAPTER LESS TWENTY
MILLION DOLLARS AND THE DENOMINATOR OF WHICH IS TWENTY MILLION DOLLARS,
A. 6009 126
AND PROVIDED, HOWEVER, NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF THE
AMOUNT OF UNALLOCATED BUSINESS INCOME COMPUTED WITHOUT TAKING INTO
ACCOUNT THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION PROVIDED FOR
IN SUBDIVISION TWO OF SECTION 11-654.1 OF THIS SUBCHAPTER IS FORTY
MILLION DOLLARS OR GREATER, THE RATE OF TAX SHALL BE EIGHT AND
EIGHTY-FIVE ONE-HUNDREDTHS PER CENTUM.
(4)(I) AS USED IN THIS SUBPARAGRAPH, THE TERM "MANUFACTURING CORPO-
RATION" MEANS A CORPORATION PRINCIPALLY ENGAGED IN THE MANUFACTURING AND
SALE THEREOF OF TANGIBLE PERSONAL PROPERTY; AND THE TERM "MANUFACTURING"
INCLUDES THE PROCESS (INCLUDING THE ASSEMBLY PROCESS) (A) OF WORKING RAW
MATERIALS INTO WARES SUITABLE FOR USE OR (B) WHICH GIVES NEW SHAPES, NEW
QUALITIES OR NEW COMBINATIONS TO MATTER WHICH ALREADY HAS GONE THROUGH
SOME ARTIFICIAL PROCESS, BY THE USE OF MACHINERY, TOOLS, APPLIANCES AND
OTHER SIMILAR EQUIPMENT. MOREOVER, IN THE CASE OF A COMBINED REPORT, A
COMBINED GROUP SHALL BE CONSIDERED A "MANUFACTURING CORPORATION" FOR
PURPOSES OF THIS SUBPARAGRAPH ONLY IF THE COMBINED GROUP DURING THE
TAXABLE YEAR IS PRINCIPALLY ENGAGED IN THE ACTIVITIES SET FORTH IN THIS
PARAGRAPH, OR ANY COMBINATION THEREOF. A TAXPAYER OR, IN THE CASE OF A
COMBINED REPORT, A COMBINED GROUP, SHALL BE "PRINCIPALLY ENGAGED" IN
ACTIVITIES DESCRIBED ABOVE IF, DURING THE TAXABLE YEAR, MORE THAN FIFTY
PERCENT OF THE GROSS RECEIPTS OF THE TAXPAYER OR COMBINED GROUP, RESPEC-
TIVELY, ARE DERIVED FROM RECEIPTS FROM THE SALE OF GOODS PRODUCED BY
SUCH ACTIVITIES. IN COMPUTING A COMBINED GROUP'S GROSS RECEIPTS, INTER-
CORPORATE RECEIPTS SHALL BE ELIMINATED.
(II) A "QUALIFIED NEW YORK CITY MANUFACTURING CORPORATION" IS A MANU-
FACTURING CORPORATION THAT HAS PROPERTY IN THE CITY WHICH IS DESCRIBED
IN SUBPARAGRAPH FIVE OF THIS PARAGRAPH AND EITHER (A) THE ADJUSTED BASIS
OF SUCH PROPERTY FOR FEDERAL INCOME TAX PURPOSES AT THE CLOSE OF THE
TAXABLE YEAR IS AT LEAST ONE MILLION DOLLARS OR (B) MORE THAN FIFTY
PERCENTUM OF ITS REAL AND PERSONAL PROPERTY IS LOCATED IN THE CITY.
(5) FOR PURPOSES OF SUBCLAUSE (A) OF CLAUSE (II) OF SUBPARAGRAPH FOUR
OF THIS PARAGRAPH, PROPERTY INCLUDES TANGIBLE PERSONAL PROPERTY AND
OTHER TANGIBLE PROPERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS
OF BUILDINGS, WHICH ARE: DEPRECIABLE PURSUANT TO SECTION ONE HUNDRED
SIXTY-SEVEN OF THE INTERNAL REVENUE CODE, HAVE A USEFUL LIFE OF FOUR
YEARS OR MORE, ARE ACQUIRED BY PURCHASE AS DEFINED IN SUBSECTION (D) OF
SECTION ONE HUNDRED SEVENTY-NINE OF THE INTERNAL REVENUE CODE, HAVE A
SITUS IN THIS CITY AND ARE PRINCIPALLY USED BY THE TAXPAYER IN THE
PRODUCTION OF GOODS BY MANUFACTURING. PROPERTY USED IN THE PRODUCTION OF
GOODS SHALL INCLUDE MACHINERY, EQUIPMENT OR OTHER TANGIBLE PROPERTY
WHICH IS PRINCIPALLY USED IN THE REPAIR AND SERVICE OF OTHER MACHINERY,
EQUIPMENT OR OTHER TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION
OF GOODS AND SHALL INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERA-
TION, INCLUDING STORAGE OF MATERIAL TO BE USED IN PRODUCTION AND OF THE
PRODUCTS THAT ARE PRODUCED.
2. THE AMOUNT OF BUSINESS CAPITAL SHALL BE DETERMINED BY TAKING THE
AVERAGE VALUE OF THE GROSS ASSETS INCLUDED THEREIN (LESS LIABILITIES
DEDUCTIBLE THEREFROM PURSUANT TO THE PROVISIONS OF SUBDIVISIONS FOUR AND
SIX OF SECTION 11-652 OF THIS SUBCHAPTER), AND, IF THE PERIOD COVERED BY
THE REPORT IS OTHER THAN A PERIOD OF TWELVE CALENDAR MONTHS, BY MULTI-
PLYING SUCH VALUE BY THE NUMBER OF CALENDAR MONTHS OR MAJOR PARTS THERE-
OF INCLUDED IN SUCH PERIOD, AND DIVIDING THE PRODUCT THUS OBTAINED BY
TWELVE. FOR PURPOSES OF THIS SUBDIVISION, REAL PROPERTY AND MARKETABLE
SECURITIES SHALL BE VALUED AT FAIR MARKET VALUE AND THE VALUE OF
PERSONAL PROPERTY OTHER THAN MARKETABLE SECURITIES SHALL BE THE VALUE
A. 6009 127
THEREOF SHOWN ON THE BOOKS AND RECORDS OF THE TAXPAYER IN ACCORDANCE
WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
3. THE PORTION OF THE BUSINESS INCOME OF A TAXPAYER TO BE ALLOCATED TO
THE CITY SHALL BE DETERMINED AS FOLLOWS:
(A) MULTIPLY ITS BUSINESS INCOME BY A BUSINESS ALLOCATION PERCENTAGE
TO BE DETERMINED BY:
(1) ASCERTAINING THE PERCENTAGE WHICH THE AVERAGE VALUE OF THE TAXPAY-
ER'S REAL AND TANGIBLE PERSONAL PROPERTY, WHETHER OWNED OR RENTED TO IT,
WITHIN THE CITY DURING THE PERIOD COVERED BY ITS REPORT BEARS TO THE
AVERAGE VALUE OF ALL THE TAXPAYER'S REAL AND TANGIBLE PERSONAL PROPERTY,
WHETHER OWNED OR RENTED TO IT, WHEREVER SITUATED DURING SUCH PERIOD. FOR
THE PURPOSE OF THIS SUBPARAGRAPH, THE TERM "VALUE OF THE TAXPAYER'S REAL
AND TANGIBLE PERSONAL PROPERTY" SHALL MEAN THE ADJUSTED BASES OF SUCH
PROPERTIES FOR FEDERAL INCOME TAX PURPOSES (EXCEPT THAT IN THE CASE OF
RENTED PROPERTY SUCH VALUE SHALL MEAN THE PRODUCT OF (I) EIGHT AND (II)
THE GROSS RENTS PAYABLE FOR THE RENTAL OF SUCH PROPERTY DURING THE TAXA-
BLE YEAR); PROVIDED, HOWEVER, THAT THE TAXPAYER MAY MAKE A ONE-TIME,
REVOCABLE ELECTION, PURSUANT TO REGULATIONS PROMULGATED BY THE COMMIS-
SIONER OF FINANCE TO USE FAIR MARKET VALUE AS THE VALUE OF ALL OF ITS
REAL AND TANGIBLE PERSONAL PROPERTY, PROVIDED THAT SUCH ELECTION IS MADE
ON OR BEFORE THE DUE DATE FOR FILING A REPORT UNDER SECTION 11-655 OF
THIS SUBCHAPTER FOR THE TAXPAYER'S FIRST TAXABLE YEAR COMMENCING ON OR
AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN AND PROVIDED THAT SUCH
ELECTION SHALL NOT APPLY TO ANY TAXABLE YEAR WITH RESPECT TO WHICH THE
TAXPAYER IS INCLUDED ON A COMBINED REPORT UNLESS EACH OF THE TAXPAYERS
INCLUDED ON SUCH REPORT HAS MADE SUCH AN ELECTION WHICH REMAINS IN
EFFECT FOR SUCH YEAR OR TO ANY TAXPAYER THAT WAS SUBJECT TO TAX UNDER
SUBCHAPTER TWO OF THIS CHAPTER AND DID NOT HAVE AN ELECTION IN EFFECT
UNDER SUBPARAGRAPH ONE OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION
11-604 OF THIS CHAPTER ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN;
(2) ASCERTAINING THE PERCENTAGE DETERMINED UNDER SECTION 11-654.2 OF
THIS SUBCHAPTER;
(3) ASCERTAINING THE PERCENTAGE OF THE TOTAL WAGES, SALARIES AND OTHER
PERSONAL SERVICE COMPENSATION, SIMILARLY COMPUTED, DURING SUCH PERIOD OF
EMPLOYEES WITHIN THE CITY, EXCEPT GENERAL EXECUTIVE OFFICERS, TO THE
TOTAL WAGES, SALARIES AND OTHER PERSONAL SERVICE COMPENSATION, SIMILARLY
COMPUTED, DURING SUCH PERIOD OF ALL THE TAXPAYER'S EMPLOYEES WITHIN AND
WITHOUT THE CITY, EXCEPT GENERAL EXECUTIVE OFFICERS; AND
(4) ADDING TOGETHER THE PERCENTAGES SO DETERMINED AND DIVIDING THE
RESULT BY THE NUMBER OF PERCENTAGES.
(5) INTENTIONALLY OMITTED.
(6) INTENTIONALLY OMITTED.
(7) INTENTIONALLY OMITTED.
(8) INTENTIONALLY OMITTED.
(9) INTENTIONALLY OMITTED.
(10) NOTWITHSTANDING SUBPARAGRAPHS ONE THROUGH FOUR OF THIS PARAGRAPH,
THE BUSINESS ALLOCATION PERCENTAGE, TO THE EXTENT THAT IT IS COMPUTED BY
REFERENCE TO THE PERCENTAGES DETERMINED UNDER SUBPARAGRAPHS ONE, TWO AND
THREE OF THIS PARAGRAPH, SHALL BE COMPUTED IN THE MANNER SET FORTH IN
THIS SUBPARAGRAPH.
(I) INTENTIONALLY OMITTED.
(II) INTENTIONALLY OMITTED.
(III) INTENTIONALLY OMITTED.
(IV) INTENTIONALLY OMITTED.
(V) INTENTIONALLY OMITTED.
(VI) INTENTIONALLY OMITTED.
A. 6009 128
(VII) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FIFTEEN, THE BUSI-
NESS ALLOCATION PERCENTAGE SHALL BE DETERMINED BY ADDING TOGETHER THE
FOLLOWING PERCENTAGES:
(A) THE PRODUCT OF TEN PERCENT AND THE PERCENTAGE DETERMINED UNDER
SUBPARAGRAPH ONE OF THIS PARAGRAPH;
(B) THE PRODUCT OF EIGHTY PERCENT AND THE PERCENTAGE DETERMINED UNDER
SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND
(C) THE PRODUCT OF TEN PERCENT AND THE PERCENTAGE DETERMINED UNDER
SUBPARAGRAPH THREE OF THIS PARAGRAPH.
(VIII) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SIXTEEN, THE BUSI-
NESS ALLOCATION PERCENTAGE SHALL BE DETERMINED BY ADDING TOGETHER THE
FOLLOWING PERCENTAGES:
(A) THE PRODUCT OF SIX AND ONE-HALF PERCENT AND THE PERCENTAGE DETER-
MINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH;
(B) THE PRODUCT OF EIGHTY-SEVEN PERCENT AND THE PERCENTAGE DETERMINED
UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND
(C) THE PRODUCT OF SIX AND ONE-HALF PERCENT AND THE PERCENTAGE DETER-
MINED UNDER SUBPARAGRAPH THREE OF THIS PARAGRAPH.
(IX) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SEVENTEEN, THE BUSI-
NESS ALLOCATION PERCENTAGE SHALL BE DETERMINED BY ADDING TOGETHER THE
FOLLOWING PERCENTAGES:
(A) THE PRODUCT OF THREE AND ONE-HALF PERCENT AND THE PERCENTAGE
DETERMINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH;
(B) THE PRODUCT OF NINETY-THREE PERCENT AND THE PERCENTAGE DETERMINED
UNDER SUBPARAGRAPH TWO OF THIS PARAGRAPH; AND
(C) THE PRODUCT OF THREE AND ONE-HALF PERCENT AND THE PERCENTAGE
DETERMINED UNDER SUBPARAGRAPH THREE OF THIS PARAGRAPH.
(X) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, THE
BUSINESS ALLOCATION PERCENTAGE SHALL BE THE PERCENTAGE DETERMINED UNDER
SUBPARAGRAPH TWO OF THIS PARAGRAPH.
(XI) THE COMMISSIONER OF FINANCE SHALL PROMULGATE RULES NECESSARY TO
IMPLEMENT THE PROVISIONS OF THIS SUBPARAGRAPH UNDER SUCH CIRCUMSTANCES
WHERE ANY OF THE PERCENTAGES TO BE DETERMINED UNDER SUBPARAGRAPH ONE,
TWO OR THREE OF THIS PARAGRAPH CANNOT BE DETERMINED BECAUSE THE TAXPAYER
HAS NO PROPERTY, RECEIPTS OR WAGES WITHIN OR WITHOUT THE CITY.
(B) INTENTIONALLY OMITTED.
(C) INTENTIONALLY OMITTED.
(D) IN ANY TAXABLE YEAR WHEN PROPERTY IS SOLD OR OTHERWISE DISPOSED
OF, WITH RESPECT TO WHICH A DEDUCTION HAS BEEN ALLOWED PURSUANT TO
SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (D) OF SUBDIVISION THREE OF SECTION
11-604 OF THIS CHAPTER OR SUBDIVISION (K) OF SECTION 11-641 OF THIS
CHAPTER IN ANY PERIOD IN WHICH THE TAXPAYER WAS SUBJECT TO TAX UNDER
SUBCHAPTER TWO OF THIS CHAPTER, THE GAIN OR LOSS THEREON ENTERING INTO
THE COMPUTATION OF FEDERAL TAXABLE INCOME SHALL BE DISREGARDED IN
COMPUTING ENTIRE NET INCOME, AND THERE SHALL BE ADDED TO OR SUBTRACTED
FROM THE PORTION OF ENTIRE NET INCOME ALLOCATED WITHIN THE CITY THE GAIN
OR LOSS UPON SUCH SALE OR OTHER DISPOSITION. IN COMPUTING SUCH GAIN OR
LOSS THE BASIS OF THE PROPERTY SOLD OR DISPOSED OF SHALL BE ADJUSTED TO
REFLECT THE DEDUCTION ALLOWED WITH RESPECT TO SUCH PROPERTY PURSUANT TO
SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (D) OF SUBDIVISION THREE OF SECTION
11-604 OF THIS CHAPTER. PROVIDED, HOWEVER, THAT NO LOSS SHALL BE RECOG-
NIZED FOR THE PURPOSES OF THIS SUBPARAGRAPH WITH RESPECT TO A SALE OR
OTHER DISPOSITION OF PROPERTY TO A PERSON WHOSE ACQUISITION THEREOF IS
NOT A PURCHASE AS DEFINED IN SUBSECTION (D) OF SECTION ONE HUNDRED
SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
A. 6009 129
(E) IN ANY TAXABLE YEAR WHEN PROPERTY IS SOLD OR OTHERWISE DISPOSED
OF, WITH RESPECT TO WHICH A DEDUCTION HAS BEEN ALLOWED PURSUANT TO
SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (E) OF SUBDIVISION THREE OF SECTION
11-604 OF THIS CHAPTER IN ANY PERIOD THE TAXPAYER WAS SUBJECT TO TAX
UNDER SUBCHAPTER TWO OF THIS CHAPTER, THE GAIN OR LOSS THEREON ENTERING
INTO THE COMPUTATION OF FEDERAL TAXABLE INCOME SHALL BE DISREGARDED IN
COMPUTING ENTIRE NET INCOME, AND THERE SHALL BE ADDED TO OR SUBTRACTED
FROM THE PORTION OF ENTIRE NET INCOME ALLOCATED WITHIN THE CITY THE GAIN
OR LOSS UPON SUCH SALE OR OTHER DISPOSITION. IN COMPUTING SUCH GAIN OR
LOSS THE BASIS OF THE PROPERTY SOLD OR DISPOSED OF SHALL BE ADJUSTED TO
REFLECT THE DEDUCTION ALLOWED WITH RESPECT TO SUCH PROPERTY PURSUANT TO
SUBPARAGRAPH ONE OR TWO OF PARAGRAPH (E) OF SUBDIVISION THREE OF SECTION
11-604 OF THIS CHAPTER. PROVIDED, HOWEVER, THAT NO LOSS SHALL BE RECOG-
NIZED FOR THE PURPOSES OF THIS SUBPARAGRAPH WITH RESPECT TO A SALE OR
OTHER DISPOSITION OF PROPERTY TO A PERSON WHOSE ACQUISITION THEREOF IS
NOT A PURCHASE AS DEFINED IN SUBSECTION (D) OF SECTION ONE HUNDRED
SEVENTY-NINE OF THE INTERNAL REVENUE CODE.
4. THE PORTION OF THE BUSINESS CAPITAL OF A TAXPAYER TO BE ALLOCATED
WITHIN THE CITY SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT THEREOF BY
THE BUSINESS ALLOCATION PERCENTAGE DETERMINED AS HEREINABOVE PROVIDED.
4-A. A CORPORATION THAT IS A PARTNER IN A PARTNERSHIP SHALL COMPUTE
TAX UNDER THIS SUBCHAPTER USING ANY METHOD REQUIRED OR PERMITTED IN
REGULATIONS OF THE COMMISSIONER OF FINANCE.
5. INTENTIONALLY OMITTED.
6. INTENTIONALLY OMITTED.
7. INTENTIONALLY OMITTED.
8. INTENTIONALLY OMITTED.
9. IF IT SHALL APPEAR TO THE COMMISSIONER OF FINANCE THAT ANY BUSINESS
ALLOCATION PERCENTAGE DETERMINED AS HEREINABOVE PROVIDED DOES NOT PROP-
ERLY REFLECT THE ACTIVITY, BUSINESS, INCOME OR CAPITAL OF A TAXPAYER
WITHIN THE CITY, THE COMMISSIONER OF FINANCE SHALL BE AUTHORIZED IN HIS
OR HER DISCRETION TO ADJUST IT, OR THE TAXPAYER MAY REQUEST THAT THE
COMMISSIONER OF FINANCE ADJUST IT, BY (A) EXCLUDING ONE OR MORE OF THE
FACTORS THEREIN, (B) INCLUDING ONE OR MORE OTHER FACTORS, SUCH AS
EXPENSES, PURCHASES, CONTRACT VALUES (MINUS SUBCONTRACT VALUES), (C)
EXCLUDING ONE OR MORE ASSETS IN COMPUTING SUCH ALLOCATION PERCENTAGE,
PROVIDED THE INCOME THEREFROM, IS ALSO EXCLUDED IN DETERMINING ENTIRE
NET INCOME, OR (D) ANY OTHER SIMILAR OR DIFFERENT METHOD CALCULATED TO
EFFECT A FAIR AND PROPER ALLOCATION OF THE INCOME AND CAPITAL REASONABLY
ATTRIBUTABLE TO THE CITY. THE COMMISSIONER OF FINANCE FROM TIME TO TIME
SHALL PUBLISH ALL RULINGS OF GENERAL PUBLIC INTEREST WITH RESPECT TO ANY
APPLICATION OF THE PROVISIONS OF THIS SUBDIVISION.
10. INTENTIONALLY OMITTED.
11. INTENTIONALLY OMITTED.
12. INTENTIONALLY OMITTED.
13. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS
SUBCHAPTER TO BE CREDITED OR REFUNDED WITHOUT INTEREST, IN THE MANNER
HEREINAFTER PROVIDED IN THIS SECTION.
(1)(I) WHERE A TAXPAYER SHALL HAVE RELOCATED TO THE CITY FROM A
LOCATION OUTSIDE THE STATE, AND BY SUCH RELOCATION SHALL HAVE CREATED A
MINIMUM OF ONE HUNDRED INDUSTRIAL OR COMMERCIAL EMPLOYMENT OPPORTU-
NITIES; AND WHERE SUCH TAXPAYER SHALL HAVE ENTERED INTO A WRITTEN LEASE
FOR THE RELOCATION PREMISES, THE TERMS OF WHICH LEASE PROVIDE FOR
INCREASED ADDITIONAL PAYMENTS TO THE LANDLORD WHICH ARE BASED SOLELY AND
DIRECTLY UPON ANY INCREASE OR ADDITION IN REAL ESTATE TAXES IMPOSED ON
A. 6009 130
THE LEASED PREMISES, THE TAXPAYER UPON APPROVAL AND CERTIFICATION BY THE
INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD AS HEREINAFTER PROVIDED SHALL
BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER. THE
AMOUNT OF SUCH CREDIT SHALL BE AN AMOUNT EQUAL TO THE ANNUAL INCREASED
PAYMENTS ACTUALLY MADE BY THE TAXPAYER TO THE LANDLORD WHICH ARE SOLELY
AND DIRECTLY ATTRIBUTABLE TO AN INCREASE OR ADDITION TO THE REAL ESTATE
TAX IMPOSED UPON THE LEASED PREMISES. SUCH CREDIT SHALL BE ALLOWED ONLY
TO THE EXTENT THAT THE TAXPAYER HAS NOT OTHERWISE CLAIMED SAID AMOUNT AS
A DEDUCTION AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER.
(II) THE INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD IN APPROVING AND
CERTIFYING TO THE QUALIFICATIONS OF THE TAXPAYER TO RECEIVE THE TAX
CREDIT PROVIDED FOR HEREIN SHALL FIRST DETERMINE THAT THE APPLICANT HAS
MET THE REQUIREMENTS OF THIS SECTION, AND FURTHER, THAT THE GRANTING OF
THE TAX CREDIT TO THE APPLICANT IS IN THE "PUBLIC INTEREST". IN DETER-
MINING THAT THE GRANTING OF THE TAX CREDIT IS IN THE PUBLIC INTEREST,
THE BOARD SHALL MAKE AFFIRMATIVE FINDINGS THAT: THE GRANTING OF THE TAX
CREDIT TO THE APPLICANT WILL NOT EFFECT AN UNDUE HARDSHIP ON SIMILAR
TAXPAYERS ALREADY LOCATED WITHIN THE CITY; THE EXISTENCE OF THIS TAX
INCENTIVE HAS BEEN INSTRUMENTAL IN BRINGING ABOUT THE RELOCATION OF THE
APPLICANT TO THE CITY; AND THE GRANTING OF THE TAX CREDIT WILL FOSTER
THE ECONOMIC RECOVERY AND ECONOMIC DEVELOPMENT OF THE CITY.
(III) THE TAX CREDIT, IF APPROVED AND CERTIFIED BY THE INDUSTRIAL AND
COMMERCIAL INCENTIVE BOARD, MUST BE UTILIZED ANNUALLY BY THE TAXPAYER
FOR THE LENGTH OF THE TERM OF THE LEASE OR FOR A PERIOD NOT TO EXCEED
TEN YEARS FROM THE DATE OF RELOCATION WHICHEVER PERIOD IS SHORTER.
(2) WHEN USED IN THIS SUBDIVISION:
(I) "EMPLOYMENT OPPORTUNITY" MEANS THE CREATION OF A FULL TIME POSI-
TION OF GAINFUL EMPLOYMENT FOR AN INDUSTRIAL OR COMMERCIAL EMPLOYEE AND
THE ACTUAL HIRING OF SUCH EMPLOYEE FOR THE SAID POSITION.
(II) "INDUSTRIAL EMPLOYEE" MEANS ONE ENGAGED IN THE MANUFACTURE OR
ASSEMBLING OF TANGIBLE GOODS OR THE PROCESSING OF RAW MATERIALS.
(III) "COMMERCIAL EMPLOYEE" MEANS ONE ENGAGED IN THE BUYING, SELLING
OR OTHERWISE PROVIDING OF GOODS OR SERVICES OTHER THAN ON A RETAIL
BASIS.
(IV) "RETAIL" MEANS THE SELLING OR OTHERWISE DISPOSING OR FURNISHING
OF TANGIBLE GOODS OR SERVICES DIRECTLY TO THE ULTIMATE USER OR CONSUMER.
(V) "FULL TIME POSITION" MEANS THE HIRING OF AN INDUSTRIAL OR COMMER-
CIAL EMPLOYEE IN A POSITION OF GAINFUL EMPLOYMENT WHERE THE NUMBER OF
HOURS WORKED BY SUCH EMPLOYEES IS NOT LESS THAN THIRTY HOURS DURING ANY
GIVEN WORK WEEK.
(VI) "INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD" MEANS THE BOARD
CREATED PURSUANT TO PART THREE OF SUBCHAPTER TWO OF CHAPTER TWO OF THIS
TITLE.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
SHALL BE DEEMED TO BE AN OVERPAYMENT OF TAX BY THE TAXPAYER TO BE CRED-
ITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 11-677 OF THIS CHAPTER.
14. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A
TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS
SUBCHAPTER TO BE CREDITED OR REFUNDED WITHOUT INTEREST, IN THE MANNER
HEREINAFTER PROVIDED IN THIS SECTION. THE AMOUNT OF SUCH CREDIT SHALL
BE:
(1) A MAXIMUM OF THREE HUNDRED DOLLARS FOR EACH COMMERCIAL EMPLOYMENT
OPPORTUNITY AND A MAXIMUM OF FIVE HUNDRED DOLLARS FOR EACH INDUSTRIAL
EMPLOYMENT OPPORTUNITY RELOCATED TO THE CITY FROM AN AREA OUTSIDE THE
STATE. SUCH CREDIT SHALL BE ALLOWED TO A TAXPAYER WHO RELOCATES A MINI-
A. 6009 131
MUM OF TEN EMPLOYMENT OPPORTUNITIES. THE CREDIT SHALL BE ALLOWED AGAINST
EMPLOYMENT OPPORTUNITY RELOCATION COSTS INCURRED BY THE TAXPAYER. SUCH
CREDIT SHALL BE ALLOWED ONLY TO THE EXTENT THAT THE TAXPAYER HAS NOT
CLAIMED A DEDUCTION FOR ALLOWABLE EMPLOYMENT OPPORTUNITY RELOCATION
COSTS. THE CREDIT ALLOWED HEREUNDER MAY BE TAKEN BY THE TAXPAYER IN
WHOLE OR IN PART IN THE YEAR IN WHICH THE EMPLOYMENT OPPORTUNITY IS
RELOCATED BY SUCH TAXPAYER OR EITHER OF THE TWO YEARS SUCCEEDING SUCH
EVENT, PROVIDED, HOWEVER, NO CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVI-
SION TO A TAXPAYER FOR INDUSTRIAL EMPLOYMENT OPPORTUNITIES RELOCATED TO
PREMISES (I) THAT ARE WITHIN AN INDUSTRIAL BUSINESS ZONE ESTABLISHED
PURSUANT TO SECTION 22-626 OF THIS CODE AND (II) FOR WHICH A BINDING
CONTRACT TO PURCHASE OR LEASE WAS FIRST ENTERED INTO BY THE TAXPAYER ON
OR AFTER JULY FIRST, TWO THOUSAND FIVE.
THE COMMISSIONER OF FINANCE IS EMPOWERED TO PROMULGATE RULES AND REGU-
LATIONS AND TO PRESCRIBE THE FORM OF APPLICATION TO BE USED BY A TAXPAY-
ER SEEKING THE CREDIT PROVIDED HEREUNDER.
(2) WHEN USED IN THIS SUBDIVISION:
(I) "EMPLOYMENT OPPORTUNITY" MEANS THE CREATION OF A FULL TIME POSI-
TION OF GAINFUL EMPLOYMENT FOR AN INDUSTRIAL OR COMMERCIAL EMPLOYEE AND
THE ACTUAL HIRING OF SUCH EMPLOYEE FOR THE SAID POSITION.
(II) "INDUSTRIAL EMPLOYEE" MEANS ONE ENGAGED IN THE MANUFACTURE OR
ASSEMBLING OF TANGIBLE GOODS OR THE PROCESSING OF RAW MATERIALS.
(III) "COMMERCIAL EMPLOYEE" MEANS ONE ENGAGED IN THE BUYING, SELLING
OR OTHERWISE PROVIDING OF GOODS OR SERVICES OTHER THAN ON A RETAIL
BASIS.
(IV) "RETAIL" MEANS THE SELLING OR OTHERWISE DISPOSING OF TANGIBLE
GOODS DIRECTLY TO THE ULTIMATE USER OR CONSUMER.
(V) "FULL TIME POSITION" MEANS THE HIRING OF AN INDUSTRIAL OR COMMER-
CIAL EMPLOYEE IN A POSITION OF GAINFUL EMPLOYMENT WHERE THE NUMBER OF
HOURS WORKED BY SUCH EMPLOYEE IS NOT LESS THAN THIRTY HOURS DURING ANY
GIVEN WORK WEEK.
(VI) "EMPLOYMENT OPPORTUNITY RELOCATION COSTS" MEANS THE COSTS
INCURRED BY THE TAXPAYER IN MOVING FURNITURE, FILES, PAPERS AND OFFICE
EQUIPMENT INTO THE CITY FROM A LOCATION OUTSIDE THE STATE; THE COSTS
INCURRED BY THE TAXPAYER IN THE MOVING AND INSTALLATION OF MACHINERY AND
EQUIPMENT INTO THE CITY FROM A LOCATION OUTSIDE THE STATE; THE COSTS OF
INSTALLATION OF TELEPHONES AND OTHER COMMUNICATIONS EQUIPMENT REQUIRED
AS A RESULT OF THE RELOCATION TO THE CITY FROM A LOCATION OUTSIDE THE
STATE; THE COST INCURRED IN THE PURCHASE OF OFFICE FURNITURE AND
FIXTURES REQUIRED AS A RESULT OF THE RELOCATION TO THE CITY FROM A
LOCATION OUTSIDE THE STATE; AND THE COST OF RENOVATION OF THE PREMISES
TO BE OCCUPIED AS A RESULT OF THE RELOCATION; PROVIDED, HOWEVER, THAT
SUCH RENOVATION COSTS SHALL BE ALLOWABLE ONLY TO THE EXTENT THAT THEY DO
NOT EXCEED SEVENTY-FIVE CENTS PER SQUARE FOOT OF THE TOTAL AREA UTILIZED
BY THE TAXPAYER IN THE OCCUPIED PREMISES.
(B) THE CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR SHALL
BE DEEMED TO BE AN OVERPAYMENT OF TAX BY THE TAXPAYER TO BE CREDITED OR
REFUNDED WITHOUT INTEREST IN ACCORDANCE WITH THE PROVISIONS OF SECTION
11-677 OF THIS CHAPTER.
(C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE
CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS RECEIVED, IN A TAXABLE YEAR
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE CREDIT SET
FORTH IN SUBDIVISION FOURTEEN OF SECTION 11-604 OF THIS CHAPTER FOR AN
ELIGIBLE EMPLOYMENT RELOCATION, A CREDIT SHALL BE ALLOWED TO THE TAXPAY-
ER UNDER THIS SUBDIVISION FOR ANY TAX YEAR BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND FIFTEEN, IN THE SAME AMOUNT AND TO THE SAME EXTENT
A. 6009 132
THAT A CREDIT, OR THE UNUSED PORTION THEREOF, WOULD HAVE BEEN ALLOWED
UNDER SUBDIVISION FOURTEEN OF SECTION 11-604 OF THIS CHAPTER, AS IN
EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, IF SUCH SUBDIVI-
SION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE YEAR.
15. INTENTIONALLY OMITTED.
16. INTENTIONALLY OMITTED.
17. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A
TAXPAYER THAT HAS OBTAINED THE CERTIFICATIONS REQUIRED BY CHAPTER SIX-B
OF TITLE TWENTY-TWO OF THIS CODE SHALL BE ALLOWED A CREDIT AGAINST THE
TAX IMPOSED BY THIS SUBCHAPTER. THE AMOUNT OF THE CREDIT SHALL BE THE
AMOUNT DETERMINED BY MULTIPLYING FIVE HUNDRED DOLLARS OR, IN THE CASE OF
A TAXPAYER THAT HAS OBTAINED PURSUANT TO CHAPTER SIX-B OF SUCH TITLE
TWENTY-TWO A CERTIFICATION OF ELIGIBILITY DATED ON OR AFTER JULY FIRST,
NINETEEN HUNDRED NINETY-FIVE, ONE THOUSAND DOLLARS OR, IN THE CASE OF AN
ELIGIBLE BUSINESS THAT HAS OBTAINED PURSUANT TO CHAPTER SIX-B OF SUCH
TITLE TWENTY-TWO A CERTIFICATION OF ELIGIBILITY DATED ON OR AFTER JULY
FIRST, TWO THOUSAND, FOR A RELOCATION TO ELIGIBLE PREMISES LOCATED WITH-
IN A REVITALIZATION AREA DEFINED IN SUBDIVISION (N) OF SECTION 22-621 OF
THIS CODE, THREE THOUSAND DOLLARS, BY THE NUMBER OF ELIGIBLE AGGREGATE
EMPLOYMENT SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE YEAR
WITH RESPECT TO PARTICULAR PREMISES TO WHICH THE TAXPAYER HAS RELOCATED;
PROVIDED, HOWEVER, WITH RESPECT TO A RELOCATION FOR WHICH NO APPLICATION
FOR A CERTIFICATE OF ELIGIBILITY IS SUBMITTED PRIOR TO JULY FIRST, TWO
THOUSAND THREE, TO ELIGIBLE PREMISES THAT ARE NOT WITHIN A REVITALIZA-
TION AREA, IF THE DATE OF SUCH RELOCATION AS DETERMINED PURSUANT TO
SUBDIVISION (J) OF SECTION 22-621 OF THIS CODE IS BEFORE JULY FIRST,
NINETEEN HUNDRED NINETY-FIVE, THE AMOUNT TO BE MULTIPLIED BY THE NUMBER
OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES SHALL BE FIVE HUNDRED DOLLARS,
AND WITH RESPECT TO A RELOCATION FOR WHICH NO APPLICATION FOR A CERTIF-
ICATE OF ELIGIBILITY IS SUBMITTED PRIOR TO JULY FIRST, TWO THOUSAND
THREE, TO ELIGIBLE PREMISES THAT ARE WITHIN A REVITALIZATION AREA, IF
THE DATE OF SUCH RELOCATION AS DETERMINED PURSUANT TO SUBDIVISION (J) OF
SUCH SECTION IS BEFORE JULY FIRST, NINETEEN HUNDRED NINETY-FIVE, THE
AMOUNT TO BE MULTIPLIED BY THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT
SHARES SHALL BE FIVE HUNDRED DOLLARS, AND IF THE DATE OF SUCH RELOCATION
AS DETERMINED PURSUANT TO SUBDIVISION (J) OF SUCH SECTION IS ON OR AFTER
JULY FIRST, NINETEEN HUNDRED NINETY-FIVE, AND BEFORE JULY FIRST, TWO
THOUSAND, ONE THOUSAND DOLLARS; PROVIDED, HOWEVER, THAT NO CREDIT SHALL
BE ALLOWED FOR THE RELOCATION OF ANY RETAIL ACTIVITY OR HOTEL SERVICES;
PROVIDED, FURTHER, THAT NO CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVI-
SION TO ANY TAXPAYER THAT HAS ELECTED PURSUANT TO SUBDIVISION (D) OF
SECTION 22-622 OF THIS CODE TO TAKE SUCH CREDIT AGAINST A GROSS RECEIPTS
TAX IMPOSED BY CHAPTER ELEVEN OF THIS TITLE; AND PROVIDED THAT IN THE
CASE OF AN ELIGIBLE BUSINESS THAT HAS OBTAINED PURSUANT TO CHAPTER SIX-B
OF SUCH TITLE TWENTY-TWO CERTIFICATIONS OF ELIGIBILITY FOR MORE THAN ONE
RELOCATION, THE PORTION OF THE TOTAL AMOUNT OF ELIGIBLE AGGREGATE
EMPLOYMENT SHARES TO BE MULTIPLIED BY THE DOLLAR AMOUNT SPECIFIED IN
THIS SUBDIVISION FOR EACH SUCH CERTIFICATION OF A RELOCATION SHALL BE
THE NUMBER OF TOTAL ATTRIBUTED ELIGIBLE AGGREGATE EMPLOYMENT SHARES
DETERMINED WITH RESPECT TO SUCH RELOCATION PURSUANT TO SUBDIVISION (O)
OF SECTION 22-621 OF THIS CODE. FOR PURPOSES OF THIS SUBDIVISION, THE
TERMS "ELIGIBLE AGGREGATE EMPLOYMENT SHARES," "RELOCATE," "RETAIL ACTIV-
ITY" AND "HOTEL SERVICES" SHALL HAVE THE MEANINGS ASCRIBED BY SECTION
22-621 OF THIS CODE.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE
AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO PARTICULAR PREM-
A. 6009 133
ISES TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE FIRST
TAXABLE YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE
MAINTAINED WITH RESPECT TO SUCH PREMISES AND FOR ANY OF THE TWELVE
SUCCEEDING TAXABLE YEARS DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT
SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES; PROVIDED THAT THE
CREDIT ALLOWED FOR THE TWELFTH SUCCEEDING TAXABLE YEAR SHALL BE CALCU-
LATED BY MULTIPLYING THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES
MAINTAINED WITH RESPECT TO SUCH PREMISES IN THE TWELFTH SUCCEEDING TAXA-
BLE YEAR BY THE LESSER OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS
SUCH NUMBER OF DAYS IN THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF
DAYS THE ELIGIBLE BUSINESS MAINTAINED EMPLOYMENT SHARES IN THE ELIGIBLE
PREMISES IN THE TAXABLE YEAR OF RELOCATION AND THE DENOMINATOR OF WHICH
IS THE NUMBER OF DAYS IN SUCH TWELFTH SUCCEEDING TAXABLE YEAR DURING
WHICH SUCH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED WITH
RESPECT TO SUCH PREMISES. EXCEPT AS PROVIDED IN PARAGRAPH (D) OF THIS
SUBDIVISION, IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE
EXCESS MAY BE CARRIED OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING
TAXABLE YEARS AND, TO THE EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEARS.
(C) THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL BE DEDUCTED
AFTER THE CREDIT ALLOWED BY SUBDIVISION EIGHTEEN OF THIS SECTION, BUT
PRIOR TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS SECTION.
(D) IN THE CASE OF A TAXPAYER THAT HAS OBTAINED A CERTIFICATION OF
ELIGIBILITY PURSUANT TO CHAPTER SIX-B OF TITLE TWENTY-TWO OF THIS CODE
DATED ON OR AFTER JULY FIRST, TWO THOUSAND FOR A RELOCATION TO ELIGIBLE
PREMISES LOCATED WITHIN THE REVITALIZATION AREA DEFINED IN SUBDIVISION
(N) OF SECTION 22-621 OF THIS CODE, THE CREDITS ALLOWED UNDER THIS
SUBDIVISION, OR IN THE CASE OF A TAXPAYER THAT HAS RELOCATED MORE THAN
ONCE, THE PORTION OF SUCH CREDITS ATTRIBUTED TO SUCH CERTIFICATION OF
ELIGIBILITY PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, AGAINST THE
TAX IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF SUCH RELOCATION AND
FOR THE FOUR TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF
SUCH RELOCATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE
TAXPAYER TO BE CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE
WITH THE PROVISIONS OF SECTION 11-677 OF THIS CHAPTER. FOR SUCH TAXABLE
YEARS, SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY
SUCCEEDING TAXABLE YEAR; PROVIDED, HOWEVER, THAT THIS PARAGRAPH SHALL
NOT APPLY TO ANY RELOCATION FOR WHICH AN APPLICATION FOR A CERTIFICATION
OF ELIGIBILITY WAS NOT SUBMITTED PRIOR TO JULY FIRST, TWO THOUSAND
THREE, UNLESS THE DATE OF SUCH RELOCATION IS ON OR AFTER JULY FIRST, TWO
THOUSAND.
(E) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE
CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS OBTAINED, PURSUANT TO CHAP-
TER SIX-B OF TITLE TWENTY-TWO OF THIS CODE, A CERTIFICATION OF ELIGIBIL-
ITY AND HAS RECEIVED, IN A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST,
TWO THOUSAND FIFTEEN, THE CREDIT SET FORTH IN SUBDIVISION SEVENTEEN OF
SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.7 OF THIS CHAPTER FOR
THE RELOCATION OF AN ELIGIBLE BUSINESS, A CREDIT SHALL BE ALLOWED UNDER
THIS SUBDIVISION TO THE TAXPAYER FOR ANY TAXABLE YEAR BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN IN THE SAME AMOUNT AND TO THE
SAME EXTENT THAT A CREDIT WOULD HAVE BEEN ALLOWED UNDER SUBDIVISION
SEVENTEEN OF SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.7 OF THIS
CHAPTER, AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN,
IF SUCH SUBDIVISION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE
YEAR.
A. 6009 134
17-A. INTENTIONALLY OMITTED.
17-B. (A) IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, AN
ELIGIBLE BUSINESS THAT FIRST ENTERS INTO A BINDING CONTRACT ON OR AFTER
JULY FIRST, TWO THOUSAND FIVE TO PURCHASE OR LEASE ELIGIBLE PREMISES TO
WHICH IT RELOCATES SHALL BE ALLOWED A ONE-TIME CREDIT AGAINST THE TAX
IMPOSED BY THIS SUBCHAPTER TO BE CREDITED OR REFUNDED IN THE MANNER
HEREINAFTER PROVIDED IN THIS SUBDIVISION. THE AMOUNT OF SUCH CREDIT
SHALL BE ONE THOUSAND DOLLARS PER FULL-TIME EMPLOYEE; PROVIDED, HOWEVER,
THAT THE AMOUNT OF SUCH CREDIT SHALL NOT EXCEED THE LESSER OF ACTUAL
RELOCATION COSTS OR ONE HUNDRED THOUSAND DOLLARS.
(B) WHEN USED IN THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
(1) "ELIGIBLE BUSINESS" MEANS ANY BUSINESS SUBJECT TO TAX UNDER THIS
SUBCHAPTER THAT (I) HAS BEEN CONDUCTING SUBSTANTIAL BUSINESS OPERATIONS
AND ENGAGING PRIMARILY IN INDUSTRIAL AND MANUFACTURING ACTIVITIES AT ONE
OR MORE LOCATIONS WITHIN THE CITY OF NEW YORK OR OUTSIDE THE STATE OF
NEW YORK CONTINUOUSLY DURING THE TWENTY-FOUR CONSECUTIVE FULL MONTHS
IMMEDIATELY PRECEDING RELOCATION, (II) HAS LEASED THE PREMISES FROM
WHICH IT RELOCATES CONTINUOUSLY DURING THE TWENTY-FOUR CONSECUTIVE FULL
MONTHS IMMEDIATELY PRECEDING RELOCATION, (III) FIRST ENTERS INTO A BIND-
ING CONTRACT ON OR AFTER JULY FIRST, TWO THOUSAND FIVE TO PURCHASE OR
LEASE ELIGIBLE PREMISES TO WHICH SUCH BUSINESS WILL RELOCATE, AND (IV)
WILL BE ENGAGED PRIMARILY IN INDUSTRIAL AND MANUFACTURING ACTIVITIES AT
SUCH ELIGIBLE PREMISES.
(2) "ELIGIBLE PREMISES" MEANS PREMISES LOCATED ENTIRELY WITHIN AN
INDUSTRIAL BUSINESS ZONE. FOR ANY ELIGIBLE BUSINESS, AN INDUSTRIAL BUSI-
NESS ZONE TAX CREDIT SHALL NOT BE GRANTED WITH RESPECT TO MORE THAN ONE
ELIGIBLE PREMISES.
(3) "FULL-TIME EMPLOYEE" MEANS (I) ONE PERSON GAINFULLY EMPLOYED IN AN
ELIGIBLE PREMISES BY AN ELIGIBLE BUSINESS WHERE THE NUMBER OF HOURS
REQUIRED TO BE WORKED BY SUCH PERSON IS NOT LESS THAN THIRTY-FIVE HOURS
PER WEEK; OR (II) TWO PERSONS GAINFULLY EMPLOYED IN AN ELIGIBLE PREMISES
BY AN ELIGIBLE BUSINESS WHERE THE NUMBER OF HOURS REQUIRED TO BE WORKED
BY EACH SUCH PERSON IS MORE THAN FIFTEEN HOURS PER WEEK BUT LESS THAN
THIRTY-FIVE HOURS PER WEEK.
