The New York State Senate

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

    S. 6409                                                  A. 9009

                      S E N A T E - A S S E M B L Y

                            January 14, 2016
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when printed to be committed to the Committee on Finance

IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
  article seven of the Constitution -- read once  and  referred  to  the
  Committee on Ways and Means

AN  ACT  to amend the real property tax law and the tax law, in relation
  to transitioning  the  school  tax  relief  (STAR)  exemption  into  a
  personal income tax credit, and to repeal subdivision 5 of section 520
  of  the  real property tax law relating thereto (Part A); to amend the
  real property tax law, in  relation  to  the  maximum  amount  of  tax
  savings  allowable  under the STAR program (Part B); to amend the real
  property tax law in relation to making the income verification program
  mandatory (Part C); to amend the real property tax law, in relation to
  allowing applications for exemptions to be  filed  after  the  taxable
  status  date  in  certain cases (Part D); to amend the tax law and the
  administrative code of the city of New York, in relation to establish-
  ing a new school tax reduction credit for residents of a city  with  a
  population  over  one million (Part E); to amend the real property tax
  law, in relation to  authorizing  the  commissioner  of  taxation  and
  finance to make direct payments of STAR tax savings to property owners
  in certain cases (Part F); to amend the tax law, in relation to making
  permanent,  provisions  relating to mandatory electronic filing of tax
  documents, improving sales tax compliance and  updating  tax  preparer
  penalties;  to amend chapter 61 of the laws of 2011, amending the real
  property tax law and other laws relating to establishing standards for
  electronic tax administration, in relation to the effectiveness there-
  of; and to repeal certain provisions of the tax law and  the  adminis-
  trative  code  of  the  city of New York relating thereto (Part G); to
  amend the public housing law, in  relation  to  extending  the  credit
  against  income  tax  for  persons or entities investing in low-income
  housing (Part H); to amend the tax law, in relation to  extending  the
  hire  a  veteran credit for an additional two years (Part I); to amend
  the tax law, in relation to  extending  the  empire  state  commercial
  production  tax  credit  (Part J); to amend chapter 604 of the laws of
  2011, amending the tax law relating to the credit  for  companies  who

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD12674-01-6

S. 6409                             2                            A. 9009

  provide  transportation  to  people  with disabilities, in relation to
  extending the expiration of such provision (Part K); to amend  part  I
  of  chapter  58  of the laws of 2006, amending the tax law relating to
  providing  an enhanced earned income tax credit, in relation to making
  the enhanced earned income tax credit permanent  (Part  L);  to  amend
  part N of chapter 61 of the laws of 2005 amending the tax law relating
  to  certain  transactions  and related information and relating to the
  voluntary compliance initiative, in relation to permanently  extending
  the  disclosure  and  penalty provisions for transactions that present
  the potential for tax avoidance (Part M); to amend  the  tax  law,  in
  relation  to  extending  the clean heating fuel credit for three years
  and updating the credit to reflect new minimum biodiesel fuel  thresh-
  olds  (Part N); to amend the economic development law and the tax law,
  in relation to extending the excelsior jobs  program  for  five  years
  (Part O); to amend the tax law and the administrative code of the City
  of  New  York  in  relation to making corrections to the corporate tax
  reform provisions (Part P); to amend the tax law and  the  administra-
  tive  code of the city of New York, in relation to the time for filing
  reports (Part Q); to amend the tax law, in relation  to  the  business
  income  base rate and expanding the small business subtraction modifi-
  cation (Part R); to amend the  education  law  and  the  tax  law,  in
  relation  to enacting the "parental choice in education act" (Part S);
  to amend the tax law, in relation to establishing a tax credit for New
  York state thruway tolls (Part T); to amend chapter 109 of the laws of
  2006 amending the  tax  law  and  other  laws  relating  to  providing
  exemptions,  reimbursements and credits from various taxes for certain
  alternative fuels, in relation to extending the alternative fuels  tax
  exemptions  for five years (Part U); to amend the tax law, in relation
  to exempting from alcoholic beverage tax certain  alcoholic  beverages
  furnished  at  no charge by certain licensees to customers or prospec-
  tive customers at a tasting held  in  accordance  with  the  alcoholic
  beverage  control  law,  and  to  expand the beer production credit to
  include wine, liquor and cider (Part V); to  amend  the  tax  law,  in
  relation  to authorizing jeopardy assessments on cigarette and tobacco
  product taxes assessed under article 20 thereof (Part W); to amend the
  tax law and the administrative code  of  the  city  of  New  York,  in
  relation  to  allowing  room  remarketers to purchase occupancies from
  hotel operators exempt from  sales  tax  under  certain  circumstances
  (Part  X);  to  amend  the tax law, in relation to charitable contrib-
  utions and charitable activities being considered in determining domi-
  cile for estate tax purposes (Part Y); to amend the state finance law,
  in relation to creating the aviation purpose account and ensuring that
  the funds deposited in the  aviation  purpose  account  are  used  for
  airport  improvement  projects;  to  amend the tax law, in relation to
  provide for the distribution of revenues under section 301-e  of  such
  law;  to  exempt sales of fuel sold for use in commercial aircraft and
  general aviation aircraft from the prepayment  of  sales  tax  imposed
  pursuant to the authority of section 1102(a) (1) (ii) of such law; and
  to  exclude  sales  of  fuel  sold  for use in commercial aircraft and
  general aviation aircraft from the operation of sales  and  use  taxes
  imposed pursuant to the authority of section 1210(a) of such law (Part
  Z);  to  amend  the  racing, pari-mutuel wagering and breeding law, in
  relation to equine lab testing  provider  restrictions  removal  (Part
  AA);  to  amend  the racing, pari-mutuel wagering and breeding law and
  the tax law, in relation to reducing purse amounts paid from  the  VLT
  program  and  to  increasing racing regulatory fee (Part BB); to amend

S. 6409                             3                            A. 9009

  the racing, pari-mutuel wagering and breeding law, in relation to  the
  timing  of harness track reimbursements and other technical amendments
  (Part CC); to amend the  tax  law,  in  relation  to  the  payment  of
  vendors'  fees  (Part DD); to amend the tax law, in relation to vendor
  fees at vendor tracks (Part EE);  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,  simulcasting 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 breed-
  ing law and other laws relating to simulcasting; to amend chapter  346
  of  the  laws  of  1990  amending the racing, pari-mutuel wagering and
  breeding  law and other laws relating to simulcasting and the  imposi-
  tion  of  certain  taxes,  in  relation to extending certain provision
  thereof; and to amend the racing, pari-mutuel  and  breeding  law,  in
  relation  to  extending certain provisions thereof (Part FF); to amend
  the tax law, in relation to capital awards to vendor tracks (Part GG);
  and to amend the state finance law, in relation  to  allocations  from
  the  commercial  gaming  revenue  fund;  and  to amend the tax law, in
  relation to commissions payable to certain vendor racetracks (Part HH)

  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 2016-2017
state fiscal year. Each component is  wholly  contained  within  a  Part
identified as Parts A through HH. 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. Paragraph (a) of subdivision 6 of section 425 of  the  real
property  tax  law,  as amended by chapter 6 of the laws of 2010, and as
further amended by subdivision (b) of section 1 of part W of chapter  56
of the laws of 2010, is amended to read as follows:
  (a) Generally. All owners of the property who primarily reside thereon
AND WHO ARE NOT SUBJECT TO THE PROVISIONS OF SUBDIVISION SIXTEEN OF THIS
SECTION must jointly file an application for exemption with the assessor
on  or  before the appropriate taxable status date. Such application may
be filed by mail if it is  enclosed  in  a  postpaid  envelope  properly
addressed  to  the  appropriate  assessor, deposited in a post office or
official depository under the exclusive care of the United States postal
service, and postmarked by the United States postal service on or before
the applicable taxable status date. Each such application shall be  made
on a form prescribed by the commissioner, which shall require the appli-
cant  or  applicants  to  agree  to notify the assessor if their primary
residence changes while their property is receiving the  exemption.  The
assessor  may  request  that  proof  of  residency be submitted with the

S. 6409                             4                            A. 9009

application. If the applicant requests a receipt from  the  assessor  as
proof  of submission of the application, the assessor shall provide such
receipt. If such request is made by other  than  personal  request,  the
applicant  shall  provide  the  assessor  with a self-addressed postpaid
envelope in which to mail the receipt.
  S 2. Section 425 of the real property tax law is amended by  adding  a
new subdivision 16 to read as follows:
  16.  TRANSITION  TO  PERSONAL  INCOME  TAX  CREDIT. (A) BEGINNING WITH
ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND
SIXTEEN--TWO THOUSAND SEVENTEEN  SCHOOL  YEAR,  NO  APPLICATION  FOR  AN
EXEMPTION  UNDER  THIS  SECTION MAY BE FILED OR APPROVED UNLESS AT LEAST
ONE OF THE APPLICANTS HELD TITLE TO THE PROPERTY ON THE  TAXABLE  STATUS
DATE  OF THE ASSESSMENT ROLL THAT WAS USED TO LEVY SCHOOL DISTRICT TAXES
FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR  AND  THE
PROPERTY  WAS  GRANTED  AN  EXEMPTION  PURSUANT  TO THIS SECTION ON THAT
ASSESSMENT ROLL.  IN THE EVENT THAT AN APPLICATION IS SUBMITTED  TO  THE
ASSESSOR  THAT  CANNOT BE APPROVED DUE TO THIS RESTRICTION, THE ASSESSOR
SHALL NOTIFY THE APPLICANT THAT HE OR SHE IS REQUIRED BY LAW TO DENY THE
APPLICATION, BUT THAT, IN LIEU OF A STAR EXEMPTION,  THE  APPLICANT  MAY
CLAIM  THE  PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW IF ELIGIBLE, AND THAT THE  APPLI-
CANT  MAY  CONTACT  THE  DEPARTMENT  OF TAXATION AND FINANCE FOR FURTHER
INFORMATION.  THE COMMISSIONER SHALL PROVIDE A  FORM  FOR  ASSESSORS  TO
USE,  AT  THEIR OPTION, WHEN MAKING THIS NOTIFICATION. NO STAR EXEMPTION
MAY BE GRANTED ON THE BASIS OF AN APPLICATION THAT IS NOT APPROVABLE DUE
TO THIS RESTRICTION.
  (B) IF THE OWNERS OF A PARCEL THAT IS  RECEIVING  THE  STAR  EXEMPTION
AUTHORIZED  BY THIS SECTION WANT TO CLAIM THE PERSONAL INCOME TAX CREDIT
AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW
IN LIEU OF SUCH EXEMPTION, THEY ALL MUST RENOUNCE THAT EXEMPTION IN  THE
MANNER  PROVIDED BY SECTION FOUR HUNDRED NINETY-SIX OF THIS CHAPTER, AND
MUST PAY ANY REQUIRED TAXES, INTEREST AND PENALTIES, ON OR BEFORE DECEM-
BER THIRTY-FIRST OF THE TAXABLE YEAR FOR WHICH THEY WANT  TO  CLAIM  THE
CREDIT. ANY SUCH RENUNCIATION SHALL BE IRREVOCABLE.
  (C) THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO ALL APPLICATIONS
FOR  STAR EXEMPTIONS BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL
DISTRICT TAXES FOR THE  TWO  THOUSAND  SIXTEEN--TWO  THOUSAND  SEVENTEEN
SCHOOL  YEAR,  INCLUDING  THOSE SUBMITTED PRIOR TO THE EFFECTIVE DATE OF
THIS SUBDIVISION. IF ANY APPLICATION WAS APPROVED PRIOR TO THE EFFECTIVE
DATE OF THIS SUBDIVISION THAT IS NOT APPROVABLE HEREUNDER, SUCH APPROVAL
SHALL BE DEEMED VOID, AND THE ASSESSOR SHALL PROVIDE THE APPLICANT  WITH
THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION.
  S  3.  Subdivision  2  of section 496 of the real property tax law, as
added by section 3 of part N of chapter 58  of  the  laws  of  2011,  is
amended to read as follows:
  2.  An  application  to  renounce an exemption shall be made on a form
prescribed by the commissioner and shall be filed with the county direc-
tor of real property tax services no later than ten years after the levy
of taxes upon the assessment  roll  on  which  the  renounced  exemption
appears.  The  county  director,  after  consulting with the assessor as
appropriate, shall compute the total  amount  owed  on  account  of  the
renounced exemption as follows:
  (a) For each assessment roll on which the renounced exemption appears,
the assessed value that was exempted shall be multiplied by the tax rate
or  rates that were applied to that assessment roll. Interest shall then
be added to each such product at the rate  prescribed  by  section  nine

S. 6409                             5                            A. 9009

hundred twenty-four-a of this chapter or such other law as may be appli-
cable  for  each  month  or portion thereon since the levy of taxes upon
such assessment roll.
  (b) The sum of the calculations made pursuant to paragraph (a) of this
subdivision  with  respect  to  all  of the assessment rolls in question
shall be determined.
  (c) A processing fee of five hundred dollars shall be added to the sum
determined pursuant to paragraph (b) of  this  subdivision,  UNLESS  THE
PROVISIONS OF PARAGRAPH (D) OF THIS SUBDIVISION ARE APPLICABLE.
  (D) IF THE APPLICANT IS RENOUNCING A STAR EXEMPTION IN ORDER TO QUALI-
FY  FOR THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW,  AND  NO  OTHER  EXEMPTIONS  ARE
BEING  RENOUNCED  ON  THE  SAME  APPLICATION, NO PROCESSING FEE SHALL BE
APPLICABLE.
  S 4. Subdivision 3 of section 520 of the real  property  tax  law,  as
added by chapter 635 of the laws of 1978, is amended to read as follows:
  3. For purposes of any fiscal year or years during which title to such
property  is  transferred,  such  property  shall be deemed to have been
omitted and the assessed value thereof shall be entered on  the  assess-
ment  roll  to  be  used  for the next tax levy by or for each municipal
corporation in which such property is located  in  the  same  manner  as
provided  by title three of article five of this chapter with respect to
a parcel omitted from the assessment roll of the previous  year.  A  pro
rata  tax  shall  be  extended  against  the  property for the unexpired
portion of each fiscal year.  Such real property shall be taxed  at  the
tax  rate  or  tax  rates  for the fiscal year during which the transfer
occurred.  The amount of tax or taxes levied pursuant to  this  subdivi-
sion  shall  be deducted from the aggregate amount of taxes to be levied
for the fiscal year immediately succeeding the fiscal year during  which
the  transfer  occurred;  PROVIDED,  HOWEVER, THAT WHERE THE PROPERTY IS
RECEIVING A SCHOOL TAX RELIEF (STAR)  EXEMPTION  AUTHORIZED  BY  SECTION
FOUR  HUNDRED  TWENTY-FIVE  OF  THIS  CHAPTER, THE PORTION OF THE TAX OR
TAXES LEVIED THAT EQUALS THE RECOVERED STAR TAX SAVINGS SHALL BE APPLIED
TO REDUCE THE AMOUNT OF AID PAYABLE TO THE SCHOOL DISTRICT UNDER  SUBDI-
VISION THREE OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER.
  S  5.  Subdivision  5  of  section 520 of the real property tax law is
REPEALED.
  S 6. Section 606 of the tax law is amended by adding a new  subsection
(eee) to read as follows:
  (EEE)  SCHOOL  TAX RELIEF (STAR) CREDIT. (1) DEFINITIONS. FOR PURPOSES
OF THIS SUBSECTION:
  (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE, WHO
MAINTAINED HIS OR HER PRIMARY RESIDENCE IN THIS STATE ON DECEMBER  THIR-
TY-FIRST  OF THE TAXABLE YEAR, WHO WAS AN OWNER OF THAT PROPERTY ON THAT
DATE, WHO CANNOT RECEIVE THE STAR  EXEMPTION  ON  THAT  PROPERTY  EITHER
BECAUSE  (I)  HE  OR SHE IS PRECLUDED FROM FILING AN APPLICATION FOR THE
STAR EXEMPTION ON THAT PROPERTY PURSUANT TO PARAGRAPH (A) OF SUBDIVISION
SIXTEEN OF SECTION FOUR HUNDRED TWENTY-FIVE OF  THE  REAL  PROPERTY  TAX
LAW,  OR  BECAUSE  (II)  HE  OR SHE HAS IRREVOCABLY RENOUNCED HIS OR HER
CLAIM TO SUCH EXEMPTION IN CONJUNCTION WITH ALL OTHER OWNERS PURSUANT TO
PARAGRAPH (B) OF SUCH SUBDIVISION, AND WHO IS  REQUIRED  OR  CHOOSES  TO
FILE A RETURN UNDER THIS ARTICLE.
  (B)  "AFFILIATED  INCOME" SHALL MEAN THE COMBINED INCOME OF ALL OF THE
OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON AS OF DECEMBER  THIR-
TY-FIRST OF THE TAXABLE YEAR, AND OF ANY OWNERS' SPOUSES RESIDING PRIMA-
RILY THEREON AS OF SUCH DATE; PROVIDED THAT THE INCOME TO BE SO COMBINED

S. 6409                             6                            A. 9009

SHALL  BE  THE  "ADJUSTED GROSS INCOME" FOR THE TAXABLE YEAR AS REPORTED
FOR FEDERAL INCOME TAX PURPOSES, OR THAT WOULD BE REPORTED  AS  ADJUSTED
GROSS  INCOME  IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
REDUCED  BY  DISTRIBUTIONS,  TO  THE EXTENT INCLUDED IN FEDERAL ADJUSTED
GROSS INCOME, RECEIVED FROM AN  INDIVIDUAL  RETIREMENT  ACCOUNT  AND  AN
INDIVIDUAL RETIREMENT ANNUITY.
  (C)  "ASSOCIATED  FISCAL  YEAR"  MEANS THE SCHOOL DISTRICT FISCAL YEAR
THAT BEGAN ON JULY FIRST OF THE TAXABLE YEAR OR, IN THE CASE OF  A  CITY
SCHOOL  DISTRICT  THAT  IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION
LAW, THE CITY FISCAL YEAR THAT BEGAN ON JULY FIRST OF THE TAXABLE YEAR.
  (D) "OWNER" MEANS:
  (I) A PERSON WHO OWNS A PARCEL IN FEE SIMPLE ABSOLUTE OR AS  A  TENANT
IN COMMON, A JOINT TENANT OR A TENANT BY THE ENTIRETY,
  (II) AN OWNER OF A PRESENT INTEREST IN A PARCEL UNDER A LIFE ESTATE,
  (III) A VENDEE IN POSSESSION UNDER AN INSTALLMENT CONTRACT OF SALE,
  (IV) A BENEFICIAL OWNER UNDER A TRUST,
  (V)  A  TENANT-STOCKHOLDER  OF A COOPERATIVE APARTMENT CORPORATION WHO
RESIDES IN A PORTION OF REAL PROPERTY OWNED BY SUCH  COOPERATIVE  APART-
MENT  CORPORATION,  TO  THE  EXTENT  REPRESENTED  BY HIS OR HER SHARE OR
SHARES OF STOCK IN SUCH  CORPORATION  AS  DETERMINED  BY  ITS  OR  THEIR
PROPORTIONAL  RELATIONSHIP  TO THE TOTAL OUTSTANDING STOCK OF THE CORPO-
RATION, INCLUDING THAT OWNED BY THE CORPORATION,
  (VI) A RESIDENT OF A FARM DWELLING THAT IS OWNED EITHER  BY  A  CORPO-
RATION  OF  WHICH  THE RESIDENT IS A SHAREHOLDER, A PARTNERSHIP OF WHICH
THE RESIDENT IS A PARTNER, OR BY A LIMITED LIABILITY  COMPANY  OF  WHICH
THE RESIDENT IS AN OWNER, OR
  (VII)  A  RESIDENT  OF A DWELLING, OTHER THAN A FARM DWELLING, THAT IS
OWNED BY A LIMITED PARTNERSHIP OF  WHICH  THE  RESIDENT  IS  A  PARTNER,
PROVIDED  THAT  THE LIMITED PARTNERSHIP THAT HOLDS TITLE TO THE PROPERTY
DOES NOT ENGAGE IN ANY COMMERCIAL ACTIVITY, THAT THE LIMITED PARTNERSHIP
WAS LAWFULLY CREATED TO HOLD TITLE SOLELY FOR ESTATE PLANNING AND  ASSET
PROTECTION  PURPOSES,  AND  THAT  THE  PARTNER OR PARTNERS WHO PRIMARILY
RESIDE THEREON PERSONALLY PAY ALL OF THE REAL PROPERTY TAXES  AND  OTHER
COSTS ASSOCIATED WITH THE PROPERTY'S OWNERSHIP.
  (E)  "QUALIFYING  TAXES"  MEANS  THE  SCHOOL  DISTRICT TAXES THAT WERE
LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE  ASSOCIATED  FISCAL
YEAR  THAT  WERE  ACTUALLY PAID BY THE TAXPAYER DURING THE TAXABLE YEAR;
OR, IN THE CASE OF A CITY SCHOOL DISTRICT THAT  IS  SUBJECT  TO  ARTICLE
FIFTY-TWO  OF  THE  EDUCATION LAW, THE COMBINED CITY AND SCHOOL DISTRICT
TAXES THAT WERE LEVIED UPON THE TAXPAYER'S  PRIMARY  RESIDENCE  FOR  THE
ASSOCIATED  FISCAL  YEAR  THAT WERE ACTUALLY PAID BY THE TAXPAYER DURING
THE TAXABLE YEAR. IN NO  CASE  SHALL  THE  TERM  "QUALIFYING  TAXES"  BE
CONSTRUED TO INCLUDE PENALTIES OR INTEREST.
  (F)  "STAR  EXEMPTION"  MEANS  THE  SCHOOL TAX RELIEF (STAR) EXEMPTION
AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY  TAX
LAW.
  (G)  "STAR  TAX SAVINGS" MEANS THE TAX SAVING ATTRIBUTABLE TO THE STAR
EXEMPTION WITHIN A PORTION OF A SCHOOL DISTRICT, AS  DETERMINED  BY  THE
COMMISSIONER  PURSUANT  TO  SUBDIVISION  TWO OF SECTION THIRTEEN HUNDRED
SIX-A OF THE REAL PROPERTY TAX LAW.
  (H) "STAR TAX SAVINGS FIGURE"  MEANS  THE  AVERAGE  OF  THE  STAR  TAX
SAVINGS  IN  THE VARIOUS PORTIONS OF A SCHOOL DISTRICT IN THE ASSOCIATED
FISCAL YEAR, AS DETERMINED BY THE COMMISSIONER.  TWO  STAR  TAX  SAVINGS
FIGURES  SHALL  BE DETERMINED FOR EACH SCHOOL DISTRICT, ONE  RELATING TO
THE BASIC STAR EXEMPTION, AND THE OTHER RELATING TO  THE  ENHANCED  STAR
EXEMPTION.

S. 6409                             7                            A. 9009

  (2) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CRED-
IT  AS PROVIDED IN PARAGRAPH THREE OR FOUR OF THIS SUBSECTION, WHICHEVER
IS APPLICABLE, AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY  THE
CREDITS  PERMITTED  BY  THIS ARTICLE, PROVIDED THAT THE REQUIREMENTS SET
FORTH  IN THE APPLICABLE SUBSECTION ARE SATISFIED. IF THE CREDIT EXCEEDS
THE TAX AS SO REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL
BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTER-
EST. 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 BASIC STAR CREDIT.  (A)  BEGINNING  WITH  TAXABLE
YEARS AFTER TWO THOUSAND FIFTEEN, A BASIC STAR CREDIT SHALL BE AVAILABLE
TO  A  QUALIFIED  TAXPAYER  IF  THE AFFILIATED INCOME OF THE PARCEL THAT
SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE IS LESS THAN OR EQUAL TO FIVE
HUNDRED THOUSAND DOLLARS.
  (B) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF  THIS  PARAGRAPH,
SUCH BASIC STAR CREDIT SHALL BE THE LESSER OF:
  (I) THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR
  (II) THE TAXPAYER'S QUALIFYING TAXES.
  (C)  IF  THE  QUALIFYING TAXES PAID BY THE TAXPAYER CONSTITUTED ONLY A
PORTION OF THE TOTAL SCHOOL DISTRICT TAXES THAT  WERE  LEVIED  UPON  THE
TAXPAYER'S  PRIMARY  RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR, IN THE
CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE  FIFTY-TWO  OF
THE  EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTI-
TUTED ONLY A PORTION OF THE TOTAL  COMBINED  CITY  AND  SCHOOL  DISTRICT
TAXES  THAT  WERE  LEVIED  UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE
ASSOCIATED FISCAL YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER  SHALL  BE
EQUAL  TO  THE  AMOUNT  DETERMINED  PURSUANT TO SUBPARAGRAPH (B) OF THIS
PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS.
  (4) DETERMINATION OF ENHANCED STAR CREDIT. (A) BEGINNING WITH  TAXABLE
YEARS  AFTER  TWO  THOUSAND  FIFTEEN,  AN  ENHANCED STAR CREDIT SHALL BE
AVAILABLE TO A QUALIFIED TAXPAYER WHERE BOTH OF THE FOLLOWING CONDITIONS
ARE SATISFIED:
  (I) ALL OF THE OWNERS OF THE PARCEL  THAT  SERVES  AS  THE  TAXPAYER'S
PRIMARY  RESIDENCE  ARE  AT LEAST SIXTY-FIVE YEARS OF AGE AS OF DECEMBER
THIRTY-FIRST OF THE TAXABLE YEAR OR, IN THE CASE OF PROPERTY OWNED BY  A
MARRIED  COUPLE  OR  BY SIBLINGS, AT LEAST ONE OF THE OWNERS IS AT LEAST
SIXTY-FIVE YEARS OF AGE AS OF THAT DATE. THE TERMS  "SIBLINGS"  AS  USED
HEREIN  SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION FOUR HUNDRED
SIXTY-SEVEN OF THE REAL PROPERTY TAX LAW. IN THE CASE OF PROPERTY  OWNED
BY A MARRIED COUPLE, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER, THE
CREDIT,  ONCE  ALLOWED,  SHALL NOT BE DISALLOWED BECAUSE OF THE DEATH OF
THE OLDER SPOUSE SO LONG AS THE SURVIVING SPOUSE IS AT  LEAST  SIXTY-TWO
YEARS OF AGE AS OF DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR.
  (II) THE AFFILIATED INCOME OF THE PARCEL THAT SERVES AS THE TAXPAYER'S
PRIMARY  RESIDENCE  IS LESS THAN OR EQUAL TO THE INCOME STANDARD FOR THE
TAXABLE YEAR ESTABLISHED  BY  THE  COMMISSIONER  FOR  THE  CORRESPONDING
"INCOME  TAX  YEAR"  PURSUANT TO CLAUSE (C) OF SUBPARAGRAPH (I) OF PARA-
GRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE
REAL PROPERTY TAX LAW FOR PURPOSES OF THE ENHANCED STAR EXEMPTION.
  (B) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF  THIS  PARAGRAPH,
SUCH CREDIT SHALL BE THE LESSER OF:
  (I) THE ENHANCED STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR
  (II) THE TAXPAYER'S QUALIFYING TAXES.

S. 6409                             8                            A. 9009

  (C)  IF  THE  QUALIFYING TAXES PAID BY THE TAXPAYER CONSTITUTED ONLY A
PORTION OF THE TOTAL SCHOOL DISTRICT TAXES THAT  WERE  LEVIED  UPON  THE
TAXPAYER'S  PRIMARY  RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR, IN THE
CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE  FIFTY-TWO  OF
THE  EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTI-
TUTED ONLY A PORTION OF THE TOTAL  COMBINED  CITY  AND  SCHOOL  DISTRICT
TAXES  THAT  WERE  LEVIED  UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE
ASSOCIATED FISCAL YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER  SHALL  BE
EQUAL  TO  THE  AMOUNT  DETERMINED  PURSUANT TO SUBPARAGRAPH (B) OF THIS
PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS.
  (5) DISQUALIFICATION. A TAXPAYER SHALL  NOT  QUALIFY  FOR  THE  CREDIT
AUTHORIZED  BY  THIS SUBSECTION IF THE PARCEL THAT SERVES AS THE TAXPAY-
ER'S PRIMARY RESIDENCE RECEIVED THE STAR  EXEMPTION  ON  THE  ASSESSMENT
ROLL  UPON  WHICH  SCHOOL  DISTRICT TAXES FOR THE ASSOCIATED FISCAL YEAR
WHERE LEVIED. PROVIDED, HOWEVER,  THAT  THE  TAXPAYER  MAY  REMOVE  THIS
DISQUALIFICATION  BY  RENOUNCING  THE  EXEMPTION AND MAKING ANY REQUIRED
PAYMENTS BY DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR,  AS  PROVIDED  BY
SUBDIVISION  SIXTEEN  OF  SECTION  FOUR  HUNDRED TWENTY-FIVE OF THE REAL
PROPERTY TAX LAW.
  (6) SPECIAL CASES. (A) IN THE CASE OF PROPERTY CONSISTING OF A COOPER-
ATIVE APARTMENT CORPORATION THAT IS DESCRIBED BY PARAGRAPH (K) OF SUBDI-
VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY  TAX
LAW,  THE  AMOUNT  OF THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE
APARTMENT SHALL BE EQUAL TO SIXTY PERCENT OF THE BASIC STAR TAX  SAVINGS
FIGURE  FOR  THE  SCHOOL DISTRICT, OR SIXTY PERCENT OF THE ENHANCED STAR
TAX SAVINGS FIGURE FOR THE SCHOOL  DISTRICT,  WHICHEVER  IS  APPLICABLE.
PROVIDED,  HOWEVER,  THAT  IN THE CASE OF A COOPERATIVE APARTMENT CORPO-
RATION THAT IS DESCRIBED BY SUBPARAGRAPH (IV) OF PARAGRAPH (K) OF SUBDI-
VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY  TAX
LAW,  THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE APARTMENT SHALL
BE EQUAL TO TWENTY PERCENT OF SUCH FIGURE.
  (B) IN THE CASE OF PROPERTY  CONSISTING  OF  A  MOBILE  HOME  THAT  IS
DESCRIBED  IN  PARAGRAPH  (1) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX  LAW,  THE  AMOUNT  OF  THE  CREDIT
ALLOWABLE WITH RESPECT TO SUCH MOBILE HOME SHALL BE EQUAL TO TWENTY-FIVE
PERCENT  OF   THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT,
OR TWENTY-FIVE PERCENT OF THE ENHANCED STAR TAX SAVINGS FIGURE  FOR  THE
SCHOOL DISTRICT, WHICHEVER IS APPLICABLE.
  (C)  IN THE CASE OF A PRIMARY RESIDENCE THAT IS LOCATED IN TWO OR MORE
SCHOOL DISTRICTS, THE APPLICABLE BASIC OR ENHANCED    STAR  TAX  SAVINGS
FIGURE SHALL BE DETERMINED AS FOLLOWS:
  (I)  DETERMINE  THE  SUM  OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE
LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE  ASSOCIATED  FISCAL
YEAR BY EACH OF THE SCHOOL DISTRICTS IN WHICH THE RESIDENCE IS LOCATED;
  (II)  FOR  EACH SUCH SCHOOL DISTRICT, DIVIDE THE TOTAL SCHOOL DISTRICT
TAXES THAT WERE LEVIED UPON THE TAXPAYER'S  PRIMARY  RESIDENCE  BY  THAT
SCHOOL  DISTRICT FOR THE ASSOCIATED FISCAL YEAR BY THE SUM DETERMINED IN
CLAUSE (I) OF THIS SUBPARAGRAPH. EXPRESS THE RESULT AS A PERCENTAGE WITH
TWO DECIMAL PLACES;
  (III) FOR EACH SUCH SCHOOL DISTRICT, MULTIPLY  THE  PERCENTAGE  DETER-
MINED  IN CLAUSE (II) OF THIS SUBPARAGRAPH BY THE BASIC OR ENHANCED STAR
TAX SAVINGS FIGURE, WHICHEVER IS APPLICABLE; AND
  (IV) ADD THE PRODUCTS DETERMINED IN CLAUSE (III) OF THIS SUBPARAGRAPH.
  (7) DISCLOSURE OF INCOMES. WHERE THE COMMISSIONER HAS DENIED A TAXPAY-
ER'S CLAIM FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION IN WHOLE  OR  IN
PART ON THE GROUNDS THAT THE AFFILIATED INCOME OF THE PARCEL IN QUESTION

S. 6409                             9                            A. 9009

EXCEEDS  THE APPLICABLE LIMIT, THE COMMISSIONER SHALL HAVE THE AUTHORITY
TO REVEAL TO THAT TAXPAYER THE NAMES AND INCOMES OF THE OTHER  TAXPAYERS
WHOSE  INCOMES  WERE  INCLUDED  IN  THE  COMPUTATION  OF SUCH AFFILIATED
INCOME.
  (8)  PROOF OF CLAIM. THE COMMISSIONER MAY REQUIRE A QUALIFIED TAXPAYER
TO FURNISH THE FOLLOWING INFORMATION IN SUPPORT OF HIS OR HER CLAIM  FOR
CREDIT  UNDER  THIS  SUBSECTION:  AFFILIATED  INCOME,  THE  TOTAL SCHOOL
DISTRICT TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR OR,
IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE  FIFTY-
TWO  OF  THE  EDUCATION LAW, THE TOTAL COMBINED CITY AND SCHOOL DISTRICT
TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR, THE  QUALI-
FYING  TAXES PAID BY THE TAXPAYER, THE NAMES AND TAXPAYER IDENTIFICATION
NUMBERS OF ALL OWNERS OF THE PROPERTY AND SPOUSES WHO  PRIMARILY  RESIDE
ON THE PROPERTY, THE PARCEL IDENTIFICATION NUMBER AND ALL OTHER INFORMA-
TION THAT MAY BE REQUIRED BY THE COMMISSIONER TO DETERMINE THE CREDIT.
  (9)  RETURNS. 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
PURSUANT  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
AVAILABLE SUCH FORMS AND INSTRUCTIONS FOR FILING SUCH RETURNS.
  (10) ADMINISTRATION. 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 THAT 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 (A) THAT IS CONTAINED IN ANY RETURN FILED UNDER
THIS ARTICLE BY A MEMBER OF HIS OR HER HOUSEHOLD FOR  THE  TAXABLE  YEAR
FOR  WHICH THE CREDIT IS CLAIMED, AND (B) THAT THE COMMISSIONER FINDS IS
RELEVANT AND MATERIAL TO THE ISSUE OF WHETHER SUCH  CLAIM  WAS  PROPERLY
DENIED.
  (11) 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. 6409                            10                            A. 9009

  S  7.  The  opening  paragraph  of  subparagraph (a) of paragraph 2 of
subsection (n-1) of section 606 of the tax law, as added by section 1 of
subpart B of part C of chapter 20 of the laws of  2015,  is  amended  to
read as follows:
  To be eligible for the credit, the taxpayer (or taxpayers filing joint
returns)  on  the  personal income tax return filed for the taxable year
two years prior, must have (i) been a resident, (ii) owned and primarily
resided in real property receiving EITHER the STAR exemption  authorized
by  section four hundred twenty-five of the real property tax law OR THE
SCHOOL TAX RELIEF CREDIT AUTHORIZED BY SUBSECTION (EEE) OF THIS SECTION,
and (iii) had qualified gross income no greater than two hundred  seven-
ty-five  thousand  dollars.  Provided,  however, that no credit shall be
allowed if any of the following apply:
  S 8. This act shall take effect immediately, provided,  however,  that
sections  six  and seven of this act shall apply to taxable years begin-
ning on or after January 1, 2016.

                                 PART B

  Section 1. Subparagraph (i) of  paragraph  (a)  of  subdivision  2  of
section  1306-a of the real property tax law, as amended by section 6 of
part N of chapter 58 of the laws of 2011, is amended to read as follows:
  (i) The tax savings for each parcel receiving the exemption authorized
by section four hundred twenty-five of this chapter shall be computed by
subtracting the amount actually  levied  against  the  parcel  from  the
amount  that  would  have been levied if not for the exemption, provided
however, that [beginning with] FOR the two thousand eleven-two  thousand
twelve  THROUGH  TWO THOUSAND FIFTEEN-TWO THOUSAND SIXTEEN school [year]
YEARS, the tax savings applicable to any "portion" (which as used herein
shall mean that part of  an  assessing  unit  located  within  a  school
district) shall not exceed the tax savings applicable to that portion in
the  prior  school  year multiplied by one hundred two percent, with the
result rounded to the nearest dollar; AND PROVIDED FURTHER  THAT  BEGIN-
NING  WITH  THE TWO THOUSAND SIXTEEN-TWO THOUSAND SEVENTEEN SCHOOL YEAR,
THE TAX SAVINGS APPLICABLE TO ANY  PORTION  SHALL  NOT  EXCEED  THE  TAX
SAVINGS  FOR  THE  PRIOR YEAR. The tax savings attributable to the basic
and enhanced exemptions shall be calculated separately. It shall be  the
responsibility  of the commissioner to calculate tax savings limitations
for purposes of this subdivision.
  S 2. This act shall take effect immediately.

                                 PART C

  Section 1. Subparagraphs (iv), (v) and (vi) of paragraph (b) of subdi-
vision 4 of section 425 of the real property tax law, subparagraph  (iv)
as  amended  by  chapter  451  of  the laws of 2015, subparagraph (v) as
amended by section 10 of part W of chapter  56  of  the  laws  of  2010,
subparagraph (vi) as amended by section 3 of part E of chapter 83 of the
laws  of  2002,  and clause E of subparagraph (vi) as further amended by
section 1 of part W of chapter 56 of the laws of 2010,  are  amended  to
read as follows:
  (iv)  Effective  with applications for the enhanced exemption on final
assessment rolls to be completed in two thousand [three] SEVENTEEN,  the
application  form shall indicate that the owners of the property and any
owners' spouses residing on the premises [may] MUST ENROLL IN  THE  STAR
INCOME  VERIFICATION PROGRAM ADMINISTERED BY THE DEPARTMENT IN ORDER FOR

S. 6409                            11                            A. 9009

THE PROPERTY TO BE ELIGIBLE FOR AN ENHANCED EXEMPTION PURSUANT  TO  THIS
SUBDIVISION. TO ENROLL THEREIN, THEY MUST authorize the assessor to have
their  income  eligibility  verified  annually thereafter by the [state]
department [of taxation and finance, in lieu of furnishing copies of the
applicable  income  tax  return  or returns with the application. If the
owners of the property and any owners' spouses residing on the  premises
elect  to  participate in this program, which shall be known as the STAR
income verification program, they] AND must furnish their taxpayer iden-
tification numbers in order to facilitate matching with records  of  the
department. Thereafter, their income eligibility shall be verified annu-
ally  by  the  department  and  the  assessor  shall  not request income
documentation from them, unless such  department  advises  the  assessor
that they do not satisfy the applicable income eligibility requirements,
or  that  it  is unable to determine whether they satisfy those require-
ments, OR UNLESS ONE OR MORE OF THE OWNERS OR SPOUSES IN  QUESTION  WERE
NOT  REQUIRED  TO  FILE  A NEW YORK INCOME TAX RETURN FOR THE APPLICABLE
INCOME TAX YEAR AND DID NOT DO SO.  All APPLICANTS FOR THE ENHANCED STAR
EXEMPTION AND ALL assessing units shall be required  to  participate  in
this program.
  (v)  (A) Except in the case of a city with a population of one million
or more, the assessor shall forward to the department, in the  time  and
manner  required  by the department, information identifying the persons
[who have  elected  to  participate  in  the  STAR  income  verification
program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB-
LISHED  BY THIS PARAGRAPH.  After receiving the department's response or
responses, the assessing authority shall cause notices to be  mailed  to
participants  as  provided  by paragraph (b) of subdivision five of this
section.  Information  provided  to  the  department  identifying   such
persons,  and responses obtained from such department shall be confiden-
tial and shall not be subject to disclosure under  article  six  of  the
public officers law.
  (B)  In  the case of a city of one million or more, the assessor shall
forward to the department [of taxation and finance],  in  the  time  and
manner  required  by the department, information identifying the persons
[who have  elected  to  participate  in  the  STAR  income  verification
program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB-
LISHED  BY  THIS PARAGRAPH.  The department shall advise the assessor of
its findings in the manner provided by the agreement  executed  pursuant
to  section  one  hundred  seventy-one-o of the tax law. After receiving
such response or responses, the assessing authority shall cause  notices
to be mailed to participants as provided by paragraph (b) of subdivision
five of this section. Information provided to the department identifying
such  persons,  and  responses  obtained  from  such department shall be
confidential and shall not be subject to disclosure under article six of
the public officers law.
  (vi) Notwithstanding the provisions of subparagraphs (iv) and  (v)  of
this  paragraph,  which  establish  a  STAR income verification program,
income documentation must be submitted to  the  assessor  in  connection
with each of the following:
  (A) Initial applications for the enhanced STAR exemption;
  (B)  Renewal  applications  [submitted by a person or persons who have
not elected to participate in  the  STAR  income  verification  program]
WHERE ONE OR MORE OF THE OWNERS OR SPOUSES IN QUESTION WERE NOT REQUIRED
TO  FILE A NEW YORK INCOME TAX RETURN FOR THE APPLICABLE INCOME TAX YEAR
AND DID NOT DO SO;

S. 6409                            12                            A. 9009

  (C) Applications that would allow  an  enhanced  exemption  to  resume
after having been discontinued;
  (D)  Applications  submitted by a person or persons who had previously
qualified for the enhanced exemption but not in the  assessing  unit  in
question; and
  (E) Applications with respect to which the department [of taxation and
finance]  has advised the assessor [through the commissioner] that it is
unable to determine whether a participant or participants  in  the  STAR
income verification program satisfy the income eligibility requirements.
  S  2.  This  act  shall take effect immediately and shall apply to the
administration of the enhanced STAR exemption authorized by  subdivision
4  of  section  425  of  the  real property tax law beginning with final
assessment rolls to be completed in 2017.

                                 PART D

  Section 1. Subdivision 6 of section 425 of the real property  tax  law
is amended by adding a new paragraph (a-2) to read as follows:
  (A-2)  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, WHERE A
RENEWAL APPLICATION FOR THE  "ENHANCED"  STAR  EXEMPTION  AUTHORIZED  BY
SUBDIVISION  FOUR  OF  THIS  SECTION HAS NOT BEEN FILED ON OR BEFORE THE
TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED  FOR
THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY,
NO  LATER  THAN  THE  LAST DAY FOR PAYING SCHOOL TAXES WITHOUT INCURRING
INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE COMMISSIONER ASKING
HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE  EXEMPTION.  SUCH
REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND
SHALL  BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND
CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. AFTER CONSULT-
ING WITH THE ASSESSOR, THE COMMISSIONER MAY EXTEND THE  FILING  DEADLINE
AND  GRANT  THE EXEMPTION IF THE COMMISSIONER IS SATISFIED THAT (I) GOOD
CAUSE EXISTED FOR THE FAILURE TO FILE THE  RENEWAL  APPLICATION  BY  THE
TAXABLE  STATUS  DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED
TO THE EXEMPTION. THE COMMISSIONER SHALL  MAIL  NOTICE  OF  HIS  OR  HER
DETERMINATION  TO  SUCH  OWNER  AND  THE  ASSESSOR. IF THE DETERMINATION
STATES THAT THE COMMISSIONER HAS GRANTED  THE  EXEMPTION,  THE  ASSESSOR
SHALL  THEREUPON  BE  AUTHORIZED  AND DIRECTED TO CORRECT THE ASSESSMENT
ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR  CONTROL  OF  THE
ASSESSMENT   ROLL,  TO  DIRECT  THAT  PERSON  TO  MAKE  THE  APPROPRIATE
CORRECTIONS. IF THE CORRECTION IS  NOT  MADE  BEFORE  SCHOOL  TAXES  ARE
LEVIED,  THE  FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTA-
TION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE
THREE OF ARTICLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDING-
LY.
  S 2. Section 467 of the real property tax law is amended by  adding  a
new subdivision 8-a to read as follows:
  8-A.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, THE LOCAL
GOVERNING BODY OF A MUNICIPAL CORPORATION THAT IS AUTHORIZED TO ADOPT  A
LOCAL  LAW  PURSUANT  TO  SUBDIVISION  EIGHT  OF THIS SECTION IS FURTHER
AUTHORIZED TO ADOPT A LOCAL LAW PROVIDING THAT WHERE A RENEWAL  APPLICA-
TION  FOR THE EXEMPTION AUTHORIZED BY THIS SECTION HAS NOT BEEN FILED ON
OR BEFORE THE TAXABLE STATUS DATE, AND  THE  OWNER  BELIEVES  THAT  GOOD
CAUSE  EXISTED  FOR  THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT
DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING TAXES WITHOUT
INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE  ASSESSOR
ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION.

