S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5215

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2015
                               ___________

Introduced  by M. of A. KOLB, OAKS, WALTER, MONTESANO, PALMESANO, LOPEZ,
  RAIA, HAWLEY, BARCLAY, KEARNS, TENNEY, FINCH -- Multi-Sponsored by  --
  M.  of A. CERETTO, McLAUGHLIN -- read once and referred to the Commit-
  tee on Ways and Means

AN ACT to amend the tax law, in relation to  expanding  eligibility  for
  the  investment tax credit to all businesses in the state (Part A); to
  amend the tax law, in relation to a qualified emerging technology  tax
  credit  (Part  B); and to amend the general municipal law, in relation
  to certified startup business enterprises; and to amend the  tax  law,
  in relation to the angel tax credit (Part C)

  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 components of legislation relating
to "Invest-NY".  Each component is wholly contained within a Part  iden-
tified  as  Parts  A  through  C. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing 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 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

  Section  1.    Subparagraph  (i)  of paragraph (b) of subdivision 1 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:
  (i)  A  credit shall be allowed under this subdivision with respect to
tangible personal property and other tangible property, including build-
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

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08887-01-5

A. 5215                             2

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 used in the ordinary course of the taxpay-
er's business  as  an  exchange  registered  as  a  national  securities
exchange  within the meaning of sections 3(a)(1) and 6(a) of the Securi-
ties 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 or as an enti-
ty  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)  principally  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, light-
ing and grip equipment, multi-line phone service, broadband  information
technology  access, industrial scale electrical capacity, food services,
security services, and heating, ventilation and air conditioning, OR (H)
PRINCIPALLY USED IN THE ORDINARY COURSE OF ANY TRADE OR BUSINESS OF  THE
TAXPAYER  NOT  OTHERWISE  DESCRIBED  IN  CLAUSES (A) THROUGH (G) OF THIS
SUBPARAGRAPH. Provided, however, a taxpayer shall  not  be  allowed  the
credit  provided by clauses (D), (E) and (F) of this subparagraph unless
(i) eighty percent or more of the employees performing  the  administra-
tive  and  support functions 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 func-
tions 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 employees that perform these functions and are located
in  this  state  during  the thirty-six months immediately preceding the
year for which the credit 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 taxpay-
er in nineteen hundred ninety-eight, the last day of its  first  taxable

A. 5215                             3

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  nineteen hundred ninety-eight, then the taxpayer is
not  required  to  satisfy the employment test provided in the preceding
sentence of this subparagraph for its first taxable year.  For  purposes
of  clause  (iii) of this subparagraph the employment test will be based
on the number of employees 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 proper-
ty  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.
  S  2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
of the tax law, as amended by chapter  637  of  the  laws  of  2008,  is
amended to read as follows:
  (A)  A  credit  shall be allowed under this subsection with respect to
tangible personal property and other tangible property, including build-
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 (i) 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, (ii) indus-
trial waste treatment facilities or air  pollution  control  facilities,
used in the taxpayer's trade or business, (iii) research and development
property, (iv) 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,  enter-
ing  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 475(e) of the Internal Revenue Code, (v)  principally
used  in  the  ordinary  course  of  the taxpayer's trade or business of
providing investment advisory services for a regulated investment compa-
ny as defined in section eight hundred fifty-one of the Internal Revenue
Code, or lending, loan  arrangement  or  loan  origination  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,
[or]  (vi)  principally  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 electrical capacity,  food  services,  security
services,  and heating, ventilation and air conditioning, OR (VII) PRIN-
CIPALLY USED IN THE ORDINARY COURSE OF ANY  TRADE  OR  BUSINESS  OF  THE
TAXPAYER  NOT  OTHERWISE  DESCRIBED  IN CLAUSES (I) THROUGH (VI) OF THIS