(4) "INDUSTRIAL BUSINESS ZONE" MEANS AN AREA WITHIN THE CITY OF NEW
YORK ESTABLISHED PURSUANT TO SECTION 22-626 OF THIS CODE.
(5) "INDUSTRIAL BUSINESS ZONE TAX CREDIT" MEANS A CREDIT, AS PROVIDED
FOR IN THIS SUBDIVISION, AGAINST A TAX IMPOSED UNDER THIS SUBCHAPTER.
(6) "INDUSTRIAL AND MANUFACTURING ACTIVITIES" MEANS ACTIVITIES INVOLV-
ING THE ASSEMBLY OF GOODS TO CREATE A DIFFERENT ARTICLE, OR THE PROCESS-
ING, FABRICATION, OR PACKAGING OF GOODS. INDUSTRIAL AND MANUFACTURING
ACTIVITIES SHALL NOT INCLUDE WASTE MANAGEMENT OR UTILITY SERVICES.
(7) "RELOCATION" MEANS THE PHYSICAL RELOCATION OF FURNITURE, FIXTURES,
EQUIPMENT, MACHINERY AND SUPPLIES DIRECTLY TO AN ELIGIBLE PREMISES, FROM
ONE OR MORE LOCATIONS OF AN ELIGIBLE BUSINESS, INCLUDING AT LEAST ONE
LOCATION AT WHICH SUCH BUSINESS CONDUCTS SUBSTANTIAL BUSINESS OPERATIONS
AND ENGAGES PRIMARILY IN INDUSTRIAL AND MANUFACTURING ACTIVITIES. FOR
PURPOSES OF THIS SUBDIVISION, THE DATE OF RELOCATION SHALL BE (I) THE
DATE OF THE COMPLETION OF THE RELOCATION TO THE ELIGIBLE PREMISES OR
(II) NINETY DAYS FROM THE COMMENCEMENT OF THE RELOCATION TO THE ELIGIBLE
PREMISES, WHICHEVER IS EARLIER.
(8) "RELOCATION COSTS" MEANS COSTS INCURRED IN THE RELOCATION OF SUCH
FURNITURE, FIXTURES, EQUIPMENT, MACHINERY AND SUPPLIES, INCLUDING, BUT
NOT LIMITED TO, THE COST OF DISMANTLING AND REASSEMBLING EQUIPMENT AND
THE COST OF FLOOR PREPARATION NECESSARY FOR THE REASSEMBLY OF THE EQUIP-
A. 6009 135
MENT. RELOCATION COSTS SHALL INCLUDE ONLY SUCH COSTS THAT ARE INCURRED
DURING THE NINETY-DAY PERIOD IMMEDIATELY FOLLOWING THE COMMENCEMENT OF
THE RELOCATION TO AN ELIGIBLE PREMISES. RELOCATION COSTS SHALL NOT
INCLUDE COSTS FOR STRUCTURAL OR CAPITAL IMPROVEMENTS OR ITEMS PURCHASED
IN CONNECTION WITH THE RELOCATION.
(C) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
SHALL BE DEEMED TO BE AN OVERPAYMENT OF TAX BY THE TAXPAYER TO BE CRED-
ITED OR REFUNDED WITHOUT INTEREST, IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 11-677 OF THIS CHAPTER.
(D) THE NUMBER OF FULL-TIME EMPLOYEES FOR THE PURPOSES OF CALCULATING
AN INDUSTRIAL BUSINESS TAX CREDIT SHALL BE THE AVERAGE NUMBER OF
FULL-TIME EMPLOYEES, CALCULATED ON A WEEKLY BASIS, EMPLOYED IN THE
ELIGIBLE PREMISES BY THE ELIGIBLE BUSINESS IN THE FIFTY-TWO WEEK PERIOD
IMMEDIATELY FOLLOWING THE EARLIER OF (1) THE DATE OF THE COMPLETION OF
THE RELOCATION TO ELIGIBLE PREMISES OR (2) NINETY DAYS FROM THE
COMMENCEMENT OF THE RELOCATION TO THE ELIGIBLE PREMISES.
(E) THE CREDIT ALLOWED UNDER THIS SUBDIVISION MUST BE TAKEN BY THE
TAXPAYER IN THE TAXABLE YEAR IN WHICH SUCH TWELVE MONTH PERIOD SELECTED
BY THE TAXPAYER ENDS.
(F) FOR THE PURPOSES OF CALCULATING ENTIRE NET INCOME IN THE TAXABLE
YEAR THAT AN INDUSTRIAL BUSINESS TAX CREDIT IS ALLOWED, A TAXPAYER MUST
ADD BACK THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDIVISION, TO THE
EXTENT OF ANY RELOCATION COSTS DEDUCTED IN THE CURRENT TAXABLE YEAR OR A
PRIOR TAXABLE YEAR IN CALCULATING FEDERAL TAXABLE INCOME.
(G) THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL NOT BE GRANTED FOR
AN ELIGIBLE BUSINESS FOR MORE THAN ONE RELOCATION. NOTWITHSTANDING THE
FOREGOING, AN INDUSTRIAL BUSINESS TAX CREDIT SHALL NOT BE GRANTED IF THE
ELIGIBLE BUSINESS RECEIVES BENEFITS PURSUANT TO CHAPTER SIX-B OR SIX-C
OF TITLE TWENTY-TWO OF THIS CODE, THROUGH A GRANT PROGRAM ADMINISTERED
BY THE BUSINESS RELOCATION ASSISTANCE CORPORATION, OR THROUGH THE NEW
YORK CITY PRINTERS RELOCATION FUND GRANT.
(H) THE COMMISSIONER OF FINANCE IS AUTHORIZED TO PROMULGATE RULES AND
REGULATIONS AND TO PRESCRIBE FORMS NECESSARY TO EFFECTUATE THE PURPOSES
OF THIS SUBDIVISION.
18. (A) IF A CORPORATION IS A PARTNER IN AN UNINCORPORATED BUSINESS
TAXABLE UNDER CHAPTER FIVE OF THIS TITLE, AND IS REQUIRED TO INCLUDE IN
ENTIRE NET INCOME ITS DISTRIBUTIVE SHARE OF INCOME, GAIN, LOSS AND
DEDUCTIONS OF, OR GUARANTEED PAYMENTS FROM, SUCH UNINCORPORATED BUSI-
NESS, SUCH CORPORATION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
BY THIS SUBCHAPTER EQUAL TO THE LESSER OF THE AMOUNTS DETERMINED IN
SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH:
(1) THE AMOUNT DETERMINED IN THIS SUBPARAGRAPH IS THE PRODUCT OF (I)
THE SUM OF (A) THE TAX IMPOSED BY CHAPTER FIVE OF THIS TITLE ON THE
UNINCORPORATED BUSINESS FOR ITS TAXABLE YEAR ENDING WITHIN OR WITH THE
TAXABLE YEAR OF THE CORPORATION AND PAID BY THE UNINCORPORATED BUSINESS
AND (B) THE AMOUNT OF ANY CREDIT OR CREDITS TAKEN BY THE UNINCORPORATED
BUSINESS UNDER SECTION 11-503 OF THIS TITLE (EXCEPT THE CREDIT ALLOWED
BY SUBDIVISION (B) OF SECTION 11-503 OF THIS TITLE) FOR ITS TAXABLE YEAR
ENDING WITHIN OR WITH THE TAXABLE YEAR OF THE CORPORATION, TO THE EXTENT
THAT SUCH CREDITS DO NOT REDUCE SUCH UNINCORPORATED BUSINESS'S TAX BELOW
ZERO, AND (II) A FRACTION, THE NUMERATOR OF WHICH IS THE NET TOTAL OF
THE CORPORATION'S DISTRIBUTIVE SHARE OF INCOME, GAIN, LOSS AND
DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, THE UNINCORPORATED BUSINESS
FOR SUCH TAXABLE YEAR, AND THE DENOMINATOR OF WHICH IS THE SUM, FOR SUCH
TAXABLE YEAR, OF THE NET TOTAL DISTRIBUTIVE SHARES OF INCOME, GAIN, LOSS
AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS TO, ALL PARTNERS IN THE UNIN-
A. 6009 136
CORPORATED BUSINESS FOR WHOM OR WHICH SUCH NET TOTAL (AS SEPARATELY
DETERMINED FOR EACH PARTNER) IS GREATER THAN ZERO.
(2) THE AMOUNT DETERMINED IN THIS SUBPARAGRAPH IS THE PRODUCT OF (I)
THE EXCESS OF (A) THE TAX COMPUTED UNDER CLAUSE (I) OF SUBPARAGRAPH ONE
OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, WITHOUT ALLOWANCE
OF ANY CREDITS ALLOWED BY THIS SECTION, OVER (B) THE TAX SO COMPUTED,
DETERMINED AS IF THE CORPORATION HAD NO SUCH DISTRIBUTIVE SHARE OR GUAR-
ANTEED PAYMENTS WITH RESPECT TO THE UNINCORPORATED BUSINESS, AND (II) A
FRACTION, THE NUMERATOR OF WHICH IS FOUR AND THE DENOMINATOR OF WHICH IS
EIGHT AND EIGHTY-FIVE ONE HUNDREDTHS, PROVIDED HOWEVER, IN THE CASE OF A
TAXPAYER THAT IS SUBJECT TO PARAGRAPH (J) OR (K) OF SUBDIVISION ONE OF
THIS SECTION, SUCH DENOMINATOR SHALL BE THE RATE OF TAX AS DETERMINED BY
SUCH PARAGRAPH (J) OR (K) FOR THE TAXABLE YEAR AND, PROVIDED, HOWEVER,
THAT THE AMOUNTS COMPUTED IN SUBCLAUSES (A) AND (B) OF CLAUSE (I) OF
THIS SUBPARAGRAPH SHALL BE COMPUTED WITH THE FOLLOWING MODIFICATIONS:
(A) SUCH AMOUNTS SHALL BE COMPUTED WITHOUT TAKING INTO ACCOUNT ANY
CARRYFORWARD OR CARRYBACK BY THE PARTNER OF A NET OPERATING LOSS OR A
PRIOR NET OPERATION LOSS CONVERSION SUBTRACTION;
(B) IF, PRIOR TO TAKING INTO ACCOUNT ANY DISTRIBUTIVE SHARE OR GUARAN-
TEED PAYMENTS FROM ANY UNINCORPORATED BUSINESS OR ANY NET OPERATING LOSS
CARRYFORWARD OR CARRYBACK, THE ENTIRE NET INCOME OF THE PARTNER IS LESS
THAN ZERO, SUCH ENTIRE NET INCOME SHALL BE TREATED AS ZERO; AND
(C) IF SUCH PARTNER'S NET TOTAL DISTRIBUTIVE SHARE OF INCOME, GAIN,
LOSS AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, ANY UNINCORPORATED
BUSINESS IS LESS THAN ZERO, SUCH NET TOTAL SHALL BE TREATED AS ZERO. THE
AMOUNT DETERMINED IN THIS SUBPARAGRAPH SHALL NOT BE LESS THAN ZERO.
(B)(1) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN PARAGRAPH (A) OF
THIS SUBDIVISION, IN THE CASE OF A CORPORATION THAT, BEFORE THE APPLICA-
TION OF THIS SUBDIVISION OR ANY OTHER CREDIT ALLOWED BY THIS SECTION, IS
LIABLE FOR THE TAX ON BUSINESS INCOME UNDER CLAUSE (I) OF SUBPARAGRAPH
ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, THE CREDIT OR
THE SUM OF THE CREDITS THAT MAY BE TAKEN BY SUCH CORPORATION FOR A TAXA-
BLE YEAR UNDER THIS SUBDIVISION WITH RESPECT TO AN UNINCORPORATED BUSI-
NESS OR UNINCORPORATED BUSINESSES IN WHICH IT IS A PARTNER SHALL NOT
EXCEED THE TAX SO COMPUTED, WITHOUT ALLOWANCE OF ANY CREDITS ALLOWED BY
THIS SECTION, MULTIPLIED BY A FRACTION THE NUMERATOR OF WHICH IS FOUR
AND THE DENOMINATOR OF WHICH IS EIGHT AND EIGHTY-FIVE ONE-HUNDREDTHS
PROVIDED HOWEVER, IN THE CASE OF A TAXPAYER THAT IS SUBJECT TO PARAGRAPH
(J) OR (K) OF SUBDIVISION ONE OF THIS SECTION, SUCH DENOMINATOR SHALL BE
THE RATE OF TAX AS DETERMINED BY SUCH PARAGRAPH (J) OR (K) FOR THE TAXA-
BLE YEAR. IF THE CREDIT ALLOWED UNDER THIS SUBDIVISION OR THE SUM OF
SUCH CREDITS EXCEEDS THE PRODUCT OF SUCH TAX AND SUCH FRACTION, THE
AMOUNT OF THE EXCESS MAY BE CARRIED FORWARD, IN ORDER, TO EACH OF THE
SEVEN IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO THE EXTENT NOT PREVI-
OUSLY TAKEN, SHALL BE ALLOWED AS A CREDIT IN EACH OF SUCH YEARS. IN
APPLYING THE PROVISIONS OF THE PRECEDING SENTENCE, THE CREDIT DETERMINED
FOR THE TAXABLE YEAR UNDER PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE
TAKEN BEFORE TAKING ANY CREDIT CARRYFORWARD PURSUANT TO THIS PARAGRAPH
AND THE CREDIT CARRYFORWARD ATTRIBUTABLE TO THE EARLIEST TAXABLE YEAR
SHALL BE TAKEN BEFORE TAKING A CREDIT CARRYFORWARD ATTRIBUTABLE TO A
SUBSEQUENT TAXABLE YEAR.
(2) INTENTIONALLY OMITTED.
(2-A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE
CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS RECEIVED, IN A TAXABLE YEAR
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE CREDIT SET
FORTH IN SUBDIVISION EIGHTEEN OF SECTION 11-604 OF THIS CHAPTER OR
A. 6009 137
SECTION 11-643.8 OF THIS CHAPTER FOR A TAX PAID UNDER CHAPTER FIVE OF
THIS TITLE IN A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND FIFTEEN, THE TAXPAYER MAY CARRY FORWARD THE UNUSED PORTION OF SUCH
CREDIT UNDER THIS SUBDIVISION TO ANY TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND FIFTEEN IN THE SAME AMOUNT AND TO THE SAME
EXTENT, INCLUDING THE SAME LIMITATIONS, THAT THE CREDIT, OR THE UNUSED
PORTION THEREOF, WOULD HAVE BEEN ALLOWED TO BE CARRIED FORWARD UNDER
SUBPARAGRAPH ONE OF PARAGRAPH (B) OF SUBDIVISION EIGHTEEN OF SECTION
11-604 OF THIS CHAPTER OR PARAGRAPH ONE OF SUBDIVISION (B) OF SECTION
11-643.8 OF THIS CHAPTER, AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO
THOUSAND FOURTEEN, IF SUCH SUBDIVISION CONTINUED TO APPLY TO THE TAXPAY-
ER FOR SUCH TAXABLE YEAR.
(3) NO CREDIT ALLOWED UNDER THIS SUBDIVISION MAY BE TAKEN IN A TAXABLE
YEAR BY A TAXPAYER THAT, IN THE ABSENCE OF SUCH CREDIT, WOULD BE LIABLE
FOR THE TAX COMPUTED ON THE BASIS OF BUSINESS CAPITAL UNDER CLAUSE (II)
OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION
OR THE FIXED-DOLLAR MINIMUM TAX UNDER CLAUSE (IV) OF SUBPARAGRAPH ONE OF
PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION.
(C) FOR CORPORATIONS THAT FILE A REPORT ON A COMBINED BASIS PURSUANT
TO SECTION 11-654.3 OF THIS SUBCHAPTER, THE CREDIT ALLOWED BY THIS
SUBDIVISION SHALL BE COMPUTED AS IF THE COMBINED GROUP WERE THE PARTNER
IN EACH UNINCORPORATED BUSINESS FROM WHICH ANY OF THE MEMBERS OF SUCH
GROUP HAD A DISTRIBUTIVE SHARE OR GUARANTEED PAYMENTS, PROVIDED, HOWEV-
ER, IF MORE THAN ONE MEMBER OF THE COMBINED GROUP IS A PARTNER IN THE
SAME UNINCORPORATED BUSINESS, FOR PURPOSES OF THE CALCULATION REQUIRED
IN SUBPARAGRAPH ONE OF PARAGRAPH (A) OF THIS SUBDIVISION, THE NUMERATOR
OF THE FRACTION DESCRIBED IN CLAUSE (II) OF SUCH SUBPARAGRAPH ONE SHALL
BE THE SUM OF THE NET TOTAL DISTRIBUTIVE SHARES OF INCOME, GAIN, LOSS
AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, THE UNINCORPORATED
BUSINESS OF ALL OF THE PARTNERS OF THE UNINCORPORATED BUSINESS WITHIN
THE COMBINED GROUP FOR WHICH SUCH NET TOTAL (AS SEPARATELY DETERMINED
FOR EACH PARTNER) IS GREATER THAN ZERO, AND THE DENOMINATOR OF SUCH
FRACTION SHALL BE THE SUM OF THE NET TOTAL DISTRIBUTIVE SHARES OF
INCOME, GAIN, LOSS AND DEDUCTIONS OF, AND GUARANTEED PAYMENTS FROM, THE
UNINCORPORATED BUSINESS OF ALL PARTNERS IN THE UNINCORPORATED BUSINESS
FOR WHOM OR WHICH SUCH NET TOTAL (AS SEPARATELY DETERMINED FOR EACH
PARTNER) IS GREATER THAN ZERO.
(D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBCHAPTER, THE CREDIT
ALLOWABLE UNDER THIS SUBDIVISION SHALL BE TAKEN PRIOR TO THE TAKING OF
ANY OTHER CREDIT ALLOWED BY THIS SECTION. NOTWITHSTANDING ANY OTHER
PROVISION OF THIS SUBCHAPTER, THE APPLICATION OF THIS SUBDIVISION SHALL
NOT CHANGE THE BASIS ON WHICH THE TAXPAYER'S TAX IS COMPUTED UNDER PARA-
GRAPH (E) OF SUBDIVISION ONE OF THIS SECTION.
19. LOWER MANHATTAN RELOCATION AND EMPLOYMENT ASSISTANCE CREDIT. (A)
IN ADDITION TO ANY OTHER CREDIT ALLOWED BY THIS SECTION, A TAXPAYER THAT
HAS OBTAINED THE CERTIFICATIONS REQUIRED BY CHAPTER SIX-C OF TITLE TWEN-
TY-TWO OF THIS CODE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
THIS SUBCHAPTER. THE AMOUNT OF THE CREDIT SHALL BE THE AMOUNT DETERMINED
BY MULTIPLYING THREE THOUSAND DOLLARS BY THE NUMBER OF ELIGIBLE AGGRE-
GATE EMPLOYMENT SHARES MAINTAINED BY THE TAXPAYER DURING THE TAXABLE
YEAR WITH RESPECT TO ELIGIBLE PREMISES TO WHICH THE TAXPAYER HAS RELO-
CATED; PROVIDED, HOWEVER, THAT NO CREDIT SHALL BE ALLOWED FOR THE RELO-
CATION OF ANY RETAIL ACTIVITY OR HOTEL SERVICES; PROVIDED, FURTHER, THAT
NO CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION TO ANY TAXPAYER THAT
HAS ELECTED PURSUANT TO SUBDIVISION (D) OF SECTION 22-624 OF THIS CODE
TO TAKE SUCH CREDIT AGAINST A GROSS RECEIPTS TAX IMPOSED UNDER CHAPTER
A. 6009 138
ELEVEN OF THIS TITLE. FOR PURPOSES OF THIS SUBDIVISION, THE TERMS
"ELIGIBLE AGGREGATE EMPLOYMENT SHARES," "ELIGIBLE PREMISES," "RELOCATE,"
"RETAIL ACTIVITY" AND "HOTEL SERVICES" SHALL HAVE THE MEANINGS ASCRIBED
BY SECTION 22-623 OF THIS CODE.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO ELIGIBLE
AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH RESPECT TO ELIGIBLE PREMISES
TO WHICH THE TAXPAYER HAS RELOCATED SHALL BE ALLOWED FOR THE TAXABLE
YEAR OF THE RELOCATION AND FOR ANY OF THE TWELVE SUCCEEDING TAXABLE
YEARS DURING WHICH ELIGIBLE AGGREGATE EMPLOYMENT SHARES ARE MAINTAINED
WITH RESPECT TO ELIGIBLE PREMISES; PROVIDED THAT THE CREDIT ALLOWED FOR
THE TWELFTH SUCCEEDING TAXABLE YEAR SHALL BE CALCULATED BY MULTIPLYING
THE NUMBER OF ELIGIBLE AGGREGATE EMPLOYMENT SHARES MAINTAINED WITH
RESPECT TO ELIGIBLE PREMISES IN THE TWELFTH SUCCEEDING TAXABLE YEAR BY
THE LESSER OF ONE AND A FRACTION THE NUMERATOR OF WHICH IS SUCH NUMBER
OF DAYS IN THE TAXABLE YEAR OF RELOCATION LESS THE NUMBER OF DAYS THE
TAXPAYER MAINTAINED EMPLOYMENT SHARES IN ELIGIBLE PREMISES IN THE TAXA-
BLE YEAR OF RELOCATION AND THE DENOMINATOR OF WHICH IS THE NUMBER OF
DAYS IN SUCH TWELFTH TAXABLE YEAR DURING WHICH SUCH ELIGIBLE AGGREGATE
EMPLOYMENT SHARES ARE MAINTAINED WITH RESPECT TO SUCH PREMISES.
(C) EXCEPT AS PROVIDED IN PARAGRAPH (D) OF THIS SUBDIVISION, IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR EXCEEDS THE TAX IMPOSED FOR SUCH YEAR, THE EXCESS MAY BE CARRIED
OVER, IN ORDER, TO THE FIVE IMMEDIATELY SUCCEEDING TAXABLE YEARS AND, TO
THE EXTENT NOT PREVIOUSLY DEDUCTIBLE, MAY BE DEDUCTED FROM THE TAXPAY-
ER'S TAX FOR SUCH YEARS.
(D) THE CREDITS ALLOWED UNDER THIS SUBDIVISION, AGAINST THE TAX
IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR OF THE RELOCATION AND FOR
THE FOUR TAXABLE YEARS IMMEDIATELY SUCCEEDING THE TAXABLE YEAR OF SUCH
RELOCATION, SHALL BE DEEMED TO BE OVERPAYMENTS OF TAX BY THE TAXPAYER TO
BE CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 11-677 OF THIS CHAPTER. FOR SUCH TAXABLE YEARS,
SUCH CREDITS OR PORTIONS THEREOF MAY NOT BE CARRIED OVER TO ANY SUCCEED-
ING TAXABLE YEAR.
(E) THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION SHALL BE DEDUCTED
AFTER THE CREDITS ALLOWED BY SUBDIVISIONS SEVENTEEN AND EIGHTEEN OF THIS
SECTION, BUT PRIOR TO THE DEDUCTION OF ANY OTHER CREDIT ALLOWED BY THIS
SECTION.
(F) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE
CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS OBTAINED, PURSUANT TO CHAP-
TER SIX-C OF TITLE TWENTY-TWO OF THIS CODE, A CERTIFICATION OF ELIGIBIL-
ITY AND HAS RECEIVED, IN A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST,
TWO THOUSAND FIFTEEN, THE CREDIT SET FORTH IN SUBDIVISION NINETEEN OF
SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.9 OF THIS CHAPTER FOR
THE RELOCATION OF AN ELIGIBLE BUSINESS, A CREDIT SHALL BE ALLOWED UNDER
THIS SUBDIVISION TO THE TAXPAYER FOR ANY TAXABLE YEAR BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN IN THE SAME AMOUNT AND TO THE
SAME EXTENT THAT A CREDIT WOULD HAVE BEEN ALLOWED UNDER SUBDIVISION
NINETEEN OF SECTION 11-604 OF THIS CHAPTER OR SECTION 11-643.9 OF THIS
CHAPTER, AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN,
IF SUCH SUBDIVISION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE
YEAR.
20. INTENTIONALLY OMITTED.
21. BIOTECHNOLOGY CREDIT. (A) (1) A TAXPAYER THAT IS A QUALIFIED
EMERGING TECHNOLOGY COMPANY, ENGAGES IN BIOTECHNOLOGIES, AND MEETS THE
ELIGIBILITY REQUIREMENTS OF THIS SUBDIVISION, SHALL BE ALLOWED A CREDIT
AGAINST THE TAX IMPOSED BY THIS SUBCHAPTER. THE AMOUNT OF CREDIT SHALL
A. 6009 139
BE EQUAL TO THE SUM OF THE AMOUNTS SPECIFIED IN SUBPARAGRAPHS THREE,
FOUR AND FIVE OF THIS PARAGRAPH, SUBJECT TO THE LIMITATIONS IN SUBPARA-
GRAPH SEVEN OF THIS PARAGRAPH AND PARAGRAPH (B) OF THIS SUBDIVISION. FOR
THE PURPOSES OF THIS SUBDIVISION, "QUALIFIED EMERGING TECHNOLOGY COMPA-
NY" SHALL MEAN A COMPANY LOCATED IN THE CITY: (I) WHOSE PRIMARY PRODUCTS
OR SERVICES ARE CLASSIFIED AS EMERGING TECHNOLOGIES AND WHOSE TOTAL
ANNUAL PRODUCT SALES ARE TEN MILLION DOLLARS OR LESS; OR (II) A COMPANY
THAT HAS RESEARCH AND DEVELOPMENT ACTIVITIES IN THE CITY AND WHOSE RATIO
OF RESEARCH AND DEVELOPMENT FUNDS TO NET SALES EQUALS OR EXCEEDS THE
AVERAGE RATIO FOR ALL SURVEYED COMPANIES CLASSIFIED AS DETERMINED BY THE
NATIONAL SCIENCE FOUNDATION IN THE MOST RECENT PUBLISHED RESULTS FROM
ITS SURVEY OF INDUSTRY RESEARCH AND DEVELOPMENT, OR ANY COMPARABLE
SUCCESSOR SURVEY AS DETERMINED BY THE DEPARTMENT OF FINANCE, AND WHOSE
TOTAL ANNUAL PRODUCT SALES ARE TEN MILLION DOLLARS OR LESS. FOR THE
PURPOSES OF THIS SUBDIVISION, THE DEFINITION OF RESEARCH AND DEVELOPMENT
FUNDS SHALL BE THE SAME AS THAT USED BY THE NATIONAL SCIENCE FOUNDATION
IN THE AFOREMENTIONED SURVEY. FOR THE PURPOSES OF THIS SUBDIVISION,
"BIOTECHNOLOGIES" SHALL MEAN THE TECHNOLOGIES INVOLVING THE SCIENTIFIC
MANIPULATION OF LIVING ORGANISMS, ESPECIALLY AT THE MOLECULAR AND/OR THE
SUB-MOLECULAR GENETIC LEVEL, TO PRODUCE PRODUCTS CONDUCIVE TO IMPROVING
THE LIVES AND HEALTH OF PLANTS, ANIMALS, AND HUMANS; AND THE ASSOCIATED
SCIENTIFIC RESEARCH, PHARMACOLOGICAL, MECHANICAL, AND COMPUTATIONAL
APPLICATIONS AND SERVICES CONNECTED WITH THESE IMPROVEMENTS. ACTIVITIES
INCLUDED WITH SUCH APPLICATIONS AND SERVICES SHALL INCLUDE, BUT NOT BE
LIMITED TO, ALTERNATIVE MRNA SPLICING, DNA SEQUENCE AMPLIFICATION, ANTI-
GENETIC SWITCHING BIOAUGMENTATION, BIOENRICHMENT, BIOREMEDIATION, CHRO-
MOSOME WALKING, CYTOGENETIC ENGINEERING, DNA DIAGNOSIS, FINGERPRINTING,
AND SEQUENCING, ELECTROPORATION, GENE TRANSLOCATION, GENETIC MAPPING,
SITE-DIRECTED MUTAGENESIS, BIO-TRANSDUCTION, BIO-MECHANICAL AND BIO-E-
LECTRICAL ENGINEERING, AND BIO-INFORMATICS.
(2) AN ELIGIBLE TAXPAYER SHALL (I) HAVE NO MORE THAN ONE HUNDRED
FULL-TIME EMPLOYEES, OF WHICH AT LEAST SEVENTY-FIVE PERCENT ARE EMPLOYED
IN THE CITY, (II) HAVE A RATIO OF RESEARCH AND DEVELOPMENT FUNDS TO NET
SALES, AS REFERRED TO IN SECTION THIRTY-ONE HUNDRED TWO-E OF THE PUBLIC
AUTHORITIES LAW, WHICH EQUALS OR EXCEEDS SIX PERCENT DURING THE CALENDAR
YEAR ENDING WITH OR WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS
CLAIMED, AND (III) HAVE GROSS REVENUES, ALONG WITH THE GROSS REVENUES OF
ITS "AFFILIATES" AND "RELATED MEMBERS" NOT EXCEEDING TWENTY MILLION
DOLLARS FOR THE CALENDAR YEAR IMMEDIATELY PRECEDING THE CALENDAR YEAR
ENDING WITH OR WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
FOR THE PURPOSES OF THIS SUBDIVISION, "AFFILIATES" SHALL MEAN THOSE
CORPORATIONS THAT ARE MEMBERS OF THE SAME AFFILIATED GROUP (AS DEFINED
IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVENUE CODE) AS THE
TAXPAYER. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "RELATED
MEMBERS" SHALL MEAN A PERSON, CORPORATION, OR OTHER ENTITY, INCLUDING AN
ENTITY THAT IS TREATED AS A PARTNERSHIP OR OTHER PASS-THROUGH VEHICLE
FOR PURPOSES OF FEDERAL TAXATION, WHETHER SUCH PERSON, CORPORATION OR
ENTITY IS A TAXPAYER OR NOT, WHERE ONE SUCH PERSON, CORPORATION OR ENTI-
TY, OR SET OF RELATED PERSONS, CORPORATIONS OR ENTITIES, DIRECTLY OR
INDIRECTLY OWNS OR CONTROLS A CONTROLLING INTEREST IN ANOTHER ENTITY.
SUCH ENTITY OR ENTITIES MAY INCLUDE ALL TAXPAYERS UNDER CHAPTERS FIVE,
ELEVEN AND SEVENTEEN OF THIS TITLE, AND SUBCHAPTERS TWO AND THREE OF
THIS CHAPTER. A CONTROLLING INTEREST SHALL MEAN, IN THE CASE OF A CORPO-
RATION, EITHER THIRTY PERCENT OR MORE OF THE TOTAL COMBINED VOTING POWER
OF ALL CLASSES OF STOCK OF SUCH CORPORATION, OR THIRTY PERCENT OR MORE
OF THE CAPITAL, PROFITS OR BENEFICIAL INTEREST IN SUCH VOTING STOCK OF
A. 6009 140
SUCH CORPORATION; AND IN THE CASE OF A PARTNERSHIP, ASSOCIATION, TRUST
OR OTHER ENTITY, THIRTY PERCENT OR MORE OF THE CAPITAL, PROFITS OR BENE-
FICIAL INTEREST IN SUCH PARTNERSHIP, ASSOCIATION, TRUST OR OTHER ENTITY.
(3) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR EIGHTEEN PER
CENTUM OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF
RESEARCH AND DEVELOPMENT PROPERTY THAT IS ACQUIRED BY THE TAXPAYER BY
PURCHASE AS DEFINED IN SUBSECTION (D) OF SECTION ONE HUNDRED
SEVENTY-NINE OF THE INTERNAL REVENUE CODE AND PLACED IN SERVICE DURING
THE CALENDAR YEAR THAT ENDS WITH OR WITHIN THE TAXABLE YEAR FOR WHICH
THE CREDIT IS CLAIMED. PROVIDED, HOWEVER, FOR THE PURPOSES OF THIS
PARAGRAPH ONLY, AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR SUCH
PERCENTAGE OF THE (I) COST OR OTHER BASIS FOR FEDERAL INCOME TAX
PURPOSES FOR PROPERTY USED IN THE TESTING OR INSPECTION OF MATERIALS AND
PRODUCTS, (II) THE COSTS OR EXPENSES ASSOCIATED WITH QUALITY CONTROL OF
THE RESEARCH AND DEVELOPMENT, (III) FEES FOR USE OF SOPHISTICATED TECH-
NOLOGY FACILITIES AND PROCESSES, AND (IV) FEES FOR THE PRODUCTION OR
EVENTUAL COMMERCIAL DISTRIBUTION OF MATERIALS AND PRODUCTS RESULTING
FROM THE ACTIVITIES OF AN ELIGIBLE TAXPAYER AS LONG AS SUCH ACTIVITIES
FALL UNDER ACTIVITIES RELATING TO BIOTECHNOLOGIES. THE COSTS, EXPENSES
AND OTHER AMOUNTS FOR WHICH A CREDIT IS ALLOWED AND CLAIMED UNDER THIS
PARAGRAPH SHALL NOT BE USED IN THE CALCULATION OF ANY OTHER CREDIT
ALLOWED UNDER THIS SUBCHAPTER. FOR THE PURPOSES OF THIS SUBDIVISION,
"RESEARCH AND DEVELOPMENT PROPERTY" SHALL MEAN PROPERTY THAT IS USED FOR
PURPOSES OF RESEARCH AND DEVELOPMENT IN THE EXPERIMENTAL OR LABORATORY
SENSE. SUCH PURPOSES SHALL NOT BE DEEMED TO INCLUDE THE ORDINARY TESTING
OR INSPECTION OF MATERIALS OR PRODUCTS FOR QUALITY CONTROL, EFFICIENCY
SURVEYS, MANAGEMENT STUDIES, CONSUMER SURVEYS, ADVERTISING, PROMOTIONS,
OR RESEARCH IN CONNECTION WITH LITERARY, HISTORICAL OR SIMILAR PROJECTS.
(4) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR NINE PER CENTUM
OF QUALIFIED RESEARCH EXPENSES PAID OR INCURRED BY THE TAXPAYER IN THE
CALENDAR YEAR THAT ENDS WITH OR WITHIN THE TAXABLE YEAR FOR WHICH THE
CREDIT IS CLAIMED. FOR THE PURPOSES OF THIS SUBDIVISION, "QUALIFIED
RESEARCH EXPENSES" SHALL MEAN EXPENSES ASSOCIATED WITH IN-HOUSE RESEARCH
AND PROCESSES, AND COSTS ASSOCIATED WITH THE DISSEMINATION OF THE
RESULTS OF THE PRODUCTS THAT DIRECTLY RESULT FROM SUCH RESEARCH AND
DEVELOPMENT ACTIVITIES; PROVIDED, HOWEVER, THAT SUCH COSTS SHALL NOT
INCLUDE ADVERTISING OR PROMOTION THROUGH MEDIA. IN ADDITION, COSTS ASSO-
CIATED WITH THE PREPARATION OF PATENT APPLICATIONS, PATENT APPLICATION
FILING FEES, PATENT RESEARCH FEES, PATENT EXAMINATIONS FEES, PATENT POST
ALLOWANCE FEES, PATENT MAINTENANCE FEES, AND GRANT APPLICATION EXPENSES
AND FEES SHALL QUALIFY AS QUALIFIED RESEARCH EXPENSES. IN NO CASE SHALL
THE CREDIT ALLOWED UNDER THIS SUBPARAGRAPH APPLY TO EXPENSES FOR LITI-
GATION OR THE CHALLENGE OF ANOTHER ENTITY'S INTELLECTUAL PROPERTY
RIGHTS, OR FOR CONTRACT EXPENSES INVOLVING OUTSIDE PAID CONSULTANTS.
(5) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT FOR QUALIFIED
HIGH-TECHNOLOGY TRAINING EXPENDITURES AS DESCRIBED IN THIS SUBPARAGRAPH
PAID OR INCURRED BY THE TAXPAYER DURING THE CALENDAR YEAR THAT ENDS WITH
OR WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
(I) THE AMOUNT OF CREDIT SHALL BE ONE HUNDRED PERCENT OF THE TRAINING
EXPENSES DESCRIBED IN CLAUSE (III) OF THIS SUBPARAGRAPH, SUBJECT TO A
LIMITATION OF NO MORE THAN FOUR THOUSAND DOLLARS PER EMPLOYEE PER CALEN-
DAR YEAR FOR SUCH TRAINING EXPENSES.
(II) QUALIFIED HIGH-TECHNOLOGY TRAINING SHALL INCLUDE A COURSE OR
COURSES TAKEN AND SATISFACTORILY COMPLETED BY AN EMPLOYEE OF THE TAXPAY-
ER AT AN ACCREDITED, DEGREE GRANTING POST-SECONDARY COLLEGE OR UNIVERSI-
TY IN THE CITY THAT (A) DIRECTLY RELATES TO BIOTECHNOLOGY ACTIVITIES,
A. 6009 141
AND (B) IS INTENDED TO UPGRADE, RETRAIN OR IMPROVE THE PRODUCTIVITY OR
THEORETICAL AWARENESS OF THE EMPLOYEE. SUCH COURSE OR COURSES MAY
INCLUDE, BUT ARE NOT LIMITED TO, INSTRUCTION OR RESEARCH RELATING TO
TECHNIQUES, META, MACRO, OR MICRO-THEORETICAL OR PRACTICAL KNOWLEDGE
BASES OR FRONTIERS, OR ETHICAL CONCERNS RELATED TO SUCH ACTIVITIES. SUCH
COURSE OR COURSES SHALL NOT INCLUDE CLASSES IN THE DISCIPLINES OF
MANAGEMENT, ACCOUNTING OR THE LAW OR ANY CLASS DESIGNED TO FULFILL THE
DISCIPLINE SPECIFIC REQUIREMENTS OF A DEGREE PROGRAM AT THE ASSOCIATE,
BACCALAUREATE, GRADUATE OR PROFESSIONAL LEVEL OF THESE DISCIPLINES.
SATISFACTORY COMPLETION OF A COURSE OR COURSES SHALL MEAN THE EARNING
AND GRANTING OF CREDIT OR EQUIVALENT UNIT, WITH THE ATTAINMENT OF A
GRADE OF "B" OR HIGHER IN A GRADUATE LEVEL COURSE OR COURSES, A GRADE OF
"C" OR HIGHER IN AN UNDERGRADUATE LEVEL COURSE OR COURSES, OR A SIMILAR
MEASURE OF COMPETENCY FOR A COURSE THAT IS NOT MEASURED ACCORDING TO A
STANDARD GRADE FORMULA.
(III) QUALIFIED HIGH-TECHNOLOGY TRAINING EXPENDITURES SHALL INCLUDE
EXPENSES FOR TUITION AND MANDATORY FEES, SOFTWARE REQUIRED BY THE INSTI-
TUTION, FEES FOR TEXTBOOKS OR OTHER LITERATURE REQUIRED BY THE INSTITU-
TION OFFERING THE COURSE OR COURSES, MINUS APPLICABLE SCHOLARSHIPS AND
TUITION OR FEE WAIVERS NOT GRANTED BY THE TAXPAYER OR ANY AFFILIATES OF
THE TAXPAYER, THAT ARE PAID OR REIMBURSED BY THE TAXPAYER. QUALIFIED
HIGH-TECHNOLOGY EXPENDITURES DO NOT INCLUDE ROOM AND BOARD, COMPUTER
HARDWARE OR SOFTWARE NOT SPECIFICALLY ASSIGNED FOR SUCH COURSE OR COURS-
ES, LATE-CHARGES, FINES OR MEMBERSHIP DUES AND SIMILAR EXPENSES. SUCH
QUALIFIED EXPENDITURES SHALL NOT BE ELIGIBLE FOR THE CREDIT PROVIDED BY
THIS SECTION UNLESS THE EMPLOYEE FOR WHOM THE EXPENDITURES ARE DISBURSED
IS CONTINUOUSLY EMPLOYED BY THE TAXPAYER IN A FULL-TIME, FULL-YEAR POSI-
TION PRIMARILY LOCATED AT A QUALIFIED SITE DURING THE PERIOD OF SUCH
COURSEWORK AND LASTING THROUGH AT LEAST ONE HUNDRED EIGHTY DAYS AFTER
THE SATISFACTORY COMPLETION OF THE QUALIFYING COURSE-WORK. QUALIFIED
HIGH-TECHNOLOGY TRAINING EXPENDITURES SHALL NOT INCLUDE EXPENSES FOR
IN-HOUSE OR SHARED TRAINING OUTSIDE OF A CITY HIGHER EDUCATION INSTITU-
TION OR THE USE OF CONSULTANTS OUTSIDE OF CREDIT GRANTING COURSES,
WHETHER SUCH CONSULTANTS FUNCTION INSIDE OF SUCH HIGHER EDUCATION INSTI-
TUTION OR NOT.
(IV) IF A TAXPAYER RELOCATES FROM AN ACADEMIC BUSINESS INCUBATOR
FACILITY PARTNERED WITH AN ACCREDITED POST-SECONDARY EDUCATION INSTITU-
TION LOCATED WITHIN THE CITY, WHICH PROVIDES SPACE AND BUSINESS SUPPORT
SERVICES TO TAXPAYERS, TO ANOTHER SITE, THE CREDIT PROVIDED IN THIS
SUBDIVISION SHALL BE ALLOWED FOR ALL EXPENDITURES REFERENCED IN CLAUSE
(III) OF THIS SUBPARAGRAPH PAID OR INCURRED IN THE TWO PRECEDING CALEN-
DAR YEARS THAT THE TAXPAYER WAS LOCATED IN SUCH AN INCUBATOR FACILITY
FOR EMPLOYEES OF THE TAXPAYER WHO ALSO RELOCATE FROM SAID INCUBATOR
FACILITY TO SUCH CITY SITE AND ARE EMPLOYED AND PRIMARILY LOCATED BY THE
TAXPAYER IN THE CITY. SUCH EXPENDITURES IN THE TWO PRECEDING YEARS
SHALL BE ADDED TO THE AMOUNTS OTHERWISE QUALIFYING FOR THE CREDIT
PROVIDED BY THIS SUBDIVISION THAT WERE PAID OR INCURRED IN THE CALENDAR
YEAR THAT THE TAXPAYER RELOCATES FROM SUCH A FACILITY. SUCH EXPENDITURES
SHALL INCLUDE EXPENSES PAID FOR AN ELIGIBLE EMPLOYEE WHO IS A FULL-TIME,
FULL-YEAR EMPLOYEE OF SAID TAXPAYER DURING THE CALENDAR YEAR THAT THE
TAXPAYER RELOCATED FROM AN INCUBATOR FACILITY NOTWITHSTANDING (A) THAT
SUCH EMPLOYEE WAS EMPLOYED FULL OR PART-TIME AS AN OFFICER, STAFF-PERSON
OR PAID INTERN OF THE TAXPAYER WHEN SUCH TAXPAYER WAS LOCATED AT SUCH
INCUBATOR FACILITY OR (B) THAT SUCH EMPLOYEE WAS NOT CONTINUOUSLY
EMPLOYED WHEN SUCH TAXPAYER WAS LOCATED AT THE INCUBATOR FACILITY DURING
THE ONE HUNDRED EIGHTY DAY PERIOD REFERRED TO IN CLAUSE (III) OF THIS
A. 6009 142
SUBPARAGRAPH, PROVIDED SUCH EMPLOYEE RECEIVED WAGES OR EQUIVALENT INCOME
FOR AT LEAST SEVEN HUNDRED FIFTY HOURS DURING ANY TWENTY-FOUR MONTH
PERIOD WHEN THE TAXPAYER WAS LOCATED AT THE INCUBATOR FACILITY. SUCH
EXPENDITURES SHALL INCLUDE PAYMENTS MADE TO SUCH EMPLOYEE AFTER THE
TAXPAYER HAS RELOCATED FROM THE INCUBATOR FACILITY FOR QUALIFIED EXPEND-
ITURES IF SUCH PAYMENTS ARE MADE TO REIMBURSE AN EMPLOYEE FOR EXPENDI-
TURES PAID BY THE EMPLOYEE DURING SUCH TWO PRECEDING YEARS. THE CREDIT
PROVIDED UNDER THIS PARAGRAPH SHALL BE ALLOWED IN ANY TAXABLE YEAR THAT
THE TAXPAYER QUALIFIES AS AN ELIGIBLE TAXPAYER.
(V) FOR PURPOSES OF THIS SUBDIVISION THE TERM "ACADEMIC YEAR" SHALL
MEAN THE ANNUAL PERIOD OF SESSIONS OF A POST-SECONDARY COLLEGE OR
UNIVERSITY.