S. 6409                            13                            A. 9009

SUCH  REQUEST  SHALL  CONTAIN  AN  EXPLANATION  OF  WHY THE DEADLINE WAS
MISSED, AND SHALL BE ACCOMPANIED BY A  RENEWAL  APPLICATION,  REFLECTING
THE  FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE.
THE  ASSESSOR  MAY EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION IF
HE OR SHE IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR  THE  FAILURE  TO
FILE  THE  RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND THAT (II)
THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE ASSESSOR SHALL
MAIL NOTICE OF HIS OR HER DETERMINATION TO THE OWNER.  IF  THE  DETERMI-
NATION  STATES  THAT  THE  ASSESSOR HAS GRANTED THE EXEMPTION, HE OR SHE
SHALL THEREUPON BE AUTHORIZED AND DIRECTED  TO  CORRECT  THE  ASSESSMENT
ROLL  ACCORDINGLY,  OR,  IF ANOTHER PERSON HAS CUSTODY OR CONTROL OF THE
ASSESSMENT  ROLL,  TO  DIRECT  THAT  PERSON  TO  MAKE  THE   APPROPRIATE
CORRECTIONS.  IF THE CORRECTION IS NOT MADE BEFORE TAXES ARE LEVIED, THE
FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTATION OF THE TAX
SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF  ARTI-
CLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDINGLY.
  S  3.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

                                 PART E

  Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
subsection (eee) to read as follows:
  (EEE) SCHOOL TAX REDUCTION CREDIT FOR RESIDENTS OF A CITY WITH A POPU-
LATION OVER ONE MILLION. (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOU-
SAND  FIFTEEN, A SCHOOL TAX REDUCTION CREDIT SHALL BE ALLOWED TO A RESI-
DENT INDIVIDUAL OF THE STATE  WHO  IS  A  RESIDENT  OF  A  CITY  WITH  A
POPULATION  OVER  ONE  MILLION,  AS  PROVIDED BELOW. THE CREDIT SHALL BE
ALLOWED AGAINST THE TAXES AUTHORIZED BY  THIS  ARTICLE  REDUCED  BY  THE
CREDITS  PERMITTED  BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX AS SO
REDUCED, 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
WILL  BE  PAID THEREON. FOR PURPOSES OF THIS SUBSECTION, NO CREDIT SHALL
BE GRANTED 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.
  (2) THE AMOUNT OF THE CREDIT UNDER THIS PARAGRAPH SHALL BE  DETERMINED
BASED  UPON  THE  TAXPAYER'S  INCOME  AS DEFINED IN SUBPARAGRAPH (II) OF
PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF
THE REAL PROPERTY TAX LAW. FOR  THE  PURPOSES  OF  THIS  PARAGRAPH,  ANY
TAXPAYER  UNDER  SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH WITH INCOME
OF MORE THAN TWO HUNDRED FIFTY THOUSAND  DOLLARS  SHALL  NOT  RECEIVE  A
CREDIT.
  (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN
THE  CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF
A SURVIVING SPOUSE, THE CREDIT SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS.
  (B) ALL OTHERS. IN THE CASE OF AN UNMARRIED INDIVIDUAL, A  HEAD  OF  A
HOUSEHOLD  OR  A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE CREDIT
SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS.
  (3) PART-YEAR RESIDENTS. IF A TAXPAYER CHANGES STATUS DURING THE TAXA-
BLE YEAR FROM RESIDENT TO NONRESIDENT, OR FROM NONRESIDENT TO  RESIDENT,
THE  SCHOOL  TAX REDUCTION CREDIT AUTHORIZED BY THIS SUBSECTION SHALL BE
PRORATED ACCORDING TO THE NUMBER OF MONTHS IN THE PERIOD OF RESIDENCE.
  S 2. Paragraphs 1 and 2 of subsection (e) of section 1310 of  the  tax
law,  paragraph 1 as amended by section 3 of part A of chapter 56 of the

S. 6409                            14                            A. 9009

laws of 1998, paragraph 2 as amended by section 1 of part R  of  chapter
57  of  the laws of 2008 and subparagraphs (A) and (B) of paragraph 2 as
amended by section 4 of part M of chapter 57 of the laws  of  2009,  are
amended to read as follows:
  (1)  For  taxable years beginning after nineteen hundred ninety-seven,
AND ENDING BEFORE TWO THOUSAND SIXTEEN, a  state  school  tax  reduction
credit  shall be allowed as provided in the following tables. The credit
shall be allowed against the taxes authorized by this article 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. For purposes of this subsection, no
credit  shall  be  granted  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.
  (2) The amount of the credit under this paragraph shall be  determined
based  upon  the  taxpayer's  income  as defined in subparagraph (ii) of
paragraph (b) of subdivision four of section four hundred twenty-five of
the real property tax law. For  the  purposes  of  this  paragraph,  any
taxpayer  under  subparagraphs (A) and (B) of this paragraph with income
of more than two hundred fifty thousand  dollars  shall  not  receive  a
credit.
  Beginning in the two thousand ten tax year and each tax year thereaft-
er  THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou-
sand dollar"  income  limitation  shall  be  adjusted  by  applying  the
inflation factor set forth herein, and rounding each result to the near-
est  multiple of one hundred dollars. The department shall establish the
income limitation to be associated with  each  subsequent  tax  year  by
applying  the  inflation  factor  set  forth  herein to the figures that
define the income limitation that were applicable to the  preceding  tax
year,  as  determined  pursuant  to  this  [subdivision] SUBSECTION, and
rounding each result to the nearest multiple  of  one  hundred  dollars.
Such determination shall be made no later than March first, two thousand
ten and each year thereafter.
  [For  purposes  of  this  paragraph,  the  "inflation factor" shall be
determined in accordance with the provisions set  forth  in  subdivision
fifteen of section one hundred seventy-eight of this chapter.]
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]- 2015       $125
  (B)  All  others.  In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]- 2015       $62.50
  S 3. Paragraphs 1 and 2 of subsection (c) of section  11-1706  of  the
administrative  code  of the city of New York, paragraph 1 as amended by
section 6 of part A of chapter 56 of the laws of 1998,  paragraph  2  as

S. 6409                            15                            A. 9009

amended  by  section  2  of part R of chapter 57 of the laws of 2008 and
subparagraphs (A) and (B) of paragraph 2 as amended by section 5 of part
M of chapter 57 of the laws of 2009, are amended to read as follows:
  (1)  For  taxable  years beginning after nineteen hundred ninety-seven
AND ENDING BEFORE TWO THOUSAND SIXTEEN, a  state  school  tax  reduction
credit  shall be allowed as provided in the following tables. The credit
shall be allowed against the taxes authorized by this article 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. For purposes of this [subdivision]
SUBSECTION, no credit shall be granted 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.
  (2)  The amount of the credit under this paragraph shall be determined
based upon the taxpayer's income as  defined  in  subparagraph  (ii)  of
paragraph (b) of subdivision four of section four hundred twenty-five of
the  real property tax law. For purposes of this paragraph, any taxpayer
under subparagraphs (A) and (B) of this paragraph with  income  of  more
than two hundred fifty thousand dollars shall not receive a credit.
  Beginning in the two thousand ten tax year and each tax year thereaft-
er  THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou-
sand dollar"  income  limitation  shall  be  adjusted  by  applying  the
inflation factor set forth herein, and rounding each result to the near-
est  multiple of one hundred dollars. The department shall establish the
income limitation to be associated with  each  subsequent  tax  year  by
applying  the  inflation  factor  set  forth  herein to the figures that
define the income limitation that were applicable to the  preceding  tax
year,  as  determined  pursuant  to  this  [subdivision] SUBSECTION, and
rounding each result to the nearest multiple  of  one  hundred  dollars.
Such determination shall be made no later than March first, two thousand
ten and each year thereafter.
  [For  purposes  of  this  paragraph,  the  "inflation factor" shall be
determined in accordance with the provisions set  forth  in  subdivision
fifteen of section one hundred seventy-eight of the tax law.]
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]- 2015       $125
  (B)  All  others.  In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]- 2015       $62.50
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.

                                 PART F

S. 6409                            16                            A. 9009

  Section 1. Section 425 of the real property  tax  law  is  amended  by
adding a new subdivision 16 to read as follows:
  (16)  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, WHEN THE
COMMISSIONER FINDS THAT A PROPERTY  OWNER  WAS  ELIGIBLE  FOR  THE  STAR
EXEMPTION  AUTHORIZED  BY  THIS  SECTION  ON AN ASSESSMENT ROLL, BUT THE
EXEMPTION WAS NOT TAKEN INTO ACCOUNT IN THE CALCULATION OF THE  PROPERTY
OWNER'S SCHOOL TAX BILL DUE TO AN ADMINISTRATIVE ERROR, AND THE PROPERTY
OWNER  OR  HIS  OR HER AGENT PAID AN EXCESSIVE AMOUNT OF SCHOOL TAXES ON
THE PROPERTY AS A RESULT, THE COMMISSIONER OF TAXATION  AND  FINANCE  IS
AUTHORIZED  TO REMIT DIRECTLY TO THE PROPERTY OWNER THE TAX SAVINGS THAT
THE STAR EXEMPTION WOULD HAVE YIELDED IF THE  STAR  EXEMPTION  HAD  BEEN
TAKEN  INTO  ACCOUNT  IN  THE  CALCULATION OF THAT TAXPAYER'S SCHOOL TAX
BILL. THE AMOUNTS PAYABLE UNDER THIS SECTION  SHALL  BE  PAID  FROM  THE
ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS
PURSUANT  TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN
OF THIS SECTION. WHERE SUCH A PAYMENT HAS BEEN MADE, NEITHER THE PROPER-
TY OWNER NOR HIS OR HER AGENT SHALL BE  ENTITLED  TO  A  REFUND  OF  THE
EXCESSIVE  AMOUNT  OF SCHOOL TAXES PAID ON ACCOUNT OF THE ADMINISTRATIVE
ERROR.
  S 2. This act shall take effect immediately.

                                 PART G

  Section 1. Paragraph 10 of subsection (g) of section 658  of  the  tax
law is REPEALED.
  S  2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin-
istrative code of the city of New York is REPEALED.
  S 3. Paragraph 5 of subsection (u) of section 685 of the  tax  law  is
REPEALED.
  S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
trative code of the city of New York is REPEALED.
  S  5. Section 23 of part U of chapter 61 of the laws of 2011, amending
the real property tax law and other laws relating to establishing stand-
ards for electronic tax administration, as amended by section 1 of  part
H of chapter 59 of the laws of 2013, is amended to read as follows:
  S 23. This act shall take effect immediately; provided, however, that:
  (a)  the amendments to section 29 of the tax law made by section thir-
teen of this act shall apply to tax documents filed or  required  to  be
filed  on  or  after  the  sixtieth  day after which this act shall have
become a law [and shall expire  and  be  deemed  repealed  December  31,
2016],  provided  however that the amendments to paragraph 4 of subdivi-
sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e)
of section 29 of the tax law made by section thirteen of this  act  with
regard  to individual taxpayers shall take effect September 15, 2011 but
only if the commissioner of taxation and finance  has  reported  in  the
report  required  by section seventeen-b of this act that the percentage
of individual taxpayers electronically  filing  their  2010  income  tax
returns is less than eighty-five percent; provided that the commissioner
of  taxation  and  finance  shall  notify  the legislative bill drafting
commission of the date of the issuance of such report in order that  the
commission  may  maintain  an accurate and timely effective data base of
the official text of the laws of the state of New York in furtherance of
effectuating the provisions of section 44 of  the  legislative  law  and
section 70-b of the public officers law;
  (b)  sections  fourteen,  fifteen,  sixteen  and seventeen of this act
shall take effect September 15, 2011 but only  if  the  commissioner  of

S. 6409                            17                            A. 9009

taxation  and  finance  has  reported  in the report required by section
seventeen-b of this act that  the  percentage  of  individual  taxpayers
electronically  filing their 2010 income tax returns is less than eight-
y-five percent; AND
  (c)  sections  fourteen-a  and fifteen-a of this act shall take effect
September 15, 2011 and expire and be deemed repealed December  31,  2012
but  shall  take effect only if the commissioner of taxation and finance
has reported in the report required by section seventeen-b of  this  act
that  the percentage of individual taxpayers electronically filing their
2010 income tax returns is eighty-five percent or greater[;
  (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of  this
act  shall  take  effect January 1, 2017 but only if the commissioner of
taxation and finance has reported in  the  report  required  by  section
seventeen-b  of  this  act  that  the percentage of individual taxpayers
electronically filing their 2010 income tax returns is less than  eight-
y-five percent; and
  (e)  sections twenty-one and twenty-one-a of this act shall expire and
be deemed repealed December 31, 2016].
  S 6. Subsection (aa) of section 685 of the tax law is REPEALED  and  a
new subsection (aa) is added to read as follows:
  (AA)  TAX  PREPARER  PENALTY. -- (1) IF AN INCOME TAX PREPARER TAKES A
POSITION ON ANY RETURN THAT EITHER  UNDERSTATES  THE  TAX  LIABILITY  OR
INCREASES  THE  CLAIM FOR A REFUND, AND THE PREPARER KNEW, OR REASONABLY
SHOULD HAVE KNOWN, THAT SAID POSITION WAS NOT PROPER, AND SUCH  POSITION
WAS NOT ADEQUATELY DISCLOSED ON THE RETURN OR IN A STATEMENT ATTACHED TO
THE  RETURN, SUCH INCOME TAX PREPARER SHALL PAY A PENALTY OF BETWEEN ONE
HUNDRED AND ONE THOUSAND DOLLARS.
  (2) IF AN INCOME TAX PREPARER TAKES A  POSITION  ON  ANY  RETURN  THAT
EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND
AND  THE  UNDERSTATEMENT OF THE TAX LIABILITY OR THE INCREASED CLAIM FOR
REFUND IS DUE TO THE PREPARER'S RECKLESS OR INTENTIONAL DISREGARD OF THE
LAW, RULES OR REGULATIONS, SUCH PREPARER SHALL PAY A PENALTY OF  BETWEEN
FIVE  HUNDRED AND FIVE THOUSAND DOLLARS. THE AMOUNT OF THE PENALTY PAYA-
BLE BY ANY PERSON BY REASON OF THIS PARAGRAPH SHALL BE  REDUCED  BY  THE
AMOUNT  OF THE PENALTY PAID BY SUCH PERSON BY REASON OF PARAGRAPH (1) OF
THIS SUBSECTION.
  (3) FOR PURPOSES OF  THIS  SUBSECTION,  THE  TERM  "UNDERSTATEMENT  OF
LIABILITY"  MEANS  ANY  UNDERSTATEMENT  OF  THE  NET AMOUNT PAYABLE WITH
RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR  ANY  OVERSTATEMENT  OF
THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX.
  (4)  THIS  SUBSECTION  SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION
(R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER  WITH  RESPECT
TO SUCH UNDERSTATEMENT.
  S 7. Subsection (u) of section 685 of the tax law is amended by adding
two new paragraphs (1) and (2) to read as follows:
  (1)  FAILURE TO SIGN RETURN OR CLAIM FOR REFUND. ANY INDIVIDUAL WHO IS
A TAX RETURN PREPARER BUT IS  NOT  SUBJECT  TO  THE  REQUIREMENTS  UNDER
SECTION  THIRTY-TWO  OF  THIS CHAPTER, WHO IS REQUIRED PURSUANT TO PARA-
GRAPH ONE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT  OF  THIS
ARTICLE  TO  SIGN  A  RETURN OR CLAIM FOR REFUND AND WHO FAILS TO COMPLY
WITH SUCH REQUIREMENT WITH RESPECT TO SUCH RETURN OR CLAIM  FOR  REFUND,
SHALL BE SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH
FAILURE  TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASON-
ABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM  PENALTY  IMPOSED
UNDER  THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS
FILED DURING ANY CALENDAR YEAR BY  THE  TAX  RETURN  PREPARER  MUST  NOT

S. 6409                            18                            A. 9009

EXCEED  TEN  THOUSAND  DOLLARS.  PROVIDED, HOWEVER, THAT IF A TAX RETURN
PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING  CALEN-
DAR  YEAR  AND  AGAIN  FAILS  TO SIGN HIS OR HER NAME ON ANY RETURN THAT
REQUIRES  THE TAX RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT CALEN-
DAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE
FIVE HUNDRED DOLLARS, AND NO ANNUAL CAP WILL APPLY.
  (2) FAILURE TO FURNISH IDENTIFYING NUMBER. IF ANY  IDENTIFYING  NUMBER
REQUIRED  TO  BE  INCLUDED ON ANY RETURN OR CLAIM FOR REFUND PURSUANT TO
PARAGRAPH TWO OF SUBSECTION (G) OF SECTION SIX  HUNDRED  FIFTY-EIGHT  OF
THIS  ARTICLE  IS  NOT  SO  INCLUDED,  THE  PERSON WHO IS THE TAX RETURN
PREPARER BUT IT NOT SUBJECT TO THE REQUIREMENTS UNDER SECTION THIRTY-TWO
OF THIS CHAPTER WITH RESPECT TO SUCH RETURN OR CLAIM FOR  REFUND,  SHALL
BE  SUBJECT  TO  A PENALTY OF ONE HUNDRED DOLLARS FOR EACH SUCH FAILURE,
UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND  NOT
WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY
TAX  RETURN  PREPARER  WITH RESPECT TO RETURNS FILED DURING ANY CALENDAR
YEAR MUST NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS; PROVIDED, HOWEV-
ER, THAT IF A TAX RETURN PREPARER HAS BEEN PENALIZED  UNDER  THIS  PARA-
GRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO INCLUDE THE IDEN-
TIFYING NUMBER ON ONE OR MORE RETURNS DURING A SUBSEQUENT CALENDAR YEAR,
THEN  THE  PENALTY  UNDER  THIS  PARAGRAPH  FOR EACH FAILURE WILL BE TWO
HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY.
  S 8. This act shall take effect immediately; provided,  however,  that
section seven of this act shall apply to taxable years commencing on and
after January 1, 2016.

                                 PART H

  Section  1.  Subdivision 4 of section 22 of the public housing law, as
amended by section 2 of part P of chapter 59 of the  laws  of  2014,  is
amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall  be  [sixty-four]  SEVENTY-TWO million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 2. Subdivision 4 of section 22 of the public housing law, as amended
by section one of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [seventy-two] EIGHTY million dollars. The  limita-
tion  provided  by  this  subdivision  applies only to allocation of the
aggregate dollar amount of credit by  the  commissioner,  and  does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S  3. Subdivision 4 of section 22 of the public housing law as amended
by section two of this act is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [eighty] EIGHTY-EIGHT million dollars. The limita-
tion provided by this subdivision applies  only  to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.

S. 6409                            19                            A. 9009

  S 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall  be  [eighty-eight] NINETY-SIX million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [ninety-six] ONE HUNDRED FOUR million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 6. This  act  shall  take  effect  immediately;  provided,  however,
section  two  of this act shall take effect April 1, 2017; section three
of this act shall take effect April 1, 2018; section four  of  this  act
shall  take effect April 1, 2019 and section five of this act shall take
effect April 1, 2020.

                                 PART I

  Section 1. Paragraphs (a) and (b) of subdivision 29 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:
  (a) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first,  two  thousand
[seventeen]  NINETEEN,  a  taxpayer  shall  be  allowed  a credit, to be
computed as provided in this subdivision, against  the  tax  imposed  by
this  article,  for hiring and employing, for not less than one year and
for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which the
qualified veteran completes one year of employment by the  taxpayer.  If
the  taxpayer  claims  the  credit  allowed  under this subdivision, the
taxpayer may not use the hiring of a qualified veteran that is the basis
for this credit in the basis of any  other  credit  allowed  under  this
article.
  (b) Qualified veteran. A qualified veteran is an individual:
  (1)  who  served  on  active duty in the United States army, navy, air
force, marine corps, coast guard or the reserves thereof, or who  served
in  active military service of the United States as a member of the army
national guard, air national guard, New York guard  or  New  York  naval
militia;  who  was  released  from  active  duty by general or honorable
discharge after September eleventh, two thousand one;
  (2) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [sixteen] EIGHTEEN; and
  (3) who certifies by signed affidavit, under penalty of perjury,  that
he or she has not been employed for thirty-five or more hours during any
week  in  the  one hundred eighty day period immediately prior to his or
her employment by the taxpayer.

S. 6409                            20                            A. 9009

  S 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the  tax
law, as added by section 3 of part AA of chapter 59 of the laws of 2013,
are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary  first,  two thousand fifteen and before January first, two thousand
[seventeen] NINETEEN, a taxpayer  shall  be  allowed  a  credit,  to  be
computed as provided in this subsection, against the tax imposed by this
article,  for  hiring  and employing, for not less than one year and for
not less than thirty-five hours each week, a  qualified  veteran  within
the  state.  The  taxpayer may claim the credit in the year in which the
qualified veteran completes one year of employment by the  taxpayer.  If
the  taxpayer  claims  the  credit  allowed  under  this subsection, the
taxpayer may not use the hiring of a qualified veteran that is the basis
for this credit in the basis of any  other  credit  allowed  under  this
article.
  (2) Qualified veteran. A qualified veteran is an individual:
  (A)  who  served  on  active duty in the United States army, navy, air
force, marine corps, coast guard or the reserves thereof, or who  served
in  active military service of the United States as a member of the army
national guard, air national guard, New York guard  or  New  York  naval
militia;  who  was  released  from  active  duty by general or honorable
discharge after September eleventh, two thousand one;
  (B) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [sixteen] EIGHTEEN; and
  (C) who certifies by signed affidavit, under penalty of perjury,  that
he or she has not been employed for thirty-five or more hours during any
week  in  the  one hundred eighty day period immediately prior to his or
her employment by the taxpayer.
  S 3. Paragraphs 1 and 2 of subdivision (g-1) of section  1511  of  the
tax  law,  as added by section 5 of part AA of chapter 59 of the laws of
2013, are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first,  two  thousand
[seventeen]  NINETEEN,  a  taxpayer  shall  be  allowed  a credit, to be
computed as provided in this subdivision, against  the  tax  imposed  by
this  article,  for hiring and employing, for not less than one year and
for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which the
qualified veteran completes one year of employment by the  taxpayer.  If
the  taxpayer  claims  the  credit  allowed  under this subdivision, the
taxpayer may not use the hiring of a qualified veteran that is the basis
for this credit in the basis of any  other  credit  allowed  under  this
article.
  (2) Qualified veteran. A qualified veteran is an individual:
  (A)  who  served  on  active duty in the United States army, navy, air
force, marine corps, coast guard or the reserves thereof, or who  served
in  active military service of the United States as a member of the army
national guard, air national guard, New York guard  or  New  York  naval
militia;  who  was  released  from  active  duty by general or honorable
discharge after September eleventh, two thousand one;
  (B) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [sixteen] EIGHTEEN; and
  (C) who certifies by signed affidavit, under penalty of perjury,  that
he or she has not been employed for thirty-five or more hours during any

S. 6409                            21                            A. 9009

week  in  the  one hundred eighty day period immediately prior to his or
her employment by the taxpayer.
  S 4. This act shall take effect immediately.

                                 PART J

  Section  1.  Paragraph  1  of subdivision (a) of section 28 of the tax
law, as amended by section 1 of part O of chapter  59  of  the  laws  of
2014, is amended to read as follows:
  (1)  A taxpayer which is a qualified commercial production company, or
which is a sole proprietor of a qualified commercial production company,
and which is subject to tax under article nine-A or twenty-two  of  this
chapter,  shall  be  allowed  a credit against such tax, pursuant to the
provisions referenced in subdivision (c) of this section, to be computed
as provided in this section. Provided, however, to be eligible for  such
credit, at least seventy-five percent of the production costs (excluding
post  production  costs)  paid or incurred directly and predominantly in
the actual filming or recording of  the  qualified  commercial  must  be
costs  incurred  in  New  York state. The tax credit allowed pursuant to
this section shall apply  to  taxable  years  beginning  before  January
first, two thousand [seventeen] NINETEEN.
  S  2. Paragraph (c) of subdivision 23 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:
  (c)  Expiration  of  credit. The credit allowed under this subdivision
shall not be applicable to taxable years beginning on or after [December
thirty-first] JANUARY FIRST, two thousand [seventeen] NINETEEN.
  S 3. Paragraph 1 of subsection (jj) of section 606 of the tax law,  as
amended  by  section  4  of part O of chapter 59 of the laws of 2014, is
amended to read as follows:
  (1) Allowance of credit. A taxpayer that is eligible pursuant  to  the
provisions  of  section  twenty-eight of this chapter shall be allowed a
credit to be computed as  provided  in  such  section  against  the  tax
imposed by this article. The tax credit allowed pursuant to this section
shall  apply  to taxable years beginning before January first, two thou-
sand [seventeen] NINETEEN.
  S 4. This act shall take effect immediately.

                                 PART K

  Section 1. Section 5 of chapter 604 of the laws of 2011, amending  the
tax  law relating to the credit for companies who provide transportation
to people with disabilities, is amended to read as follows:
  S 5. This act shall take effect immediately and shall remain in effect
until December 31, 2016 when upon such date it shall be deemed repealed;
provided that this act shall be deemed to have been in  full  force  and
effect  on December 31, 2010; [and] provided further that this act shall
apply to all tax years commencing on  or  after  January  1,  2011;  AND
PROVIDED  FURTHER  THAT SECTIONS ONE AND TWO OF THIS ACT SHALL REMAIN IN
EFFECT UNTIL DECEMBER 31, 2022 WHEN UPON SUCH DATE SUCH  SECTIONS  SHALL
BE DEEMED REPEALED.
  S  2. Paragraph (c) of subdivision 38 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:
  (c)  Application of credit. In no event shall the credit allowed under
this subdivision for any taxable year reduce the tax due for  such  year

S. 6409                            22                            A. 9009

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 or if the taxpayer otherwise pays tax based on the
fixed dollar minimum amount, any amount of credit thus not deductible in
such taxable year shall be carried over to the following year or  years,
and may be deducted from the taxpayer's tax for such year or years.  THE
TAX CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION SHALL NOT APPLY TO TAXA-
BLE   YEARS   BEGINNING   ON   OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
TWENTY-THREE.
  S 3. This act shall take effect immediately.

                                 PART L

  Section 1. Section 2 of part I of chapter 58  of  the  laws  of  2006,
relating  to  providing an enhanced earned income tax credit, as amended
by section 1 of part G of chapter 59 of the laws of 2014, is amended  to
read as follows:
  S 2. This act shall take effect immediately and shall apply to taxable
years  beginning  on  or  after  January  1, 2006 [and before January 1,
2017].
  S 2. This act shall take effect immediately.

                                 PART M

  Section 1. Section 12 of part N of chapter 61 of  the  laws  of  2005,
amending the tax law relating to certain transactions and related infor-
mation  and  relating to the voluntary compliance initiative, as amended
by section 1 of part B of chapter 61 of the laws of 2011, is amended  to
read as follows:
  S  12. This act shall take effect immediately; provided, however, that
(i) section one of this act shall apply  to  all  disclosure  statements
described  in  paragraph  1  of subdivision (a) of section 25 of the tax
law, as added by section one of this act, that were required to be filed
with the internal revenue service at any time with  respect  to  "listed
transactions"  as  described in such paragraph 1, and shall apply to all
disclosure statements described in paragraph 1  of  subdivision  (a)  of
section  25  of  the  tax law, as added by section one of this act, that
were required to be filed with the internal revenue service with respect
to "reportable transactions" as described in  such  paragraph  1,  other
than  "listed transactions", in which a taxpayer participated during any
taxable year for which the statute of limitations for assessment has not
expired as of the date this act shall take effect, and  shall  apply  to
returns or statements described in such paragraph 1 required to be filed
by  taxpayers  (or  persons  as  described  in  such paragraph) with the
commissioner of taxation and finance on or after the sixtieth day  after
this act shall have become a law; and
  (ii)  sections  two  through  four  and seven through nine of this act
shall apply to any tax liability for which the statute of limitations on
assessment has not expired as of the date this act shall  take  effect[;
and
  (iii)  provided,  further,  that  the  provisions  of this act, except
section five of this act, shall expire and be deemed  repealed  July  1,
2015;  provided,  that,  such expiration and repeal shall not affect any
requirement imposed pursuant to this act].

S. 6409                            23                            A. 9009

  S 2. This act shall take effect immediately and  shall  be  deemed  to
have  been in full force and effect on and after July 1, 2015; provided,
however that notwithstanding the provisions of article 5 of the  general
construction  law,  the  provisions  of  section  25,  paragraph  11  of
subsection  (c)  of  section 683, subsections (p), (p-1), (x), (y), (z),
(aa) and (bb) of section 685, paragraph 11 of subsection (c) of  section
1083, subsections (k), (k-1), (p), (q), (r), (s) and (t) of section 1085
of  the  tax  law, and section 11 of Part N of chapter 61 of the laws of
2005, are hereby revived and shall continue in full force and effect  as
such provisions existed on July 1, 2015.

                                 PART N

  Section 1. Paragraph (a) of subdivision 25 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)  General.  A  taxpayer  shall  be allowed a credit against the tax
imposed by this article. Such credit,  to  be  computed  as  hereinafter
provided,  shall  be  allowed for bioheat, used for space heating or hot
water production for residential purposes within  this  state  purchased
before January first, two thousand [seventeen] TWENTY. Such credit shall
be  $0.01  per percent of biodiesel per gallon of bioheat, not to exceed
twenty cents per gallon, purchased by such taxpayer. PROVIDED,  HOWEVER,
THAT  ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT
SHALL NOT APPLY TO BIOHEAT THAT IS LESS THAN SIX PERCENT  BIODIESEL  PER
GALLON OF BIOHEAT.
  S  2. Paragraph 1 of subsection (mm) of section 606 of the tax law, as
amended by chapter 193 of the laws  of  2012,  is  amended  to  read  as
follows:
  (1)  A  taxpayer  shall be allowed a credit against the tax imposed by
this article. Such credit, to be computed as hereinafter provided, shall
be allowed for bioheat, used for space heating or hot  water  production
for  residential  purposes  within  this state and purchased on or after
July first, two thousand six and before July first, two  thousand  seven
and  on  or  after  January first, two thousand eight and before January
first, two thousand [seventeen] TWENTY. Such credit shall be  $0.01  per
percent  of  biodiesel per gallon of bioheat, not to exceed twenty cents
per gallon, purchased by such taxpayer. PROVIDED, HOWEVER,  THAT  ON  OR
AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT SHALL NOT APPLY
TO  BIOHEAT  THAT  IS  LESS  THAN  SIX  PERCENT  BIODIESEL PER GALLON OF
BIOHEAT.
  S 3. This act shall take effect immediately.

                                 PART O

  Section 1. Section 359 of the economic development law, as amended  by
section  3  of  part  C of chapter 68 of the laws of 2013, is amended to
read as follows:
  S 359. 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 the limitations set forth in this section.  One-half
of  any  amount of tax credits not awarded for a particular taxable year
IN YEARS TWO THOUSAND ELEVEN THROUGH TWO  THOUSAND  TWENTY-FOUR  may  be
used by the commissioner to award tax credits in another taxable year.

Credit components in the aggregate           With respect to taxable

S. 6409                            24                            A. 9009

shall not exceed:                            years beginning in:

          $ 50 million                               2011
          $ 100 million                              2012
          $ 150 million                              2013
          $ 200 million                              2014
          $ 250 million                              2015
          $ 200 million                              2016
          $ 200 million                              2017
          $ 200 million                              2018
          $ 200 million                              2019
          $ 200 million                              2020
          $ 200 million                              2021
          $ 150 million                              2022
          $ 100 million                              2023
          $ 50 million                               2024

  Twenty-five  percent  of  tax credits shall be allocated to businesses
accepted into the  program  under  subdivision  four  of  section  three
hundred  fifty-three  of  this  article  and seventy-five percent of tax
credits shall be allocated to businesses accepted into the program under
subdivision three of section three hundred fifty-three of this article.
  Provided, however, if by September thirtieth of a calendar  year,  the
department  has  not  allocated  the full amount of credits available in
that year to either: (i) businesses  accepted  into  the  program  under
subdivision four of section three hundred fifty-three of this article or
(ii)  businesses  accepted  into  the program under subdivision three of
section three hundred fifty-three of this article, the commissioner  may
allocate  any  remaining  tax credits to businesses referenced in [para-
graphs (i) and (ii) of this section] THIS PARAGRAPH as needed; provided,
however, that under no circumstances may the AGGREGATE statutory cap FOR
ALL PROGRAM YEARS be exceeded. ONE  HUNDRED  PERCENT  OF  THE  UNAWARDED
AMOUNTS  REMAINING  AT  THE END OF TWO THOUSAND TWENTY-FOUR MAY BE ALLO-
CATED IN SUBSEQUENT YEARS, NOTWITHSTANDING THE FIFTY PERCENT  LIMITATION
ON  ANY AMOUNTS OF TAX CREDITS NOT AWARDED IN TAXABLE YEARS TWO THOUSAND
ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR. PROVIDED, HOWEVER, NO TAX CRED-
ITS MAY BE ALLOWED FOR TAXABLE  YEARS  BEGINNING  ON  OR  AFTER  JANUARY
FIRST, TWO THOUSAND THIRTY.
  S  2. Subdivision 5 of section 354 of the economic development law, as
amended by section 2 of part C of chapter 68 of the  laws  of  2013,  is
amended to read as follows:
  5.  A participant may claim tax benefits commencing in the first taxa-
ble year that the business enterprise  receives  a  certificate  of  tax
credit  or  the first taxable year listed on its preliminary schedule of
benefits, whichever is later. A participant may claim such benefits  for
the  next  nine consecutive taxable years, provided that the participant
demonstrates to the department that it continues to satisfy  the  eligi-
bility  criteria  specified in section three hundred fifty-three of this
article and subdivision two of this section in  each  of  those  taxable
years, AND PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS
BEGINNING  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND THIRTY. If, in any
given year, a participant who has  satisfied  the  eligibility  criteria
specified  in section three hundred fifty-three of this article realizes
job creation less than the estimated amount, the credit shall be reduced
by the proportion of  actual  job  creation  to  the  estimated  amount,

S. 6409                            25                            A. 9009

provided  the  proportion  is  at least seventy-five percent of the jobs
estimated.
  S 3. Subdivision (b) of section 31 of the tax law, as added by section
7  of  part  G  of chapter 61 of the laws of 2011, is amended to read as
follows:
  (b) To be eligible for the excelsior jobs program credit, the taxpayer
shall have been issued a "certificate of tax credit" by  the  department
of  economic  development  pursuant to subdivision four of section three
hundred fifty-four of the economic development  law,  which  certificate
shall  set forth the amount of each credit component that may be claimed
for the taxable year. A taxpayer may claim such credit for  ten  consec-
utive  taxable  years  commencing  in  the  first  taxable year that the
taxpayer receives a certificate of tax credit or the first taxable  year
listed  on  its  preliminary  schedule  of benefits, whichever is later,
PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS  BEGINNING
ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND THIRTY. The taxpayer shall be
allowed to claim only the amount listed on the certificate of tax credit
for that taxable year. Such certificate must be attached to the  taxpay-
er's  return.  No cost or expense paid or incurred by the taxpayer shall
be the basis for more than one component of this credit or any other tax
credit, except as provided in section three hundred  fifty-five  of  the
economic development law.
  S 4. This act shall take effect immediately.

                                 PART P

  Section  1.  Subdivision (c) of section 24 of the tax law, as added by
section 1 of part P of chapter 60 of the laws of  2004,  is  amended  to
read as follows:
  (c)  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] 210-B: subdivision [36] 20.
  (2) article 22: section 606: subsection (gg).
  S 2. Subdivision (a) and paragraphs 2, 4, and 5 of subdivision (e)  of
section  38  of the tax law, as added by section 1 of part EE of chapter
59 of the laws of 2013, are amended to read as follows:
  (a) A taxpayer that is an eligible employer or an owner of an eligible
employer as defined in subdivision (b) of this section shall be eligible
for a credit against the tax imposed under article nine,  nine-A,  twen-
ty-two,  [thirty-two]  or  thirty-three of this article, pursuant to the
provisions referenced in subdivision (e) of this section.
  (2) Article 9-A: Section [210] 210-B, subdivision [46] 40.
  (4) [Article 32: Section 1456, subsection (z).
  (5)] Article 33: Section 1511, subdivision (cc).
  S 3. Paragraph (e) 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:
  (e) At the end of each year, the commissioner shall review the cumula-
tive percentage change in the consumer  price  index.  The  commissioner
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 thou-
sand  dollars.  As  used in this paragraph, "consumer price index" means

S. 6409                            26                            A. 9009

the consumer price index  for  all  urban  consumers  (CPI-U)  available
[form]  FROM the bureau of labor statistics of the United States depart-
ment of labor. Any adjustment shall apply  to  tax  periods  that  begin
after the adjustment is made.
  S  4.  The  opening  paragraph  of  paragraph  (a) of subdivision 5 of
section 210-A of the tax law, as amended by section  23  of  part  T  of
chapter 59 of the laws of 2015, is amended to read as follows:
  A  financial instrument is a "nonqualified financial instrument" if it
is not a qualified financial instrument. A qualified  financial  instru-
ment  means a financial instrument that is of a type described in any of
clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of  this
paragraph  and that has been marked to market in the taxable year by the
taxpayer under section 475 or section 1256 of the internal revenue code.
Further, if the taxpayer has in the taxable  year  marked  to  market  a
financial  instrument  of  the type described in any of the clauses (A),
(B), (C), (D), (G), (H) or (I) of subparagraph two  of  this  paragraph,
then  any  financial  instrument within that type described in the above
specified clause or clauses that has not been marked to  market  by  the
taxpayer  under section 475 or section 1256 of the internal revenue code
is a qualified financial instrument in the taxable year. Notwithstanding
the two preceding sentences, (i) a loan secured by real  property  shall
not be a qualified financial instrument, (ii) if the only loans that are
marked  to  market  by the taxpayer under section 475 or section 1256 of
the internal revenue code are loans secured by real  property,  then  no
loans  shall  be qualified financial instruments, [and] (iii) stock that
is investment capital as defined in paragraph (a) of subdivision five of
section two hundred eight of this  article  shall  not  be  a  qualified
financial  instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME
AS DEFINED IN SUBDIVISION SIX-A OF SECTION TWO  HUNDRED  EIGHT  OF  THIS
ARTICLE  AND  THAT  IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION
1256 OF THE INTERNAL REVENUE  CODE  SHALL  NOT  CONSTITUTE  A  QUALIFIED
FINANCIAL  INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS
DESCRIBED IN SUCH SUBDIVISION SIX-A.  If a corporation is included in  a
combined  report, the definition of qualified financial instrument shall
be determined on a combined basis.
  S 5. Paragraph (c) of subdivision 7 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:
  (c) Average number of individuals employed full-time. For the purposes
of this subdivision, average number of  individuals  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  taxable  year  or
other  applicable  period and dividing the sum so obtained by the number
of such quarters occurring within such taxable year or other  applicable
period; provided however, except that in computing base year employment,
there  shall  be  excluded therefrom any employee with respect to whom a
credit provided for under subdivision [six of this section is]  NINETEEN
OF  SECTION  TWO HUNDRED TEN OF THIS ARTICLE, AS SUCH SUBDIVISION WAS IN
EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, WAS claimed  for
the taxable year.
  S  6.  Paragraph (a) of subdivision 9 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) Application of credit. A taxpayer shall be allowed a credit, to be
credited against the tax imposed by this article, equal to the amount of
the  special  additional  mortgage  recording  tax  paid by the taxpayer

S. 6409                            27                            A. 9009

pursuant to the provisions of subdivision one-a of section  two  hundred
fifty-three of this chapter [or] ON mortgages recorded. Provided, howev-
er,  no credit shall be allowed with respect to a mortgage of real prop-
erty  principally  improved  or to be improved by one or more structures
containing in the aggregate  not  more  than  six  residential  dwelling
units,  each  dwelling  unit having its own separate cooking facilities,
where the real property is located  in  one  or  more  of  the  counties
comprising  the  metropolitan  commuter  transportation  area.  Provided
further, however, no credit shall be allowed with respect to a  mortgage
of  real  property principally improved or to be improved by one or more
structures containing in the aggregate not  more  than  six  residential
dwelling  units,  each  dwelling  unit  having  its own separate cooking
facilities, where the real property is located in the county of Erie.
  S 7. Subdivision 45 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:
  45. Order of credits. [(a)] Credits allowable under this article which
cannot be carried over and which are not refundable  shall  be  deducted
first. [The credit allowable under subdivision six of this section shall
be  deducted  immediately  after  the deduction of all credits allowable
under this article which cannot  be  carried  over  and  which  are  not
refundable,  whether  or  not  a  portion of such credit is refundable.]
Credits allowable under this article which  can  be  carried  over,  and
carryovers  of such credits, shall be deducted next [after the deduction
of the credit allowable under subdivision  six  of  this  section],  and
among  such  credits, those whose carryover is of limited duration shall
be deducted before those whose carryover is of unlimited duration. Cred-
its allowable under this article which are refundable [(other  than  the
credit  allowable  under  subdivision  six  of  this  section)] shall be
deducted last.
  S 8. Paragraph (a) of subdivision 3 of section 210-C of the  tax  law,
as  added  by section 18 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
  (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 bases of all
members  of the group in accordance with [paragraph] SUBDIVISION four of
this [subdivision] SECTION, whether or not that business income or busi-
ness capital is from a single unitary business.
  S 9. Paragraph I of subdivision 1 of section 11-604 of the administra-
tive code of the city of New York, as added by chapter 491 of  the  laws
of 2007, is amended to read as follows:
  I.  Notwithstanding any provision of this subdivision to the contrary,
for taxable years beginning on or  after  January  first,  two  thousand
seven for any corporation that:
  (a)  has  a  business  allocation  percentage for the taxable year, as
determined under paragraph (a) of subdivision three of this section,  of
one hundred percent;
  (b) has no investment capital or income at any time during the taxable
year;
  (c) has no subsidiary capital or income at any time during the taxable
year; and

S. 6409                            28                            A. 9009

  (d)  has gross income, as defined in section sixty-one of the internal
revenue code, less than two hundred fifty thousand dollars for the taxa-
ble year:
  the  tax imposed by subdivision one of section 11-603 of this subchap-
ter shall be the greater of the tax on entire net income computed  under
clause  one  of  subparagraph (a) of paragraph E of this subdivision and
the fixed dollar minimum tax specified in clause  four  of  subparagraph
(a) of paragraph E of this subdivision.
  For  purposes  of  this  paragraph, FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO  THOUSAND  FIFTEEN,  any  corporation  for  which  an
election  under  subsection  (a) of section six hundred sixty of the tax
law is not in effect for the taxable year may elect to treat  as  entire
net income the sum of:
  (i) entire net income as determined under section two hundred eight of
the tax law; and
  (ii)  any  deductions  taken for the taxable year in computing federal
taxable income for New York city taxes paid or accrued under this  chap-
ter.
  S  10.  Subdivision  2 of section 11-651 of the administrative code of
the city of New York, as added by section 1 of part D of chapter  60  of
the laws of 2015, is amended to read as follows:
  2.  Each  reference  in THE TAX LAW OR 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 modifica-
tions.
  S 11. Paragraph (a) of subdivision 4 of section 11-652 of the adminis-
trative code of the city of New York, as added by section 1 of part D of
chapter 60 of the laws of 2015, is amended to read as follows:
  (a) The term "investment capital" means investments  in  stocks  that:
(i)  satisfy the definition of a capital asset under section 1221 of the
internal revenue code at all times the taxpayer owned such stocks during
the taxable year; (ii) are held by the taxpayer for investment for  more
than one year; (iii) the dispositions of which are, or would be, treated
by  the  taxpayer  as generating long-term capital gains or losses under
the internal revenue code; (iv) for stocks acquired on or after  January
first,  two  thousand fifteen, at any time after the close of the day in
which they are acquired, have never been held for sale to  customers  in
the  regular  course of business; and (v) before the close of the day on
which the stock was acquired, are clearly identified in  the  taxpayer's
records  as  stock  held  for  investment in the same manner as required
under section 1236(a)(1) of the internal revenue code for the stock of a
dealer in securities to be eligible for capital gain treatment  (whether
or  not the taxpayer is a dealer of securities subject to section 1236),
provided, however, that for stock acquired prior to October  first,  two
thousand fifteen that was not subject to section 1236(a) of the internal
revenue  code,  such identification in the taxpayer's records must occur
before October first, two thousand fifteen. Stock in a corporation  that
is  conducting  a  unitary business with the taxpayer, stock in a corpo-
ration 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 [used]  ISSUED  by  the  taxpayer
shall  not  constitute investment capital. For purposes of this subdivi-
sion, if the taxpayer owns or controls,  directly  or  indirectly,  less
than  twenty  percent of the voting power of the stock of a corporation,

S. 6409                            29                            A. 9009

that corporation will be presumed to be conducting a  business  that  is
not unitary with the business of the taxpayer.
  S  12.  Subparagraph  2  of paragraph (a) of subdivision 18 of section
11-654 of the administrative code of the city of New York, as  added  by
section  1  of  part  D of chapter 60 of the laws of 2015, is amended to
read as follows:
  (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,] EXCEPT THAT IN
THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARA-
GRAPH  ONE  OF  PARAGRAPH  (E)  OF SUBDIVISION ONE OF THIS SECTION, SUCH
DENOMINATOR IS NINE, AND in the case of a taxpayer that  is  subject  to
paragraph  (j) or (k) of subdivision one of this section, such denomina-
tor 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.
  S  13.  Subparagraph  1  of paragraph (b) of subdivision 18 of section
11-654 of the administrative code of the city of New York, as  added  by
section  1  of  part  D of chapter 60 of the laws of 2015, is amended to
read as follows:
  (1) Notwithstanding anything to the contrary in paragraph (a) of  this
subdivision,  in  the case of a corporation that, before the application
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], EXCEPT THAT IN THE CASE OF A FINANCIAL  CORPORATION
AS  DEFINED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI-
VISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND 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. 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

S. 6409                            30                            A. 9009

forward, in order, to each of the seven immediately  succeeding  taxable
years  and,  to  the  extent not previously taken, shall be allowed as a
credit in each of such years. In applying the provisions of the  preced-
ing sentence, the credit determined for the taxable year under paragraph
(a)  of  this subdivision shall be taken before taking any credit carry-
forward pursuant to this paragraph and the credit carryforward attribut-
able to the earliest taxable year shall be taken before taking a  credit
carryforward attributable to a subsequent taxable year.
  S  14.  Subparagraph  8  of paragraph (a) of subdivision 21 of section
11-654 of the administrative code of the city of New York, as  added  by
section  1  of  part  D of chapter 60 of the laws of 2015, is amended to
read as follows:
  (8) The credit allowed under this subdivision shall  only  be  allowed
for taxable years beginning before January first, two thousand [sixteen]
NINETEEN.
  S 15. Paragraph (c) of subdivision 2 of section 11-654.2 of the admin-
istrative  code of the city of New York, as added by section 1 of part D
of chapter 60 of the laws of 2015, is amended to read as follows:
  (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)]  (IX)
of  subparagraph  two  of  paragraph  (a)  of  subdivision  five of this
section.
  S 16. The opening paragraph of  paragraph  (a)  of  subdivision  5  of
section  11-654.2 of the administrative code of the city of New York, as
added by section 1 of part D of chapter 60  of  the  laws  of  2015,  is
amended to read as follows:
  A  financial instrument is a "nonqualified financial instrument" if it
is not a qualified financial instrument. A qualified  financial  instru-
ment  means a financial instrument that is of a type described in any of
clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two
of this paragraph and that has been marked to market in the taxable year
by the taxpayer under section 475 or section 1256 of the internal reven-
ue code. Further, if the taxpayer has in  the  taxable  year  marked  to
market  a  financial  instrument  of the type described in any of clause
(i), (ii), (iii), (iv), (vii), (viii) or (ix)  of  subparagraph  two  of
this paragraph, then any financial instrument within that type described
in  the  above  specified  clause or clauses that has not been marked to
market by the taxpayer under section 475 or section 1256 of the internal
revenue code is a qualified financial instrument in  the  taxable  year.
Notwithstanding  the two preceding sentences, (i) a loan secured by real
property shall not be a qualified financial instrument, (ii) if the only
loans that are marked to market by the taxpayer  under  section  475  or
section  1256  of  the  internal  revenue code are loans secured by real
property, then no loans shall be qualified financial instruments,  [and]
(iii)  stock  that  is investment capital as defined in paragraph (a) of
subdivision [4] FOUR of section 11-652 of this subchapter shall not be a
qualified financial instrument, AND  (IV)  STOCK  THAT  GENERATES  OTHER
EXEMPT INCOME AS DEFINED IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS
SUBCHAPTER AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION
1256  OF  THE  INTERNAL  REVENUE  CODE  SHALL NOT CONSTITUTE A QUALIFIED
FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT  IS
DESCRIBED IN SUCH SUBDIVISION FIVE-A.  If a corporation is included in a
combined  report, the definition of qualified financial instrument shall
be determined on a combined basis.

S. 6409                            31                            A. 9009

  S 17. This act shall take effect immediately;  provided  however  that
sections  one,  two, three, four, five, six, seven and eight of this act
shall be deemed to have been in full force and effect on the  same  date
and in the same manner as part A of chapter 59 of the laws of 2014, took
effect,  and  sections  nine,  ten,  eleven, twelve, thirteen, fourteen,
fifteen and sixteen of this act shall be deemed to  have  been  in  full
force  and  effect  on the same date and in the same manner as part D of
chapter 60 of the laws of 2015, took effect.