A. 5215                             4

SUBPARAGRAPH.  For purposes of clauses (iv) and  (v)  of  this  subpara-
graph,  property  purchased  by  a  taxpayer affiliated with a regulated
broker, dealer, or registered investment adviser  is  allowed  a  credit
under  this  subsection  if the property is used by its affiliated regu-
lated broker, dealer or registered investment adviser in accordance with
this subsection. For purposes of determining if the property is  princi-
pally  used  in  qualifying  uses, the uses by the taxpayer described in
clauses (iv) and (v) of this subparagraph may be  aggregated.  In  addi-
tion,  the uses by the taxpayer, its affiliated regulated broker, dealer
and registered investment adviser under either or both of those  clauses
may  be  aggregated.  Provided, however, a taxpayer shall not be allowed
the credit provided by clauses (iv) and (v) of this subparagraph  unless
(I)  eighty  percent or more of the employees performing the administra-
tive and support functions 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  func-
tions 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 employees that perform these functions and are located
in this state during the thirty-six  months  immediately  preceding  the
year  for  which the credit 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 taxpay-
er  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 nineteen hundred ninety-eight, then  the  taxpayer  is
not  required  to  satisfy the employment test provided in the preceding
sentence of this subparagraph  for  its  first  taxable  year.  For  the
purposes  of  clause (III) of this subparagraph the employment test will
be based on the number of employees 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
subsection, the term "goods" shall not include electricity.
  S 3. This act shall take effect immediately and apply to taxable years
ending on or after January 1, 2015.

                                 PART B

  Section  1.  Subparagraph  (vii)  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:
  (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

A. 5215                             5

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,  ZERO  PERCENT  FOR  TAXABLE
YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN. 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 2. This act shall take effect immediately.

                                 PART C

  Section 1. The general municipal  law  is  amended  by  adding  a  new
section 959-c to read as follows:
  S 959-C. CERTIFIED STARTUP BUSINESS ENTERPRISE. (A) CERTIFICATION. (I)
THE COMMISSIONER SHALL APPROVE APPLICATIONS FOR QUALIFICATION OF A BUSI-
NESS  ENTERPRISE AS A CERTIFIED STARTUP BUSINESS ENTERPRISE. AS A CONDI-
TION FOR APPROVAL OF SUCH APPLICATION, THE COMMISSIONER IS AUTHORIZED TO
SPECIFY CERTAIN REQUIREMENTS TO BE SATISFIED AS A CONDITION FOR APPROVAL
OF A BUSINESS ENTERPRISE AS A CERTIFIED STARTUP BUSINESS  ENTERPRISE  AS
THE  COMMISSIONER DEEMS NECESSARY TO ENSURE THE QUALIFYING ANGEL INVEST-
MENT WILL MAKE A SUBSTANTIAL CONTRIBUTION TO THE ECONOMIC DEVELOPMENT OF
THIS STATE, INCLUDING THE USE OF  A  SYSTEM  OF  EVALUATION  OF  VARIOUS
APPLICANT BUSINESS ENTERPRISES IN A COMPETITIVE FASHION.
  (II)  WITH  RESPECT  TO AN APPROVED APPLICATION FOR QUALIFICATION OF A
BUSINESS ENTERPRISE AS A  CERTIFIED  STARTUP  BUSINESS  ENTERPRISE,  THE
COMMISSIONER  SHALL  ISSUE  TO SUCH BUSINESS ENTERPRISE A CERTIFICATE OF
QUALIFICATION AS A CERTIFIED STARTUP BUSINESS ENTERPRISE  SETTING  FORTH
THE  EFFECTIVE  DATE  OF  THE CERTIFICATION AND THE AMOUNT OF QUALIFYING
ANGEL INVESTMENT AWARDED TO SUCH BUSINESS ENTERPRISE, WHICH AMOUNT SHALL
BE NO LESS THAN ONE HUNDRED  THOUSAND  DOLLARS  AND  NO  MORE  THAN  TWO
MILLION DOLLARS.
  (III)  FOR  THE  PERIOD  JULY FIRST, TWO THOUSAND FIFTEEN THROUGH JUNE
THIRTIETH, TWO THOUSAND SIXTEEN, THE  COMMISSIONER  MAY  CERTIFY  UP  TO
TWENTY  MILLION  DOLLARS  IN QUALIFYING ANGEL INVESTMENT. FOR THE PERIOD
JULY FIRST, TWO THOUSAND SIXTEEN THROUGH JUNE  THIRTIETH,  TWO  THOUSAND
SEVENTEEN,  THE COMMISSIONER MAY CERTIFY UP TO TWENTY MILLION DOLLARS IN
QUALIFYING ANGEL INVESTMENT. FOR THE PERIOD  JULY  FIRST,  TWO  THOUSAND
SEVENTEEN THROUGH JUNE THIRTIETH, TWO THOUSAND EIGHTEEN, THE COMMISSION-
ER  MAY CERTIFY UP TO TWENTY MILLION DOLLARS IN QUALIFYING ANGEL INVEST-
MENT.
  (B) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (I)  "CERTIFIED  STARTUP  BUSINESS  ENTERPRISE"  SHALL MEAN A BUSINESS
ENTERPRISE LOCATED IN NEW YORK STATE:
  (1) WITH LESS THAN FIVE MILLION DOLLARS IN ANNUAL REVENUES;