(VI) FOR THE PURPOSES OF THIS SUBDIVISION THE TERM "ACADEMIC INCUBATOR
FACILITY" SHALL MEAN A FACILITY PROVIDING LOW-COST SPACE, TECHNICAL
ASSISTANCE, SUPPORT SERVICES AND EDUCATIONAL OPPORTUNITIES, INCLUDING
BUT NOT LIMITED TO CENTRAL SERVICES PROVIDED BY THE MANAGER OF THE
FACILITY TO THE TENANTS OF THE FACILITY, TO AN ENTITY LOCATED IN THE
CITY. SUCH ENTITY'S PRIMARY ACTIVITY MUST BE IN BIOTECHNOLOGIES, AND
SUCH ENTITY MUST BE IN THE FORMATIVE STAGE OF DEVELOPMENT. THE ACADEMIC
INCUBATOR FACILITY AND THE ENTITY MUST ACT IN PARTNERSHIP WITH AN
ACCREDITED POST-SECONDARY COLLEGE OR UNIVERSITY LOCATED IN THE CITY. AN
ACADEMIC INCUBATOR FACILITY'S MISSION SHALL BE TO PROMOTE JOB CREATION,
ENTREPRENEURSHIP, TECHNOLOGY TRANSFER, AND PROVIDE SUPPORT SERVICES TO
INCUBATOR TENANTS, INCLUDING, BUT NOT LIMITED TO, BUSINESS PLANNING,
MANAGEMENT ASSISTANCE, FINANCIAL-PACKAGING, LINKAGES TO FINANCING
SERVICES, AND COORDINATING WITH OTHER SOURCES OF ASSISTANCE.
(6) AN ELIGIBLE TAXPAYER MAY CLAIM CREDITS UNDER THIS SUBDIVISION FOR
THREE CONSECUTIVE YEARS. IN NO CASE SHALL THE CREDIT ALLOWED BY THIS
SUBDIVISION TO A TAXPAYER EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS PER
CALENDAR YEAR FOR ELIGIBLE EXPENDITURES MADE DURING SUCH CALENDAR YEAR.
(7) 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 CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI-
VISION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT OF CREDIT
ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 11-677 OF THIS CHAPTER;
PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE PROVISIONS OF SECTION 11-679
OF THIS CHAPTER, NO INTEREST SHALL BE PAID THEREON.
(8) THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL ONLY BE ALLOWED
FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN.
(B) (1) THE PERCENTAGE OF THE CREDIT ALLOWED TO A TAXPAYER UNDER THIS
SUBDIVISION IN ANY CALENDAR YEAR SHALL BE:
(I) IF THE AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL TIME BY A
TAXPAYER IN THE CITY DURING THE CALENDAR YEAR THAT ENDS WITH OR WITHIN
THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS AT LEAST ONE HUNDRED
FIVE PERCENT OF THE TAXPAYER'S BASE YEAR EMPLOYMENT, ONE HUNDRED
PERCENT, EXCEPT THAT IN NO CASE SHALL THE CREDIT ALLOWED UNDER THIS
CLAUSE EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS PER CALENDAR YEAR.
PROVIDED, HOWEVER, THE INCREASE IN BASE YEAR EMPLOYMENT SHALL NOT APPLY
TO A TAXPAYER ALLOWED A CREDIT UNDER THIS SUBDIVISION THAT WAS, (A)
LOCATED OUTSIDE OF THE CITY, (B) NOT DOING BUSINESS, OR (C) DID NOT HAVE
ANY EMPLOYEES, IN THE YEAR PRECEDING THE FIRST YEAR THAT THE CREDIT IS
CLAIMED. ANY SUCH TAXPAYER SHALL BE ELIGIBLE FOR ONE HUNDRED PERCENT OF
THE CREDIT FOR THE FIRST CALENDAR YEAR THAT ENDS WITH OR WITHIN THE
A. 6009 143
TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED, PROVIDED THAT SUCH TAXPAY-
ER LOCATES IN THE CITY, BEGINS DOING BUSINESS IN THE CITY OR HIRES
EMPLOYEES IN THE CITY DURING SUCH CALENDAR YEAR AND IS OTHERWISE ELIGI-
BLE FOR THE CREDIT PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION.
(II) IF THE AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL TIME BY A
TAXPAYER IN THE CITY DURING THE CALENDAR YEAR THAT ENDS WITH OR WITHIN
THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS LESS THAN ONE
HUNDRED FIVE PERCENT OF THE TAXPAYER'S BASE YEAR EMPLOYMENT, FIFTY
PERCENT, EXCEPT THAT IN NO CASE SHALL THE CREDIT ALLOWED UNDER THIS
CLAUSE EXCEED ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS PER CALENDAR
YEAR. IN THE CASE OF AN ENTITY LOCATED IN THE CITY RECEIVING SPACE AND
BUSINESS SUPPORT SERVICES BY AN ACADEMIC INCUBATOR FACILITY, IF THE
AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL TIME BY SUCH ENTITY IN THE
CITY DURING THE CALENDAR YEAR IN WHICH THE CREDIT ALLOWED UNDER THIS
SUBDIVISION IS CLAIMED IS LESS THAN ONE HUNDRED FIVE PERCENT OF THE
TAXPAYER'S BASE YEAR EMPLOYMENT, THE CREDIT SHALL BE ZERO.
(2) FOR THE PURPOSES OF THIS SUBDIVISION, "BASE YEAR EMPLOYMENT" MEANS
THE AVERAGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME BY THE TAXPAYER IN
THE CITY IN THE YEAR PRECEDING THE FIRST CALENDAR YEAR THAT ENDS WITH OR
WITHIN THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
(3) FOR THE PURPOSES OF THIS SUBDIVISION, AVERAGE NUMBER OF INDIVID-
UALS EMPLOYED FULL-TIME SHALL BE COMPUTED BY ADDING THE NUMBER OF SUCH
INDIVIDUALS EMPLOYED BY THE TAXPAYER AT THE END OF EACH QUARTER DURING
EACH CALENDAR YEAR OR OTHER APPLICABLE PERIOD AND DIVIDING THE SUM SO
OBTAINED BY THE NUMBER OF SUCH QUARTERS OCCURRING WITHIN SUCH CALENDAR
YEAR OR OTHER APPLICABLE PERIOD.
(4) NOTWITHSTANDING ANYTHING CONTAINED IN THIS SECTION TO THE CONTRA-
RY, THE CREDIT PROVIDED BY THIS SUBDIVISION SHALL BE ALLOWED AGAINST THE
TAXES AUTHORIZED BY THIS CHAPTER FOR THE TAXABLE YEAR AFTER REDUCTION BY
ALL OTHER CREDITS PERMITTED BY THIS CHAPTER.
(C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION TO THE
CONTRARY, IN THE CASE OF A TAXPAYER THAT HAS RECEIVED, IN A TAXABLE YEAR
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, THE CREDIT SET
FORTH IN SUBDIVISION TWENTY-ONE OF SECTION 11-604 OF THIS CHAPTER FOR AN
ELIGIBLE ACQUISITION OF PROPERTY AND/OR EXPENSE PAID OR INCURRED, A
CREDIT SHALL BE ALLOWED TO THE TAXPAYER UNDER THIS SUBDIVISION FOR ANY
TAX YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN IN
THE SAME AMOUNT AND TO THE SAME EXTENT THAT A CREDIT WOULD HAVE BEEN
ALLOWED UNDER SUBDIVISION TWENTY-ONE OF SECTION 11-604 OF THIS CHAPTER,
AS IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, IF SUCH
SUBDIVISION CONTINUED TO APPLY TO THE TAXPAYER FOR SUCH TAXABLE YEAR.
S 11-654.1 NET OPERATING LOSS. 1. IN COMPUTING THE BUSINESS INCOME
SUBJECT TO TAX, TAXPAYERS SHALL BE ALLOWED BOTH A PRIOR NET OPERATING
LOSS CONVERSION SUBTRACTION UNDER SUBDIVISION TWO OF THIS SECTION AND A
NET OPERATING LOSS DEDUCTION UNDER SUBDIVISION THREE OF THIS SECTION.
THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION COMPUTED UNDER
SUBDIVISION TWO OF THIS SECTION SHALL BE APPLIED AGAINST BUSINESS INCOME
BEFORE THE NET OPERATING LOSS DEDUCTION COMPUTED UNDER SUBDIVISION THREE
OF THIS SECTION.
2. PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION. (A) DEFINITIONS.
(1) "BASE YEAR" MEANS THE LAST TAXABLE YEAR BEGINNING ON OR AFTER JANU-
ARY FIRST, TWO THOUSAND FOURTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND
FIFTEEN.
(2) "UNABSORBED NET OPERATING LOSS" MEANS THE UNABSORBED PORTION OF
NET OPERATING LOSS AS CALCULATED UNDER PARAGRAPH (F) OF SUBDIVISION
EIGHT OF SECTION 11-602 OF THIS CHAPTER OR SUBDIVISION (K-1) OF SECTION
A. 6009 144
11-641 OF THIS CHAPTER AS SUCH SECTIONS WERE IN EFFECT ON DECEMBER THIR-
TY-FIRST, TWO THOUSAND FOURTEEN, THAT WAS NOT DEDUCTIBLE IN PREVIOUS
TAXABLE YEARS AND WAS ELIGIBLE FOR CARRYOVER ON THE LAST DAY OF THE BASE
YEAR SUBJECT TO THE LIMITATIONS FOR DEDUCTION UNDER SUCH SECTIONS,
INCLUDING ANY NET OPERATING LOSS SUSTAINED BY THE TAXPAYER DURING THE
BASE YEAR.
(3) "BASE YEAR BAP" MEANS THE TAXPAYER'S BUSINESS ALLOCATION PERCENT-
AGE AS CALCULATED UNDER PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION
11-604 OF THIS CHAPTER FOR THE BASE YEAR, OR THE TAXPAYER'S ALLOCATION
PERCENTAGE AS CALCULATED UNDER SECTION 11-642 OF THIS CHAPTER FOR
PURPOSES OF CALCULATING ENTIRE NET INCOME FOR THE BASE YEAR, AS SUCH
SECTIONS WERE IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN.
(4) "BASE YEAR TAX RATE" MEANS THE TAXPAYER'S TAX RATE FOR THE BASE
YEAR AS CALCULATED UNDER SUBDIVISION ONE OF SECTION 11-604 OF THIS CHAP-
TER OR SECTION 11-643.5 OF THIS CHAPTER, AS SUCH PROVISIONS WERE IN
EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN.
(B) THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION SHALL BE
CALCULATED AS FOLLOWS:
(1) THE TAXPAYER SHALL FIRST CALCULATE THE TAX VALUE OF ITS UNABSORBED
NET OPERATING LOSS FOR THE BASE YEAR. THE VALUE IS EQUAL TO THE PRODUCT
OF (I) THE AMOUNT OF THE TAXPAYER'S UNABSORBED NET OPERATING LOSS, (II)
THE TAXPAYER'S BASE YEAR BAP, AND (III) THE TAXPAYER'S BASE YEAR TAX
RATE.
(2) THE PRODUCT DETERMINED UNDER SUBPARAGRAPH ONE OF THIS PARAGRAPH
SHALL THEN BE DIVIDED BY EIGHT AND EIGHTY-FIVE ONE HUNDREDTHS PER
CENTUM. THIS RESULT SHALL EQUAL THE TAXPAYER'S PRIOR NET OPERATING LOSS
CONVERSION SUBTRACTION POOL.
(3) THE TAXPAYER'S PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION FOR
THE TAXABLE YEAR SHALL EQUAL ONE-TENTH OF ITS PRIOR NET OPERATING LOSS
CONVERSION SUBTRACTION POOL, PLUS ANY AMOUNT OF UNUSED PRIOR NET OPERAT-
ING LOSS CONVERSION SUBTRACTION FROM PRECEDING TAXABLE YEARS.
(4) IN LIEU OF THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION
DESCRIBED IN SUBPARAGRAPH THREE OF THIS PARAGRAPH, IF THE TAXPAYER SO
ELECTS, THE TAXPAYER'S PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION
FOR ITS TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
FIFTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN SHALL EQUAL, IN
EACH YEAR, NOT MORE THAN ONE-HALF OF ITS PRIOR NET OPERATING LOSS
CONVERSION SUBTRACTION POOL UNTIL THE POOL IS EXHAUSTED. IF THE POOL IS
NOT EXHAUSTED AT THE END OF SUCH TIME PERIOD, THE REMAINDER OF THE POOL
SHALL BE FORFEITED. THE TAXPAYER SHALL MAKE SUCH ELECTION ON ITS FIRST
RETURN FOR THE TAX YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND FIFTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN BY THE DUE
DATE FOR SUCH RETURN (DETERMINED WITH REGARD TO EXTENSIONS).
(C) (1) WHERE A TAXPAYER WAS PROPERLY INCLUDED OR REQUIRED TO BE
INCLUDED IN A COMBINED REPORT FOR THE BASE YEAR PURSUANT TO SUBDIVISION
FOUR OF SECTION 11-605 OF THIS CHAPTER OR A COMBINED RETURN FOR THE BASE
YEAR UNDER SUBDIVISION (F) OF SECTION 11-646 OF THIS CHAPTER, AS SUCH
SECTIONS WERE IN EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN,
AND THE MEMBERS OF THE COMBINED GROUP FOR THE BASE YEAR ARE THE SAME AS
THE MEMBERS OF THE COMBINED GROUP FOR THE TAXABLE YEAR IMMEDIATELY
SUCCEEDING THE BASE YEAR, THE COMBINED GROUP SHALL CALCULATE ITS PRIOR
NET OPERATING LOSS CONVERSION SUBTRACTION POOL USING THE COMBINED
GROUP'S TOTAL UNABSORBED NET OPERATING LOSS, BASE YEAR BAP, AND BASE
YEAR TAX RATE.
(2) IF A COMBINED GROUP INCLUDES ADDITIONAL MEMBERS IN THE TAXABLE
YEAR IMMEDIATELY SUCCEEDING THE BASE YEAR THAT WERE NOT INCLUDED IN THE
A. 6009 145
COMBINED GROUP DURING THE BASE YEAR, EACH BASE YEAR COMBINED GROUP AND
EACH TAXPAYER THAT FILED SEPARATELY FOR THE BASE YEAR BUT IS INCLUDED IN
THE COMBINED GROUP IN THE TAXABLE YEAR SUCCEEDING THE BASE YEAR SHALL
CALCULATE ITS PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION POOL, AND
THE SUM OF THE POOLS SHALL BE THE COMBINED PRIOR NET OPERATING LOSS
CONVERSION SUBTRACTION POOL OF THE COMBINED GROUP.
(3) IF A TAXPAYER WAS PROPERLY INCLUDED IN A COMBINED REPORT FOR THE
BASE YEAR AND FILES A SEPARATE REPORT FOR A SUBSEQUENT TAXABLE YEAR,
THEN THE AMOUNT OF REMAINING PRIOR NET OPERATING LOSS CONVERSION
SUBTRACTION ALLOWED TO THE TAXPAYER FILING SUCH SEPARATE REPORT SHALL BE
PROPORTIONATE TO THE AMOUNT THAT SUCH TAXPAYER CONTRIBUTED TO THE PRIOR
NET OPERATING LOSS CONVERSION SUBTRACTION POOL ON A COMBINED BASIS, AND
THE REMAINING PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION ALLOWED TO
THE REMAINING MEMBERS OF THE COMBINED GROUP SHALL BE REDUCED ACCORDING-
LY.
(4) IF A TAXPAYER FILED A SEPARATE REPORT FOR THE BASE YEAR AND IS
PROPERLY INCLUDED IN A COMBINED REPORT FOR A SUBSEQUENT TAXABLE YEAR,
THEN THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION POOL OF THE
COMBINED GROUP SHALL BE INCREASED BY THE AMOUNT OF THE REMAINING PRIOR
NET OPERATING LOSS CONVERSION SUBTRACTION ALLOWED TO THE TAXPAYER AT THE
TIME THE TAXPAYER IS PROPERLY INCLUDED IN THE COMBINED GROUP.
(D) THE PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION MAY BE USED TO
REDUCE THE TAXPAYER'S TAX ON ALLOCATED BUSINESS INCOME TO THE HIGHER OF
THE TAX ON CAPITAL UNDER CLAUSE (II) OF SUBPARAGRAPH ONE OF PARAGRAPH
(E) OF SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER OR THE FIXED
DOLLAR MINIMUM UNDER CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF
SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER. UNLESS THE TAXPAY-
ER HAS MADE THE ELECTION PROVIDED FOR IN SUBPARAGRAPH FOUR OF PARAGRAPH
(B) OF THIS SUBDIVISION, ANY AMOUNT OF UNUSED PRIOR NET OPERATING LOSS
CONVERSION SUBTRACTION SHALL BE CARRIED FORWARD TO A SUBSEQUENT TAX YEAR
OR SUBSEQUENT TAX YEARS UNTIL THE PRIOR NET OPERATING LOSS CONVERSION
SUBTRACTION POOL IS EXHAUSTED, BUT FOR NO LONGER THAN TWENTY TAXABLE
YEARS OR NOT AFTER THE TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND THIRTY-FIVE BUT BEFORE JANUARY FIRST, TWO THOUSAND THIRTY-
SIX, WHICHEVER COMES FIRST. SUCH AMOUNT CARRIED FORWARD SHALL NOT BE
SUBJECT TO THE ONE-TENTH LIMITATION FOR THE SUBSEQUENT TAX YEAR OR YEARS
UNDER SUBPARAGRAPH THREE OF PARAGRAPH (B) OF THIS SUBDIVISION. HOWEVER,
IF THE TAXPAYER ELECTS TO COMPUTE ITS PRIOR NET OPERATING LOSS CONVER-
SION SUBTRACTION PURSUANT TO SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF THIS
SUBDIVISION, THE TAXPAYER SHALL NOT CARRY FORWARD ANY UNUSED AMOUNT OF
SUCH PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION TO ANY TAX YEAR
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN.
3. IN COMPUTING BUSINESS INCOME, A NET OPERATING LOSS DEDUCTION SHALL
BE ALLOWED. A NET OPERATING LOSS DEDUCTION SHALL BE THE AMOUNT OF NET
OPERATING LOSS OR LOSSES FROM ONE OR MORE TAXABLE YEARS THAT ARE CARRIED
FORWARD OR CARRIED BACK TO A PARTICULAR TAXABLE YEAR. A NET OPERATING
LOSS SHALL BE THE AMOUNT OF A BUSINESS LOSS INCURRED IN A PARTICULAR TAX
YEAR MULTIPLIED BY THE BUSINESS ALLOCATION PERCENTAGE FOR THAT YEAR AS
DETERMINED UNDER SUBDIVISION THREE OF SECTION 11-654 OF THIS SUBCHAPTER.
THE MAXIMUM NET OPERATING LOSS DEDUCTION THAT IS ALLOWED IN A TAXABLE
YEAR SHALL BE THE AMOUNT THAT REDUCES THE TAXPAYER'S TAX ON ALLOCATED
BUSINESS INCOME TO THE HIGHER OF THE TAX ON CAPITAL OR THE FIXED DOLLAR
MINIMUM AMOUNT. SUCH NET OPERATING LOSS DEDUCTION AND NET OPERATING LOSS
SHALL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING:
(A) SUCH NET OPERATING LOSS DEDUCTION SHALL NOT BE LIMITED TO THE
AMOUNT ALLOWED UNDER SECTION ONE HUNDRED SEVENTY-TWO OF THE INTERNAL
A. 6009 146
REVENUE CODE OR THE AMOUNT THAT WOULD HAVE BEEN ALLOWED IF THE TAXPAYER
DID NOT HAVE AN ELECTION UNDER SUBCHAPTER S OF CHAPTER ONE OF THE INTER-
NAL REVENUE CODE IN EFFECT FOR THE APPLICABLE TAX YEAR.
(B) SUCH NET OPERATING LOSS DEDUCTION SHALL NOT INCLUDE ANY NET OPER-
ATING LOSS INCURRED DURING ANY TAXABLE YEAR BEGINNING PRIOR TO JANUARY
FIRST, TWO THOUSAND FIFTEEN, OR DURING ANY TAXABLE YEAR IN WHICH THE
TAXPAYER WAS NOT SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER.
(C) A TAXPAYER THAT FILES AS PART OF A FEDERAL CONSOLIDATED RETURN BUT
ON A SEPARATE BASIS FOR PURPOSES OF THIS SUBCHAPTER SHALL COMPUTE ITS
DEDUCTION AND LOSS AS IF IT WERE FILING ON A SEPARATE BASIS FOR FEDERAL
INCOME TAX PURPOSES.
(D) A NET OPERATING LOSS MAY BE CARRIED BACK THREE TAXABLE YEARS
PRECEDING THE TAXABLE YEAR OF THE LOSS EXCEPT THAT NO LOSS MAY BE
CARRIED BACK TO A TAXABLE YEAR BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND FIFTEEN. THE LOSS FIRST SHALL BE CARRIED TO THE EARLIEST OF THE
THREE TAXABLE YEARS PRECEDING THE TAXABLE YEAR OF THE LOSS. IF IT IS NOT
ENTIRELY USED IN THAT YEAR, IT SHALL BE CARRIED TO THE SECOND TAXABLE
YEAR PRECEDING THE TAXABLE YEAR OF THE LOSS, AND ANY REMAINING AMOUNT
SHALL BE CARRIED TO THE TAXABLE YEAR IMMEDIATELY PRECEDING THE TAXABLE
YEAR OF THE LOSS. ANY UNUSED AMOUNT OF LOSS THEN REMAINING MAY BE
CARRIED FORWARD FOR AS MANY AS TWENTY TAXABLE YEARS FOLLOWING THE TAXA-
BLE YEAR OF THE LOSS. LOSSES CARRIED FORWARD ARE CARRIED FORWARD FIRST
TO THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE TAXABLE YEAR OF THE LOSS,
THEN TO THE SECOND TAXABLE YEAR FOLLOWING THE TAXABLE YEAR OF THE LOSS,
AND THEN TO THE NEXT IMMEDIATELY SUBSEQUENT TAXABLE YEAR OR YEARS UNTIL
THE LOSS IS USED UP OR THE TWENTIETH TAXABLE YEAR FOLLOWING THE LOSS
YEAR, WHICHEVER COMES FIRST.
(E) SUCH NET OPERATING LOSS DEDUCTION SHALL NOT INCLUDE ANY NET OPER-
ATING LOSS INCURRED DURING ANY YEAR COMMENCING AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN IF THE TAXPAYER WAS SUBJECT TO TAX UNDER SUBCHAPTER TWO
OR THREE OF THIS CHAPTER IN THAT YEAR; PROVIDED, HOWEVER, ANY YEAR
COMMENCING AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN THAT THE TAXPAYER
WAS SUBJECT TO TAX UNDER SUBCHAPTER TWO OR THREE OF THIS CHAPTER IN THAT
YEAR MUST BE TREATED AS A TAXABLE YEAR FOR PURPOSES OF DETERMINING THE
NUMBER OF TAXABLE YEARS TO WHICH A NET OPERATING LOSS MAY BE CARRIED
FORWARD.
(F) WHERE THERE ARE TWO OR MORE ALLOCATED NET OPERATING LOSSES, OR
PORTIONS THEREOF, CARRIED BACK OR CARRIED FORWARD TO BE DEDUCTED IN ONE
PARTICULAR TAX YEAR FROM ALLOCATED BUSINESS INCOME, THE EARLIEST ALLO-
CATED LOSS INCURRED MUST BE APPLIED FIRST.
(G) A TAXPAYER MAY ELECT TO WAIVE THE ENTIRE CARRYBACK PERIOD WITH
RESPECT TO A NET OPERATING LOSS. SUCH ELECTION MUST BE MADE ON THE
TAXPAYER'S ORIGINAL TIMELY FILED RETURN (DETERMINED WITH REGARD TO
EXTENSIONS) FOR THE TAXABLE YEAR OF THE NET OPERATING LOSS FOR WHICH THE
ELECTION IS TO BE IN EFFECT. ONCE AN ELECTION IS MADE FOR A TAXABLE
YEAR, IT SHALL BE IRREVOCABLE FOR THAT TAXABLE YEAR. A SEPARATE ELECTION
MUST BE MADE FOR EACH TAXABLE YEAR OF THE LOSS. THIS ELECTION APPLIES TO
ALL MEMBERS OF A COMBINED GROUP.
S 11-654.2 RECEIPTS APPORTIONMENT. 1. THE PERCENTAGE OF RECEIPTS OF
THE TAXPAYER TO BE ALLOCATED TO THE CITY FOR PURPOSES OF SUBPARAGRAPH
TWO OF PARAGRAPH (A) OF SUBDIVISION THREE OF SECTION 11-654 OF THIS
SUBCHAPTER SHALL BE EQUAL TO THE RECEIPTS FRACTION DETERMINED PURSUANT
TO THIS SECTION. THE RECEIPTS FRACTION IS A FRACTION, DETERMINED BY
INCLUDING ONLY THOSE RECEIPTS, NET INCOME, NET GAINS, AND OTHER ITEMS
DESCRIBED IN THIS SECTION THAT ARE INCLUDED IN THE COMPUTATION OF THE
TAXPAYER'S BUSINESS INCOME (DETERMINED WITHOUT REGARD TO THE MODIFICA-
A. 6009 147
TION PROVIDED IN SUBPARAGRAPH FOURTEEN OF PARAGRAPH (A) OF SUBDIVISION
EIGHT OF SECTION 11-652 OF THIS SUBCHAPTER) FOR THE TAXABLE YEAR. THE
NUMERATOR OF THE RECEIPTS FRACTION SHALL BE EQUAL TO THE SUM OF ALL THE
AMOUNTS REQUIRED TO BE INCLUDED IN THE NUMERATOR PURSUANT TO THE
PROVISIONS OF THIS SECTION AND THE DENOMINATOR OF THE RECEIPTS FRACTION
SHALL BE EQUAL TO THE SUM OF ALL THE AMOUNTS REQUIRED TO BE INCLUDED IN
THE DENOMINATOR PURSUANT TO THE PROVISIONS OF THIS SECTION.
2. (A) RECEIPTS FROM SALES OF TANGIBLE PERSONAL PROPERTY WHERE SHIP-
MENTS ARE MADE TO POINTS WITHIN THE CITY OR THE DESTINATION OF THE PROP-
ERTY IS A POINT WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR OF
THE RECEIPTS FRACTION. RECEIPTS FROM SALES OF TANGIBLE PERSONAL PROPERTY
WHERE SHIPMENTS ARE MADE TO POINTS WITHIN AND WITHOUT THE CITY OR THE
DESTINATION IS WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN THE
DENOMINATOR OF THE RECEIPTS FRACTION.
(B) RECEIPTS FROM SALES OF ELECTRICITY DELIVERED TO POINTS WITHIN THE
CITY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION.
RECEIPTS FROM SALES OF ELECTRICITY DELIVERED TO POINTS WITHIN AND WITH-
OUT THE CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC-
TION.
(C) RECEIPTS FROM SALES OF TANGIBLE PERSONAL PROPERTY AND ELECTRICITY
THAT ARE TRADED AS COMMODITIES AS THE TERM "COMMODITY" IS DEFINED IN
SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE SHALL BE
INCLUDED IN THE RECEIPTS FRACTION IN ACCORDANCE WITH CLAUSE (I) OF
SUBPARAGRAPH TWO OF PARAGRAPH (A) OF SUBDIVISION FIVE OF THIS SECTION.
(D) NET GAINS (NOT LESS THAN ZERO) FROM THE SALES OF REAL PROPERTY
LOCATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR OF THE
RECEIPTS FRACTION. NET GAINS (NOT LESS THAN ZERO) FROM THE SALES OF REAL
PROPERTY LOCATED WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN THE
DENOMINATOR OF THE RECEIPTS FRACTION.
3. (A) RECEIPTS FROM RENTALS OF REAL AND TANGIBLE PERSONAL PROPERTY
LOCATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR OF THE
RECEIPTS FRACTION. RECEIPTS FROM RENTALS OF REAL AND TANGIBLE PERSONAL
PROPERTY LOCATED WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN THE
DENOMINATOR OF THE RECEIPTS FRACTION.
(B) RECEIPTS OF ROYALTIES FROM THE USE OF PATENTS, COPYRIGHTS, TRADE-
MARKS, AND SIMILAR INTANGIBLE PERSONAL PROPERTY WITHIN THE CITY SHALL BE
INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS OF ROYAL-
TIES FROM THE USE OF PATENTS, COPYRIGHTS, TRADEMARKS, AND SIMILAR INTAN-
GIBLE PERSONAL PROPERTY WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN
THE DENOMINATOR OF THE RECEIPTS FRACTION. A PATENT, COPYRIGHT, TRADE-
MARK, OR SIMILAR INTANGIBLE PERSONAL PROPERTY IS USED WITHIN THE CITY TO
THE EXTENT THAT THE ACTIVITIES THEREUNDER ARE CARRIED ON WITHIN THE
CITY.
(C) RECEIPTS FROM THE SALES OF RIGHTS FOR CLOSED-CIRCUIT AND CABLE
TELEVISION TRANSMISSIONS OF AN EVENT (OTHER THAN EVENTS OCCURRING ON A
REGULARLY SCHEDULED BASIS) TAKING PLACE WITHIN THE CITY AS A RESULT OF
THE RENDITION OF SERVICES BY EMPLOYEES OF THE CORPORATION, AS ATHLETES,
ENTERTAINERS OR PERFORMING ARTISTS, SHALL BE INCLUDED IN THE NUMERATOR
OF THE RECEIPTS FRACTION TO THE EXTENT THAT SUCH RECEIPTS ARE ATTRIBUT-
ABLE TO SUCH TRANSMISSIONS RECEIVED OR EXHIBITED WITHIN THE CITY.
RECEIPTS FROM ALL SALES OF RIGHTS FOR CLOSED-CIRCUIT AND CABLE TELE-
VISION TRANSMISSIONS OF AN EVENT SHALL BE INCLUDED IN THE DENOMINATOR OF
THE RECEIPTS FRACTION.
4. (A) FOR PURPOSES OF DETERMINING THE RECEIPTS FRACTION UNDER THIS
SECTION, THE TERM "DIGITAL PRODUCT" MEANS ANY PROPERTY OR SERVICE, OR
COMBINATION THEREOF, OF WHATEVER NATURE DELIVERED TO THE PURCHASER
A. 6009 148
THROUGH THE USE OF WIRE, CABLE, FIBER-OPTIC, LASER, MICROWAVE, RADIO
WAVE, SATELLITE OR SIMILAR SUCCESSOR MEDIA, OR ANY COMBINATION THEREOF.
DIGITAL PRODUCT INCLUDES, BUT IS NOT LIMITED TO, AN AUDIO WORK, AUDI-
OVISUAL WORK, VISUAL WORK, BOOK OR LITERARY WORK, GRAPHIC WORK, GAME,
INFORMATION OR ENTERTAINMENT SERVICE, STORAGE OF DIGITAL PRODUCTS AND
COMPUTER SOFTWARE BY WHATEVER MEANS DELIVERED. THE TERM "DELIVERED TO"
INCLUDES FURNISHED OR PROVIDED TO OR ACCESSED BY. A DIGITAL PRODUCT
SHALL NOT INCLUDE LEGAL, MEDICAL, ACCOUNTING, ARCHITECTURAL, RESEARCH,
ANALYTICAL, ENGINEERING OR CONSULTING SERVICES PROVIDED BY THE TAXPAYER.
(B) RECEIPTS FROM THE SALE OF, LICENSE TO USE, OR GRANTING OF REMOTE
ACCESS TO DIGITAL PRODUCTS WITHIN THE CITY, DETERMINED ACCORDING TO THE
HIERARCHY OF METHODS SET FORTH IN SUBPARAGRAPHS ONE THROUGH FOUR OF
PARAGRAPH (C) OF THIS SUBDIVISION, SHALL BE INCLUDED IN THE NUMERATOR OF
THE RECEIPTS FRACTION. RECEIPTS FROM THE SALE OF, LICENSE TO USE, OR
GRANTING OF REMOTE ACCESS TO DIGITAL PRODUCTS WITHIN AND WITHOUT THE
CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. THE
TAXPAYER MUST EXERCISE DUE DILIGENCE UNDER EACH METHOD DESCRIBED IN
PARAGRAPH (C) OF THIS SUBDIVISION BEFORE REJECTING IT AND PROCEEDING TO
THE NEXT METHOD IN THE HIERARCHY, AND MUST BASE ITS DETERMINATION ON
INFORMATION KNOWN TO THE TAXPAYER OR INFORMATION THAT WOULD BE KNOWN TO
THE TAXPAYER UPON REASONABLE INQUIRY. IF THE RECEIPT FOR A DIGITAL PROD-
UCT IS COMPRISED OF A COMBINATION OF PROPERTY AND SERVICES, IT CANNOT BE
DIVIDED INTO SEPARATE COMPONENTS AND SHALL BE CONSIDERED TO BE ONE
RECEIPT REGARDLESS OF WHETHER IT IS SEPARATELY STATED FOR BILLING
PURPOSES. THE ENTIRE RECEIPT MUST BE ALLOCATED BY THIS HIERARCHY.
(C) THE HIERARCHY OF SOURCING METHODS IS AS FOLLOWS: (1) THE CUSTOM-
ER'S PRIMARY USE LOCATION OF THE DIGITAL PRODUCT; (2) THE LOCATION WHERE
THE DIGITAL PRODUCT IS RECEIVED BY THE CUSTOMER, OR IS RECEIVED BY A
PERSON DESIGNATED FOR RECEIPT BY THE CUSTOMER; (3) THE RECEIPTS FRACTION
DETERMINED PURSUANT TO THIS SUBDIVISION FOR THE PRECEDING TAXABLE YEAR
FOR SUCH DIGITAL PRODUCT; OR (4) THE RECEIPTS FRACTION IN THE CURRENT
TAXABLE YEAR FOR THOSE DIGITAL PRODUCTS THAT CAN BE SOURCED USING THE
HIERARCHY OF SOURCING METHODS IN SUBPARAGRAPHS ONE AND TWO OF THIS PARA-
GRAPH.
5. (A) A FINANCIAL INSTRUMENT IS A "QUALIFIED FINANCIAL INSTRUMENT" IF
IT IS ELIGIBLE OR REQUIRED TO BE MARKED TO MARKET UNDER SECTION FOUR
HUNDRED SEVENTY-FIVE OR SECTION TWELVE HUNDRED FIFTY-SIX OF THE INTERNAL
REVENUE CODE, PROVIDED THAT LOANS SECURED BY REAL PROPERTY SHALL NOT BE
QUALIFIED FINANCIAL INSTRUMENTS. A FINANCIAL INSTRUMENT IS A "NONQUALI-
FIED FINANCIAL INSTRUMENT" IF IT IS NOT A QUALIFIED FINANCIAL INSTRU-
MENT.
(1) IN DETERMINING THE INCLUSION OF RECEIPTS AND NET GAINS FROM QUALI-
FIED FINANCIAL INSTRUMENTS IN THE RECEIPTS FRACTION, TAXPAYERS MAY ELECT
TO USE THE FIXED PERCENTAGE METHOD DESCRIBED IN THIS SUBPARAGRAPH FOR
QUALIFIED FINANCIAL INSTRUMENTS. THE ELECTION IS IRREVOCABLE, APPLIES TO
ALL QUALIFIED FINANCIAL INSTRUMENTS, AND MUST BE MADE ON AN ANNUAL BASIS
ON THE TAXPAYER'S ORIGINAL, TIMELY FILED RETURN. IF THE TAXPAYER ELECTS
THE FIXED PERCENTAGE METHOD, THEN ALL INCOME, GAIN OR LOSS, INCLUDING
MARKED TO MARKET NET GAINS AS DEFINED IN CLAUSE (X) OF SUBPARAGRAPH TWO
OF THIS PARAGRAPH FROM QUALIFIED FINANCIAL INSTRUMENTS CONSTITUTE BUSI-
NESS INCOME, GAIN OR LOSS. IF THE TAXPAYER DOES NOT ELECT TO USE THE
FIXED PERCENTAGE METHOD, THEN RECEIPTS AND NET GAINS ARE INCLUDED IN THE
RECEIPTS FRACTION IN ACCORDANCE WITH THE CUSTOMER SOURCING METHOD
DESCRIBED IN SUBPARAGRAPH TWO OF THIS PARAGRAPH. UNDER THE FIXED
PERCENTAGE METHOD, EIGHT PERCENT OF ALL NET INCOME (NOT LESS THAN ZERO)
FROM QUALIFIED FINANCIAL INSTRUMENTS SHALL BE INCLUDED IN THE NUMERATOR
A. 6009 149
OF THE RECEIPTS FRACTION. ALL NET INCOME (NOT LESS THAN ZERO) FROM QUAL-
IFIED FINANCIAL INSTRUMENTS SHALL BE INCLUDED IN THE DENOMINATOR OF THE
RECEIPTS FRACTION.
(2) RECEIPTS AND NET GAINS FROM QUALIFIED FINANCIAL INSTRUMENTS, IN
CASES WHERE THE TAXPAYER DID NOT ELECT TO USE THE FIXED PERCENTAGE METH-
OD DESCRIBED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH, AND FROM NONQUALI-
FIED FINANCIAL INSTRUMENTS SHALL BE INCLUDED IN THE RECEIPTS FRACTION IN
ACCORDANCE WITH THIS SUBPARAGRAPH. FOR PURPOSES OF THIS PARAGRAPH, AN
INDIVIDUAL IS DEEMED TO BE LOCATED WITHIN THE CITY IF HIS OR HER BILLING
ADDRESS IS WITHIN THE CITY. A BUSINESS ENTITY IS DEEMED TO BE LOCATED
WITHIN THE CITY IF ITS COMMERCIAL DOMICILE IS LOCATED WITHIN THE CITY.
(I)(A) RECEIPTS CONSTITUTING INTEREST FROM LOANS SECURED BY REAL PROP-
ERTY LOCATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR OF THE
RECEIPTS FRACTION. RECEIPTS CONSTITUTING INTEREST FROM LOANS SECURED BY
REAL PROPERTY LOCATED WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN
THE DENOMINATOR OF THE RECEIPTS FRACTION.
(B) RECEIPTS CONSTITUTING INTEREST FROM LOANS NOT SECURED BY REAL
PROPERTY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION IF
THE BORROWER IS LOCATED WITHIN THE CITY. RECEIPTS CONSTITUTING INTEREST
FROM LOANS NOT SECURED BY REAL PROPERTY, WHETHER THE BORROWER IS LOCATED
WITHIN OR WITHOUT THE CITY, SHALL BE INCLUDED IN THE DENOMINATOR OF THE
RECEIPTS FRACTION.
(C) NET GAINS (NOT LESS THAN ZERO) FROM SALES OF LOANS SECURED BY REAL
PROPERTY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION AS
PROVIDED IN THIS SUBCLAUSE. THE AMOUNT OF NET GAINS FROM THE SALES OF
LOANS SECURED BY REAL PROPERTY INCLUDED IN THE NUMERATOR OF THE RECEIPTS
FRACTION SHALL BE DETERMINED BY MULTIPLYING THE NET GAINS BY A FRACTION,
THE NUMERATOR OF WHICH SHALL BE THE AMOUNT OF GROSS PROCEEDS FROM SALES
OF LOANS SECURED BY REAL PROPERTY LOCATED WITHIN THE CITY AND THE DENOM-
INATOR OF WHICH SHALL BE THE GROSS PROCEEDS FROM SALES OF LOANS SECURED
BY REAL PROPERTY LOCATED WITHIN AND WITHOUT THE CITY. GROSS PROCEEDS
SHALL BE DETERMINED AFTER THE DEDUCTION OF ANY COST INCURRED TO ACQUIRE
THE LOANS BUT SHALL NOT BE LESS THAN ZERO. NET GAINS (NOT LESS THAN
ZERO) FROM SALES OF LOANS SECURED BY REAL PROPERTY LOCATED WITHIN AND
WITHOUT THE CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS
FRACTION.
(D) NET GAINS (NOT LESS THAN ZERO) FROM SALES OF LOANS NOT SECURED BY
REAL PROPERTY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC-
TION AS PROVIDED IN THIS SUBCLAUSE. THE AMOUNT OF NET GAINS FROM THE
SALES OF LOANS NOT SECURED BY REAL PROPERTY INCLUDED IN THE NUMERATOR OF
THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLYING THE NET GAINS
BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE AMOUNT OF GROSS
PROCEEDS FROM SALES OF LOANS NOT SECURED BY REAL PROPERTY TO PURCHASERS
LOCATED WITHIN THE CITY AND THE DENOMINATOR OF WHICH SHALL BE THE AMOUNT
OF GROSS PROCEEDS FROM SALES OF LOANS NOT SECURED BY REAL PROPERTY TO
PURCHASERS LOCATED WITHIN AND WITHOUT THE CITY. GROSS PROCEEDS SHALL BE
DETERMINED AFTER THE DEDUCTION OF ANY COST INCURRED TO ACQUIRE THE LOANS
BUT SHALL NOT BE LESS THAN ZERO. NET GAINS (NOT LESS THAN ZERO) FROM
SALES OF LOANS NOT SECURED BY REAL PROPERTY SHALL BE INCLUDED IN THE
DENOMINATOR OF THE RECEIPTS FRACTION.
(E) FOR PURPOSES OF THIS SUBDIVISION, A LOAN IS SECURED BY REAL PROP-
ERTY IF FIFTY PERCENT OR MORE OF THE VALUE OF THE COLLATERAL USED TO
SECURE THE LOAN, WHEN VALUED AT FAIR MARKET VALUE AS OF THE TIME THE
LOAN WAS ENTERED INTO, CONSISTS OF REAL PROPERTY.
(II) FEDERAL, STATE, AND MUNICIPAL DEBT. RECEIPTS CONSTITUTING INTER-
EST AND NET GAINS FROM SALES OF DEBT INSTRUMENTS ISSUED BY THE UNITED
A. 6009 150
STATES, ANY STATE, OR POLITICAL SUBDIVISION OF A STATE SHALL NOT BE
INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS CONSTITUT-
ING INTEREST AND NET GAINS (NOT LESS THAN ZERO) FROM SALES OF DEBT
INSTRUMENTS ISSUED BY THE UNITED STATES AND THE STATE OF NEW YORK OR ITS
POLITICAL SUBDIVISIONS, INCLUDING THE CITY, SHALL BE INCLUDED IN THE
DENOMINATOR OF THE RECEIPTS FRACTION. FIFTY PERCENT OF THE RECEIPTS
CONSTITUTING INTEREST AND NET GAINS (NOT LESS THAN ZERO) FROM SALES OF
DEBT INSTRUMENTS ISSUED BY OTHER STATES OR THEIR POLITICAL SUBDIVISIONS
SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
(III) ASSET BACKED SECURITIES AND OTHER GOVERNMENT AGENCY DEBT. EIGHT
PERCENT OF THE INTEREST INCOME FROM ASSET BACKED SECURITIES OR OTHER
SECURITIES ISSUED BY GOVERNMENT AGENCIES, INCLUDING BUT NOT LIMITED TO
SECURITIES ISSUED BY THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(GNMA), THE FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA), THE FEDERAL
HOME LOAN MORTGAGE CORPORATION (FHLMC), OR THE SMALL BUSINESS ADMINIS-
TRATION, OR EIGHT PERCENT OF THE INTEREST INCOME FROM ASSET BACKED SECU-
RITIES ISSUED BY OTHER ENTITIES SHALL BE INCLUDED IN THE NUMERATOR OF
THE RECEIPTS FRACTION. EIGHT PERCENT OF THE NET GAINS (NOT LESS THAN
ZERO) FROM (A) SALES OF ASSET BACKED SECURITIES OR OTHER SECURITIES
ISSUED BY GOVERNMENT AGENCIES, INCLUDING BUT NOT LIMITED TO SECURITIES
ISSUED BY GNMA, FNMA, FHLMC, OR THE SMALL BUSINESS ADMINISTRATION, OR
(B) SALES OF OTHER ASSET BACKED SECURITIES THAT ARE SOLD THROUGH A
REGISTERED SECURITIES BROKER OR DEALER OR THROUGH A LICENSED EXCHANGE,
SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. THE AMOUNT
OF NET GAINS (NOT LESS THAN ZERO) FROM SALES OF OTHER ASSET BACKED SECU-
RITIES NOT REFERENCED IN SUBCLAUSE (A) OR (B) OF THIS CLAUSE INCLUDED IN
THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLY-
ING SUCH NET GAINS BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE
AMOUNT OF GROSS PROCEEDS FROM SUCH SALES TO PURCHASERS LOCATED IN THE
CITY AND THE DENOMINATOR OF WHICH SHALL BE THE AMOUNT OF GROSS PROCEEDS
FROM SUCH SALES TO PURCHASERS LOCATED WITHIN AND WITHOUT THE CITY.
RECEIPTS CONSTITUTING INTEREST INCOME FROM ASSET BACKED SECURITIES AND
OTHER SECURITIES REFERENCED IN THIS CLAUSE AND NET GAINS (NOT LESS THAN
ZERO) FROM SALES OF ASSET BACKED SECURITIES AND OTHER SECURITIES REFER-
ENCED IN THIS CLAUSE SHALL BE INCLUDED IN THE DENOMINATOR OF THE
RECEIPTS FRACTION. GROSS PROCEEDS SHALL BE DETERMINED AFTER THE
DEDUCTION OF ANY COST TO ACQUIRE THE SECURITIES BUT SHALL NOT BE LESS
THAN ZERO.
(IV) RECEIPTS CONSTITUTING INTEREST FROM CORPORATE BONDS SHALL BE
INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION IF THE COMMERCIAL
DOMICILE OF THE ISSUING CORPORATION IS WITHIN THE CITY. EIGHT PERCENT OF
THE NET GAINS (NOT LESS THAN ZERO) FROM SALES OF CORPORATE BONDS SOLD
THROUGH A REGISTERED SECURITIES BROKER OR DEALER OR THROUGH A LICENSED
EXCHANGE SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION.