                                 PART Q

  Section 1. Subdivision 5 of section 183-a of the tax law,  as  amended
by section 61 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
  5.  The  report  covering  the  tax surcharge which must be calculated
pursuant to this section based upon the tax reportable on the report due
by March fifteenth of any year under section one hundred eighty-three of
this article, FOR TAXABLE YEARS  BEGINNING  BEFORE  JANUARY  FIRST,  TWO
THOUSAND  SIXTEEN,  AND ON THE REPORT DUE BY APRIL FIFTEENTH OF ANY YEAR
UNDER SECTION ONE HUNDRED EIGHTY-THREE  OF  THIS  ARTICLE,  FOR  TAXABLE
YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, shall
be filed on or before March fifteenth of the year next  succeeding  such
year,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF THE  YEAR  NEXT  SUCCEEDING
SUCH  YEAR,  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND SIXTEEN.  An extension pursuant to section one hundred  ninety-
three of this article shall be allowed only if a taxpayer files with the
commissioner  an  application for extension in such form as said commis-
sioner may prescribe by regulation and pays on or  before  the  date  of
such  filing  in addition to any other amounts required under this arti-
cle, either ninety percent of the entire tax surcharge  required  to  be
paid  under this section for the applicable period, or not less than the
tax surcharge shown on the taxpayer's report for the preceding year,  if
such  preceding  year  consisted  of  twelve  months.  The tax surcharge
imposed by this section shall be payable to the commissioner in full  at
the  time  the report is required to be filed, and such tax surcharge or
the balance thereof, imposed on any taxpayer which  ceases  to  exercise
its franchise or be subject to the tax surcharge imposed by this section
shall  be payable to the commissioner at the time the report is required
to be filed, provided such tax surcharge of a domestic corporation which
continues to possess its franchise shall be subject to adjustment as the
circumstances may require; all other tax surcharges of any such  taxpay-
er,  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. All of the
provisions of this article presently applicable to section  one  hundred
eighty-three of this article are applicable to the tax surcharge imposed
by  this section except for section one hundred ninety-two of this arti-
cle.
  S 2. Subdivision 4 of section 186-a of the  tax  law,  as  amended  by
chapter 536 of the laws of 1998, is amended to read as follows:
  4.  Every  utility  subject  to tax hereunder shall file, on or before
March fifteenth of each year, a return for the year ended on the preced-
ing December thirty-first,  FOR TAXABLE YEARS BEGINNING  BEFORE  JANUARY
FIRST,  TWO  THOUSAND  SIXTEEN,  except  that the year ended on December
thirty-first, nineteen hundred seventy-six  shall  be  deemed,  for  the

S. 6409                            32                            A. 9009

purposes  of this subdivision, to have commenced on June first, nineteen
hundred seventy-six, AND SHALL FILE, ON OR  BEFORE  APRIL  FIFTEENTH  OF
EACH  YEAR,  A RETURN FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIR-
TY-FIRST,  FOR  TAXABLE  YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND SIXTEEN, including any period for which the tax imposed  hereby
or  by  any  amendment  hereof is effective, each of which returns shall
state the gross income or gross operating income for the period  covered
by  each  such  return.  Returns shall be filed with the commissioner of
taxation and finance on a form to be furnished by the  commissioner  for
such purpose and shall contain such other data, information or matter as
the commissioner may require to be included therein. Notwithstanding the
foregoing  provisions  of this subdivision, the commissioner may require
any utility to file an annual return, which shall contain any data spec-
ified by the commissioner, regardless of whether the utility is  subject
to  tax  under this section; and the commissioner may require a landlord
selling to a tenant gas, electric,  steam,  water  or  refrigeration  or
furnishing  gas,  electric,  steam, water or refrigerator service, where
the same has been subjected to tax under this section  on  the  sale  to
such  landlord, to file, on or before the fifteenth day of March of each
year, FOR TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN,  AND  ON OR BEFORE THE FIFTEENTH DAY OF APRIL OF EACH YEAR, FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN,
an information return for the year ended on the preceding December thir-
ty-first, covering such year in such form and containing  such  data  as
the  commissioner may specify. Every return shall have annexed thereto a
certification by the head of the utility making  the  same,  or  of  the
owner  or  of  a  co-partner  thereof,  or of a principal officer of the
corporation, if such business be conducted  by  a  corporation,  to  the
effect that the statements contained therein are true.
  S  3. Subdivision 6 of section 186-e of the tax law, as added by chap-
ter 2 of the laws of 1995, is amended to read as follows:
  6. Returns. Every provider of telecommunication  services  subject  to
tax  under this section shall file, on or before March fifteenth of each
year, FOR TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN,  AND  ON  OR  BEFORE  APRIL FIFTEENTH OF EACH YEAR, FOR TAXABLE
YEARS BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,  a
return  for  the  year ended on the preceding December thirty-first, and
pay the tax due, which return shall state the  gross  receipts  for  the
period covered by each such return and the resale exclusions during such
period.  Returns  shall  be  filed with the commissioner on a form to be
furnished by the commissioner for such purpose and  shall  contain  such
other  data, information or matter as the commissioner may require to be
included therein.  Notwithstanding  the  foregoing  provisions  of  this
subdivision,  the  commissioner may require any provider of telecommuni-
cation services to file an annual return, which shall contain  any  data
specified  by  the  commissioner, regardless of whether such provider is
subject to tax under this section. Every return shall have annexed ther-
eto a certification by the head of  the  provider  of  telecommunication
services  making  the  same,  or  of the owner or of a partner or member
thereof, or of a principal officer of the corporation, if such  business
be  conducted  by  a  corporation,  to  the  effect  that the statements
contained therein are true.
  S 4. Subdivision 1 of section 192 of the tax law, as amended by  chap-
ter 96 of the laws of 1976, is amended to read as follows:
  1.  Corporations  paying franchise tax. Every corporation, association
or joint-stock company liable to pay a tax  under  section  one  hundred

S. 6409                            33                            A. 9009

eighty-three  or  one  hundred  eighty-five of this chapter shall, on or
before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING  BEFORE
JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN
EACH  YEAR,  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND SIXTEEN, make a written report to the [tax commission]  COMMIS-
SIONER  of  its  condition at the close of its business on the preceding
December thirty-first, stating the  amount  of  its  authorized  capital
stock, the amount of stock paid in, the date and rate per centum of each
dividend  paid  by  it  during the year ending with such day, the entire
amount of the capital of such corporation, and the capital  employed  by
it in this state during such year.
  S  5.  Subdivision  1  of  section  192  of the tax law, as amended by
section 26 of part S of chapter 59 of the laws of 2014,  is  amended  to
read as follows:
  1.  Corporations  paying franchise tax. Every corporation, association
or joint-stock company liable to pay a tax  under  section  one  hundred
eighty-three of this chapter shall, on or before March fifteenth in each
year,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH  IN  EACH  YEAR,  FOR  TAXABLE
YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, make a
written report to the [tax commission] COMMISSIONER of its condition  at
the  close of its business on the preceding December thirty-first, stat-
ing the amount of its authorized capital stock, the amount of stock paid
in, the date and rate per centum of each dividend paid by it during  the
year  ending  with  such  day,  the entire amount of the capital of such
corporation, and the capital employed by it in this  state  during  such
year.
  S  6. Subdivision 2 of section 192 of the tax law, as amended by chap-
ter 96 of the laws of 1976, is amended to read as follows:
  2. Transportation and transmission corporations. Every  transportation
or  transmission  corporation, joint-stock company or association liable
to pay an additional franchise tax under section one hundred eighty-four
of this chapter, shall also, on or before March fifteenth of each  year,
make a written report to the [tax commission] COMMISSIONER of the amount
of its gross earnings subject to the tax imposed by said section for the
year  ended  on  the  preceding December thirty-first, FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN,  except  that  the
year  ended on December thirty-first, nineteen hundred seventy-six shall
be deemed, for the purposes of this subdivision, to  have  commenced  on
July  first,  nineteen hundred seventy-six, AND SHALL ALSO, ON OR BEFORE
APRIL FIFTEENTH OF EACH YEAR, MAKE A WRITTEN REPORT TO THE  COMMISSIONER
OF  THE  AMOUNT OF ITS GROSS EARNINGS SUBJECT TO THE TAX IMPOSED BY SAID
SECTION FOR THE YEAR ENDED ON THE PRECEDING DECEMBER  THIRTY-FIRST,  FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
Any such corporation, joint-stock company or association which ceases to
be subject to the tax imposed by section one hundred eighty-four of this
chapter by reason of a liquidation, dissolution, merger or consolidation
with  any  other  corporation, or any other cause, shall, on the date of
such cessation or at such other time as the [tax commission] COMMISSION-
ER may require, make a written report to the  [tax  commission]  COMMIS-
SIONER of the amount of its gross earnings subject to the tax imposed by
section one hundred eighty-four of this chapter for any period for which
no report was theretofore filed. Any corporation, joint-stock company or
association  subject  to  a  tax  upon  dividends under said section one
hundred eighty-four of this chapter shall also  include  in  its  report
under  this  subdivision required to be filed a statement of the author-

S. 6409                            34                            A. 9009

ized capital of the company, the amount of capital stock issued, and the
amount of dividends of every nature paid during the year  ended  on  the
preceding  December  thirty-first.  As to tax payers subject to such tax
upon  dividends under said section one hundred eighty-four of this chap-
ter, the year ended on December thirty-first, nineteen hundred  seventy-
six  shall  be  deemed,  for  the  purposes of this subdivision, to have
commenced on July first, nineteen hundred seventy-six.
  S 7. Paragraph (a) of subdivision 1 of section 197-b of the  tax  law,
as  amended  by section 1 of part G-1 of chapter 57 of the laws of 2009,
is amended to read as follows:
  (a) For taxable years beginning on or after  January  first,  nineteen
hundred  seventy-seven,  every taxpayer subject to tax under section one
hundred eighty-two, one hundred eighty-two-a, former section one hundred
eighty-two-b, one hundred eighty-four, one hundred eighty-six-a  or  one
hundred  eighty-six-e  of  this article, must pay in each year an amount
equal to (i) twenty-five percent of the tax imposed under each  of  such
sections  for  the  preceding  taxable  year if the preceding year's tax
exceeded one thousand dollars but was equal to or less than one  hundred
thousand  dollars, or (ii) forty percent of the tax imposed under any of
these sections for the preceding taxable year if  the  preceding  year's
tax  exceeded  one hundred thousand dollars. If the preceding year's tax
under section one hundred eighty-four, one hundred eighty-six-a  or  one
hundred  eighty-six-e  of this article exceeded one thousand dollars and
the taxpayer is subject to the tax  surcharge  imposed  by  section  one
hundred  eighty-four-a  or  one  hundred  eighty-six-c  of this article,
respectively, the taxpayer must also pay in each  such  year  an  amount
equal to (i) twenty-five percent of the tax surcharge imposed under such
section  for  the  preceding  taxable  year  if the preceding year's tax
exceeded one thousand dollars but was equal to or less than one  hundred
thousand  dollars,  or  (ii)  forty percent of the tax surcharge imposed
under that section for the  preceding  taxable  year  if  the  preceding
year's  tax exceeded one hundred thousand dollars. The amount or amounts
must be paid with the return or report required to be filed with respect
to the tax or tax surcharge for the preceding taxable year  or  with  an
application  for  extension of the time for filing the return or report,
FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND  SIXTEEN,
AND  MUST  BE  PAID  ON  OR  BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH
FOLLOWING THE CLOSE OF THE TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING  ON
OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
  S  8. Paragraph (a) of subdivision 1 of section 209 of the tax law, as
amended by section 5 of part A of chapter 59 of the  laws  of  2014,  is
amended to read as follows:
  (a)  For  the  privilege  of exercising its corporate franchise, or of
doing business, or of employing capital, or of owning or leasing proper-
ty in this state in a corporate or organized capacity, or of maintaining
an office in this state, or of deriving receipts from activity  in  this
state,  for  all  or  any  part of each of its fiscal or calendar years,
every domestic or foreign corporation, except corporations specified  in
subdivision  four  of  this section, shall annually pay a franchise tax,
upon the basis of its business income base, 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  here-
inafter  provided, on or before the fifteenth day of March next succeed-
ing the close of each such year,  FOR  TAXABLE  YEARS  BEGINNING  BEFORE
JANUARY  FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY
OF APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH YEAR, FOR TAXABLE  YEARS

S. 6409                            35                            A. 9009

BEGINNING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, or, in the
case of a corporation which reports on the basis of a fiscal year, with-
in two and one-half months after the close  of  such  fiscal  year,  FOR
TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND
ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER  THE  CLOSE  OF
SUCH FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND SIXTEEN, and shall be paid as hereinafter provided.
  S  9. Subdivision 1 of section 211 of the tax law, as amended by chap-
ter 436 of the laws of 1974, the opening paragraph as amended by chapter
190 of the laws of 1990 and the second undesignated paragraph as amended
by chapter 542 of the laws of 1985, is amended to read as follows:
  1. Every taxpayer[, as well as every  foreign  corporation  having  an
employee, including any officer, within the state,] shall annually on or
before  March  fifteenth,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY
FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL  FIFTEENTH,
FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
SIXTEEN, transmit to the [tax commission] COMMISSIONER  a  report  in  a
form  prescribed  by  [it]  THE  COMMISSIONER (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, FOR
TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN,  AND
ON  OR  BEFORE  THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF
ITS FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY  FIRST,
TWO  THOUSAND  SIXTEEN,  and except, also, that a corporation which is a
DISC shall transmit its report on or before the  fifteenth  day  of  the
ninth month following the close of its calendar or fiscal year), setting
forth   such  information  as  the  [tax  commission]  COMMISSIONER  may
prescribe and every taxpayer which ceases to exercise its  franchise  or
to  be  subject to the tax imposed by this article shall transmit to the
[tax commission] COMMISSIONER a report on the date of such cessation  or
at  such  other  time  as  the [tax commission] COMMISSIONER may require
covering each year or period for which no report was theretofore  filed.
In  the case of a termination year of an S corporation, the S short year
and the C short year shall be treated as separate short  taxable  years,
provided, however, the due date of the report for the S short year shall
be  the  same  as the due date of the report for the C short year. Every
taxpayer shall also transmit such  other  reports  and  such  facts  and
information  as  the  [tax  commission]  COMMISSIONER may require in the
administration of this article.  The [tax commission]  COMMISSIONER  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
the preceding paragraph, such taxpayer files with the  [tax  commission]
COMMISSIONER  an application for extension in such form as [said commis-
sion] THE COMMISSIONER may prescribe by regulation and pays on or before
the date of such filing the amount properly estimated as its tax.
  S 10. Subdivision (a) of section 213-b of the tax law, as  amended  by
section  2  of part G-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
  (a) First installments for certain taxpayers.--In privilege periods of
twelve months ending at any  time  during  the  calendar  year  nineteen
hundred  seventy  and  thereafter,  every  taxpayer  subject  to the tax
imposed by section two hundred nine of this chapter must  pay  with  the
report  required to be filed for the preceding privilege period, or with
an application for extension of the time  for  filing  the  report,  FOR

S. 6409                            36                            A. 9009

TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND
MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIV-
ILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,
TWO  THOUSAND SIXTEEN, an amount equal to (i) twenty-five percent of the
preceding year's tax if the preceding year's tax exceeded  one  thousand
dollars  but  was equal to or less than one hundred thousand dollars, or
(ii) forty percent of the preceding year's tax if the  preceding  year's
tax  exceeded one hundred thousand dollars.  If the preceding year's tax
under section two hundred nine of this  chapter  exceeded  one  thousand
dollars  and  the  taxpayer  is  subject to the tax surcharge imposed by
section two hundred nine-B of this chapter, the taxpayer must  also  pay
with  the  tax  surcharge  report required to be filed for the preceding
privilege period, or with an application for extension of the  time  for
filing the report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND  SIXTEEN,  AND  MUST  PAY ON OR BEFORE THE FIFTEENTH DAY OF THE
THIRD MONTH OF SUCH PRIVILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i)  twen-
ty-five  percent  of the tax surcharge imposed for the preceding year if
the preceding year's tax was equal to or less than one hundred  thousand
dollars,  or  (ii)  forty  percent  of the tax surcharge imposed for the
preceding year if the preceding year's tax exceeded one hundred thousand
dollars.
  S 11. Subdivision (f) of section 213-b of the tax law, as  amended  by
chapter 613 of the laws of 1976, is amended to read as follows:
  (f)  The preceding year's tax defined.-- As used in this section, "the
preceding year's tax" means the tax imposed upon the taxpayer by section
two hundred nine of this chapter for the preceding  calendar  or  fiscal
year,  or,  for purposes of computing the first installment of estimated
tax when EITHER THE MANDATORY FIRST  INSTALLMENT  IS  PAID  PURSUANT  TO
SUBDIVISION  (A)  OF  THIS  SECTION OR 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 two hundred thirteen of  this  chapter  as  the  tax
imposed upon the taxpayer for such calendar or fiscal year.
  S  12. Paragraph 1 of subsection (c) of section 658 of the tax law, as
amended by chapter 760 of the laws  of  1992,  is  amended  to  read  as
follows:
  (1)  Partnerships.  Every  partnership  having  a  resident partner or
having any income derived from New York sources, determined  in  accord-
ance  with  the applicable rules of section six hundred thirty-one as in
the case of a nonresident individual, shall make a return for the  taxa-
ble year setting forth all items of income, gain, loss and deduction and
such  other pertinent information as the commissioner may by regulations
and instructions prescribe. Such return shall be filed on or before  the
fifteenth  day  of  the fourth month following the close of each taxable
year, FOR TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING
THE  CLOSE OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the due  date  for  the
return  of a partnership consisting entirely of nonresident aliens shall
be the date prescribed for the filing of its federal partnership  return
for  the  taxable  year.  For purposes of this paragraph, "taxable year"
means a year or a period which would be a taxable year of  the  partner-
ship if it were subject to tax under this article.

S. 6409                            37                            A. 9009

  S 13. Subparagraph (A) of paragraph 3 of subsection (c) of section 658
of  the tax law, as amended by section 18 of part U of chapter 61 of the
laws of 2011, is amended to read as follows:
  (A)  Every  subchapter  K  limited  liability  company,  every limited
liability company that is a disregarded entity for  federal  income  tax
purposes,  and  every  partnership which has any income derived from New
York sources, determined in accordance  with  the  applicable  rules  of
section  six  hundred  thirty-one  of  this  article as in the case of a
nonresident individual, shall[, within sixty days after the last day  of
the  taxable  year,]  ON  OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH
FOLLOWING THE CLOSE OF EACH TAXABLE YEAR make a payment of a filing fee.
The amount of the filing fee is the amount set forth in subparagraph (B)
of this paragraph. The minimum filing fee  is  twenty-five  dollars  for
taxable  years  beginning  in two thousand eight and thereafter. Limited
liability companies that are disregarded entities for federal income tax
purposes must pay a filing fee of twenty-five dollars for taxable  years
beginning on or after January first, two thousand eight.
  S 14. Subsection (i) of section 1087 of the tax law, as added by chap-
ter 188 of the laws of 1964, is amended to read as follows:
  (i)  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 article nine-a, [nine-b or nine-c,] or on the last
day prescribed in article nine for the filing of a final return for such
taxable year, or portion thereof, determined in all cases without regard
to any extension of time granted the taxpayer, FOR TAXABLE YEARS  BEGIN-
NING  BEFORE  JANUARY  FIRST, TWO THOUSAND SIXTEEN, AND ON THE FIFTEENTH
DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE  OF  THE  TAXABLE  YEAR  THE
INCOME  OF  WHICH  IS  THE BASIS FOR TAX UNDER ARTICLE NINE-A, OR ON THE
LAST DAY PRESCRIBED IN ARTICLE NINE FOR THE FILING OF A FINAL RETURN FOR
SUCH TAXABLE YEAR, OR PORTION THEREOF, DETERMINED IN ALL  CASES  WITHOUT
REGARD  TO ANY EXTENSION OF TIME GRANTED THE TAXPAYER, FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
  S 15. Paragraph 3 of subdivision (a) of section 1514 of the  tax  law,
as  amended  by section 89 of part A of chapter 389 of the laws of 1997,
is amended to read as follows:
  (3) Such amount or amounts described in paragraphs one and two of this
subdivision shall be paid with the return  required  to  be  filed  with
respect  to such tax or tax surcharge for such preceding taxable year or
with an application for extension of the time for  filing  such  return,
FOR  TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN,
AND SHALL BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD  MONTH  OF
EACH  TAXABLE  YEAR,  FOR  TAXABLE  YEARS  BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND SIXTEEN.
  S 16. Subdivision (f) of section 1514 of the tax law,  as  amended  by
section  26  of part H3 of chapter 62 of the laws of 2003, is amended to
read as follows:
  (f) The preceding year's tax defined. As used in  this  section,  "the
preceding year's tax" means, for taxpayers subject to tax under subdivi-
sion  (b)  of  section  fifteen  hundred  ten of this article, the taxes
imposed upon the taxpayer by sections fifteen hundred  one  and  fifteen
hundred ten of this article from the preceding taxable year or as other-
wise  determined  by  subdivision (b) of section fifteen hundred five of
this article, and for taxpayers subject to  tax  under  section  fifteen

S. 6409                            38                            A. 9009

hundred two-a of this article, the tax imposed upon the taxpayer by such
section  fifteen  hundred two-a of this article from the preceding year,
or for purposes of computing the first installment of estimated tax when
EITHER  THE  MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION
(A) OF THIS SECTION OR an application has been filed  for  extension  of
the  time  for filing the return required to be filed for such preceding
taxable year, the amount properly estimated pursuant to paragraph one of
subdivision (b) of section fifteen hundred sixteen of  this  article  as
the tax imposed upon the taxpayer for such taxable year.
  S  17.  Subdivision  (a)  of  section 1515 of the tax law, as added by
section 649 of the laws of 1974 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  (a) Every taxpayer and every other foreign and alien insurance  corpo-
ration  having  an  employee,  including  any  officer, in this state or
having an agent or representative in this state, shall annually,  on  or
before  the  fifteenth day of the third month following the close of its
taxable year, FOR TAXABLE YEARS  BEGINNING  BEFORE  JANUARY  FIRST,  TWO
THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH
FOLLOWING  THE CLOSE OF ITS TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON
OR AFTER JANUARY FIRST, TWO  THOUSAND  SIXTEEN,  transmit  to  the  [tax
commission]  COMMISSIONER  a  return  in  a  form prescribed by [it] THE
COMMISSIONER setting forth such  information  as  the  [tax  commission]
COMMISSIONER  may  prescribe and every taxpayer which ceases to exercise
its franchise or to be subject to the tax imposed by this article  shall
transmit  to  the  [tax commission] COMMISSIONER a return on the date of
such cessation or at such other time as the [tax commission] COMMISSION-
ER may require covering each year or period  for  which  no  return  was
theretofore filed. A copy of each return required under this subdivision
shall also be transmitted to the superintendent of financial services at
or  before  the  times  specified  for filing such returns with the [tax
commission] COMMISSIONER.
  S 18. Subdivisions (a) and (b) of section 11-514 of the administrative
code of the city of New York, subdivision (a) as amended by chapter  183
of the laws of 2009, are amended to read as follows:
  (a)  General.  [On  or  before  the  fifteenth day of the fourth month
following the close of a taxable year, an]  AN  unincorporated  business
income  tax  return  shall be made and filed, and the balance of any tax
shown on the face of such return, not previously paid as installments of
estimated tax, shall be paid, ON OR BEFORE  THE  FIFTEENTH  DAY  OF  THE
FOURTH  MONTH  FOLLOWING  THE  CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON  OR  BEFORE
THE  FIFTEENTH  DAY  OF THE THIRD MONTH FOLLOWING THE CLOSE OF A TAXABLE
YEAR FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
SIXTEEN:
  (1) by or for every unincorporated business, for taxable years  begin-
ning after nineteen hundred eighty-six but before nineteen hundred nine-
ty-seven,  having  unincorporated  business gross income, determined for
purposes of this subdivision without any deduction for the cost of goods
sold or services performed, of more than ten thousand dollars, or having
any amount of unincorporated business taxable income;
  (2) by or for every partnership, for  taxable  years  beginning  after
nineteen  hundred  ninety-six but before two thousand nine, having unin-
corporated business gross income, determined for purposes of this subdi-
vision without any deduction for the cost  of  goods  sold  or  services
performed, of more than twenty-five thousand dollars, or having unincor-
porated business taxable income of more than fifteen thousand dollars;

S. 6409                            39                            A. 9009

  (3)  by or for every unincorporated business other than a partnership,
for taxable years beginning after nineteen hundred ninety-six but before
two thousand nine, having unincorporated business gross  income,  deter-
mined  for  purposes  of  this subdivision without any deduction for the
cost  of  goods  sold  or  services performed, of more than seventy-five
thousand dollars, or having unincorporated business  taxable  income  of
more than thirty-five thousand dollars; and
  (4)  by or for every unincorporated business, for taxable years begin-
ning after two thousand  eight,  having  unincorporated  business  gross
income,   determined  for  purposes  of  this  subdivision  without  any
deduction for the cost of goods sold or services performed, of more than
ninety-five thousand dollars.
  (b) Decedents. The return for any deceased individual  shall  be  made
and filed by his or her executor, administrator, or other person charged
with his or her property. If a final return of a decedent is for a frac-
tional part of a year, the due date of such return shall be, FOR TAXABLE
YEARS   BEGINNING  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,  the
fifteenth day of the fourth month following the  close  of  the  twelve-
month  period  [which]  THAT began with the first day of such fractional
part of the year, AND, FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY
FIRST,  TWO  THOUSAND  SIXTEEN,  THE  FIFTEENTH  DAY  OF THE THIRD MONTH
FOLLOWING THE CLOSE OF THE TWELVE-MONTH PERIOD THAT BEGAN WITH THE FIRST
DAY OF SUCH FRACTIONAL PART OF THE YEAR.
  S 19. Subdivision (i) of section 11-527 of the administrative code  of
the city of New York is amended to read as follows:
  (i)  Prepaid  tax.  For  purposes of this section, any tax paid by the
taxpayer before the last day prescribed for its payment and  any  amount
paid by the taxpayer as estimated tax for a taxable year shall be deemed
to  have  been  paid by the taxpayer, FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND SIXTEEN, on the fifteenth day of the  fourth
month  following  the  close  of his or her taxable year with respect to
which such amount constitutes a credit  or  payment,  AND,  FOR  TAXABLE
YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON THE
FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF HIS OR HER TAXA-
BLE YEAR WITH RESPECT TO WHICH  SUCH  AMOUNT  CONSTITUTES  A  CREDIT  OR
PAYMENT.
  S 20. Paragraph (a) of subdivision 1 of section 11-653 of the adminis-
trative code of the city of New York, as added by section 1 of part D of
chapter 60 of the laws of 2015, is amended to read as follows:
  (a)  For  the privilege of doing business, or of employing capital, or
of owning or leasing property in the city in a  corporate  or  organized
capacity,  or  of maintaining an office 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 subdivision 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] THAT shall be filed, except as hereinafter provided, FOR TAXABLE
YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on or before
the fifteenth day of March next succeeding the close of each such CALEN-
DAR  year,  or,  in  the  case of a taxpayer [which] THAT reports on the
basis of a fiscal year, within two and one-half months after  the  close
of  EACH  such  fiscal year, AND FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND SIXTEEN, ON OR BEFORE THE FIFTEENTH  DAY  OF
APRIL  NEXT  SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR, IN THE
CASE OF A TAXPAYER THAT REPORTS ON THE BASIS OF A  FISCAL  YEAR,  WITHIN

S. 6409                            40                            A. 9009

THREE  AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR, and
shall be paid as hereinafter provided.
  S  21.  Subdivision  1 of section 11-655 of the administrative code of
the city of New York, as added by section 1 of part D of chapter  60  of
the laws of 2015, is amended to read as follows:
  1. Every corporation having an officer, agent or representative within
the city, shall, annually on or before March fifteenth FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR
BEFORE  APRIL  FIFTEENTH FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND SIXTEEN, 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]  EXCEPT  THAT  A  CORPORATION  THAT
REPORTS  ON  THE  BASIS OF A FISCAL YEAR SHALL TRANSMIT SUCH REPORT, FOR
TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,
WITHIN  TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR, AND,
FOR TAXABLE YEARS BEGINNING AFTER JANUARY FIRST, TWO  THOUSAND  SIXTEEN,
WITHIN  THREE  AND  ONE-HALF  MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR.
EVERY taxpayer [which] THAT 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
the preceding paragraph, 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.
  S  22.  Subdivision  1 of section 11-658 of the administrative code of
the city of New York, as added by section 1 of part D of chapter  60  of
the laws of 2015, is amended to read as follows:
  1. [Every] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND  SIXTEEN,  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 twen-
ty-five per centum of the preceding year's tax if such preceding  year's
tax  exceeded  one  thousand  dollars. FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, SUCH AMOUNT SHALL BE PAID  ON
OR  BEFORE  THE FIFTEENTH DAY OF MARCH NEXT SUCCEEDING THE CLOSE OF EACH
SUCH CALENDAR YEAR, OR, IN THE CASE OF A TAXPAYER THAT  REPORTS  ON  THE
BASIS  OF  A FISCAL YEAR, WITHIN TWO AND ONE-HALF MONTHS AFTER THE CLOSE
OF EACH SUCH FISCAL YEAR.
  S 23. Subdivision 6 of section 11-658 of the  administrative  code  of
the  city  of New York, as added by section 1 of part D of chapter 60 of
the laws of 2015, is amended to read as follows:
  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

S. 6409                            41                            A. 9009

preceding calendar or fiscal year, or, for  purposes  of  computing  the
first  installment  of  estimated  tax  when  EITHER THE MANDATORY FIRST
INSTALLMENT IS PAID PURSUANT TO SUBDIVISION ONE OF THIS  SECTION  OR  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.
  S  24.  This act shall take effect immediately provided, however, that
section five of this act shall take effect on the same date and  in  the
same  manner  as section 26 of part S of chapter 59 of the laws of 2014,
takes effect, and that section five of this act shall apply  to  taxable
years beginning on or after January 1, 2018 and that section thirteen of
this  act  shall apply to taxable years beginning on or after January 1,
2016.

                                 PART R

  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 SEVENTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED
NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR 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) ELEVEN THOUSAND SIX HUNDRED 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) EIGHTEEN AND THIRTEEN HUNDREDTHS PERCENT OF THE
EXCESS OF THE BUSINESS INCOME BASE OVER  THREE  HUNDRED  FIFTY  THOUSAND
DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS;
  S  2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
amended to read as follows:
  (39)  (A)  In  the  case  of  a  taxpayer who is a small business OR A
TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
SMALL BUSINESS, who OR WHICH has business income and/or farm  income  as
defined  in  the  laws  of the United States, an amount equal to [three]
FIFTEEN percent of the net items of income,  gain,  loss  and  deduction
attributable  to  such  business  or farm entering into federal adjusted
gross income, but not less than zero[, for taxable years beginning after
two thousand thirteen, an  amount  equal  to  three  and  three-quarters

S. 6409                            42                            A. 9009

percent  of  the net items of income, gain, loss and deduction attribut-
able to such business or  farm  entering  into  federal  adjusted  gross
income,  but  not  less than zero, for taxable years beginning after two
thousand  fourteen, and an amount equal to five percent of the net items
of income, gain, loss and deduction attributable  to  such  business  or
farm  entering  into  federal  adjusted  gross income, but not less than
zero, for taxable years beginning after two thousand fifteen].
  (B) (I) For the purposes of this paragraph, the  term  small  business
shall  mean:  (I) a sole proprietor [or a farm business] who employs one
or more persons during the taxable year and who has net business  income
or  net  farm income of less than two hundred fifty thousand dollars; OR
(II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S  CORPORATION
THAT  DURING  THE  TAXABLE  YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW
YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS  THAT  IS
GREATER  THAN  ZERO  BUT  LESS  THAN  ONE  MILLION FIVE HUNDRED THOUSAND
DOLLARS OR NET FARM INCOME ATTRIBUTABLE  TO  A  FARM  BUSINESS  THAT  IS
GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS.
  (II)  FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS
INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY  OR  A
PARTNERSHIP  NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B)
OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED  FIFTY-EIGHT
OF  THIS ARTICLE, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW
YORK RECEIPTS INCLUDED IN THE  NUMERATOR  OF  THE  APPORTIONMENT  FACTOR
DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA-
BLE YEAR.
  (C)  TO  QUALIFY FOR THIS MODIFICATION IN RELATION TO A SMALL BUSINESS
THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW  YORK  S  CORPO-
RATION,  THE  TAXPAYER'S  INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME
AND/OR NET FARM INCOME FROM ITS OWNERSHIP INTERESTS IN LIMITED LIABILITY
COMPANIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO
HUNDRED FIFTY THOUSAND DOLLARS.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.

                                 PART S

  Section 1. This act shall be known and may be cited as  the  "parental
choice in education act".
  S  2.  The education law is amended by adding a new article 25 to read
as follows:
                               ARTICLE 25
              EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT
SECTION 1209. SHORT TITLE.
        1210. DEFINITIONS.
        1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1212. APPLICATIONS  FOR  APPROVAL  TO  ISSUE   CERTIFICATES   OF
                RECEIPT.
        1213. APPLICATION APPROVAL FOR CERTIFICATES OF RECEIPT.
        1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1215. REPORTING AND RECORDKEEPING.
        1216. JOINT ANNUAL REPORT.
        1217. COMMISSIONER; POWERS.
  S  1209.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT".
  S 1210. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION,  THE  FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:

S. 6409                            43                            A. 9009

  1.  "AUTHORIZED  CONTRIBUTION"  MEANS  THE CONTRIBUTION AMOUNT THAT IS
LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAY-
ER.
  2.  "CONTRIBUTION"  MEANS  A  DONATION PAID BY CASH, CHECK, ELECTRONIC
FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD THAT IS  MADE  BY  A  TAXPAYER
DURING THE TAXABLE YEAR.
  3.  "EDUCATIONAL  PROGRAM"  MEANS  AN ACADEMIC OR SIMILAR PROGRAM OF A
PUBLIC SCHOOL THAT ENHANCES THE CURRICULUM OR ACADEMIC  PROGRAM  OF  THE
PUBLIC  SCHOOL,  OR  PROVIDES  A  PRE-KINDERGARTEN  PROGRAM  TO A PUBLIC
SCHOOL. FOR PURPOSES OF THIS  DEFINITION,  THE  INSTRUCTION,  MATERIALS,
PROGRAMS  AND  OTHER  ACTIVITIES  OFFERED  BY  OR THROUGH AN EDUCATIONAL
PROGRAM MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING FEATURES: (A)
INSTRUCTION OR MATERIALS PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMI-
LY AND CONSUMER SCIENCES; LITERARY, PERFORMING AND  VISUAL  ARTS;  MATH-
EMATICS,  SOCIAL  STUDIES,  TECHNOLOGY  AND  SCIENTIFIC ACHIEVEMENT; (B)
INSTRUCTION OR PROGRAMMING  TO  MEET  THE  EDUCATION  NEEDS  OF  AT-RISK
STUDENTS  OR  STUDENTS  WITH  DISABILITIES,  INCLUDING TUTORING OR COUN-
SELING; OR (C) THE USE OF SPECIALIZED INSTRUCTIONAL MATERIALS,  INSTRUC-
TORS OR INSTRUCTION NOT PROVIDED BY A PUBLIC SCHOOL.
  4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS AN ENTITY THAT:
  (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF
SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B) USES AT LEAST
NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALEN-
DAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING SUCH
YEAR FOR SCHOLARSHIPS; (C) PROVIDES MORE THAN FIFTY PERCENT OF ITS SCHO-
LARSHIPS  DURING  A  CALENDAR  YEAR  TO  ELIGIBLE PUPILS WHO RESIDE IN A
HOUSEHOLD THAT HAS AN INCOME NOT TO EXCEED ONE HUNDRED FIFTY PERCENT  OF
THE  INCOME  QUALIFICATION REQUIRED FOR THE REDUCED PRICE SCHOOL LUNCHES
UNDER THE NATIONAL SCHOOL LUNCH ACT, PROVIDED HOWEVER FOR  THE  PURPOSES
OF  AN EDUCATIONAL SCHOLARSHIP ORGANIZATION FULFILLING SUCH REQUIREMENT,
AN EDUCATIONAL SCHOLARSHIP ORGANIZATION MAY ENTER INTO AN AGREEMENT WITH
ANOTHER EDUCATIONAL SCHOLARSHIP ORGANIZATION OR ORGANIZATIONS TO JOINTLY
REPORT THEIR SCHOLARSHIP  INFORMATION  TO  MEET  SUCH  REQUIREMENT;  (D)
DEPOSITS  AND  HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM  THE  ORGAN-
IZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR
INCOME  ARE  WITHDRAWN  FOR  USE;  (E) PROVIDES SCHOLARSHIPS TO ELIGIBLE
PUPILS FOR USE AT NOT FEWER THAN THREE QUALIFIED  SCHOOLS;  AND  (F)  IS
APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  5.  "ELIGIBLE  PUPIL"  MEANS  A  CHILD  WHO IS: (A) A RESIDENT OF THIS
STATE; (B) OF SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE  OF  SECTION
THIRTY-TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR
BEFORE  DECEMBER  FIRST OF THE YEAR IN WHICH SUCH CHILD IS ENROLLED IN A
PRE-KINDERGARTEN PROGRAM; (C) ATTENDS OR IS ABOUT TO ATTEND A  QUALIFIED
SCHOOL; AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS
INCOME  OF TWO HUNDRED FIFTY THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER,
FOR HOUSEHOLDS WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME  LEVEL
SHALL  BE  INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD, NOT TO
EXCEED THREE HUNDRED THOUSAND DOLLARS.
  6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY THAT:  (A)  IS
EXEMPT  FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B)  IS  ESTABLISHED  FOR
THE  PURPOSE  OF  SUPPORTING AT LEAST ONE PUBLIC SCHOOL OR PUBLIC SCHOOL
DISTRICT LOCATED IN THIS STATE; (C) USES AT LEAST NINETY PERCENT OF  THE
QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY INCOME
DERIVED  FROM  QUALIFIED CONTRIBUTIONS DURING SUCH MONTHS TO SUPPORT THE

S. 6409                            44                            A. 9009

PUBLIC SCHOOL OR SCHOOLS OR PUBLIC SCHOOL  DISTRICT  OR  DISTRICTS  THAT
SUCH FUND HAS BEEN ESTABLISHED TO SUPPORT; (D) DEPOSITS AND HOLDS QUALI-
FIED  CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS
IN  AN ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS
UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE;  AND
(E)  IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTI-
CLE.
  7.  "NON-PUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM,  ELEMENTARY,  OR  SECONDARY  SECTARIAN  OR  NONSECTARIAN SCHOOL
LOCATED IN THIS  STATE,  OTHER  THAN  A  PUBLIC  SCHOOL,  THAT  PROVIDES
INSTRUCTION  AT ONE OR MORE LOCATIONS TO AN ELIGIBLE PUPIL IN ACCORDANCE
WITH SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
  8. "PUBLIC EDUCATION ENTITY" MEANS  A  PUBLIC  SCHOOL  DISTRICT  OR  A
PUBLIC  SCHOOL  IN THIS STATE, PROVIDED THAT SUCH PUBLIC SCHOOL DISTRICT
OR PUBLIC SCHOOL: (A) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY
INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN AN ACCOUNT  THAT  IS
SEPARATE FROM THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR
OTHER  FUNDS  UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN
FOR USE; AND (B) IS APPROVED TO  RECEIVE  AUTHORIZED  CONTRIBUTIONS  AND
ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  9.  "PUBLIC  SCHOOL"  MEANS ANY FREE ELEMENTARY OR SECONDARY SCHOOL IN
THIS STATE PURSUANT TO ARTICLE ELEVEN OF THE CONSTITUTION, BUT SHALL NOT
INCLUDE A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF  THIS  CHAP-
TER.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A  TAXPAYER  TO  A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL  SCHOLARSHIP  ORGANIZATION
LISTED  IN  THE  CONTRIBUTION  AUTHORIZATION  CERTIFICATE  ISSUED TO THE
TAXPAYER FOR WHICH THE TAXPAYER HAS RECEIVED A  CERTIFICATE  OF  RECEIPT
FROM  SUCH ENTITY, FUND OR ORGANIZATION. A CONTRIBUTION DOES NOT QUALIFY
IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN  ENTITY  OR
ORGANIZATION  FOR  THE  DIRECT  BENEFIT  OF  ANY PARTICULAR OR SPECIFIED
STUDENT.
  11. "QUALIFIED SCHOOL" MEANS A  PUBLIC  SCHOOL  OR  NON-PUBLIC  SCHOOL
LOCATED IN THIS STATE.
  12.  "SCHOLARSHIP"  MEANS  AN EDUCATIONAL SCHOLARSHIP OR TUITION GRANT
AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL IN  AN  AMOUNT
NOT  TO  EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL LESS ANY OTHER
EDUCATIONAL SCHOLARSHIP OR TUITION GRANT RECEIVED BY SUCH ELIGIBLE PUPIL
OR HIS OR HER PARENT, PARENTS, LEGAL GUARDIAN, OR  LEGAL  GUARDIANS  FOR
SUCH  ELIGIBLE  PUPIL'S  TUITION;  PROVIDED,  HOWEVER, IN THE CASE OF AN
ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL OF A  DISTRICT  OF  WHICH  SUCH
PUPIL  IS  NOT  A RESIDENT, THE AMOUNT OF THE EDUCATIONAL SCHOLARSHIP OR
TUITION GRANT AWARDED MAY NOT EXCEED THE TUITION CHARGED BY  THE  PUBLIC
SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION FOUR OF SECTION THIRTY-TWO
HUNDRED  TWO  OF  THIS CHAPTER, BUT ONLY IF THE SCHOOL DISTRICT OF WHICH
SUCH PUPIL IS A RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
  13. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS  A  NOT-FOR-PROFIT  ENTITY
THAT:  (A)  IS  EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE;  (B)  USES
AT  LEAST  NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING
THE CALENDAR YEAR AND ANY INCOME DERIVED  FROM  QUALIFIED  CONTRIBUTIONS
DURING  SUCH  MONTHS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
LOCATED IN THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER
BY MAKING CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR  PUBLIC  SCHOOL
DISTRICTS LOCATED IN THIS STATE OR PROVIDING EDUCATIONAL PROGRAMS TO, OR

S. 6409                            45                            A. 9009

IN  CONJUNCTION  WITH,  ONE  OR  MORE  PUBLIC  SCHOOLS  OR PUBLIC SCHOOL
DISTRICTS LOCATED IN  THIS  STATE;  (C)  DEPOSITS  AND  HOLDS  QUALIFIED
CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT  THAT  IS  SEPARATE  FROM  THE ORGANIZATION'S OPERATING OR OTHER
FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR  INCOME  ARE  WITHDRAWN  FOR
USE;  AND  (D)  IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO
THIS  ARTICLE.    SUCH  TERM  INCLUDES  A  PRE-KINDERGARTEN  PROGRAM  OR
NOT-FOR-PROFIT  ENTITY THAT ALLOWS THE TAXPAYER TO CHOOSE TO DONATE TO A
PROGRAM PROJECT OR INITIATIVE FOR USE IN A PUBLIC SCHOOL.
  S 1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1.  PUBLIC  SCHOOLS
AND  PUBLIC  SCHOOL  DISTRICTS.    ALL  PUBLIC SCHOOLS AND PUBLIC SCHOOL
DISTRICTS SHALL BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT FOR  QUALI-
FIED  CONTRIBUTIONS IN ACCORDANCE WITH SECTION FORTY-TWO OF THE TAX LAW,
PROVIDED, HOWEVER, THAT SUCH PUBLIC SCHOOL  OR  PUBLIC  SCHOOL  DISTRICT
SHALL NOT BE APPROVED IF EITHER: (A) SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL
DISTRICT  FAILS  TO  DEPOSIT  AND  HOLD  QUALIFIED CONTRIBUTIONS AND ANY
INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS  SEPA-
RATE FROM THE SCHOOL OR SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL
SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; OR (B) THE
COMMISSIONER  HAS REVOKED SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC
SCHOOL DISTRICT PURSUANT TO SECTION  TWELVE  HUNDRED  FOURTEEN  OF  THIS
ARTICLE.
  2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS  AND  LOCAL  EDUCATION  FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN  APPLICATION  PURSUANT  TO
SECTION  TWELVE  HUNDRED  TWELVE  OF THIS ARTICLE AND RECEIVING APPROVAL
PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
  S 1212. APPLICATIONS FOR APPROVAL TO ISSUE  CERTIFICATES  OF  RECEIPT.
EACH  SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE COMMIS-
SIONER FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT  IN  THE  FORM  AND
MANNER  PRESCRIBED  BY  THE COMMISSIONER, PROVIDED THAT SUCH APPLICATION
SHALL INCLUDE: (A) SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL IMPROVE-
MENT ORGANIZATION,  LOCAL  EDUCATION  FUND  OR  EDUCATIONAL  SCHOLARSHIP
ORGANIZATION  HAS  BEEN  GRANTED EXEMPTION FROM TAXATION UNDER PARAGRAPH
THREE OF SUBSECTION (C) OF SECTION FIVE  HUNDRED  ONE  OF  THE  INTERNAL
REVENUE  CODE;  (B)  A LIST OF NAMES AND ADDRESSES OF ALL MEMBERS OF THE
GOVERNING BOARD OF THE SCHOOL IMPROVEMENT ORGANIZATION, LOCAL  EDUCATION
FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION; AND (C) FOR AN EDUCATIONAL
SCHOLARSHIP  ORGANIZATION,  SUBMISSION  OF  CRITERIA FOR THE AWARDING OF
SCHOLARSHIPS TO ELIGIBLE STUDENTS.
  S 1213. APPLICATION APPROVAL FOR CERTIFICATES OF RECEIPT. 1. IN GENER-
AL. THE COMMISSIONER SHALL REVIEW EACH APPLICATION TO ISSUE CERTIFICATES
OF RECEIPT PURSUANT TO THIS  ARTICLE.  THE  COMMISSIONER  SHALL  PUBLISH
CRITERIA  USED  TO  DETERMINE SELECTION AND ESTABLISH AN APPEALS PROCESS
FOR APPLICATIONS THAT ARE NOT APPROVED.
  2. NOTIFICATION. APPLICANTS SHALL BE NOTIFIED  OF  THE  COMMISSIONER'S
DETERMINATION WITHIN FIVE BUSINESS DAYS OF THE DETERMINATION.
  S  1214.  REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
COMMISSIONER, IN CONSULTATION WITH  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE,  MAY  REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  LOCAL  EDUCATION  FUND,  PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
FINDING  THAT  SUCH  ORGANIZATION,  FUND,  SCHOOL OR SCHOOL DISTRICT HAS
VIOLATED THIS ARTICLE  OR  SECTION  FORTY-TWO  OF  THE  TAX  LAW.  THESE