A. 5215                             6

  (2) WHOSE PRIMARY ACTIVITY CONSISTS  OF  A  QUALIFYING  TECHNOLOGY  OR
INNOVATION ACTIVITY; AND
  (3) THAT HAS BEEN CERTIFIED AS A CERTIFIED STARTUP BUSINESS ENTERPRISE
BY THE COMMISSIONER.
  (II) "QUALIFYING TECHNOLOGY OR INNOVATION ACTIVITY" SHALL MEAN:
  (1)  BIOTECHNOLOGIES, WHICH SHALL BE DEFINED AS 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, MECHAN-
ICAL,  AND  COMPUTATIONAL APPLICATIONS AND SERVICES CONNECTED WITH THESE
IMPROVEMENTS;
  (2) INFORMATION AND COMMUNICATION TECHNOLOGIES, EQUIPMENT AND  SYSTEMS
THAT  INVOLVE  ADVANCED  COMPUTER  SOFTWARE  AND HARDWARE, VISUALIZATION
TECHNOLOGIES, AND HUMAN INTERFACE TECHNOLOGIES;
  (3) ADVANCED MATERIALS AND PROCESSING TECHNOLOGIES  THAT  INVOLVE  THE
DEVELOPMENT,  MODIFICATION,  OR  IMPROVEMENT OF ONE OR MORE MATERIALS OR
METHODS TO PRODUCE DEVICES  AND  STRUCTURES  WITH  IMPROVED  PERFORMANCE
CHARACTERISTICS  OR SPECIAL FUNCTIONAL ATTRIBUTES, OR TO ACTIVATE, SPEED
UP, OR OTHERWISE ALTER CHEMICAL, BIOCHEMICAL, OR MEDICAL PROCESSES;
  (4) ELECTRONIC AND PHOTONIC DEVICES AND COMPONENTS FOR USE IN  PRODUC-
ING  ELECTRONIC,  OPTOELECTRONIC,  MECHANICAL  EQUIPMENT AND PRODUCTS OF
ELECTRONIC DISTRIBUTION WITH INTERACTIVE MEDIA CONTENT;
  (5) ENERGY EFFICIENCY, RENEWABLE ENERGY  AND  ENVIRONMENTAL  TECHNOLO-
GIES, PRODUCTS, DEVICES AND SERVICES;
  (6) SMALL SCALE SYSTEMS INTEGRATION AND PACKAGING; OR
  (7) MANUFACTURING;
  (III)  "QUALIFYING  ANGEL INVESTMENT" SHALL MEAN A CONTRIBUTION TO THE
CAPITAL OF A CERTIFIED STARTUP BUSINESS ENTERPRISE, PROVIDED  THAT  SUCH
CONTRIBUTION TO CAPITAL IS MADE WITHIN TWELVE MONTHS AFTER THE EFFECTIVE
DATE  OF THE CERTIFIED TECHNOLOGY VENTURE'S CERTIFICATE OF QUALIFICATION
AS A CERTIFIED TECHNOLOGY VENTURE AND SUCH CONTRIBUTION  IS  APPLIED  BY
THE  CERTIFIED  STARTUP  BUSINESS  ENTERPRISE  AGAINST ITS ALLOCATION OF
QUALIFYING ANGEL INVESTMENT. TOGETHER WITH ALL  OTHER  QUALIFYING  ANGEL
INVESTMENTS  MADE TO A SINGLE CERTIFIED STARTUP BUSINESS ENTERPRISE, THE
TOTAL QUALIFYING ANGEL INVESTMENT MAY NOT EXCEED  TWO  MILLION  DOLLARS.
NOTHING HEREIN SHALL PROHIBIT A PERSON MAKING A QUALIFYING ANGEL INVEST-
MENT  FROM  MAKING ADDITIONAL CONTRIBUTIONS TO THE CAPITAL OF THE CERTI-
FIED STARTUP BUSINESS ENTERPRISE OR MAKING LOANS TO OR OTHER INVESTMENTS
IN THE CERTIFIED STARTUP BUSINESS ENTERPRISE,  PROVIDED,  HOWEVER,  THAT
SUCH  OTHER CONTRIBUTIONS, LOANS AND INVESTMENTS SHALL NOT BE TREATED AS
QUALIFYING ANGEL INVESTMENTS.
  S 2. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 49 to read as follows:
  49.  ANGEL  TAX  CREDIT.  (A) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III) OF SUBDIVISION (B) OF SECTION NINE  HUNDRED  FIFTY-NINE-C  OF  THE
GENERAL  MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO FIFTY PERCENT
OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
  (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.   HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR

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REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) ANGEL TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER  THAT  HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III)  OF  SUBDIVISION  (B)  OF SECTION NINE HUNDRED FIFTY-NINE-C OF THE
GENERAL MUNICIPAL LAW, OR THAT IS A MEMBER OF  A  PARTNERSHIP  THAT  HAS
MADE  A  QUALIFYING ANGEL INVESTMENT, SHALL BE ALLOWED A CREDIT EQUAL TO
FIFTY PERCENT OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT  OR,  IN
THE  CASE OF A TAXPAYER WHO IS A MEMBER OF A PARTNERSHIP THAT HAS MADE A
QUALIFYING ANGEL INVESTMENT, A PORTION OF SUCH QUALIFYING ANGEL  INVEST-
MENT  EQUAL  TO THE PORTION OF ITEMS OF INCOME, GAIN, LOSS AND DEDUCTION
ASSOCIATED WITH THE QUALIFYING ANGEL INVESTMENT  PROPERLY  ALLOCABLE  TO
SUCH  TAXPAYER  UNDER  SECTION  704 OF THE INTERNAL REVENUE CODE FOR THE
TAXABLE YEAR.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
  S 4. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (dd) to read as follows:
  (DD)  ANGEL  TAX  CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT HAS
MADE A QUALIFYING ANGEL INVESTMENT, AS SUCH TERM IS DEFINED IN PARAGRAPH
(III) OF SUBDIVISION (B) OF SECTION NINE  HUNDRED  FIFTY-NINE-C  OF  THE
GENERAL  MUNICIPAL LAW, SHALL BE ALLOWED A CREDIT EQUAL TO FIFTY PERCENT
OF THE AMOUNT OF SUCH QUALIFYING ANGEL INVESTMENT.
  (2) 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 MINIMUM TAX FIXED BY  PARAGRAPH  FOUR  OF  SUBDIVISION  (A)  OF
SECTION  FIFTEEN  HUNDRED  TWO  OF  THIS  ARTICLE  OR BY SECTION FIFTEEN
HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE. HOWEVER, IF  THE
AMOUNT  OF  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, THEN  ANY  AMOUNT  OF  CREDIT  THUS  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  ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE
PROVISIONS OF SUBSECTION (C) OF SECTION  ONE  THOUSAND  EIGHTY-EIGHT  OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 5. This act shall take effect immediately and apply to taxable years
after January 1, 2015.
  S 2. Severability. If any clause, sentence, paragraph, section or part
of  this act shall be adjudged by any court of competent jurisdiction to
be invalid and after exhaustion of  all  further  judicial  review,  the
judgment  shall not affect, impair, or invalidate the remainder thereof,
but shall be confined in its operation to the  clause,  sentence,  para-
graph,  section or part of this act directly involved in the controversy
in which the judgment shall have been rendered.
  S 3. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through C of this act shall be
as specifically set forth in the last section of such Parts.