THE AMOUNT OF NET GAINS (NOT LESS THAN ZERO) FROM OTHER SALES OF CORPO-
RATE BONDS INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE
DETERMINED BY MULTIPLYING SUCH NET GAINS BY A FRACTION, THE NUMERATOR OF
WHICH IS THE AMOUNT OF GROSS PROCEEDS FROM SUCH SALES TO PURCHASERS
LOCATED WITHIN THE CITY AND THE DENOMINATOR OF WHICH IS THE AMOUNT OF
GROSS PROCEEDS FROM SALES TO PURCHASERS LOCATED WITHIN AND WITHOUT THE
CITY. RECEIPTS CONSTITUTING INTEREST FROM CORPORATE BONDS, WHETHER THE
ISSUING CORPORATION'S COMMERCIAL DOMICILE IS WITHIN OR WITHOUT THE CITY,
AND NET GAINS (NOT LESS THAN ZERO) FROM SALES OF CORPORATE BONDS TO
PURCHASERS WITHIN AND WITHOUT THE CITY SHALL BE INCLUDED IN THE DENOMI-
NATOR OF THE RECEIPTS FRACTION. GROSS PROCEEDS SHALL BE DETERMINED AFTER
A. 6009 151
THE DEDUCTION OF ANY COST TO ACQUIRE THE BONDS BUT SHALL NOT BE LESS
THAN ZERO.
(V) EIGHT PERCENT OF NET INTEREST INCOME (NOT LESS THAN ZERO) FROM
REVERSE REPURCHASE AGREEMENTS AND SECURITIES BORROWING AGREEMENTS SHALL
BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. NET INTEREST
INCOME (NOT LESS THAN ZERO) FROM REVERSE REPURCHASE AGREEMENTS AND SECU-
RITIES BORROWING AGREEMENTS SHALL BE INCLUDED IN THE DENOMINATOR OF THE
RECEIPTS FRACTION. NET INTEREST INCOME FROM REVERSE REPURCHASE AGREE-
MENTS AND SECURITIES BORROWING AGREEMENTS SHALL BE DETERMINED FOR
PURPOSES OF THIS SUBDIVISION AFTER THE DEDUCTION OF THE INTEREST EXPENSE
FROM THE TAXPAYER'S REPURCHASE AGREEMENTS AND SECURITIES LENDING AGREE-
MENTS BUT SHALL NOT BE LESS THAN ZERO. FOR THIS CALCULATION, THE AMOUNT
OF SUCH INTEREST EXPENSE SHALL BE THE INTEREST EXPENSE ASSOCIATED WITH
THE SUM OF THE VALUE OF THE TAXPAYER'S REPURCHASE AGREEMENTS WHERE IT IS
THE SELLER/BORROWER PLUS THE VALUE OF THE TAXPAYER'S SECURITIES LENDING
AGREEMENTS WHERE IT IS THE SECURITIES LENDER, PROVIDED SUCH SUM IS
LIMITED TO THE SUM OF THE VALUE OF THE TAXPAYER'S REVERSE REPURCHASE
AGREEMENTS WHERE IT IS THE PURCHASER/LENDER PLUS THE VALUE OF THE
TAXPAYER'S SECURITIES LENDING AGREEMENTS WHERE IT IS THE SECURITIES
BORROWER.
(VI) EIGHT PERCENT OF THE NET INTEREST (NOT LESS THAN ZERO) FROM
FEDERAL FUNDS SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC-
TION. THE NET INTEREST (NOT LESS THAN ZERO) FROM FEDERAL FUNDS SHALL BE
INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION. NET INTEREST FROM
FEDERAL FUNDS SHALL BE DETERMINED AFTER DEDUCTION OF INTEREST EXPENSE
FROM FEDERAL FUNDS.
(VII) DIVIDENDS FROM STOCK, NET GAINS (NOT LESS THAN ZERO) FROM SALES
OF STOCK AND NET GAINS (NOT LESS THAN ZERO) FROM SALES OF PARTNERSHIP
INTERESTS SHALL NOT BE INCLUDED IN EITHER THE NUMERATOR OR DENOMINATOR
OF THE RECEIPTS FRACTION UNLESS THE COMMISSIONER OF FINANCE DETERMINES
PURSUANT TO SUBDIVISION ELEVEN OF THIS SECTION THAT INCLUSION OF SUCH
DIVIDENDS AND NET GAINS (NOT LESS THAN ZERO) IS NECESSARY TO PROPERLY
REFLECT THE BUSINESS INCOME OR CAPITAL OF THE TAXPAYER.
(VIII)(A) RECEIPTS CONSTITUTING INTEREST FROM OTHER FINANCIAL INSTRU-
MENTS SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION IF THE
PAYOR IS LOCATED WITHIN THE CITY. RECEIPTS CONSTITUTING INTEREST FROM
OTHER FINANCIAL INSTRUMENTS, WHETHER THE PAYOR IS WITHIN OR WITHOUT THE
CITY, SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
(B) NET GAINS (NOT LESS THAN ZERO) FROM SALES OF OTHER FINANCIAL
INSTRUMENTS AND OTHER INCOME (NOT LESS THAN ZERO) FROM OTHER FINANCIAL
INSTRUMENTS WHERE THE PURCHASER OR PAYOR IS LOCATED WITHIN THE CITY
SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION, PROVIDED
THAT, IF THE PURCHASER OR PAYOR IS A REGISTERED SECURITIES BROKER OR
DEALER OR THE TRANSACTION IS MADE THROUGH A LICENSED EXCHANGE, THEN
EIGHT PERCENT OF THE NET GAINS (NOT LESS THAN ZERO) OR OTHER INCOME (NOT
LESS THAN ZERO) SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC-
TION. NET GAINS (NOT LESS THAN ZERO) FROM SALES OF OTHER FINANCIAL
INSTRUMENTS AND OTHER INCOME (NOT LESS THAN ZERO) FROM OTHER FINANCIAL
INSTRUMENTS SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC-
TION.
(IX) NET INCOME (NOT LESS THAN ZERO) FROM SALES OF PHYSICAL COMMOD-
ITIES SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION AS
PROVIDED IN THIS CLAUSE. THE AMOUNT OF NET INCOME FROM SALES OF PHYS-
ICAL COMMODITIES INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION
SHALL BE DETERMINED BY MULTIPLYING THE NET INCOME FROM SALES OF PHYSICAL
COMMODITIES BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE AMOUNT OF
A. 6009 152
RECEIPTS FROM SALES OF PHYSICAL COMMODITIES ACTUALLY DELIVERED TO POINTS
WITHIN THE CITY OR, IF THERE IS NO ACTUAL DELIVERY OF THE PHYSICAL
COMMODITY, SOLD TO PURCHASERS LOCATED WITHIN THE CITY, AND THE DENOMINA-
TOR OF WHICH SHALL BE THE AMOUNT OF RECEIPTS FROM SALES OF PHYSICAL
COMMODITIES ACTUALLY DELIVERED TO POINTS WITHIN AND WITHOUT THE CITY OR,
IF THERE IS NO ACTUAL DELIVERY OF THE PHYSICAL COMMODITY, SOLD TO
PURCHASERS LOCATED WITHIN AND WITHOUT THE CITY. NET INCOME (NOT LESS
THAN ZERO) FROM SALES OF PHYSICAL COMMODITIES SHALL BE INCLUDED IN THE
DENOMINATOR OF THE RECEIPTS FRACTION. NET INCOME (NOT LESS THAN ZERO)
FROM SALES OF PHYSICAL COMMODITIES SHALL BE DETERMINED AFTER THE
DEDUCTION OF THE COST TO ACQUIRE OR PRODUCE THE PHYSICAL COMMODITIES.
(X)(A) FOR PURPOSES OF THIS SUBDIVISION, "MARKED TO MARKET" MEANS THAT
A FINANCIAL INSTRUMENT IS, UNDER SECTION FOUR HUNDRED SEVENTY-FIVE OR
SECTION TWELVE HUNDRED FIFTY-SIX OF THE INTERNAL REVENUE CODE, TREATED
BY THE TAXPAYER AS SOLD FOR ITS FAIR MARKET VALUE ON THE LAST BUSINESS
DAY OF THE TAXPAYER'S TAXABLE YEAR. "MARKED TO MARKET GAIN OR LOSS"
MEANS THE GAIN OR LOSS RECOGNIZED BY THE TAXPAYER UNDER SECTION FOUR
HUNDRED SEVENTY-FIVE OR SECTION TWELVE HUNDRED FIFTY-SIX OF THE INTERNAL
REVENUE CODE BECAUSE THE FINANCIAL INSTRUMENT IS TREATED AS SOLD FOR ITS
FAIR MARKET VALUE ON THE LAST BUSINESS DAY OF THE TAXPAYER'S TAXABLE
YEAR.
(B) THE AMOUNT OF MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM
EACH TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET INCLUDED IN
THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLY-
ING THE MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM SUCH TYPE
OF FINANCIAL INSTRUMENT BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE
THE NUMERATOR OF THE RECEIPTS FRACTION FOR THAT TYPE OF FINANCIAL
INSTRUMENT DETERMINED UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH
AND THE DENOMINATOR OF WHICH SHALL BE THE DENOMINATOR OF THE RECEIPTS
FRACTION FOR NET GAINS FROM THAT TYPE OF FINANCIAL INSTRUMENT DETERMINED
UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH. MARKED TO MARKET NET
GAINS (NOT LESS THAN ZERO) FROM FINANCIAL INSTRUMENTS FOR WHICH THE
NUMERATOR OF THE RECEIPTS FRACTION FOR NET GAINS IS DETERMINED UNDER THE
IMMEDIATELY PRECEDING SENTENCE SHALL BE INCLUDED IN THE DENOMINATOR OF
THE RECEIPTS FRACTION.
(C) IF THE TYPE OF FINANCIAL INSTRUMENT THAT IS MARKED TO MARKET IS
NOT OTHERWISE SOURCED BY THE TAXPAYER UNDER THIS SUBPARAGRAPH, OR IF THE
TAXPAYER HAS A NET LOSS FROM THE SALES OF THAT TYPE OF FINANCIAL INSTRU-
MENT UNDER THE APPLICABLE CLAUSE OF THIS SUBPARAGRAPH, THE AMOUNT OF
MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FROM THAT TYPE OF FINAN-
CIAL INSTRUMENT INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL
BE DETERMINED BY MULTIPLYING THE MARKED TO MARKET NET GAINS (BUT NOT
LESS THAN ZERO) FROM THAT TYPE OF FINANCIAL INSTRUMENT BY A FRACTION,
THE NUMERATOR OF WHICH SHALL BE THE SUM OF THE AMOUNT OF RECEIPTS
INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION UNDER CLAUSES (I)
THROUGH (IX) OF THIS SUBPARAGRAPH AND SUBCLAUSE (B) OF THIS CLAUSE, AND
THE DENOMINATOR OF WHICH SHALL BE THE SUM OF THE AMOUNT OF RECEIPTS
INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION UNDER CLAUSES (I)
THROUGH (IX) OF THIS SUBPARAGRAPH AND SUBCLAUSE (B) OF THIS CLAUSE.
MARKED TO MARKET NET GAINS (NOT LESS THAN ZERO) FOR WHICH THE AMOUNT TO
BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION IS DETERMINED
UNDER THE IMMEDIATELY PRECEDING SENTENCE SHALL BE INCLUDED IN THE DENOM-
INATOR OF THE RECEIPTS FRACTION.
(B) RECEIPTS OF A REGISTERED SECURITIES BROKER OR DEALER FROM SECURI-
TIES OR COMMODITIES BROKER OR DEALER ACTIVITIES DESCRIBED IN THIS PARA-
GRAPH SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY AS DESCRIBED IN
A. 6009 153
SUBPARAGRAPHS ONE THROUGH EIGHT OF THIS PARAGRAPH. RECEIPTS FROM SUCH
ACTIVITIES GENERATED WITHIN THE CITY SHALL BE INCLUDED IN THE NUMERATOR
OF THE RECEIPTS FRACTION. RECEIPTS FROM SUCH ACTIVITIES GENERATED WITHIN
AND WITHOUT THE CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE
RECEIPTS FRACTION. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "SECURI-
TIES" SHALL HAVE THE SAME MEANING AS IN PARAGRAPH TWO OF SUBSECTION (C)
OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL REVENUE CODE AND
THE TERM "COMMODITIES" SHALL HAVE THE SAME MEANING AS IN PARAGRAPH TWO
OF SUBSECTION (E) OF SECTION FOUR HUNDRED SEVENTY-FIVE OF THE INTERNAL
REVENUE CODE.
(1) RECEIPTS CONSTITUTING BROKERAGE COMMISSIONS DERIVED FROM THE
EXECUTION OF SECURITIES OR COMMODITIES PURCHASE OR SALES ORDERS FOR THE
ACCOUNTS OF CUSTOMERS SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY IF
THE MAILING ADDRESS IN THE RECORDS OF THE TAXPAYER OF THE CUSTOMER WHO
IS RESPONSIBLE FOR PAYING SUCH COMMISSIONS IS WITHIN THE CITY.
(2) RECEIPTS CONSTITUTING MARGIN INTEREST EARNED ON BEHALF OF BROKER-
AGE ACCOUNTS SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY IF THE
MAILING ADDRESS IN THE RECORDS OF THE TAXPAYER OF THE CUSTOMER WHO IS
RESPONSIBLE FOR PAYING SUCH MARGIN INTEREST IS WITHIN THE CITY.
(3) (I) RECEIPTS CONSTITUTING FEES EARNED BY THE TAXPAYER FOR ADVISORY
SERVICES TO A CUSTOMER IN CONNECTION WITH THE UNDERWRITING OF SECURITIES
FOR SUCH CUSTOMER (SUCH CUSTOMER BEING THE ENTITY THAT IS CONTEMPLATING
ISSUING OR IS ISSUING SECURITIES) OR FEES EARNED BY THE TAXPAYER FOR
MANAGING AN UNDERWRITING SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY
IF THE MAILING ADDRESS IN THE RECORDS OF THE TAXPAYER OF SUCH CUSTOMER
WHO IS RESPONSIBLE FOR PAYING SUCH FEES IS WITHIN THE CITY.
(II) RECEIPTS CONSTITUTING THE PRIMARY SPREAD OF SELLING CONCESSION
FROM UNDERWRITTEN SECURITIES SHALL BE DEEMED TO BE GENERATED WITHIN THE
CITY IF THE CUSTOMER IS LOCATED WITHIN THE CITY.
(III) THE TERM "PRIMARY SPREAD" MEANS THE DIFFERENCE BETWEEN THE PRICE
PAID BY THE TAXPAYER TO THE ISSUER OF THE SECURITIES BEING MARKETED AND
THE PRICE RECEIVED FROM THE SUBSEQUENT SALE OF THE UNDERWRITTEN SECURI-
TIES AT THE INITIAL PUBLIC OFFERING PRICE, LESS ANY SELLING CONCESSION
AND ANY FEES PAID TO THE TAXPAYER FOR ADVISORY SERVICES OR ANY MANAGER'S
FEES, IF SUCH FEES ARE NOT PAID BY THE CUSTOMER TO THE TAXPAYER SEPA-
RATELY. THE TERM "PUBLIC OFFERING PRICE" MEANS THE PRICE AGREED UPON BY
THE TAXPAYER AND THE ISSUER AT WHICH THE SECURITIES ARE TO BE OFFERED TO
THE PUBLIC. THE TERM "SELLING CONCESSION" MEANS THE AMOUNT PAID TO THE
TAXPAYER FOR PARTICIPATING IN THE UNDERWRITING OF A SECURITY WHERE THE
TAXPAYER IS NOT THE LEAD UNDERWRITER.
(4) RECEIPTS CONSTITUTING ACCOUNT MAINTENANCE FEES SHALL BE DEEMED TO
BE GENERATED WITHIN THE CITY IF THE MAILING ADDRESS IN THE RECORD OF THE
TAXPAYER OF THE CUSTOMER WHO IS RESPONSIBLE FOR PAYING SUCH ACCOUNT
MAINTENANCE FEES IS WITHIN THE CITY.
(5) RECEIPTS CONSTITUTING FEES FOR MANAGEMENT OR ADVISORY SERVICES,
INCLUDING FEES FOR ADVISORY SERVICES IN RELATION TO MERGER OR ACQUISI-
TION ACTIVITIES, BUT EXCLUDING FEES PAID FOR SERVICES DESCRIBED IN PARA-
GRAPH (D) OF THIS SUBDIVISION, SHALL BE DEEMED TO BE GENERATED WITHIN
THE CITY IF THE MAILING ADDRESS IN THE RECORDS OF THE TAXPAYER OF THE
CUSTOMER WHO IS RESPONSIBLE FOR PAYING SUCH FEES IS WITHIN THE CITY.
(6) RECEIPTS CONSTITUTING INTEREST EARNED BY THE TAXPAYER ON LOANS AND
ADVANCES MADE BY THE TAXPAYER TO A CORPORATION AFFILIATED WITH THE
TAXPAYER BUT WITH WHICH THE TAXPAYER IS NOT PERMITTED OR REQUIRED TO
FILE A COMBINED REPORT PURSUANT TO SECTION 11-654.3 OF THIS SUBCHAPTER
SHALL BE DEEMED TO ARISE FROM SERVICES PERFORMED AT THE PRINCIPAL PLACE
OF BUSINESS OF SUCH AFFILIATED CORPORATION.
A. 6009 154
(7) IF THE TAXPAYER RECEIVES ANY OF THE RECEIPTS ENUMERATED IN SUBPAR-
AGRAPHS ONE THROUGH FOUR OF THIS PARAGRAPH AS A RESULT OF A SECURITIES
CORRESPONDENT RELATIONSHIP SUCH TAXPAYER HAS WITH ANOTHER BROKER OR
DEALER WITH THE TAXPAYER ACTING IN THIS RELATIONSHIP AS THE CLEARING
FIRM, SUCH RECEIPTS SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY TO
THE EXTENT SET FORTH IN EACH OF SUCH SUBPARAGRAPHS. THE AMOUNT OF SUCH
RECEIPTS SHALL EXCLUDE THE AMOUNT THE TAXPAYER IS REQUIRED TO PAY TO THE
CORRESPONDENT FIRM FOR SUCH CORRESPONDENT RELATIONSHIP. IF THE TAXPAYER
RECEIVES ANY OF THE RECEIPTS ENUMERATED IN SUBPARAGRAPHS ONE THROUGH
FOUR OF THIS PARAGRAPH AS RESULT OF A SECURITIES CORRESPONDENT RELATION-
SHIP SUCH TAXPAYER HAS WITH ANOTHER BROKER OR DEALER WITH THE TAXPAYER
ACTING IN THIS RELATIONSHIP AS THE INTRODUCING FIRM, SUCH RECEIPTS SHALL
BE DEEMED TO BE GENERATED WITHIN THE CITY TO THE EXTENT SET FORTH IN
EACH OF SUCH SUBPARAGRAPHS.
(8) IF, FOR THE PURPOSES OF SUBPARAGRAPH ONE, SUBPARAGRAPH TWO, CLAUSE
(I) OF SUBPARAGRAPH THREE, SUBPARAGRAPH FOUR, OR SUBPARAGRAPH FIVE OF
THIS PARAGRAPH THE TAXPAYER IS UNABLE FROM ITS RECORDS TO DETERMINE THE
MAILING ADDRESS OF THE CUSTOMER, EIGHT PERCENT OF THE RECEIPTS SHALL BE
INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION.
(C) RECEIPTS RELATING TO THE BANK, CREDIT, TRAVEL, AND ENTERTAINMENT
CARD ACTIVITIES DESCRIBED IN THIS PARAGRAPH SHALL BE DEEMED TO BE GENER-
ATED WITHIN THE CITY AS DESCRIBED IN SUBPARAGRAPHS ONE THROUGH FOUR OF
THIS PARAGRAPH. RECEIPTS FROM SUCH ACTIVITIES GENERATED WITHIN THE CITY
SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION. RECEIPTS
FROM SUCH ACTIVITIES GENERATED WITHIN AND WITHOUT THE CITY SHALL BE
INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
(1) RECEIPTS CONSTITUTING INTEREST, AND FEES AND PENALTIES IN THE
NATURE OF INTEREST, FROM BANK, CREDIT, TRAVEL AND ENTERTAINMENT CARD
RECEIVABLES SHALL BE DEEMED TO BE GENERATED WITHIN THE CITY IF THE MAIL-
ING ADDRESS OF THE CARD HOLDER IN THE RECORDS OF THE TAXPAYER IS WITHIN
THE CITY;
(2) RECEIPTS FROM SERVICE CHARGES AND FEES FROM SUCH CARDS SHALL BE
DEEMED TO BE GENERATED WITHIN THE CITY IF THE MAILING ADDRESS OF THE
CARD HOLDER IN THE RECORDS OF THE TAXPAYER IS WITHIN THE CITY;
(3) RECEIPTS FROM MERCHANT DISCOUNTS SHALL BE DEEMED TO BE GENERATED
WITHIN THE CITY IF THE MERCHANT IS LOCATED WITHIN THE CITY. IN THE CASE
OF A MERCHANT WITH LOCATIONS BOTH WITHIN AND WITHOUT THE CITY, ONLY
RECEIPTS FROM MERCHANT DISCOUNTS ATTRIBUTABLE TO SALES MADE FROM
LOCATIONS WITHIN THE CITY ARE ALLOCATED TO THE CITY. IT SHALL BE
PRESUMED THAT THE LOCATION OF THE MERCHANT IS THE ADDRESS OF THE
MERCHANT SHOWN ON THE INVOICE SUBMITTED BY THE MERCHANT TO THE TAXPAYER;
AND
(4) RECEIPTS FROM CREDIT CARD AUTHORIZATION PROCESSING, AND CLEARING
AND SETTLEMENT PROCESSING RECEIVED BY A CREDIT CARD PROCESSOR SHALL BE
DEEMED TO BE GENERATED WITHIN THE CITY IF THE LOCATION WHERE THE CREDIT
CARD PROCESSOR'S CUSTOMER ACCESSES THE CREDIT CARD PROCESSOR'S NETWORK
IS LOCATED WITHIN THE CITY. THE AMOUNT OF ALL OTHER RECEIPTS RECEIVED BY
A CREDIT CARD PROCESSOR NOT SPECIFICALLY ADDRESSED IN SUBDIVISIONS ONE
THROUGH NINE OR SUBDIVISION TWELVE OF THIS SECTION DEEMED TO BE GENER-
ATED WITHIN THE CITY SHALL BE DETERMINED BY MULTIPLYING THE TOTAL AMOUNT
OF SUCH OTHER RECEIPTS BY THE AVERAGE OF (I) EIGHT PERCENT AND (II) THE
PERCENT OF NEW YORK CITY ACCESS POINTS. THE PERCENT OF NEW YORK CITY
ACCESS POINTS SHALL BE THE NUMBER OF LOCATIONS IN NEW YORK CITY FROM
WHICH THE CREDIT CARD PROCESSOR'S CUSTOMERS ACCESS THE CREDIT CARD
PROCESSOR'S NETWORK DIVIDED BY THE TOTAL NUMBER OF LOCATIONS IN THE
A. 6009 155
UNITED STATES WHERE THE CREDIT CARD PROCESSOR'S CUSTOMERS ACCESS THE
CREDIT CARD PROCESSOR'S NETWORK.
(D) RECEIPTS RECEIVED FROM AN INVESTMENT COMPANY ARISING FROM THE SALE
OF MANAGEMENT, ADMINISTRATION OR DISTRIBUTION SERVICES TO SUCH INVEST-
MENT COMPANY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRAC-
TION. THE PORTION OF SUCH RECEIPTS INCLUDED IN THE NUMERATOR OF THE
RECEIPTS FRACTION (SUCH PORTION REFERRED TO HEREIN AS THE NEW YORK CITY
PORTION) SHALL BE DETERMINED AS PROVIDED IN THIS PARAGRAPH.
(1) THE NEW YORK CITY PORTION SHALL BE THE PRODUCT OF THE TOTAL OF
SUCH RECEIPTS FROM THE SALE OF SUCH SERVICES AND A FRACTION. THE NUMERA-
TOR OF THAT FRACTION SHALL BE THE SUM OF THE MONTHLY PERCENTAGES (AS
DEFINED HEREINAFTER) DETERMINED FOR EACH MONTH OF THE INVESTMENT COMPA-
NY'S TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES WHICH TAXABLE YEAR
ENDS WITHIN THE TAXABLE YEAR OF THE TAXPAYER (BUT EXCLUDING ANY MONTH
DURING WHICH THE INVESTMENT COMPANY HAD NO OUTSTANDING SHARES). THE
MONTHLY PERCENTAGE FOR EACH SUCH MONTH SHALL BE DETERMINED BY DIVIDING
THE NUMBER OF SHARES IN THE INVESTMENT COMPANY THAT ARE OWNED ON THE
LAST DAY OF THE MONTH BY SHAREHOLDERS THAT ARE LOCATED IN THE CITY BY
THE TOTAL NUMBER OF SHARES IN THE INVESTMENT COMPANY OUTSTANDING ON THAT
DATE. THE DENOMINATOR OF THE FRACTION SHALL BE THE NUMBER OF SUCH MONTH-
LY PERCENTAGES.
(2)(I) FOR PURPOSES OF THIS PARAGRAPH, AN INDIVIDUAL, ESTATE OR TRUST
SHALL BE DEEMED TO BE LOCATED WITHIN THE CITY IF HIS, HER OR ITS MAILING
ADDRESS IN THE RECORDS OF THE INVESTMENT COMPANY IS LOCATED WITHIN THE
CITY. A BUSINESS ENTITY IS DEEMED TO BE LOCATED WITHIN THE CITY IF ITS
COMMERCIAL DOMICILE IS LOCATED WITHIN THE CITY.
(II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "INVESTMENT COMPANY"
MEANS A REGULATED INVESTMENT COMPANY, AS DEFINED IN SECTION EIGHT
HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE, AND A PARTNERSHIP TO
WHICH SUBSECTION (A) OF SECTION SEVEN THOUSAND SEVEN HUNDRED FOUR OF THE
INTERNAL REVENUE CODE APPLIES (BY VIRTUE OF PARAGRAPH THREE OF
SUBSECTION (C) OF SECTION SEVEN THOUSAND SEVEN HUNDRED FOUR OF SUCH
CODE) AND THAT MEETS THE REQUIREMENTS OF SUBSECTION (B) OF SECTION EIGHT
HUNDRED FIFTY-ONE OF SUCH CODE. THE PRECEDING SENTENCE SHALL BE APPLIED
TO THE TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES OF THE BUSINESS
ENTITY THAT IS ASSERTED TO CONSTITUTE AN INVESTMENT COMPANY THAT ENDS
WITHIN THE TAXABLE YEAR OF THE TAXPAYER.
(III) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "RECEIPTS RECEIVED FROM
AN INVESTMENT COMPANY" INCLUDES AMOUNTS RECEIVED DIRECTLY FROM AN
INVESTMENT COMPANY AS WELL AS AMOUNTS RECEIVED FROM THE SHAREHOLDERS IN
SUCH INVESTMENT COMPANY, IN THEIR CAPACITY AS SUCH.
(IV) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "MANAGEMENT SERVICES"
MEANS THE RENDERING OF INVESTMENT ADVICE TO AN INVESTMENT COMPANY,
MAKING DETERMINATIONS AS TO WHEN SALES AND PURCHASES OF SECURITIES ARE
TO BE MADE ON BEHALF OF AN INVESTMENT COMPANY, OR THE SELLING OR
PURCHASING OF SECURITIES CONSTITUTING ASSETS OF AN INVESTMENT COMPANY,
AND RELATED ACTIVITIES, BUT ONLY WHERE SUCH ACTIVITY OR ACTIVITIES ARE
PERFORMED PURSUANT TO A CONTRACT WITH THE INVESTMENT COMPANY ENTERED
INTO PURSUANT TO SUBSECTION (A) OF SECTION FIFTEEN OF THE FEDERAL
INVESTMENT COMPANY ACT OF NINETEEN HUNDRED FORTY, AS AMENDED.
(V) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "DISTRIBUTION SERVICES"
MEANS THE SERVICES OF ADVERTISING, SERVICING INVESTOR ACCOUNTS (INCLUD-
ING REDEMPTIONS), MARKETING SHARES OR SELLING SHARES OF AN INVESTMENT
COMPANY, BUT, IN THE CASE OF ADVERTISING, SERVICING INVESTOR ACCOUNTS
(INCLUDING REDEMPTIONS) OR MARKETING SHARES, ONLY WHERE SUCH SERVICE IS
PERFORMED BY A PERSON WHO IS (OR WAS, IN THE CASE OF A CLOSED END COMPA-
A. 6009 156
NY) ALSO ENGAGED IN THE SERVICE OF SELLING SUCH SHARES. IN THE CASE OF
AN OPEN END COMPANY, SUCH SERVICE OF SELLING SHARES MUST BE PERFORMED
PURSUANT TO A CONTRACT ENTERED INTO PURSUANT TO SUBSECTION (B) OF
SECTION FIFTEEN OF THE FEDERAL INVESTMENT COMPANY ACT OF NINETEEN
HUNDRED FORTY, AS AMENDED.
(VI) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "ADMINISTRATION
SERVICES" INCLUDES CLERICAL, ACCOUNTING, BOOKKEEPING, DATA PROCESSING,
INTERNAL AUDITING, LEGAL AND TAX SERVICES PERFORMED FOR AN INVESTMENT
COMPANY BUT ONLY IF THE PROVIDER OF SUCH SERVICE OR SERVICES DURING THE
TAXABLE YEAR IN WHICH SUCH SERVICE OR SERVICES ARE SOLD ALSO SELLS
MANAGEMENT OR DISTRIBUTION SERVICES, AS DEFINED HEREINABOVE, TO SUCH
INVESTMENT COMPANY.
(E) FOR PURPOSES OF THIS SUBDIVISION, A TAXPAYER SHALL USE THE FOLLOW-
ING HIERARCHY TO DETERMINE THE COMMERCIAL DOMICILE OF A BUSINESS ENTITY,
BASED ON THE INFORMATION KNOWN TO THE TAXPAYER OR INFORMATION THAT WOULD
BE KNOWN UPON REASONABLE INQUIRY: (1) THE SEAT OF MANAGEMENT AND CONTROL
OF THE BUSINESS ENTITY; AND (2) THE BILLING ADDRESS OF THE BUSINESS
ENTITY IN THE TAXPAYER'S RECORDS. THE TAXPAYER MUST EXERCISE DUE DILI-
GENCE BEFORE REJECTING THE FIRST METHOD IN THIS HIERARCHY AND PROCEEDING
TO THE NEXT METHOD.
(F) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "REGISTERED SECURITIES
BROKER OR DEALER" MEANS A BROKER OR DEALER REGISTERED AS SUCH BY THE
SECURITIES AND EXCHANGE COMMISSION OR A BROKER OR DEALER REGISTERED AS
SUCH BY THE COMMODITIES FUTURES TRADING COMMISSION, AND SHALL INCLUDE AN
OTC DERIVATIVES DEALER AS DEFINED UNDER REGULATIONS OF THE SECURITIES
AND EXCHANGE COMMISSION AT TITLE 17, PART 240, SECTION 3B-12 OF THE CODE
OF FEDERAL REGULATIONS (17 CFR 240.3B-12).
6. RECEIPTS FROM THE CONDUCT OF A RAILROAD BUSINESS (INCLUDING SURFACE
RAILROAD, WHETHER OR NOT OPERATED BY STEAM, SUBWAY RAILROAD, ELEVATED
RAILROAD, PALACE CAR OR SLEEPING CAR BUSINESS) OR A TRUCKING BUSINESS
SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION AS FOLLOWS.
THE AMOUNT OF RECEIPTS FROM THE CONDUCT OF A RAILROAD BUSINESS OR A
TRUCKING BUSINESS INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION
SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT OF RECEIPTS FROM SUCH
BUSINESS BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE MILES IN
SUCH BUSINESS WITHIN THE CITY DURING THE PERIOD COVERED BY THE TAXPAY-
ER'S REPORT AND THE DENOMINATOR OF WHICH SHALL BE THE MILES IN SUCH
BUSINESS WITHIN AND WITHOUT THE CITY DURING SUCH PERIOD. RECEIPTS FROM
THE CONDUCT OF THE RAILROAD BUSINESS OR A TRUCKING BUSINESS SHALL BE
INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
7. (A) RECEIPTS OF A TAXPAYER ACTING AS PRINCIPAL FROM THE ACTIVITY OF
AIR FREIGHT FORWARDING AND LIKE INDIRECT AIR CARRIER RECEIPTS ARISING
FROM SUCH ACTIVITY SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS
FRACTION AS FOLLOWS: ONE HUNDRED PERCENT OF SUCH RECEIPTS IF BOTH THE
PICKUP AND DELIVERY ASSOCIATED WITH SUCH RECEIPTS ARE MADE WITHIN THE
CITY AND FIFTY PERCENT OF SUCH RECEIPTS IF EITHER THE PICKUP OR DELIVERY
ASSOCIATED WITH SUCH RECEIPTS IS MADE WITHIN THIS CITY. SUCH RECEIPTS,
WHETHER THE PICKUP OR DELIVERY ASSOCIATED WITH THE RECEIPTS IS WITHIN OR
WITHOUT THE CITY, SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS
FRACTION.
(B)(1)(I) THE PORTION OF RECEIPTS OF A TAXPAYER FROM AVIATION SERVICES
(OTHER THAN SERVICES DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION, BUT
INCLUDING THE RECEIPTS OF A QUALIFIED AIR FREIGHT FORWARDER) TO BE
INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED
BY MULTIPLYING ITS RECEIPTS FROM SUCH AVIATION SERVICES BY A PERCENTAGE
A. 6009 157
WHICH IS EQUAL TO THE ARITHMETIC AVERAGE OF THE FOLLOWING THREE PERCENT-
AGES:
(A) THE PERCENTAGE DETERMINED BY DIVIDING THE AIRCRAFT ARRIVALS AND
DEPARTURES WITHIN THE CITY BY THE TAXPAYER DURING THE PERIOD COVERED BY
ITS REPORT BY THE TOTAL AIRCRAFT ARRIVALS AND DEPARTURES WITHIN AND
WITHOUT THE CITY DURING SUCH PERIOD; PROVIDED, HOWEVER, ARRIVALS AND
DEPARTURES SOLELY FOR MAINTENANCE OR REPAIR, REFUELING (WHERE NO DEBAR-
KATION OR EMBARKATION OF TRAFFIC OCCURS), ARRIVALS AND DEPARTURES OF
FERRY AND PERSONNEL TRAINING FLIGHTS OR ARRIVALS AND DEPARTURES IN THE
EVENT OF EMERGENCY SITUATIONS SHALL NOT BE INCLUDED IN COMPUTING SUCH
ARRIVAL AND DEPARTURE PERCENTAGE; PROVIDED, FURTHER, THE COMMISSIONER OF
FINANCE MAY ALSO EXEMPT FROM SUCH PERCENTAGE AIRCRAFT ARRIVALS AND
DEPARTURES OF ALL NON-REVENUE FLIGHTS INCLUDING FLIGHTS INVOLVING THE
TRANSPORTATION OF OFFICERS OR EMPLOYEES RECEIVING AIR TRANSPORTATION TO
PERFORM MAINTENANCE OR REPAIR SERVICES OR WHERE SUCH OFFICERS OR EMPLOY-
EES ARE TRANSPORTED IN CONJUNCTION WITH AN EMERGENCY SITUATION OR THE
INVESTIGATION OF AN AIR DISASTER (OTHER THAN ON A SCHEDULED FLIGHT);
PROVIDED, HOWEVER, THAT ARRIVALS AND DEPARTURES OF FLIGHTS TRANSPORTING
OFFICERS AND EMPLOYEES RECEIVING AIR TRANSPORTATION FOR PURPOSES OTHER
THAN SPECIFIED ABOVE (WITHOUT REGARD TO REMUNERATION) SHALL BE INCLUDED
IN COMPUTING SUCH ARRIVAL AND DEPARTURE PERCENTAGE;
(B) THE PERCENTAGE DETERMINED BY DIVIDING THE REVENUE TONS HANDLED BY
THE TAXPAYER AT AIRPORTS WITHIN THE CITY DURING SUCH PERIOD BY THE TOTAL
REVENUE TONS HANDLED BY IT AT AIRPORTS WITHIN AND WITHOUT THE CITY
DURING SUCH PERIOD; AND
(C) THE PERCENTAGE DETERMINED BY DIVIDING THE TAXPAYER'S ORIGINATING
REVENUE WITHIN THE CITY FOR SUCH PERIOD BY ITS TOTAL ORIGINATING REVENUE
WITHIN AND WITHOUT THE CITY FOR SUCH PERIOD.
(II) AS USED HEREIN THE TERM "AIRCRAFT ARRIVALS AND DEPARTURES" MEANS
THE NUMBER OF LANDINGS AND TAKEOFFS OF THE AIRCRAFT OF THE TAXPAYER AND
THE NUMBER OF AIR PICKUPS AND DELIVERIES BY THE AIRCRAFT OF SUCH TAXPAY-
ER; THE TERM "ORIGINATING REVENUE" MEANS REVENUE TO THE TAXPAYER FROM
THE TRANSPORTATION OF REVENUE PASSENGERS AND REVENUE PROPERTY FIRST
RECEIVED BY THE TAXPAYER EITHER AS ORIGINATING OR CONNECTING TRAFFIC AT
AIRPORTS; AND THE TERM "REVENUE TONS HANDLED BY THE TAXPAYER AT
AIRPORTS" MEANS THE WEIGHT IN TONS OF REVENUE PASSENGERS (AT TWO HUNDRED
POUNDS PER PASSENGER) AND REVENUE CARGO FIRST RECEIVED EITHER AS ORIGI-
NATING OR CONNECTING TRAFFIC OR FINALLY DISCHARGED BY THE TAXPAYER AT
AIRPORTS.
(2) ALL SUCH RECEIPTS OF A TAXPAYER FROM AVIATION SERVICES DESCRIBED
IN THIS PARAGRAPH SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS
FRACTION.
(3) A CORPORATION IS A QUALIFIED AIR FREIGHT FORWARDER WITH RESPECT TO
ANOTHER CORPORATION:
(I) IF IT OWNS OR CONTROLS EITHER DIRECTLY OR INDIRECTLY ALL OF THE
CAPITAL STOCK OF SUCH OTHER CORPORATION, OR IF ALL OF ITS CAPITAL STOCK
IS OWNED OR CONTROLLED EITHER DIRECTLY OR INDIRECTLY BY SUCH OTHER
CORPORATION, OR IF ALL OF THE CAPITAL STOCK OF BOTH CORPORATIONS IS
OWNED OR CONTROLLED EITHER DIRECTLY OR INDIRECTLY BY THE SAME INTERESTS;
(II) IF IT IS PRINCIPALLY ENGAGED IN THE BUSINESS OF AIR FREIGHT
FORWARDING; AND
(III) IF ITS AIR FREIGHT FORWARDING BUSINESS IS CARRIED ON PRINCIPALLY
WITH THE AIRLINE OR AIRLINES OPERATED BY SUCH OTHER CORPORATION.
8. (A) THE AMOUNT OF RECEIPTS FROM SALES OF ADVERTISING IN NEWSPAPERS
OR PERIODICALS INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION SHALL
BE DETERMINED BY MULTIPLYING THE TOTAL OF SUCH RECEIPTS BY A FRACTION,
A. 6009 158
THE NUMERATOR OF WHICH SHALL BE THE NUMBER OF NEWSPAPERS AND PERIODICALS
DELIVERED TO POINTS WITHIN THE CITY AND THE DENOMINATOR OF WHICH SHALL
BE THE NUMBER OF NEWSPAPERS AND PERIODICALS DELIVERED TO POINTS WITHIN
AND WITHOUT THE CITY. THE TOTAL OF SUCH RECEIPTS FROM SALES OF ADVERTIS-
ING IN NEWSPAPERS OR PERIODICALS SHALL BE INCLUDED IN THE DENOMINATOR OF
THE RECEIPTS FRACTION.
(B) THE AMOUNT OF RECEIPTS FROM SALES OF ADVERTISING ON TELEVISION OR
RADIO INCLUDED IN THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLY-
ING THE TOTAL OF SUCH RECEIPTS BY A FRACTION, THE NUMERATOR OF WHICH
SHALL BE THE NUMBER OF VIEWERS OR LISTENERS WITHIN THE CITY AND THE
DENOMINATOR OF WHICH SHALL BE THE NUMBER OF VIEWERS OR LISTENERS WITHIN
AND WITHOUT THE CITY. THE TOTAL OF SUCH RECEIPTS FROM SALES OF ADVER-
TISING ON TELEVISION OR RADIO SHALL BE INCLUDED IN THE DENOMINATOR OF
THE RECEIPTS FRACTION.
(C) THE AMOUNT OF RECEIPTS FROM SALES OF ADVERTISING NOT DESCRIBED IN
PARAGRAPH (A) OR (B) OF THIS SUBDIVISION THAT IS FURNISHED, PROVIDED OR
DELIVERED TO, OR ACCESSED BY THE VIEWER OR LISTENER THROUGH THE USE OF
WIRE, CABLE, FIBER-OPTIC, LASER, MICROWAVE, RADIO WAVE, SATELLITE OR
SIMILAR SUCCESSOR MEDIA OR ANY COMBINATION THEREOF, INCLUDED IN THE
NUMERATOR OF THE RECEIPTS FRACTION SHALL BE DETERMINED BY MULTIPLYING
THE TOTAL OF SUCH RECEIPTS BY A FRACTION, THE NUMERATOR OF WHICH SHALL
BE THE NUMBER OF VIEWERS OR LISTENERS WITHIN THE CITY AND THE DENOMINA-
TOR OF WHICH SHALL BE THE NUMBER OF VIEWERS OR LISTENERS WITHIN AND
WITHOUT THE CITY. THE TOTAL OF SUCH RECEIPTS FROM SALES OF ADVERTISING
DESCRIBED IN THIS PARAGRAPH SHALL BE INCLUDED IN THE DENOMINATOR OF THE
RECEIPTS FRACTION.
9. RECEIPTS FROM THE TRANSPORTATION OR TRANSMISSION OF GAS THROUGH
PIPES SHALL BE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION AS
FOLLOWS. THE AMOUNT OF RECEIPTS FROM THE TRANSPORTATION OR TRANSMISSION
OF GAS THROUGH PIPES INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRACTION
SHALL BE DETERMINED BY MULTIPLYING THE TOTAL AMOUNT OF SUCH RECEIPTS BY
A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAXPAYER'S TRANSPORTA-
TION UNITS WITHIN THE CITY AND THE DENOMINATOR OF WHICH SHALL BE THE
TAXPAYER'S TRANSPORTATION UNITS WITHIN AND WITHOUT THE CITY. A TRANSPOR-
TATION UNIT IS THE TRANSPORTATION OF ONE CUBIC FOOT OF GAS OVER A
DISTANCE OF ONE MILE. THE TOTAL AMOUNT OF RECEIPTS FROM THE TRANSPORTA-
TION OR TRANSMISSION OF GAS THROUGH PIPES SHALL BE INCLUDED IN THE
DENOMINATOR OF THE RECEIPTS FRACTION.
10. (A) RECEIPTS FROM SERVICES NOT ADDRESSED IN SUBDIVISIONS ONE
THROUGH NINE OR SUBDIVISION TWELVE OF THIS SECTION AND OTHER BUSINESS
RECEIPTS NOT ADDRESSED IN SUCH SUBDIVISIONS SHALL BE INCLUDED IN THE
NUMERATOR OF THE RECEIPTS FRACTION IF THE LOCATION OF THE CUSTOMER IS
WITHIN THE CITY. SUCH RECEIPTS FROM CUSTOMERS WITHIN AND WITHOUT THE
CITY SHALL BE INCLUDED IN THE DENOMINATOR OF THE RECEIPTS FRACTION.
WHETHER THE RECEIPTS ARE INCLUDED IN THE NUMERATOR OF THE RECEIPTS FRAC-
TION SHALL BE DETERMINED ACCORDING TO THE HIERARCHY OF METHODS SET FORTH
IN PARAGRAPH (B) OF THIS SUBDIVISION. THE TAXPAYER MUST EXERCISE DUE
DILIGENCE UNDER EACH METHOD DESCRIBED IN SUCH PARAGRAPH BEFORE REJECTING
IT AND PROCEEDING TO THE NEXT METHOD IN THE HIERARCHY, AND MUST BASE ITS
DETERMINATION ON INFORMATION KNOWN TO THE TAXPAYER OR INFORMATION THAT
WOULD BE KNOWN TO THE TAXPAYER UPON REASONABLE INQUIRY.
(B) THE HIERARCHY OF METHODS IS AS FOLLOWS: (1) THE BENEFIT IS
RECEIVED IN THE CITY; (2) DELIVERY DESTINATION; (3) THE RECEIPTS FRAC-
TION FOR SUCH RECEIPTS WITHIN THE CITY DETERMINED PURSUANT TO THIS
SUBDIVISION FOR THE PRECEDING TAXABLE YEAR; OR (4) THE RECEIPTS FRACTION
IN THE CURRENT TAXABLE YEAR DETERMINED PURSUANT TO THIS SUBDIVISION FOR
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THOSE RECEIPTS THAT CAN BE SOURCED USING THE HIERARCHY OF SOURCING METH-
ODS IN SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH.