S. 6409                            46                            A. 9009

VIOLATIONS  SHALL  INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING:
(A) FAILURE  TO  MEET  THE  REQUIREMENTS  OF  THIS  ARTICLE  OR  SECTION
FORTY-TWO  OF THE TAX LAW; (B) THE FAILURE TO MAINTAIN FULL AND ADEQUATE
RECORDS  WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS; (C) THE
FAILURE TO SUPPLY SUCH RECORDS TO THE COMMISSIONER, THE  DEPARTMENT,  OR
THE  DEPARTMENT OF TAXATION AND FINANCE WHEN REQUESTED; OR (D) THE FAIL-
URE TO PROVIDE NOTICE TO THE DEPARTMENT OF TAXATION AND FINANCE  OF  THE
ISSUANCE  OR NON-ISSUANCE OF CERTIFICATES OF RECEIPT PURSUANT TO SECTION
FORTY-TWO OF THE TAX LAW; PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL
NOT REVOKE APPROVAL PURSUANT TO THIS SECTION BASED UPON A  VIOLATION  OF
THE  TAX LAW UNLESS THE COMMISSIONER OF TAXATION AND FINANCE AGREES THAT
REVOCATION IS WARRANTED; AND  PROVIDED  FURTHER  THAT  THE  COMMISSIONER
SHALL  NOT  REVOKE APPROVAL PURSUANT TO THIS SECTION WHEN THE FAILURE TO
COMPLY IS DUE TO CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISRE-
GARD FOR THE LAW.   WITHIN  FIVE  DAYS  OF  THE  DETERMINATION  REVOKING
APPROVAL,  THE  COMMISSIONER  SHALL PROVIDE NOTICE OF SUCH REVOCATION TO
THE EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL  IMPROVEMENT  ORGANIZA-
TION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND
TO THE DEPARTMENT OF TAXATION AND FINANCE. THE COMMISSIONER SHALL ESTAB-
LISH AN APPEALS PROCESS FOR DETERMINATIONS REVOKING APPROVALS.
  S  1215.  REPORTING  AND RECORDKEEPING. 1. REPORTING. EACH EDUCATIONAL
SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL  EDUCA-
TION FUND, PUBLIC SCHOOL AND PUBLIC SCHOOL DISTRICT THAT RECEIVES QUALI-
FIED  CONTRIBUTIONS  SHALL REPORT TO THE COMMISSIONER AND THE DEPARTMENT
OF TAXATION AND FINANCE BY JANUARY THIRTY-FIRST OF EACH  CALENDAR  YEAR.
SUCH  REPORT  SHALL  BE IN THE FORM AND MANNER PRESCRIBED BY THE COMMIS-
SIONER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE.
  2. RECORDKEEPING. EACH EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  SCHOOL
IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND PUBLIC
SCHOOL  DISTRICT  THAT  ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT SHALL
MAINTAIN RECORDS INCLUDING: (A) NOTIFICATIONS RECEIVED FROM THE  DEPART-
MENT  OF  TAXATION AND FINANCE; (B) NOTIFICATIONS MADE TO THE DEPARTMENT
OF TAXATION AND FINANCE; (C) COPIES OF QUALIFIED CONTRIBUTIONS RECEIVED;
(D) COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIBUTIONS; (E) COPIES OF
ISSUED CERTIFICATES OF RECEIPT; (F) ANNUAL FINANCIAL STATEMENTS; (G)  IN
THE  CASE  OF  SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP
ORGANIZATIONS AND  LOCAL  EDUCATION  FUNDS,  THE  APPLICATION  SUBMITTED
PURSUANT  TO  SECTION  TWELVE  HUNDRED  TWELVE  OF  THIS ARTICLE AND THE
APPROVAL ISSUED BY THE  COMMISSIONER;  AND  (H)  ANY  OTHER  INFORMATION
PRESCRIBED  BY THE COMMISSIONER. SUCH RECORDS SHALL BE MAINTAINED BY THE
ENTITY OR ORGANIZATION FOR FIVE YEARS.
  S 1216. JOINT ANNUAL REPORT.  ON OR BEFORE THE LAST  DAY  OF  MAY  FOR
EACH  CALENDAR  YEAR,  THE  COMMISSIONER OF TAXATION AND FINANCE AND THE
COMMISSIONER, JOINTLY, SHALL SUBMIT A  WRITTEN  REPORT  AS  PROVIDED  IN
SUBDIVISION (K) OF SECTION FORTY-TWO OF THE TAX LAW.
  S  1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON AN
EMERGENCY BASIS REGULATIONS NECESSARY FOR  THE  IMPLEMENTATION  OF  THIS
SECTION.  THE  COMMISSIONER  SHALL  MAKE  ANY FORMS REQUIRED TO BE FILED
PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN  SIXTY  DAYS  OF
THE EFFECTIVE DATE OF THIS ARTICLE.
  S  3.  The  education law is amended by adding a new section 1503-a to
read as follows:
  S 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.  1.    THE
TRUSTEES  OR  BOARDS  OF  EDUCATION OF ALL SCHOOL DISTRICTS ORGANIZED BY
SPECIAL LAWS OR PURSUANT TO THE PROVISIONS OF A GENERAL LAW  ARE  HEREBY

S. 6409                            47                            A. 9009

AUTHORIZED  AND  EMPOWERED TO ACCEPT GIFTS, DONATIONS, AND CONTRIBUTIONS
TO THE DISTRICT AND TO SOLICIT THE SAME.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
GENERAL  OR  SPECIAL  LAW  TO  THE  CONTRARY, THE RECEIPT OF SUCH GIFTS,
DONATIONS AND CONTRIBUTIONS MADE PURSUANT TO ARTICLE TWENTY-FIVE OF THIS
CHAPTER, AND ANY INCOME DERIVED THEREFROM, SHALL BE DISREGARDED FOR  THE
PURPOSES  OF  ALL  APPORTIONMENTS,  COMPUTATIONS,  AND DETERMINATIONS OF
STATE AID.
  S 4. The tax law is amended by adding a new  section  42  to  read  as
follows:
  S  42.  EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. (A) DEFINITIONS.
FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
SAME MEANINGS AS PROVIDED IN SECTION TWELVE HUNDRED TEN OF THE EDUCATION
LAW:  "AUTHORIZED  CONTRIBUTION", "CONTRIBUTION", "EDUCATIONAL PROGRAM",
"EDUCATIONAL SCHOLARSHIP ORGANIZATION", "ELIGIBLE PUPIL", "LOCAL  EDUCA-
TION  FUND",  "NON-PUBLIC  SCHOOL",  "PUBLIC  EDUCATION ENTITY", "PUBLIC
SCHOOL", "QUALIFIED CONTRIBUTION",  "QUALIFIED  SCHOOL",  "SCHOLARSHIP",
AND "SCHOOL IMPROVEMENT ORGANIZATION".
  (B)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SUBJECT TO TAX UNDER ARTICLE
NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED AN EDUCATION SCHO-
LARSHIP AND PROGRAM  TAX  CREDIT  AGAINST  SUCH  TAX,  PURSUANT  TO  THE
PROVISIONS  REFERENCED  IN SUBDIVISION (1) OF THIS SECTION, WITH RESPECT
TO QUALIFIED CONTRIBUTIONS MADE DURING THE TAXABLE YEAR.
  (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE THE LESSER  OF
SEVENTY-FIVE PER CENT OF THE TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS OR
ONE  MILLION  DOLLARS.  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR
SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE  CAP  IMPOSED  BY  THE
PRECEDING  SENTENCE  SHALL  BE  APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS  OR  SHAREHOLDERS  OF  EACH
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED ONE MILLION DOLLARS.
  (D)  INFORMATION TO   BE POSTED ON THE DEPARTMENT'S WEBSITE. BEGINNING
ON THE SIXTEENTH DAY OF JANUARY OF EACH  YEAR,  THE  COMMISSIONER  SHALL
MAINTAIN  ON  THE  DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE AMOUNT OF
AVAILABLE CREDIT FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO THIS SECTION.
ADDITIONALLY,  THE  COMMISSIONER  SHALL  MAINTAIN  ON  THE  DEPARTMENT'S
WEBSITE  A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
FUNDS  AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
LAW.  THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A
LIST OF PUBLIC EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,
LOCAL  EDUCATION  FUNDS  AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS WHOSE
APPROVAL TO ISSUE CERTIFICATES OF RECEIPT HAS BEEN REVOKED,  ALONG  WITH
THE DATE OF SUCH REVOCATION.
  (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING  A  CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION, THE TAXPAYER SHALL APPLY TO  THE  DEPARTMENT  FOR  A  CONTRIBUTION
AUTHORIZATION  CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL
BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.  THE  DEPARTMENT
MAY  ALLOW  TAXPAYERS  TO  MAKE  MULTIPLE APPLICATIONS ON THE SAME FORM,
PROVIDED THAT EACH CONTRIBUTION LISTED  ON  SUCH  APPLICATION  SHALL  BE
TREATED  AS  A  SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE
SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH  APPLICA-
TION.
  (F)  CONTRIBUTION  AUTHORIZATION  CERTIFICATES. 1. ISSUANCE OF CERTIF-
ICATES. THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION  CERTIF-

S. 6409                            48                            A. 9009

ICATES  IN  TWO  PHASES.  IN PHASE ONE, WHICH BEGINS ON THE FIRST DAY OF
JANUARY AND ENDS ON THE FIFTEENTH DAY OF JANUARY, THE COMMISSIONER SHALL
ACCEPT APPLICATIONS FOR  CONTRIBUTION  AUTHORIZATION  CERTIFICATES,  BUT
SHALL  NOT  ISSUE  ANY SUCH CERTIFICATES. COMMENCING AFTER THE SIXTEENTH
DAY OF JANUARY, THE COMMISSIONER SHALL ISSUE CONTRIBUTION  AUTHORIZATION
CERTIFICATES  FOR  APPLICATIONS RECEIVED DURING PHASE ONE, PROVIDED THAT
IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR WHICH APPLICATIONS  HAVE
BEEN  RECEIVED  DURING PHASE ONE EXCEEDS THE AMOUNT OF THE CREDIT CAP IN
SUBDIVISION (H) OF THIS SECTION, PHASE ONE OF THE APPLICATIONS SHALL  BE
ALLOCATED  IN TWO STEPS. IN STEP ONE, THE CREDIT CAP SHALL BE DIVIDED BY
THE NUMBER OF APPLICATIONS TO DETERMINE A BASE ALLOCATION. EACH APPLICA-
TION REQUESTING THE BASE ALLOCATION OR LESS SHALL BE APPROVED.  IN  STEP
TWO,  THE  REMAINING  FUNDS  SHALL BE CALCULATED AND ALLOCATED AMONG THE
OTHER APPLICATIONS ON A DOLLAR PRO RATA BASIS.  IF THE CREDIT CAP IS NOT
EXCEEDED, PHASE TWO COMMENCES ON JANUARY SIXTEENTH AND ENDS ON  NOVEMBER
FIRST,  DURING  WHICH  PERIOD  THE COMMISSIONER SHALL ISSUE CONTRIBUTION
AUTHORIZATION CERTIFICATES ON A FIRST-COME FIRST-SERVED BASIS BASED UPON
THE DATE THE DEPARTMENT RECEIVED THE  TAXPAYER'S  APPLICATION  FOR  SUCH
CERTIFICATE;  PROVIDED,  HOWEVER,  THAT  IF  ON  ANY  DAY THE DEPARTMENT
RECEIVES APPLICATIONS REQUESTING CONTRIBUTION AUTHORIZATION CERTIFICATES
FOR CONTRIBUTIONS THAT IN THE AGGREGATE EXCEED THE AMOUNT OF THE REMAIN-
ING AVAILABLE CREDIT ON SUCH DAY,  THE  AUTHORIZED  CONTRIBUTION  AMOUNT
LISTED  IN  EACH  CONTRIBUTION  AUTHORIZATION  CERTIFICATE  SHALL BE THE
TAXPAYER'S  PRO-RATA  SHARE  OF  THE  REMAINING  AVAILABLE  CREDIT.  FOR
PURPOSES  OF DETERMINING A TAXPAYER'S PRO-RATA SHARE OF REMAINING AVAIL-
ABLE CREDIT, THE COMMISSIONER SHALL MULTIPLY  THE  AMOUNT  OF  REMAINING
AVAILABLE  CREDIT BY A FRACTION, THE NUMERATOR OF WHICH EQUALS THE TOTAL
CONTRIBUTION AMOUNT LISTED ON THE TAXPAYER'S APPLICATION AND THE DENOMI-
NATOR OF WHICH EQUALS THE AGGREGATE AMOUNT OF  CONTRIBUTIONS  LISTED  ON
THE APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES RECEIVED ON
SUCH  DAY.    CONTRIBUTION  AUTHORIZATION  CERTIFICATES FOR APPLICATIONS
RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN THE FIFTH DAY OF
FEBRUARY.   CONTRIBUTION  AUTHORIZATION  CERTIFICATES  FOR  APPLICATIONS
RECEIVED  DURING PHASE TWO SHALL BE MAILED WITHIN TWENTY DAYS OF RECEIPT
OF SUCH APPLICATIONS. PROVIDED, HOWEVER, THAT NO  CONTRIBUTION  AUTHORI-
ZATION  CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE
ISSUED UNTIL ALL OF  THE  CONTRIBUTION  AUTHORIZATION  CERTIFICATES  FOR
APPLICATIONS RECEIVED DURING PHASE ONE HAVE BEEN ISSUED.
  2.  CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION
AUTHORIZATION CERTIFICATE SHALL STATE: (I) THE DATE  SUCH  CERTIFICATION
WAS ISSUED; (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN
THE  CERTIFICATE  MUST  BE  MADE,  WHICH SHALL BE NO LATER THAN NOVEMBER
THIRTIETH OF THE YEAR FOR WHICH THE CONTRIBUTION  AUTHORIZATION  CERTIF-
ICATE WAS ISSUED; (III) THE TAXPAYER'S NAME AND ADDRESS; (IV) THE AMOUNT
OF  AUTHORIZED CONTRIBUTIONS; (V) THE CONTRIBUTION AUTHORIZATION CERTIF-
ICATE'S CERTIFICATE NUMBER; (VI) THE NAME  AND  ADDRESS  OF  THE  PUBLIC
EDUCATION  ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND
OR EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR WHICH THE TAXPAYER MAY  MAKE
THE  AUTHORIZED  CONTRIBUTION;  AND (VII) ANY OTHER INFORMATION THAT THE
COMMISSIONER DEEMS NECESSARY.
  3. NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
CERTIFICATE.  UPON ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIFICATE,
THE COMMISSIONER SHALL NOTIFY THE EDUCATIONAL SCHOLARSHIP  ORGANIZATION,
PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION OR LOCAL EDUCA-
TION  FUND OF THE ISSUANCE OF THE CONTRIBUTION AUTHORIZATION CERTIFICATE
TO A TAXPAYER. SUCH NOTIFICATION SHALL INCLUDE: (I) THE TAXPAYER'S  NAME

S. 6409                            49                            A. 9009

AND  ADDRESS;  (II) THE DATE SUCH CERTIFICATE WAS ISSUED; (III) THE DATE
BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE NOTIFICATION MUST  BE
MADE  BY  THE  TAXPAYER; (IV) THE AMOUNT OF THE AUTHORIZED CONTRIBUTION;
(V)  CONTRIBUTION AUTHORIZATION CERTIFICATE; AND (VI) ANY OTHER INFORMA-
TION THAT THE COMMISSIONER DEEMS NECESSARY.
  (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION  SHALL  ISSUE A CERTIFICATE OF RECEIPT FOR ANY
CONTRIBUTION MADE BY A TAXPAYER UNLESS  SUCH  PUBLIC  EDUCATION  ENTITY,
SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION HAS BEEN  APPROVED  TO  ISSUE  CERTIFICATES  OF
RECEIPT  PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC
EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL  ISSUE  A  CERTIFICATE  OF
RECEIPT  FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA-
TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE
DEPARTMENT THAT THE DEPARTMENT ISSUED A CREDIT AUTHORIZATION CERTIFICATE
TO THE TAXPAYER FOR SUCH CONTRIBUTION.
  2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,  LOCAL
EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
AUTHORIZATION  CERTIFICATE ISSUED TO THE TAXPAYER NO LATER THAN THE DATE
BY WHICH SUCH AUTHORIZED CONTRIBUTION  IS  REQUIRED  TO  BE  MADE,  SUCH
PUBLIC  EDUCATION  ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN  THIRTY
DAYS  OF RECEIPT OF THE AUTHORIZED CONTRIBUTION, ISSUE TO THE TAXPAYER A
WRITTEN CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE  TAXPAYER
CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE AMOUNT LISTED ON THE TAXPAY-
ER'S  CONTRIBUTION  AUTHORIZATION CERTIFICATE, THE TAXPAYER SHALL NOT BE
ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.
  3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT  SHALL
STATE:  (I) THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION; (II) THE TAXPAYER'S NAME  AND  ADDRESS;  (III)
THE DATE FOR EACH CONTRIBUTION; (IV) THE AMOUNT OF EACH CONTRIBUTION AND
THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER; (V) THE
TOTAL  AMOUNT  OF CONTRIBUTIONS; AND (VI) ANY OTHER INFORMATION THAT THE
COMMISSIONER DEEMS NECESSARY.
  4. NOTIFICATION TO THE DEPARTMENT OF THE ISSUANCE OF A CERTIFICATE  OF
RECEIPT.  UPON  THE  ISSUANCE  OF  A CERTIFICATE OF RECEIPT, THE ISSUING
PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,  LOCAL  EDUCA-
TION  FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY
DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT  WITH
NOTIFICATION  OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER
PRESCRIBED BY THE DEPARTMENT.
  5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL  IMPROVEMENT  ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
THIS  SECTION  REGARDING  THE  ISSUANCE  OF A CONTRIBUTION AUTHORIZATION
CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS  OF  THE  EXPIRATION
DATE  FOR  SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION TO THE
DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,

S. 6409                            50                            A. 9009

LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE
FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
  6.  FAILURE  TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF DISCOVERY
OF THE FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGAN-
IZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION
TO  COMPLY  WITH  THE NOTIFICATION REQUIREMENTS PRESCRIBED BY PARAGRAPHS
FOUR AND/OR FIVE OF THIS SUBDIVISION, THE  COMMISSIONER  SHALL  ISSUE  A
NOTICE  OF  COMPLIANCE FAILURE TO SUCH ENTITY, PROGRAM FUND OR ORGANIZA-
TION. SUCH ENTITY, PROGRAM FUND OR ORGANIZATION SHALL HAVE  THIRTY  DAYS
FROM  THE  DATE  OF  SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY
PARAGRAPHS FOUR AND/OR FIVE OF THIS  SUBDIVISION.  SUCH  PERIOD  MAY  BE
EXTENDED  FOR  AN ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY,
PROGRAM FUND OR ORGANIZATION. UPON THE  EXPIRATION  OF  THE  PERIOD  FOR
COMPLIANCE  SET  FORTH  IN  THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE
COMMISSIONER SHALL NOTIFY THE COMMISSIONER OF EDUCATION THAT SUCH  ENTI-
TY,  PROGRAM  FUND  OR  ORGANIZATION  FAILED  TO  MAKE THE NOTIFICATIONS
PRESCRIBED BY PARAGRAPHS FOUR AND/OR FIVE OF THIS SUBDIVISION.
  (H) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
AVAILABLE  ANNUALLY  FOR  CALENDAR  YEAR  TWO THOUSAND SEVENTEEN AND ALL
FOLLOWING YEARS TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS  TO  PUBLIC
EDUCATION  ENTITIES,  SCHOOL IMPROVEMENT ORGANIZATIONS, AND LOCAL EDUCA-
TION FUNDS SHALL BE TWENTY MILLION DOLLARS. THE MAXIMUM PERMITTED  CRED-
ITS UNDER THIS SECTION AVAILABLE ANNUALLY FOR CALENDAR YEAR TWO THOUSAND
SEVENTEEN  AND  ALL  FOLLOWING  YEARS  TO  ALL  TAXPAYERS  FOR QUALIFIED
CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATIONS  SHALL  BE  FIFTY
MILLION DOLLARS.
  (I) ADDITIONS TO THE CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT. ANY
AMOUNTS  FOR  WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE
OF A CERTIFICATE OF RECEIPT SHALL BE ADDED  TO  THE  CAP  PRESCRIBED  IN
SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
  (J)  OTHER  REQUIREMENTS; MISCELLANEOUS. RECORD KEEPING. EACH TAXPAYER
SHALL, FOR EACH TAXABLE YEAR FOR WHICH  THE  EDUCATION  SCHOLARSHIP  AND
PROGRAM  TAX  CREDIT PROVIDE FOR UNDER THIS SECTION IS CLAIMED, MAINTAIN
RECORDS OF THE FOLLOWING  INFORMATION:  (I)  CONTRIBUTION  AUTHORIZATION
CERTIFICATES  OBTAINED  PURSUANT TO SUBDIVISION (F) OF THIS SECTION, AND
(II) CERTIFICATES OF RECEIPT OBTAINED PURSUANT  TO  SUBDIVISION  (G)  OF
THIS SECTION.
  (K)  JOINT  ANNUAL  REPORT.  ON OR BEFORE THE LAST DAY OF MAY FOR EACH
CALENDAR YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER  AND
THE  COMMISSIONER  OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT TO
THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF  THE
ASSEMBLY,  THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN
OF THE ASSEMBLY WAYS AND MEANS  COMMITTEE  REGARDING  THE  CREDIT.  SUCH
REPORT  SHALL  CONTAIN INFORMATION FOR ARTICLES NINE-A AND TWENTY-TWO OF
THIS CHAPTER, RESPECTIVELY, REGARDING: (I) THE  NUMBER  OF  APPLICATIONS
RECEIVED;  (II)  THE  NUMBER  OF AND AGGREGATE VALUE OF THE CONTRIBUTION
AUTHORIZATION CERTIFICATES ISSUED FOR CONTRIBUTIONS TO PUBLIC  EDUCATION
ENTITIES,  SCHOOL  IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND
EDUCATIONAL SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY (III) THE  GEOGRAPH-
ICAL DISTRIBUTION BY COUNTY, TO THE EXTENT FEASIBLE, OF (A) THE APPLICA-
TIONS  FOR  CONTRIBUTION  AUTHORIZATION CERTIFICATES, AND (B) THE PUBLIC
EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION
FUNDS,  AND  EDUCATIONAL  SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED
CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING
GEOGRAPHICAL DISTRIBUTION BY COUNTY, TO  THE  EXTENT  FEASIBLE,  OF  THE
NUMBER  OF  ELIGIBLE  PUPILS  THAT  RECEIVED SCHOLARSHIPS, THE NUMBER OF

S. 6409                            51                            A. 9009

QUALIFIED SCHOOLS ATTENDED BY ELIGIBLE PUPILS THAT RECEIVED SUCH  SCHOL-
ARSHIPS, AND THE AVERAGE VALUE OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE
PUPILS.  THE COMMISSIONER AND DESIGNATED EMPLOYEES OF THE DEPARTMENT AND
THE COMMISSIONER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE DEPARTMENT
OF  EDUCATION  SHALL  BE  ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE
INFORMATION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCA-
TION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS  THAT  APPLIED  FOR
APPROVAL  TO  BE  AUTHORIZED TO RECEIVE QUALIFIED CONTRIBUTIONS; AND THE
PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO
ISSUE  CERTIFICATES  OF  RECEIPT,  INCLUDING INFORMATION CONTAINED IN OR
DERIVED FROM APPLICATION FORMS AND REPORTS SUBMITTED TO  THE  DEPARTMENT
OF EDUCATION OR THE COMMISSIONER OF EDUCATION.
  (1)  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 51; AND
  2. ARTICLE 22: SECTION 606, SUBSECTION (CCC).
  S 5. Paragraph (b) of subdivision 9 of section 208 of the tax  law  is
amended by adding a new subparagraph 22 to read as follows:
  (22)  THE AMOUNT OF ANY FEDERAL DEDUCTION FOR CHARITABLE CONTRIBUTIONS
ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL  REVENUE  CODE
TO  THE  EXTENT  SUCH  CONTRIBUTIONS ARE USED AS THE BASIS OF THE CALCU-
LATION OF THE EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT ALLOWED UNDER
SUBDIVISION FIFTY-ONE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE.
  S 6. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 51 to read as follows:
  51.  EDUCATION  SCHOLARSHIP  AND  PROGRAM TAX CREDIT. (A) ALLOWANCE OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION FORTY-TWO OF THIS CHAPTER, 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 THAT YEAR TO  LESS
THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. IF THE AMOUNT OF CREDIT  ALLOW-
ABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX ON THE FIXED DOLLAR MINIMUM
AMOUNT,  ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE
CARRIED OVER TO THE FOLLOWING YEAR OR YEARS FOR UP TO FIVE YEARS AND MAY
BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 7. 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) EDUCATION SCHOLARSHIP          AMOUNT OF CREDIT UNDER
AND PROGRAM TAX CREDIT UNDER         SUBDIVISION FIFTY-ONE OF SECTION
SUBSECTION (CCC)                     TWO HUNDRED TEN-B
  S 8. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC) EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. ALLOWANCE OF CRED-
IT.  A  TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER  THIS  SUBSECTION  FOR  ANY
TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
ALLOWED FOR A TAXABLE  YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR
YEARS FOR UP TO FIVE YEARS AND MAY BE DEDUCTED FROM THE  TAXPAYER'S  TAX
FOR SUCH YEAR OR YEARS.

S. 6409                            52                            A. 9009

  S 9. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 9 to read as follows:
  (9)  WITH RESPECT TO A TAXPAYER WHO HAS CLAIMED THE EDUCATION SCHOLAR-
SHIP AND PROGRAM TAX CREDIT  FOR  QUALIFIED  CONTRIBUTIONS  PURSUANT  TO
SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, THE TAXPAY-
ER'S  NEW  YORK  ITEMIZED  DEDUCTION  SHALL BE REDUCED BY ANY CHARITABLE
CONTRIBUTION DEDUCTION ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF  THE
INTERNAL REVENUE CODE WITH RESPECT TO SUCH QUALIFIED CONTRIBUTIONS.
  S 10. Section 606 of the tax law is amended by adding a new subsection
(v) to read a follows:
  (V)  INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. (1) A TAXPAYER SHALL
BE ALLOWED A CREDIT, NOT TO EXCEED TWO HUNDRED DOLLARS, THAT IS EQUAL TO
THE AMOUNT PAID BY THE TAXPAYER DURING THE  TAXABLE  YEAR  FOR  INSTRUC-
TIONAL  MATERIALS  AND SUPPLIES WITH RESPECT TO CLASSROOM BASED INSTRUC-
TION IN A PUBLIC OR NON-PUBLIC ELEMENTARY OR SECONDARY  SCHOOL  IN  THIS
STATE, INCLUDING A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THE
EDUCATION  LAW,  PROVIDED,  HOWEVER,  THE  TAXPAYER MUST BE A TEACHER OR
INSTRUCTOR AT SUCH SCHOOL FOR AT LEAST NINE  HUNDRED  HOURS  DURING  THE
TAXABLE  YEAR.  FOR PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND
SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE  DESIGNATED
FOR CLASSROOM USE.
  (2)  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.
  (3) THE MAXIMUM AMOUNT OF CREDIT THAT SHALL BE ALLOWED ANNUALLY  UNDER
THIS SUBSECTION SHALL BE TEN MILLION DOLLARS. IN ORDER TO CLAIM A CREDIT
UNDER  THIS  SUBSECTION,  A  TAXPAYER  SHALL BE REQUIRED TO APPLY TO THE
DEPARTMENT FOR APPROVAL DURING THE TAXABLE YEAR. THE TAXPAYER  SHALL  BE
REQUIRED  TO  SUBMIT  DOCUMENTATION DEMONSTRATING THAT THE TAXPAYER IS A
TEACHER OR INSTRUCTOR AS REQUIRED UNDER THIS  SUBSECTION  AND  THAT  THE
TAXPAYER  PURCHASED  MATERIALS AND SUPPLIES. THE DEPARTMENT SHALL REVIEW
THE APPLICATION AND PROVIDE A TAXPAYER WITH A CERTIFICATE THAT SPECIFIES
HOW MUCH CREDIT THE TAXPAYER IS ENTITLED TO CLAIM. IF  REQUIRED  BY  THE
COMMISSIONER,  THE TAXPAYER MUST SUBMIT THAT CERTIFICATE WITH HIS OR HER
TAX RETURN. THE COMMISSIONER SHALL ALLOCATE THE CREDITS ON A FIRST  COME
FIRST  SERVED BASIS AND PRESCRIBE THE NECESSARY PROCEDURES FOR REVIEWING
THE APPLICATIONS AND PRODUCING THE CERTIFICATES.
  S 11. Subsection (b) of section 612 of  the  tax  law  is  amended  by
adding a new paragraph 43 to read as follows:
  (43)  THE  AMOUNT  OF  ANY  FEDERAL  DEDUCTION FOR CERTAIN EXPENSES OF
ELIGIBLE EDUCATORS PURSUANT TO SUBPARAGRAPH  (D)  OF  PARAGRAPH  TWO  OF
SUBSECTION  (A) OF SECTION SIXTY-TWO OF THE INTERNAL REVENUE CODE TO THE
EXTENT SUCH EXPENSES ARE USED AS THE BASIS OF  THE  CALCULATION  OF  THE
CREDIT  ALLOWED  UNDER SUBSECTION (V) OF SECTION SIX HUNDRED SIX OF THIS
ARTICLE.
  S 12. Section 606 of the tax law is amended by adding a new subsection
(w) to read as follows:
  (W) FAMILY CHOICE EDUCATION CREDIT. (1) GENERAL. A  RESIDENT  TAXPAYER
SHALL  BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH FOUR
OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR  QUALI-
FIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS CREDIT:

S. 6409                            53                            A. 9009

  (A)  THE  TERM  "ELIGIBLE  STUDENT"  SHALL  MEAN  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.
  (B)  THE  TERM  "QUALIFIED  PRIMARY  OR  SECONDARY  EDUCATION  TUITION
EXPENSES" SHALL MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR  ATTEND-
ANCE  OF  AN ELIGIBLE STUDENT AT A PUBLIC SCHOOL OR A NON-PUBLIC SCHOOL,
AS DEFINED IN SECTION FORTY-TWO OF THIS  CHAPTER.    PROVIDED,  HOWEVER,
TUITION  PAYMENTS  MADE  PURSUANT  TO THE RECEIPT OF ANY SCHOLARSHIPS OR
FINANCIAL AID SHALL BE EXCLUDED FROM THE DEFINITION OF "QUALIFIED PRIMA-
RY OR SECONDARY EDUCATION TUITION EXPENSES".
  (3) ELIGIBILITY. TO BE ELIGIBLE FOR THIS CREDIT, THE NEW YORK ADJUSTED
GROSS INCOME OF THE TAXPAYER FOR THE TAXABLE YEAR, OR IN THE CASE  OF  A
MARRIED COUPLE FILING A JOINT RETURN, THE NEW YORK ADJUSTED GROSS INCOME
OF  THE  MARRIED COUPLE FOR THE TAXABLE YEAR, MAY NOT EXCEED SIXTY THOU-
SAND DOLLARS.
  (4) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL  TO  THE
LESSER OF FIVE HUNDRED DOLLARS PER ELIGIBLE STUDENT OR THE ACTUAL AMOUNT
OF QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES PAID BY THE
TAXPAYER PER ELIGIBLE STUDENT DURING THE TAXABLE YEAR.
  (5)  REFUNDABILITY.  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 CREDIT-
ED 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  13.  Severability.  If any provision of this act or the application
thereof to any person or circumstances is held invalid, such  invalidity
shall  not  affect other provisions or applications of the act which can
be given effect without the invalid provision  or  application,  and  to
this end the provisions of this act are declared to be severable.
  S  14. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2017.

                                 PART T

  Section 1. The tax law is amended by adding a  new  section  187-t  to
read as follows:
  S  187-T. NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT
OPERATES A MOTOR VEHICLE ON THE NEW YORK STATE  THRUWAY,  AND  PAYS  NEW
YORK  STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A
CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY SECTIONS ONE
HUNDRED EIGHTY-THREE AND ONE HUNDRED EIGHTY-FOUR  OF  THIS  ARTICLE  FOR
TAXABLE  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN
BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. IN NO EVENT  SHALL  THE
CREDIT  UNDER  THIS SECTION BE ALLOWED IN AN AMOUNT THAT WILL REDUCE THE
TAX TO LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED
EIGHTY-THREE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT  ALLOWED
UNDER  THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,
ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE  CARRIED
FORWARD  TO  THE  FOLLOWING  YEAR  OR YEARS AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (2) FOR PURPOSES OF THIS  SECTION,  THE  FOLLOWING  DEFINITIONS  SHALL
APPLY:
  (A)  "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW:

S. 6409                            54                            A. 9009

  (B) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT  ISSUED
BY  AN  AUTHORIZED  ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S
NAME.
  (C)  "E-ZPASS  COMMERCIAL  ACCOUNT"  MEANS A POST-PAID E-ZPASS ACCOUNT
ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR  COMMERCIAL  ENTER-
PRISE'S NAME.
  (3)(A)  THE  CREDIT  FOR  A  TAXPAYER  HOLDING  AN E-ZPASS BUSINESS OR
COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN  AN  AMOUNT  EQUAL  TO  FIFTY
PERCENT  OF  THE  SUM  OF  ALL  NEW YORK STATE THRUWAY TOLLS PAID BY THE
TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING  THE  TAXABLE  YEAR.
TO  QUALIFY  FOR  THE  CREDIT,  THE  TAXPAYER MUST HAVE PAID ONE HUNDRED
DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT  OR
ACCOUNTS  DURING  THE  TAXABLE  YEAR.  A TAXPAYER THAT PAYS TEN THOUSAND
DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSI-
NESS OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES  NOT
QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR.
  (B)  IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT
OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS  PAID
BY  THE  TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE
AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM  AMOUNTS  OF
NEW  YORK STATE THRUWAY TOLLS REFERENCED IN PARAGRAPH (A) OF THIS SUBDI-
VISION.
  (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT  OF  ANY
CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED
THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI-
TY  AUTHORIZED  TO  ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND
UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE.
  S 2. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 49 to read as follows:
  49. NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (A) A TAXPAYER THAT OPER-
ATES  A  MOTOR  VEHICLE, OR A FARM VEHICLE IN CONNECTION WITH FARM OPER-
ATIONS, ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK  STATE  THRUWAY
TOLLS  THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS HEREIN-
AFTER PROVIDED, AGAINST THE TAX IMPOSED  BY  THIS  ARTICLE  FOR  TAXABLE
YEARS  BEGINNING  ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND SIXTEEN BUT
BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. 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  SUBDI-
VISION  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, 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 SHALL BE CARRIED FORWARD TO THE FOLLOW-
ING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX  FOR  SUCH
YEAR OR YEARS.
  (B)  FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL
APPLY:
  (1) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE  HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW.
  (2) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT
RATING  OF  NOT  MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS OWNED BY A
PERSON PRIMARILY ENGAGED IN PRODUCTION BY MEANS  OF  (I)  THE  PLANTING,
CULTIVATION  AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD PRODUCTS
OF THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY  STOCK,
ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED-
ING  AND  CARE  OF LIVESTOCK, BEES, AND POULTRY, OR (III) DAIRY FARMING.

S. 6409                            55                            A. 9009

SUCH FARM VEHICLE SHALL BE PRINCIPALLY USED FOR  THE  TRANSPORTATION  OF
AGRICULTURAL  OR  DAIRY  COMMODITIES OR SUPPLIES, OR USED IN CONJUNCTION
WITH LUMBERING OPERATIONS CONNECTED WITH  BUT  ONLY  INCIDENTAL  TO  THE
OPERATION OF A FARM.
  (3)  "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED
BY AN AUTHORIZED ENTITY IN A CORPORATION'S  OR  COMMERCIAL  ENTERPRISE'S
NAME.
  (4)  "E-ZPASS  COMMERCIAL  ACCOUNT"  MEANS A POST-PAID E-ZPASS ACCOUNT
ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR  COMMERCIAL  ENTER-
PRISE'S NAME.
  (C)(1)  THE  CREDIT  FOR  A  TAXPAYER  HOLDING  AN E-ZPASS BUSINESS OR
COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE IN  AN  AMOUNT  EQUAL  TO  FIFTY
PERCENT  OF  THE  SUM  OF  ALL  NEW YORK STATE THRUWAY TOLLS PAID BY THE
TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO
QUALIFY FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED  DOLLARS
OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS
DURING  THE  TAXABLE  YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR
MORE IN NEW YORK STATE THRUWAY TOLLS  THROUGH  AN  E-ZPASS  BUSINESS  OR
COMMERCIAL  ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY
FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR.
  (2) THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE  AND
HOLDING  AN  E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE
IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE SUM  OF  ALL  NEW  YORK
STATE  THRUWAY  TOLLS  PAID  BY  THE TAXPAYER THROUGH SUCH AN ACCOUNT OR
ACCOUNTS DURING THE TAXABLE YEAR FOR THAT  FARM  VEHICLE,  PROVIDED  THE
QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH
FARM OPERATIONS.
  (3)  A  TAXPAYER MAY CLAIM THE CREDIT PROVIDED FOR IN SUBPARAGRAPH ONE
OR TWO OF THIS PARAGRAPH IN A TAXABLE YEAR BUT MAY NOT  CLAIM  A  CREDIT
UNDER BOTH SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH IN THE SAME TAXA-
BLE YEAR.
  (4)  IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT
OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS  PAID
BY  THE  TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE
AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM  AMOUNTS  OF
NEW  YORK  STATE  THRUWAY  TOLLS  REFERENCED IN SUBPARAGRAPH ONE OF THIS
PARAGRAPH.
  (D) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT  OF  ANY
CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED
THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI-
TY  AUTHORIZED  TO  ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND
UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  NEW  YORK  STATE  THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT
OPERATES A MOTOR VEHICLE, OR A FARM  VEHICLE  IN  CONNECTION  WITH  FARM
OPERATIONS, ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRU-
WAY  TOLLS  THROUGH  AN  E-ZPASS  ACCOUNT, SHALL BE ALLOWED A CREDIT, AS
HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR  TAXA-
BLE  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN BUT
BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. IF  THE  AMOUNT  OF  CREDIT
ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAY-
ER'S  TAX  FOR  SUCH  YEAR,  ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.

S. 6409                            56                            A. 9009

  (2) FOR PURPOSES OF THIS  SECTION,  THE  FOLLOWING  DEFINITIONS  SHALL
APPLY:
  (A)  "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW.
  (B) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT
RATING OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS  OWNED  BY  A
PERSON  PRIMARILY  ENGAGED  IN  PRODUCTION BY MEANS OF (I) THE PLANTING,
CULTIVATION AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD  PRODUCTS
OF  THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY STOCK,
ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED-
ING AND CARE OF LIVESTOCK, BEES, AND POULTRY, OR  (III)  DAIRY  FARMING.
SUCH  FARM  VEHICLE  SHALL BE PRINCIPALLY USED FOR THE TRANSPORTATION OF
AGRICULTURAL OR DAIRY COMMODITIES OR SUPPLIES, OR  USED  IN  CONJUNCTION
WITH  LUMBERING  OPERATIONS  CONNECTED  WITH  BUT ONLY INCIDENTAL TO THE
OPERATION OF A FARM.
  (C) "E-ZPASS INDIVIDUAL  ACCOUNT"  MEANS  A  PREPAID  E-ZPASS  ACCOUNT
ISSUED BY AN AUTHORIZED ENTITY IN AN INDIVIDUAL'S NAME.
  (D)  "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT ISSUED
BY AN AUTHORIZED ENTITY IN A CORPORATION'S  OR  COMMERCIAL  ENTERPRISE'S
NAME.
  (E)  "E-ZPASS  COMMERCIAL  ACCOUNT"  MEANS A POST-PAID E-ZPASS ACCOUNT
ISSUED BY AN AUTHORIZED ENTITY IN A CORPORATION'S OR  COMMERCIAL  ENTER-
PRISE'S NAME.
  (3)(A) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS INDIVIDUAL ACCOUNT
OR  ACCOUNTS  SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE SUM OF
ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER  THROUGH  SUCH  AN
ACCOUNT  OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE CREDIT,
THE TAXPAYER MUST HAVE PAID AT LEAST FIFTY DOLLARS  IN  NEW  YORK  STATE
THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR.
  (B)  THE  CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS OR COMMER-
CIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF
THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH
SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR  THE
CREDIT,  THE  TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE IN NEW
YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT  OR  ACCOUNTS  DURING  THE
TAXABLE  YEAR.  A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE IN NEW
YORK STATE THRUWAY TOLLS  THROUGH  AN  E-ZPASS  BUSINESS  OR  COMMERCIAL
ACCOUNT  OR  ACCOUNTS  DURING  THE TAXABLE YEAR DOES NOT QUALIFY FOR THE
CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR.
  (C) THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE  AND
HOLDING  AN  E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS SHALL BE
IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE SUM  OF  ALL  NEW  YORK
STATE  THRUWAY  TOLLS  PAID  BY  THE TAXPAYER THROUGH SUCH AN ACCOUNT OR
ACCOUNTS DURING THE TAXABLE YEAR FOR THAT  FARM  VEHICLE,  PROVIDED  THE
QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH
FARM OPERATIONS.
  (D)  A TAXPAYER MAY CLAIM THE CREDIT PROVIDED FOR IN SUBPARAGRAPH (A),
(B) OR (C) OF THIS PARAGRAPH IN A TAXABLE YEAR BUT MAY NOT CLAIM A CRED-
IT UNDER MORE THAN ONE SUBPARAGRAPH OF THIS PARAGRAPH IN THE SAME  TAXA-
BLE YEAR.
  (E)  IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT
OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS  PAID
BY  THE  TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE
AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM  AMOUNTS  OF
NEW  YORK STATE THRUWAY TOLLS REFERENCED IN SUBPARAGRAPHS (A) AND (B) OF
THIS PARAGRAPH.

S. 6409                            57                            A. 9009

  (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT  OF  ANY
CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED
THROUGH  E-ZPASS  TOLL  RECEIPTS  RECORDS  CREATED AND MAINTAINED BY THE
ENTITY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND  MADE  AVAILABLE  TO,
AND  UPON  REQUEST  BY,  THE DEPARTMENT OF TAXATION AND FINANCE FOR THIS
PURPOSE.
  S 4. 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) NEW YORK STATE                 AMOUNT OF CREDIT UNDER
THRUWAY TOLLS TAX CREDIT             SUBDIVISION FORTY-NINE OF
UNDER SUBSECTION (CCC)               SECTION TWO HUNDRED TEN-B
  S 5. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (dd) to read as follows:
  (DD)  NEW  YORK  STATE  THRUWAY  TOLLS TAX CREDIT. (1) A TAXPAYER THAT
OPERATES A MOTOR VEHICLE ON THE NEW YORK STATE  THRUWAY,  AND  PAYS  NEW
YORK  STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A
CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE
FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN  BUT  BEFORE  JANUARY  FIRST,  TWO THOUSAND NINETEEN. 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
FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS  ARTICLE,
OR  TWO  HUNDRED  FIFTY DOLLARS IF SECTION FIFTEEN HUNDRED TWO-A OF THIS
ARTICLE IS APPLICABLE. 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 THAT TAXABLE YEAR  SHALL  BE
CARRIED  FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (2) FOR PURPOSES OF THIS  SECTION,  THE  FOLLOWING  DEFINITIONS  SHALL
APPLY.
  (A)  "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW.
  (B) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT  ISSUED
BY  AN  AUTHORIZED  ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S
NAME.
  (C) "E-ZPASS COMMERCIAL ACCOUNT" MEANS  A  POST-PAID  E-ZPASS  ACCOUNT
ISSUED  BY  AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER-
PRISE'S NAME.
  (3) (A) THE CREDIT FOR A  TAXPAYER  HOLDING  AN  E-ZPASS  BUSINESS  OR
COMMERCIAL  ACCOUNT  OR  ACCOUNTS  SHALL  BE IN AN AMOUNT EQUAL TO FIFTY
PERCENT OF THE SUM OF ALL NEW YORK  STATE  THRUWAY  TOLLS  PAID  BY  THE
TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO
QUALIFY  FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS
OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS
DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN  THOUSAND  DOLLARS  OR
MORE  IN  NEW  YORK  STATE  THRUWAY TOLLS THROUGH AN E-ZPASS BUSINESS OR
COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT  QUALIFY
FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR.
  (B)  IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT
OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS  PAID
BY  THE  TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE
AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM  AMOUNTS  OF
NEW  YORK  STATE  THRUWAY  TOLLS  REFERENCED IN SUBPARAGRAPH (A) OF THIS
PARAGRAPH.

S. 6409                            58                            A. 9009

  (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT  OF  ANY
CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED
THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI-
TY  AUTHORIZED  TO  ISSUE THE E-ZPASS ACCOUNT AND MADE AVAILABLE TO, AND
UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE.
  S  6.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 22 to read as follows:
  (22) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU-
LATION OF ANY CREDIT ALLOWED UNDER SUBDIVISION FORTY-NINE OF SECTION TWO
HUNDRED TEN-B OF THIS ARTICLE.
  S 7. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 43 to read as follows:
  (43) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU-
LATION OF ANY CREDIT ALLOWED  UNDER  SUBSECTION  (CCC)  OF  SECTION  SIX
HUNDRED SIX OF THIS ARTICLE.
  S  8. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (W) to read as follows:
  (W) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE  CALCU-
LATION  OF  ANY CREDIT ALLOWED UNDER SUBDIVISION (DD) OF SECTION FIFTEEN
HUNDRED ELEVEN OF THIS ARTICLE.
  S 9. This act shall take effect immediately.

                                 PART U

  Section 1. Section 19 of Part W-1 of chapter 109 of the laws  of  2006
amending  the  tax  law and other laws relating to providing exemptions,
reimbursements and credits from various taxes  for  certain  alternative
fuels,  as  amended  by section 1 of part V of chapter 59 of the laws of
2014, is amended to read as follows:
  S 19. This act shall take effect immediately; provided, however,  that
sections one through thirteen of this act shall take effect September 1,
2006  and  shall be deemed repealed on September 1, [2016] 2021 and such
repeal shall  apply  in  accordance  with  the  applicable  transitional
provisions  of sections 1106 and 1217 of the tax law, and shall apply to
sales made, fuel compounded or manufactured, and uses  occurring  on  or
after  such  date,  and with respect to sections seven through eleven of
this act, in  accordance  with  applicable  transitional  provisions  of
sections  1106  and  1217  of  the  tax law; provided, however, that the
commissioner of taxation and finance shall be authorized  on  and  after
the  date  this act shall have become a law to adopt and amend any rules
or regulations  and  to  take  any  steps  necessary  to  implement  the
provisions  of this act; provided further that sections fourteen through
sixteen of this act shall take effect immediately  and  shall  apply  to
taxable years beginning on or after January 1, 2006.
  S 2. This act shall take effect immediately.

                                 PART V

  Section  1.  Section 37 of the tax law, as added by chapter 109 of the
laws of 2012, subdivision (c) as amended by section  52  of  part  A  of
chapter 59 of the laws of 2014, is amended to read as follows:
  S  37.  [Beer]  ALCOHOLIC  BEVERAGE  production credit. (a) General. A
taxpayer subject to tax under article nine-A or twenty-two of this chap-
ter, that is registered as a distributor under article eighteen of  this
chapter,  and  that  produces  sixty million or fewer gallons of beer OR
CIDER, TWENTY MILLION OR FEWER GALLONS OF WINE, OR EIGHT  HUNDRED  THOU-

S. 6409                            59                            A. 9009

SAND OR FEWER GALLONS OF LIQUOR in this state in the taxable year, shall
be allowed a credit against such taxes in the amount specified in subdi-
vision  (b) of this section and pursuant to the provisions referenced in
subdivision (c) of this section. Provided, however, that no credit shall
be  allowed  for  any  beer, CIDER, WINE OR LIQUOR produced in excess of
fifteen million five hundred thousand gallons in the  taxable  year.  If
the  taxpayer is a partner in a partnership or shareholder of a New York
S corporation, then the cap imposed by the preceding sentence  shall  be
applied at the entity level, so that the aggregate credit allowed to all
the  partners  or  shareholders  of each such entity in the taxable year
does not exceed that cap.
  (b) The amount of the credit per taxpayer per  taxable  year  (or  pro
rata  share  of  earned  credit  in  the case of a partnership) for each
gallon of beer, CIDER, WINE OR LIQUOR produced  in  this  state  [on  or
after April first, two thousand twelve] shall be determined as follows:
  (1)  for  the first five hundred thousand gallons of beer, CIDER, WINE
OR LIQUOR produced in this state in the taxable year, the  credit  shall
equal fourteen cents per gallon; and
  (2)  for  each  gallon of beer, CIDER, WINE OR LIQUOR produced in this
state in the taxable year in excess of five  hundred  thousand  gallons,
the credit shall equal four and one-half cents per gallon.
  (c)  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 39.
  (2) Article 22: Section 606, subsections (i) and (uu).
  S 2. Subdivision 39 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:
  39. [Beer] ALCOHOLIC BEVERAGE production credit.  A taxpayer shall  be
allowed  a credit, to be computed as provided in section thirty-seven of
this chapter, against the tax imposed by this article. In no event shall
the credit allowed under this subdivision for any  taxable  year  reduce
the  tax  due  for such year to less than the amount prescribed in para-
graph (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 or if the taxpayer otherwise
pays  tax based on the fixed dollar minimum amount, any amount of credit
thus not deductible in such taxable year shall be treated as an overpay-
ment 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. Subdivision 3 of section 420 of the tax law, as amended by chap-
ter 94 of the laws of 1934, is amended to read as follows:
  3. "Alcoholic beverages" mean and include CIDERS, AS  DEFINED  BY  THE
ALCOHOLIC BEVERAGE CONTROL LAW, beers, wines or liquors.
  S 4. Section 424 of the tax law is amended by adding a new subdivision
6 to read as follows:
  6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THERE SHALL BE
EXEMPT  FROM  THE  TAXES IMPOSED UNDER THIS ARTICLE, ALCOHOLIC BEVERAGES
FURNISHED BY A LICENSED PRODUCER OF ALCOHOLIC BEVERAGES AT NO CHARGE  TO
A  CUSTOMER OR PROSPECTIVE CUSTOMER AT A TASTING HELD IN ACCORDANCE WITH
THE ALCOHOLIC BEVERAGE CONTROL LAW FOR CONSUMPTION AT SUCH TASTING.
  S 5. Clause (xxxiv) 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:

S. 6409                            60                            A. 9009

(xxxiv) [Beer] ALCOHOLIC BEVERAGE    Amount of credit
production credit under              under subdivision thirty-nine of
subsection (uu)                      section two hundred ten-B
  S  6. Subsection (uu) of section 606 of the tax law, as added by chap-
ter 109 of the laws of 2012, is amended to read as follows:
  (uu) [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall  be
allowed  a credit, to be computed as provided in section thirty-seven of
this chapter, against the tax imposed by this article. 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  7.  Subdivision  13  of  section  1118  of the tax law, as added by
section 2 of part U of chapter 59 of the laws of  2015,  is  amended  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] PRODUCER OF ALCOHOLIC BEVERAGES  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 customer or prospective customer at such
tasting for consumption at such tasting; and (ii) bottles,  corks,  caps
and labels used to package such alcoholic beverages.
  S  8. This act shall take effect immediately, provided, however, that:
sections one, two, five and six of this act shall apply to taxable years
beginning on or after January 1, 2016; sections three and four  of  this
act  shall apply to taxable periods beginning on or after April 1, 2016;
and section seven of this act shall apply to uses occurring on and after
June 1, 2016.

                                 PART W

  Section 1. The tax law is amended by adding a  new  section  478-a  to
read as follows:
  S  478-A.  JEOPARDY ASSESSMENTS. IF THE COMMISSIONER BELIEVES THAT THE
COLLECTION OF ANY TAX WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY DETER-
MINE THE AMOUNT OF SUCH TAX AND  ASSESS  THE  SAME,  TOGETHER  WITH  ALL
INTEREST AND PENALTIES PROVIDED BY LAW, AGAINST ANY PERSON LIABLE THERE-
FOR  PRIOR TO THE FILING OF HIS OR HER RETURN AND PRIOR TO THE DATE WHEN
HIS OR HER RETURN IS REQUIRED TO BE  FILED.  THE  AMOUNT  SO  DETERMINED
SHALL  BECOME  DUE AND PAYABLE TO THE COMMISSIONER BY THE PERSON AGAINST
WHOM SUCH A JEOPARDY ASSESSMENT IS MADE, AS SOON AS  NOTICE  THEREOF  IS
GIVEN   TO   HIM   OR  HER.  THE  PROVISIONS  OF  SECTION  FOUR  HUNDRED
SEVENTY-EIGHT OF THIS ARTICLE SHALL  APPLY  TO  ANY  SUCH  DETERMINATION
EXCEPT  TO  THE EXTENT THAT THEY MAY BE INCONSISTENT WITH THE PROVISIONS
OF THIS SECTION. THE COMMISSIONER MAY ABATE ANY JEOPARDY  ASSESSMENT  IF
HE  OR  SHE  FINDS  THAT  JEOPARDY DOES NOT EXIST. THE COLLECTION OF ANY
JEOPARDY ASSESSMENT MAY BE STAYED BY FILING WITH THE COMMISSIONER A BOND
ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE
AND APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO  SOLVENCY
AND RESPONSIBILITY, OR SUCH OTHER SECURITY ACCEPTABLE TO THE COMMISSION-
ER,  CONDITIONED UPON PAYMENT OF THE AMOUNT ASSESSED AND INTEREST THERE-
ON, OR ANY LESSER AMOUNT TO WHICH SUCH ASSESSMENT MAY BE REDUCED BY  THE
ADMINISTRATIVE  LAW JUDGE OR THE TAX APPEALS TRIBUNAL OR BY A PROCEEDING
UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW  AND  RULES  AS

S. 6409                            61                            A. 9009

PROVIDED  IN  SECTION  FOUR  HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, SUCH
PAYMENT TO BE MADE WHEN THE ASSESSMENT OR  ANY  SUCH  REDUCTION  THEREOF
BECOMES FINAL AND NOT SUBJECT TO FURTHER REVIEW. IF SUCH A BOND IS FILED
AND  THEREAFTER  A  PROCEEDING  UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL
PRACTICE LAW AND RULES IS COMMENCED AS PROVIDED IN SECTION FOUR  HUNDRED
SEVENTY-EIGHT  OF  THIS  ARTICLE,  DEPOSIT  OF  THE TAXES, PENALTIES AND
INTEREST ASSESSED SHALL NOT BE REQUIRED AS A CONDITION PRECEDENT TO  THE
COMMENCEMENT  OF  SUCH  PROCEEDING. WHERE A JEOPARDY ASSESSMENT IS MADE,
ANY PROPERTY SEIZED FOR THE COLLECTION OF THE TAX SHALL NOT BE SOLD: (1)
UNTIL EXPIRATION OF THE TIME TO APPLY  FOR  A  HEARING  AS  PROVIDED  IN
SECTION  FOUR  HUNDRED  SEVENTY-EIGHT  OF  THIS ARTICLE, AND (2) IF SUCH
APPLICATION IS TIMELY FILED, UNTIL THE EXPIRATION OF THE TIME TO FILE AN
EXCEPTION TO THE DETERMINATION OF THE ADMINISTRATIVE LAW JUDGE OR, IF AN
EXCEPTION IS TIMELY FILED, UNTIL  FOUR  MONTHS  AFTER  THE  TAX  APPEALS
TRIBUNAL HAS GIVEN NOTICE OF ITS DECISION TO THE PERSON AGAINST WHOM THE
ASSESSMENT  IS MADE; PROVIDED, HOWEVER, SUCH PROPERTY MAY BE SOLD AT ANY
TIME IF SUCH PERSON HAS FAILED TO ATTEND A HEARING OF WHICH  HE  OR  SHE
HAS  BEEN DULY NOTIFIED, OR IF HE OR SHE CONSENTS TO THE SALE, OR IF THE
COMMISSIONER DETERMINES THAT THE EXPENSES OF  CONSERVATION  AND  MAINTE-
NANCE  WILL  GREATLY  REDUCE  THE  NET  PROCEEDS,  OR IF THE PROPERTY IS
PERISHABLE.
  S 2. This act shall take effect immediately.

                                 PART X

  Section 1. Paragraph 2 of subdivision (e) of section 1105 of  the  tax
law,  as  amended  by  section  1 of part Q of chapter 59 of the laws of
2012, is amended to read as follows:
  (2) Except as provided in subdivision (r) of  section  eleven  hundred
eleven  of this part, when occupancy is provided, for a single consider-
ation, with property, services, amusement charges, or any  other  items,
the separate sale of which is not subject to tax under this article, AND
THE  RENT  PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN
SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE,  the
entire consideration shall be treated as rent subject to tax under para-
graph  one of this subdivision; provided, however, that where the amount
of the rent for occupancy is stated separately from the  price  of  such
property,  services,  amusement  charges,  or  other items, on any sales
slip, invoice, receipt, or other statement given the occupant, and  such
rent  is reasonable in relation to the value of such property, services,
amusement charges or other items, only such separately stated rent  will
be subject to tax under paragraph one of this subdivision.
  S  2.  Section 1115 of the tax law is amended by adding a new subdivi-
sion (kk) to read as follows:
  (KK) RENT PAID BY A ROOM REMARKETER TO AN OPERATOR THAT IS NOT A  ROOM
REMARKETER  FOR AN OCCUPANCY THAT THE ROOM REMARKETER INTENDS TO PROVIDE
TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE HOTEL UNIT FEE  IMPOSED
BY  SECTION  ELEVEN  HUNDRED FOUR OF THIS ARTICLE AND THE TAX IMPOSED BY
SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE, PROVIDED
THAT SUCH ROOM REMARKETER FURNISHES SUCH OPERATOR A CERTIFICATE IN  SUCH
FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMIS-
SIONER. THE EXEMPTION CERTIFICATE PROVIDED FOR BY THIS SUBDIVISION SHALL
BE  ADMINISTERED  BY  THE  COMMISSIONER IN CONFORMITY WITH THE RULES FOR
EXEMPTION OR RESALE CERTIFICATES IN SUBPARAGRAPH (I) OF PARAGRAPH ONE OF
SUBDIVISION (C) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE.

S. 6409                            62                            A. 9009

  S 3. Paragraph 4 of subdivision a of section 11-2502 of  the  adminis-
trative  code of the city of New York, as amended by section 4 of part Q
of chapter 59 of the laws of 2012, is amended to read as follows:
  (4)  (i)  When occupancy is provided, for a single consideration, with
property, services, amusement charges, or any other items, the  separate
sale  of  which  is  not subject to tax under this chapter, AND THE RENT
PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION  IN  SUBDIVI-
SION  1  OF  THIS  SECTION, the entire consideration shall be treated as
rent subject to tax under paragraph one of this  subdivision;  provided,
however, that where the amount of the rent for occupancy is stated sepa-
rately  from  the price of such property, services, amusement charges or
other items on any sales slip,  invoice,  receipt,  or  other  statement
given  the occupant and such rent is reasonable in relation to the value
of such property, services, amusement charges, or other items, only such
separately stated rent will be subject to tax under this subdivision.
  (ii) In regard to the collection of tax on occupancies by remarketers,
when occupancy is provided, for a single consideration,  with  property,
services,  amusement  charges,  or  any other items, whether or not such
other items are taxable, the rent portion of the consideration for  such
sale  shall be computed as follows: the total consideration for the sale
multiplied by a fraction, the numerator of which shall be the  consider-
ation  paid  to the hotel for the occupancy and the denominator of which
shall be the consideration paid to the hotel for the occupancy plus  the
consideration paid to the providers of the other items being sold, or by
any  other  reasonable  method  pursuant  to  which  the rent portion of
consideration would be no less than the computation of rent  portion  of
consideration  under subparagraph (i) of this paragraph.  Nothing herein
shall be construed to subject to tax or exempt from tax any  service  or
property  or amusement charge or other items otherwise subject to tax or
exempt from tax under this chapter.
  S 4. Section 11-2502 of the administrative code of  the  city  of  New
York is amended by adding a new subdivision 1 to read as follows:
  1.  AN  OCCUPANCY  THAT  AN  OPERATOR  CONVEYS  OR FURNISHES TO A ROOM
REMARKETER THAT THE  ROOM  REMARKETER  INTENDS  TO  CONVEY  OR  FURNISH,
DIRECTLY OR INDIRECTLY, TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE
TAXES  IMPOSED  BY  THIS  SECTION,  PROVIDED  THAT  SUCH ROOM REMARKETER
FURNISHES THE OPERATOR WITH A CERTIFICATE IN SUCH  FORM  AND  CONTAINING
SUCH  INFORMATION  AS  MAY BE PRESCRIBED BY THE COMMISSIONER OF FINANCE.
THE OPERATOR SHALL RETAIN SUCH STATEMENT AND PROVIDE IT TO  THE  COMMIS-
SIONER OF FINANCE UPON REQUEST.
  S 5. This act shall take effect immediately and apply to rent paid for
occupancies on or after June 1, 2016.

                                 PART Y

  Section  1.  The  section  heading of section 951-a of the tax law, as
added by chapter 190 of the laws of 1990, is amended to read as follows:
  [Definitions] GENERAL PROVISIONS AND DEFINITIONS.
  S 2. Section 951-a  of  the  tax  law  is  amended  by  adding  a  new
subsection (f) to read as follows:
  (F)  TAX  TREATMENT  OF CHARITABLE CONTRIBUTIONS FOR DETERMINING DOMI-
CILE.   NOTWITHSTANDING ANY OTHER PROVISION OF  ANY  OTHER  LAW  TO  THE
CONTRARY,  THE  MAKING  OF  A  FINANCIAL  CONTRIBUTION,  GIFT,  BEQUEST,
DONATION OR ANY OTHER FINANCIAL INSTRUMENT OR PLEDGE IN  ANY  AMOUNT  OR
THE  DONATION  OR  LOAN OF ANY OBJECT OF ANY VALUE, OR THE VOLUNTEERING,
GIVING OR DONATION OF UNCOMPENSATED TIME,  OR  ANY  COMBINATION  OF  THE

S. 6409                            63                            A. 9009

FOREGOING,  CONSIDERED A CHARITABLE CONTRIBUTION UNDER SUBSECTION (C) OF
SECTION ONE HUNDRED SEVENTY OF  THE  INTERNAL  REVENUE  CODE,  OR  TO  A
NOT-FOR-PROFIT  ORGANIZATION, AS DEFINED IN SUBDIVISION SEVEN OF SECTION
ONE  HUNDRED  SEVENTY-NINE-Q OF THE STATE FINANCE LAW, SHALL NOT BE USED
IN ANY MANNER TO DETERMINE WHERE AN INDIVIDUAL IS DOMICILED AT THE  TIME
OF HIS OR HER DEATH.
  S 3. This act shall take effect immediately.

                                 PART Z

  Section  1. Subdivision 2 of section 89-b of the state finance law, as
amended by chapter 56 of the  laws  of  1993,  is  amended  to  read  as
follows:
  2.  The dedicated highway and bridge trust fund shall consist of [two]
THREE accounts: (a) the special obligation reserve and payment  account;
[and]  (b)  the highway and bridge capital account; AND (C) THE AVIATION
PURPOSE ACCOUNT. Moneys in each account shall be kept separate  and  not
commingled with any other moneys in the custody of the comptroller.
  S  2. Section 89-b of the state finance law is amended by adding a new
subdivision 4-a to read as follows:
  4-A. (A) THE AVIATION PURPOSE ACCOUNT  SHALL  CONSIST  OF  ALL  MONEYS
REQUIRED  TO BE DEPOSITED BY SECTION THREE HUNDRED TWELVE OF THE TAX LAW
AND ANY OTHER MONEYS CREDITED OR  TRANSFERRED  THERETO  FROM  ANY  OTHER
FUND, ACCOUNT OR SOURCE.
  (B)  MONEYS  IN  THE  AVIATION  PURPOSE  ACCOUNT SHALL BE UTILIZED FOR
AIRPORTS AND AVIATION FACILITIES AND  EQUIPMENT  AND  RELATED  PROJECTS,
INCLUDING  BUT  NOT  LIMITED  TO  THE  ACQUISITION  OF  REAL OR TANGIBLE
PERSONAL PROPERTY, CONSTRUCTION, RECONSTRUCTION, RECONDITIONING, PRESER-
VATION, MAINTENANCE OR IMPROVEMENT OF AIRPORT OR AVIATION CAPITAL FACIL-
ITIES AND NOISE MITIGATION PROJECTS, AND ANY OTHER PURPOSE NOT PROHIBIT-
ED BY FEDERAL LAW.
  S 3. Section 312 of the tax law, as amended by section 32 of part K of
chapter 61 of the laws of 2011, is amended to read as follows:
  S 312. Deposit and disposition of revenue.-- (a) Except  as  otherwise
provided,  of all taxes, interest and penalties collected or received on
or after April first, two  thousand  one,  from  the  taxes  imposed  by
[sections] SECTION three hundred one-a [and three hundred one-e] of this
article, (i) initially eighty and three-tenths percent shall be deposit-
ed,  as  prescribed by subdivision (d) of section three hundred one-j of
this article and (ii) nineteen and seven-tenths percent shall be  depos-
ited in such mass transportation operating assistance fund to the credit
of the metropolitan mass transportation operating assistance account and
the  public  transportation systems operating assistance account thereof
in the manner provided by subdivision  eleven  of  section  one  hundred
eighty-two-a  of  this  chapter. Provided, further that on or before the
twenty-fifth day of each month commencing with April, two thousand  one,
the comptroller shall deduct the amount of six hundred twenty-five thou-
sand dollars prior to any deposit or disposition of the taxes, interest,
and  penalties collected or received pursuant to such [sections] SECTION
three hundred one-a [and three hundred one-e]  and  shall  deposit  such
amount  in  the  dedicated  fund accounts pursuant to subdivision (d) of
section three hundred one-j of this  article.  Provided,  further,  that
commencing  January  fifteenth,  nineteen  hundred ninety-one, and on or
before the tenth day of March and the fifteenth day of June and  Septem-
ber  of such year, the commissioner shall, based on information supplied
by taxpayers and other appropriate sources, estimate the amount  of  the

S. 6409                            64                            A. 9009

utility credit authorized by section three hundred one-d of this article
which has been accrued to reduce tax liability under section one hundred
eighty-six-a  of this chapter during the period covered by such estimate
and  certify  to  the state comptroller such estimated amount. The comp-
troller shall forthwith, after receiving such  certificate,  deduct  the
amount  of  such  credit  so  certified by the commissioner prior to any
deposit or disposition of the taxes, interest and penalties collected or
received pursuant to such [sections] SECTION three  hundred  one-a  [and
three hundred one-e] and shall pay such amount so certified and deducted
into  the state treasury to the credit of the general fund. Also, subse-
quently, during the fiscal year when the commissioner becomes  aware  of
changes  or  modifications  with  respect  to  actual  credit usage, the
commissioner shall,  as  soon  as  practicable,  issue  a  certification
setting  forth  the  amount  of any required adjustment to the amount of
actual credit usage previously certified. After  receiving  the  certif-
icate of the commissioner with respect to actual credit usage or modifi-
cation  of the same, the comptroller shall forthwith adjust general fund
receipts and the revenues to be deposited  or  disposed  of  under  this
article  to reflect the difference so certified by the commissioner. The
commissioner shall not be liable for any overestimate  or  underestimate
of the amount of the utility credit which has been accrued to reduce tax
liability  under  such  section  one hundred eighty-six-a. Nor shall the
commissioner be liable  for  any  inaccuracy  in  any  certificate  with
respect  to  the  amount  of  such  credit actually used or any required
adjustment with respect to actual credit  usage,  but  the  commissioner
shall  as  soon  as  practicable after discovery of any error adjust the
next certification under this section to reflect any such error.
  Prior to making deposits as provided in this section, the  comptroller
shall  retain such amount as the commissioner may determine to be neces-
sary, subject to the approval of the director of the budget, for reason-
able costs of the department in administering and collecting  the  taxes
deposited  pursuant  to  this section and for refunds and reimbursements
with respect to such taxes, out of which the comptroller shall  pay  any
refunds  or  reimbursements  of  such  taxes to which taxpayers shall be
entitled.
  (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ALL  TAXES,  INTEREST,
AND  PENALTIES  COLLECTED  OR  RECEIVED  ON OR AFTER DECEMBER FIRST, TWO
THOUSAND SEVENTEEN FROM THE TAXES IMPOSED BY SECTION THREE HUNDRED ONE-E
OF THIS ARTICLE SHALL BE DEPOSITED IN THE AVIATION  PURPOSE  ACCOUNT  OF
THE  DEDICATED  HIGHWAY  AND  BRIDGE  TRUST  FUND ESTABLISHED BY SECTION
EIGHTY-NINE-B OF THE STATE FINANCE LAW.
  S 4. Paragraph 1 of subdivision (a) of section 1102 of the tax law, as
amended by chapter 261 of the laws  of  1988,  is  amended  to  read  as
follows:
  (1)  Every  distributor  of  motor  fuel shall pay, as a prepayment on
account of the taxes imposed by this article and pursuant to the author-
ity of article twenty-nine of this chapter, a  tax  on  each  gallon  of
motor fuel (i) which he imports or causes to be imported into this state
for  use,  distribution,  storage  or  sale  in  the  state or produces,
refines, manufactures or compounds in this state or (ii) if the tax  has
not  been imposed prior to its sale in this state, which he sells (which
acts shall in regard to motor fuel hereinafter in this article be encom-
passed by the phrase "imported,  manufactured  or  sold"),  except  when
imported,  manufactured  or  sold under circumstances which preclude the
collection of such tax by reason of the United States  constitution  and
of  the  laws  of  the  United  States  enacted pursuant thereto or when

S. 6409                            65                            A. 9009

imported or manufactured by an organization described in  paragraph  one
or  two  of  subdivision  (a)  of section eleven hundred sixteen of this
article or a hospital included in the organizations described  in  para-
graph  four  of  such  subdivision  for  its own use and consumption and
except kero-jet fuel  when  imported  by  an  airline  for  use  in  its
airplanes,  AND  EXCEPT  AVIATION  GASOLINE  SOLD  FOR USE IN COMMERCIAL
AIRCRAFT AND GENERAL AVIATION AIRCRAFT.
  S 5. Subparagraph (i) of paragraph 1 of  subdivision  (a)  of  section
1210  of the tax law, as amended by section 3 of part Z of chapter 59 of
the laws of 2015, is amended to read as follows:
  (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
authorized 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-
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 ALL
SALES  OF  FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION
AIRCRAFT; and, unless such city, county or school district elects other-
wise, shall omit the provision for credit or refund contained in  clause
six  of  subdivision  (a)  or  subdivision (d) of section eleven hundred
nineteen of this chapter.
  S 6. Subparagraphs (xii) and (xiii) of paragraph 4 of subdivision  (a)
of section 1210 of tax law, as amended by section 3 of part Z of chapter
59  of  the  laws  of  2015, are amended and a new subparagraph (xiv) is
added to read as follows:
  (xii) shall omit, unless such city elects otherwise, the exemption for
residential 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;  AND (XIV) SHALL EXCLUDE FROM THE OPERATION OF SUCH LOCAL TAXES
ALL SALES OF FUEL SOLD  FOR  USE  IN  COMMERCIAL  AIRCRAFT  AND  GENERAL
AVIATION  AIRCRAFT.  Any  reference in this chapter or in any local law,
ordinance or resolution enacted pursuant to the authority of this  arti-
cle to former subdivisions (n) or (p) of this section shall be deemed to
be a reference to clauses (xii) or (xiii) of this paragraph, respective-
ly,  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 7. Notwithstanding any law to the contrary, the comptroller is here-
by authorized and directed to transfer from the general fund for deposit
into the mass transportation  operating  assistance  fund,  pursuant  to
section 88-a of the state finance law and the dedicated mass transporta-
tion trust fund, pursuant to section 89-c of the state finance law, upon
request  of  the  director  of the budget, on or before March 31 of each
year, an amount equal to the amount of revenue received by  the  commis-
sioner  of taxation and finance during the state fiscal year from petro-
leum business taxes imposed pursuant to the authority of  section  301-e
of  the  tax  law  that would have otherwise been directed to such funds

S. 6409                            66                            A. 9009

pursuant to section 312 of the tax law as such section was in effect  on
the day before this act became a law.
  S  8.  Sections one, two and seven of this act shall take effect April
1, 2017; provided however that sections three, four,  five  and  six  of
this  act  shall take effect December 1, 2017; and provided further that
if section 19 of part W1 of chapter 109 of the laws of 2006  shall  have
not  expired  on or before such date then section four of this act shall
take effect on the same date and in the same manner as such  chapter  of
the laws of 2006 takes effect.

                                 PART AA

  Section  1.  Subdivision  2  of section 228 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 18 of the laws of 2008,
the opening paragraph as amended by chapter 236 of the laws of 2015,  is
amended to read as follows:
  2.  The  New  York  state  gaming  commission shall, as a condition of
racing, require any franchised corporation and every  other  corporation
subject  to  its  jurisdiction  to  withhold  one percent of all purses,
except that for the franchised corporation, starting on September first,
two thousand seven and continuing through August thirty-first, two thou-
sand sixteen, two percent of all purses shall be withheld, and,  in  the
case  of  the  franchised corporation, to pay such sum to the horsemen's
organization or  its  successor  that  was  first  entitled  to  receive
payments  pursuant  to  this  section  in  accordance  with rules of the
commission adopted effective November third,  nineteen  hundred  eighty-
three representing at least fifty-one percent of the owners and trainers
[utilizing]  USING the facilities of such franchised corporation, on the
condition that such horsemen's organization shall expend [as much as  is
necessary,  but  not  to  exceed]  one-half of one percent of such total
sum[,] TO CONDUCT EQUINE DRUG TESTING RESEARCH AND to acquire and  main-
tain  the  equipment required to [establish a program at a state college
within this state with an approved equine science program to]  test  for
the  presence of DRUGS, INCLUDING BUT NOT LIMITED TO steroids, in horses
AT A SUITABLE LABORATORY, AS THE GAMING COMMISSION MAY DETERMINE IN  ITS
DISCRETION, provided further that the qualified organization shall also,
in  an  amount  to  be  determined  by  its board of directors, annually
include in its expenditures for benevolence programs, funds  to  support
an  organization  providing services necessary to backstretch employees,
and, in the case of every other corporation, to pay such one percent sum
of purses to the horsemen's organization or its successor that was first
entitled to receive payments pursuant to this section in accordance with
rules of the commission adopted  effective  May  twenty-third,  nineteen
hundred eighty-six representing at least fifty-one percent of the owners
and trainers [utilizing] USING the facilities of such corporation.
  In  either  case,  any  other horsemen's organization may apply to the
[board] COMMISSION to be  approved  as  the  qualified  organization  to
receive  payment  of  the one percent of all purses by submitting to the
[board] COMMISSION proof of both,  that  (i)  it  represents  more  than
fifty-one  percent  of all the owners and trainers [utilizing] USING the
same facilities and (ii) the horsemen's organization previously approved
as qualified by the [board]  COMMISSION  does  not  represent  fifty-one
percent of all the owners and trainers [utilizing] USING the same facil-
ities.  If  the  [board]  COMMISSION is satisfied that the documentation
submitted with the application of any other horsemen's  organization  is

S. 6409                            67                            A. 9009

conclusive  with respect to items (i) and (ii) of this paragraph, it may
approve the applicant as the qualified recipient organization.
  In  the best interests of racing, upon receipt of such an application,
the [board] COMMISSION may direct the payments to the previously  quali-
fied horsemen's organization to continue uninterrupted, or it may direct
the  payments to be withheld and placed in interest-bearing accounts for
a period not to exceed  ninety  days,  during  which  time  the  [board]
COMMISSION shall review and approve or disapprove the application. Funds
held  in  such  manner shall be paid to the organization approved by the
[board] COMMISSION. In no event shall the [board] COMMISSION accept more
than one such application in any calendar year from the same  horsemen's
organization.
  The  funds  authorized  to be paid by the [board] COMMISSION are to be
used exclusively for the benefit of those horsemen racing  in  New  York
state  through  the  administrative purposes of such qualified organiza-
tion, benevolent activities on behalf of backstretch employees, and  for
the promotion of equine research.
  S 2. Section 902 of the racing, pari-mutuel wagering and breeding law,
as  amended  by chapter 60 of the laws of 1993, subdivision 1 as amended
by chapter 15 of the laws of 2010, and subdivision 2 as amended by chap-
ter 18 of the laws of 2008, is amended to read as follows:
  S 902. Equine drug testing and expenses. 1. In  order  to  assure  the
public's  confidence and continue the high degree of integrity in racing
at the pari-mutuel betting tracks, equine drug testing at race  meetings
shall  be  conducted  by  a  [state  college  within  this state with an
approved equine science program]  SUITABLE  LABORATORY,  AS  THE  GAMING
COMMISSION MAY DETERMINE IN ITS DISCRETION. The [state racing and wager-
ing  board] GAMING COMMISSION shall promulgate any rules and regulations
necessary to implement the provisions of this section, including  admin-
istrative  penalties  of  loss of purse money, fines, or denial, suspen-
sion[,] or revocation of a license for racing drugged horses.
  2. Notwithstanding any inconsistent provision of law,  all  costs  and
expenses  of the [state racing and wagering board] GAMING COMMISSION for
equine drug testing and research shall be  paid  from  an  appropriation
from the state treasury, on the certification of the [chairman] CHAIR of
the  [state racing and wagering board] GAMING COMMISSION, upon the audit
and warrant of the comptroller and pursuant to a plan developed  by  the
[state  racing  and wagering board] GAMING COMMISSION as approved by the
director of the budget.
  S 3. This  act  shall  take  effect  immediately;  provided,  however,
section two of this act shall take effect upon expiration of an existing
contract with a New York state college within the state with an approved
equine  science program, pursuant to section 902 of the racing, pari-mu-
tuel wagering and breeding law;  provided  that  the  gaming  commission
shall  notify  the  legislative bill drafting commission upon the occur-
rence of the enactment of the legislation provided for in section two of
this act in order that the commission may maintain an accurate and time-
ly effective data base of the official text of the laws of the state  of
New  York in furtherance of effectuating the provisions of section 44 of
the legislative law and section 70-b of the public officers law.

                                 PART BB

  Section 1. Subdivision 1 of section 236  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:

S. 6409                            68                            A. 9009

  1. Every corporation authorized under this chapter to conduct pari-mu-
tuel betting at a race meeting on races run thereat, except as  provided
in  section two hundred thirty-eight of this article with respect to the
franchised corporation, shall distribute all sums deposited in any pari-
mutuel  pool  to  the holders of winning tickets therein, providing such
tickets be presented for payment before April first of the year  follow-
ing  the  year  of  their purchase, less an amount [which] THAT shall be
established and retained by such racing corporation of between  fourteen
to  twenty [per centum] PERCENT of the total deposits in pools resulting
from regular on-track bets and less sixteen to twenty-two  [per  centum]
PERCENT  of the total deposits in pools resulting from multiple on-track
bets and less twenty to thirty [per centum] PERCENT of the total  depos-
its  in  pools  resulting  from  exotic on-track bets and less twenty to
thirty-six [per centum] PERCENT of the total pools resulting from  super
exotic  on-track  bets, plus the breaks. The retention rate to be estab-
lished is subject to the prior approval  of  the  [racing  and  wagering
board]  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 "multiple bets" shall have the meanings set
forth in section five hundred nineteen of this chapter  and  breaks  are
hereby defined as [the odd cents over any multiple of ten, or for exotic
bets  over  any  multiple  of  fifty, or for super exotic bets, over any
multiple of one hundred, calculated on the basis of one  dollar,  other-
wise payable to a patron provided, however, that effective after October
fifteenth,  nineteen  hundred  ninety-four 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. "Super exotic bets"
shall have the meaning set forth in section three hundred  one  of  this
chapter.  Of  the  amount so retained there shall be paid by such corpo-
ration to the department 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 meeting held by such  corporation,  which  tax  is
hereby  levied, the following percentages of the total pool, plus fifty-
five [per centum] PERCENT of the breaks; the applicable rates for  regu-
lar  and  multiple  bets shall be one and one-half [per centum] PERCENT;
the applicable rates for exotic bets shall be six and three-quarter [per
centum] PERCENT and the applicable rate for super exotic bets  shall  be
seven  and  three-quarter  [per centum] PERCENT.  Effective on and after
September first, nineteen hundred ninety-four, the applicable  tax  rate
shall  be  one  [per  centum]  PERCENT  of all wagers, provided that, an
amount equal to one-half the difference between the  taxation  rate  for
on-track  regular, multiple and exotic bets as of December thirty-first,
nineteen hundred ninety-three and the rates on such on-track  wagers  as
herein provided shall be used exclusively for purses. Provided, however,
that  for  any  twelve-month period beginning on April first in nineteen
hundred ninety and any year thereafter, each of the applicable rates set
forth above shall be  increased  by  one-quarter  of  one  [per  centum]
PERCENT on all on-track bets of any such racing corporation that did not
expend  an amount equal to at least one-half of one [per centum] PERCENT
of its on-track bets during the immediately preceding calendar year  for
enhancements  consisting  of  capital improvements as defined by section
two hundred thirty-seven of this article, repairs to its physical plant,

S. 6409                            69                            A. 9009

structures, and equipment used in its racing or wagering  operations  as
certified  by the [state racing and wagering board] GAMING COMMISSION to
the commissioner of taxation and finance no later than eighty days after
the  close  of such calendar year, and five special events at each track
in each calendar year, not otherwise conducted in the ordinary course of
business, the purpose of  which  shall  be  to  encourage,  attract  and
promote  track  attendance  and  encourage  new and continued patronage,
which events shall be  [approved  by  the  racing  and  wagering  board]
SUBJECT  TO  THE PRIOR APPROVAL OF THE GAMING COMMISSION for purposes of
this subdivision. In the determination of the amounts expended for  such
enhancements, the [board] GAMING COMMISSION may consider the immediately
preceding  [twelve month] TWELVE-MONTH calendar period or the average of
the two immediately preceding [twelve month] TWELVE-MONTH calendar peri-
ods. Provided further, however, that of the  portion  of  the  increased
amounts  retained  by  such  corporation above those amounts retained in
nineteen hundred eighty-four,  an  amount  of  such  increase  shall  be
distributed  to  purses in the same proportion as commissions and purses
were distributed during nineteen hundred eighty-four as certified by the
[board] GAMING COMMISSION. Such corporation in  the  second  zone  shall
receive a credit against the daily tax imposed by this subdivision in an
amount  equal  to FOUR-TENTHS OF one [per centum] PERCENT of total daily
pools resulting from  the  simulcast  of  such  corporation's  races  to
licensed  facilities operated by regional off-track betting corporations
in accordance with section one thousand eight of this chapter,  provided
however,  that  sixty  [per centum] PERCENT of the amount of such credit
shall be  used  exclusively  to  increase  purses  for  overnight  races
conducted  by  such corporation; and, provided further, that in no event
shall such total daily credit exceed FOUR-TENTHS  OF  one  [per  centum]
PERCENT of the total daily pool of such corporation. [Provided, however,
that  on  and  after  September first, nineteen hundred ninety-four such
credit shall be four-tenths percent of total daily pools resulting  from
such  simulcasting  and  that  in no event shall such total daily credit
equal four-tenths percent of the total daily pool of such corporation.]
  Such corporation shall pay to the New York state thoroughbred breeding
and development fund one-half of one [per centum] PERCENT of  the  total
daily on-track pari-mutuel pools from regular, multiple and exotic bets,
and  three  [per  centum]  PERCENT of super exotic bets. The corporation
shall receive credit as a reduction of the tax  by  the  state  for  the
privilege  of  conducting  pari-mutuel  betting  for the amounts, except
amounts paid from super exotic betting pools, paid to the New York state
thoroughbred breeding and development fund after January first, nineteen
hundred seventy-eight.
  Such corporation shall distribute to purses an amount equal  to  fifty
[per  centum]  PERCENT of any compensation it receives from simulcasting
or from wagering conducted outside the United States.  Such  corporation
shall  pay  to  the  [racing  and wagering board] GAMING COMMISSION as a
regulatory  fee,  which  fee  is  hereby  levied,   [fifty   hundredths]
SIX-TENTHS of one [per centum] PERCENT of the total daily on-track pari-
mutuel pools of such corporation.
  S  2.  Paragraph  (d)  of  subdivision 1 of section 238 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:
  (d)  (I)  The pari-mutuel tax rate authorized by paragraph (a) of this
subdivision shall be effective so long as a franchised corporation noti-
fies the  [racing  and  wagering  board]  GAMING  COMMISSION  by  August
fifteenth  of  each  year that such pari-mutuel tax rate is effective of

S. 6409                            70                            A. 9009

its intent to conduct a race meeting at Aqueduct  racetrack  during  the
months  of December, January, February, March and April. For purposes of
this paragraph such race meeting shall consist of not less than  ninety-
five  days  of racing.   Not later than May first of each year that such
pari-mutuel tax rate is  effective,  the  [racing  and  wagering  board]
GAMING  COMMISSION  shall  determine  whether a race meeting at Aqueduct
racetrack consisted of the number of days as required by this paragraph.
In determining the number of race  days,  cancellation  of  a  race  day
because  of  an act of God[, which] THAT the [racing and wagering board]
GAMING COMMISSION approves or because of  weather  conditions  that  are
unsafe or hazardous which the [racing and wagering board] GAMING COMMIS-
SION approves shall not be construed as a failure to conduct a race day.
Additionally, cancellation of a race day because of circumstances beyond
the  control  of  such  franchised corporation for which the [racing and
wagering board] GAMING COMMISSION gives approval shall not be  construed
as  a  failure to conduct a race day. If the [racing and wagering board]
GAMING COMMISSION determines that  the  number  of  days  of  racing  as
required  by  this  paragraph have not occurred then the pari-mutuel tax
rate in paragraph (a) of this subdivision shall revert to the pari-mutu-
el tax rates in effect prior to January first, nineteen hundred  ninety-
five.
  (II) Such franchised corporation shall pay to the [racing and wagering
board]  GAMING  COMMISSION  as  a  regulatory  fee,  which fee is hereby
levied, [fifty hundredths] SIX-TENTHS of one [per centum] PERCENT of the
total daily on-track pari-mutuel pools of such franchised corporation.
  S 3. Paragraph d of subdivision 1 of section 318 of the racing,  pari-
mutuel  wagering  and breeding law, as amended by section 3 of part B of
chapter 59 of the laws of 2005, is amended to read as follows:
  d. Every harness racing association or corporation shall  pay  to  the
[board]  GAMING  COMMISSION  as  a  regulatory  fee, which fee is hereby
levied, [fifty hundredths] SIX-TENTHS of one percent of the total  daily
on-track pari-mutuel pools of such association or corporation.
  S  4. The opening paragraph and the opening paragraph of subdivision 1
of section 527 of the racing, pari-mutuel wagering and breeding law, the
opening paragraph as amended by chapter 18 of the laws of 2008  and  the
opening paragraph of subdivision 1 as amended by chapter 300 of the laws
of 2015, are amended to read as follows:
  Each  regional corporation conducting off-track betting shall distrib-
ute all sums deposited in any pari-mutuel pool through such  corporation
to  the  holders  of  winning tickets therein, providing such tickets be
presented for payment prior to April first of  the  year  following  the
year  of  their purchase, less an amount [which] THAT it shall retain at
the same rate established by the track accepting wagers from  each  such
regional corporation.
  The  disposition  of the retained commission from pools resulting from
regular, multiple or exotic bets, as the case may be, whether placed  on
races  run  within  a  region  or  outside a region, conducted by racing
corporations, harness racing associations or corporations, quarter horse
racing associations or corporations or races run outside the state shall
be governed by the tables in paragraphs a and b of this subdivision. The
rate denominated "state tax" shall represent the rate  of  a  reasonable
tax imposed upon the retained commission for the privilege of conducting
off-track  pari-mutuel  betting, which tax is hereby levied and shall be
payable in the manner set forth in this section. Each off-track  betting
corporation  shall pay to the [racing and wagering board] GAMING COMMIS-
SION as a regulatory fee, which fee is hereby levied, [fifty hundredths]

S. 6409                            71                            A. 9009

SIX-TENTHS of one percent of the total daily pools of such  corporation.
Each  corporation  shall  also  pay  twenty  [per centum] PERCENT of the
breaks derived from bets on harness races and fifty [per centum] PERCENT
of  the  breaks  derived from bets on all other races to the agriculture
and New York State horse  breeding  and  development  fund  and  to  the
thoroughbred  breeding  and development fund, the total of such payments
to be apportioned fifty [per centum] PERCENT to each such fund. For  the
purposes  of  this  section, the New York city, Suffolk, Nassau, and the
Catskill regions shall constitute a single region and  any  thoroughbred
track  located  within the Capital District region shall be deemed to be
within such single region. A "regional meeting" shall  refer  to  either
harness  or  thoroughbred  meetings,  or  both, except that a franchised
corporation shall not be a regional track for the purpose  of  receiving
distributions  from  bets on thoroughbred races conducted by a thorough-
bred track in the Catskill region conducting a mixed meeting.  With  the
exception  of a harness racing association or corporation first licensed
to conduct pari-mutuel wagering at a track located in Tioga or  Saratoga
county after January first, two thousand five, racing corporations first
licensed  to  conduct  pari-mutuel  racing after January first, nineteen
hundred eighty-six or a harness racing association or corporation  first
licensed  to  conduct pari-mutuel wagering at a track located in Genesee
County after January first, two thousand five, and quarter horse  tracks
shall  not be "regional tracks"; if there is more than one harness track
within a region, such tracks shall evenly divide payments made  pursuant
to  the  tables  in  paragraphs a and b of this subdivision when neither
track is running. In the event a track elects  to  reduce  its  retained
percentage from any or all of its pari-mutuel pools, the payments to the
track  holding  the race and the regional track required by paragraphs a
and b of this  subdivision  shall  be  reduced  in  proportion  to  such
reduction.  Nothing  in this section shall be construed to authorize the
conduct of off-track betting contrary to the provisions of section  five
hundred twenty-three of this article.
  S  5. Paragraph a of subdivision 1 of section 904 of the racing, pari-
mutuel wagering and breeding law, as amended by chapter 18 of  the  laws
of 2008, are amended to read as follows:
  a.  The  applicable  state  tax  provided for in paragraphs a and b of
subdivision one of section five hundred  twenty-seven  of  this  chapter
shall  be one-half [per centum] PERCENT for regular, multiple and exotic
bets. Any harness racing or association or corporation, or  thoroughbred
racing  corporation authorized pursuant to this section shall pay to the
[racing and wagering board] GAMING COMMISSION as a regulatory fee, which
fee is hereby levied, [fifty hundredths] SIX-TENTHS of  one  percent  of
the total daily pari-mutuel pools.
  S 6. Paragraph g of subdivision 3 of section 1007 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:
  g. Any harness racing or association or corporation,  or  thoroughbred
racing  corporation authorized pursuant to this section shall pay to the
[racing and wagering board] GAMING COMMISSION as a regulatory fee, which
fee is hereby levied, [fifty hundredths] SIX-TENTHS of  one  percent  of
the total daily pari-mutuel pools.
  S 7. Paragraph b of subdivision 3 of section 1008 of the racing, pari-
mutuel  wagering  and breeding law, as amended by section 7 of part B of
chapter 59 of the laws of 2005, is amended to read as follows:
  b. Of the sums received by the sending track, fifty percent  shall  be
distributed  to  purses  in  addition  to moneys distributed pursuant to

S. 6409                            72                            A. 9009

section five hundred twenty-seven of this chapter. The off-track betting
corporation shall pay to the [racing and wagering board] GAMING  COMMIS-
SION as a regulatory fee, which fee is hereby levied, [fifty hundredths]
SIX-TENTHS of one percent of the total daily pools.
  S 8. Paragraph d of subdivision 4 of section 1009 of the racing, pari-
mutuel  wagering  and breeding law, as amended by section 8 of part B of
chapter 59 of the laws of 2005, is amended to read as follows:
  d. The operator shall pay to the [racing and  wagering  board]  GAMING
COMMISSION  as  a  regulatory  fee,  which  fee is hereby levied, [fifty
hundredths] SIX-TENTHS of one percent of the total daily pools.
  S 9. Subparagraph (iv) of paragraph i of subdivision 1 of section 1014
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:
  (iv) Any thoroughbred racing corporation or harness racing association
or  corporation  or off-track betting corporation authorized pursuant to
this section shall pay to the [racing and wagering board] GAMING COMMIS-
SION as a regulatory fee, which fee is hereby levied, [fifty hundredths]
SIX-TENTHS of one percent of all wagering pools.
  S 10. Paragraph e of subdivision 3 of  section  1015  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:
  e. Any thoroughbred racing corporation or harness  racing  association
or  corporation  or off-track betting corporation authorized pursuant to
this section shall pay to the [racing and wagering board] GAMING COMMIS-
SION as a regulatory fee, which fee is hereby levied, [fifty hundredths]
SIX-TENTHS of one percent of all wagering pools.
  S 11. Clause (B) of subparagraph 2 of paragraph b of subdivision 1  of
section  1016  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:
  (B)  Any  harness racing or association or corporation or thoroughbred
racing corporation authorized pursuant to this section shall pay to  the
[racing and wagering board] GAMING COMMISSION as a regulatory fee, which
fee  is  hereby  levied, [fifty hundredths] SIX-TENTHS of one percent of
the total daily pari-mutuel pools.
  S 12. Paragraph b of subdivision 2 of  section  1018  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:
  b. Any thoroughbred racing corporation or harness  racing  association
or corporation or off-track betting corporation shall pay to the [racing
and  wagering board] GAMING COMMISSION as a regulatory fee, which fee is
hereby levied, [fifty hundredths]  SIX-TENTHS  of  one  percent  of  all
wagering pools.
  S  13. Paragraph 2 of subdivision b of section 1612 of the tax law, as
amended by section 1 of part OO of chapter 59 of the laws  of  2014,  is
amended to read as follows:
  2. As consideration for the operation of a video lottery gaming facil-
ity,  the division, shall cause the investment in the racing industry of
a portion of the vendor fee received pursuant to paragraph one  of  this
subdivision  in  the  manner  set  forth in this subdivision.   With the
exception of Aqueduct racetrack or a facility in the county of Nassau or
Suffolk operated by a corporation established pursuant to  section  five
hundred  two  of the racing, pari-mutuel wagering and breeding law, each
such track shall dedicate a portion of its vendor fees, received  pursu-
ant  to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii)
of paragraph one of this subdivision, for the purpose of enhancing purs-

S. 6409                            73                            A. 9009

es at such track, in an amount equal to eight and three-quarters percent
of the total revenue wagered at the vendor track after [pay out]  PAYOUT
for  prizes.  One  AND SIX-TENTHS percent of the gross purse enhancement
amount,  as  required  by  this subdivision, shall be paid to the gaming
commission to be used exclusively to promote and  ensure  equine  health
and  safety  in  New  York.  Any  portion  of such funding to the gaming
commission unused during a fiscal year shall be returned  to  the  video
lottery  gaming  operators  on  a  pro rata basis in accordance with the
amounts originally contributed by each operator and shall  be  used  for
the  purpose of enhancing purses at such track. One and one-half percent
of the gross purse  enhancement  amount  at  a  thoroughbred  track,  as
required  by  this  subdivision, shall be paid to an account established
pursuant to section two hundred twenty-one-a of the racing,  pari-mutuel
wagering  and  breeding  law  to  be  used exclusively to provide health
insurance for jockeys. In addition, with the exception of Aqueduct race-
track or a facility in the county of Nassau or  Suffolk  operated  by  a
corporation  established  pursuant  to  section  five hundred two of the
racing, pari-mutuel wagering  and  breeding  law,  one  and  one-quarter
percent  of  total  revenue  wagered at the vendor track after [pay out]
PAYOUT for prizes, received pursuant to clause (A), (B), (C), (D),  (E),
(F),  or  (G) of subparagraph (ii) of paragraph one of this subdivision,
shall be distributed to the appropriate breeding fund for the manner  of
racing conducted by such track.
  Provided,  further,  that nothing in this paragraph shall prevent each
track from entering into an agreement, not to exceed  five  years,  with
the  organization  authorized  to  represent its horsemen to increase or
decrease the portion of its vendor fee dedicated to enhancing purses  at
such  track  during the years of participation by such track, or to race
fewer dates than required herein.
  S 14. Paragraph 1 of subdivision f of section 1612 of the tax law,  as
amended  by  section  2 of part OO of chapter 59 of the laws of 2014, is
amended to read as follows:
  1. [Six] SEVEN and one-half percent of the total wagered after  payout
of  prizes  for the [first year of] operation of video lottery gaming at
Aqueduct racetrack, [seven percent of the total wagered after payout  of
prizes  for the second year of operation, and seven and one-half percent
of the total wagered after payout of prizes for the third year of opera-
tion and thereafter,] for the purpose of enhancing  purses  at  Aqueduct
racetrack,  Belmont  Park  racetrack  and Saratoga race course.  One AND
SIX-TENTHS percent of the gross purse enhancement amount, as required by
this subdivision, shall be paid to the  gaming  commission  to  be  used
exclusively  to promote and ensure equine health and safety in New York.
Any portion of such funding to the gaming  commission  unused  during  a
fiscal year shall be returned on a pro rata basis in accordance with the
amounts  originally  contributed  and  shall  be used for the purpose of
enhancing purses at such tracks. One and one-half percent of  the  gross
purse enhancement amount, as required by this subdivision, shall be paid
to  an  account established pursuant to section two hundred twenty-one-a
of the racing, pari-mutuel wagering and breeding law to be  used  exclu-
sively to provide health insurance for jockeys.
  S 15. This act shall take effect immediately.