11. IF IT SHALL APPEAR THAT THE RECEIPTS FRACTION DETERMINED PURSUANT
TO THIS SECTION DOES NOT RESULT IN A PROPER REFLECTION OF THE TAXPAYER'S
BUSINESS INCOME OR CAPITAL WITHIN THE CITY, THE COMMISSIONER OF FINANCE
IS AUTHORIZED IN HIS OR HER DISCRETION TO ADJUST IT, OR THE TAXPAYER MAY
REQUEST THAT THE COMMISSIONER OF FINANCE ADJUST IT, BY (A) EXCLUDING ONE
OR MORE ITEMS IN SUCH DETERMINATION, (B) INCLUDING ONE OR MORE OTHER
ITEMS IN SUCH DETERMINATION, OR (C) ANY OTHER SIMILAR OR DIFFERENT METH-
OD CALCULATED TO EFFECT A FAIR AND PROPER APPORTIONMENT OF THE BUSINESS
INCOME AND CAPITAL REASONABLY ATTRIBUTED TO THE CITY. THE PARTY SEEKING
THE ADJUSTMENT SHALL BEAR THE BURDEN OF PROOF TO DEMONSTRATE THAT THE
RECEIPTS FRACTION DETERMINED PURSUANT TO THIS SECTION DOES NOT RESULT IN
A PROPER REFLECTION OF THE TAXPAYER'S BUSINESS INCOME OR CAPITAL WITHIN
THE CITY AND THAT THE PROPOSED ADJUSTMENT IS APPROPRIATE.
12. RECEIPTS FROM THE OPERATION OF VESSELS SHALL BE INCLUDED IN THE
NUMERATOR OF THE RECEIPTS FRACTION AS FOLLOWS. THE AMOUNT OF RECEIPTS
FROM THE OPERATION OF VESSELS INCLUDED IN THE NUMERATOR OF THE RECEIPTS
FRACTION SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT OF SUCH RECEIPTS
BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE AGGREGATE NUMBER OF
WORKING DAYS OF THE VESSELS OWNED OR LEASED BY THE TAXPAYER IN TERRITO-
RIAL WATERS OF THE CITY DURING THE PERIOD COVERED BY THE TAXPAYER'S
REPORT AND THE DENOMINATOR OF WHICH SHALL BE THE AGGREGATE NUMBER OF
WORKING DAYS OF ALL VESSELS OWNED OR LEASED BY THE TAXPAYER DURING SUCH
PERIOD. RECEIPTS FROM THE OPERATION OF VESSELS SHALL BE INCLUDED IN THE
DENOMINATOR OF THE RECEIPTS FRACTION.
S 11-654.3 COMBINED REPORTS. 1. (A) THE TAX ON A COMBINED REPORT SHALL
BE THE HIGHEST OF (1) THE COMBINED BUSINESS INCOME MULTIPLIED BY THE TAX
RATE SPECIFIED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF
SUBDIVISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER; (2) THE COMBINED
CAPITAL MULTIPLIED BY THE TAX RATE SPECIFIED IN CLAUSE (II) OF SUBPARA-
GRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION 11-654 OF THIS
SUBCHAPTER, BUT NOT EXCEEDING THE LIMITATION PROVIDED FOR IN SUCH CLAUSE
(II); OR (3) THE FIXED DOLLAR MINIMUM THAT IS ATTRIBUTABLE TO THE DESIG-
NATED AGENT OF THE COMBINED GROUP. IN ADDITION, THE TAX ON A COMBINED
REPORT SHALL INCLUDE THE FIXED DOLLAR MINIMUM TAX SPECIFIED IN CLAUSE
(IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION
11-654 OF THIS SUBCHAPTER FOR EACH MEMBER OF THE COMBINED GROUP, OTHER
THAN THE DESIGNATED AGENT, THAT IS A TAXPAYER.
(B) THE COMBINED BUSINESS INCOME BASE IS THE AMOUNT OF THE COMBINED
BUSINESS INCOME OF THE COMBINED GROUP THAT IS ALLOCATED TO THE CITY,
REDUCED BY ANY PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION AND ANY
NET OPERATING LOSS DEDUCTION FOR THE COMBINED GROUP. THE COMBINED CAPI-
TAL BASE IS THE AMOUNT OF THE COMBINED CAPITAL OF THE COMBINED GROUP
THAT IS ALLOCATED TO THE CITY.
2. (A) EXCEPT AS PROVIDED IN PARAGRAPH (C) OF THIS SUBDIVISION, ANY
TAXPAYER (1) WHICH OWNS OR CONTROLS EITHER DIRECTLY OR INDIRECTLY MORE
THAN FIFTY PERCENT OF THE VOTING POWER OF THE CAPITAL STOCK OF ONE OR
MORE OTHER CORPORATIONS, OR (2) MORE THAN FIFTY PERCENT OF THE VOTING
POWER OF THE CAPITAL STOCK OF WHICH IS OWNED OR CONTROLLED EITHER
DIRECTLY OR INDIRECTLY BY ONE OR MORE OTHER CORPORATIONS, OR (3) MORE
THAN FIFTY PERCENT OF THE VOTING POWER OF THE CAPITAL STOCK OF WHICH AND
THE CAPITAL STOCK OF ONE OR MORE OTHER CORPORATIONS, IS OWNED OR
CONTROLLED, DIRECTLY OR INDIRECTLY, BY THE SAME INTERESTS, AND (4) THAT
IS ENGAGED IN A UNITARY BUSINESS WITH THOSE CORPORATIONS (HEREINAFTER
A. 6009 160
REFERRED TO AS "RELATED CORPORATIONS"), SHALL MAKE A COMBINED REPORT
WITH THOSE OTHER CORPORATIONS.
(B) A CORPORATION REQUIRED TO MAKE A COMBINED REPORT WITHIN THE MEAN-
ING OF THIS SECTION SHALL ALSO INCLUDE (1) A CAPTIVE REIT AND A CAPTIVE
RIC; (2) A COMBINABLE CAPTIVE INSURANCE COMPANY; AND (3) AN ALIEN CORPO-
RATION THAT SATISFIES THE CONDITIONS IN PARAGRAPH (A) OF THIS SUBDIVI-
SION IF (I) UNDER ANY PROVISION OF THE INTERNAL REVENUE CODE, THAT
CORPORATION IS TREATED AS A "DOMESTIC CORPORATION" AS DEFINED IN SECTION
SEVEN THOUSAND SEVEN HUNDRED ONE OF THE INTERNAL REVENUE CODE, OR (II)
IT HAS EFFECTIVELY CONNECTED INCOME FOR THE TAXABLE YEAR PURSUANT TO
CLAUSE THREE OF THE OPENING PARAGRAPH OF SUBDIVISION EIGHT OF SECTION
11-652 OF THIS SUBCHAPTER.
(C) A CORPORATION REQUIRED OR PERMITTED TO MAKE A COMBINED REPORT
UNDER THIS SECTION DOES NOT INCLUDE (1) A CORPORATION THAT IS TAXABLE
UNDER A TAX IMPOSED BY SUBCHAPTER TWO OF THIS CHAPTER OR CHAPTER ELEVEN
OF THIS TITLE (EXCEPT FOR A VENDOR OF UTILITY SERVICES THAT IS TAXABLE
UNDER BOTH CHAPTER ELEVEN OF THIS TITLE AND THIS SUBCHAPTER), OR WOULD
BE TAXABLE UNDER A TAX IMPOSED BY SUBCHAPTER TWO OF THIS CHAPTER OR
CHAPTER ELEVEN OF THIS TITLE (EXCEPT FOR A VENDOR OF UTILITY SERVICES
THAT IS TAXABLE UNDER BOTH CHAPTER ELEVEN OF THIS TITLE AND THIS
SUBCHAPTER), OR WOULD HAVE BEEN TAXABLE AS AN INSURANCE CORPORATION
UNDER THE FORMER PART IV, TITLE R, CHAPTER FORTY-SIX OF THE ADMINISTRA-
TIVE CODE AS IN EFFECT ON JUNE THIRTIETH, NINETEEN HUNDRED SEVENTY-FOUR;
(2) A REIT THAT IS NOT A CAPTIVE REIT, AND A RIC THAT IS NOT A CAPTIVE
RIC; OR (3) AN ALIEN CORPORATION THAT UNDER ANY PROVISION OF THE INTER-
NAL REVENUE CODE IS NOT TREATED AS A "DOMESTIC CORPORATION" AS DEFINED
IN SECTION SEVEN THOUSAND SEVEN HUNDRED ONE OF SUCH CODE AND HAS NO
EFFECTIVELY CONNECTED INCOME FOR THE TAXABLE YEAR PURSUANT TO CLAUSE
THREE OF THE OPENING PARAGRAPH OF SUBDIVISION EIGHT OF SECTION 11-652 OF
THIS SUBCHAPTER. IF A CORPORATION IS SUBJECT TO TAX UNDER THIS SUBCHAP-
TER SOLELY AS A RESULT OF ITS OWNERSHIP OF A LIMITED PARTNER INTEREST IN
A LIMITED PARTNERSHIP THAT IS DOING BUSINESS, EMPLOYING CAPITAL, OWNING
OR LEASING PROPERTY, MAINTAINING AN OFFICE IN THIS STATE, OR DERIVING
RECEIPTS FROM ACTIVITY IN THIS STATE, AND NONE OF THE CORPORATION'S
RELATED CORPORATIONS ARE SUBJECT TO TAX UNDER THIS SUBCHAPTER, SUCH
CORPORATION SHALL NOT BE REQUIRED OR PERMITTED TO FILE A COMBINED REPORT
UNDER THIS SECTION WITH SUCH RELATED CORPORATIONS.
(D) A COMBINED REPORT SHALL BE FILED BY THE DESIGNATED AGENT OF THE
COMBINED GROUP AS DETERMINED UNDER SUBDIVISION SEVEN OF THIS SECTION.
3. (A) SUBJECT TO THE PROVISIONS OF PARAGRAPH (C) OF SUBDIVISION TWO
OF THIS SECTION, A TAXPAYER MAY ELECT TO TREAT AS ITS COMBINED GROUP ALL
CORPORATIONS THAT MEET THE OWNERSHIP REQUIREMENTS DESCRIBED IN PARAGRAPH
(A) OF SUBDIVISION TWO OF THIS SECTION (SUCH CORPORATIONS COLLECTIVELY
REFERRED TO IN THIS SUBDIVISION AS THE "COMMONLY OWNED GROUP"). IF THAT
ELECTION IS MADE, THE COMMONLY OWNED GROUP SHALL CALCULATE THE COMBINED
BUSINESS INCOME, COMBINED CAPITAL, AND FIXED DOLLAR MINIMUM AMOUNT OF
ALL MEMBERS OF THE GROUP IN ACCORDANCE WITH PARAGRAPH FOUR OF THIS
SUBDIVISION, WHETHER OR NOT THAT BUSINESS INCOME OR BUSINESS CAPITAL IS
FROM A SINGLE UNITARY BUSINESS.
(B) THE ELECTION UNDER THIS SUBDIVISION SHALL BE MADE ON AN ORIGINAL,
TIMELY FILED RETURN OF THE COMBINED GROUP. ANY CORPORATION ENTERING A
COMMONLY OWNED GROUP SUBSEQUENT TO THE YEAR OF ELECTION SHALL BE
INCLUDED IN THE COMBINED GROUP AND IS CONSIDERED TO HAVE WAIVED ANY
OBJECTION TO ITS INCLUSION IN THE COMBINED GROUP.
(C) THE ELECTION SHALL BE IRREVOCABLE, AND BINDING FOR AND APPLICABLE
TO THE TAXABLE YEAR FOR WHICH IT IS MADE AND FOR THE NEXT SIX TAXABLE
A. 6009 161
YEARS. THE ELECTION WILL AUTOMATICALLY BE RENEWED FOR ANOTHER SEVEN
TAXABLE YEARS AFTER IT HAS BEEN IN EFFECT FOR SEVEN TAXABLE YEARS UNLESS
IT IS AFFIRMATIVELY REVOKED. THE REVOCATION SHALL BE MADE ON AN
ORIGINAL, TIMELY FILED RETURN FOR THE FIRST TAXABLE YEAR AFTER THE
COMPLETION OF A SEVEN YEAR PERIOD FOR WHICH AN ELECTION UNDER THIS
SUBDIVISION WAS IN PLACE. IN THE CASE OF A REVOCATION, A NEW ELECTION
UNDER THIS SUBDIVISION SHALL NOT BE PERMITTED IN ANY OF THE IMMEDIATELY
FOLLOWING THREE TAXABLE YEARS. IN DETERMINING THE SEVEN AND THREE YEAR
PERIODS DESCRIBED IN THIS PARAGRAPH, SHORT TAXABLE YEARS SHALL NOT BE
CONSIDERED OR COUNTED.
4. (A) IN COMPUTING THE TAX BASES FOR A COMBINED REPORT, THE COMBINED
GROUP SHALL GENERALLY BE TREATED AS A SINGLE CORPORATION, EXCEPT AS
OTHERWISE PROVIDED, AND SUBJECT TO ANY REGULATIONS OR GUIDANCE ISSUED BY
THE COMMISSIONER OF FINANCE OR THE DEPARTMENT OF FINANCE.
(B)(1) IN COMPUTING COMBINED BUSINESS INCOME, ALL INTERCORPORATE DIVI-
DENDS SHALL BE ELIMINATED, AND ALL OTHER INTERCORPORATE TRANSACTIONS
SHALL BE DEFERRED IN A MANNER SIMILAR TO THE UNITED STATES TREASURY
REGULATIONS RELATING TO INTERCOMPANY TRANSACTIONS UNDER SECTION FIFTEEN
HUNDRED TWO OF THE INTERNAL REVENUE CODE.
(2) IN COMPUTING COMBINED CAPITAL, ALL INTERCORPORATE STOCKHOLDINGS,
INTERCORPORATE BILLS, INTERCORPORATE NOTES RECEIVABLE AND PAYABLE,
INTERCORPORATE ACCOUNTS RECEIVABLE AND PAYABLE, AND OTHER INTERCORPORATE
INDEBTEDNESS, SHALL BE ELIMINATED.
(C) QUALIFICATION FOR CREDITS, INCLUDING ANY LIMITATIONS THEREON,
SHALL BE DETERMINED SEPARATELY FOR EACH OF THE MEMBERS OF THE COMBINED
GROUP, AND SHALL NOT BE DETERMINED ON A COMBINED GROUP BASIS, EXCEPT AS
OTHERWISE PROVIDED. HOWEVER, THE CREDITS SHALL BE APPLIED AGAINST THE
COMBINED TAX OF THE GROUP. TO THE EXTENT THAT A PROVISION OF SECTION
11-654 OF THIS SUBCHAPTER, OR ANY OTHER APPLICABLE SECTION OF THIS
SUBCHAPTER, LIMITS A CREDIT TO THE FIXED DOLLAR MINIMUM AMOUNT
PRESCRIBED IN CLAUSE (IV) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI-
VISION ONE OF SECTION 11-654 OF THIS SUBCHAPTER, SUCH FIXED DOLLAR MINI-
MUM AMOUNT SHALL BE THE FIXED DOLLAR MINIMUM AMOUNT THAT IS ATTRIBUTABLE
TO THE DESIGNATED AGENT OF THE COMBINED GROUP.
(D)(1) A NET OPERATING LOSS DEDUCTION IS ALLOWED IN COMPUTING THE
COMBINED BUSINESS INCOME BASE. SUCH DEDUCTION MAY REDUCE THE TAX ON THE
COMBINED BUSINESS INCOME BASE TO THE HIGHER OF THE TAX ON THE COMBINED
CAPITAL OR THE FIXED DOLLAR MINIMUM AMOUNT THAT IS ATTRIBUTABLE TO THE
DESIGNATED AGENT OF THE COMBINED GROUP AND THE MEMBERS OF THE COMBINED
GROUP. A COMBINED NET OPERATING LOSS DEDUCTION IS EQUAL TO THE AMOUNT OF
COMBINED NET OPERATING LOSS OR LOSSES FROM ONE OR MORE TAXABLE YEARS
THAT ARE CARRIED FORWARD OR CARRIED BACK TO A PARTICULAR TAXABLE YEAR. A
COMBINED NET OPERATING LOSS IS THE COMBINED BUSINESS LOSS INCURRED IN A
PARTICULAR TAXABLE YEAR MULTIPLIED BY THE COMBINED BUSINESS ALLOCATION
PERCENTAGE FOR THAT YEAR DETERMINED AS PROVIDED IN SUBDIVISION FIVE OF
THIS SECTION.
(2) THE COMBINED NET OPERATING LOSS DEDUCTION AND COMBINED NET OPERAT-
ING LOSS ARE ALSO SUBJECT TO THE PROVISIONS CONTAINED IN PARAGRAPHS (A)
THROUGH (G) OF SUBDIVISION THREE OF SECTION 11-654.1 OF THIS SUBCHAPTER.
(3) IN THE CASE OF A CORPORATION THAT FILES A COMBINED REPORT, EITHER
IN THE YEAR THE NET OPERATING LOSS IS INCURRED OR IN THE YEAR IN WHICH A
DEDUCTION IS CLAIMED ON ACCOUNT OF THE LOSS, THE COMBINED NET OPERATING
LOSS DEDUCTION IS DETERMINED AS IF THE COMBINED GROUP IS A SINGLE CORPO-
RATION AND, TO THE EXTENT POSSIBLE AND NOT OTHERWISE INCONSISTENT WITH
THIS SUBDIVISION, IS SUBJECT TO THE SAME LIMITATIONS THAT WOULD APPLY
FOR FEDERAL INCOME TAX PURPOSES UNDER THE INTERNAL REVENUE CODE AND THE
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CODE OF FEDERAL REGULATIONS AS IF SUCH CORPORATION HAD FILED FOR SUCH
TAXABLE YEAR A CONSOLIDATED FEDERAL INCOME TAX RETURN WITH THE SAME
CORPORATIONS INCLUDED IN THE COMBINED REPORT. IF A CORPORATION FILES A
COMBINED REPORT, REGARDLESS OF WHETHER IT FILED A SEPARATE RETURN OR
CONSOLIDATED RETURN FOR FEDERAL INCOME TAX PURPOSES, THE NET OPERATING
LOSS AND NET OPERATING LOSS DEDUCTION FOR THE COMBINED GROUP MUST BE
COMPUTED AS IF THE CORPORATION HAD FILED A CONSOLIDATED RETURN FOR THE
SAME CORPORATIONS FOR FEDERAL INCOME TAX PURPOSES.
(4) IN GENERAL, ANY NET OPERATING LOSS CARRYOVER FROM A YEAR IN WHICH
A COMBINED REPORT WAS FILED SHALL BE BASED ON THE COMBINED NET OPERATING
LOSS OF THE GROUP OF CORPORATIONS FILING SUCH REPORT. THE PORTION OF THE
COMBINED LOSS ATTRIBUTABLE TO ANY MEMBER OF THE GROUP THAT FILES A SEPA-
RATE REPORT FOR A SUCCEEDING TAXABLE YEAR WILL BE AN AMOUNT BEARING THE
SAME RELATION TO THE COMBINED LOSS AS THE NET OPERATING LOSS OF SUCH
CORPORATION BEARS TO THE TOTAL NET OPERATING LOSS OF ALL MEMBERS OF THE
GROUP HAVING SUCH LOSSES TO THE EXTENT THAT THEY ARE TAKEN INTO ACCOUNT
IN COMPUTING THE COMBINED NET OPERATING LOSS.
(D-1) A PRIOR NET OPERATING LOSS CONVERSION SUBTRACTION IS ALLOWED IN
COMPUTING THE COMBINED BUSINESS INCOME BASE, AS PROVIDED IN SUBDIVISIONS
ONE AND TWO OF SECTION 11-654.1 OF THIS SUBCHAPTER. SUCH SUBTRACTION MAY
REDUCE THE TAX ON COMBINED BUSINESS INCOME TO THE HIGHER OF THE TAX ON
COMBINED CAPITAL OR THE FIXED DOLLAR MINIMUM AMOUNT THAT IS ATTRIBUTABLE
TO THE DESIGNATED AGENT OF THE COMBINED GROUP AND THE MEMBERS OF THE
COMBINED GROUP.
(E) ANY ELECTION MADE PURSUANT TO PARAGRAPH (B) OF SUBDIVISION FIVE,
PARAGRAPHS (B) AND (C) OF SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS
SUBCHAPTER, AND PARAGRAPH (D) OF SUBDIVISION THREE OF SECTION 11-654.1
OF THIS SUBCHAPTER SHALL APPLY TO ALL MEMBERS OF THE COMBINED GROUP.
(F)(1) IN THE CASE OF A CAPTIVE REIT OR CAPTIVE RIC REQUIRED UNDER
THIS SECTION TO BE INCLUDED IN A COMBINED REPORT, ENTIRE NET INCOME
SHALL BE COMPUTED AS REQUIRED UNDER SUBDIVISION SEVEN (IN THE CASE OF A
CAPTIVE REIT) OR SUBDIVISION EIGHT (IN THE CASE OF A CAPTIVE RIC) OF
SECTION 11-653 OF THIS SUBCHAPTER. HOWEVER, THE DEDUCTION UNDER THE
INTERNAL REVENUE CODE FOR DIVIDENDS PAID BY THE CAPTIVE REIT OR CAPTIVE
RIC TO ANY MEMBER OF THE AFFILIATED GROUP THAT INCLUDES THE CORPORATION
THAT DIRECTLY OR INDIRECTLY OWNS OVER FIFTY PERCENT OF THE VOTING STOCK
OF THE CAPTIVE REIT OR CAPTIVE RIC SHALL NOT BE ALLOWED. FOR PURPOSES
OF THIS SUBPARAGRAPH, THE TERM "AFFILIATED GROUP" MEANS "AFFILIATED
GROUP" AS DEFINED IN SECTION FIFTEEN HUNDRED FOUR OF THE INTERNAL REVEN-
UE CODE, BUT WITHOUT REGARD TO THE EXCEPTIONS PROVIDED FOR IN SUBSECTION
(B) OF THAT SECTION.
(2) IN THE CASE OF A COMBINABLE CAPTIVE INSURANCE COMPANY REQUIRED
UNDER THIS SECTION TO BE INCLUDED IN A COMBINED REPORT, ENTIRE NET
INCOME SHALL BE COMPUTED AS REQUIRED BY SUBDIVISION EIGHT OF SECTION
11-652 OF THIS SUBCHAPTER.
(G) IF MORE THAN ONE MEMBER OF A COMBINED GROUP IS ELIGIBLE FOR ANY OF
THE MODIFICATIONS DESCRIBED IN PARAGRAPHS (Q), (R) OR (S) OF SUBDIVISION
EIGHT OF SECTION 11-652 OF THIS SUBCHAPTER, ALL SUCH MEMBERS MUST
UTILIZE THE SAME MODIFICATION.
5. (A) IN DETERMINING THE BUSINESS ALLOCATION PERCENTAGE FOR A
COMBINED REPORT, THE RECEIPTS, NET INCOME, NET GAINS AND OTHER ITEMS OF
EACH MEMBER OF THE COMBINED GROUP, WHETHER OR NOT THEY ARE A TAXPAYER,
ARE INCLUDED AND INTERCORPORATE RECEIPTS, INCOME AND GAINS ARE ELIMI-
NATED. RECEIPTS, NET INCOME, NET GAINS AND OTHER ITEMS ARE SOURCED, AND
THE AMOUNTS ALLOWED IN THE RECEIPTS FRACTION ARE DETERMINED, AS PROVIDED
IN SECTION 11-654.2 OF THIS SUBCHAPTER.
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(B) AN ELECTION MADE TO ALLOCATE INCOME AND GAINS FROM QUALIFYING
FINANCIAL INSTRUMENTS PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH (A) OF
SUBDIVISION FIVE OF SECTION 11-654.2 OF THIS SUBCHAPTER SHALL APPLY TO
ALL MEMBERS OF THE COMBINED GROUP.
6. EVERY MEMBER OF THE COMBINED GROUP THAT IS SUBJECT TO TAX UNDER
THIS ARTICLE SHALL BE JOINTLY AND SEVERALLY LIABLE FOR THE TAX DUE
PURSUANT TO A COMBINED REPORT.
7. EACH COMBINED GROUP SHALL APPOINT A DESIGNATED AGENT FOR THE
COMBINED GROUP, WHICH SHALL BE A TAXPAYER. ONLY THE DESIGNATED AGENT MAY
ACT ON BEHALF OF THE MEMBERS OF THE COMBINED GROUP FOR MATTERS RELATING
TO THE COMBINED REPORT.
S 11-655 REPORTS. 1. EVERY CORPORATION HAVING AN OFFICER, AGENT OR
REPRESENTATIVE WITHIN THE CITY, SHALL ANNUALLY ON OR BEFORE MARCH
FIFTEENTH, TRANSMIT TO THE COMMISSIONER OF FINANCE A REPORT IN A FORM
PRESCRIBED BY THE COMMISSIONER OF FINANCE (EXCEPT THAT A CORPORATION
WHICH REPORTS ON THE BASIS OF A FISCAL YEAR SHALL TRANSMIT ITS REPORT
WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR),
SETTING FORTH SUCH INFORMATION AS THE COMMISSIONER OF FINANCE MAY
PRESCRIBE AND EVERY TAXPAYER WHICH CEASES TO DO BUSINESS IN THE CITY OR
TO BE SUBJECT TO THE TAX IMPOSED BY THIS SUBCHAPTER SHALL TRANSMIT TO
THE COMMISSIONER OF FINANCE A REPORT ON THE DATE OF SUCH CESSATION OR AT
SUCH OTHER TIME AS THE COMMISSIONER OF FINANCE MAY REQUIRE COVERING EACH
YEAR OR PERIOD FOR WHICH NO REPORT WAS THERETOFORE FILED. EVERY TAXPAYER
SHALL ALSO TRANSMIT SUCH OTHER REPORTS AND SUCH FACTS AND INFORMATION AS
THE COMMISSIONER OF FINANCE MAY REQUIRE IN THE ADMINISTRATION OF THIS
SUBCHAPTER. THE COMMISSIONER OF FINANCE MAY GRANT A REASONABLE EXTENSION
OF TIME FOR FILING REPORTS WHENEVER GOOD CAUSE EXISTS.
AN AUTOMATIC EXTENSION OF SIX MONTHS FOR THE FILING OF ITS ANNUAL
REPORT SHALL BE ALLOWED ANY TAXPAYER IF, WITHIN THE TIME PRESCRIBED BY
EITHER OF THE PRECEDING PARAGRAPHS, WHICHEVER IS APPLICABLE, SUCH
TAXPAYER FILES WITH THE COMMISSIONER OF FINANCE AN APPLICATION FOR
EXTENSION IN SUCH FORM AS THE COMMISSIONER OF FINANCE MAY PRESCRIBE BY
REGULATION AND PAYS ON OR BEFORE THE DATE OF SUCH FILING THE AMOUNT
PROPERLY ESTIMATED AS ITS TAX.
2. EVERY REPORT SHALL HAVE ANNEXED THERETO A CERTIFICATION BY THE
PRESIDENT, VICE-PRESIDENT, TREASURER, ASSISTANT TREASURER, CHIEF
ACCOUNTING OFFICER OR ANOTHER OFFICER OF THE TAXPAYER DULY AUTHORIZED SO
TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED THEREIN ARE TRUE. IN
THE CASE OF AN ASSOCIATION, WITHIN THE MEANING OF PARAGRAPH THREE OF
SECTION (A) OF SECTION SEVENTY-SEVEN HUNDRED ONE OF THE INTERNAL REVENUE
CODE, A PUBLICLY-TRADED PARTNERSHIP TREATED AS A CORPORATION FOR
PURPOSES OF THE INTERNAL REVENUE CODE PURSUANT TO SECTION SEVENTY-SEVEN
HUNDRED FOUR THEREOF AND ANY BUSINESS CONDUCTED BY A TRUSTEE OR TRUSTEES
WHEREIN INTEREST OR OWNERSHIP IS EVIDENCED BY CERTIFICATES OR OTHER
WRITTEN INSTRUMENTS, SUCH CERTIFICATION SHALL BE MADE BY ANY PERSON DULY
AUTHORIZED SO TO ACT ON BEHALF OF SUCH ASSOCIATION, PUBLICLY-TRADED
PARTNERSHIP OR BUSINESS. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON
A CERTIFICATION OF THE REPORT SHALL BE PRIMA FACIE EVIDENCE THAT SUCH
INDIVIDUAL IS AUTHORIZED TO SIGN AND CERTIFY THE REPORT ON BEHALF OF THE
CORPORATION. BLANK FORMS OF REPORTS SHALL BE FURNISHED BY THE COMMIS-
SIONER OF FINANCE, ON APPLICATION, BUT FAILURE TO SECURE SUCH A BLANK
SHALL NOT RELEASE ANY CORPORATION FROM THE OBLIGATION OF MAKING ANY
REPORT REQUIRED BY THIS SUBCHAPTER.
2-A. THE COMMISSIONER OF FINANCE MAY PRESCRIBE REGULATIONS AND
INSTRUCTIONS REQUIRING RETURNS OF INFORMATION TO BE MADE AND FILED IN
CONJUNCTION WITH THE REPORTS REQUIRED TO BE FILED PURSUANT TO THIS
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SECTION, RELATING TO PAYMENTS MADE TO SHAREHOLDERS OWNING, DIRECTLY OR
INDIRECTLY, INDIVIDUALLY OR IN THE AGGREGATE, MORE THAN FIFTY PERCENT OF
THE ISSUED CAPITAL STOCK OF THE TAXPAYER, WHERE SUCH PAYMENTS ARE TREAT-
ED AS PAYMENTS OF INTEREST IN THE COMPUTATION OF ENTIRE NET INCOME
REPORTED ON SUCH REPORTS.
3. IF THE AMOUNT OF TAXABLE INCOME OR OTHER BASIS OF TAX FOR ANY YEAR
OF ANY TAXPAYER AS RETURNED TO THE UNITED STATES TREASURY DEPARTMENT OR
THE NEW YORK STATE COMMISSIONER OF TAXATION AND FINANCE IS CHANGED OR
CORRECTED BY THE COMMISSIONER OF INTERNAL REVENUE OR OTHER OFFICER OF
THE UNITED STATES OR THE NEW YORK STATE COMMISSIONER OF TAXATION AND
FINANCE OR OTHER COMPETENT AUTHORITY, OR WHERE A RENEGOTIATION OF A
CONTRACT OR SUBCONTRACT WITH THE UNITED STATES OR THE STATE OF NEW YORK
RESULTS IN A CHANGE IN TAXABLE INCOME OR OTHER BASIS OF TAX, OR WHERE A
RECOVERY OF A WAR LOSS RESULTS IN A COMPUTATION OR RECOMPUTATION OF ANY
TAX IMPOSED BY THE UNITED STATES OR THE STATE OF NEW YORK, OR IF A
TAXPAYER, PURSUANT TO SUBSECTION (D) OF SECTION SIXTY-TWO HUNDRED THIR-
TEEN OF THE INTERNAL REVENUE CODE, EXECUTES A NOTICE OF WAIVER OF THE
RESTRICTIONS PROVIDED IN SUBSECTION (A) OF SAID SECTION, OR IF A TAXPAY-
ER, PURSUANT TO SUBSECTION (F) OF SECTION ONE THOUSAND EIGHTY-ONE OF THE
TAX LAW, EXECUTES A NOTICE OF WAIVER OF THE RESTRICTIONS PROVIDED IN
SUBSECTION (C) OF SAID SECTION, SUCH TAXPAYER SHALL REPORT SUCH CHANGED
OR CORRECTED TAXABLE INCOME OR OTHER BASIS OF TAX, OR THE RESULTS OF
SUCH RENEGOTIATION, OR SUCH COMPUTATION, OR RECOMPUTATION, OR SUCH
EXECUTION OF SUCH NOTICE OF WAIVER AND THE CHANGES OR CORRECTIONS OF THE
TAXPAYER'S FEDERAL OR NEW YORK STATE TAXABLE INCOME OR OTHER BASIS OF
TAX ON WHICH IT IS BASED, WITHIN NINETY DAYS (OR ONE HUNDRED TWENTY
DAYS, IN THE CASE OF A TAXPAYER MAKING A COMBINED REPORT UNDER THIS
SUBCHAPTER FOR SUCH YEAR) AFTER SUCH EXECUTION OR THE FINAL DETERMI-
NATION OF SUCH CHANGE OR CORRECTION OR RENEGOTIATION, OR SUCH COMPUTA-
TION, OR RECOMPUTATION, OR AS REQUIRED BY THE COMMISSIONER OF FINANCE,
AND SHALL CONCEDE THE ACCURACY OF SUCH DETERMINATION OR STATE WHEREIN IT
IS ERRONEOUS. THE ALLOWANCE OF A TENTATIVE CARRYBACK ADJUSTMENT BASED
UPON A NET OPERATING LOSS CARRYBACK OR NET CAPITAL LOSS CARRYBACK PURSU-
ANT TO SECTION SIXTY-FOUR HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE
SHALL BE TREATED AS A FINAL DETERMINATION FOR PURPOSES OF THIS SUBDIVI-
SION. ANY TAXPAYER FILING AN AMENDED RETURN WITH SUCH DEPARTMENT SHALL
ALSO FILE WITHIN NINETY DAYS (OR ONE HUNDRED TWENTY DAYS, IN THE CASE OF
A TAXPAYER MAKING A COMBINED REPORT UNDER THIS SUBCHAPTER FOR SUCH YEAR)
THEREAFTER AN AMENDED REPORT WITH THE COMMISSIONER OF FINANCE.
4. THE PROVISIONS OF SECTION 11-654.3 OF THIS SUBCHAPTER SHALL APPLY
TO COMBINED REPORTS.
5. IN CASE IT SHALL APPEAR TO THE COMMISSIONER OF FINANCE THAT ANY
AGREEMENT, UNDERSTANDING OR ARRANGEMENT EXISTS BETWEEN THE TAXPAYER AND
ANY OTHER CORPORATION OR ANY PERSON OR FIRM, WHEREBY THE ACTIVITY, BUSI-
NESS, INCOME OR CAPITAL OF THE TAXPAYER WITHIN THE CITY IS IMPROPERLY OR
INACCURATELY REFLECTED, THE COMMISSIONER OF FINANCE IS AUTHORIZED AND
EMPOWERED, IN ITS DISCRETION AND IN SUCH MANNER AS IT MAY DETERMINE, TO
ADJUST ITEMS OF INCOME, DEDUCTIONS AND CAPITAL, AND TO ELIMINATE ASSETS
IN COMPUTING ANY ALLOCATION PERCENTAGE PROVIDED ONLY THAT ANY INCOME
DIRECTLY TRACEABLE THERETO BE ALSO EXCLUDED FROM ENTIRE NET INCOME, SO
AS EQUITABLY TO DETERMINE THE TAX. WHERE (A) ANY TAXPAYER CONDUCTS ITS
ACTIVITY OR BUSINESS UNDER ANY AGREEMENT, ARRANGEMENT OR UNDERSTANDING
IN SUCH MANNER AS EITHER DIRECTLY OR INDIRECTLY TO BENEFIT ITS MEMBERS
OR STOCKHOLDERS, OR ANY OF THEM, OR ANY PERSON OR PERSONS DIRECTLY OR
INDIRECTLY INTERESTED IN SUCH ACTIVITY OR BUSINESS, BY ENTERING INTO ANY
TRANSACTION AT MORE OR LESS THAN A FAIR PRICE WHICH, BUT FOR SUCH AGREE-
A. 6009 165
MENT, ARRANGEMENT OR UNDERSTANDING, MIGHT HAVE BEEN PAID OR RECEIVED
THEREFOR, OR (B) ANY TAXPAYER, A SUBSTANTIAL PORTION OF WHOSE CAPITAL
STOCK IS OWNED EITHER DIRECTLY OR INDIRECTLY BY ANOTHER CORPORATION,
ENTERS INTO ANY TRANSACTION WITH SUCH OTHER CORPORATION ON SUCH TERMS AS
TO CREATE AN IMPROPER LOSS OR NET INCOME, THE COMMISSIONER OF FINANCE
MAY INCLUDE IN THE ENTIRE NET INCOME OF THE TAXPAYER THE FAIR PROFITS,
WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, THE TAXPAY-
ER MIGHT HAVE DERIVED FROM SUCH TRANSACTION. WHERE ANY TAXPAYER OWNS,
DIRECTLY OR INDIRECTLY, MORE THAN FIFTY PERCENT OF THE CAPITAL STOCK OF
ANOTHER CORPORATION SUBJECT TO TAX UNDER SECTION FIFTEEN HUNDRED TWO-A
OF THE TAX LAW AND FIFTY PERCENT OR LESS OF WHOSE GROSS RECEIPTS FOR THE
TAXABLE YEAR CONSIST OF PREMIUMS, THE COMMISSIONER OF FINANCE MAY
INCLUDE IN THE ENTIRE NET INCOME OF THE TAXPAYER, AS A DEEMED DISTRIB-
UTION, THE AMOUNT OF THE NET INCOME OF THE OTHER CORPORATION THAT IS IN
EXCESS OF ITS NET PREMIUM INCOME.
6. AN ACTION MAY BE BROUGHT AT ANY TIME BY THE CORPORATION COUNSEL AT
THE INSTANCE OF THE COMMISSIONER OF FINANCE TO COMPEL THE FILING OF
REPORTS DUE UNDER THIS SUBCHAPTER.
7. REPORTS SHALL BE PRESERVED FOR FIVE YEARS, AND THEREAFTER UNTIL THE
COMMISSIONER OF FINANCE ORDERS THEM TO BE DESTROYED.
8. WHERE THE STATE TAX COMMISSION CHANGES OR CORRECTS A TAXPAYER'S
SALES AND COMPENSATING USE TAX LIABILITY WITH RESPECT TO THE PURCHASE OR
USE OF ITEMS FOR WHICH A SALES OR COMPENSATING USE TAX CREDIT AGAINST
THE TAX IMPOSED BY THIS SUBCHAPTER WAS CLAIMED, THE TAXPAYER SHALL
REPORT SUCH CHANGE OR CORRECTION TO THE COMMISSIONER OF FINANCE WITHIN
NINETY DAYS OF THE FINAL DETERMINATION OF SUCH CHANGE OR CORRECTION, OR
AS REQUIRED BY THE COMMISSIONER OF FINANCE, AND SHALL CONCEDE THE ACCU-
RACY OF SUCH DETERMINATION OR STATE WHEREIN IT IS ERRONEOUS. ANY TAXPAY-
ER FILING AN AMENDED RETURN OR REPORT RELATING TO THE PURCHASE OR USE OF
SUCH ITEMS SHALL ALSO FILE WITHIN NINETY DAYS THEREAFTER A COPY OF SUCH
AMENDED RETURN OR REPORT WITH THE COMMISSIONER OF FINANCE.
S 11-656 PAYMENT AND LIEN OF TAX. 1. TO THE EXTENT THE TAX IMPOSED BY
SECTION 11-653 OF THIS SUBCHAPTER SHALL NOT HAVE BEEN PREVIOUSLY PAID
PURSUANT TO SECTION 11-658 OF THIS SUBCHAPTER:
(A) SUCH TAX, OR THE BALANCE THEREOF, SHALL BE PAYABLE TO THE COMMIS-
SIONER OF FINANCE IN FULL AT THE TIME THE REPORT IS REQUIRED TO BE
FILED; AND
(B) SUCH TAX, OR THE BALANCE THEREOF, IMPOSED ON ANY TAXPAYER WHICH
CEASES TO DO BUSINESS IN THE CITY OR TO BE SUBJECT TO THE TAX IMPOSED BY
THIS SUBCHAPTER SHALL BE PAYABLE TO THE COMMISSIONER OF FINANCE AT THE
TIME THE REPORT IS REQUIRED TO BE FILED; ALL OTHER TAXES OF ANY SUCH
TAXPAYER, WHICH PURSUANT TO THE FOREGOING PROVISIONS OF THIS SECTION
WOULD OTHERWISE BE PAYABLE SUBSEQUENT TO THE TIME SUCH REPORT IS
REQUIRED TO BE FILED, SHALL NEVERTHELESS BE PAYABLE AT SUCH TIME.
IF THE TAXPAYER, WITHIN THE TIME PRESCRIBED BY SECTION 11-655 OF THIS
SUBCHAPTER, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME TO
FILE ITS ANNUAL REPORT AND SHALL HAVE PAID TO THE COMMISSIONER OF
FINANCE ON OR BEFORE THE DATE SUCH APPLICATION IS FILED AN AMOUNT PROP-
ERLY ESTIMATED AS PROVIDED BY SAID SECTION, THE ONLY AMOUNT PAYABLE IN
ADDITION TO THE TAX SHALL BE INTEREST AT THE UNDERPAYMENT RATE SET BY
THE COMMISSIONER OF FINANCE PURSUANT TO SECTION 11-687 OF THIS CHAPTER,
OR, IF NO RATE IS SET, AT THE RATE OF SEVEN AND ONE-HALF PERCENT PER
ANNUM UPON THE AMOUNT BY WHICH THE TAX, OR THE PORTION THEREOF PAYABLE
ON OR BEFORE THE DATE THE REPORT WAS REQUIRED TO BE FILED, EXCEEDS THE
AMOUNT SO PAID. FOR PURPOSES OF THE PRECEDING SENTENCE:
A. 6009 166
(1) AN AMOUNT SO PAID SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS
EITHER: (I) NOT LESS THAN NINETY PERCENT OF THE TAX AS FINALLY DETER-
MINED, OR (II) NOT LESS THAN THE TAX SHOWN ON THE TAXPAYER'S REPORT FOR
THE PRECEDING TAXABLE YEAR, IF SUCH PRECEDING YEAR WAS A TAXABLE YEAR OF
TWELVE MONTHS; AND
(2) THE TIME WHEN A REPORT IS REQUIRED TO BE FILED SHALL BE DETERMINED
WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH REPORT.
2. THE COMMISSIONER OF FINANCE MAY GRANT A REASONABLE EXTENSION OF
TIME FOR PAYMENT OF ANY TAX IMPOSED BY THIS SUBCHAPTER UNDER SUCH CONDI-
TIONS AS THE COMMISSIONER OF FINANCE DEEMS JUST AND PROPER.
3. INTENTIONALLY OMITTED.
S 11-657 DECLARATION OF ESTIMATED TAX. 1. EVERY TAXPAYER SUBJECT TO
THE TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER SHALL MAKE A DECLA-
RATION OF ITS ESTIMATED TAX FOR THE CURRENT PRIVILEGE PERIOD, CONTAINING
SUCH INFORMATION AS THE COMMISSIONER OF FINANCE MAY PRESCRIBE BY REGU-
LATIONS OR INSTRUCTIONS, IF SUCH ESTIMATED TAX CAN REASONABLY BE
EXPECTED TO EXCEED ONE THOUSAND DOLLARS.
2. THE TERM "ESTIMATED TAX" MEANS THE AMOUNT WHICH A TAXPAYER ESTI-
MATES TO BE THE TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER FOR THE
CURRENT PRIVILEGE PERIOD, LESS THE AMOUNT WHICH IT ESTIMATES TO BE THE
SUM OF ANY CREDITS ALLOWABLE AGAINST THE TAX.
3. IN THE CASE OF A TAXPAYER WHICH REPORTS ON THE BASIS OF A CALENDAR
YEAR, A DECLARATION OF ESTIMATED TAX SHALL BE FILED ON OR BEFORE JUNE
FIFTEENTH OF THE CURRENT PRIVILEGE PERIOD, EXCEPT THAT IF THE REQUIRE-
MENTS OF SUBDIVISION ONE OF THIS SECTION ARE FIRST MET:
(A) AFTER MAY THIRTY-FIRST AND BEFORE SEPTEMBER FIRST OF SUCH CURRENT
PRIVILEGE PERIOD, THE DECLARATION SHALL BE FILED ON OR BEFORE SEPTEMBER
FIFTEENTH; OR
(B) AFTER AUGUST THIRTY-FIRST AND BEFORE DECEMBER FIRST OF SUCH
CURRENT PRIVILEGE PERIOD, THE DECLARATION SHALL BE FILED ON OR BEFORE
DECEMBER FIFTEENTH.
4. A TAXPAYER MAY AMEND A DECLARATION UNDER REGULATIONS OF THE COMMIS-
SIONER OF FINANCE.
5. IF, ON OR BEFORE FEBRUARY FIFTEENTH OF THE SUCCEEDING YEAR IN THE
CASE OF A TAXPAYER WHICH REPORTS ON THE BASIS OF A CALENDAR YEAR, A
TAXPAYER FILES ITS REPORT FOR THE YEAR FOR WHICH THE DECLARATION IS
REQUIRED, AND PAYS THEREWITH THE BALANCE, IF ANY, OF THE FULL AMOUNT OF
THE TAX SHOWN TO BE DUE ON THE REPORT:
(A) SUCH REPORT SHALL BE CONSIDERED AS ITS DECLARATION IF NO DECLARA-
TION IS REQUIRED TO BE FILED DURING THE CALENDAR OR FISCAL YEAR FOR
WHICH THE TAX WAS IMPOSED, BUT IS OTHERWISE REQUIRED TO BE FILED ON OR
BEFORE DECEMBER FIFTEENTH PURSUANT TO SUBDIVISION THREE OF THIS SECTION;
AND
(B) SUCH REPORT SHALL BE CONSIDERED AS THE AMENDMENT PERMITTED BY
SUBDIVISION FOUR OF THIS SECTION TO BE FILED ON OR BEFORE DECEMBER
FIFTEENTH IF THE TAX SHOWN ON THE REPORT IS GREATER THAN THE ESTIMATED
TAX SHOWN ON A DECLARATION PREVIOUSLY MADE.