                                 PART CC

S. 6409                            74                            A. 9009

  Section  1. Section 308 of the racing, pari-mutuel wagering and breed-
ing law, as amended by section 1 of part Y of chapter 58 of the laws  of
2012, is amended to read as follows:
  S  308.  Officials  at  harness horse race meetings. 1. At all harness
race meetings licensed by the [state racing and wagering  board]  GAMING
COMMISSION  in  accordance  with  the provisions of sections two hundred
twenty-two through seven hundred five of this chapter  qualified  judges
and  starters  shall  be  designated  by  the [state racing and wagering
board] GAMING COMMISSION. Such officials shall  enforce  the  rules  and
regulations  of  the [state racing and wagering board] GAMING COMMISSION
and shall render regular written reports of the activities  and  conduct
of  such  race  meetings to the [state racing and wagering board] GAMING
COMMISSION.
  2. The licensed racing corporations shall reimburse the [state  racing
and  wagering  board]  GAMING  COMMISSION  for  the per diem cost to the
[board] COMMISSION to employ one associate  judge  and  the  starter  to
serve at harness race meetings. The [board] COMMISSION shall notify EACH
such  licensed racing [corporations] CORPORATION of the per diem cost of
the associate judge and the starter [prior  to  the  beginning]  AT  THE
TRACK  OF  SUCH LICENSED RACING CORPORATION WITHIN SIXTY DAYS OF THE END
of each month. Payment of the reimbursement  required  by  this  section
shall  be made to the [board] COMMISSION by each entity required to make
such payments [on the last business day of  each  month]  WITHIN  THIRTY
DAYS  OF  SUCH  NOTIFICATION  BY  THE COMMISSION and shall cover all the
costs incurred during that month. A penalty of five percent  of  payment
due,  and  interest at the rate of one percent per month calculated from
such [last day of each month] DATE THAT PAYMENT IS DUE to  the  date  of
the  payment  of the per diem cost shall be payable in case any per diem
cost imposed by this subdivision is  not  paid  when  due.  The  [board]
COMMISSION  shall  promulgate rules and regulations to ensure the proper
reimbursement of such costs.
  3. The  [board]  COMMISSION  shall  pay  into  the  racing  regulation
account,  as  defined in section ninety-nine-i of the state finance law,
under the joint custody of the comptroller and the  [board]  COMMISSION,
the  total  amount  of  the  reimbursements  collected  pursuant to this
section. With the  approval  of  the  director  of  the  budget,  monies
[utilized]  USED  to pay the costs and expenses of the operations of the
[board] COMMISSION shall be paid out of such account on  the  audit  and
warrant  of  the  comptroller on vouchers, certified and approved by the
director of the division of the budget or his  or  her  duly  designated
official.
  4. Any associate judge and starter whose per diem costs are reimbursed
by  a  licensed  racing corporation shall remain employees of the [state
racing and wagering board] GAMING COMMISSION and shall  retain  all  the
rights  and  privileges  of  their  current civil service jurisdictional
classification and status and collective bargaining unit representation.
  S 2. This act shall take effect immediately.

                                 PART DD

  Section 1. Subparagraph (ii)  of  paragraph  1  of  subdivision  b  of
section  1612  of the tax law is amended by adding a new clause (G-2) to
read as follows:
  (G-2) NOTWITHSTANDING ANY PROVISION TO THE  CONTRARY,  WHEN  A  VENDOR
TRACK IS LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO AS DEFINED BY
SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL WAGERING AND

S. 6409                            75                            A. 9009

BREEDING LAW AND IS LOCATED WITHIN ONTARIO  COUNTY,  SUCH  VENDOR  TRACK
SHALL RECEIVE AN ADDITIONAL COMMISSION AT A RATE EQUAL TO THE PERCENTAGE
OF  REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT
TO  THIS CHAPTER, WHICH PERCENTAGE SHALL BE ONE HUNDRED, LESS THE SUM OF
THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK  RETAINED  BY
THE  COMMISSION FOR OPERATION, ADMINISTRATION, AND PROCUREMENT PURPOSES;
AND THE VENDOR'S FEE, MARKETING ALLOWANCE AND CAPITAL AWARD PAID TO  THE
VENDOR  TRACK  PURSUANT TO THIS CHAPTER; AND THE EFFECTIVE TAX RATE PAID
ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN  SENECA  OR
WAYNE  COUNTIES  PURSUANT  TO  SECTION THIRTEEN HUNDRED FIFTY-ONE OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, PROVIDED,  HOWEVER,  SUCH
ADDITIONAL  COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR
TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN SENECA  OR
WAYNE  COUNTIES IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIF-
ICATE ISSUED PURSUANT TO SECTION  THIRTEEN  HUNDRED  THIRTY-ONE  OF  THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. THE ADDITIONAL COMMISSION
SET  FORTH IN THIS CLAUSE SHALL BE PAID TO THE VENDOR TRACK WITHIN SIXTY
DAYS AFTER THE CONCLUSION OF THE STATE FISCAL YEAR BASED ON  THE  CALCU-
LATED PERCENTAGE DURING THE PREVIOUS FISCAL YEAR.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after January 1, 2014.

                                 PART EE

  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
WW of chapter 59 of the laws of 2015, 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 [eight] NINE 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, 2016.

                                 PART FF

  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  NN  of  chapter  59 of the laws of 2015, 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-

S. 6409                            76                            A. 9009

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
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 [sixteen] SEVENTEEN; 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 [sixteen] SEVENTEEN; 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 NN of chapter 59 of the laws of 2015,  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 [sixteen] SEVENTEEN, 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

S. 6409                            77                            A. 9009

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  NN  of  chapter  59 of the laws of 2015, 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 conducting a race meet-
ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
thirtieth, two thousand [sixteen] SEVENTEEN 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 [sixteen] SEVENTEEN.   On any day  on  which  a  franchised
corporation 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 NN of chapter 59 of
the laws of 2015, 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 [sixteen] SEVENTEEN.  This section shall super-
sede 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 NN of chapter 59 of the laws of 2015,  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 [sixteen] SEVENTEEN.   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 NN of chapter
59 of the laws of 2015, is amended to read as follows:

S. 6409                            78                            A. 9009

  Notwithstanding  any  other  provision of this chapter, for the period
July twenty-fifth, two thousand one through September eighth, two  thou-
sand  [fifteen]  SIXTEEN,  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
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 NN of chapter 59 of the
laws of 2015, 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,  [2016]  2017;  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  NN of chapter 59 of the laws of 2015, 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, [2016] 2017; 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
NN of chapter 59 of the laws of 2015, 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

S. 6409                            79                            A. 9009

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
"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  [sixteen]  SEVENTEEN,  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
corporation 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 thir-
ty-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
[sixteen] SEVENTEEN, such payment  shall  be  seven-tenths  of  one  per
centum of such pools.
  S 10. This act shall take effect immediately.

                                 PART GG

  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
MM of chapter 59 of the laws of 2015, 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

S. 6409                            80                            A. 9009

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
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 [sixteen] SEVENTEEN.  Any amount attributable
to a capital expenditure approved prior to  April  first,  two  thousand
[sixteen]SEVENTEEN and completed before April first, two thousand [eigh-
teen]  NINETEEN; or approved prior to April first, two thousand [twenty]
TWENTY-ONE and completed before April first, two  thousand  [twenty-two]
TWENTY-THREE  for  a  vendor  track  located west of State Route 14 from
Sodus Point to the Pennsylvania border within New York, shall be  eligi-
ble  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  [sixteen]  SEVENTEEN and completed prior to April
first, two thousand [eighteen] NINETEEN, exceed the vendor track's cumu-
lative capital award during the five year period ending April first, two
thousand [sixteen] SEVENTEEN, the vendor shall continue to  receive  the
capital  award after April first, two thousand [sixteen] SEVENTEEN 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 [sixteen] SEVENTEEN shall
be deposited into the state lottery fund for education aid; and
  S 2. This act shall take effect immediately.

                                 PART HH

  Section 1. Paragraph b of subdivision 3  of  section  97-nnnn  of  the
state  finance  law,  as  added  by  chapter 174 of the laws of 2013, is
amended to read as follows:

S. 6409                            81                            A. 9009

  b. ten percent of the moneys  in  such  fund,  AS  ATTRIBUTABLE  TO  A
SPECIFIC  LICENSED GAMING FACILITY, shall be appropriated or transferred
from the commercial gaming revenue fund equally between the host munici-
pality and host county OF SUCH FACILITY.
  S  2.  Clause (G) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as added by chapter 174 of the  laws  of
2013, is amended to read as follows:
  (G) Notwithstanding any provision to the contrary, when a vendor track
is  located  within regions one, two, or five of development zone two as
defined by section thirteen  hundred  ten  of  the  racing,  pari-mutuel
wagering and breeding law, such vendor track shall receive an additional
commission  at  a rate equal to the percentage of revenue wagered at the
vendor track after payout for prizes pursuant  to  this  chapter,  WHICH
PERCENTAGE  SHALL  BE  ONE  HUNDRED,  less  [ten percent] THE SUM OF THE
PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK retained  by  the
commission  for operation, administration, and procurement purposes; and
[payment of] the vendor's fee, marketing allowance[,] and capital  award
paid TO THE VENDOR TRACK pursuant to this chapter; and the effective tax
rate  paid  on all gross gaming revenue paid by a gaming facility within
the same region pursuant to section thirteen hundred  fifty-one  of  the
racing,  pari-mutuel  wagering and breeding law, PROVIDED, HOWEVER, SUCH
ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE  VENDOR
TRACK  AFTER  PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN THE SAME
REGION IS OPEN AND OPERATIONAL  PURSUANT  TO  AN  OPERATION  CERTIFICATE
ISSUED  PURSUANT  TO  SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING,
PARI-MUTUEL WAGERING AND BREEDING LAW.  The  additional  commission  SET
FORTH IN THIS CLAUSE shall be paid to the vendor track within sixty days
after  the  conclusion  of the state fiscal year based on the calculated
percentage during the previous fiscal year.
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after January 1, 2014.
  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 HH of this act shall be
as specifically set forth in the last section of such Parts.

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

    S. 6409--A                                            A. 9009--A

                      S E N A T E - A S S E M B L Y

                            January 14, 2016
                               ___________

IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
  cle seven of the Constitution -- read twice and ordered  printed,  and
  when  printed to be committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
  article  seven  of  the  Constitution -- read once and referred to the
  Committee on Ways and Means --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to amend the real property tax law and the tax law, in relation
  to transitioning  the  school  tax  relief  (STAR)  exemption  into  a
  personal income tax credit, and to repeal subdivision 5 of section 520
  of  the  real property tax law relating thereto (Part A); to amend the
  real property tax law, in  relation  to  the  maximum  amount  of  tax
  savings  allowable  under the STAR program (Part B); to amend the real
  property tax law in relation to making the income verification program
  mandatory (Part C); to amend the real property tax law, in relation to
  allowing applications for exemptions to be  filed  after  the  taxable
  status  date  in  certain cases (Part D); to amend the tax law and the
  administrative code of the city of New York, in relation to establish-
  ing a new school tax reduction credit for residents of a city  with  a
  population  over  one million (Part E); to amend the real property tax
  law, in relation to  authorizing  the  commissioner  of  taxation  and
  finance to make direct payments of STAR tax savings to property owners
  in certain cases (Part F); to amend the tax law, in relation to making
  permanent,  provisions  relating to mandatory electronic filing of tax
  documents, improving sales tax compliance and  updating  tax  preparer
  penalties;  to amend chapter 61 of the laws of 2011, amending the real
  property tax law and other laws relating to establishing standards for
  electronic tax administration, in relation to the effectiveness there-
  of; and to repeal certain provisions of the tax law and  the  adminis-
  trative  code  of  the  city of New York relating thereto (Part G); to
  amend the public housing law, in  relation  to  extending  the  credit
  against  income  tax  for  persons or entities investing in low-income
  housing (Part H); to amend the tax law, in relation to  extending  the
  hire  a  veteran credit for an additional two years (Part I); to amend

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD12674-02-6

S. 6409--A                          2                         A. 9009--A

  the tax law, in relation to  extending  the  empire  state  commercial
  production  tax  credit  (Part J); to amend chapter 604 of the laws of
  2011, amending the tax law relating to the credit  for  companies  who
  provide  transportation  to  people  with disabilities, in relation to
  extending the expiration of such provision (Part K); to amend  part  I
  of  chapter  58  of the laws of 2006, amending the tax law relating to
  providing an enhanced earned income tax credit, in relation to  making
  the  enhanced  earned  income  tax credit permanent (Part L); to amend
  part N of chapter 61 of the laws of 2005 amending the tax law relating
  to certain transactions and related information and  relating  to  the
  voluntary  compliance initiative, in relation to permanently extending
  the disclosure and penalty provisions for  transactions  that  present
  the  potential  for  tax  avoidance (Part M); to amend the tax law, in
  relation to extending the clean heating fuel credit  for  three  years
  and  updating the credit to reflect new minimum biodiesel fuel thresh-
  olds (Part N); to amend the economic development law and the tax  law,
  in  relation  to  extending  the excelsior jobs program for five years
  (Part O); to amend the tax law and the administrative code of the City
  of New York in relation to making corrections  to  the  corporate  tax
  reform  provisions  (Part P); to amend the tax law and the administra-
  tive code of the city of New York, in relation to the time for  filing
  reports  (Part Q); to amend the tax law and the administrative code of
  the city of New York, in relation to the business income base rate and
  expanding the small business subtraction  modification  (Part  R);  to
  amend  the  education law and the tax law, in relation to enacting the
  "parental choice in education act" (Part S); to amend the tax law,  in
  relation to establishing a tax credit for New York state thruway tolls
  (Part  T);  to  amend chapter 109 of the laws of 2006 amending the tax
  law and other laws relating to  providing  exemptions,  reimbursements
  and  credits  from  various  taxes  for  certain alternative fuels, in
  relation to extending the alternative fuels tax  exemptions  for  five
  years  (Part  U);  to amend the tax law, in relation to exempting from
  alcoholic beverage tax certain alcoholic  beverages  furnished  at  no
  charge by certain licensees to customers or prospective customers at a
  tasting  held  in  accordance with the alcoholic beverage control law,
  and to expand the beer production credit to include wine,  liquor  and
  cider  (Part  V);  to  amend  the  tax law, in relation to authorizing
  jeopardy assessments on cigarette and tobacco product  taxes  assessed
  under article 20 thereof (Part W); to amend the tax law and the admin-
  istrative  code  of the city of New York, in relation to allowing room
  remarketers to purchase occupancies from hotel operators  exempt  from
  sales  tax under certain circumstances (Part X); to amend the tax law,
  in relation to  charitable  contributions  and  charitable  activities
  being considered in determining domicile for estate tax purposes (Part
  Y);  to  amend  the  state  finance  law,  in relation to creating the
  aviation purpose account and ensuring that the funds deposited in  the
  aviation purpose account are used for airport improvement projects; to
  amend  the  tax  law,  in  relation to provide for the distribution of
  revenues under section 301-e of such law; to exempt sales of fuel sold
  for use in commercial aircraft and general aviation aircraft from  the
  prepayment  of  sales tax imposed pursuant to the authority of section
  1102(a) (1) (ii) of such law; and to exclude sales of  fuel  sold  for
  use  in  commercial  aircraft  and  general aviation aircraft from the
  operation of sales and use taxes imposed pursuant to the authority  of
  section 1210(a) of such law (Part Z); to amend the racing, pari-mutuel
  wagering  and breeding law, in relation to equine lab testing provider

S. 6409--A                          3                         A. 9009--A

  restrictions removal (Part  AA);  to  amend  the  racing,  pari-mutuel
  wagering  and  breeding  law  and the tax law, in relation to reducing
  purse amounts paid from the VLT program and to increasing racing regu-
  latory  fee  (Part  BB); to amend the racing, pari-mutuel wagering and
  breeding law, in relation to the timing of  harness  track  reimburse-
  ments  and other technical amendments (Part CC); to amend the tax law,
  in relation to the payment of vendors' fees (Part DD);  to  amend  the
  tax  law,  in  relation  to vendor fees at vendor tracks (Part EE); to
  amend the racing, pari-mutuel wagering and breeding law,  in  relation
  to  licenses  for  simulcast facilities, sums relating to track simul-
  cast, simulcast of out-of-state thoroughbred  races,  simulcasting  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-mu-
  tuel wagering and breeding law and other laws relating  to  simulcast-
  ing;  to  amend  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, in relation to
  extending certain provision thereof; and to amend the racing, pari-mu-
  tuel and breeding law, in relation  to  extending  certain  provisions
  thereof (Part FF); to amend the tax law, in relation to capital awards
  to  vendor  tracks  (Part  GG); and to amend the state finance law, in
  relation to allocations from the commercial gaming  revenue  fund;  to
  amend  the  tax  law,  in  relation  to commissions payable to certain
  vendor racetracks (Part HH); to amend the  tax  law,  in  relation  to
  further  clarifying  disclosure procedures regarding medical marihuana
  (Part II); to amend the real property tax law,  in  relation  to  STAR
  recoupment  program  (Part JJ); and to amend the tax law and the state
  finance law, in relation to the fees associated with a certificate  of
  registration  and  decal  imposed  by  article  21  of the tax law for
  certain vehicles operating on public highways in New York state  (Part
  KK)

  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 2016-2017
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through KK. 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.  Paragraph (a) of subdivision 6 of section 425 of the real
property tax law, as amended by chapter 6 of the laws of  2010,  and  as
further  amended by subdivision (b) of section 1 of part W of chapter 56
of the laws of 2010, is amended to read as follows:
  (a) Generally. All owners of the property who primarily reside thereon
AND WHO ARE NOT SUBJECT TO THE PROVISIONS OF SUBDIVISION SIXTEEN OF THIS

S. 6409--A                          4                         A. 9009--A

SECTION must jointly file an application for exemption with the assessor
on or before the appropriate taxable status date. Such  application  may
be  filed  by  mail  if  it  is enclosed in a postpaid envelope properly
addressed  to  the  appropriate  assessor, deposited in a post office or
official depository under the exclusive care of the United States postal
service, and postmarked by the United States postal service on or before
the applicable taxable status date. Each such application shall be  made
on a form prescribed by the commissioner, which shall require the appli-
cant  or  applicants  to  agree  to notify the assessor if their primary
residence changes while their property is receiving the  exemption.  The
assessor  may  request  that  proof  of  residency be submitted with the
application. If the applicant requests a receipt from  the  assessor  as
proof  of submission of the application, the assessor shall provide such
receipt. If such request is made by other  than  personal  request,  the
applicant  shall  provide  the  assessor  with a self-addressed postpaid
envelope in which to mail the receipt.
  S 2. Section 425 of the real property tax law is amended by  adding  a
new subdivision 16 to read as follows:
  16.  TRANSITION  TO  PERSONAL  INCOME  TAX  CREDIT. (A) BEGINNING WITH
ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND
SIXTEEN--TWO THOUSAND SEVENTEEN  SCHOOL  YEAR,  NO  APPLICATION  FOR  AN
EXEMPTION  UNDER  THIS  SECTION MAY BE FILED OR APPROVED UNLESS AT LEAST
ONE OF THE APPLICANTS HELD TITLE TO THE PROPERTY ON THE  TAXABLE  STATUS
DATE  OF THE ASSESSMENT ROLL THAT WAS USED TO LEVY SCHOOL DISTRICT TAXES
FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR  AND  THE
PROPERTY  WAS  GRANTED  AN  EXEMPTION  PURSUANT  TO THIS SECTION ON THAT
ASSESSMENT ROLL.  IN THE EVENT THAT AN APPLICATION IS SUBMITTED  TO  THE
ASSESSOR  THAT  CANNOT BE APPROVED DUE TO THIS RESTRICTION, THE ASSESSOR
SHALL NOTIFY THE APPLICANT THAT HE OR SHE IS REQUIRED BY LAW TO DENY THE
APPLICATION, BUT THAT, IN LIEU OF A STAR EXEMPTION,  THE  APPLICANT  MAY
CLAIM  THE  PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE) OF
SECTION SIX HUNDRED SIX OF THE TAX LAW IF ELIGIBLE, AND THAT THE  APPLI-
CANT  MAY  CONTACT  THE  DEPARTMENT  OF TAXATION AND FINANCE FOR FURTHER
INFORMATION.  THE COMMISSIONER SHALL PROVIDE A  FORM  FOR  ASSESSORS  TO
USE,  AT  THEIR OPTION, WHEN MAKING THIS NOTIFICATION. NO STAR EXEMPTION
MAY BE GRANTED ON THE BASIS OF AN APPLICATION THAT IS NOT APPROVABLE DUE
TO THIS RESTRICTION.
  (B) IF THE OWNERS OF A PARCEL THAT IS  RECEIVING  THE  STAR  EXEMPTION
AUTHORIZED  BY THIS SECTION WANT TO CLAIM THE PERSONAL INCOME TAX CREDIT
AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW
IN LIEU OF SUCH EXEMPTION, THEY ALL MUST RENOUNCE THAT EXEMPTION IN  THE
MANNER  PROVIDED BY SECTION FOUR HUNDRED NINETY-SIX OF THIS CHAPTER, AND
MUST PAY ANY REQUIRED TAXES, INTEREST AND PENALTIES, ON OR BEFORE DECEM-
BER THIRTY-FIRST OF THE TAXABLE YEAR FOR WHICH THEY WANT  TO  CLAIM  THE
CREDIT. ANY SUCH RENUNCIATION SHALL BE IRREVOCABLE.
  (C) THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO ALL APPLICATIONS
FOR  STAR EXEMPTIONS BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL
DISTRICT TAXES FOR THE  TWO  THOUSAND  SIXTEEN--TWO  THOUSAND  SEVENTEEN
SCHOOL  YEAR,  INCLUDING  THOSE SUBMITTED PRIOR TO THE EFFECTIVE DATE OF
THIS SUBDIVISION. IF ANY APPLICATION WAS APPROVED PRIOR TO THE EFFECTIVE
DATE OF THIS SUBDIVISION THAT IS NOT APPROVABLE HEREUNDER, SUCH APPROVAL
SHALL BE DEEMED VOID, AND THE ASSESSOR SHALL PROVIDE THE APPLICANT  WITH
THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION.
  S  3.  Subdivision  2  of section 496 of the real property tax law, as
added by section 3 of part N of chapter 58  of  the  laws  of  2011,  is
amended to read as follows:

S. 6409--A                          5                         A. 9009--A

  2.  An  application  to  renounce an exemption shall be made on a form
prescribed by the commissioner and shall be filed with the county direc-
tor of real property tax services no later than ten years after the levy
of taxes upon the assessment  roll  on  which  the  renounced  exemption
appears.  The  county  director,  after  consulting with the assessor as
appropriate, shall compute the total  amount  owed  on  account  of  the
renounced exemption as follows:
  (a) For each assessment roll on which the renounced exemption appears,
the assessed value that was exempted shall be multiplied by the tax rate
or  rates that were applied to that assessment roll. Interest shall then
be added to each such product at the rate  prescribed  by  section  nine
hundred twenty-four-a of this chapter or such other law as may be appli-
cable  for  each  month  or portion thereon since the levy of taxes upon
such assessment roll.
  (b) The sum of the calculations made pursuant to paragraph (a) of this
subdivision with respect to all of  the  assessment  rolls  in  question
shall be determined.
  (c) A processing fee of five hundred dollars shall be added to the sum
determined  pursuant  to  paragraph  (b) of this subdivision, UNLESS THE
PROVISIONS OF PARAGRAPH (D) OF THIS SUBDIVISION ARE APPLICABLE.
  (D) IF THE APPLICANT IS RENOUNCING A STAR EXEMPTION IN ORDER TO QUALI-
FY FOR THE PERSONAL INCOME TAX CREDIT AUTHORIZED BY SUBSECTION (EEE)  OF
SECTION  SIX  HUNDRED  SIX  OF  THE TAX LAW, AND NO OTHER EXEMPTIONS ARE
BEING RENOUNCED ON THE SAME APPLICATION,  NO  PROCESSING  FEE  SHALL  BE
APPLICABLE.
  S  4.  Subdivision  3  of section 520 of the real property tax law, as
added by chapter 635 of the laws of 1978, is amended to read as follows:
  3. For purposes of any fiscal year or years during which title to such
property is transferred, such property shall  be  deemed  to  have  been
omitted  and  the assessed value thereof shall be entered on the assess-
ment roll to be used for the next tax levy  by  or  for  each  municipal
corporation  in  which  such  property  is located in the same manner as
provided by title three of article five of this chapter with respect  to
a  parcel  omitted  from the assessment roll of the previous year. A pro
rata tax shall be  extended  against  the  property  for  the  unexpired
portion  of  each fiscal year.  Such real property shall be taxed at the
tax rate or tax rates for the fiscal  year  during  which  the  transfer
occurred.    The amount of tax or taxes levied pursuant to this subdivi-
sion shall be deducted from the aggregate amount of taxes to  be  levied
for  the fiscal year immediately succeeding the fiscal year during which
the transfer occurred; PROVIDED, HOWEVER, THAT  WHERE  THE  PROPERTY  IS
RECEIVING  A  SCHOOL  TAX  RELIEF (STAR) EXEMPTION AUTHORIZED BY SECTION
FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER, THE  PORTION  OF  THE  TAX  OR
TAXES LEVIED THAT EQUALS THE RECOVERED STAR TAX SAVINGS SHALL BE APPLIED
TO  REDUCE THE AMOUNT OF AID PAYABLE TO THE SCHOOL DISTRICT UNDER SUBDI-
VISION THREE OF SECTION THIRTEEN HUNDRED SIX-A OF THIS CHAPTER.
  S 5. Subdivision 5 of section 520 of the  real  property  tax  law  is
REPEALED.
  S  6. Section 606 of the tax law is amended by adding a new subsection
(eee) to read as follows:
  (EEE) SCHOOL TAX RELIEF (STAR) CREDIT. (1) DEFINITIONS.  FOR  PURPOSES
OF THIS SUBSECTION:
  (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE, WHO
MAINTAINED  HIS OR HER PRIMARY RESIDENCE IN THIS STATE ON DECEMBER THIR-
TY-FIRST OF THE TAXABLE YEAR, WHO WAS AN OWNER OF THAT PROPERTY ON  THAT
DATE,  WHO  CANNOT  RECEIVE  THE  STAR EXEMPTION ON THAT PROPERTY EITHER

S. 6409--A                          6                         A. 9009--A

BECAUSE (I) HE OR SHE IS PRECLUDED FROM FILING AN  APPLICATION  FOR  THE
STAR EXEMPTION ON THAT PROPERTY PURSUANT TO PARAGRAPH (A) OF SUBDIVISION
SIXTEEN  OF  SECTION  FOUR  HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
LAW,  OR  BECAUSE  (II)  HE  OR SHE HAS IRREVOCABLY RENOUNCED HIS OR HER
CLAIM TO SUCH EXEMPTION IN CONJUNCTION WITH ALL OTHER OWNERS PURSUANT TO
PARAGRAPH (B) OF SUCH SUBDIVISION, AND WHO IS  REQUIRED  OR  CHOOSES  TO
FILE A RETURN UNDER THIS ARTICLE.
  (B)  "AFFILIATED  INCOME" SHALL MEAN THE COMBINED INCOME OF ALL OF THE
OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON AS OF DECEMBER  THIR-
TY-FIRST OF THE TAXABLE YEAR, AND OF ANY OWNERS' SPOUSES RESIDING PRIMA-
RILY THEREON AS OF SUCH DATE; PROVIDED THAT THE INCOME TO BE SO COMBINED
SHALL  BE  THE  "ADJUSTED GROSS INCOME" FOR THE TAXABLE YEAR AS REPORTED
FOR FEDERAL INCOME TAX PURPOSES, OR THAT WOULD BE REPORTED  AS  ADJUSTED
GROSS  INCOME  IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
REDUCED BY DISTRIBUTIONS, TO THE EXTENT  INCLUDED  IN  FEDERAL  ADJUSTED
GROSS  INCOME,  RECEIVED  FROM  AN  INDIVIDUAL RETIREMENT ACCOUNT AND AN
INDIVIDUAL RETIREMENT ANNUITY.
  (C) "ASSOCIATED FISCAL YEAR" MEANS THE  SCHOOL  DISTRICT  FISCAL  YEAR
THAT  BEGAN  ON JULY FIRST OF THE TAXABLE YEAR OR, IN THE CASE OF A CITY
SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO  OF  THE  EDUCATION
LAW, THE CITY FISCAL YEAR THAT BEGAN ON JULY FIRST OF THE TAXABLE YEAR.
  (D) "OWNER" MEANS:
  (I)  A  PERSON WHO OWNS A PARCEL IN FEE SIMPLE ABSOLUTE OR AS A TENANT
IN COMMON, A JOINT TENANT OR A TENANT BY THE ENTIRETY,
  (II) AN OWNER OF A PRESENT INTEREST IN A PARCEL UNDER A LIFE ESTATE,
  (III) A VENDEE IN POSSESSION UNDER AN INSTALLMENT CONTRACT OF SALE,
  (IV) A BENEFICIAL OWNER UNDER A TRUST,
  (V) A TENANT-STOCKHOLDER OF A COOPERATIVE  APARTMENT  CORPORATION  WHO
RESIDES  IN  A PORTION OF REAL PROPERTY OWNED BY SUCH COOPERATIVE APART-
MENT CORPORATION, TO THE EXTENT REPRESENTED  BY  HIS  OR  HER  SHARE  OR
SHARES  OF  STOCK  IN  SUCH  CORPORATION  AS  DETERMINED BY ITS OR THEIR
PROPORTIONAL RELATIONSHIP TO THE TOTAL OUTSTANDING STOCK OF  THE  CORPO-
RATION, INCLUDING THAT OWNED BY THE CORPORATION,
  (VI)  A  RESIDENT  OF A FARM DWELLING THAT IS OWNED EITHER BY A CORPO-
RATION OF WHICH THE RESIDENT IS A SHAREHOLDER, A  PARTNERSHIP  OF  WHICH
THE  RESIDENT  IS  A PARTNER, OR BY A LIMITED LIABILITY COMPANY OF WHICH
THE RESIDENT IS AN OWNER, OR
  (VII) A RESIDENT OF A DWELLING, OTHER THAN A FARM  DWELLING,  THAT  IS
OWNED  BY  A  LIMITED  PARTNERSHIP  OF  WHICH THE RESIDENT IS A PARTNER,
PROVIDED THAT THE LIMITED PARTNERSHIP THAT HOLDS TITLE TO  THE  PROPERTY
DOES NOT ENGAGE IN ANY COMMERCIAL ACTIVITY, THAT THE LIMITED PARTNERSHIP
WAS  LAWFULLY CREATED TO HOLD TITLE SOLELY FOR ESTATE PLANNING AND ASSET
PROTECTION PURPOSES, AND THAT THE  PARTNER  OR  PARTNERS  WHO  PRIMARILY
RESIDE  THEREON  PERSONALLY PAY ALL OF THE REAL PROPERTY TAXES AND OTHER
COSTS ASSOCIATED WITH THE PROPERTY'S OWNERSHIP.
  (E) "QUALIFYING TAXES" MEANS  THE  SCHOOL  DISTRICT  TAXES  THAT  WERE
LEVIED  UPON  THE TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL
YEAR THAT WERE ACTUALLY PAID BY THE TAXPAYER DURING  THE  TAXABLE  YEAR;
OR,  IN  THE  CASE  OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE
FIFTY-TWO OF THE EDUCATION LAW, THE COMBINED CITY  AND  SCHOOL  DISTRICT
TAXES  THAT  WERE  LEVIED  UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE
ASSOCIATED FISCAL YEAR THAT WERE ACTUALLY PAID BY  THE  TAXPAYER  DURING
THE  TAXABLE  YEAR.  IN  NO  CASE  SHALL  THE TERM "QUALIFYING TAXES" BE
CONSTRUED TO INCLUDE PENALTIES OR INTEREST.

S. 6409--A                          7                         A. 9009--A

  (F) "STAR EXEMPTION" MEANS THE  SCHOOL  TAX  RELIEF  (STAR)  EXEMPTION
AUTHORIZED  BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX
LAW.
  (G)  "STAR  TAX SAVINGS" MEANS THE TAX SAVING ATTRIBUTABLE TO THE STAR
EXEMPTION WITHIN A PORTION OF A SCHOOL DISTRICT, AS  DETERMINED  BY  THE
COMMISSIONER  PURSUANT  TO  SUBDIVISION  TWO OF SECTION THIRTEEN HUNDRED
SIX-A OF THE REAL PROPERTY TAX LAW.
  (H) "STAR TAX SAVINGS FIGURE"  MEANS  THE  AVERAGE  OF  THE  STAR  TAX
SAVINGS  IN  THE VARIOUS PORTIONS OF A SCHOOL DISTRICT IN THE ASSOCIATED
FISCAL YEAR, AS DETERMINED BY THE COMMISSIONER.  TWO  STAR  TAX  SAVINGS
FIGURES  SHALL  BE DETERMINED FOR EACH SCHOOL DISTRICT, ONE  RELATING TO
THE BASIC STAR EXEMPTION, AND THE OTHER RELATING TO  THE  ENHANCED  STAR
EXEMPTION.
  (2) ALLOWANCE OF CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CRED-
IT  AS PROVIDED IN PARAGRAPH THREE OR FOUR OF THIS SUBSECTION, WHICHEVER
IS APPLICABLE, AGAINST THE TAXES IMPOSED BY THIS ARTICLE REDUCED BY  THE
CREDITS  PERMITTED  BY  THIS ARTICLE, PROVIDED THAT THE REQUIREMENTS SET
FORTH IN THE APPLICABLE SUBSECTION ARE SATISFIED. IF THE CREDIT  EXCEEDS
THE TAX AS SO REDUCED FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL
BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTER-
EST.  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  BASIC  STAR CREDIT. (A) BEGINNING WITH TAXABLE
YEARS AFTER TWO THOUSAND FIFTEEN, A BASIC STAR CREDIT SHALL BE AVAILABLE
TO A QUALIFIED TAXPAYER IF THE AFFILIATED  INCOME  OF  THE  PARCEL  THAT
SERVES AS THE TAXPAYER'S PRIMARY RESIDENCE IS LESS THAN OR EQUAL TO FIVE
HUNDRED THOUSAND DOLLARS.
  (B)  SUBJECT  TO THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH,
SUCH BASIC STAR CREDIT SHALL BE THE LESSER OF:
  (I) THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR
  (II) THE TAXPAYER'S QUALIFYING TAXES.
  (C) IF THE QUALIFYING TAXES PAID BY THE TAXPAYER  CONSTITUTED  ONLY  A
PORTION  OF  THE  TOTAL  SCHOOL DISTRICT TAXES THAT WERE LEVIED UPON THE
TAXPAYER'S PRIMARY RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR,  IN  THE
CASE  OF  A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF
THE EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER  CONSTI-
TUTED  ONLY  A  PORTION  OF  THE TOTAL COMBINED CITY AND SCHOOL DISTRICT
TAXES THAT WERE LEVIED UPON THE TAXPAYER'S  PRIMARY  RESIDENCE  FOR  THE
ASSOCIATED  FISCAL  YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER SHALL BE
EQUAL TO THE AMOUNT DETERMINED PURSUANT  TO  SUBPARAGRAPH  (B)  OF  THIS
PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS.
  (4)  DETERMINATION OF ENHANCED STAR CREDIT. (A) BEGINNING WITH TAXABLE
YEARS AFTER TWO THOUSAND FIFTEEN,  AN  ENHANCED  STAR  CREDIT  SHALL  BE
AVAILABLE TO A QUALIFIED TAXPAYER WHERE BOTH OF THE FOLLOWING CONDITIONS
ARE SATISFIED:
  (I)  ALL  OF  THE  OWNERS  OF THE PARCEL THAT SERVES AS THE TAXPAYER'S
PRIMARY RESIDENCE ARE AT LEAST SIXTY-FIVE YEARS OF AGE  AS  OF  DECEMBER
THIRTY-FIRST  OF THE TAXABLE YEAR OR, IN THE CASE OF PROPERTY OWNED BY A
MARRIED COUPLE OR BY SIBLINGS, AT LEAST ONE OF THE OWNERS  IS  AT  LEAST
SIXTY-FIVE  YEARS  OF  AGE AS OF THAT DATE. THE TERMS "SIBLINGS" AS USED
HEREIN SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION FOUR  HUNDRED
SIXTY-SEVEN  OF THE REAL PROPERTY TAX LAW. IN THE CASE OF PROPERTY OWNED
BY A MARRIED COUPLE, ONE OF WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER, THE
CREDIT, ONCE ALLOWED, SHALL NOT BE DISALLOWED BECAUSE OF  THE  DEATH  OF

S. 6409--A                          8                         A. 9009--A

THE  OLDER  SPOUSE SO LONG AS THE SURVIVING SPOUSE IS AT LEAST SIXTY-TWO
YEARS OF AGE AS OF DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR.
  (II) THE AFFILIATED INCOME OF THE PARCEL THAT SERVES AS THE TAXPAYER'S
PRIMARY  RESIDENCE  IS LESS THAN OR EQUAL TO THE INCOME STANDARD FOR THE
TAXABLE YEAR ESTABLISHED  BY  THE  COMMISSIONER  FOR  THE  CORRESPONDING
"INCOME  TAX  YEAR"  PURSUANT TO CLAUSE (C) OF SUBPARAGRAPH (I) OF PARA-
GRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE
REAL PROPERTY TAX LAW FOR PURPOSES OF THE ENHANCED STAR EXEMPTION.
  (B) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (C) OF  THIS  PARAGRAPH,
SUCH CREDIT SHALL BE THE LESSER OF:
  (I) THE ENHANCED STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT, OR
  (II) THE TAXPAYER'S QUALIFYING TAXES.
  (C)  IF  THE  QUALIFYING TAXES PAID BY THE TAXPAYER CONSTITUTED ONLY A
PORTION OF THE TOTAL SCHOOL DISTRICT TAXES THAT  WERE  LEVIED  UPON  THE
TAXPAYER'S  PRIMARY  RESIDENCE FOR THE ASSOCIATED FISCAL YEAR OR, IN THE
CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE  FIFTY-TWO  OF
THE  EDUCATION LAW, IF THE QUALIFYING TAXES PAID BY THE TAXPAYER CONSTI-
TUTED ONLY A PORTION OF THE TOTAL  COMBINED  CITY  AND  SCHOOL  DISTRICT
TAXES  THAT  WERE  LEVIED  UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE
ASSOCIATED FISCAL YEAR, THE CREDIT ALLOWABLE TO SUCH TAXPAYER  SHALL  BE
EQUAL  TO  THE  AMOUNT  DETERMINED  PURSUANT TO SUBPARAGRAPH (B) OF THIS
PARAGRAPH MULTIPLIED BY THE PERCENTAGE THAT SUCH PORTION REPRESENTS.
  (5) DISQUALIFICATION. A TAXPAYER SHALL  NOT  QUALIFY  FOR  THE  CREDIT
AUTHORIZED  BY  THIS SUBSECTION IF THE PARCEL THAT SERVES AS THE TAXPAY-
ER'S PRIMARY RESIDENCE RECEIVED THE STAR  EXEMPTION  ON  THE  ASSESSMENT
ROLL  UPON  WHICH  SCHOOL  DISTRICT TAXES FOR THE ASSOCIATED FISCAL YEAR
WHERE LEVIED. PROVIDED, HOWEVER,  THAT  THE  TAXPAYER  MAY  REMOVE  THIS
DISQUALIFICATION  BY  RENOUNCING  THE  EXEMPTION AND MAKING ANY REQUIRED
PAYMENTS BY DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR,  AS  PROVIDED  BY
SUBDIVISION  SIXTEEN  OF  SECTION  FOUR  HUNDRED TWENTY-FIVE OF THE REAL
PROPERTY TAX LAW.
  (6) SPECIAL CASES. (A) IN THE CASE OF PROPERTY CONSISTING OF A COOPER-
ATIVE APARTMENT CORPORATION THAT IS DESCRIBED BY PARAGRAPH (K) OF SUBDI-
VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY  TAX
LAW,  THE  AMOUNT  OF THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE
APARTMENT SHALL BE EQUAL TO SIXTY PERCENT OF THE BASIC STAR TAX  SAVINGS
FIGURE  FOR  THE  SCHOOL DISTRICT, OR SIXTY PERCENT OF THE ENHANCED STAR
TAX SAVINGS FIGURE FOR THE SCHOOL  DISTRICT,  WHICHEVER  IS  APPLICABLE.
PROVIDED,  HOWEVER,  THAT  IN THE CASE OF A COOPERATIVE APARTMENT CORPO-
RATION THAT IS DESCRIBED BY SUBPARAGRAPH (IV) OF PARAGRAPH (K) OF SUBDI-
VISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY  TAX
LAW,  THE CREDIT ALLOWABLE WITH RESPECT TO A COOPERATIVE APARTMENT SHALL
BE EQUAL TO TWENTY PERCENT OF SUCH FIGURE.
  (B) IN THE CASE OF PROPERTY  CONSISTING  OF  A  MOBILE  HOME  THAT  IS
DESCRIBED  IN  PARAGRAPH  (1) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX  LAW,  THE  AMOUNT  OF  THE  CREDIT
ALLOWABLE WITH RESPECT TO SUCH MOBILE HOME SHALL BE EQUAL TO TWENTY-FIVE
PERCENT  OF   THE BASIC STAR TAX SAVINGS FIGURE FOR THE SCHOOL DISTRICT,
OR TWENTY-FIVE PERCENT OF THE ENHANCED STAR TAX SAVINGS FIGURE  FOR  THE
SCHOOL DISTRICT, WHICHEVER IS APPLICABLE.
  (C)  IN THE CASE OF A PRIMARY RESIDENCE THAT IS LOCATED IN TWO OR MORE
SCHOOL DISTRICTS, THE APPLICABLE BASIC OR ENHANCED    STAR  TAX  SAVINGS
FIGURE SHALL BE DETERMINED AS FOLLOWS:
  (I)  DETERMINE  THE  SUM  OF THE TOTAL SCHOOL DISTRICT TAXES THAT WERE
LEVIED UPON THE TAXPAYER'S PRIMARY RESIDENCE FOR THE  ASSOCIATED  FISCAL
YEAR BY EACH OF THE SCHOOL DISTRICTS IN WHICH THE RESIDENCE IS LOCATED;

S. 6409--A                          9                         A. 9009--A

  (II)  FOR  EACH SUCH SCHOOL DISTRICT, DIVIDE THE TOTAL SCHOOL DISTRICT
TAXES THAT WERE LEVIED UPON THE TAXPAYER'S  PRIMARY  RESIDENCE  BY  THAT
SCHOOL  DISTRICT FOR THE ASSOCIATED FISCAL YEAR BY THE SUM DETERMINED IN
CLAUSE (I) OF THIS SUBPARAGRAPH. EXPRESS THE RESULT AS A PERCENTAGE WITH
TWO DECIMAL PLACES;
  (III)  FOR  EACH  SUCH SCHOOL DISTRICT, MULTIPLY THE PERCENTAGE DETER-
MINED IN CLAUSE (II) OF THIS SUBPARAGRAPH BY THE BASIC OR ENHANCED  STAR
TAX SAVINGS FIGURE, WHICHEVER IS APPLICABLE; AND
  (IV) ADD THE PRODUCTS DETERMINED IN CLAUSE (III) OF THIS SUBPARAGRAPH.
  (7) DISCLOSURE OF INCOMES. WHERE THE COMMISSIONER HAS DENIED A TAXPAY-
ER'S  CLAIM  FOR THE CREDIT AUTHORIZED BY THIS SUBSECTION IN WHOLE OR IN
PART ON THE GROUNDS THAT THE AFFILIATED INCOME OF THE PARCEL IN QUESTION
EXCEEDS THE APPLICABLE LIMIT, THE COMMISSIONER SHALL HAVE THE  AUTHORITY
TO  REVEAL TO THAT TAXPAYER THE NAMES AND INCOMES OF THE OTHER TAXPAYERS
WHOSE INCOMES WERE  INCLUDED  IN  THE  COMPUTATION  OF  SUCH  AFFILIATED
INCOME.
  (8)  PROOF OF CLAIM. THE COMMISSIONER MAY REQUIRE A QUALIFIED TAXPAYER
TO FURNISH THE FOLLOWING INFORMATION IN SUPPORT OF HIS OR HER CLAIM  FOR
CREDIT  UNDER  THIS  SUBSECTION:  AFFILIATED  INCOME,  THE  TOTAL SCHOOL
DISTRICT TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR OR,
IN THE CASE OF A CITY SCHOOL DISTRICT THAT IS SUBJECT TO ARTICLE  FIFTY-
TWO  OF  THE  EDUCATION LAW, THE TOTAL COMBINED CITY AND SCHOOL DISTRICT
TAXES LEVIED ON THE PROPERTY FOR THE ASSOCIATED FISCAL YEAR, THE  QUALI-
FYING  TAXES PAID BY THE TAXPAYER, THE NAMES AND TAXPAYER IDENTIFICATION
NUMBERS OF ALL OWNERS OF THE PROPERTY AND SPOUSES WHO  PRIMARILY  RESIDE
ON THE PROPERTY, THE PARCEL IDENTIFICATION NUMBER AND ALL OTHER INFORMA-
TION THAT MAY BE REQUIRED BY THE COMMISSIONER TO DETERMINE THE CREDIT.
  (9)  RETURNS. 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
PURSUANT  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
AVAILABLE SUCH FORMS AND INSTRUCTIONS FOR FILING SUCH RETURNS.
  (10) ADMINISTRATION. 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 THAT 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

S. 6409--A                         10                         A. 9009--A

SHALL,  SUBJECT  TO  SUCH  CONDITIONS AS MAY BE SET BY THE COMMISSIONER,
RECEIVE SUCH INFORMATION (A) THAT IS CONTAINED IN ANY RETURN FILED UNDER
THIS ARTICLE BY A MEMBER OF HIS OR HER HOUSEHOLD FOR  THE  TAXABLE  YEAR
FOR  WHICH THE CREDIT IS CLAIMED, AND (B) THAT THE COMMISSIONER FINDS IS
RELEVANT AND MATERIAL TO THE ISSUE OF WHETHER SUCH  CLAIM  WAS  PROPERLY
DENIED.
  (11) 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  7.  The  opening  paragraph  of  subparagraph (a) of paragraph 2 of
subsection (n-1) of section 606 of the tax law, as added by section 1 of
subpart B of part C of chapter 20 of the laws of  2015,  is  amended  to
read as follows:
  To be eligible for the credit, the taxpayer (or taxpayers filing joint
returns)  on  the  personal income tax return filed for the taxable year
two years prior, must have (i) been a resident, (ii) owned and primarily
resided in real property receiving EITHER the STAR exemption  authorized
by  section four hundred twenty-five of the real property tax law OR THE
SCHOOL TAX RELIEF CREDIT AUTHORIZED BY SUBSECTION (EEE) OF THIS SECTION,
and (iii) had qualified gross income no greater than two hundred  seven-
ty-five  thousand  dollars.  Provided,  however, that no credit shall be
allowed if any of the following apply:
  S 8. This act shall take effect immediately, provided,  however,  that
sections  six  and seven of this act shall apply to taxable years begin-
ning on or after January 1, 2016.

                                 PART B

  Section 1. Subparagraph (i) of  paragraph  (a)  of  subdivision  2  of
section  1306-a of the real property tax law, as amended by section 6 of
part N of chapter 58 of the laws of 2011, is amended to read as follows:
  (i) The tax savings for each parcel receiving the exemption authorized
by section four hundred twenty-five of this chapter shall be computed by
subtracting the amount actually  levied  against  the  parcel  from  the
amount  that  would  have been levied if not for the exemption, provided
however, that [beginning with] FOR the two thousand eleven-two  thousand
twelve  THROUGH  TWO THOUSAND FIFTEEN-TWO THOUSAND SIXTEEN school [year]
YEARS, the tax savings applicable to any "portion" (which as used herein
shall mean that part of  an  assessing  unit  located  within  a  school
district) shall not exceed the tax savings applicable to that portion in
the  prior  school  year multiplied by one hundred two percent, with the
result rounded to the nearest dollar; AND PROVIDED FURTHER  THAT  BEGIN-
NING  WITH  THE TWO THOUSAND SIXTEEN-TWO THOUSAND SEVENTEEN SCHOOL YEAR,
THE TAX SAVINGS APPLICABLE TO ANY  PORTION  SHALL  NOT  EXCEED  THE  TAX
SAVINGS  FOR  THE  PRIOR YEAR. The tax savings attributable to the basic
and enhanced exemptions shall be calculated separately. It shall be  the
responsibility  of the commissioner to calculate tax savings limitations
for purposes of this subdivision.
  S 2. This act shall take effect immediately.

                                 PART C

S. 6409--A                         11                         A. 9009--A

  Section 1. Subparagraphs (iv), (v) and (vi) of paragraph (b) of subdi-
vision 4 of section 425 of the real property tax law, subparagraph  (iv)
as  amended  by  chapter  451  of  the laws of 2015, subparagraph (v) as
amended by section 10 of part W of chapter  56  of  the  laws  of  2010,
subparagraph  (vi)  as amended by section 3 of part (E) of chapter 83 of
the laws of 2002, and clause (E) of subparagraph (vi) as further amended
by section 1 of part W of chapter 56 of the laws of 2010, are amended to
read as follows:
  (iv) Effective with applications for the enhanced exemption  on  final
assessment  rolls to be completed in two thousand [three] SEVENTEEN, the
application form shall indicate that the owners of the property and  any
owners'  spouses  residing on the premises [may] MUST ENROLL IN THE STAR
INCOME VERIFICATION PROGRAM ADMINISTERED BY THE DEPARTMENT IN ORDER  FOR
THE  PROPERTY  TO BE ELIGIBLE FOR AN ENHANCED EXEMPTION PURSUANT TO THIS
SUBDIVISION. TO ENROLL THEREIN, THEY MUST authorize the assessor to have
their income eligibility verified annually  thereafter  by  the  [state]
department [of taxation and finance, in lieu of furnishing copies of the
applicable  income  tax  return  or returns with the application. If the
owners of the property and any owners' spouses residing on the  premises
elect  to  participate in this program, which shall be known as the STAR
income verification program, they] AND must furnish their taxpayer iden-
tification numbers in order to facilitate matching with records  of  the
department. Thereafter, their income eligibility shall be verified annu-
ally  by  the  department  and  the  assessor  shall  not request income
documentation from them, unless such  department  advises  the  assessor
that they do not satisfy the applicable income eligibility requirements,
or  that  it  is unable to determine whether they satisfy those require-
ments, OR UNLESS ONE OR MORE OF THE OWNERS OR SPOUSES IN  QUESTION  WERE
NOT  REQUIRED  TO  FILE  A NEW YORK INCOME TAX RETURN FOR THE APPLICABLE
INCOME TAX YEAR AND DID NOT DO SO.  All APPLICANTS FOR THE ENHANCED STAR
EXEMPTION AND ALL assessing units shall be required  to  participate  in
this program.
  (v)  (A) Except in the case of a city with a population of one million
or more, the assessor shall forward to the department, in the  time  and
manner  required  by the department, information identifying the persons
[who have  elected  to  participate  in  the  STAR  income  verification
program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB-
LISHED  BY THIS PARAGRAPH.  After receiving the department's response or
responses, the assessing authority shall cause notices to be  mailed  to
participants  as  provided  by paragraph (b) of subdivision five of this
section.  Information  provided  to  the  department  identifying   such
persons,  and responses obtained from such department shall be confiden-
tial and shall not be subject to disclosure under  article  six  of  the
public officers law.
  (B)  In  the case of a city of one million or more, the assessor shall
forward to the department [of taxation and finance],  in  the  time  and
manner  required  by the department, information identifying the persons
[who have  elected  to  participate  in  the  STAR  income  verification
program] WHO ARE ENROLLED IN THE STAR INCOME VERIFICATION PROGRAM ESTAB-
LISHED  BY  THIS PARAGRAPH.  The department shall advise the assessor of
its findings in the manner provided by the agreement  executed  pursuant
to  section  one  hundred  seventy-one-o of the tax law. After receiving
such response or responses, the assessing authority shall cause  notices
to be mailed to participants as provided by paragraph (b) of subdivision
five of this section. Information provided to the department identifying
such  persons,  and  responses  obtained  from  such department shall be

S. 6409--A                         12                         A. 9009--A

confidential and shall not be subject to disclosure under article six of
the public officers law.
  (vi)  Notwithstanding  the provisions of subparagraphs (iv) and (v) of
this paragraph, which establish  a  STAR  income  verification  program,
income  documentation  must  be  submitted to the assessor in connection
with each of the following:
  (A) Initial applications for the enhanced STAR exemption;
  (B) Renewal applications [submitted by a person or  persons  who  have
not  elected  to  participate  in  the STAR income verification program]
WHERE ONE OR MORE OF THE OWNERS OR SPOUSES IN QUESTION WERE NOT REQUIRED
TO FILE A NEW YORK INCOME TAX RETURN FOR THE APPLICABLE INCOME TAX  YEAR
AND DID NOT DO SO;
  (C)  Applications  that  would  allow  an enhanced exemption to resume
after having been discontinued;
  (D) Applications submitted by a person or persons who  had  previously
qualified  for  the  enhanced exemption but not in the assessing unit in
question; and
  (E) Applications with respect to which the department [of taxation and
finance] has advised the assessor [through the commissioner] that it  is
unable  to  determine  whether a participant or participants in the STAR
income verification program satisfy the income eligibility requirements.
  S 2. Paragraph (c) of subdivision 6 of section 425 of the real proper-
ty tax law, as amended by chapter 570 of the laws of 1998, is amended to
read as follows:
  (c) Senior citizens exemption.  When  property  is  eligible  for  the
senior citizens exemption authorized by section four hundred sixty-seven
of this article, it shall also be deemed to be eligible for the enhanced
exemption  authorized  by  this  section  for  certain  senior citizens,
provided, where applicable, that the age requirement  established  by  a
municipal  corporation  pursuant  to  subdivision  five  of section four
hundred sixty-seven of this article is satisfied, and no separate appli-
cation need be filed therefor.   PROVIDED HOWEVER, THAT  BEGINNING  WITH
FINAL ASSESSMENT ROLLS COMPLETED IN TWO THOUSAND SEVENTEEN, SUCH PROPER-
TY  SHALL  NOT BE ELIGIBLE FOR SUCH ENHANCED EXEMPTION UNLESS THE OWNERS
AND ANY OWNERS' SPOUSES RESIDING THEREON HAVE  ENROLLED  IN  THE  INCOME
VERIFICATION PROGRAM ESTABLISHED BY SUBDIVISION FOUR OF THIS SECTION.
  S  3.  This  act  shall take effect immediately and shall apply to the
administration of the enhanced STAR exemption authorized by  subdivision
4  of  section  425  of  the  real property tax law beginning with final
assessment rolls to be completed in 2017.

                                 PART D

  Section 1. Subdivision 6 of section 425 of the real property  tax  law
is amended by adding a new paragraph (a-2) to read as follows:
  (A-2)  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, WHERE A
RENEWAL APPLICATION FOR THE  "ENHANCED"  STAR  EXEMPTION  AUTHORIZED  BY
SUBDIVISION  FOUR  OF  THIS  SECTION HAS NOT BEEN FILED ON OR BEFORE THE
TAXABLE STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED  FOR
THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY,
NO  LATER  THAN  THE  LAST DAY FOR PAYING SCHOOL TAXES WITHOUT INCURRING
INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE COMMISSIONER ASKING
HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE  EXEMPTION.  SUCH
REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND
SHALL  BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS AND
CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. AFTER CONSULT-

S. 6409--A                         13                         A. 9009--A

ING WITH THE ASSESSOR, THE COMMISSIONER MAY EXTEND THE  FILING  DEADLINE
AND  GRANT  THE EXEMPTION IF THE COMMISSIONER IS SATISFIED THAT (I) GOOD
CAUSE EXISTED FOR THE FAILURE TO FILE THE  RENEWAL  APPLICATION  BY  THE
TAXABLE  STATUS  DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED
TO THE EXEMPTION. THE COMMISSIONER SHALL  MAIL  NOTICE  OF  HIS  OR  HER
DETERMINATION  TO  SUCH  OWNER  AND  THE  ASSESSOR. IF THE DETERMINATION
STATES THAT THE COMMISSIONER HAS GRANTED  THE  EXEMPTION,  THE  ASSESSOR
SHALL  THEREUPON  BE  AUTHORIZED  AND DIRECTED TO CORRECT THE ASSESSMENT
ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR  CONTROL  OF  THE
ASSESSMENT   ROLL,  TO  DIRECT  THAT  PERSON  TO  MAKE  THE  APPROPRIATE
CORRECTIONS. IF THE CORRECTION IS  NOT  MADE  BEFORE  SCHOOL  TAXES  ARE
LEVIED,  THE  FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTA-
TION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE
THREE OF ARTICLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDING-
LY.
  S 2. Section 467 of the real property tax law is amended by  adding  a
new subdivision 8-a to read as follows:
  8-A.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, THE LOCAL
GOVERNING BODY OF A MUNICIPAL CORPORATION THAT IS AUTHORIZED TO ADOPT  A
LOCAL  LAW  PURSUANT  TO  SUBDIVISION  EIGHT  OF THIS SECTION IS FURTHER
AUTHORIZED TO ADOPT A LOCAL LAW PROVIDING THAT WHERE A RENEWAL  APPLICA-
TION  FOR THE EXEMPTION AUTHORIZED BY THIS SECTION HAS NOT BEEN FILED ON
OR BEFORE THE TAXABLE STATUS DATE, AND  THE  OWNER  BELIEVES  THAT  GOOD
CAUSE  EXISTED  FOR  THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT
DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING TAXES WITHOUT
INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE  ASSESSOR
ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION.
SUCH  REQUEST  SHALL  CONTAIN  AN  EXPLANATION  OF  WHY THE DEADLINE WAS
MISSED, AND SHALL BE ACCOMPANIED BY A  RENEWAL  APPLICATION,  REFLECTING
THE  FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE.
THE ASSESSOR MAY EXTEND THE FILING DEADLINE AND GRANT THE  EXEMPTION  IF
HE  OR  SHE  IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO
FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND  THAT  (II)
THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE ASSESSOR SHALL
MAIL  NOTICE  OF  HIS OR HER DETERMINATION TO THE OWNER. IF THE DETERMI-
NATION STATES THAT THE ASSESSOR HAS GRANTED THE  EXEMPTION,  HE  OR  SHE
SHALL  THEREUPON  BE  AUTHORIZED  AND DIRECTED TO CORRECT THE ASSESSMENT
ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR  CONTROL  OF  THE
ASSESSMENT   ROLL,  TO  DIRECT  THAT  PERSON  TO  MAKE  THE  APPROPRIATE
CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE TAXES ARE LEVIED,  THE
FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTATION OF THE TAX
SHALL  BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTI-
CLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDINGLY.
  S 3. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

                                 PART E

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (eee) to read as follows:
  (EEE) SCHOOL TAX REDUCTION CREDIT FOR RESIDENTS OF A CITY WITH A POPU-
LATION OVER ONE MILLION. (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOU-
SAND FIFTEEN, A SCHOOL TAX REDUCTION CREDIT SHALL BE ALLOWED TO A  RESI-
DENT  INDIVIDUAL  OF  THE  STATE  WHO  IS  A  RESIDENT  OF A CITY WITH A
POPULATION OVER ONE MILLION, AS PROVIDED  BELOW.  THE  CREDIT  SHALL  BE
ALLOWED  AGAINST  THE  TAXES  AUTHORIZED  BY THIS ARTICLE REDUCED BY THE

S. 6409--A                         14                         A. 9009--A

CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX  AS  SO
REDUCED,  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
WILL BE PAID THEREON. FOR PURPOSES OF THIS SUBSECTION, NO  CREDIT  SHALL
BE  GRANTED  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.
  (2)  THE AMOUNT OF THE CREDIT UNDER THIS PARAGRAPH SHALL BE DETERMINED
BASED UPON THE TAXPAYER'S INCOME AS  DEFINED  IN  SUBPARAGRAPH  (II)  OF
PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF
THE  REAL  PROPERTY  TAX  LAW.  FOR  THE PURPOSES OF THIS PARAGRAPH, ANY
TAXPAYER UNDER SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH  WITH  INCOME
OF  MORE  THAN  TWO  HUNDRED  FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE A
CREDIT.
  (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN
THE CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND  OF
A SURVIVING SPOUSE, THE CREDIT SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS.
  (B)  ALL  OTHERS.  IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A
HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN,  THE  CREDIT
SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS.
  (3) PART-YEAR RESIDENTS. IF A TAXPAYER CHANGES STATUS DURING THE TAXA-
BLE  YEAR FROM RESIDENT TO NONRESIDENT, OR FROM NONRESIDENT TO RESIDENT,
THE SCHOOL TAX REDUCTION CREDIT AUTHORIZED BY THIS SUBSECTION  SHALL  BE
PRORATED ACCORDING TO THE NUMBER OF MONTHS IN THE PERIOD OF RESIDENCE.
  S  2.  Paragraphs 1 and 2 of subsection (e) of section 1310 of the tax
law, paragraph 1 as amended by section 3 of part A of chapter 56 of  the
laws  of  1998, paragraph 2 as amended by section 1 of part R of chapter
57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph  2  as
amended  by  section  4 of part M of chapter 57 of the laws of 2009, are
amended to read as follows:
  (1) For taxable years beginning after nineteen  hundred  ninety-seven,
AND  ENDING  BEFORE  TWO  THOUSAND SIXTEEN, a state school tax reduction
credit shall be allowed as provided in the following tables. The  credit
shall be allowed against the taxes authorized by this article 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. For purposes of this subsection, no
credit shall be  granted  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.
  (2)  The amount of the credit under this paragraph shall be determined
based upon the taxpayer's income as  defined  in  subparagraph  (ii)  of
paragraph (b) of subdivision four of section four hundred twenty-five of
the  real  property  tax  law.  For  the purposes of this paragraph, any
taxpayer under subparagraphs (A) and (B) of this paragraph  with  income
of  more  than  two  hundred  fifty thousand dollars shall not receive a
credit.
  Beginning in the two thousand ten tax year and each tax year thereaft-
er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty  thou-
sand  dollar"  income  limitation  shall  be  adjusted  by  applying the
inflation factor set forth herein, and rounding each result to the near-
est multiple of one hundred dollars. The department shall establish  the
income  limitation  to  be  associated  with each subsequent tax year by

S. 6409--A                         15                         A. 9009--A

applying the inflation factor set  forth  herein  to  the  figures  that
define  the  income limitation that were applicable to the preceding tax
year, as determined  pursuant  to  this  [subdivision]  SUBSECTION,  and
rounding  each  result  to  the nearest multiple of one hundred dollars.
Such determination shall be made no later than March first, two thousand
ten and each year thereafter.
  [For purposes of this  paragraph,  the  "inflation  factor"  shall  be
determined  in  accordance  with the provisions set forth in subdivision
fifteen of section one hundred seventy-eight of this chapter.]
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]- 2015       $125
  (B) All others. In the case of an unmarried individual, a  head  of  a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]- 2015       $62.50
  S  3.  Paragraphs  1 and 2 of subsection (c) of section 11-1706 of the
administrative code of the city of New York, paragraph 1 as  amended  by
section  6  of  part A of chapter 56 of the laws of 1998, paragraph 2 as
amended by section 2 of part R of chapter 57 of the  laws  of  2008  and
subparagraphs (A) and (B) of paragraph 2 as amended by section 5 of part
M of chapter 57 of the laws of 2009, are amended to read as follows:
  (1)  For  taxable  years beginning after nineteen hundred ninety-seven
AND ENDING BEFORE TWO THOUSAND SIXTEEN, a  state  school  tax  reduction
credit  shall be allowed as provided in the following tables. The credit
shall be allowed against the taxes authorized by this article 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. For purposes of this [subdivision]
SUBSECTION, no credit shall be granted 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.
  (2)  The amount of the credit under this paragraph shall be determined
based upon the taxpayer's income as  defined  in  subparagraph  (ii)  of
paragraph (b) of subdivision four of section four hundred twenty-five of
the  real property tax law. For purposes of this paragraph, any taxpayer
under subparagraphs (A) and (B) of this paragraph with  income  of  more
than two hundred fifty thousand dollars shall not receive a credit.
  Beginning in the two thousand ten tax year and each tax year thereaft-
er  THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou-
sand dollar"  income  limitation  shall  be  adjusted  by  applying  the
inflation factor set forth herein, and rounding each result to the near-
est  multiple of one hundred dollars. The department shall establish the
income limitation to be associated with  each  subsequent  tax  year  by
applying  the  inflation  factor  set  forth  herein to the figures that
define the income limitation that were applicable to the  preceding  tax

S. 6409--A                         16                         A. 9009--A

year,  as  determined  pursuant  to  this  [subdivision] SUBSECTION, and
rounding each result to the nearest multiple  of  one  hundred  dollars.
Such determination shall be made no later than March first, two thousand
ten and each year thereafter.
  [For  purposes  of  this  paragraph,  the  "inflation factor" shall be
determined in accordance with the provisions set  forth  in  subdivision
fifteen of section one hundred seventy-eight of the tax law.]
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]- 2015       $125
  (B)  All  others.  In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]- 2015       $62.50
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.

                                 PART F

  Section 1. Section 425 of the real property  tax  law  is  amended  by
adding a new subdivision 16 to read as follows:
  (16)  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, WHEN THE
COMMISSIONER FINDS THAT A PROPERTY  OWNER  WAS  ELIGIBLE  FOR  THE  STAR
EXEMPTION  AUTHORIZED  BY  THIS  SECTION  ON AN ASSESSMENT ROLL, BUT THE
EXEMPTION WAS NOT TAKEN INTO ACCOUNT IN THE CALCULATION OF THE  PROPERTY
OWNER'S SCHOOL TAX BILL DUE TO AN ADMINISTRATIVE ERROR, AND THE PROPERTY
OWNER  OR  HIS  OR HER AGENT PAID AN EXCESSIVE AMOUNT OF SCHOOL TAXES ON
THE PROPERTY AS A RESULT, THE COMMISSIONER OF TAXATION  AND  FINANCE  IS
AUTHORIZED  TO REMIT DIRECTLY TO THE PROPERTY OWNER THE TAX SAVINGS THAT
THE STAR EXEMPTION WOULD HAVE YIELDED IF THE  STAR  EXEMPTION  HAD  BEEN
TAKEN  INTO  ACCOUNT  IN  THE  CALCULATION OF THAT TAXPAYER'S SCHOOL TAX
BILL. THE AMOUNTS PAYABLE UNDER THIS SECTION  SHALL  BE  PAID  FROM  THE
ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS
PURSUANT  TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN
OF THIS SECTION. WHERE SUCH A PAYMENT HAS BEEN MADE, NEITHER THE PROPER-
TY OWNER NOR HIS OR HER AGENT SHALL BE  ENTITLED  TO  A  REFUND  OF  THE
EXCESSIVE  AMOUNT  OF SCHOOL TAXES PAID ON ACCOUNT OF THE ADMINISTRATIVE
ERROR.
  S 2. This act shall take effect immediately.

                                 PART G

  Section 1. Paragraph 10 of subsection (g) of section 658  of  the  tax
law is REPEALED.
  S  2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin-
istrative code of the city of New York is REPEALED.
  S 3. Paragraph 5 of subsection (u) of section 685 of the  tax  law  is
REPEALED.

S. 6409--A                         17                         A. 9009--A

  S 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis-
trative code of the city of New York is REPEALED.
  S  5. Section 23 of part U of chapter 61 of the laws of 2011, amending
the real property tax law and other laws relating to establishing stand-
ards for electronic tax administration, as amended by section 1 of  part
H of chapter 59 of the laws of 2013, is amended to read as follows:
  S 23. This act shall take effect immediately; provided, however, that:
  (a)  the amendments to section 29 of the tax law made by section thir-
teen of this act shall apply to tax documents filed or  required  to  be
filed  on  or  after  the  sixtieth  day after which this act shall have
become a law [and shall expire  and  be  deemed  repealed  December  31,
2016],  provided  however that the amendments to paragraph 4 of subdivi-
sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e)
of section 29 of the tax law made by section thirteen of this  act  with
regard  to individual taxpayers shall take effect September 15, 2011 but
only if the commissioner of taxation and finance  has  reported  in  the
report  required  by section seventeen-b of this act that the percentage
of individual taxpayers electronically  filing  their  2010  income  tax
returns is less than eighty-five percent; provided that the commissioner
of  taxation  and  finance  shall  notify  the legislative bill drafting
commission of the date of the issuance of such report in order that  the
commission  may  maintain  an accurate and timely effective data base of
the official text of the laws of the state of New York in furtherance of
effectuating the provisions of section 44 of  the  legislative  law  and
section 70-b of the public officers law;
  (b)  sections  fourteen,  fifteen,  sixteen  and seventeen of this act
shall take effect September 15, 2011 but only  if  the  commissioner  of
taxation  and  finance  has  reported  in the report required by section
seventeen-b of this act that  the  percentage  of  individual  taxpayers
electronically  filing their 2010 income tax returns is less than eight-
y-five percent; AND
  (c) sections fourteen-a and fifteen-a of this act  shall  take  effect
September  15,  2011 and expire and be deemed repealed December 31, 2012
but shall take effect only if the commissioner of taxation  and  finance
has  reported  in the report required by section seventeen-b of this act
that the percentage of individual taxpayers electronically filing  their
2010 income tax returns is eighty-five percent or greater[;
  (d)  sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this
act shall take effect January 1, 2017 but only if  the  commissioner  of
taxation  and  finance  has  reported  in the report required by section
seventeen-b of this act that  the  percentage  of  individual  taxpayers
electronically  filing their 2010 income tax returns is less than eight-
y-five percent; and
  (e) sections twenty-one and twenty-one-a of this act shall expire  and
be deemed repealed December 31, 2016].
  S  6.  Subsection (aa) of section 685 of the tax law is REPEALED and a
new subsection (aa) is added to read as follows:
  (AA) TAX PREPARER PENALTY. -- (1) IF AN INCOME TAX  PREPARER  TAKES  A
POSITION  ON  ANY  RETURN  THAT  EITHER UNDERSTATES THE TAX LIABILITY OR
INCREASES THE CLAIM FOR A REFUND, AND THE PREPARER KNEW,  OR  REASONABLY
SHOULD  HAVE KNOWN, THAT SAID POSITION WAS NOT PROPER, AND SUCH POSITION
WAS NOT ADEQUATELY DISCLOSED ON THE RETURN OR IN A STATEMENT ATTACHED TO
THE RETURN, SUCH INCOME TAX PREPARER SHALL PAY A PENALTY OF BETWEEN  ONE
HUNDRED AND ONE THOUSAND DOLLARS.
  (2)  IF  AN  INCOME  TAX  PREPARER TAKES A POSITION ON ANY RETURN THAT
EITHER UNDERSTATES THE TAX LIABILITY OR INCREASES THE CLAIM FOR A REFUND

S. 6409--A                         18                         A. 9009--A

AND THE UNDERSTATEMENT OF THE TAX LIABILITY OR THE INCREASED  CLAIM  FOR
REFUND IS DUE TO THE PREPARER'S RECKLESS OR INTENTIONAL DISREGARD OF THE
LAW,  RULES OR REGULATIONS, SUCH PREPARER SHALL PAY A PENALTY OF BETWEEN
FIVE  HUNDRED AND FIVE THOUSAND DOLLARS. THE AMOUNT OF THE PENALTY PAYA-
BLE BY ANY PERSON BY REASON OF THIS PARAGRAPH SHALL BE  REDUCED  BY  THE
AMOUNT  OF THE PENALTY PAID BY SUCH PERSON BY REASON OF PARAGRAPH (1) OF
THIS SUBSECTION.
  (3) FOR PURPOSES OF  THIS  SUBSECTION,  THE  TERM  "UNDERSTATEMENT  OF
LIABILITY"  MEANS  ANY  UNDERSTATEMENT  OF  THE  NET AMOUNT PAYABLE WITH
RESPECT TO ANY TAX IMPOSED UNDER THIS ARTICLE OR  ANY  OVERSTATEMENT  OF
THE NET AMOUNT CREDITABLE OR REFUNDABLE WITH RESPECT TO ANY SUCH TAX.
  (4)  THIS  SUBSECTION  SHALL NOT APPLY IF THE PENALTY UNDER SUBSECTION
(R) OF THIS SECTION IS IMPOSED ON THE TAX RETURN PREPARER  WITH  RESPECT
TO SUCH UNDERSTATEMENT.
  S 7. Subsection (u) of section 685 of the tax law is amended by adding
two new paragraphs (1) and (2) to read as follows:
  (1)  FAILURE TO SIGN RETURN OR CLAIM FOR REFUND. ANY INDIVIDUAL WHO IS
A TAX RETURN PREPARER BUT IS  NOT  SUBJECT  TO  THE  REQUIREMENTS  UNDER
SECTION  THIRTY-TWO  OF  THIS CHAPTER, WHO IS REQUIRED PURSUANT TO PARA-
GRAPH ONE OF SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT  OF  THIS
ARTICLE  TO  SIGN  A  RETURN OR CLAIM FOR REFUND AND WHO FAILS TO COMPLY
WITH SUCH REQUIREMENT WITH RESPECT TO SUCH RETURN OR CLAIM  FOR  REFUND,
SHALL BE SUBJECT TO A PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH
FAILURE  TO SIGN, UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASON-
ABLE CAUSE AND NOT DUE TO WILLFUL NEGLECT. THE MAXIMUM  PENALTY  IMPOSED
UNDER  THIS PARAGRAPH ON ANY TAX RETURN PREPARER WITH RESPECT TO RETURNS
FILED DURING ANY CALENDAR YEAR BY  THE  TAX  RETURN  PREPARER  MUST  NOT
EXCEED  TEN  THOUSAND  DOLLARS.  PROVIDED, HOWEVER, THAT IF A TAX RETURN
PREPARER HAS BEEN PENALIZED UNDER THIS PARAGRAPH FOR A PRECEDING  CALEN-
DAR  YEAR  AND  AGAIN  FAILS  TO SIGN HIS OR HER NAME ON ANY RETURN THAT
REQUIRES THE TAX RETURN PREPARER'S SIGNATURE DURING A SUBSEQUENT  CALEN-
DAR YEAR, THEN THE PENALTY UNDER THIS PARAGRAPH FOR EACH FAILURE WILL BE
FIVE HUNDRED DOLLARS, AND NO ANNUAL CAP WILL APPLY.
  (2)  FAILURE  TO FURNISH IDENTIFYING NUMBER. IF ANY IDENTIFYING NUMBER
REQUIRED TO BE INCLUDED ON ANY RETURN OR CLAIM FOR  REFUND  PURSUANT  TO
PARAGRAPH  TWO  OF  SUBSECTION (G) OF SECTION SIX HUNDRED FIFTY-EIGHT OF
THIS ARTICLE IS NOT SO INCLUDED,  THE  PERSON  WHO  IS  THE  TAX  RETURN
PREPARER BUT IT NOT SUBJECT TO THE REQUIREMENTS UNDER SECTION THIRTY-TWO
OF  THIS  CHAPTER WITH RESPECT TO SUCH RETURN OR CLAIM FOR REFUND, SHALL
BE SUBJECT TO A PENALTY OF ONE HUNDRED DOLLARS FOR  EACH  SUCH  FAILURE,
UNLESS  IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE AND NOT
WILLFUL NEGLECT. THE MAXIMUM PENALTY IMPOSED UNDER THIS PARAGRAPH ON ANY
TAX RETURN PREPARER WITH RESPECT TO RETURNS FILED  DURING  ANY  CALENDAR
YEAR MUST NOT EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS; PROVIDED, HOWEV-
ER,  THAT  IF  A TAX RETURN PREPARER HAS BEEN PENALIZED UNDER THIS PARA-
GRAPH FOR A PRECEDING CALENDAR YEAR AND AGAIN FAILS TO INCLUDE THE IDEN-
TIFYING NUMBER ON ONE OR MORE RETURNS DURING A SUBSEQUENT CALENDAR YEAR,
THEN THE PENALTY UNDER THIS PARAGRAPH  FOR  EACH  FAILURE  WILL  BE  TWO
HUNDRED FIFTY DOLLARS, AND NO ANNUAL CAP WILL APPLY.
  S  8.  This act shall take effect immediately; provided, however, that
section seven of this act shall apply to taxable years commencing on and
after January 1, 2016.

                                 PART H

S. 6409--A                         19                         A. 9009--A

  Section 1. Subdivision 4 of section 22 of the public housing  law,  as
amended  by  section  2  of part P of chapter 59 of the laws of 2014, is
amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall  be  [sixty-four]  SEVENTY-TWO million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 2. Subdivision 4 of section 22 of the public housing law, as amended
by section one of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [seventy-two] EIGHTY million dollars. The  limita-
tion  provided  by  this  subdivision  applies only to allocation of the
aggregate dollar amount of credit by  the  commissioner,  and  does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S  3. Subdivision 4 of section 22 of the public housing law as amended
by section two of this act is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [eighty] EIGHTY-EIGHT million dollars. The limita-
tion provided by this subdivision applies  only  to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [eighty-eight]  NINETY-SIX  million  dollars.  The
limitation  provided  by  this subdivision applies only to allocation of
the aggregate dollar amount of credit by the commissioner, and does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this article shall be [ninety-six] ONE HUNDRED FOUR million dollars. The
limitation  provided  by  this subdivision applies only to allocation of
the aggregate dollar amount of credit by the commissioner, and does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S  6.  This  act  shall  take  effect  immediately; provided, however,
section two of this act shall take effect April 1, 2017;  section  three
of  this  act  shall take effect April 1, 2018; section four of this act
shall take effect April 1, 2019 and section five of this act shall  take
effect April 1, 2020.

                                 PART I

S. 6409--A                         20                         A. 9009--A

  Section  1.  Paragraphs (a) and (b) of subdivision 29 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:
  (a) Allowance of credit. For taxable years beginning on or after Janu-
ary  first,  two thousand fifteen and before January first, two thousand
[seventeen] NINETEEN, a taxpayer  shall  be  allowed  a  credit,  to  be
computed  as  provided  in  this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than one  year  and
for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which the
qualified  veteran  completes one year of employment by the taxpayer. If
the taxpayer claims the  credit  allowed  under  this  subdivision,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (b) Qualified veteran. A qualified veteran is an individual:
  (1) who served on active duty in the United  States  army,  navy,  air
force,  marine corps, coast guard or the reserves thereof, or who served
in active military service of the United States as a member of the  army
national  guard,  air  national  guard, New York guard or New York naval
militia; who was released from  active  duty  by  general  or  honorable
discharge after September eleventh, two thousand one;
  (2)  who  commences  employment  by the qualified taxpayer on or after
January first, two thousand fourteen,  and  before  January  first,  two
thousand [sixteen] EIGHTEEN; and
  (3)  who certifies by signed affidavit, under penalty of perjury, that
he or she has not been employed for thirty-five or more hours during any
week in the one hundred eighty day period immediately prior  to  his  or
her employment by the taxpayer.
  S  2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax
law, as added by section 3 of part AA of chapter 59 of the laws of 2013,
are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first,  two  thousand
[seventeen]  NINETEEN,  a  taxpayer  shall  be  allowed  a credit, to be
computed as provided in this subsection, against the tax imposed by this
article, for hiring and employing, for not less than one  year  and  for
not  less  than  thirty-five hours each week, a qualified veteran within
the state. The taxpayer may claim the credit in the year  in  which  the
qualified  veteran  completes one year of employment by the taxpayer. If
the taxpayer claims  the  credit  allowed  under  this  subsection,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (2) Qualified veteran. A qualified veteran is an individual:
  (A) who served on active duty in the United  States  army,  navy,  air
force,  marine corps, coast guard or the reserves thereof, or who served
in active military service of the United States as a member of the  army
national  guard,  air  national  guard, New York guard or New York naval
militia; who was released from  active  duty  by  general  or  honorable
discharge after September eleventh, two thousand one;
  (B)  who  commences  employment  by the qualified taxpayer on or after
January first, two thousand fourteen,  and  before  January  first,  two
thousand [sixteen] EIGHTEEN; and
  (C)  who certifies by signed affidavit, under penalty of perjury, that
he or she has not been employed for thirty-five or more hours during any

S. 6409--A                         21                         A. 9009--A

week in the one hundred eighty day period immediately prior  to  his  or
her employment by the taxpayer.
  S  3.  Paragraphs  1 and 2 of subdivision (g-1) of section 1511 of the
tax law, as added by section 5 of part AA of chapter 59 of the  laws  of
2013, are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary  first,  two thousand fifteen and before January first, two thousand
[seventeen] NINETEEN, a taxpayer  shall  be  allowed  a  credit,  to  be
computed  as  provided  in  this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than one  year  and
for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which the
qualified  veteran  completes one year of employment by the taxpayer. If
the taxpayer claims the  credit  allowed  under  this  subdivision,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (2) Qualified veteran. A qualified veteran is an individual:
  (A) who served on active duty in the United  States  army,  navy,  air
force,  marine corps, coast guard or the reserves thereof, or who served
in active military service of the United States as a member of the  army
national  guard,  air  national  guard, New York guard or New York naval
militia; who was released from  active  duty  by  general  or  honorable
discharge after September eleventh, two thousand one;
  (B)  who  commences  employment  by the qualified taxpayer on or after
January first, two thousand fourteen,  and  before  January  first,  two
thousand [sixteen] EIGHTEEN; and
  (C)  who certifies by signed affidavit, under penalty of perjury, that
he or she has not been employed for thirty-five or more hours during any
week in the one hundred eighty day period immediately prior  to  his  or
her employment by the taxpayer.
  S 4. This act shall take effect immediately.

                                 PART J

  Section  1.  Paragraph  1  of subdivision (a) of section 28 of the tax
law, as amended by section 1 of part O of chapter  59  of  the  laws  of
2014, is amended to read as follows:
  (1)  A taxpayer which is a qualified commercial production company, or
which is a sole proprietor of a qualified commercial production company,
and which is subject to tax under article nine-A or twenty-two  of  this
chapter,  shall  be  allowed  a credit against such tax, pursuant to the
provisions referenced in subdivision (c) of this section, to be computed
as provided in this section. Provided, however, to be eligible for  such
credit, at least seventy-five percent of the production costs (excluding
post  production  costs)  paid or incurred directly and predominantly in
the actual filming or recording of  the  qualified  commercial  must  be
costs  incurred  in  New  York state. The tax credit allowed pursuant to
this section shall apply  to  taxable  years  beginning  before  January
first, two thousand [seventeen] NINETEEN.
  S  2. Paragraph (c) of subdivision 23 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:
  (c)  Expiration  of  credit. The credit allowed under this subdivision
shall not be applicable to taxable years beginning on or after [December
thirty-first] JANUARY FIRST, two thousand [seventeen] NINETEEN.

S. 6409--A                         22                         A. 9009--A

  S 3. Paragraph 1 of subsection (jj) of section 606 of the tax law,  as
amended  by  section  4  of part O of chapter 59 of the laws of 2014, is
amended to read as follows:
  (1)  Allowance  of credit. A taxpayer that is eligible pursuant to the
provisions of section twenty-eight of this chapter shall  be  allowed  a
credit  to  be  computed  as  provided  in  such section against the tax
imposed by this article. The tax credit allowed pursuant to this section
shall apply to taxable years beginning before January first,  two  thou-
sand [seventeen] NINETEEN.
  S 4. This act shall take effect immediately.

                                 PART K

  Section  1. Section 5 of chapter 604 of the laws of 2011, amending the
tax law relating to the credit for companies who provide  transportation
to people with disabilities, is amended to read as follows:
  S 5. This act shall take effect immediately and shall remain in effect
until December 31, 2016 when upon such date it shall be deemed repealed;
provided  that  this  act shall be deemed to have been in full force and
effect on December 31, 2010; [and] provided further that this act  shall
apply  to  all  tax  years  commencing  on or after January 1, 2011; AND
PROVIDED FURTHER THAT SECTIONS ONE AND TWO OF THIS ACT SHALL  REMAIN  IN
EFFECT  UNTIL  DECEMBER 31, 2022 WHEN UPON SUCH DATE SUCH SECTIONS SHALL
BE DEEMED REPEALED.
  S 2. Paragraph (c) of subdivision 38 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:
  (c) Application of credit. In no event shall the credit allowed  under
this  subdivision  for any taxable year 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 or if the taxpayer otherwise pays tax based on the
fixed dollar minimum amount, any amount of credit thus not deductible in
such taxable year shall be carried over to the following year or  years,
and may be deducted from the taxpayer's tax for such year or years.  THE
TAX CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION SHALL NOT APPLY TO TAXA-
BLE   YEARS   BEGINNING   ON   OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
TWENTY-THREE.
  S 3. This act shall take effect immediately.

                                 PART L

  Section 1. Section 2 of part I of chapter 58  of  the  laws  of  2006,
relating  to  providing an enhanced earned income tax credit, as amended
by section 1 of part G of chapter 59 of the laws of 2014, is amended  to
read as follows:
  S 2. This act shall take effect immediately and shall apply to taxable
years  beginning  on  or  after  January  1, 2006 [and before January 1,
2017].
  S 2. This act shall take effect immediately.

                                 PART M

  Section 1. Section 12 of part N of chapter 61 of  the  laws  of  2005,
amending the tax law relating to certain transactions and related infor-

S. 6409--A                         23                         A. 9009--A

mation  and  relating to the voluntary compliance initiative, as amended
by section 1 of part B of chapter 61 of the laws of 2011, is amended  to
read as follows:
  S  12. This act shall take effect immediately; provided, however, that
(i) section one of this act shall apply  to  all  disclosure  statements
described  in  paragraph  1  of subdivision (a) of section 25 of the tax
law, as added by section one of this act, that were required to be filed
with the internal revenue service at any time with  respect  to  "listed
transactions"  as  described in such paragraph 1, and shall apply to all
disclosure statements described in paragraph 1  of  subdivision  (a)  of
section  25  of  the  tax law, as added by section one of this act, that
were required to be filed with the internal revenue service with respect
to "reportable transactions" as described in  such  paragraph  1,  other
than  "listed transactions", in which a taxpayer participated during any
taxable year for which the statute of limitations for assessment has not
expired as of the date this act shall take effect, and  shall  apply  to
returns or statements described in such paragraph 1 required to be filed
by  taxpayers  (or  persons  as  described  in  such paragraph) with the
commissioner of taxation and finance on or after the sixtieth day  after
this act shall have become a law; and
  (ii)  sections  two  through  four  and seven through nine of this act
shall apply to any tax liability for which the statute of limitations on
assessment has not expired as of the date this act shall  take  effect[;
and
  (iii)  provided,  further,  that  the  provisions  of this act, except
section five of this act, shall expire and be deemed  repealed  July  1,
2015;  provided,  that,  such expiration and repeal shall not affect any
requirement imposed pursuant to this act].
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have  been in full force and effect on and after July 1, 2015; provided,
however that notwithstanding the provisions of article 5 of the  general
construction  law,  the  provisions  of  section  25,  paragraph  11  of
subsection (c) of section 683, subsections (p), (p-1),  (x),  (y),  (z),
(aa)  and (bb) of section 685, paragraph 11 of subsection (c) of section
1083, subsections (k), (k-1), (p), (q), (r), (s) and (t) of section 1085
of the tax law, and section 11 of Part N of chapter 61 of  the  laws  of
2005,  are hereby revived and shall continue in full force and effect as
such provisions existed on July 1, 2015.

                                 PART N

  Section 1. Paragraph (a) of subdivision 25 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) General. A taxpayer shall be allowed  a  credit  against  the  tax
imposed  by  this  article.  Such  credit, to be computed as hereinafter
provided, shall be allowed for bioheat, used for space  heating  or  hot
water  production  for  residential purposes within this state purchased
before January first, two thousand [seventeen] TWENTY. Such credit shall
be $0.01 per percent of biodiesel per gallon of bioheat, not  to  exceed
twenty  cents per gallon, purchased by such taxpayer. PROVIDED, HOWEVER,
THAT ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  SEVENTEEN,  THIS  CREDIT
SHALL  NOT  APPLY TO BIOHEAT THAT IS LESS THAN SIX PERCENT BIODIESEL PER
GALLON OF BIOHEAT.

S. 6409--A                         24                         A. 9009--A

  S 2. Paragraph 1 of subsection (mm) of section 606 of the tax law,  as
amended  by  chapter  193  of  the  laws  of 2012, is amended to read as
follows:
  (1)  A  taxpayer  shall be allowed a credit against the tax imposed by
this article. Such credit, to be computed as hereinafter provided, shall
be allowed for bioheat, used for space heating or hot  water  production
for  residential  purposes  within  this state and purchased on or after
July first, two thousand six and before July first, two  thousand  seven
and  on  or  after  January first, two thousand eight and before January
first, two thousand [seventeen] TWENTY. Such credit shall be  $0.01  per
percent  of  biodiesel per gallon of bioheat, not to exceed twenty cents
per gallon, purchased by such taxpayer. PROVIDED, HOWEVER,  THAT  ON  OR
AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT SHALL NOT APPLY
TO  BIOHEAT  THAT  IS  LESS  THAN  SIX  PERCENT  BIODIESEL PER GALLON OF
BIOHEAT.
  S 3. This act shall take effect immediately.

                                 PART O

  Section 1. Section 359 of the economic development law, as amended  by
section  3  of  part  C of chapter 68 of the laws of 2013, is amended to
read as follows:
  S 359. 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 the limitations set forth in this section.  One-half
of  any  amount of tax credits not awarded for a particular taxable year
IN YEARS TWO THOUSAND ELEVEN THROUGH TWO  THOUSAND  TWENTY-FOUR  may  be
used by the commissioner to award tax credits in another taxable year.