6. THIS SECTION SHALL APPLY TO PRIVILEGE PERIODS OF TWELVE MONTHS
OTHER THAN A CALENDAR YEAR BY THE SUBSTITUTION OF THE MONTHS OF SUCH
FISCAL YEAR FOR THE CORRESPONDING MONTHS SPECIFIED IN THIS SECTION.
7. IF THE PRIVILEGE PERIOD FOR WHICH A TAX IS IMPOSED BY SECTION
11-653 OF THIS SUBCHAPTER IS LESS THAN TWELVE MONTHS, EVERY TAXPAYER
REQUIRED TO MAKE A DECLARATION OF ESTIMATED TAX FOR SUCH PRIVILEGE PERI-
OD SHALL MAKE SUCH A DECLARATION IN ACCORDANCE WITH REGULATIONS OF THE
COMMISSIONER OF FINANCE.
A. 6009 167
8. THE COMMISSIONER OF FINANCE MAY GRANT A REASONABLE EXTENSION OF
TIME, NOT TO EXCEED THREE MONTHS, FOR THE FILING OF ANY DECLARATION
REQUIRED PURSUANT TO THIS SECTION, ON SUCH TERMS AND CONDITIONS AS IT
MAY REQUIRE.
S 11-658 PAYMENTS ON ACCOUNT OF ESTIMATED TAX. 1. EVERY TAXPAYER
SUBJECT TO THE TAX IMPOSED BY SECTION 11-653 OF THIS SUBCHAPTER SHALL
PAY WITH THE REPORT REQUIRED TO BE FILED FOR THE PRECEDING PRIVILEGE
PERIOD, IF ANY, OR WITH AN APPLICATION FOR EXTENSION OF THE TIME AND
FILING SUCH REPORT, AN AMOUNT EQUAL TO TWENTY-FIVE PER CENTUM OF THE
PRECEDING YEAR'S TAX IF SUCH PRECEDING YEAR'S TAX EXCEEDED ONE THOUSAND
DOLLARS.
2. THE ESTIMATED TAX WITH RESPECT TO WHICH A DECLARATION FOR SUCH
PRIVILEGE PERIOD IS REQUIRED SHALL BE PAID, IN THE CASE OF A TAXPAYER
WHICH REPORTS ON THE BASIS OF A CALENDAR YEAR, AS FOLLOWS:
(A) IF THE DECLARATION IS FILED ON OR BEFORE JUNE FIFTEENTH, THE ESTI-
MATED TAX SHOWN THEREON, AFTER APPLYING THERETO THE AMOUNT, IF ANY, PAID
DURING THE SAME PRIVILEGE PERIOD PURSUANT TO SUBDIVISION ONE OF THIS
SECTION, SHALL BE PAID IN THREE EQUAL INSTALLMENTS. ONE OF SUCH INSTALL-
MENTS SHALL BE PAID AT THE TIME OF THE FILING OF THE DECLARATION, ONE
SHALL BE PAID ON THE FOLLOWING SEPTEMBER FIFTEENTH, AND ONE ON THE
FOLLOWING DECEMBER FIFTEENTH.
(B) IF THE DECLARATION IS FILED AFTER JUNE FIFTEENTH AND NOT AFTER
SEPTEMBER FIFTEENTH OF SUCH PRIVILEGE PERIOD, AND IS NOT REQUIRED TO BE
FILED ON OR BEFORE JUNE FIFTEENTH OF SUCH PERIOD, THE ESTIMATED TAX
SHOWN ON SUCH DECLARATION, AFTER APPLYING THERETO THE AMOUNT, IF ANY,
PAID DURING THE SAME PRIVILEGE PERIOD PURSUANT TO SUBDIVISION ONE OF
THIS SECTION, SHALL BE PAID IN TWO EQUAL INSTALLMENTS. ONE OF SUCH
INSTALLMENTS SHALL BE PAID AT THE TIME OF THE FILING OF THE DECLARATION
AND ONE SHALL BE PAID ON THE FOLLOWING DECEMBER FIFTEENTH.
(C) IF THE DECLARATION IS FILED AFTER SEPTEMBER FIFTEENTH OF SUCH
PRIVILEGE PERIOD, AND IS NOT REQUIRED TO BE FILED ON OR BEFORE SEPTEMBER
FIFTEENTH OF SUCH PRIVILEGE PERIOD, THE ESTIMATED TAX SHOWN ON SUCH
DECLARATION, AFTER APPLYING THERETO THE AMOUNT, IF ANY, PAID IN RESPECT
TO SUCH PRIVILEGE PERIOD PURSUANT TO SUBDIVISION ONE OF THIS SECTION,
SHALL BE PAID IN FULL AT THE TIME OF THE FILING OF THE DECLARATION.
(D) IF THE DECLARATION IS FILED AFTER THE TIME PRESCRIBED THEREFOR, OR
AFTER THE EXPIRATION OF ANY EXTENSION OF TIME THEREFOR, PARAGRAPHS (B)
AND (C) OF THIS SUBDIVISION SHALL NOT APPLY, AND THERE SHALL BE PAID AT
THE TIME OF SUCH FILING ALL INSTALLMENTS OF ESTIMATED TAX PAYABLE AT OR
BEFORE SUCH TIME, AND THE REMAINING INSTALLMENTS SHALL BE PAID AT THE
TIMES AT WHICH, AND IN THE AMOUNTS IN WHICH, THEY WOULD HAVE BEEN PAYA-
BLE IF THE DECLARATION HAD BEEN FILED WHEN DUE.
3. IF ANY AMENDMENT OF A DECLARATION IS FILED, THE REMAINING INSTALL-
MENTS, IF ANY, SHALL BE RATABLY INCREASED OR DECREASED (AS THE CASE MAY
BE) TO REFLECT ANY INCREASE OR DECREASE IN THE ESTIMATED TAX BY REASON
OF SUCH AMENDMENT, AND IF ANY AMENDMENT IS MADE AFTER SEPTEMBER
FIFTEENTH OF THE PRIVILEGE PERIOD, ANY INCREASE IN THE ESTIMATED TAX BY
REASON THEREOF SHALL BE PAID AT THE TIME OF MAKING SUCH AMENDMENT.
4. ANY AMOUNT PAID SHALL BE APPLIED AFTER PAYMENT AS A FIRST INSTALL-
MENT AGAINST THE ESTIMATED TAX OF THE TAXPAYER FOR THE CURRENT PRIVILEGE
PERIOD SHOWN ON THE DECLARATION REQUIRED TO BE FILED PURSUANT TO SECTION
11-657 OF THIS SUBCHAPTER OR, IF NO DECLARATION OF ESTIMATED TAX IS
REQUIRED TO BE FILED BY THE TAXPAYER PURSUANT TO SUCH SECTION, ANY SUCH
AMOUNT SHALL BE CONSIDERED A PAYMENT ON ACCOUNT OF THE TAX SHOWN ON THE
REPORT REQUIRED TO BE FILED BY THE TAXPAYER FOR SUCH PRIVILEGE PERIOD.
A. 6009 168
5. NOTWITHSTANDING THE PROVISIONS OF SECTION 11-679 OF THIS CHAPTER OR
OF SECTION THREE-A OF THE GENERAL MUNICIPAL LAW, IF AN AMOUNT PAID
PURSUANT TO SUBDIVISION ONE OF THIS SECTION EXCEEDS THE TAX SHOWN ON THE
REPORT REQUIRED TO BE FILED BY THE TAXPAYER FOR THE PRIVILEGE PERIOD
DURING WHICH THE AMOUNT WAS PAID, INTEREST SHALL BE ALLOWED AND PAID ON
THE AMOUNT BY WHICH THE AMOUNT SO PAID PURSUANT TO SUCH SUBDIVISION
EXCEEDS SUCH TAX, AT THE OVERPAYMENT RATE SET BY THE COMMISSIONER OF
FINANCE PURSUANT TO SECTION 11-687 OF THIS CHAPTER, OR, IF NO RATE IS
SET, AT THE RATE OF FOUR PERCENT PER ANNUM FROM THE DATE OF PAYMENT OF
THE AMOUNT SO PAID PURSUANT TO SUCH SUBDIVISION TO THE FIFTEENTH DAY OF
THE THIRD MONTH FOLLOWING THE CLOSE OF THE PRIVILEGE PERIOD, PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE ALLOWED OR PAID UNDER THIS SUBDIVI-
SION IF THE AMOUNT THEREOF IS LESS THAN ONE DOLLAR OR IF SUCH INTEREST
BECOMES PAYABLE SOLELY BECAUSE OF A CARRYBACK OF A NET OPERATING LOSS IN
A SUBSEQUENT PRIVILEGE PERIOD.
6. AS USED IN THIS SECTION, "THE PRECEDING YEAR'S TAX" MEANS THE TAX
IMPOSED UPON THE TAXPAYER BY SECTION 11-653 OF THIS SUBCHAPTER FOR THE
PRECEDING CALENDAR OR FISCAL YEAR, OR, FOR PURPOSES OF COMPUTING THE
FIRST INSTALLMENT OF ESTIMATED TAX WHEN AN APPLICATION HAS BEEN FILED
FOR EXTENSION OF THE TIME FOR FILING THE REPORT REQUIRED TO BE FILED FOR
SUCH PRECEDING CALENDAR OR FISCAL YEAR, THE AMOUNT PROPERLY ESTIMATED
PURSUANT TO SECTION 11-657 OF THIS SUBCHAPTER AS THE TAX IMPOSED UPON
THE TAXPAYER FOR SUCH CALENDAR OR FISCAL YEAR.
7. THIS SECTION SHALL APPLY TO A PRIVILEGE PERIOD OF LESS THAN TWELVE
MONTHS IN ACCORDANCE WITH REGULATIONS OF THE COMMISSIONER OF FINANCE.
8. THE PROVISIONS OF THIS SECTION SHALL APPLY TO PRIVILEGE PERIODS OF
TWELVE MONTHS OTHER THAN A CALENDAR YEAR BY THE SUBSTITUTION OF THE
MONTHS OF SUCH FISCAL YEAR FOR THE CORRESPONDING MONTHS SPECIFIED IN
SUCH PROVISIONS.
9. THE COMMISSIONER OF FINANCE MAY GRANT A REASONABLE EXTENSION OF
TIME, NOT TO EXCEED SIX MONTHS, FOR PAYMENT OF ANY INSTALLMENT OF ESTI-
MATED TAX REQUIRED PURSUANT TO THIS SECTION, ON SUCH TERMS AND CONDI-
TIONS AS THE COMMISSIONER OF FINANCE MAY REQUIRE INCLUDING THE FURNISH-
ING OF A BOND OR OTHER SECURITY BY THE TAXPAYER IN AN AMOUNT NOT
EXCEEDING TWICE THE AMOUNT FOR WHICH ANY EXTENSION OF TIME FOR PAYMENT
IS GRANTED, PROVIDED HOWEVER THAT INTEREST AT THE UNDERPAYMENT RATE SET
BY THE COMMISSIONER OF FINANCE PURSUANT TO SECTION 11-687 OF THIS
SUBCHAPTER, OR, IF NO RATE IS SET, AT THE RATE OF SEVEN AND ONE-HALF
PERCENT PER ANNUM FOR THE PERIOD OF THE EXTENSION SHALL BE CHARGED AND
COLLECTED ON THE AMOUNT FOR WHICH ANY EXTENSION OF TIME FOR PAYMENT IS
GRANTED UNDER THIS SUBDIVISION.
10. A TAXPAYER MAY ELECT TO PAY ANY INSTALLMENT OF ESTIMATED TAX PRIOR
TO THE DATE PRESCRIBED IN THIS SECTION FOR PAYMENT THEREOF.
11. INTENTIONALLY OMITTED.
S 11-659 COLLECTION OF TAXES. EVERY FOREIGN CORPORATION (OTHER THAN A
MONEYED CORPORATION) SUBJECT TO THE PROVISIONS OF THIS SUBCHAPTER,
EXCEPT A CORPORATION HAVING AUTHORITY TO DO BUSINESS BY VIRTUE OF
SECTION THIRTEEN HUNDRED FIVE OF THE BUSINESS CORPORATION LAW, SHALL
FILE IN THE DEPARTMENT OF STATE A CERTIFICATE OF DESIGNATION IN ITS
CORPORATE NAME, SIGNED AND ACKNOWLEDGED BY ITS PRESIDENT OR A VICE-PRE-
SIDENT OR ITS SECRETARY OR TREASURER, UNDER ITS CORPORATE SEAL, DESIG-
NATING THE SECRETARY OF STATE AS ITS AGENT UPON WHOM PROCESS IN ANY
ACTION PROVIDED FOR BY THIS SUBCHAPTER MAY BE SERVED WITHIN THIS STATE,
AND SETTING FORTH AN ADDRESS TO WHICH THE SECRETARY OF STATE SHALL MAIL
A COPY OF ANY SUCH PROCESS AGAINST THE CORPORATION WHICH MAY BE SERVED
UPON THE SECRETARY OF STATE. IN CASE ANY SUCH CORPORATION SHALL HAVE
A. 6009 169
FAILED TO FILE SUCH CERTIFICATE OF DESIGNATION, IT SHALL BE DEEMED TO
HAVE DESIGNATED THE SECRETARY OF STATE AS ITS AGENT UPON WHOM SUCH PROC-
ESS AGAINST IT MAY BE SERVED; AND UNTIL A CERTIFICATE OF DESIGNATION
SHALL HAVE BEEN FILED THE CORPORATION SHALL BE DEEMED TO HAVE DIRECTED
THE SECRETARY OF STATE TO MAIL COPIES OF PROCESS SERVED UPON HIM OR HER
TO THE CORPORATION AT ITS LAST KNOWN OFFICE ADDRESS WITHIN OR WITHOUT
THE STATE. WHEN A CERTIFICATE OF DESIGNATION HAS BEEN FILED BY SUCH
CORPORATION THE SECRETARY OF STATE SHALL MAIL COPIES OF PROCESS THERE-
AFTER SERVED UPON THE SECRETARY OF STATE TO THE ADDRESS SET FORTH IN
SUCH CERTIFICATE. ANY SUCH CORPORATION, FROM TIME TO TIME, MAY CHANGE
THE ADDRESS TO WHICH THE SECRETARY OF STATE IS DIRECTED TO MAIL COPIES
OF PROCESS, BY FILING A CERTIFICATE TO THAT EFFECT EXECUTED, SIGNED AND
ACKNOWLEDGED IN LIKE MANNER AS A CERTIFICATE OF DESIGNATION AS HEREIN
PROVIDED. SERVICE OF PROCESS UPON ANY SUCH CORPORATION OR UPON ANY
CORPORATION HAVING A CERTIFICATE OF AUTHORITY UNDER SECTION EIGHT
HUNDRED FIVE OF THE LIMITED LIABILITY COMPANY LAW OR HAVING AUTHORITY TO
DO BUSINESS BY VIRTUE OF SECTION THIRTEEN HUNDRED FIVE OF THE BUSINESS
CORPORATION LAW, IN ANY ACTION COMMENCED AT ANY TIME PURSUANT TO THE
PROVISIONS OF THIS SUBCHAPTER, MAY BE MADE BY EITHER: (A) PERSONALLY
DELIVERING TO AND LEAVING WITH THE SECRETARY OF STATE, A DEPUTY SECRE-
TARY OF STATE OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO
RECEIVE SUCH SERVICE DUPLICATE COPIES THEREOF AT THE OFFICE OF THE
DEPARTMENT OF STATE IN THE CITY OF ALBANY, IN WHICH EVENT THE SECRETARY
OF STATE SHALL FORTHWITH SEND BY REGISTERED MAIL, RETURN RECEIPT
REQUESTED, ONE OF SUCH COPIES TO THE CORPORATION AT THE ADDRESS DESIG-
NATED BY IT OR AT ITS LAST KNOWN OFFICE ADDRESS WITHIN OR WITHOUT THE
STATE, OR (B) PERSONALLY DELIVERING TO AND LEAVING WITH THE SECRETARY OF
STATE, A DEPUTY SECRETARY OF STATE OR WITH ANY PERSON AUTHORIZED BY THE
SECRETARY OF STATE TO RECEIVE SUCH SERVICE, A COPY THEREOF AT THE OFFICE
OF THE DEPARTMENT OF STATE IN THE CITY OF ALBANY AND BY DELIVERING A
COPY THEREOF TO, AND LEAVING SUCH COPY WITH, THE PRESIDENT, VICE-PRESI-
DENT, SECRETARY, ASSISTANT SECRETARY, TREASURER, ASSISTANT TREASURER, OR
CASHIER OF SUCH CORPORATION, OR THE OFFICER PERFORMING CORRESPONDING
FUNCTIONS UNDER ANOTHER NAME, OR A DIRECTOR OR MANAGING AGENT OF SUCH
CORPORATION, PERSONALLY WITHOUT THE STATE. PROOF OF SUCH PERSONAL
SERVICE WITHOUT THE STATE SHALL BE FILED WITH THE CLERK OF THE COURT IN
WHICH THE ACTION IS PENDING WITHIN THIRTY DAYS AFTER SUCH SERVICE, AND
SUCH SERVICE SHALL BE COMPLETE TEN DAYS AFTER PROOF THEREOF IS FILED.
S 11-660 LIMITATIONS OF TIME. THE PROVISIONS OF THE CIVIL PRACTICE LAW
AND RULES RELATIVE TO THE LIMITATION OF TIME ENFORCING A CIVIL REMEDY
SHALL NOT APPLY TO ANY PROCEEDING OR ACTION TAKEN TO LEVY, APPRAISE,
ASSESS, DETERMINE OR ENFORCE THE COLLECTION OF ANY TAX OR PENALTY
PRESCRIBED BY THIS SUBCHAPTER, PROVIDED, HOWEVER, THAT AS TO REAL ESTATE
IN THE HANDS OF PERSONS WHO ARE OWNERS THEREOF WHO WOULD BE PURCHASERS
IN GOOD FAITH BUT FOR SUCH TAX OR PENALTY AND AS TO THE LIEN ON REAL
ESTATE OF MORTGAGES HELD BY PERSONS WHO WOULD BE HOLDERS THEREOF IN GOOD
FAITH BUT FOR SUCH TAX OR PENALTY, ALL SUCH TAXES AND PENALTIES SHALL
CEASE TO BE A LIEN ON SUCH REAL ESTATE AS AGAINST SUCH PURCHASERS OR
HOLDERS AFTER THE EXPIRATION OF TEN YEARS FROM THE DATE SUCH TAXES
BECAME DUE AND PAYABLE. THE LIMITATIONS HEREIN PROVIDED FOR SHALL NOT
APPLY TO ANY TRANSFER FROM A CORPORATION TO A PERSON OR CORPORATION WITH
INTENT TO AVOID PAYMENT OF ANY TAXES, OR WHERE WITH LIKE INTENT THE
TRANSFER IS MADE TO A GRANTEE CORPORATION, OR ANY SUBSEQUENT GRANTEE
CORPORATION, CONTROLLED BY SUCH GRANTOR OR WHICH HAS ANY COMMUNITY OF
INTEREST WITH IT, EITHER THROUGH STOCK OWNERSHIP OR OTHERWISE.
A. 6009 170
S 2. Subparagraph (A) of paragraph 2 of subdivision (f) of section
11-508 of the administrative code of the city of New York, as added by
chapter 485 of the laws of 1994, is amended to read as follows:
(A) In the case of an issuer or obligor subject to tax under subchap-
ter two OR THREE-A of chapter six of this title, or subject to tax as a
utility corporation under chapter eleven of this title, the issuer's
allocation percentage shall be the percentage of the appropriate measure
(as defined hereinafter) which is required to be allocated within the
city on the report or reports, if any, required of the issuer or obligor
under chapter six or eleven of this title for the preceding year. The
appropriate measure referred to in the preceding sentence shall be: in
the case of an issuer or obligor subject to subchapter two OR THREE-A of
chapter six of this title, entire capital; and in the case of an issuer
or obligor subject to chapter eleven of this title as a utility corpo-
ration, gross income.
S 3. The administrative code of the city of New York is amended by
adding a new section 11-602.1 to read as follows:
S 11-602.1 APPLICATION OF THIS SUBCHAPTER. 1. FOR TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, THE TAX IMPOSED
UNDER THIS SUBCHAPTER SHALL ONLY APPLY TO A CORPORATION THAT (A) HAS AN
ELECTION IN EFFECT UNDER SUBSECTION (A) OF SECTION THIRTEEN HUNDRED
SIXTY-TWO OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (B) IS A
QUALIFIED SUBCHAPTER S SUBSIDIARY WITHIN THE MEANING OF PARAGRAPH THREE
OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED.
2. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
FIFTEEN, THE TAX IMPOSED UNDER THIS SUBCHAPTER SHALL NOT APPLY TO A
CORPORATION THAT IS NOT DESCRIBED IN SUBDIVISION ONE OF THIS SECTION
EXCEPT TO THE EXTENT PROVIDED IN SUBCHAPTER THREE-A OF THIS CHAPTER.
3. CROSS-REFERENCE. FOR THE TAXATION OF CORPORATIONS THAT ARE NOT
DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, THAT WERE TAXABLE UNDER
THIS SUBCHAPTER FOR TAX YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND FIFTEEN, SEE SUBCHAPTER THREE-A OF THIS CHAPTER.
S 4. Subdivision (a) of section 11-639 of the administrative code of
the city of New York is amended to read as follows:
(a) (1) For the privilege of doing business in the city in a corporate
or organized capacity, a tax, computed under section 11-643 of this
part, is hereby annually imposed on every banking corporation for each
of its taxable years, or any part thereof, beginning on or after January
first, nineteen hundred seventy-three AND ENDING DECEMBER THIRTY-FIRST,
TWO THOUSAND FOURTEEN.
(2) FOR THE PRIVILEGE OF DOING BUSINESS IN THE CITY IN A CORPORATE OR
ORGANIZED CAPACITY, A TAX, COMPUTED UNDER SECTION 11-643 OF THIS PART,
IS HEREBY ANNUALLY IMPOSED ON EVERY BANKING CORPORATION FOR EACH TAXABLE
YEAR, OR ANY PART THEREOF, COMMENCING ON OR AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, WHERE SUCH BANKING CORPORATION (I) HAS AN ELECTION IN
EFFECT UNDER SUBSECTION (A) OF SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (II) IS A QUALIFIED
SUBCHAPTER S SUBSIDIARY WITHIN THE MEANING OF PARAGRAPH THREE OF
SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED.
S 5. Section 11-639 of the administrative code of the city of New York
is amended by adding a new subdivision (d) to read as follows:
(D) CROSS-REFERENCE. FOR THE TAXATION OF CORPORATIONS THAT ARE NOT
DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (A) OF THIS SECTION, THAT WERE
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TAXABLE UNDER THIS SUBCHAPTER FOR TAX YEARS BEGINNING BEFORE JANUARY
FIRST, TWO THOUSAND FIFTEEN, SEE SUBCHAPTER THREE-A OF THIS CHAPTER.
S 6. Paragraph 2 of subdivision (b) of section 11-641 of the adminis-
trative code of the city of New York, as amended by chapter 525 of the
laws of 1988, is amended to read as follows:
(2) taxes on or measured by income or profits paid or accrued within
the taxable year to the United States, or any of its possessions or to
any foreign country and taxes imposed under article nine, nine-A, thir-
teen-A or thirty-two of the tax law AS IN EFFECT ON DECEMBER
THIRTY-FIRST, TWO THOUSAND FOURTEEN and any tax imposed under this part
or subchapter two OR THREE-A of this chapter;
S 7. Subdivision 1 and paragraph (a) of subdivision 2 of section
11-671 of the administrative code of the city of New York are amended to
read as follows:
1. General. The provisions of this subchapter shall apply to the
administration of and the procedures with respect to the taxes imposed
by subchapters two, three, THREE-A and four of this chapter.
(a) the term "named subchapters" means subchapters two, threeOR
THREE-A and four of this chapter;
S 8. Paragraph (a) of subdivision 5 and subdivisions 7, 8 and 9 of
section 11-672 of the administrative code of the city of New York, para-
graph (a) of subdivision 5 as amended by chapter 525 of the laws of
1988, and paragraph (b) of subdivision 9 as amended by chapter 808 of
the laws of 1992, are amended to read as follows:
(a) If the taxpayer fails to comply with subchapter two [or], three OR
THREE-A of this chapter in not reporting a change or correction or rene-
gotiation, or computation or recomputation of tax, increasing or
decreasing its federal or New York state taxable income, alternative
minimum taxable income or other basis of tax as reported on its federal
or New York state income tax return or in not reporting a change or
correction or renegotiation, or computation or recomputation of tax,
which is treated in the same manner as if it were a deficiency for
federal or New York state income tax purposes or in not filing an
amended return or in not reporting the execution of a notice of waiver
executed pursuant to subsection (d) of section six thousand two hundred
thirteen of the internal revenue code or pursuant to subdivision (f) of
section one thousand eighty-one of the tax law, instead of the mode and
time of assessment provided for in subdivision two of this section, the
commissioner of finance may assess a deficiency based upon such
increased or decreased federal or New York state taxable income, alter-
native minimum taxable income or other basis of tax by mailing to the
taxpayer a notice of additional tax due specifying the amount of the
deficiency, and such deficiency, together with the interest, additions
to tax and penalties stated in such notice, shall be deemed assessed on
the date such notice is mailed unless within thirty days after the mail-
ing of such notice a report of the federal or New York state change or
correction or renegotiation, or computation or recomputation of tax, or
an amended return, where such return was required by subchapter two
[or], three OR THREE-A, is filed accompanied by a statement showing
wherein such federal or New York state determination and such notice of
additional tax due are erroneous.
7. Two or more corporations. In case of a combined return under
subchapter two OR THREE-A or a consolidated return under subchapter
three of two or more corporations, the commissioner of finance may
determine a deficiency of tax under subchapter two [or subchapter],
three OR THREE-A of this chapter with respect to the entire tax due upon
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such return against any taxpayer included therein. In the case of a
taxpayer which might have been included in such a return under subchap-
ter two [or subchapter], three OR THREE-A of this chapter when the tax
was originally reported, the commissioner of finance may determine a
deficiency of tax under subchapter two [or], three OR THREE-A of this
chapter against such taxpayer and against any other taxpayers which
might have been included in such a return.
8. Deficiency defined. For the purposes of this subchapter, a defi-
ciency means the amount of the tax imposed by the named subchapters, or
any of them, less: (a) the amount shown as the tax upon the taxpayer's
return (whether the return was made or the tax computed by it or by the
commissioner of finance), and less (b) the amounts previously assessed
(or collected without assessment) as a deficiency and plus (c) the
amount of any rebates. For the purpose of this definition, the tax
imposed by subchapter two [or], three OR THREE-A of this chapter and the
tax shown on the return shall both be determined without regard to any
payment of estimated tax; and a rebate means so much of an abatement,
credit, refund or other repayment (whether or not erroneous) as was made
on the ground that the amounts entering into the definition of a defi-
ciency showed a balance in favor of the taxpayer.
9. Exception where change or correction of sales and compensating use
tax liability is not reported.
(a) If a taxpayer fails to comply with subchapter two OR THREE-A of
this chapter in not reporting a change or correction of its sales and
compensating use tax liability or in not filing a copy of an amended
return or report relating to its sales and compensating use tax liabil-
ity, instead of the mode and time of assessment provided for in subdivi-
sion two of this section, the commissioner of finance may assess a defi-
ciency based upon such changed or corrected sales and compensating use
tax liability, as same relates to credits claimed under subchapter two
OR THREE-A of this chapter, by mailing to the taxpayer a notice of addi-
tional tax due specifying the amount of the deficiency, and such defi-
ciency, together with the interest, additions to tax and penalties stat-
ed in such notice, shall be deemed assessed on the date such notice is
mailed unless within thirty days after the mailing of such notice a
report of the state change or correction or a copy of an amended return
or report, where such copy was required by subchapter two OR THREE-A, is
filed accompanied by a statement showing wherein such state determi-
nation and such notice of additional tax due are erroneous.
(b) Such notice shall not be considered as a notice of deficiency for
the purposes of this section, subdivision six of section 11-678 (limit-
ing credits or refunds after petition to the tax appeals tribunal), or
subdivision two of section 11-680 (authorizing the filing of a petition
with the tax appeals tribunal based on a notice of deficiency), nor
shall such assessment or the collection thereof be prohibited by the
provisions of subdivision three of this section.
(c) If the taxpayer has terminated its existence, a notice of addi-
tional tax due may be mailed to its last known address in or out of the
city, and such notice shall be sufficient for purposes of this subchap-
ter. If the commissioner of finance has received notice that a person is
acting for the taxpayer in a fiduciary capacity, a copy of such notice
shall also be mailed to the fiduciary named in such notice.
S 9. Subdivisions 1 and 3 of section 11-673 of the administrative code
of the city of New York, the first undesignated paragraph of subdivision
1 as amended by chapter 808 of the laws of 1992, are amended to read as
follows:
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1. Assessment date. The amount of tax which a return shows to be due,
or the amount of tax which a return would have shown to be due but for a
mathematical error, shall be deemed to be assessed on the date of filing
of the return (including any amended return showing an increase of tax).
If a notice of deficiency has been mailed, the amount of the deficiency
shall be deemed to be assessed on the date specified in subdivision two
of section 11-672 of this subchapter if no petition is both served on
the commissioner of finance and filed with the tax appeals tribunal, or
if a petition is so served and filed, then upon the date when a decision
of the tax appeals tribunal establishing the amount of the deficiency
becomes final. If a report or an amended return filed pursuant to
subchapter two [or], three OR THREE-A of this chapter concedes the accu-
racy of a federal or New York state adjustment or change or correction
or renegotiation or computation or recomputation of tax, any deficiency
in tax under subchapter two [or], three OR THREE-A of this chapter
resulting therefrom shall be deemed to be assessed on the date of filing
such report or amended return, and such assessment shall be timely
notwithstanding section 11-674 of this chapter.
If a report filed pursuant to subchapter two OR THREE-A of this chap-
ter concedes the accuracy of a state change or correction of sales and
compensating use tax liability, any deficiency in tax under subchapter
two OR THREE-A of this chapter resulting therefrom shall be deemed
assessed on the date of filing such report, and such assessment shall be
timely notwithstanding section 11-674 of this chapter.
If a notice of additional tax due, as prescribed in subdivision five
of section 11-672 of this chapter, has been mailed, the amount of the
deficiency shall be deemed to be assessed on the date specified in such
subdivision unless within thirty days after the mailing of such notice a
report of the federal or New York state adjustment or change or
correction or renegotiation or computation or recomputation of tax, or
an amended return, where such return was required by subchapter two
[or], three OR THREE-A of this chapter, is filed accompanied by a state-
ment showing wherein such federal or New York state determination and
such notice of additional tax due are erroneous.
If a notice of additional tax due, as prescribed in subdivision nine
of section 11-672 of this subchapter, has been mailed, the amount of the
deficiency shall be deemed to be assessed on the date specified in such
subdivision unless within thirty days after the mailing of such notice a
report of the state change or correction, or a copy of an amended return
or report, where such copy was required by subchapter two OR THREE-A of
this chapter, is filed accompanied by a statement showing wherein such
state determination and such notice of additional tax due are erroneous.
Any amount paid as a tax or in respect of a tax, other than amounts
paid as estimated tax, shall be deemed to be assessed upon the date of
receipt of payment notwithstanding any other provisions.
3. Estimated tax. No unpaid amount of estimated tax under subchapter
two [or], three OR THREE-A of this chapter shall be assessed.
S 10. Subdivisions 3 and 4 of section 11-674 of the administrative
code of the city of New York, subparagraph 3 of paragraph (a) and para-
graph (c) of subdivision 3 as amended by chapter 525 of the laws of 1988
and paragraph (d) of subdivision 3 as amended by local law number 57 of
the city of New York for the year 2001, are amended to read as follows:
3. Exceptions.
(a) Assessment at any time. The tax may be assessed at any time if:
(1) no return is filed,
(2) a false or fraudulent return is filed with intent to evade tax,
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(3) in the case of the tax imposed under subchapter two [or], three OR
THREE-A of this chapter, the taxpayer fails to file a report or amended
return required thereunder, in respect of an increase or decrease in
federal or New York state taxable income, alternative minimum taxable
income or other basis of tax or federal or New York state tax, or in
respect of a change or correction or renegotiation or in respect of the
execution of a notice of waiver report of which is required thereunder,
or computation or recomputation of tax, which is treated in the same
manner as if it were a deficiency for federal or New York state income
tax purposes, or
(4) in the case of the tax imposed under subchapter two OR THREE-A of
this chapter, the taxpayer fails to file a report or amended return or
report required thereunder, in respect of a change or correction of
sales and compensating use tax liability, relating to the purchase or
use of items for which a sales or compensating use tax credit against
the tax imposed by subchapter two OR THREE-A was claimed.
(b) Extension by agreement. Where, before the expiration of the time
prescribed in this section for the assessment of tax, both the commis-
sioner of finance and the taxpayer have consented in writing to its
assessment after such time, the tax may be assessed at any time prior to
the expiration of the period agreed upon. The period so agreed upon may
be extended by subsequent agreements in writing made before the expira-
tion of the period previously agreed upon.
(c) Report of federal or New York state change or correction. In the
case of the tax imposed under subchapter two [or], three OR THREE-A of
this chapter, if the taxpayer files a report or amended return required
thereunder, in respect of an increase or decrease in federal or New York
state taxable income, alternative minimum taxable income or other basis
of tax or federal or New York state tax, or in respect of a change or
correction or renegotiation, or in respect of the execution of a notice
of waiver report of which is required thereunder, or computation or
recomputation of tax, which is treated in the same manner as if it were
a deficiency for federal or New York state income tax purposes, the
assessment (if not deemed to have been made upon the filing of the
report or amended return) may be made at any time within two years after
such report or amended return was filed. The amount of such assessment
of tax shall not exceed the amount of the increase in city tax attribut-
able to such federal or New York state change or correction or renegoti-
ation, or computation or recomputation of tax. The provisions of this
paragraph shall not affect the time within which or the amount for which
an assessment may otherwise be made.
(d) Deficiency attributable to carry back. If a deficiency of tax
under subchapter two OR THREE-A of this chapter is attributable to the
application to taxpayer of a net operating loss carry back or a capital
loss carry back, it may be assessed at any time that a deficiency for
the taxable year of the loss may be assessed.
(e) Recovery of erroneous refund. An erroneous refund shall be consid-
ered an underpayment of tax on the date made, and an assessment of a
deficiency arising out of an erroneous refund may be made at any time
within two years from the making of the refund, except that the assess-
ment may be made within five years from the making of the refund if it
appears that any part of the refund was induced by fraud or misrepresen-
tation of a material fact.
(f) Request for prompt assessment. The tax shall be assessed within
eighteen months after written request therefor (made after the return is
filed) by the taxpayer or by a fiduciary representing the taxpayer, but
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not more than three years after the return was filed, except as other-
wise provided in this subdivision and subdivision four. This subdivision
shall not apply unless:
(1) (A) such written request notifies the commissioner of finance that
the taxpayer contemplates dissolution at or before the expiration of
such eighteen-month period, (B) the dissolution is in good faith begun
before the expiration of such eighteen-month period, (C) the dissolution
is completed;
(2) (A) such written request notifies the commissioner of finance that
a dissolution has in good faith been begun, and (B) the dissolution is
completed; or
(3) a dissolution has been completed at the time such written request
is made.
(g) Change of the allocation of taxpayer's income or capital. [No]
(1) WITH REGARD TO TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND FIFTEEN, NO change of the allocation of income or capital upon
which the taxpayer's return (or any additional assessment) was based
shall be made where an assessment of tax is made during the additional
period of limitation under subparagraph three or four of paragraph (a),
or under paragraph (c), (d) or (i); and where any such assessment has
been made, or where a notice of deficiency has been mailed to the
taxpayer on the basis of any such proposed assessment, no change of the
allocation of income or capital shall be made in a proceeding on the
taxpayer's claim for refund of such assessment or on the taxpayer's
petition for redetermination of such deficiency.
(2) WITH REGARD TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND FIFTEEN, NO CHANGE OF THE ALLOCATION OF INCOME OR CAPITAL
UPON WHICH THE TAXPAYER'S RETURN (OR ANY ADDITIONAL ASSESSMENT) WAS
BASED SHALL BE MADE WHERE AN ASSESSMENT OF TAX IS MADE DURING THE ADDI-
TIONAL PERIOD OF LIMITATION UNDER SUBPARAGRAPH THREE OR FOUR OF PARA-
GRAPH (A) OR UNDER PARAGRAPH (C), (D) OR (I), EXCEPT TO THE EXTENT SUCH
ASSESSMENT IS BASED ON AN INCREASE OR DECREASE IN NEW YORK STATE TAXABLE
INCOME OR OTHER BASIS OF TAX OR NEW YORK STATE TAX, OR BASED ON A
CHANGE, CORRECTION OR RENEGOTIATION OF TAX, OR BASED ON THE EXECUTION OF
A NOTICE OF WAIVER REPORT WHICH IS REQUIRED THEREUNDER, OR COMPUTATION
OR RECOMPUTATION OF TAX, WHICH IS TREATED IN THE SAME MANNER AS IF IT
WERE A DEFICIENCY FOR NEW YORK STATE INCOME TAX PURPOSES; AND WHERE ANY
SUCH ASSESSMENT HAS BEEN MADE, OR WHERE A NOTICE OF DEFICIENCY HAS BEEN
MAILED TO THE TAXPAYER ON THE BASIS OF ANY SUCH PROPOSED ASSESSMENT, NO
CHANGE OF THE ALLOCATION OF INCOME OR CAPITAL SHALL BE MADE IN A
PROCEEDING ON THE TAXPAYER'S CLAIM FOR REFUND OF SUCH ASSESSMENT OR ON
THE TAXPAYER'S PETITION FOR REDETERMINATION OF SUCH DEFICIENCY, EXCEPT
TO THE EXTENT SUCH ASSESSMENT IS BASED ON AN INCREASE OR DECREASE IN NEW
YORK STATE TAXABLE INCOME OR OTHER BASIS OF TAX OR NEW YORK STATE TAX,
OR BASED ON A CHANGE OR CORRECTION OR RENEGOTIATION OF TAX, OR BASED ON
THE EXECUTION OF A NOTICE OF WAIVER REPORT WHICH IS REQUIRED THEREUNDER,
OR COMPUTATION OR RECOMPUTATION OF TAX, WHICH IS TREATED IN THE SAME
MANNER AS IF IT WERE AN OVERPAYMENT FOR NEW YORK STATE INCOME TAX
PURPOSES.
(h) Report concerning waste treatment facility. Under the circum-
stances described in subparagraph three of paragraph (g) of subdivision
eight of section 11-602 of this chapter OR IN SUBPARAGRAPH THREE OF
PARAGRAPH (G) OF SUBDIVISION EIGHT OF SECTION 11-652 OF THIS CHAPTER,
the tax may be assessed within three years after the filing of the
report containing the information required by such paragraph.
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(i) Report of changed or corrected sales and compensating use tax
liability. In the case of a tax imposed under subchapter two OR THREE-A
of this chapter, if the taxpayer files a report or amended return or
report required thereunder, in respect of a change or correction of
sales and compensating use tax liability, the assessment (if not deemed
to have been made upon the filing of the report) may be made at any time
within two years after such report or amended return or report was
filed. The amount of such assessment of tax shall not exceed the amount
of the increase in city tax attributable to such state change or
correction. The provisions of this paragraph shall not affect the time
within which or the amount for which an assessment may otherwise be
made.
4. Omission of income on return. The tax may be assessed at any time
within six years after the return was filed if a taxpayer omits from
gross income required to be reported on a return under any of the named
subchapters an amount properly includable therein which is in excess of
twenty-five per centum of the amount of gross income stated in the
return.
For the purposes of this subdivision:
(a) the term "gross income" means gross income for federal income tax
purposes as reportable on a return under subchapter two OR THREE-A of
this chapter and "gross earnings", "gross income," "gross operating
income" and "gross direct premiums less return premiums," as those terms
are used in whichever of the named subchapters is applicable;
(b) there shall not be taken into account any amount which is omitted
in the return if such amount is disclosed in the return, or in a state-
ment attached to the return, in a manner adequate to apprise the commis-
sioner of finance of the nature and amount of such item.
S 11. Subdivisions 2 and 5 of section 11-675 of the administrative
code of the city of New York, subdivision 5 as amended by local law
number 57 of the city of New York for the year 2001, are amended to read
as follows:
2. Exception as to estimated tax. This section shall not apply to any
failure to pay estimated tax under subchapter two [or subchapter], three
OR THREE-A of this chapter.
5. Tax reduced by carry back. If the amount of tax under subchapter
two OR THREE-A for any taxable year is reduced by reason of a carryback
of a net operating loss or a capital loss, such reduction in tax shall
not affect the computation of interest under this section for the period
ending with the filing date for the taxable year in which the net oper-
ating loss or capital loss arises. Such filing date shall be determined
without regard to extensions of time to file.
S 12. Subdivision 3 of section 11-676 of the administrative code of
the city of New York, as amended by chapter 201 of the laws of 2009, is
amended to read as follows:
3. Failure to file declaration or underpayment of estimated tax. If
any taxpayer fails to file a declaration of estimated tax under subchap-
ter two [or], three OR THREE-A of this chapter, or fails to pay all or
any part of an amount which is applied as an installment against such
estimated tax, it shall be deemed to have made an underpayment of esti-
mated tax. There shall be added to the tax for the taxable year an
amount at the underpayment rate set by the commissioner of finance
pursuant to section 11-687 of this subchapter, or, if no rate is set, at
the rate of seven and one-half percent per annum upon the amount of the
underpayment for the period of the underpayment but not beyond the
fifteenth day of the third month following the close of the taxable
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year. The amount of the underpayment shall be, with respect to any
installment of estimated tax computed on the basis of the preceding
year's tax, the excess of the amount required to be paid over the
amount, if any, paid on or before the last day prescribed for such
payment or, with respect to any other installment of estimated tax, the
excess of the amount of the installment which would be required to be
paid if the estimated tax were equal to ninety percent of the tax shown
on the return for the taxable year (or if no return was filed, ninety
percent of the tax for such year) over the amount, if any, of the
installment paid on or before the last day prescribed for such payment.
In any case in which there would be no underpayment if "eighty percent"
were substituted for "ninety percent" each place it appears in this
subdivision, the addition to the tax shall be equal to seventy-five
percent of the amount otherwise determined. No underpayment shall be
deemed to exist with respect to a declaration or installment otherwise
due on or after the termination of existence of the taxpayer.
S 13. The opening paragraph of subdivision 4 of section 11-676 of the
administrative code of the city of New York is amended to read as
follows:
Exception to addition for underpayment of estimated tax. The addition
to tax under subdivision three with respect to any underpayment of any
amount which is applied as an installment against estimated tax under
subchapter two [or], three OR THREE-A of this chapter shall not be
imposed if the total amount of all payments of estimated tax made on or
before the last date prescribed for the payment of any such amount
equals or exceeds the amount which would have been required to be paid
on or before such date if the estimated tax were whichever of the
following is the least:
S 14. Subdivision 13 of section 11-676 of the administrative code of
the city of New York, as added by chapter 525 of the laws of 1988, is
amended to read as follows:
13. Failure to file report of information relating to certain interest
payments. In case of failure to file the report of information required
under EITHER subdivision two-a of section 11-605 of this chapter OR
SUBDIVISION TWO-A OF SECTION 11-655 OF THIS CHAPTER, unless it is shown
that such failure is due to reasonable cause and not due to willful
neglect, there shall be added to the tax a penalty of five hundred
dollars.
S 15. Subdivision 2 of section 11-677 of the administrative code of
the city of New York is amended to read as follows:
2. Credits against estimated tax. The commissioner of finance may
prescribe regulations providing for the crediting against the estimated
tax under subchapter two [or], three OR THREE-A of this chapter for any
taxable year of the amount determined to be an overpayment of tax under
any such subchapter for a preceding taxable year. If any overpayment of
tax is so claimed as a credit against estimated tax for the succeeding
taxable year, such amount shall be considered as a payment of the tax
under subchapter two [or], three OR THREE-A of this chapter for the
succeeding taxable year (whether or not claimed as a credit in the
declaration of estimated tax for such succeeding taxable year), and no
claim for credit or refund of such overpayment shall be allowed for the
taxable year for which the overpayment arises.
S 16. Subdivisions 3, 4, 9 and 11 of section 11-678 of the administra-
tive code of the city of New York, subdivision 3 as amended by chapter
241 of the laws of 1989 and subdivision 4 as amended by local law number
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57 of the city of New York for the year 2001, are amended to read as
follows:
3. Notice of change or correction of federal or New York state income
or other basis of tax. If a taxpayer is required by subchapter two [or],
three OR THREE-A of this chapter to file a report or amended return in
respect of (a) a decrease or increase in federal or New York state taxa-
ble income, alternative minimum taxable income or other basis of tax or
federal or New York state tax, (b) a federal or New York state change or
correction or renegotiation, or computation or recomputation of tax,
which is treated in the same manner as if it were an overpayment for
federal or New York state income tax purposes, claim for credit or
refund of any resulting overpayment of tax shall be filed by the taxpay-
er within two years from the time such report or amended return was
required to be filed with the commissioner of finance. If the report or
amended return required by subchapter two [or], three OR THREE-A of this
chapter is not filed within the ninety day period therein specified, no
interest shall be payable on any claim for credit or refund of the over-
payment attributable to the federal or New York state change or
correction. The amount of such credit or refund:
(c) shall, (I) FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND FIFTEEN, be computed without change of the allocation of income
or capital upon which the taxpayer's return (or any additional assess-
ment) was based, and, (II) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU-
ARY FIRST, TWO THOUSAND FIFTEEN, BE COMPUTED WITHOUT CHANGE OF THE ALLO-
CATION OF INCOME OR CAPITAL UPON WHICH THE TAXPAYER'S RETURN (OR ANY
ADDITIONAL ASSESSMENT) WAS BASED TO THE EXTENT THAT THE CLAIM FOR REFUND
ARISES FROM A DECREASE OR INCREASE IN FEDERAL TAXABLE INCOME OR OTHER
BASIS OF TAX OR FEDERAL TAX, OR FROM A FEDERAL CHANGE, CORRECTION, RENE-
GOTIATION, COMPUTATION OR RECOMPUTATION OF TAX, WHICH IS TREATED IN THE
SAME MANNER AS IF IT WERE AN OVERPAYMENT FOR FEDERAL INCOME TAX
PURPOSES, AND
(d) shall not exceed the amount of the reduction in tax attributable
to such decrease or increase in federal or New York state taxable
income, alternative minimum taxable income or other basis of tax or
federal or New York state tax or to such federal or New York state
change or correction or renegotiation, or computation or recomputation
of tax.
This subdivision shall not affect the time within which or the amount
for which a claim for credit or refund may be filed apart from this
subdivision.
4. Overpayment attributable to net operating loss carry back or capi-
tal loss carry back. A claim for credit or refund of so much of an over-
payment under subchapter two OR THREE-A of this chapter as is attribut-
able to the application to the taxpayer of a net operating loss carry
back or a capital loss carry back shall be filed within three years from
the time the return was due (including extensions thereof) for the taxa-
ble year of the loss, or within the period prescribed in subdivision two
in respect of such taxable year, or within the period prescribed in
subdivision three, where applicable, in respect to the taxable year to
which the net operating loss or capital loss is carried back, whichever
expires the latest. Where such claim for credit or refund is filed after
the expiration of the period prescribed in subdivision one or in subdi-
vision two where applicable, in respect to the taxable year to which the
net operating loss or capital loss is carried back, the amount of such
credit or refund shall be computed without change of the allocation of
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income or capital upon which the taxpayer's return (or any additional
assessment) was based.
9. Prepaid tax. For purposes of this section, any tax paid by the
taxpayer before the last day prescribed for its payment (including any
amount paid by the taxpayer as estimated tax for a taxable year) shall
be deemed to have been paid by it on the fifteenth day of the third
month following the close of the taxable year the income of which is the
basis for tax under subchapter two [or], three OR THREE-A of this chap-
ter, or on the last day prescribed in part one of subchapter three or
subchapter four for the filing of a final return for such taxable year,
or portion thereof, determined in all cases without regard to any exten-
sion of time granted the taxpayer.
11. Notice of change or correction of sales and compensating use tax
liability. (a) If a taxpayer is required by subchapter two OR THREE-A of
this chapter to file a report or amended return in respect of a change
or correction of its sales and compensating use tax liability, claim for
credit or refund of any resulting overpayment of tax shall be filed by
the taxpayer within two years from the time such report or amended
return was required to be filed with the commissioner of finance. The
amount of such credit or refund shall be computed without change of the
allocation of income or capital upon which the taxpayer's return (or any
additional assessment) was based, and shall not exceed the amount of the
reduction in tax attributable to such change or correction of sales and
compensating use tax liability.
(b) This subdivision shall not affect the time within which or the
amount for which a claim for credit or refund may be filed apart from
this subdivision.
S 17. Subdivisions 4 and 6 of section 11-679 of the administrative
code of the city of New York, subdivision 4 as amended by local law
number 57 of the city of New York for the year 2001 and subdivision 6 as
amended by chapter 241 of the laws of 1989, are amended to read as
follows:
4. Refund of tax caused by carryback. For purposes of this section, if
any overpayment of tax imposed by subchapter two OR THREE-A of this
chapter results from a carryback of a net operating loss or a net capi-
tal loss, such overpayment shall be deemed not to have been made prior
to the filing date for the taxable year in which such net operating loss
or net capital loss arises. Such filing date shall be determined without
regard to extensions of time to file. For purposes of subdivision three
of this section any overpayment described herein shall be treated as an
overpayment for the loss year and such subdivision shall be applied with
respect to such overpayment by treating the return for the loss year as
not filed before claim for such overpayment is filed. The term "loss
year" means the taxable year in which such loss arises.
6. Cross reference. For provision with respect to interest after fail-
ure to file a report of federal or New York state change or correction
or amended return under subchapter two [or], three OR THREE-A, see
subdivision three of section 11-678 of this subchapter.
S 18. Paragraph (d) of subdivision 4 of section 11-680 of the adminis-
trative code of the city of New York, as amended by chapter 808 of the
laws of 1992, is amended to read as follows:
(d) Restriction on further notices of deficiency. If the taxpayer
files a petition with the tax appeals tribunal under this section, no
notice of deficiency under section 11-672 of this subchapter may there-
after be issued by the commissioner of finance for the same taxable
year, except in case of fraud or with respect to an increase or decrease
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in federal or New York state taxable income, alternative minimum taxable
income or other basis of tax or federal or New York state tax or a
federal or New York state change or correction or renegotiation, or
computation or recomputation of tax, which is treated in the same manner
as if it were a deficiency for federal or New York state income tax
purposes, required to be reported under subchapter two [or], three OR
THREE-A of this chapter or with respect to a state change or correction
of sales and compensating use tax liability required to be reported
under subchapter two OR THREE-A of this chapter.
S 19. Paragraph (c) of subdivision 5 of section 11-680 of the adminis-
trative code of the city of New York, as amended by chapter 808 of the
laws of 1992, is amended to read as follows:
(c) whether the petitioner is liable for any increase in a deficiency
where such increase is asserted initially after a notice of deficiency
was mailed and a petition under this section filed, unless such increase
in deficiency is the result of an increase or decrease in federal or New
York state taxable income, alternative minimum taxable income or other
basis of tax or federal or New York state tax or a federal or New York
state change or correction or renegotiation, or computation or recompu-
tation of tax, which is treated in the same manner as if it were a defi-
ciency for federal or New York state income tax purposes, required to be
reported under subchapter two [or], three OR THREE-A of this chapter,
and of which increase, decrease, change or correction or renegotiation,
or computation or recomputation, the commissioner of finance had no
notice at the time he or she mailed the notice of deficiency or unless
such increase in deficiency is the result of a change or correction of
sales and compensating use tax liability required to be reported under
subchapter two OR THREE-A of this chapter, and of which change or
correction the commissioner of finance had no notice at the time he or
she mailed the notice of deficiency; and
S 20. Paragraph (a) of subdivision 5 of section 11-687 of the adminis-
trative code of the city of New York, as amended by chapter 201 of the
laws of 2009, is amended to read as follows:
(a) Authority to set interest rates. The commissioner of finance shall
set the overpayment and underpayment rates of interest to be paid pursu-
ant to sections 11-606, 11-608, 11-645, 11-647, 11-656, 11-658, 11-675,
11-676, and 11-679 of this chapter, but if no such rate or rates of
interest are set, such overpayment rate shall be deemed to be set at six
percent per annum and such underpayment rate shall be deemed to be set
at seven and one-half percent per annum. Such overpayment and underpay-
ment rates shall be the rates prescribed in paragraph (b) of this subdi-
vision but the underpayment rate shall not be less than seven and one-
half percent per annum. Any such rates set by the commissioner of
finance shall apply to taxes, or any portion thereof, which remain or
become due or overpaid on or after the date on which such rates become
effective and shall apply only with respect to interest computed or
computable for periods or portions of periods occurring in the period
during which such rates are in effect.
S 21. Subdivision 7 of section 11-688 of the administrative code of
the city of New York, as added by section 22 of part M of chapter 686 of
the laws of 2003, is amended to read as follows:
7. Notwithstanding anything in subdivision one of this section, the
commissioner of finance may disclose to a taxpayer or a taxpayer's
related member, as defined in paragraph (n) of subdivision eight of
section 11-602, PARAGRAPH (N) OF SUBDIVISION EIGHT OF SECTION 11-652 or
paragraph one of subdivision (q) of section 11-641 of this chapter,
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information relating to any royalty paid, incurred or received by such
taxpayer or related member to or from the other, including the treatment
of such payments by the taxpayer or the related member in any report or
return transmitted to the commissioner of finance under this title.
S 22. Paragraph 4 of subdivision (f) of section 11-704 of the adminis-
trative code of the city of New York, as amended by chapter 831 of the
laws of 1992, is amended to read as follows:
(4) No tenant shall be authorized to receive a reduction in base rent
subject to tax under the provisions of this subdivision, until the prem-
ises with respect to which it is claiming a reduction in base rent meet
the requirements in the definition of eligible premises and until it has
obtained a certification of eligibility from the mayor or an agency
designated by the mayor, and an annual certification from the mayor or
an agency designated by the mayor as to the number of eligible aggregate
employment shares maintained by such tenant which may qualify for
obtaining a base rent reduction for the tenant's tax year. Any written
documentation submitted to the mayor or such agency or agencies in order
to obtain any such certification shall be deemed a written instrument
for purposes of section 175.00 of the penal law. Application fees for
such certifications shall be determined by the mayor or such agency or
agencies. No certification of eligibility shall be issued to an eligible
business on or after July first, nineteen hundred ninety-nine unless
such business meets the requirements of either subparagraph (a) or (b)
below:
(a) (1) prior to such date such business has purchased, leased or
entered into a contract to purchase or lease particular premises or a
parcel on which will be constructed such premises or already owned such
premises or parcel;
(2) prior to such date improvements have been commenced on such prem-
ises or parcel which improvements will meet the requirements of subdivi-
sion (e) of section 22-621 of this code relating to expenditures for
improvements;
(3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or agen-
cies with respect to a proposed relocation to such particular premises;
and
(4) such business relocates to such particular premises not later than
thirty-six months or, in a case in which the expenditures made for the
improvements specified in clause two of this subparagraph are in excess
of fifty million dollars within seventy-two months from the date of
submission of such preliminary application; or
(b) (1) not later than June thirtieth, two thousand two, such business
has purchased, leased or entered into a contract to purchase or lease
particular premises wholly contained in a building in which at least an
aggregate of forty per centum or two hundred thousand square feet,
whichever is less, of the nonresidential floor area of such building has
been purchased or leased by a business or businesses which meet or will
meet the requirements of subparagraph (a) of this paragraph with respect
to such floor area and which are or will become certified as eligible to
receive a credit under section 22-622 of this code with respect to such
floor area;
(2) not later than June thirtieth, two thousand two, such business
submits a preliminary application for a certification of eligibility to
such mayor or such agency or agencies with respect to a proposed relo-
cation to such particular premises; and
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(3) not later than June thirtieth, two thousand two, such business
relocates to such particular premises.
Any tenant subject to a tax imposed under chapter five, or subchapter
two [or], three OR THREE-A of chapter six, of this title obtaining a
certification of eligibility pursuant to subdivision (b) of section
22-622 of the code shall be deemed to have obtained the certification of
eligibility required by this paragraph.
S 23. Subdivision (a) and the opening paragraph of subdivision (o) of
section 22-621 of the administrative code of the city of New York,
subdivision (a) as amended by chapter 149 of the laws of 1999 and the
opening paragraph of subdivision (o) as added by chapter 143 of the laws
of 2004, are amended to read as follows:
(a) "Eligible Business." Any person subject to a tax imposed under
chapter five, or subchapter two [or], three OR THREE-A of chapter six,
or chapter eleven, of title eleven of the code, that: (1) has been
conducting substantial business operations at one or more business
locations outside the eligible area for the twenty-four consecutive
months immediately preceding the taxable year during which such eligible
business relocates as defined in subdivision (j) of this section; and
(2) on or after May twenty-seventh, nineteen hundred eighty-seven relo-
cates as defined in subdivision (j) of this section all or part of such
business operations; and (3) either (i) on or after May twenty-seventh,
nineteen hundred eighty-seven first enters into a contract to purchase
or lease the premises to which it relocates as defined in subdivision
(j) of this section, or a parcel on which will be constructed such prem-
ises, or (ii) as of May twenty-seventh, nineteen hundred eighty-seven
owns such parcel or premises and has not prior to such date made appli-
cation for benefits pursuant to part four of subchapter two of chapter
two of title eleven of the code.
"Total attributed eligible aggregate employment shares" means, for any
relocation, the sum of the number of eligible aggregate employment
shares apportioned to such relocation pursuant to paragraph one of this
subdivision, less any excess shares determined with respect to such
relocation pursuant to paragraph two of this subdivision, plus any
excess shares attributed to such relocation pursuant to paragraph three
of this subdivision. Except as provided in paragraph four of this subdi-
vision, any eligible aggregate employment shares that are attributed to
a relocation to particular premises pursuant to paragraph three of this
subdivision shall be treated as eligible aggregate employment shares
that are maintained with respect to such premises and shall be subject
to all provisions of this chapter and the provisions for a credit
against a tax imposed under chapter five or subchapter two [or], three
OR THREE-A of chapter six or chapter eleven of title eleven of the code
as such provisions pertain to such relocation.
S 24. Subdivisions (a) and (d) of section 22-622 of the administrative
code of the city of New York, subdivision (a) as amended and subdivision
(d) as added by chapter 149 of the laws of 1999, are amended to read as
follows:
(a) An eligible business that relocates as defined in subdivision (j)
of section 22-621 of the code shall be allowed to receive a credit
against a tax imposed by chapter five, or subchapter two [or], three OR
THREE-A of chapter six, or chapter eleven, of title eleven of the code,
as described in subdivision (i) of section 11-503, subdivision seventeen
of section 11-604, SUBDIVISION SEVENTEEN OF SECTION 11-654, section
11-643.7 and section 11-1105.2 of the code, and a reduction in base rent
subject to tax as described in subdivision f of section 11-704 of the
A. 6009 183
code, provided, however, notwithstanding any other provision of law to
the contrary, no such credit shall be allowed against the tax imposed
under such chapter eleven for a relocation taking place prior to January
first, nineteen hundred ninety-nine.
(d) An eligible business other than a utility company subject to the
supervision of the department of public service shall not be authorized
to receive a credit against the gross receipts tax imposed under chapter
eleven of title eleven of the code, unless such eligible business elects
to take the credit authorized by this section against the tax imposed by
such chapter on an application filed with respect to the first relo-
cation of such business that qualifies or will qualify under this
section, with the mayor or the agency designated by such mayor pursuant
to subdivision (b) of this section. The election authorized by this
subdivision may not be withdrawn after the issuance of such certif-
ication of eligibility. No taxpayer that has previously received a
certification of eligibility to receive such credit against any tax
imposed by chapter five or subchapter two [or], three OR THREE-A of
chapter six of title eleven of the code may make the election authorized
by this subdivision. No taxpayer that makes the election provided in
this subdivision shall be authorized to take such credit against any tax
imposed by chapter five or subchapter two [or], three OR THREE-A of
chapter six of title eleven of the code.
S 25. Subdivisions (a) and (l) of section 22-623 of the administrative
code of the city of New York, subdivision (a) as added by chapter 143 of
the laws of 2004 and subdivision (l) as added by section 10 of part E of
chapter 2 of the laws of 2005, are amended to read as follows:
(a) "Eligible business" means any person subject to a tax imposed
under chapter five, or subchapter two [or], three OR THREE-A of chapter
six, or chapter eleven, of title eleven of the code, that:
(1) has been conducting substantial business operations at one or more
business locations outside the city of New York for the twenty-four
consecutive months immediately preceding the taxable year during which
such eligible business relocates as defined in subdivision (j) of this
section but has not maintained employment shares at premises in the city
of New York at any time during the period beginning January first, two
thousand two and ending on the date it enters into a lease or a contract
to purchase the premises that will qualify as eligible premises pursuant
to this chapter; and
(2) on or after July first, two thousand three relocates as defined in
subdivision (j) of this section all or part of such business operations.
(l) "Special eligible business" means any person subject to a tax
imposed under chapter five, or subchapter two [or], three OR THREE-A of
chapter six, or chapter eleven, of title eleven of the code, that: (1)
has been conducting substantial business operations at one or more busi-
ness locations outside the city of New York for the twenty-four consec-
utive months immediately preceding the taxable year during which such
eligible business relocates as defined in subdivision (m); (2) main-
tained employment shares at premises in Manhattan in the city of New
York at some time during the period beginning January first, two thou-
sand two, and ending on the date it enters into a lease or a contract to
purchase the premises that will qualify as eligible premises pursuant to
this section, and (3) on or after June thirtieth, two thousand five,
relocates as defined in subdivision (m) of this section all or part of
such business operations.
S 26. Subdivisions (a) and (d) of section 22-624 of the administrative
code of the city of New York, subdivision (a) as amended by section 11
A. 6009 184
of part E of chapter 2 of the laws of 2005 and subdivision (d) as
amended by section 12 of part E of chapter 2 of the laws of 2005, are
amended to read as follows:
(a) An eligible business that relocates as defined in subdivision (j)
of section 22-623 of this chapter or a special eligible business that
relocates as defined in subdivision (m) of section 22-623 of this chap-
ter shall be allowed to receive a credit against a tax imposed by chap-
ter five, or subchapter two [or], three OR THREE-A of chapter six, or
chapter eleven, of title eleven of the code, as described in subdivision
(l) of section 11-503, subdivision nineteen of section 11-604, SUBDIVI-
SION NINETEEN OF SECTION 11-654, section 11-643.9 or section 11-1105.3
of the code.
(d) An eligible business or special eligible business other than a
utility company subject to the supervision of the department of public
service shall not be authorized to receive a credit against the gross
receipts tax imposed under chapter eleven of title eleven of the code
unless such eligible business or special eligible business elects to
take the credit authorized by this section against the tax imposed by
such chapter on its application filed with the mayor or the agency
designated by such mayor pursuant to subdivision (b) of this section.
The election authorized by this subdivision may not be withdrawn after
the issuance of such certification of eligibility. No taxpayer that has
previously received a certification of eligibility to receive such cred-
it against any tax imposed by chapter five or subchapter two [or], three
OR THREE-A of chapter six of title eleven of the code may make the
election authorized by this subdivision. No taxpayer that makes the
election provided in this subdivision shall be authorized to take such
credit against any tax imposed by chapter five or subchapter two [or],
three OR THREE-A of chapter six of title eleven of the code.
S 27. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2015.
PART RR
Section 1. Subdivision 2 of section 187-b of the tax law, as amended
by section 1 of part G of chapter 59 of the laws of 2013, is amended to
read as follows:
2. (A) Alternative fuel vehicle refueling property and electric vehi-
cle recharging property. The credit under this section for alternative
fuel vehicle refueling and electric vehicle recharging property shall
equal for each installation of property the lesser of five thousand
dollars or THE PRODUCT OF fifty percent [of the cost of any such proper-
ty:
(a) which is] AND THE COST OF ANY SUCH PROPERTY LESS ANY COSTS PAID
FROM THE PROCEEDS OF GRANTS.
(B) TO QUALIFY FOR THE CREDIT, THE PROPERTY MUST:
(I) BE located in this state;
[(b) which constitutes] (II) CONSTITUTE alternative fuel vehicle refu-
eling property or electric vehicle recharging property; and
[(c) for which none of the cost has been] (III) NOT BE paid for from
the proceeds of grants AWARDED BEFORE JANUARY FIRST, TWO THOUSAND
FIFTEEN, including grants from the New York state energy research and
development authority or the New York power authority.
S 2. Paragraph (b) of subdivision 30 of section 210-B of the tax law,
as added by section 17 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
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(b) (I) Alternative fuel vehicle refueling property and electric vehi-
cle recharging property. The credit under this subdivision for alterna-
tive fuel vehicle refueling property and electric vehicle recharging
property shall equal for each installation of property the lesser of
five thousand dollars or THE PRODUCT OF fifty percent [of the cost of
any such property:
(i) which is] AND THE COST OF ANY SUCH PROPERTY LESS ANY COSTS PAID
FROM THE PROCEEDS OF GRANTS.
(II) TO QUALIFY FOR THE CREDIT, THE PROPERTY MUST:
(A) BE located in this state;
[(ii) which constitutes] (B) MUST CONSTITUTE alternative fuel vehicle
refueling property or electric vehicle recharging property; and
[(iii) for which none of the cost has been] (C) NOT BE paid for from
the proceeds of grants AWARDED BEFORE JANUARY FIRST, TWO THOUSAND
FIFTEEN, including grants from the New York state energy research and
development authority or the New York power authority.
S 3. Paragraph 2 of subsection (p) of section 606 of the tax law, as
amended by section 3 of part G of chapter 59 of the laws of 2013, is
amended to read as follows:
(2) (A) Alternative fuel vehicle refueling property and electric vehi-
cle recharging property. The credit under this subsection for alterna-
tive fuel vehicle refueling property or electric vehicle recharging
property shall equal for each installation of property the lesser of
five thousand dollars or THE PRODUCT OF fifty percent [of the cost of
any such property
(A) which is] AND THE COST OF ANY SUCH PROPERTY LESS ANY COSTS PAID
FROM THE PROCEEDS OF GRANTS.
(B) TO QUALIFY FOR THE CREDIT, THE PROPERTY MUST:
(I) BE located in this state;
[(B) which constitutes] (II) CONSTITUTE alternative fuel vehicle refu-
eling property or electric vehicle recharging property; and
[(C) for which none of the cost has been] (III) NOT BE paid for from
the proceeds of grants AWARDED BEFORE JANUARY FIRST, TWO THOUSAND
FIFTEEN, including grants from the New York state energy research and
development authority or the New York power authority.
S 4. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on or after January 1, 2015.
PART SS
Section 1. Subparagraphs (A), (E) and (F) of paragraph 1 and paragraph
3 of subsection (e-1) of section 606 of the tax law, as added by section
2 of part K of chapter 59 of the laws of 2014, are amended and a new
paragraph 3-a is added to read as follows:
(A) "Qualified taxpayer" means a resident individual of the state, who
(i) is a resident of a city with a population over one million OR A
RESIDENT IN THE CITY OF YONKERS, (ii) has occupied the same residence
for six months or more of the taxable year, and (iii) is required or
chooses to file a return under this article.
(E) "Qualifying real property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive of penal-
ties and interest, levied on the residence of a qualified taxpayer and
paid during the taxable year. A qualified taxpayer may elect to include
any additional amount that would have been levied in the absence of an
exemption from real property taxation pursuant to section four hundred
sixty-seven of the real property tax law. If tenant-stockholders in a
A. 6009 186
cooperative housing corporation have met the requirements of section two
hundred sixteen of the internal revenue code by which they are allowed a
deduction for real estate taxes, the amount of taxes so allowable, or
which would be allowable if the taxpayer had filed returns on a cash
basis, shall be qualifying real property taxes. If a residence is owned
by two or more individuals as joint tenants or tenants in common, and
one or more than one individual is not a member of the household, quali-
fying real property taxes is that part of such taxes on the residence
which reflects the ownership percentage of the qualified taxpayer and
members of his or her household. If a residence is an integral part of a
larger unit, qualifying real property taxes shall be limited to that
amount of such taxes paid as may be reasonably apportioned to such resi-
dence. If a household owns and occupies two or more residences during
different periods in the same taxable year, qualifying real property
taxes shall be the sum of the prorated qualifying real property taxes
attributable to the household during the periods such household occupies
each of such residences. If the household owns and occupies a residence
for part of the taxable year and rents a residence for part of the same
taxable year, it may include the proration of qualifying real property
taxes on the residence owned. Provided, however, for purposes of the
credit allowed under this subsection, qualifying real property taxes may
be included by a qualified taxpayer only to the extent that such taxpay-
er or the spouse of such taxpayer, occupying such residence for one
hundred eighty-three days or more of the taxable year, owns or has owned
the residence and paid such taxes. PROVIDED, HOWEVER, FOR TAXABLE YEARS
TWO THOUSAND FIFTEEN AND THEREAFTER, FOR A QUALIFIED TAXPAYER WHO
RESIDES IN THE CITY OF NEW YORK, AND PAID THE NEW YORK CITY PERSONAL
INCOME TAX AS PROVIDED IN ARTICLE THIRTY OF THIS CHAPTER FOR A TAXABLE
YEAR, SUCH QUALIFYING REAL PROPERTY TAX SHALL INCLUDE THE CITY PERSONAL
INCOME TAX FOR THE TAXABLE YEAR. IN ADDITION, FOR A QUALIFIED TAXPAYER
WHO RESIDES IN THE CITY OF YONKERS, AND PAID THE YONKERS CITY TAX AS
PROVIDED IN ARTICLE THIRTY-A OF THIS CHAPTER FOR A TAXABLE YEAR, SUCH
QUALIFYING REAL PROPERTY TAX SHALL INCLUDE THE YONKERS CITY TAX PAID FOR
THE TAXABLE YEAR.
(F) "Real property tax equivalent" means fifteen and three-quarters
percent of the adjusted rent actually paid in the taxable year by a
household solely for the right of occupancy of its New York residence
for the taxable year. If (i) a residence is rented to two or more indi-
viduals as cotenants, or such individuals share in the payment of a
single rent for the right of occupancy of such residence, and (ii) each
of such individuals is a member of a different household, one or more of
which individuals shares such residence, real property tax equivalent is
that portion of fifteen and three-quarters percent of the adjusted rent
paid in the taxable year which reflects that portion of the rent attrib-
utable to the qualified taxpayer and the members of his or her house-
hold. PROVIDED, HOWEVER, FOR TAXABLE YEARS TWO THOUSAND FIFTEEN AND
THEREAFTER, FOR A QUALIFIED TAXPAYER WHO RESIDES IN THE CITY OF NEW
YORK, AND PAID THE NEW YORK CITY PERSONAL INCOME TAX AS PROVIDED IN
ARTICLE THIRTY OF THIS CHAPTER FOR A TAXABLE YEAR, SUCH QUALIFYING REAL
PROPERTY TAX SHALL INCLUDE THE CITY PERSONAL INCOME TAX PAID FOR THE
TAXABLE YEAR. IN ADDITION, FOR A QUALIFIED TAXPAYER WHO RESIDES IN THE
CITY OF YONKERS, AND PAID THE YONKERS CITY TAX AS PROVIDED IN ARTICLE
THIRTY-A OF THIS CHAPTER FOR A TAXABLE YEAR, SUCH QUALIFYING REAL PROP-
ERTY TAX SHALL INCLUDE YONKERS CITY TAX PAID FOR THE TAXABLE YEAR.
(3) Determination of credit. For taxable [years after two thousand
thirteen and prior to two thousand sixteen] YEAR TWO THOUSAND FOURTEEN,
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the amount of the credit allowable under this subsection shall be deter-
mined as follows:
If household gross income Excess real property The credit amount is
for the taxable year is: taxes are the excess the following
of real property tax percentage of excess
equivalent or the property taxes:
excess of qualifying
real property taxes
over the following
percentage of
household gross
income:
Less than $100,000 4 4.5
$100,000 to less than 5 3.0
$150,000
$150,000 to less than 6 1.5
$200,000
FOR TAXABLE YEAR TWO THOUSAND FIFTEEN, THE AMOUNT OF THE CREDIT ALLOW-
ABLE UNDER THIS SUBSECTION SHALL BE DETERMINED AS FOLLOWS:
IF HOUSEHOLD GROSS INCOME EXCESS REAL PROPERTY THE CREDIT AMOUNT IS
FOR THE TAXABLE YEAR IS: TAXES ARE THE EXCESS THE FOLLOWING
OF REAL PROPERTY TAX PERCENTAGE OF EXCESS
EQUIVALENT OR THE PROPERTY TAXES:
EXCESS OF QUALIFYING
REAL PROPERTY TAXES
OVER THE FOLLOWING
PERCENTAGE OF
HOUSEHOLD GROSS
INCOME:
LESS THAN $100,000 4 6.0
$100,000 TO LESS THAN 5 4.0
$150,000
$150,000 TO LESS THAN 6 2.0
$200,000
FOR TAXABLE YEAR TWO THOUSAND SIXTEEN, THE AMOUNT OF THE CREDIT ALLOW-
ABLE UNDER THIS SUBSECTION SHALL BE DETERMINED AS FOLLOWS:
IF HOUSEHOLD GROSS INCOME EXCESS REAL PROPERTY THE CREDIT AMOUNT IS
FOR THE TAXABLE YEAR IS: TAXES ARE THE EXCESS THE FOLLOWING
OF REAL PROPERTY TAX PERCENTAGE OF EXCESS
EQUIVALENT OR THE PROPERTY TAXES:
EXCESS OF QUALIFYING
REAL PROPERTY TAXES
OVER THE FOLLOWING
PERCENTAGE OF
HOUSEHOLD GROSS
INCOME:
LESS THAN $100,000 4 7.5
$100,000 TO LESS THAN 5 5.0
$150,000
$150,000 TO LESS THAN 6 2.5
$200,000
(3-A) DETERMINATION OF CREDIT. FOR TAXABLE YEAR TWO THOUSAND SEVENTEEN
AND THEREAFTER, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION
SHALL BE DETERMINED AS FOLLOWS:
IF HOUSEHOLD GROSS INCOME EXCESS REAL PROPERTY THE CREDIT AMOUNT IS
FOR THE TAXABLE YEAR IS: TAXES ARE THE EXCESS THE FOLLOWING
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OF REAL PROPERTY TAX PERCENTAGE OF EXCESS
EQUIVALENT OR THE PROPERTY TAXES:
EXCESS OF QUALIFYING
REAL PROPERTY TAXES
OVER THE FOLLOWING
PERCENTAGE OF
HOUSEHOLD GROSS
INCOME:
LESS THAN $100,000 4 9.0
$100,000 TO LESS THAN 5 6.0
$150,000
$150,000 TO LESS THAN 6 3.0
$200,000
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed five hundred dollars FOR A
RENTER AND MAY NOT EXCEED ONE THOUSAND DOLLARS FOR A PROPERTY OWNER.
S 2. Section 3 of part K of chapter 59 of the laws of 2014, amending
the tax law, relating to establishing an enhanced real property tax
circuit breaker, is amended to read as follows:
S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2014 [and shall expire and be
deemed repealed January 1, 2016].
S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.
PART TT
Section 1. Subsection (t) of section 606 of the tax law, as added by
section 1 of part DD of chapter 63 of the laws of 2000, paragraphs 1 and
2 as amended by section 1 of part N of chapter 85 of the laws of 2002,
is amended to read as follows:
(t) College tuition AND EDUCATION EXPENSES TAX credit. (1) General. A
resident taxpayer shall be allowed the option of claiming a credit, to
be computed as provided in paragraph four of this subsection, against
the tax imposed by this article, or an itemized deduction, to be
computed as provided in paragraph four of subsection (d) of section six
hundred fifteen of this article, for allowable college tuition expenses.
(2) Allowable and qualified college tuition expenses. For the purposes
of this credit and the itemized deduction provided by paragraph four of
subsection (d) of section six hundred fifteen of this article:
(A) The term "allowable college tuition expenses" shall mean the
amount of qualified college tuition expenses of eligible students paid
by the taxpayer during the taxable year, limited to ten thousand dollars
for each such student;
(B) The term "eligible student" shall mean the taxpayer, the taxpay-
er's spouse, and any dependent of the taxpayer with respect to whom the
taxpayer is allowed an exemption under section six hundred sixteen of
this article for the taxable year;
(C) The term "qualified college tuition expenses" shall mean the
tuition required for the enrollment or attendance of an eligible student
at an institution of higher education. Provided, however, tuition
payments made pursuant to the receipt of any scholarships or financial
aid, or tuition required for enrollment or attendance in a course of
study leading to the granting of a post baccalaureate or other graduate
degree, shall be excluded from the definition of "qualified college
expenses"[.];
A. 6009 189
(D) THE TERM "QUALIFIED EDUCATION EXPENSES" SHALL MEAN THE AMOUNT OF
EDUCATION EXPENSES OF ELIGIBLE STUDENTS PAID BY THE TAXPAYER DURING THE
TAXABLE YEAR, LIMITED TO ONE THOUSAND DOLLARS FOR EACH SUCH STUDENT;
(E) THE TERM "EDUCATION EXPENSES" SHALL MEAN EXPENSES FOR QUALIFIED
COLLEGE AND HIGHER EDUCATION, INCURRED AND PAID BY THE TAXPAYER, INCLUD-
ING, BUT NOT LIMITED TO, BOOKS, SUPPLIES, COMPUTER EQUIPMENT (INCLUDING
RELATED SOFTWARE AND SERVICES) AND OTHER EQUIPMENT AND SUPPLEMENTARY
MATERIAL USED IN THE CLASSROOM;
(F) Expenses paid by dependent. If an exemption under section six
hundred sixteen of this article with respect to an individual is allowed
to another taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins,
(i) no credit under this subsection or deduction under paragraph four
of subsection (d) of section six hundred fifteen of this article shall
be allowed to such individual for such individual's taxable year, and
(ii) for purposes of such credit or deduction, qualified college
tuition expenses paid by such individual during such individual's taxa-
ble year shall be treated as paid by such other taxpayer.
(3) Institution of higher education. For the purposes of this credit
and the itemized deduction provided by paragraph four of subdivision (d)
of section six hundred fifteen of this article, the term "institution of
higher education" shall mean any institution of higher education or
business, trade, technical or other occupational school, recognized and
approved by the regents, or any successor organization, of the universi-
ty of the state of New York or accredited by a nationally recognized
accrediting agency or association accepted as such by the regents, or
any successor organization, of the university of the state of New York,
which provides a course of study leading to the granting of a post-sec-
ondary degree, certificate or diploma.
(4) Amount of credit. (I) If allowable college tuition expenses are
less than five thousand dollars, the amount of the credit provided under
this subsection shall be equal to the applicable percentage of the less-
er of allowable college tuition expenses or two hundred dollars. If
allowable college tuition expenses are five thousand dollars or more,
the amount of the credit provided under this subsection shall be equal
to the applicable percentage of the allowable college tuition expenses
multiplied by four percent. Such applicable percentage shall be twenty-
five percent for taxable years beginning in two thousand one, fifty
percent for taxable years beginning in two thousand two, seventy-five
percent for taxable years beginning in two thousand three and one
hundred percent for taxable years beginning after two thousand three.
PROVIDED, HOWEVER, FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND FIFTEEN,
IF THE SUM OF THE ALLOWABLE COLLEGE TUITION EXPENSES AND QUALIFIED
EDUCATION EXPENSES IS LESS THAN FIVE THOUSAND DOLLARS, THE AMOUNT OF THE
CREDIT PROVIDED UNDER THIS SUBSECTION SHALL BE EQUAL TO THE LESSER OF
THE SUM OF SUCH EXPENSES OR FOUR HUNDRED DOLLARS. FOR TAXABLE YEARS
BEGINNING IN TWO THOUSAND FIFTEEN, IF THE SUM OF THE ALLOWABLE COLLEGE
TUITION EXPENSES AND QUALIFIED EDUCATION EXPENSES IS MORE THAN FIVE
THOUSAND DOLLARS, THE AMOUNT OF THE CREDIT PROVIDED UNDER THIS
SUBSECTION SHALL BE EQUAL TO THE SUM OF SUCH EXPENSES MULTIPLIED BY FIVE
PERCENT. FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND SIXTEEN AND THERE-
AFTER, IF THE SUM OF THE ALLOWABLE COLLEGE TUITION AND EDUCATION
EXPENSES IS MORE THAN FIVE THOUSAND DOLLARS, THE AMOUNT OF THE CREDIT
PROVIDED UNDER THIS SUBSECTION SHALL BE EQUAL TO THE SUM OF SUCH
EXPENSES MULTIPLIED BY SIX PERCENT. (II) IN ADDITION, FOR TAXABLE YEARS
BEGINNING IN TWO THOUSAND FIFTEEN, FOR TAXPAYERS WHOSE NEW YORK ADJUSTED
A. 6009 190
GROSS INCOME IS LESS THAN FORTY THOUSAND DOLLARS, THE ADDITIONAL AMOUNT
OF CREDIT SHALL BE EQUAL TO FIVE PERCENT OF THE AMERICAN OPPORTUNITY TAX
CREDIT ALLOWED UNDER PARAGRAPH (I) OF SECTION 25A OF THE INTERNAL REVEN-
UE CODE FOR THE SAME YEAR. FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND
SIXTEEN AND THEREAFTER, THE ADDITIONAL AMOUNT OF THE CREDIT SHALL BE
EQUAL TO TEN PERCENT OF THE AMERICAN OPPORTUNITY TAX CREDIT ALLOWED FOR
THE SAME YEAR. IF THE AMERICAN OPPORTUNITY TAX CREDIT CEASED TO EXIST
AT ANY TAXABLE YEAR OR YEARS, SUCH ADDITIONAL CREDIT SHALL BE COMPUTED
BASED ON THE AMERICAN OPPORTUNITY TAX CREDIT AS IT EXISTED ON THE FIRST
DAY OF TWO THOUSAND FIFTEEN. FOR THE PURPOSE OF COMPUTING THE AMOUNT OF
THE CREDIT UNDER THIS SUBSECTION, BUT NOT INCLUDING THE ADDITIONAL
AMOUNT CLAIMED FOR THE AMERICAN OPPORTUNITY TAX CREDIT THE SUM OF ALLOW-
ABLE COLLEGE TUITION AND QUALIFIED EDUCATION EXPENSES SHALL NOT EXCEED
TEN THOUSAND DOLLARS FOR ANY TAXABLE YEAR.
(5) Refundability. The credit under this subsection shall be allowed
against the taxes imposed by this article for the taxable year reduced
by the credits permitted by this article. If the credit exceeds the tax
as so reduced, the taxpayer may receive, and the comptroller, subject to
a certificate of the commissioner, shall pay as an overpayment, without
interest, the amount of such excess.
(6) Limitation. No credit shall be allowed under this subsection to a
taxpayer who claims the itemized deduction provided under paragraph four
of subdivision (d) of section six hundred fifteen of this article.
S 2. This act shall take effect immediately and shall apply to taxable
years commencing on and after January 1, 2015.
PART UU
Section 1. Paragraph 1 of subdivision (f) of section 16 of the tax
law, as amended by section 34 of part A of chapter 59 of the laws of
2014, is amended to read as follows:
(1) General. The tax factor shall be, in the case of article nine-A of
this chapter, the amount of tax determined for the taxable year under
paragraph (a) of subdivision one of section two hundred ten of such
article. The tax factor shall be, in the case of article twenty-two of
this chapter, the tax determined for the taxable year under subsections
(a) through (d) of section six hundred one of such article. PROVIDED
HOWEVER, TAXPAYERS FILING UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL
INCLUDE FOR THE PURPOSES OF THE TAX FACTOR ALL BUSINESS INCOME ATTRIBUT-
ABLE TO A QEZE BUSINESS WHICH IS TAXABLE UNDER ARTICLE TWENTY-TWO OF
THIS CHAPTER. The tax factor shall be, in the case of article thirty-
three of this chapter, the larger of the amounts of tax determined for
the taxable year under paragraphs one and three of subdivision (a) of
section fifteen hundred two of such article.
S 2. This act shall take effect immediately.
PART VV
Section 1. Section 1115 of the tax law is amended by adding a new
subdivision (jj) to read as follows:
(JJ) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE: (1)
RECEIPTS IN EXCESS OF TWO HUNDRED THIRTY THOUSAND DOLLARS FROM EVERY
SALE OF, AND CONSIDERATION IN EXCESS OF TWO HUNDRED THIRTY THOUSAND
DOLLARS GIVEN OR CONTRACTED TO BE GIVEN FOR, OR FOR THE USE OF, A VESSEL
SHALL BE EXEMPT FROM THE TAXES IMPOSED BY THIS ARTICLE.
A. 6009 191
(2) FOR PURPOSES OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ELEVEN
OF THIS ARTICLE, THE PURCHASE PRICE, CURRENT MARKET VALUE, OR FAIR
RENTAL VALUE, AS THE CASE MAY BE, OF A VESSEL PURCHASED BY A RESIDENT OF
NEW YORK STATE OUTSIDE OF THIS STATE FOR USE OUTSIDE OF THIS STATE THAT
SUBSEQUENTLY BECOMES SUBJECT TO THE COMPENSATING USE TAX IMPOSED UNDER
THIS ARTICLE SHALL BE DEEMED NOT TO EXCEED TWO HUNDRED THIRTY THOUSAND
DOLLARS.
(3) FOR PURPOSES OF SUBDIVISION (I) OF SECTION ELEVEN HUNDRED ELEVEN
OF THIS ARTICLE, RECEIPTS OR CONSIDERATION FOR THE LEASE OF A VESSEL
SUBJECT TO SUCH SUBDIVISION (I) IN EXCESS OF TWO HUNDRED THIRTY THOUSAND
DOLLARS SHALL BE EXEMPT FROM THE CALCULATION OF TAX DUE UNDER SUCH
SUBDIVISION (I).
(4) FOR PURPOSES OF PARAGRAPH ONE OF SUBDIVISION (Q) OF SECTION ELEVEN
HUNDRED ELEVEN OF THIS ARTICLE, THE LIMITATIONS ON EXCLUSIONS FROM THE
DEFINITION OF RETAIL SALE IN PARAGRAPH ONE OF SUCH SUBDIVISION SHALL
APPLY ONLY TO THE FIRST TWO HUNDRED THIRTY THOUSAND DOLLARS OF RECEIPTS
FROM EVERY SALE OF, OR CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN
FOR, OR FOR THE USE OF, A VESSEL.
(5) FOR PURPOSES OF PARAGRAPH TWO OF SUBDIVISION (Q) OF SECTION ELEVEN
HUNDRED ELEVEN OF THIS ARTICLE, THE PURCHASE PRICE OR MARKET VALUE, AS
THE CASE MAY BE, OF A VESSEL SUBJECT TO TAX UNDER PARAGRAPH TWO OF SUCH
SUBDIVISION (Q) SHALL BE DEEMED NOT TO EXCEED TWO HUNDRED THIRTY THOU-
SAND DOLLARS.
(6) FOR PURPOSES OF SUBDIVISION TWO OF SECTION ELEVEN HUNDRED EIGHTEEN
OF THIS PART, THE LIMITATION ON THE EXCLUSION FROM COMPENSATING USE TAX
IN SUCH SUBDIVISION TWO WITH RESPECT TO QUALIFIED PROPERTY, AS DEFINED
IN SUCH SUBDIVISION, SHALL APPLY ONLY TO THE FIRST TWO HUNDRED THIRTY
THOUSAND DOLLARS OF CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN FOR,
OR FOR THE USE OF, A VESSEL.
(7) FOR PURPOSES OF PARAGRAPH (A) OF SUBDIVISION SEVEN OF SECTION
ELEVEN HUNDRED EIGHTEEN OF THIS PART, THE REFUND OR CREDIT ALLOWABLE
UNDER PARAGRAPH (A) OF SUCH SUBDIVISION SEVEN SHALL BE COMPUTED ONLY
WITH REGARD TO TAX LEGALLY DUE AND PAID TO ANOTHER STATE ON THE FIRST
TWO HUNDRED THIRTY THOUSAND DOLLARS OF THE PURCHASE PRICE.
(8) EXCEPT AS OTHERWISE PROVIDED HEREIN, THIS SUBDIVISION SHALL NOT BE
DEEMED TO LIMIT ANY OTHER EXEMPTION OR EXCLUSION IN THIS ARTICLE RELAT-
ING TO A VESSEL.
S 2. Section 1118 of the tax law is amended by adding a new subdivi-
sion 13 to read as follows:
(13) (A) IN RESPECT TO THE USE OF A VESSEL BY THE PURCHASER THEREOF IN
THIS STATE FOR NOT MORE THAN TWENTY DAYS PER CALENDAR YEAR.
(B) IF A VESSEL BROUGHT INTO THIS STATE FOR USE UNDER THIS PARAGRAPH
IS PLACED IN A QUALIFIED FACILITY FOR REPAIRS, ALTERATIONS, REFITTING,
OR MODIFICATIONS AND SUCH REPAIRS, ALTERATIONS, REFITTING, OR MODIFICA-
TIONS ARE SUPPORTED BY WRITTEN DOCUMENTATION, THE TWENTY-DAY PERIOD
SHALL BE TOLLED DURING THE TIME THE VESSEL IS PHYSICALLY IN THE CARE,
CUSTODY, AND CONTROL OF A QUALIFIED FACILITY, INCLUDING THE TIME SPENT
ON SEA TRIALS CONDUCTED BY SUCH FACILITY. THE TWENTY-DAY PERIOD MAY BE
TOLLED ONLY ONCE WITHIN A CALENDAR YEAR WHEN A VESSEL IS PLACED FOR THE
FIRST TIME IN SUCH CALENDAR YEAR IN THE PHYSICAL CARE, CUSTODY, AND
CONTROL OF A QUALIFIED FACILITY; HOWEVER, THE COMMISSIONER MAY GRANT
UPON WRITTEN REQUEST OF THE OWNER OF SUCH VESSEL AN ADDITIONAL TOLLING
OF THE TWENTY-DAY PERIOD FOR PURPOSES OF REPAIRS THAT ARISE FROM A WRIT-
TEN GUARANTEE GIVEN BY SUCH FACILITY, WHICH GUARANTEE COVERS ONLY THOSE
REPAIRS OR MODIFICATIONS MADE DURING THE FIRST TOLLED PERIOD. WITHIN
SEVENTY-TWO HOURS AFTER THE DATE UPON WHICH SUCH FACILITY TOOK
A. 6009 192
POSSESSION OF THE VESSEL, THE OWNER MUST OBTAIN DOCUMENTATION, IN SUCH
FORM AS THE COMMISSIONER SHALL PRESCRIBE, WHICH STATES THAT THE VESSEL
IS UNDER THE CARE, CUSTODY, AND CONTROL OF A QUALIFIED FACILITY AND THAT
THE OWNER DOES NOT USE THE VESSEL WHILE IN SUCH FACILITY. UPON
COMPLETION OF THE REPAIRS, ALTERATIONS, REFITTING, OR MODIFICATIONS, THE
OWNER MUST OBTAIN FROM SUCH FACILITY WITHIN SEVENTY-TWO HOURS AFTER THE
DATE THE VESSEL IS RELEASED, DOCUMENTATION THAT SHOWS THE DATE OF
RELEASE AND ANY OTHER INFORMATION THE COMMISSIONER MAY REQUIRE. SUCH
FACILITY SHALL MAINTAIN A LOG THAT DOCUMENTS ALL ALTERATIONS, ADDITIONS,
REPAIRS, AND SEA TRIALS DURING THE TIME A VESSEL IS UNDER ITS CARE,
CUSTODY, AND CONTROL. SUCH DOCUMENTATION SHALL BE MAINTAINED BY SUCH
OWNER AND FACILITY FOR AT LEAST THREE YEARS FROM THE DATE SUCH VESSEL IS
RELEASED.
(C) IF A VESSEL IS BROUGHT INTO THE STATE FOR THE SOLE PURPOSE OF
OFFERING IT FOR SALE UNDER A CONTRACT WITH A BROKER OR DEALER REGISTERED
PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS ARTICLE, SUCH
VESSEL IS EXCLUSIVELY IN THE CARE, CUSTODY AND CONTROL OF SUCH BROKER OR
DEALER, AND NO PERSON MAKES RECREATIONAL USE OF SUCH VESSEL, THE TWEN-
TY-DAY PERIOD SHALL BE TOLLED DURING THE TIME SUCH VESSEL IS IN THE
CARE, CUSTODY AND CONTROL OF SUCH BROKER OR DEALER.
(D) THE MERE STORAGE OF A BOAT AT A QUALIFIED FACILITY DOES NOT QUALI-
FY AS A TAX-EXEMPT USE IN THIS STATE.
(E) AS USED IN THIS SUBDIVISION, "QUALIFIED FACILITY" MEANS A MARINA
OR SIMILAR FACILITY WITHIN THE STATE THAT:
(I) IS LOCATED ON A NAVIGABLE BODY OF WATER;
(II) HAS PIERS AND STORAGE FACILITIES TO PROVIDE BERTHING OF VESSELS
IN ITS CARE, CUSTODY, AND CONTROL; AND
(III) HAS NECESSARY SHOPS AND EQUIPMENT TO PROVIDE REPAIR, ALTERATION,
REFITTING, MODIFICATION OR WARRANTY WORK ON VESSELS.
S 3. This act shall take effect June 1, 2015 and shall apply in
accordance with the applicable provisions of sections 1106 and 1217 of
the tax law.
PART WW
Section 1. The tax law is amended by adding a new section 42 to read
as follows:
S 42. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT.
(1) A TAXPAYER WHICH IS AN ELIGIBLE MUSIC PRODUCTION ENTITY, SUBJECT TO
TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED
A CREDIT AGAINST SUCH TAX TO BE COMPUTED AS PROVIDED HEREIN.
(2) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNERSHIP OR LIMITED
LIABILITY COMPANY) OF TWENTY-FIVE PERCENT AND THE ELIGIBLE PRODUCTION
COSTS OF ONE OR MORE QUALIFIED MUSIC PRODUCTIONS. A TAXPAYER MUST INCUR
AND PAY IN THE TAXABLE YEAR AT LEAST (I) TWENTY-FIVE THOUSAND DOLLARS OF
ELIGIBLE PRODUCTION COSTS IF INCURRED AND PAID WITHIN THE METROPOLITAN
COMMUTER TRANSPORTATION DISTRICT AS DEFINED IN SECTION TWELVE HUNDRED
SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW, OR (II) TWELVE THOUSAND FIVE
HUNDRED DOLLARS IF INCURRED AND PAID OUTSIDE SUCH METROPOLITAN COMMUTER
TRANSPORTATION DISTRICT IN THIS STATE IN ORDER TO RECEIVE THE CREDIT.
(3) ELIGIBLE PRODUCTION COSTS INCURRED IN THIS STATE BUT OUTSIDE SUCH
METROPOLITAN COMMUTER TRANSPORTATION DISTRICT SHALL BE ELIGIBLE FOR A
CREDIT OF TEN PERCENT OF SUCH ELIGIBLE PRODUCTION COSTS IN ADDITION TO
THE CREDIT SPECIFIED IN PARAGRAPH TWO OF THIS SUBDIVISION.
A. 6009 193
(4) ELIGIBLE PRODUCTION COSTS RELATED TO EMERGING ARTISTS PROJECTS
SHALL BE ELIGIBLE FOR A CREDIT OF TEN PERCENT OF SUCH ELIGIBLE
PRODUCTION COSTS IN ADDITION TO THE CREDITS SPECIFIED IN PARAGRAPH TWO
OF THIS SUBDIVISION.
(5) NO ELIGIBLE PRODUCTION COSTS CLAIMED BY A TAXPAYER AS THE BASIS
FOR THE CREDIT UNDER THIS SECTION SHALL BE USED BY SUCH TAXPAYER TO
CLAIM ANY OTHER CREDIT PURSUANT TO THIS CHAPTER.
(B) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SECTION, SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED TEN-B
AND SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
TAXABLE YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS. SUCH AGGREGATE
AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE EMPIRE STATE DEVELOPMENT
CORPORATION AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF
FILING AN APPLICATION FOR ALLOCATION OF MUSIC PRODUCTION CREDIT WITH
SUCH OFFICE. NO SINGLE TAXPAYER MAY CLAIM OR BE AWARDED MORE THAN TEN
PERCENT OF THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS
SECTION ANNUALLY. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR
IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED
AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT TAXABLE
YEAR.
(C) DEFINITIONS. AS USED IN THIS SECTION:
(1) "ELIGIBLE MUSIC PRODUCTION ENTITY" INCLUDES A CORPORATION, SOLE
PROPRIETORSHIP, PARTNERSHIP, LIMITED PARTNERSHIP, LIMITED LIABILITY
COMPANY, OR OTHER ENTITY.
(2) "ELIGIBLE MUSIC PRODUCTION" IS A MUSIC PRODUCTION THAT RESULTS IN
A COMMERCIALLY RELEASED SOUND RECORDING OF AT LEAST EIGHT MINUTES IN
AGGREGATE IN WHICH ELIGIBLE PRODUCTION COSTS EQUAL TO OR ARE IN EXCESS
OF SEVEN THOUSAND FIVE HUNDRED DOLLARS IF INCURRED AND PAID IN THIS
STATE IN THE TWELVE MONTHS PRECEDING THE DATE ON WHICH THE CREDIT IS
CLAIMED. PROVIDED, HOWEVER, IF SUCH PRODUCTION COSTS ARE INCURRED AND
PAID OUTSIDE THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT IN THIS
STATE SUCH PRODUCTION COSTS SHALL BE EQUAL TO OR IN EXCESS OF THREE
THOUSAND SEVEN HUNDRED FIFTY DOLLARS TO BE DEEMED AS AN ELIGIBLE MUSIC
PRODUCTION FOR PURPOSE OF THIS PARAGRAPH. IN ADDITION, SUCH PRODUCTION
SHALL EMPLOY AT LEAST TEN EMPLOYEES FOR THE DURATION OF THE PRODUCTION,
OR FIVE EMPLOYEES IF SUCH PRODUCTION TOOK PLACE PRIMARILY OUTSIDE THE
METROPOLITAN COMMUTER TRANSPORTATION DISTRICT IN THIS STATE FOR THE
DURATION OF THE PRODUCTION.
(3) "ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION" ARE
COSTS PAID AND INCURRED IN THIS STATE FOR TANGIBLE PROPERTY AND SERVICES
USED IN THE PRODUCTION OF QUALIFIED MUSIC PRODUCTION, AS DETERMINED BY
THE DEPARTMENT OF ECONOMIC DEVELOPMENT, INCLUDING, BUT NOT LIMITED TO:
STUDIO RENTAL FEES AND RELATED COSTS; INSTRUMENT AND EQUIPMENT RENTAL
FEES; PRODUCTION SESSION FEES FOR MUSICIANS, SONGWRITERS, COMPOSERS,
ARRANGERS, MUSIC PRODUCERS, PROGRAMMERS, ENGINEERS, AND TECHNICIANS;
MIXING AND MASTERING SERVICES OF QUALIFYING MUSIC PRODUCTIONS; AND LOCAL
TRANSPORTATION EXPENDITURES DIRECTLY RELATED TO MUSIC PRODUCTION AND
PROVIDED AT OR TO THE SITE OF SUCH MUSIC PRODUCTION. ELIGIBLE PRODUCTION
COSTS DO NOT INCLUDE COSTS FOR TANGIBLE PROPERTY, OR SERVICES USED OR
PERFORMED OUTSIDE OF THIS STATE; RECORDING COSTS OF ANY NATURE INCURRED
FOR RECORDING OF LIVE CONCERTS, OR RECORDINGS THAT ARE PRIMARILY SPOKEN
WORD OR WILDLIFE OR NATURE SOUNDS, OR PRODUCED FOR INSTRUCTIONAL USE OR
ADVERTISING OR PROMOTIONAL PURPOSES; ARTISTS AND PRODUCER ROYALTIES OR
ADVANCES; LICENSING FEES FOR SAMPLES; INTERPOLATIONS OR OTHER MUSIC
CLEARANCE COSTS; MASTERING OR POST-PRODUCTION EXPENDITURES FOR PROJECTS
A. 6009 194
THAT WERE NOT PRINCIPALLY TRACKED AND RECORDED IN THIS STATE; NOR ANY
COSTS ASSOCIATED WITH MANUFACTURING, DUPLICATION, PACKAGING, DISTRIB-
UTION, PROMOTION, MARKETING AND TOURING NOT SPECIFICALLY OUTLINED ABOVE.
EXCEPT AS OTHERWISE SPECIFIED HEREIN FOR EMERGING ARTISTS, THAT PORTION
OF ANY FEES PAID FOR ANY INDIVIDUAL MUSICIAN, SONGWRITER, COMPOSER,
ARRANGER, MUSIC PRODUCER, PROGRAMMER, ENGINEER, OR TECHNICIAN, SHALL NOT
EXCEED TEN PERCENT OF TOTAL ELIGIBLE PRODUCTION COSTS SUBMITTED FOR ANY
ONE QUALIFIED MUSIC PRODUCTION. SUCH TOTAL PRODUCTION COSTS INCURRED AND
PAID IN THIS STATE SHALL BE EQUAL TO OR EXCEED FIFTY PERCENT OF TOTAL
COST OF AN ELIGIBLE PRODUCTION INCURRED AND PAID WITHIN AND WITHOUT THIS
STATE.
(4) "EMERGING ARTIST" IS A CITIZEN OR PERMANENT RESIDENT ALIEN WHO HAS
NOT PREVIOUSLY RELEASED AN ALBUM. A GROUP IS AN EMERGING GROUP IF MORE
THAN FIFTY PERCENT OF ITS MEMBERS ARE EMERGING ARTISTS.
(5) "EMERGING ARTIST PROJECT" IS A PROJECT IN WHICH THE PRIMARY ARTIST
IS AN EMERGING ARTIST.
(D) REPORTING. THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT,
ON OR BEFORE DECEMBER FIRST OF EACH YEAR, TO THE GOVERNOR, THE DIRECTOR
OF THE DIVISION OF THE BUDGET, THE TEMPORARY PRESIDENT OF THE SENATE,
AND THE SPEAKER OF THE ASSEMBLY AN ANNUAL REPORT INCLUDING, BUT NOT
LIMITED TO, THE FOLLOWING INFORMATION REGARDING THE PREVIOUS CALENDAR
YEAR REGIONALLY, FOR ACTIVITY WITHIN AND WITHOUT THE METROPOLITAN COMMU-
TER TRANSPORTATION DISTRICT: THE TOTAL DOLLAR AMOUNT OF CREDITS ALLO-
CATED, THE NAME AND ADDRESS OF EACH ELIGIBLE MUSIC PRODUCTION COMPANY
ALLOCATED CREDITS UNDER THIS SECTION, THE TOTAL AMOUNT OF CREDITS ALLO-
CATED TO EACH ELIGIBLE MUSIC PRODUCTION COMPANY, THE TOTAL AMOUNT OF
ELIGIBLE PRODUCTION COSTS AND ELIGIBLE PRODUCTION COSTS FOR EACH ELIGI-
BLE MUSIC PRODUCTION COMPANY, AND THE ESTIMATED NUMBER OF EMPLOYEES,
CREDIT-ELIGIBLE MAN HOURS, AND CREDIT-ELIGIBLE WAGES ASSOCIATED WITH
EACH ELIGIBLE MUSIC PRODUCTION COMPANY ALLOCATED CREDITS UNDER THIS
SECTION. THE REPORT MAY ALSO INCLUDE ANY RECOMMENDATIONS FOR CHANGES IN
THE CALCULATION OR ADMINISTRATION OF THE CREDIT, RECOMMENDATIONS REGARD-
ING CONTINUING MODIFICATION OR REPEAL OF THIS CREDIT, AND ANY OTHER
INFORMATION REGARDING THIS CREDIT AS MAY BE USEFUL AND APPROPRIATE. IN
ADDITION, THE COMMISSIONER SHALL ANNUALLY PREPARE SUCH REPORT FOR THE
POSTING ON THE DEPARTMENT'S WEBSITE AS SOON AS SUCH REPORT IS SUBMITTED
TO THE GOVERNOR, THE DIRECTOR OF THE BUDGET, THE TEMPORARY PRESIDENT OF
THE SENATE, AND THE SPEAKER OF THE ASSEMBLY.
(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-B, SUBDIVISION 49.
(2) ARTICLE 22: SECTION 606, SUBSECTION (I), PARAGRAPH (1), SUBPARA-
GRAPH (B), CLAUSE (XLI).
(3) ARTICLE 22: SECTION 606, SUBSECTION (CCC).
S 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
49. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-TWO OF THIS CHAPTER
SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
FORTY-TWO AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. 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
SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN
A. 6009 195
OVERPAYMENT 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
EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID
THEREON.
S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xli) to read as
follows:
(XLI) EMPIRE STATE MUSIC AMOUNT OF CREDIT
PRODUCTION CREDIT UNDER UNDER SUBDIVISION
SUBSECTION (CCC) FORTY-NINE OF SECTION TWO
HUNDRED TEN-B
S 4. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
(CCC) EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-TWO OF THIS CHAPTER
SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
FORTY-TWO AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
S 5. The state commissioner of economic development, after consulting
with the state commissioner of taxation and finance, shall promulgate
regulations by October 31, 2015 to establish procedures for the allo-
cation of tax credits as required by subdivision (a) of section 42 of
the tax law as added by section one of this act. Such rules and regu-
lations shall include provisions describing the application process, the
due dates for such applications, the standards which shall be used to
evaluate the applications, the documentation that will be provided to
taxpayers to substantiate to the New York state department of taxation
and finance the amount of tax credits allocated to such taxpayers, the
circumstances to which such tax credit may be revoked, and such other
provisions as deemed necessary and appropriate. Notwithstanding any
other provisions to the contrary in the state administrative procedure
act, such rules and regulations may be adopted on an emergency basis if
necessary to meet such October 31, 2015 deadline.
S 6. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.
PART XX
Section 1. Paragraph 4 of subsection (b) of section 800 of the tax
law, as added by section 1 of part B of chapter 56 of the laws of 2011,
is amended to read as follows:
(4) Any eligible educational institution. An "eligible educational
institution" shall mean any public school district, a board of cooper-
ative educational services, a public elementary or secondary school, a
school approved pursuant to article eighty-five or eighty-nine of the
education law to serve students with disabilities of school age, or a
nonpublic elementary or secondary school that provides instruction in
grade one or above, ALL PUBLIC LIBRARY SYSTEMS AS DEFINED IN SUBDIVISION
ONE OF SECTION TWO HUNDRED SEVENTY-TWO OF THE EDUCATION LAW, AND ALL
PUBLIC AND FREE ASSOCIATION LIBRARIES AS SUCH TERMS ARE DEFINED IN
SUBDIVISION TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THE EDUCATION LAW.
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S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.
PART YY
Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by section 1 of part Z
of chapter 59 of the laws of 2014, is amended to read as follows:
(F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
agraph, when a vendor track, is located in Sullivan county and within
sixty miles from any gaming facility in a contiguous state such vendor
fee shall, for a period of [seven] EIGHT years commencing April first,
two thousand eight, be at a rate of forty-one percent of the total
revenue wagered at the vendor track after payout for prizes pursuant to
this chapter, after which time such rate shall be as for all tracks in
clause (C) of this subparagraph.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2015.
PART ZZ
Section 1. Subdivision 7 of section 221 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 18 of the laws of 2008,
is amended to read as follows:
7. In order to pay the costs of the insurance required by this section
and by the workers' compensation law and to carry out its other powers
and duties and to pay for any of its liabilities under section four-
teen-a of the workers' compensation law, the New York Jockey Injury
Compensation Fund, Inc. shall ascertain the total funding necessary and
establish the sums that are to be paid by all owners and trainers
licensed or required to be licensed under section two hundred twenty of
this article, to obtain the total funding amount required annually. In
order to provide that any sum required to be paid by an owner or trainer
is equitable, the fund shall establish payment schedules which reflect
such factors as are appropriate, including where applicable, the
geographic location of the racing corporation at which the owner or
trainer participates, the duration of such participation, the amount of
any purse earnings, the number of horses involved, or such other factors
as the fund shall determine to be fair, equitable and in the best inter-
ests of racing. In no event shall the amount deducted from an owner's
share of purses exceed [one] TWO per centum. THE AMOUNT DEDUCTED FROM AN
OWNER'S SHARE OF PURSES SHALL NOT EXCEED ONE PER CENTUM AFTER APRIL
FIRST, TWO THOUSAND SEVENTEEN. In the cases of multiple ownerships and
limited racing appearances, the fund shall equitably adjust the sum
required.
The state racing and wagering board shall, as a condition of racing,
require any racing corporation or any quarterhorse racing association or
corporation authorized under this chapter to conduct pari-mutuel betting
at a race meeting or races run thereat, to require that each trainer
utilizing the facilities of such association or corporation and each
owner racing a horse shall place or have placed on deposit with the
horsemen's bookkeeper of such racing association or corporation, an
amount to be established and paid in a manner to be determined by the
fund.
Should the fund determine that the amount which has been collected in
the manner prescribed is inadequate to pay the annual costs required by
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this section, it shall notify the state racing and wagering board of the
deficiency and the amount of the additional sum or sums necessary to be
paid by each owner and/or trainer in order to cover such deficiency. The
state racing and wagering board shall, as an additional condition of
racing, direct any racing corporation or any quarterhorse racing associ-
ation or corporation authorized under this chapter to conduct pari-mutu-
el betting at a race meeting or races run thereat, to require each
trainer and owner to place such additional sum or sums on deposit with
the respective horsemen's bookkeeper.
All amounts collected by a horsemen's bookkeeper pursuant to this
section shall be transferred to the fund created under this section and
shall be used by the fund to purchase workers' compensation insurance
for jockeys, apprentice jockeys and exercise persons licensed pursuant
to this article or article four of this chapter who are employees under
section two of the workers' compensation law, to pay for any of its
liabilities under section fourteen-a of the workers' compensation law
and to administer the workers' compensation program for such jockeys,
apprentice jockeys and exercise persons required by this section and the
workers' compensation law.
S 2. This act shall take effect immediately.
PART AAA
Section 1. This act enacts into law major components of legislation
relating to Lower Manhattan and the city of New York. Each component is
wholly contained within a Subpart identified as Subparts A through D.
The effective date for each particular provision contained within such
Subpart is set forth in the last section of such Subpart. Any provision
in any section contained within a Subpart, including the effective date
of the Subpart, which makes a reference to a section "of this act", when
used in connection with that particular component, shall be deemed to
mean and refer to the corresponding section of the Subpart in which it
is found.
SUBPART A
Section 1. Subparagraph (A) of paragraph 7 of subdivision (ee) of
section 1115 of the tax law, as amended by section 1 of subpart A of
part GG of chapter 59 of the laws of 2014, is amended to read as
follows:
(A) "Tenant" means a person who, as lessee, enters into a space lease
with a landlord for a term of ten years or more commencing on or after
September first, two thousand five, but not later than, in the case of a
space lease with respect to leased premises located in eligible areas as
defined in clause (i) of subparagraph (D) of this paragraph, September
first, two thousand [fifteen] NINETEEN and, in the case of a space lease
with respect to leased premises located in eligible areas as defined in
clause (ii) of subparagraph (D) of this paragraph not later than Septem-
ber first, two thousand [seventeen] TWENTY-ONE, of premises for use as
commercial office space in buildings located or to be located in the
eligible areas. A person who currently occupies premises for use as
commercial office space under an existing lease in a building in the
eligible areas shall not be eligible for exemption under this subdivi-
sion unless such existing lease, in the case of a space lease with
respect to leased premises located in eligible areas as defined in
clause (i) of subparagraph (D) of this paragraph expires according to
A. 6009 198
its terms before September first, two thousand [fifteen] NINETEEN or
such existing lease, in the case of a space lease with respect to leased
premises located in eligible areas as defined in clause (ii) of subpara-
graph (D) of this paragraph and such person enters into a space lease,
for a term of ten years or more commencing on or after September first,
two thousand five, of premises for use as commercial office space in a
building located or to be located in the eligible areas, provided that
such space lease with respect to leased premises located in eligible
areas as defined in clause (i) of subparagraph (D) of this paragraph
commences no later than September first, two thousand [fifteen]
NINETEEN, and provided that such space lease with respect to leased
premises located in eligible areas as defined in clause (ii) of subpara-
graph (D) of this paragraph commences no later than September first, two
thousand [seventeen] TWENTY-ONE and provided, further, that such space
lease shall expire no earlier than ten years after the expiration of the
original lease.
S 2. Section 2 of part C of chapter 2 of the laws of 2005 amending
the tax law relating to exemptions from sales and use taxes, as amended
by section 2 of subpart A of part GG of chapter 59 of the laws of 2014,
is amended to read as follows:
S 2. This act shall take effect September 1, 2005 and shall expire and
be deemed repealed on December 1, [2018] 2022, and shall apply to sales
made, uses occurring and services rendered on or after such effective
date, in accordance with the applicable transitional provisions of
sections 1106 and 1217 of the tax law; except that clause (i) of subpar-
agraph (D) of paragraph seven of subdivision (ee) of section 1115 of the
tax law, as added by section one of this act, shall expire and be deemed
repealed December 1, [2016] 2020.
S 3. This act shall take effect immediately and shall be deemed to
have been in full force and effect after June 30, 2015; provided, howev-
er, that the amendment to subparagraph (A) of paragraph 7 of subdivision
(ee) of section 1115 of the tax law made by section one of this act
shall not affect the repeal of such subdivision and shall be deemed
repealed therewith.
SUBPART B
Section 1. Subdivision (b) of section 25-z of the general city law, as
amended by section 1 of subpart D of part GG of chapter 59 of the laws
of 2014, is amended to read as follows:
(b) No eligible business shall be authorized to receive a credit under
any local law enacted pursuant to this article until the premises with
respect to which it is claiming the credit meet the requirements in the
definition of eligible premises and until it has obtained a certif-
ication of eligibility from the mayor of such city or an agency desig-
nated by such mayor, and an annual certification from such mayor or an
agency designated by such mayor as to the number of eligible aggregate
employment shares maintained by such eligible business that may qualify
for obtaining a tax credit for the eligible business' taxable year. Any
written documentation submitted to such mayor or such agency or agencies
in order to obtain any such certification shall be deemed a written
instrument for purposes of section 175.00 of the penal law. Such local
law may provide for application fees to be determined by such mayor or
such agency or agencies. No such certification of eligibility shall be
issued under any local law enacted pursuant to this article to an eligi-
A. 6009 199
ble business on or after July first, two thousand [fifteen] NINETEEN
unless:
(1) prior to such date such business has purchased, leased or entered
into a contract to purchase or lease particular premises or a parcel on
which will be constructed such premises or already owned such premises
or parcel;
(2) prior to such date improvements have been commenced on such prem-
ises or parcel, which improvements will meet the requirements of subdi-
vision (e) of section twenty-five-y of this article relating to expendi-
tures for improvements;
(3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or agen-
cies with respect to a proposed relocation to such particular premises;
and
(4) such business relocates to such particular premises not later than
thirty-six months or, in a case in which the expenditures made for the
improvements specified in paragraph two of this subdivision are in
excess of fifty million dollars within seventy-two months from the date
of submission of such preliminary application.
S 2. Subdivision (b) of section 25-ee of the general city law, as
amended by section 2 of subpart D of part GG of chapter 59 of the laws
of 2014, is amended to read as follows:
(b) No eligible business or special eligible business shall be author-
ized to receive a credit against tax under any local law enacted pursu-
ant to this article until the premises with respect to which it is
claiming the credit meet the requirements in the definition of eligible
premises and until it has obtained a certification of eligibility from
the mayor of such city or any agency designated by such mayor, and an
annual certification from such mayor or an agency designated by such
mayor as to the number of eligible aggregate employment shares main-
tained by such eligible business or such special eligible business that
may qualify for obtaining a tax credit for the eligible business' taxa-
ble year. No special eligible business shall be authorized to receive a
credit against tax under the provisions of this article unless the
number of relocated employee base shares calculated pursuant to subdivi-
sion (o) of section twenty-five-dd of this article is equal to or great-
er than the lesser of twenty-five percent of the number of New York city
base shares calculated pursuant to subdivision (p) of such section and
two hundred fifty employment shares. Any written documentation submitted
to such mayor or such agency or agencies in order to obtain any such
certification shall be deemed a written instrument for purposes of
section 175.00 of the penal law. Such local law may provide for applica-
tion fees to be determined by such mayor or such agency or agencies. No
certification of eligibility shall be issued under any local law enacted
pursuant to this article to an eligible business on or after July first,
two thousand [fifteen] NINETEEN unless:
(1) prior to such date such business has purchased, leased or entered
into a contract to purchase or lease premises in the eligible Lower
Manhattan area or a parcel on which will be constructed such premises;
(2) prior to such date improvements have been commenced on such prem-
ises or parcel, which improvements will meet the requirements of subdi-
vision (e) of section twenty-five-dd of this article relating to expend-
itures for improvements;
(3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or agen-
cies with respect to a proposed relocation to such premises; and
A. 6009 200
(4) such business relocates to such premises as provided in subdivi-
sion (j) of section twenty-five-dd of this article not later than thir-
ty-six months or, in a case in which the expenditures made for the
improvements specified in paragraph two of this subdivision are in
excess of fifty million dollars within seventy-two months from the date
of submission of such preliminary application.
S 3. Subdivision (b) of section 22-622 of the administrative code of
the city of New York, as amended by section 3 of subpart D of part GG of
chapter 59 of the laws of 2014, is amended to read as follows:
(b) No eligible business shall be authorized to receive a credit
against tax or a reduction in base rent subject to tax under the
provisions of this chapter, and of title eleven of the code as described
in subdivision (a) of this section, until the premises with respect to
which it is claiming the credit meet the requirements in the definition
of eligible premises and until it has obtained a certification of eligi-
bility from the mayor or an agency designated by the mayor, and an annu-
al certification from the mayor or an agency designated by the mayor as
to the number of eligible aggregate employment shares maintained by such
eligible business that may qualify for obtaining a tax credit for the
eligible business' taxable year. Any written documentation submitted to
the mayor or such agency or agencies in order to obtain any such certif-
ication shall be deemed a written instrument for purposes of section
175.00 of the penal law. Application fees for such certifications shall
be determined by the mayor or such agency or agencies. No certification
of eligibility shall be issued to an eligible business on or after July
first, two thousand [fifteen] NINETEEN unless:
(1) prior to such date such business has purchased, leased or entered
into a contract to purchase or lease particular premises or a parcel on
which will be constructed such premises or already owned such premises
or parcel;
(2) prior to such date improvements have been commenced on such prem-
ises or parcel which improvements will meet the requirements of subdivi-
sion (e) of section 22-621 of this chapter relating to expenditures for
improvements;
(3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or agen-
cies with respect to a proposed relocation to such particular premises;
and
(4) such business relocates to such particular premises not later than
thirty-six months or, in a case in which the expenditures made for
improvements specified in paragraph two of this subdivision are in
excess of fifty million dollars within seventy-two months from the date
of submission of such preliminary application.
S 4. Subdivision (b) of section 22-624 of the administrative code of
the city of New York, as amended by section 4 of subpart D of part GG of
chapter 59 of the laws of 2014, is amended to read as follows:
(b) No eligible business or special eligible business shall be author-
ized to receive a credit against tax under the provisions of this chap-
ter, and of title eleven of the code as described in subdivision (a) of
this section, until the premises with respect to which it is claiming
the credit meet the requirements in the definition of eligible premises
and until it has obtained a certification of eligibility from the mayor
or an agency designated by the mayor, and an annual certification from
the mayor or an agency designated by the mayor as to the number of
eligible aggregate employment shares maintained by such eligible busi-
ness or special eligible business that may qualify for obtaining a tax
A. 6009 201
credit for the eligible business' taxable year. No special eligible
business shall be authorized to receive a credit against tax under the
provisions of this chapter and of title eleven of the code unless the
number of relocated employee base shares calculated pursuant to subdivi-
sion (o) of section 22-623 of this chapter is equal to or greater than
the lesser of twenty-five percent of the number of New York city base
shares calculated pursuant to subdivision (p) of such section 22-623,
and two hundred fifty employment shares. Any written documentation
submitted to the mayor or such agency or agencies in order to obtain any
such certification shall be deemed a written instrument for purposes of
section 175.00 of the penal law. Application fees for such certif-
ications shall be determined by the mayor or such agency or agencies. No
certification of eligibility shall be issued to an eligible business on
or after July first, two thousand [fifteen] NINETEEN unless:
(1) prior to such date such business has purchased, leased or entered
into a contract to purchase or lease premises in the eligible Lower
Manhattan area or a parcel on which will be constructed such premises;
(2) prior to such date improvements have been commenced on such prem-
ises or parcel, which improvements will meet the requirements of subdi-
vision (e) of section 22-623 of this chapter relating to expenditures
for improvements;
(3) prior to such date such business submits a preliminary application
for a certification of eligibility to such mayor or such agency or agen-
cies with respect to a proposed relocation to such premises; and
(4) such business relocates to such premises not later than thirty-six
months or, in a case in which the expenditures made for the improvements
specified in paragraph two of this subdivision are in excess of fifty
million dollars within seventy-two months from the date of submission of
such preliminary application.
S 5. This act shall take effect immediately and shall be deemed to
have been in full force and effect after June 30, 2015.
SUBPART C
Section 1. Paragraph 1 of subdivision (b) of section 25-s of the
general city law, as amended by section 1 of subpart E of part GG of
chapter 59 of the laws of 2014, is amended to read as follows:
(1) non-residential premises that are wholly contained in property
that is eligible to obtain benefits under title two-D or two-F of arti-
cle four of the real property tax law, or would be eligible to receive
benefits under such article except that such property is exempt from
real property taxation and the requirements of paragraph (b) of subdivi-
sion seven of section four hundred eighty-nine-dddd of such title two-D,
or the requirements of subparagraph (ii) of paragraph (b) of subdivision
five of section four hundred eighty-nine-cccccc of such title two-F,
whichever is applicable, have not been satisfied, provided that applica-
tion for such benefits was made after May third, nineteen hundred eight-
y-five and prior to July first, two thousand [fifteen] NINETEEN, that
construction or renovation of such premises was described in such appli-
cation, that such premises have been substantially improved by such
construction or renovation so described, that the minimum required
expenditure as defined in such title two-D or two-F, whichever is appli-
cable, has been made, and that such real property is located in an
eligible area; or
A. 6009 202
S 2. Paragraph 3 of subdivision (b) of section 25-s of the general
city law, as amended by section 2 of subpart E of part GG of chapter 59
of the laws of 2014, is amended to read as follows:
(3) non-residential premises that are wholly contained in real proper-
ty that has obtained approval after October thirty-first, two thousand
and prior to July first, two thousand [fifteen] NINETEEN for financing
by an industrial development agency established pursuant to article
eighteen-A of the general municipal law, provided that such financing
has been used in whole or in part to substantially improve such premises
(by construction or renovation), and that expenditures have been made
for improvements to such real property in excess of ten per centum of
the value at which such real property was assessed for tax purposes for
the tax year in which such improvements commenced, that such expendi-
tures have been made within thirty-six months after the earlier of (i)
the issuance by such agency of bonds for such financing, or (ii) the
conveyance of title to such property to such agency, and that such real
property is located in an eligible area; or
S 3. Paragraph 5 of subdivision (b) of section 25-s of the general
city law, as amended by section 3 of subpart E of part GG of chapter 59
of the laws of 2014, is amended to read as follows:
(5) non-residential premises that are wholly contained in real proper-
ty owned by such city or the New York state urban development corpo-
ration, or a subsidiary thereof, a lease for which was approved in
accordance with the applicable provisions of the charter of such city or
by the board of directors of such corporation, and such approval was
obtained after October thirty-first, two thousand and prior to July
first, two thousand [fifteen] NINETEEN, provided, however, that such
premises were constructed or renovated subsequent to such approval, that
expenditures have been made subsequent to such approval for improvements
to such real property (by construction or renovation) in excess of ten
per centum of the value at which such real property was assessed for tax
purposes for the tax year in which such improvements commenced, that
such expenditures have been made within thirty-six months after the
effective date of such lease, and that such real property is located in
an eligible area; or
S 4. Paragraph 2 of subdivision (c) of section 25-t of the general
city law, as amended by section 4 of subpart E of part GG of chapter 59
of the laws of 2014, is amended to read as follows:
(2) No eligible energy user, qualified eligible energy user, on-site
cogenerator, or clean on-site cogenerator shall receive a rebate pursu-
ant to this article until it has obtained a certification from the
appropriate city agency in accordance with a local law enacted pursuant
to this section. No such certification for a qualified eligible energy
user shall be issued on or after November first, two thousand. No such
certification of any other eligible energy user, on-site cogenerator, or
clean on-site cogenerator shall be issued on or after July first, two
thousand [fifteen] NINETEEN.
S 5. Paragraph 1 of subdivision (a) of section 25-aa of the general
city law, as amended by section 5 of subpart E of part GG of chapter 59
of the laws of 2014, is amended to read as follows:
(1) is eligible to obtain benefits under title two-D or two-F of arti-
cle four of the real property tax law, or would be eligible to receive
benefits under such title except that such property is exempt from real
property taxation and the requirements of paragraph (b) of subdivision
seven of section four hundred eighty-nine-dddd of such title two-D, or
the requirements of subparagraph (ii) of paragraph (b) of subdivision
A. 6009 203
five of section four hundred eighty-nine-cccccc of such title two-F,
whichever is applicable, of the real property tax law have not been
satisfied, provided that application for such benefits was made after
the thirtieth day of June, nineteen hundred ninety-five and before the
first day of July, two thousand [fifteen] NINETEEN, that construction or
renovation of such building or structure was described in such applica-
tion, that such building or structure has been substantially improved by
such construction or renovation, and (i) that the minimum required
expenditure as defined in such title has been made, or (ii) where there
is no applicable minimum required expenditure, the building was
constructed within such period or periods of time established by title
two-D or two-F, whichever is applicable, of article four of the real
property tax law for construction of a new building or structure; or
S 6. Paragraphs 2 and 3 of subdivision (a) of section 25-aa of the
general city law, as amended by section 6 of subpart E of part GG of
chapter 59 of the laws of 2014, are amended to read as follows:
(2) has obtained approval after the thirtieth day of June, nineteen
hundred ninety-five and before the first day of July, two thousand
[fifteen] NINETEEN, for financing by an industrial development agency
established pursuant to article eighteen-A of the general municipal law,
provided that such financing has been used in whole or in part to
substantially improve such building or structure by construction or
renovation, that expenditures have been made for improvements to such
real property in excess of twenty per centum of the value at which such
real property was assessed for tax purposes for the tax year in which
such improvements commenced, and that such expenditures have been made
within thirty-six months after the earlier of (i) the issuance by such
agency of bonds for such financing, or (ii) the conveyance of title to
such building or structure to such agency; or
(3) is owned by the city of New York or the New York state urban
development corporation, or a subsidiary corporation thereof, a lease
for which was approved in accordance with the applicable provisions of
the charter of such city or by the board of directors of such corpo-
ration, as the case may be, and such approval was obtained after the
thirtieth day of June, nineteen hundred ninety-five and before the first
day of July, two thousand [fifteen] NINETEEN, provided that expenditures
have been made for improvements to such real property in excess of twen-
ty per centum of the value at which such real property was assessed for
tax purposes for the tax year in which such improvements commenced, and
that such expenditures have been made within thirty-six months after the
effective date of such lease; or
S 7. Subdivision (f) of section 25-bb of the general city law, as
amended by section 7 of subpart E of part GG of chapter 59 of the laws
of 2014, is amended to read as follows:
(f) Application and certification. An owner or lessee of a building or
structure located in an eligible revitalization area, or an agent of
such owner or lessee, may apply to such department of small business
services for certification that such building or structure is an eligi-
ble building or targeted eligible building meeting the criteria of
subdivision (a) or (q) of section twenty-five-aa of this article.
Application for such certification must be filed after the thirtieth day
of June, nineteen hundred ninety-five and before a building permit is
issued for the construction or renovation required by such subdivisions
and before the first day of July, two thousand [fifteen] NINETEEN,
provided that no certification for a targeted eligible building shall be
issued after October thirty-first, two thousand. Such application shall
A. 6009 204
identify expenditures to be made that will affect eligibility under such
subdivision (a) or (q). Upon completion of such expenditures, an appli-
cant shall supplement such application to provide information (i) estab-
lishing that the criteria of such subdivision (a) or (q) have been met;
(ii) establishing a basis for determining the amount of special rebates,
including a basis for an allocation of the special rebate among eligible
revitalization area energy users purchasing or otherwise receiving ener-
gy services from an eligible redistributor of energy or a qualified
eligible redistributor of energy; and (iii) supporting an allocation of
charges for energy services between eligible charges and other charges.
Such department shall certify a building or structure as an eligible
building or targeted eligible building after receipt and review of such
information and upon a determination that such information establishes
that the building or structure qualifies as an eligible building or
targeted eligible building. Such department shall mail such certif-
ication or notice thereof to the applicant upon issuance. Such certif-
ication shall remain in effect provided the eligible redistributor of
energy or qualified eligible redistributor of energy reports any changes
that materially affect the amount of the special rebates to which it is
entitled or the amount of reduction required by subdivision (c) of this
section in an energy services bill of an eligible revitalization area
energy user and otherwise complies with the requirements of this arti-
cle. Such department shall notify the private utility or public utility
service required to make a special rebate to such redistributor of the
amount of such special rebate established at the time of certification
and any changes in such amount and any suspension or termination by such
department of certification under this subdivision. Such department may
require some or all of the information required as part of an applica-
tion or other report be provided by a licensed engineer.
S 8. Paragraph 1 of subdivision (i) of section 22-601 of the adminis-
trative code of the city of New York, as amended by section 8 of subpart
E of part GG of chapter 59 of the laws of 2014, is amended to read as
follows:
(1) Non-residential premises that are wholly contained in property
that is eligible to obtain benefits under part four or part five of
subchapter two of chapter two of title eleven of this code, or would be
eligible to receive benefits under such chapter except that such proper-
ty is exempt from real property taxation and the requirements of para-
graph two of subdivision g of section 11-259 of this code, or the
requirements of subparagraph (b) of paragraph two of subdivision e of
section 11-270 of this code, whichever is applicable, have not been
satisfied, provided that application for such benefits was made after
May third, nineteen hundred eighty-five and prior to July first, two
thousand [fifteen] NINETEEN, that construction or renovation of such
premises was described in such application, that such premises have been
substantially improved by such construction or renovation so described,
that the minimum required expenditure as defined in such part four or
part five, whichever is applicable, has been made, and that such real
property is located in an eligible area; or
S 9. Paragraph 3 of subdivision (i) of section 22-601 of the adminis-
trative code of the city of New York, as amended by section 9 of subpart
E of part GG of chapter 59 of the laws of 2014, is amended to read as
follows:
(3) non-residential premises that are wholly contained in real proper-
ty that has obtained approval after October thirty-first, two thousand
and prior to July first, two thousand [fifteen] NINETEEN for financing
A. 6009 205
by an industrial development agency established pursuant to article
eighteen-A of the general municipal law, provided that such financing
has been used in whole or in part to substantially improve such premises
(by construction or renovation), and that expenditures have been made
for improvements to such real property in excess of ten per centum of
the value at which such real property was assessed for tax purposes for
the tax year in which such improvements commenced, that such expendi-
tures have been made within thirty-six months after the earlier of (i)
the issuance by such agency of bonds for such financing, or (ii) the
conveyance of title to such property to such agency, and that such real
property is located in an eligible area; or
S 10. Paragraph 5 of subdivision (i) of section 22-601 of the adminis-
trative code of the city of New York, as amended by section 10 of
subpart E of part GG of chapter 59 of the laws of 2014, is amended to
read as follows:
(5) non-residential premises that are wholly contained in real proper-
ty owned by such city or the New York state urban development corpo-
ration, or a subsidiary thereof, a lease for which was approved in
accordance with the applicable provisions of the charter of such city or
by the board of directors of such corporation, and such approval was
obtained after October thirty-first, two thousand and prior to July
first, two thousand [fifteen] NINETEEN, provided, however, that such
premises were constructed or renovated subsequent to such approval, that
expenditures have been made subsequent to such approval for improvements
to such real property (by construction or renovation) in excess of ten
per centum of the value at which such real property was assessed for tax
purposes for the tax year in which such improvements commenced, that
such expenditures have been made within thirty-six months after the
effective date of such lease, and that such real property is located in
an eligible area; or
S 11. Paragraph 1 of subdivision (c) of section 22-602 of the adminis-
trative code of the city of New York, as amended by section 11 of
subpart E of part GG of chapter 59 of the laws of 2014, is amended to
read as follows:
(1) No eligible energy user, qualified eligible energy user, on-site
cogenerator, clean on-site cogenerator or special eligible energy user
shall receive a rebate pursuant to this chapter until it has obtained a
certification as an eligible energy user, qualified eligible energy
user, on-site cogenerator, clean on-site cogenerator or special eligible
energy user, respectively, from the commissioner of small business
services. No such certification for a qualified eligible energy user
shall be issued on or after July first, two thousand three. No such
certification of any other eligible energy user, on-site cogenerator or
clean on-site cogenerator shall be issued on or after July first, two
thousand [fifteen] NINETEEN. The commissioner of small business
services, after notice and hearing, may revoke a certification issued
pursuant to this subdivision where it is found that eligibility criteria
have not been met or that compliance with conditions for continued
eligibility has not been maintained. The corporation counsel may main-
tain a civil action to recover an amount equal to any benefits improper-
ly obtained.
S 12. This act shall take effect immediately and shall be deemed to
have been in full force and effect after June 30, 2015.
SUBPART D
A. 6009 206
Section 1. Subparagraph (b-2) of paragraph 2 of subdivision i of
section 11-704 of the administrative code of the city of New York, as
amended by section 1 of subpart F of part GG of chapter 59 of the laws
of 2014, is amended to read as follows:
(b-2) The amount of the special reduction allowed by this subdivision
with respect to a lease other than a sublease commencing between July
first, two thousand five and June thirtieth, two thousand [fifteen]
NINETEEN with an initial or renewal lease term of at least five years
shall be determined as follows:
(i) For the base year the amount of such special reduction shall be
equal to the base rent for the base year.
(ii) For the first, second, third and fourth twelve-month periods
following the base year the amount of such special reduction shall be
equal to the lesser of (A) the base rent for each such twelve-month
period or (B) the base rent for the base year.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect after June 30, 2015.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through D of this act shall
be as specifically set forth in the last section of such Subparts.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through AAA of this act shall
be as specifically set forth in the last section of such Parts.
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