Credit components in the aggregate           With respect to taxable
shall not exceed:                            years beginning in:

          $ 50 million                               2011
          $ 100 million                              2012
          $ 150 million                              2013
          $ 200 million                              2014
          $ 250 million                              2015
          $ 200 million                              2016
          $ 200 million                              2017
          $ 200 million                              2018
          $ 200 million                              2019
          $ 200 million                              2020
          $ 200 million                              2021
          $ 150 million                              2022
          $ 100 million                              2023
          $ 50 million                               2024

  Twenty-five  percent  of  tax credits shall be allocated to businesses
accepted into the  program  under  subdivision  four  of  section  three
hundred  fifty-three  of  this  article  and seventy-five percent of tax
credits shall be allocated to businesses accepted into the program under
subdivision three of section three hundred fifty-three of this article.
  Provided, however, if by September thirtieth of a calendar  year,  the
department  has  not  allocated  the full amount of credits available in
that year to either: (i) businesses  accepted  into  the  program  under
subdivision four of section three hundred fifty-three of this article or

S. 6409--A                         25                         A. 9009--A

(ii)  businesses  accepted  into  the program under subdivision three of
section three hundred fifty-three of this article, the commissioner  may
allocate  any  remaining  tax credits to businesses referenced in [para-
graphs (i) and (ii) of this section] THIS PARAGRAPH as needed; provided,
however, that under no circumstances may the AGGREGATE statutory cap FOR
ALL  PROGRAM  YEARS  be  exceeded.  ONE HUNDRED PERCENT OF THE UNAWARDED
AMOUNTS REMAINING AT THE END OF TWO THOUSAND TWENTY-FOUR  MAY  BE  ALLO-
CATED  IN SUBSEQUENT YEARS, NOTWITHSTANDING THE FIFTY PERCENT LIMITATION
ON ANY AMOUNTS OF TAX CREDITS NOT AWARDED IN TAXABLE YEARS TWO  THOUSAND
ELEVEN THROUGH TWO THOUSAND TWENTY-FOUR. PROVIDED, HOWEVER, NO TAX CRED-
ITS  MAY  BE  ALLOWED  FOR  TAXABLE  YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND THIRTY.
  S 2. Subdivision 5 of section 354 of the economic development law,  as
amended  by  section  2  of part C of chapter 68 of the laws of 2013, is
amended to read as follows:
  5. A participant may claim tax benefits commencing in the first  taxa-
ble  year  that  the  business  enterprise receives a certificate of tax
credit or the first taxable year listed on its preliminary  schedule  of
benefits,  whichever is later. A participant may claim such benefits for
the next nine consecutive taxable years, provided that  the  participant
demonstrates  to  the department that it continues to satisfy the eligi-
bility criteria specified in section three hundred fifty-three  of  this
article  and  subdivision  two  of this section in each of those taxable
years, AND PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND  THIRTY.  If,  in  any
given  year,  a  participant  who has satisfied the eligibility criteria
specified in section three hundred fifty-three of this article  realizes
job creation less than the estimated amount, the credit shall be reduced
by  the  proportion  of  actual  job  creation  to the estimated amount,
provided the proportion is at least seventy-five  percent  of  the  jobs
estimated.
  S 3. Subdivision (b) of section 31 of the tax law, as added by section
7  of  part  G  of chapter 61 of the laws of 2011, is amended to read as
follows:
  (b) To be eligible for the excelsior jobs program credit, the taxpayer
shall have been issued a "certificate of tax credit" by  the  department
of  economic  development  pursuant to subdivision four of section three
hundred fifty-four of the economic development  law,  which  certificate
shall  set forth the amount of each credit component that may be claimed
for the taxable year. A taxpayer may claim such credit for  ten  consec-
utive  taxable  years  commencing  in  the  first  taxable year that the
taxpayer receives a certificate of tax credit or the first taxable  year
listed  on  its  preliminary  schedule  of benefits, whichever is later,
PROVIDED THAT NO TAX CREDITS MAY BE ALLOWED FOR TAXABLE YEARS  BEGINNING
ON  OR  AFTER  JANUARY FIRST, TWO THOUSAND THIRTY. The taxpayer shall be
allowed to claim only the amount listed on the certificate of tax credit
for that taxable year. Such certificate must be attached to the  taxpay-
er's  return.  No cost or expense paid or incurred by the taxpayer shall
be the basis for more than one component of this credit or any other tax
credit, except as provided in section three hundred  fifty-five  of  the
economic development law.
  S 4. This act shall take effect immediately.

                                 PART P

S. 6409--A                         26                         A. 9009--A

  Section  1.  Subdivision (c) of section 24 of the tax law, as added by
section 1 of part P of chapter 60 of the laws of  2004,  is  amended  to
read as follows:
  (c)  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] 210-B: subdivision [36] 20.
  (2) article 22: section 606: subsection (gg).
  S 2. Subdivision (a) and paragraphs 2, 4, and 5 of subdivision (e)  of
section  38  of the tax law, as added by section 1 of part EE of chapter
59 of the laws of 2013, are amended to read as follows:
  (a) A taxpayer that is an eligible employer or an owner of an eligible
employer as defined in subdivision (b) of this section shall be eligible
for a credit against the tax imposed under article nine,  nine-A,  twen-
ty-two,  [thirty-two]  or  thirty-three of this article, pursuant to the
provisions referenced in subdivision (e) of this section.
  (2) Article 9-A: Section [210] 210-B, subdivision [46] 40.
  (4) [Article 32: Section 1456, subsection (z).
  (5)] Article 33: Section 1511, subdivision (cc).
  S 3. Paragraph (e) 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:
  (e) At the end of each year, the commissioner shall review the cumula-
tive percentage change in the consumer  price  index.  The  commissioner
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 thou-
sand  dollars.  As  used in this paragraph, "consumer price index" means
the consumer price index  for  all  urban  consumers  (CPI-U)  available
[form]  FROM the bureau of labor statistics of the United States depart-
ment of labor. Any adjustment shall apply  to  tax  periods  that  begin
after the adjustment is made.
  S  4.  The  opening  paragraph  of  paragraph  (a) of subdivision 5 of
section 210-A of the tax law, as amended by section  23  of  part  T  of
chapter 59 of the laws of 2015, is amended to read as follows:
  A  financial instrument is a "nonqualified financial instrument" if it
is not a qualified financial instrument. A qualified  financial  instru-
ment  means a financial instrument that is of a type described in any of
clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of  this
paragraph  and that has been marked to market in the taxable year by the
taxpayer under section 475 or section 1256 of the internal revenue code.
Further, if the taxpayer has in the taxable  year  marked  to  market  a
financial  instrument  of  the type described in any of the clauses (A),
(B), (C), (D), (G), (H) or (I) of subparagraph two  of  this  paragraph,
then  any  financial  instrument within that type described in the above
specified clause or clauses that has not been marked to  market  by  the
taxpayer  under section 475 or section 1256 of the internal revenue code
is a qualified financial instrument in the taxable year. Notwithstanding
the two preceding sentences, (i) a loan secured by real  property  shall
not be a qualified financial instrument, (ii) if the only loans that are
marked  to  market  by the taxpayer under section 475 or section 1256 of
the internal revenue code are loans secured by real  property,  then  no
loans  shall  be qualified financial instruments, [and] (iii) stock that
is investment capital as defined in paragraph (a) of subdivision five of

S. 6409--A                         27                         A. 9009--A

section two hundred eight of this  article  shall  not  be  a  qualified
financial  instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME
AS DEFINED IN SUBDIVISION SIX-A OF SECTION TWO  HUNDRED  EIGHT  OF  THIS
ARTICLE  AND  THAT  IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION
1256 OF THE INTERNAL REVENUE  CODE  SHALL  NOT  CONSTITUTE  A  QUALIFIED
FINANCIAL  INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS
DESCRIBED IN SUCH SUBDIVISION SIX-A.  If a corporation is included in  a
combined  report, the definition of qualified financial instrument shall
be determined on a combined basis.
  S 5. Paragraph (c) of subdivision 7 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:
  (c) Average number of individuals employed full-time. For the purposes
of this subdivision, average number of  individuals  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  taxable  year  or
other  applicable  period and dividing the sum so obtained by the number
of such quarters occurring within such taxable year or other  applicable
period; provided however, except that in computing base year employment,
there  shall  be  excluded therefrom any employee with respect to whom a
credit provided for under subdivision [six of this section is]  NINETEEN
OF  SECTION  TWO HUNDRED TEN OF THIS ARTICLE, AS SUCH SUBDIVISION WAS IN
EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, WAS claimed  for
the taxable year.
  S  6.  Paragraph (a) of subdivision 9 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) Application of credit. A taxpayer shall be allowed a credit, to be
credited against the tax imposed by this article, equal to the amount of
the  special  additional  mortgage  recording  tax  paid by the taxpayer
pursuant to the provisions of subdivision one-a of section  two  hundred
fifty-three of this chapter [or] ON mortgages recorded. Provided, howev-
er,  no credit shall be allowed with respect to a mortgage of real prop-
erty principally improved or to be improved by one  or  more  structures
containing  in  the  aggregate  not  more  than six residential dwelling
units, each dwelling unit having its own  separate  cooking  facilities,
where  the  real  property  is  located  in  one or more of the counties
comprising  the  metropolitan  commuter  transportation  area.  Provided
further,  however, no credit shall be allowed with respect to a mortgage
of real property principally improved or to be improved by one  or  more
structures  containing  in  the  aggregate not more than six residential
dwelling units, each dwelling  unit  having  its  own  separate  cooking
facilities, where the real property is located in the county of Erie.
  S  7.  Subdivision  45  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:
  45. Order of credits. [(a)] Credits allowable under this article which
cannot  be  carried  over and which are not refundable shall be deducted
first. [The credit allowable under subdivision six of this section shall
be deducted immediately after the deduction  of  all  credits  allowable
under  this  article  which  cannot  be  carried  over and which are not
refundable, whether or not a portion  of  such  credit  is  refundable.]
Credits  allowable  under  this  article  which can be carried over, and
carryovers of such credits, shall be deducted next [after the  deduction
of  the  credit  allowable  under  subdivision six of this section], and
among such credits, those whose carryover is of limited  duration  shall

S. 6409--A                         28                         A. 9009--A

be deducted before those whose carryover is of unlimited duration. Cred-
its  allowable  under this article which are refundable [(other than the
credit allowable under  subdivision  six  of  this  section)]  shall  be
deducted last.
  S  8.  Paragraph (a) of subdivision 3 of section 210-C of the tax law,
as added by section 18 of part A of chapter 59 of the laws of  2014,  is
amended to read as follows:
  (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 bases of all
members of the group in accordance with [paragraph] SUBDIVISION four  of
this [subdivision] SECTION, whether or not that business income or busi-
ness capital is from a single unitary business.
  S 9. Paragraph I of subdivision 1 of section 11-604 of the administra-
tive  code  of the city of New York, as added by chapter 491 of the laws
of 2007, is amended to read as follows:
  I. Notwithstanding any provision of this subdivision to the  contrary,
for  taxable  years  beginning  on  or after January first, two thousand
seven for any corporation that:
  (a) has a business allocation percentage  for  the  taxable  year,  as
determined  under paragraph (a) of subdivision three of this section, of
one hundred percent;
  (b) has no investment capital or income at any time during the taxable
year;
  (c) has no subsidiary capital or income at any time during the taxable
year; and
  (d) has gross income, as defined in section sixty-one of the  internal
revenue code, less than two hundred fifty thousand dollars for the taxa-
ble year:
  the  tax imposed by subdivision one of section 11-603 of this subchap-
ter shall be the greater of the tax on entire net income computed  under
clause  one  of  subparagraph (a) of paragraph E of this subdivision and
the fixed dollar minimum tax specified in clause  four  of  subparagraph
(a) of paragraph E of this subdivision.
  For  purposes  of  this  paragraph, FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO  THOUSAND  FIFTEEN,  any  corporation  for  which  an
election  under  subsection  (a) of section six hundred sixty of the tax
law is not in effect for the taxable year may elect to treat  as  entire
net income the sum of:
  (i) entire net income as determined under section two hundred eight of
the tax law; and
  (ii)  any  deductions  taken for the taxable year in computing federal
taxable income for New York city taxes paid or accrued under this  chap-
ter.
  S  10.  Subdivision  2 of section 11-651 of the administrative code of
the city of New York, as added by section 1 of part D of chapter  60  of
the laws of 2015, is amended to read as follows:
  2.  Each  reference  in THE TAX LAW OR 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 modifica-
tions.

S. 6409--A                         29                         A. 9009--A

  S 11. Paragraph (a) of subdivision 4 of section 11-652 of the adminis-
trative code of the city of New York, as added by section 1 of part D of
chapter 60 of the laws of 2015, is amended to read as follows:
  (a)  The  term  "investment capital" means investments in stocks that:
(i) satisfy the definition of a capital asset under section 1221 of  the
internal revenue code at all times the taxpayer owned such stocks during
the  taxable year; (ii) are held by the taxpayer for investment for more
than one year; (iii) the dispositions of which are, or would be, treated
by the taxpayer as generating long-term capital gains  or  losses  under
the  internal revenue code; (iv) for stocks acquired on or after January
first, two thousand fifteen, at any time after the close of the  day  in
which  they  are acquired, have never been held for sale to customers in
the regular course of business; and (v) before the close of the  day  on
which  the  stock was acquired, are clearly identified in the taxpayer's
records as stock held for investment in  the  same  manner  as  required
under section 1236(a)(1) of the internal revenue code for the stock of a
dealer  in securities to be eligible for capital gain treatment (whether
or not the taxpayer is a dealer of securities subject to section  1236),
provided,  however,  that for stock acquired prior to October first, two
thousand fifteen that was not subject to section 1236(a) of the internal
revenue code, such identification in the taxpayer's records  must  occur
before  October first, two thousand fifteen. Stock in a corporation that
is conducting a unitary business with the taxpayer, stock  in  a  corpo-
ration  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 [used] ISSUED by the taxpayer
shall not constitute investment capital. For purposes of  this  subdivi-
sion,  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 business of the taxpayer.
  S 12. Subparagraph 2 of paragraph (a) of  subdivision  18  of  section
11-654  of  the administrative code of the city of New York, as added by
section 1 of part D of chapter 60 of the laws of  2015,  is  amended  to
read as follows:
  (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,] EXCEPT THAT IN
THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARA-
GRAPH ONE OF PARAGRAPH (E) OF SUBDIVISION  ONE  OF  THIS  SECTION,  SUCH
DENOMINATOR  IS  NINE,  AND in the case of a taxpayer that is subject to
paragraph (j) or (k) of subdivision one of this section, such  denomina-
tor  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

S. 6409--A                         30                         A. 9009--A

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.
  S 13. Subparagraph 1 of paragraph (b) of  subdivision  18  of  section
11-654  of  the administrative code of the city of New York, as added by
section 1 of part D of chapter 60 of the laws of  2015,  is  amended  to
read as follows:
  (1)  Notwithstanding anything to the contrary in paragraph (a) of this
subdivision, in the case of a corporation that, before  the  application
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], EXCEPT THAT IN THE CASE OF A FINANCIAL CORPORATION
AS DEFINED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF  SUBDI-
VISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND 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. 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 previously taken, shall  be  allowed  as  a
credit  in each of such years. In applying the provisions of the preced-
ing sentence, the credit determined for the taxable year under paragraph
(a) of this subdivision shall be taken before taking any  credit  carry-
forward pursuant to this paragraph and the credit carryforward attribut-
able  to the earliest taxable year shall be taken before taking a credit
carryforward attributable to a subsequent taxable year.
  S 14. Subparagraph 8 of paragraph (a) of  subdivision  21  of  section
11-654  of  the administrative code of the city of New York, as added by
section 1 of part D of chapter 60 of the laws of  2015,  is  amended  to
read as follows:
  (8)  The  credit  allowed under this subdivision shall only be allowed
for taxable years beginning before January first, two thousand [sixteen]
NINETEEN.
  S 15. Paragraph (c) of subdivision 2 of section 11-654.2 of the admin-
istrative code of the city of New York, as added by section 1 of part  D
of chapter 60 of the laws of 2015, is amended to read as follows:
  (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)] (IX)
of subparagraph two  of  paragraph  (a)  of  subdivision  five  of  this
section.
  S  16.  The  opening  paragraph  of  paragraph (a) of subdivision 5 of
section 11-654.2 of the administrative code of the city of New York,  as

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added  by  section  1  of  part  D of chapter 60 of the laws of 2015, is
amended to read as follows:
  A  financial instrument is a "nonqualified financial instrument" if it
is not a qualified financial instrument. A qualified  financial  instru-
ment  means a financial instrument that is of a type described in any of
clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two
of this paragraph and that has been marked to market in the taxable year
by the taxpayer under section 475 or section 1256 of the internal reven-
ue code. Further, if the taxpayer has in  the  taxable  year  marked  to
market  a  financial  instrument  of the type described in any of clause
(i), (ii), (iii), (iv), (vii), (viii) or (ix)  of  subparagraph  two  of
this paragraph, then any financial instrument within that type described
in  the  above  specified  clause or clauses that has not been marked to
market by the taxpayer under section 475 or section 1256 of the internal
revenue code is a qualified financial instrument in  the  taxable  year.
Notwithstanding  the two preceding sentences, (i) a loan secured by real
property shall not be a qualified financial instrument, (ii) if the only
loans that are marked to market by the taxpayer  under  section  475  or
section  1256  of  the  internal  revenue code are loans secured by real
property, then no loans shall be qualified financial instruments,  [and]
(iii)  stock  that  is investment capital as defined in paragraph (a) of
subdivision [4] FOUR of section 11-652 of this subchapter shall not be a
qualified financial instrument, AND  (IV)  STOCK  THAT  GENERATES  OTHER
EXEMPT INCOME AS DEFINED IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS
SUBCHAPTER AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION
1256  OF  THE  INTERNAL  REVENUE  CODE  SHALL NOT CONSTITUTE A QUALIFIED
FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT  IS
DESCRIBED IN SUCH SUBDIVISION FIVE-A.  If a corporation is included in a
combined  report, the definition of qualified financial instrument shall
be determined on a combined basis.
  S 17. This act shall take effect immediately;  provided  however  that
sections  one,  two, three, four, five, six, seven and eight of this act
shall be deemed to have been in full force and effect on the  same  date
and in the same manner as part A of chapter 59 of the laws of 2014, took
effect,  and  sections  nine,  ten,  eleven, twelve, thirteen, fourteen,
fifteen and sixteen of this act shall be deemed to  have  been  in  full
force  and  effect  on the same date and in the same manner as part D of
chapter 60 of the laws of 2015, took effect.

                                 PART Q

  Section 1. Subdivision 5 of section 183-a of the tax law,  as  amended
by section 61 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
  5.  The  report  covering  the  tax surcharge which must be calculated
pursuant to this section based upon the tax reportable on the report due
by March fifteenth of any year under section one hundred eighty-three of
this article, FOR TAXABLE YEARS  BEGINNING  BEFORE  JANUARY  FIRST,  TWO
THOUSAND  SIXTEEN,  AND ON THE REPORT DUE BY APRIL FIFTEENTH OF ANY YEAR
UNDER SECTION ONE HUNDRED EIGHTY-THREE  OF  THIS  ARTICLE,  FOR  TAXABLE
YEARS  BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, shall
be filed on or before March fifteenth of the year next  succeeding  such
year,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF THE  YEAR  NEXT  SUCCEEDING
SUCH  YEAR,  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND SIXTEEN.  An extension pursuant to section one hundred  ninety-

S. 6409--A                         32                         A. 9009--A

three of this article shall be allowed only if a taxpayer files with the
commissioner  an  application for extension in such form as said commis-
sioner may prescribe by regulation and pays on or  before  the  date  of
such  filing  in addition to any other amounts required under this arti-
cle, either ninety percent of the entire tax surcharge  required  to  be
paid  under this section for the applicable period, or not less than the
tax surcharge shown on the taxpayer's report for the preceding year,  if
such  preceding  year  consisted  of  twelve  months.  The tax surcharge
imposed by this section shall be payable to the commissioner in full  at
the  time  the report is required to be filed, and such tax surcharge or
the balance thereof, imposed on any taxpayer which  ceases  to  exercise
its franchise or be subject to the tax surcharge imposed by this section
shall  be payable to the commissioner at the time the report is required
to be filed, provided such tax surcharge of a domestic corporation which
continues to possess its franchise shall be subject to adjustment as the
circumstances may require; all other tax surcharges of any such  taxpay-
er,  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. All of the
provisions of this article presently applicable to section  one  hundred
eighty-three of this article are applicable to the tax surcharge imposed
by  this section except for section one hundred ninety-two of this arti-
cle.
  S 2. Subdivision 4 of section 186-a of the  tax  law,  as  amended  by
chapter 536 of the laws of 1998, is amended to read as follows:
  4.  Every  utility  subject  to tax hereunder shall file, on or before
March fifteenth of each year, a return for the year ended on the preced-
ing December thirty-first,  FOR TAXABLE YEARS BEGINNING  BEFORE  JANUARY
FIRST,  TWO  THOUSAND  SIXTEEN,  except  that the year ended on December
thirty-first, nineteen hundred seventy-six  shall  be  deemed,  for  the
purposes  of this subdivision, to have commenced on June first, nineteen
hundred seventy-six, AND SHALL FILE, ON OR  BEFORE  APRIL  FIFTEENTH  OF
EACH  YEAR,  A RETURN FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIR-
TY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO
THOUSAND  SIXTEEN, including any period for which the tax imposed hereby
or by any amendment hereof is effective, each  of  which  returns  shall
state  the gross income or gross operating income for the period covered
by each such return. Returns shall be filed  with  the  commissioner  of
taxation  and  finance on a form to be furnished by the commissioner for
such purpose and shall contain such other data, information or matter as
the commissioner may require to be included therein. Notwithstanding the
foregoing provisions of this subdivision, the commissioner  may  require
any utility to file an annual return, which shall contain any data spec-
ified  by the commissioner, regardless of whether the utility is subject
to tax under this section; and the commissioner may require  a  landlord
selling  to  a  tenant  gas,  electric, steam, water or refrigeration or
furnishing gas, electric, steam, water or  refrigerator  service,  where
the  same  has  been  subjected to tax under this section on the sale to
such landlord, to file, on or before the fifteenth day of March of  each
year,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL OF EACH  YEAR,  FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN,
an information return for the year ended on the preceding December thir-
ty-first,  covering  such  year in such form and containing such data as
the commissioner may specify. Every return shall have annexed thereto  a
certification  by  the  head  of  the utility making the same, or of the

S. 6409--A                         33                         A. 9009--A

owner or of a co-partner thereof, or  of  a  principal  officer  of  the
corporation,  if  such  business  be  conducted by a corporation, to the
effect that the statements contained therein are true.
  S  3. Subdivision 6 of section 186-e of the tax law, as added by chap-
ter 2 of the laws of 1995, is amended to read as follows:
  6. Returns. Every provider of telecommunication  services  subject  to
tax  under this section shall file, on or before March fifteenth of each
year, FOR TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN,  AND  ON  OR  BEFORE  APRIL FIFTEENTH OF EACH YEAR, FOR TAXABLE
YEARS BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,  a
return  for  the  year ended on the preceding December thirty-first, and
pay the tax due, which return shall state the  gross  receipts  for  the
period covered by each such return and the resale exclusions during such
period.  Returns  shall  be  filed with the commissioner on a form to be
furnished by the commissioner for such purpose and  shall  contain  such
other  data, information or matter as the commissioner may require to be
included therein.  Notwithstanding  the  foregoing  provisions  of  this
subdivision,  the  commissioner may require any provider of telecommuni-
cation services to file an annual return, which shall contain  any  data
specified  by  the  commissioner, regardless of whether such provider is
subject to tax under this section. Every return shall have annexed ther-
eto a certification by the head of  the  provider  of  telecommunication
services  making  the  same,  or  of the owner or of a partner or member
thereof, or of a principal officer of the corporation, if such  business
be  conducted  by  a  corporation,  to  the  effect  that the statements
contained therein are true.
  S 4. Subdivision 1 of section 192 of the tax law, as amended by  chap-
ter 96 of the laws of 1976, is amended to read as follows:
  1.  Corporations  paying franchise tax. Every corporation, association
or joint-stock company liable to pay a tax  under  section  one  hundred
eighty-three  or  one  hundred  eighty-five of this chapter shall, on or
before March fifteenth in each year, FOR TAXABLE YEARS BEGINNING  BEFORE
JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN
EACH  YEAR,  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND SIXTEEN, make a written report to the [tax commission]  COMMIS-
SIONER  of  its  condition at the close of its business on the preceding
December thirty-first, stating the  amount  of  its  authorized  capital
stock, the amount of stock paid in, the date and rate per centum of each
dividend  paid  by  it  during the year ending with such day, the entire
amount of the capital of such corporation, and the capital  employed  by
it in this state during such year.
  S  5.  Subdivision  1  of  section  192  of the tax law, as amended by
section 26 of part S of chapter 59 of the laws of 2014,  is  amended  to
read as follows:
  1.  Corporations  paying franchise tax. Every corporation, association
or joint-stock company liable to pay a tax  under  section  one  hundred
eighty-three of this chapter shall, on or before March fifteenth in each
year,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH  IN  EACH  YEAR,  FOR  TAXABLE
YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, make a
written report to the [tax commission] COMMISSIONER of its condition  at
the  close of its business on the preceding December thirty-first, stat-
ing the amount of its authorized capital stock, the amount of stock paid
in, the date and rate per centum of each dividend paid by it during  the
year  ending  with  such  day,  the entire amount of the capital of such

S. 6409--A                         34                         A. 9009--A

corporation, and the capital employed by it in this  state  during  such
year.
  S  6. Subdivision 2 of section 192 of the tax law, as amended by chap-
ter 96 of the laws of 1976, is amended to read as follows:
  2. Transportation and transmission corporations. Every  transportation
or  transmission  corporation, joint-stock company or association liable
to pay an additional franchise tax under section one hundred eighty-four
of this chapter, shall also, on or before March fifteenth of each  year,
make a written report to the [tax commission] COMMISSIONER of the amount
of its gross earnings subject to the tax imposed by said section for the
year  ended  on  the  preceding December thirty-first, FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN,  except  that  the
year  ended on December thirty-first, nineteen hundred seventy-six shall
be deemed, for the purposes of this subdivision, to  have  commenced  on
July  first,  nineteen hundred seventy-six, AND SHALL ALSO, ON OR BEFORE
APRIL FIFTEENTH OF EACH YEAR, MAKE A WRITTEN REPORT TO THE  COMMISSIONER
OF  THE  AMOUNT OF ITS GROSS EARNINGS SUBJECT TO THE TAX IMPOSED BY SAID
SECTION FOR THE YEAR ENDED ON THE PRECEDING DECEMBER  THIRTY-FIRST,  FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
Any such corporation, joint-stock company or association which ceases to
be subject to the tax imposed by section one hundred eighty-four of this
chapter by reason of a liquidation, dissolution, merger or consolidation
with  any  other  corporation, or any other cause, shall, on the date of
such cessation or at such other time as the [tax commission] COMMISSION-
ER may require, make a written report to the  [tax  commission]  COMMIS-
SIONER of the amount of its gross earnings subject to the tax imposed by
section one hundred eighty-four of this chapter for any period for which
no report was theretofore filed. Any corporation, joint-stock company or
association  subject  to  a  tax  upon  dividends under said section one
hundred eighty-four of this chapter shall also  include  in  its  report
under  this  subdivision required to be filed a statement of the author-
ized capital of the company, the amount of capital stock issued, and the
amount of dividends of every nature paid during the year  ended  on  the
preceding  December  thirty-first.  As to tax payers subject to such tax
upon dividends under said section one hundred eighty-four of this  chap-
ter,  the year ended on December thirty-first, nineteen hundred seventy-
six shall be deemed, for the  purposes  of  this  subdivision,  to  have
commenced on July first, nineteen hundred seventy-six.
  S  7.  Paragraph (a) of subdivision 1 of section 197-b of the tax law,
as amended by section 1 of part G-1 of chapter 57 of the laws  of  2009,
is amended to read as follows:
  (a)  For  taxable  years beginning on or after January first, nineteen
hundred seventy-seven, every taxpayer subject to tax under  section  one
hundred eighty-two, one hundred eighty-two-a, former section one hundred
eighty-two-b,  one  hundred eighty-four, one hundred eighty-six-a or one
hundred eighty-six-e of this article, must pay in each  year  an  amount
equal  to  (i) twenty-five percent of the tax imposed under each of such
sections for the preceding taxable year  if  the  preceding  year's  tax
exceeded  one thousand dollars but was equal to or less than one hundred
thousand dollars, or (ii) forty percent of the tax imposed under any  of
these  sections  for  the preceding taxable year if the preceding year's
tax exceeded one hundred thousand dollars. If the preceding  year's  tax
under  section  one hundred eighty-four, one hundred eighty-six-a or one
hundred eighty-six-e of this article exceeded one thousand  dollars  and
the  taxpayer  is  subject  to  the tax surcharge imposed by section one
hundred eighty-four-a or  one  hundred  eighty-six-c  of  this  article,

S. 6409--A                         35                         A. 9009--A

respectively,  the  taxpayer  must  also pay in each such year an amount
equal to (i) twenty-five percent of the tax surcharge imposed under such
section for the preceding taxable  year  if  the  preceding  year's  tax
exceeded  one thousand dollars but was equal to or less than one hundred
thousand dollars, or (ii) forty percent of  the  tax  surcharge  imposed
under  that  section  for  the  preceding  taxable year if the preceding
year's tax exceeded one hundred thousand dollars. The amount or  amounts
must be paid with the return or report required to be filed with respect
to  the  tax  or tax surcharge for the preceding taxable year or with an
application for extension of the time for filing the return  or  report,
FOR  TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN,
AND MUST BE PAID ON OR BEFORE THE  FIFTEENTH  DAY  OF  THE  THIRD  MONTH
FOLLOWING  THE CLOSE OF THE TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON
OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
  S 8. Paragraph (a) of subdivision 1 of section 209 of the tax law,  as
amended  by  section  5  of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
  (a) For the privilege of exercising its  corporate  franchise,  or  of
doing business, or of employing capital, or of owning or leasing proper-
ty in this state in a corporate or organized capacity, or of maintaining
an  office  in this state, or of deriving receipts from activity in this
state, for all or any part of each of  its  fiscal  or  calendar  years,
every  domestic or foreign corporation, except corporations specified in
subdivision four of this section, shall annually pay  a  franchise  tax,
upon  the basis of its business income base, 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 here-
inafter provided, on or before the fifteenth day of March next  succeed-
ing  the  close  of  each  such year, FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH  DAY
OF  APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH YEAR, FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN,  or,  in  the
case of a corporation which reports on the basis of a fiscal year, with-
in  two  and  one-half  months  after the close of such fiscal year, FOR
TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN,  AND
ON  OR  BEFORE  THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF
SUCH FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND SIXTEEN, and shall be paid as hereinafter provided.
  S 9. Subdivision 1 of section 211 of the tax law, as amended by  chap-
ter 436 of the laws of 1974, the opening paragraph as amended by chapter
190 of the laws of 1990 and the second undesignated paragraph as amended
by chapter 542 of the laws of 1985, is amended to read as follows:
  1.  Every  taxpayer[,  as  well as every foreign corporation having an
employee, including any officer, within the state,] shall annually on or
before March fifteenth,  FOR  TAXABLE  YEARS  BEGINNING  BEFORE  JANUARY
FIRST,  TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH,
FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN,  transmit  to  the  [tax commission] COMMISSIONER a report in a
form prescribed by [it] THE  COMMISSIONER  (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,  FOR
TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND
ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER  THE  CLOSE  OF
ITS  FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND SIXTEEN, and except, also, that a corporation  which  is  a
DISC  shall  transmit  its  report on or before the fifteenth day of the

S. 6409--A                         36                         A. 9009--A

ninth month following the close of its calendar or fiscal year), setting
forth  such  information  as  the  [tax  commission]  COMMISSIONER   may
prescribe  and  every taxpayer which ceases to exercise its franchise or
to  be  subject to the tax imposed by this article shall transmit to the
[tax commission] COMMISSIONER a report on the date of such cessation  or
at  such  other  time  as  the [tax commission] COMMISSIONER may require
covering each year or period for which no report was theretofore  filed.
In  the case of a termination year of an S corporation, the S short year
and the C short year shall be treated as separate short  taxable  years,
provided, however, the due date of the report for the S short year shall
be  the  same  as the due date of the report for the C short year. Every
taxpayer shall also transmit such  other  reports  and  such  facts  and
information  as  the  [tax  commission]  COMMISSIONER may require in the
administration of this article.  The [tax commission]  COMMISSIONER  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
the preceding paragraph, such taxpayer files with the  [tax  commission]
COMMISSIONER  an application for extension in such form as [said commis-
sion] THE COMMISSIONER may prescribe by regulation and pays on or before
the date of such filing the amount properly estimated as its tax.
  S 10. Subdivision (a) of section 213-b of the tax law, as  amended  by
section  2  of part G-1 of chapter 57 of the laws of 2009, is amended to
read as follows:
  (a) First installments for certain taxpayers.--In privilege periods of
twelve months ending at any  time  during  the  calendar  year  nineteen
hundred  seventy  and  thereafter,  every  taxpayer  subject  to the tax
imposed by section two hundred nine of this chapter must  pay  with  the
report  required to be filed for the preceding privilege period, or with
an application for extension of the time  for  filing  the  report,  FOR
TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND
MUST PAY ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF SUCH PRIV-
ILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,
TWO  THOUSAND SIXTEEN, an amount equal to (i) twenty-five percent of the
preceding year's tax if the preceding year's tax exceeded  one  thousand
dollars  but  was equal to or less than one hundred thousand dollars, or
(ii) forty percent of the preceding year's tax if the  preceding  year's
tax  exceeded one hundred thousand dollars.  If the preceding year's tax
under section two hundred nine of this  chapter  exceeded  one  thousand
dollars  and  the  taxpayer  is  subject to the tax surcharge imposed by
section two hundred nine-B of this chapter, the taxpayer must  also  pay
with  the  tax  surcharge  report required to be filed for the preceding
privilege period, or with an application for extension of the  time  for
filing the report, FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND  SIXTEEN,  AND  MUST  PAY ON OR BEFORE THE FIFTEENTH DAY OF THE
THIRD MONTH OF SUCH PRIVILEGE PERIODS, FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, an amount equal to (i)  twen-
ty-five  percent  of the tax surcharge imposed for the preceding year if
the preceding year's tax was equal to or less than one hundred  thousand
dollars,  or  (ii)  forty  percent  of the tax surcharge imposed for the
preceding year if the preceding year's tax exceeded one hundred thousand
dollars.
  S 11. Subdivision (f) of section 213-b of the tax law, as  amended  by
chapter 613 of the laws of 1976, is amended to read as follows:

S. 6409--A                         37                         A. 9009--A

  (f)  The preceding year's tax defined.-- As used in this section, "the
preceding year's tax" means the tax imposed upon the taxpayer by section
two hundred nine of this chapter for the preceding  calendar  or  fiscal
year,  or,  for purposes of computing the first installment of estimated
tax  when  EITHER  THE  MANDATORY  FIRST INSTALLMENT IS PAID PURSUANT TO
SUBDIVISION (A) OF THIS SECTION OR 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  two  hundred  thirteen of this chapter as the tax
imposed upon the taxpayer for such calendar or fiscal year.
  S 12. Paragraph 1 of subsection (c) of section 658 of the tax law,  as
amended  by  chapter  760  of  the  laws  of 1992, is amended to read as
follows:
  (1) Partnerships. Every  partnership  having  a  resident  partner  or
having  any  income derived from New York sources, determined in accord-
ance with the applicable rules of section six hundred thirty-one  as  in
the  case of a nonresident individual, shall make a return for the taxa-
ble year setting forth all items of income, gain, loss and deduction and
such other pertinent information as the commissioner may by  regulations
and  instructions prescribe. Such return shall be filed on or before the
fifteenth day of the fourth month following the close  of  each  taxable
year,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING
THE CLOSE OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR  AFTER
JANUARY  FIRST,  TWO  THOUSAND SIXTEEN, except that the due date for the
return of a partnership consisting entirely of nonresident aliens  shall
be  the date prescribed for the filing of its federal partnership return
for the taxable year. For purposes of  this  paragraph,  "taxable  year"
means  a  year or a period which would be a taxable year of the partner-
ship if it were subject to tax under this article.
  S 13. Subparagraph (A) of paragraph 3 of subsection (c) of section 658
of the tax law, as amended by section 18 of part U of chapter 61 of  the
laws of 2011, is amended to read as follows:
  (A)  Every  subchapter  K  limited  liability  company,  every limited
liability company that is a disregarded entity for  federal  income  tax
purposes,  and  every  partnership which has any income derived from New
York sources, determined in accordance  with  the  applicable  rules  of
section  six  hundred  thirty-one  of  this  article as in the case of a
nonresident individual, shall[, within sixty days after the last day  of
the  taxable  year,]  ON  OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH
FOLLOWING THE CLOSE OF EACH TAXABLE YEAR make a payment of a filing fee.
The amount of the filing fee is the amount set forth in subparagraph (B)
of this paragraph. The minimum filing fee  is  twenty-five  dollars  for
taxable  years  beginning  in two thousand eight and thereafter. Limited
liability companies that are disregarded entities for federal income tax
purposes must pay a filing fee of twenty-five dollars for taxable  years
beginning on or after January first, two thousand eight.
  S 14. Subsection (i) of section 1087 of the tax law, as added by chap-
ter 188 of the laws of 1964, is amended to read as follows:
  (i)  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 article nine-a, [nine-b or nine-c,] or on the last
day prescribed in article nine for the filing of a final return for such

S. 6409--A                         38                         A. 9009--A

taxable year, or portion thereof, determined in all cases without regard
to any extension of time granted the taxpayer, FOR TAXABLE YEARS  BEGIN-
NING  BEFORE  JANUARY  FIRST, TWO THOUSAND SIXTEEN, AND ON THE FIFTEENTH
DAY  OF  THE  FOURTH  MONTH  FOLLOWING THE CLOSE OF THE TAXABLE YEAR THE
INCOME OF WHICH IS THE BASIS FOR TAX UNDER ARTICLE  NINE-A,  OR  ON  THE
LAST DAY PRESCRIBED IN ARTICLE NINE FOR THE FILING OF A FINAL RETURN FOR
SUCH  TAXABLE  YEAR, OR PORTION THEREOF, DETERMINED IN ALL CASES WITHOUT
REGARD TO ANY EXTENSION OF TIME GRANTED THE TAXPAYER, FOR TAXABLE  YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
  S  15.  Paragraph 3 of subdivision (a) of section 1514 of the tax law,
as amended by section 89 of part A of chapter 389 of the laws  of  1997,
is amended to read as follows:
  (3) Such amount or amounts described in paragraphs one and two of this
subdivision  shall  be  paid  with  the return required to be filed with
respect to such tax or tax surcharge for such preceding taxable year  or
with  an  application  for extension of the time for filing such return,
FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND  SIXTEEN,
AND  SHALL  BE PAID ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH OF
EACH TAXABLE YEAR, FOR TAXABLE  YEARS  BEGINNING  ON  OR  AFTER  JANUARY
FIRST, TWO THOUSAND SIXTEEN.
  S  16.  Subdivision  (f) of section 1514 of the tax law, as amended by
section 26 of part H3 of chapter 62 of the laws of 2003, is  amended  to
read as follows:
  (f)  The  preceding  year's tax defined. As used in this section, "the
preceding year's tax" means, for taxpayers subject to tax under subdivi-
sion (b) of section fifteen hundred  ten  of  this  article,  the  taxes
imposed  upon  the  taxpayer by sections fifteen hundred one and fifteen
hundred ten of this article from the preceding taxable year or as other-
wise determined by subdivision (b) of section fifteen  hundred  five  of
this  article,  and  for  taxpayers subject to tax under section fifteen
hundred two-a of this article, the tax imposed upon the taxpayer by such
section fifteen hundred two-a of this article from the  preceding  year,
or for purposes of computing the first installment of estimated tax when
EITHER  THE  MANDATORY FIRST INSTALLMENT IS PAID PURSUANT TO SUBDIVISION
(A) OF THIS SECTION OR an application has been filed  for  extension  of
the  time  for filing the return required to be filed for such preceding
taxable year, the amount properly estimated pursuant to paragraph one of
subdivision (b) of section fifteen hundred sixteen of  this  article  as
the tax imposed upon the taxpayer for such taxable year.
  S  17.  Subdivision  (a)  of  section 1515 of the tax law, as added by
section 649 of the laws of 1974 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  (a) Every taxpayer and every other foreign and alien insurance  corpo-
ration  having  an  employee,  including  any  officer, in this state or
having an agent or representative in this state, shall annually,  on  or
before  the  fifteenth day of the third month following the close of its
taxable year, FOR TAXABLE YEARS  BEGINNING  BEFORE  JANUARY  FIRST,  TWO
THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH
FOLLOWING  THE CLOSE OF ITS TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON
OR AFTER JANUARY FIRST, TWO  THOUSAND  SIXTEEN,  transmit  to  the  [tax
commission]  COMMISSIONER  a  return  in  a  form prescribed by [it] THE
COMMISSIONER setting forth such  information  as  the  [tax  commission]
COMMISSIONER  may  prescribe and every taxpayer which ceases to exercise
its franchise or to be subject to the tax imposed by this article  shall
transmit  to  the  [tax commission] COMMISSIONER a return on the date of
such cessation or at such other time as the [tax commission] COMMISSION-

S. 6409--A                         39                         A. 9009--A

ER may require covering each year or period  for  which  no  return  was
theretofore filed. A copy of each return required under this subdivision
shall also be transmitted to the superintendent of financial services at
or  before  the  times  specified  for filing such returns with the [tax
commission] COMMISSIONER.
  S 18. Subdivisions (a) and (b) of section 11-514 of the administrative
code of the city of New York, subdivision (a) as amended by chapter  183
of the laws of 2009, are amended to read as follows:
  (a)  General.  [On  or  before  the  fifteenth day of the fourth month
following the close of a taxable year, an]  AN  unincorporated  business
income  tax  return  shall be made and filed, and the balance of any tax
shown on the face of such return, not previously paid as installments of
estimated tax, shall be paid, ON OR BEFORE  THE  FIFTEENTH  DAY  OF  THE
FOURTH  MONTH  FOLLOWING  THE  CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON  OR  BEFORE
THE  FIFTEENTH  DAY  OF THE THIRD MONTH FOLLOWING THE CLOSE OF A TAXABLE
YEAR FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
SIXTEEN:
  (1) by or for every unincorporated business, for taxable years  begin-
ning after nineteen hundred eighty-six but before nineteen hundred nine-
ty-seven,  having  unincorporated  business gross income, determined for
purposes of this subdivision without any deduction for the cost of goods
sold or services performed, of more than ten thousand dollars, or having
any amount of unincorporated business taxable income;
  (2) by or for every partnership, for  taxable  years  beginning  after
nineteen  hundred  ninety-six but before two thousand nine, having unin-
corporated business gross income, determined for purposes of this subdi-
vision without any deduction for the cost  of  goods  sold  or  services
performed, of more than twenty-five thousand dollars, or having unincor-
porated business taxable income of more than fifteen thousand dollars;
  (3)  by or for every unincorporated business other than a partnership,
for taxable years beginning after nineteen hundred ninety-six but before
two thousand nine, having unincorporated business gross  income,  deter-
mined  for  purposes  of  this subdivision without any deduction for the
cost of goods sold or services  performed,  of  more  than  seventy-five
thousand  dollars,  or  having unincorporated business taxable income of
more than thirty-five thousand dollars; and
  (4) by or for every unincorporated business, for taxable years  begin-
ning  after  two  thousand  eight,  having unincorporated business gross
income,  determined  for  purposes  of  this  subdivision  without   any
deduction for the cost of goods sold or services performed, of more than
ninety-five thousand dollars.
  (b)  Decedents.  The  return for any deceased individual shall be made
and filed by his or her executor, administrator, or other person charged
with his or her property. If a final return of a decedent is for a frac-
tional part of a year, the due date of such return shall be, FOR TAXABLE
YEARS  BEGINNING  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,   the
fifteenth  day  of  the  fourth month following the close of the twelve-
month period [which] THAT began with the first day  of  such  fractional
part  of  the year, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND SIXTEEN,  THE  FIFTEENTH  DAY  OF  THE  THIRD  MONTH
FOLLOWING THE CLOSE OF THE TWELVE-MONTH PERIOD THAT BEGAN WITH THE FIRST
DAY OF SUCH FRACTIONAL PART OF THE YEAR.
  S  19. Subdivision (i) of section 11-527 of the administrative code of
the city of New York is amended to read as follows:

S. 6409--A                         40                         A. 9009--A

  (i) Prepaid tax. For purposes of this section, any  tax  paid  by  the
taxpayer  before  the last day prescribed for its payment and any amount
paid by the taxpayer as estimated tax for a taxable year shall be deemed
to have been paid by the taxpayer, FOR TAXABLE  YEARS  BEGINNING  BEFORE
JANUARY  FIRST, TWO THOUSAND SIXTEEN, on the fifteenth day of the fourth
month following the close of his or her taxable  year  with  respect  to
which  such  amount  constitutes  a  credit or payment, AND, FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON  THE
FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF HIS OR HER TAXA-
BLE  YEAR  WITH  RESPECT  TO  WHICH  SUCH AMOUNT CONSTITUTES A CREDIT OR
PAYMENT.
  S 20. Paragraph (a) of subdivision 1 of section 11-653 of the adminis-
trative code of the city of New York, as added by section 1 of part D of
chapter 60 of the laws of 2015, is amended to read as follows:
  (a) For the privilege of doing business, or of employing  capital,  or
of  owning  or  leasing property in the city in a corporate or organized
capacity, or of maintaining an office 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 subdivision 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] THAT shall be filed, except as hereinafter provided, FOR TAXABLE
YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on or before
the fifteenth day of March next succeeding the close of each such CALEN-
DAR year, or, in the case of a taxpayer  [which]  THAT  reports  on  the
basis  of  a fiscal year, within two and one-half months after the close
of EACH such fiscal year, AND FOR TAXABLE YEARS BEGINNING  ON  OR  AFTER
JANUARY  FIRST,  TWO THOUSAND SIXTEEN, ON OR BEFORE THE FIFTEENTH DAY OF
APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR,  IN  THE
CASE  OF  A  TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN
THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR,  and
shall be paid as hereinafter provided.
  S  21.  Subdivision  1 of section 11-655 of the administrative code of
the city of New York, as added by section 1 of part D of chapter  60  of
the laws of 2015, is amended to read as follows:
  1. Every corporation having an officer, agent or representative within
the city, shall, annually on or before March fifteenth FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR
BEFORE  APRIL  FIFTEENTH FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND SIXTEEN, 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]  EXCEPT  THAT  A  CORPORATION  THAT
REPORTS  ON  THE  BASIS OF A FISCAL YEAR SHALL TRANSMIT SUCH REPORT, FOR
TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,
WITHIN  TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR, AND,
FOR TAXABLE YEARS BEGINNING AFTER JANUARY FIRST, TWO  THOUSAND  SIXTEEN,
WITHIN  THREE  AND  ONE-HALF  MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR.
EVERY taxpayer [which] THAT 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

S. 6409--A                         41                         A. 9009--A

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
the  preceding  paragraph,  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.
  S 22. Subdivision 1 of section 11-658 of the  administrative  code  of
the  city  of New York, as added by section 1 of part D of chapter 60 of
the laws of 2015, is amended to read as follows:
  1. [Every] FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOU-
SAND SIXTEEN, 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  twen-
ty-five  per centum of the preceding year's tax if such preceding year's
tax exceeded one thousand dollars. FOR TAXABLE  YEARS  BEGINNING  ON  OR
AFTER  JANUARY FIRST, TWO THOUSAND SIXTEEN, SUCH AMOUNT SHALL BE PAID ON
OR BEFORE THE FIFTEENTH DAY OF MARCH NEXT SUCCEEDING THE CLOSE  OF  EACH
SUCH  CALENDAR  YEAR,  OR, IN THE CASE OF A TAXPAYER THAT REPORTS ON THE
BASIS OF A FISCAL YEAR, WITHIN TWO AND ONE-HALF MONTHS AFTER  THE  CLOSE
OF EACH SUCH FISCAL YEAR.
  S  23.  Subdivision  6 of section 11-658 of the administrative code of
the city of New York, as added by section 1 of part D of chapter  60  of
the laws of 2015, is amended to read as follows:
  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  EITHER  THE  MANDATORY  FIRST
INSTALLMENT  IS  PAID  PURSUANT TO SUBDIVISION ONE OF THIS SECTION OR 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.
  S 24. This act shall take effect immediately provided,  however,  that
section  five  of this act shall take effect on the same date and in the
same manner as section 26 of part S of chapter 59 of the laws  of  2014,
takes  effect,  and that section five of this act shall apply to taxable
years beginning on or after January 1, 2018 and that section thirteen of
this act shall apply to taxable years beginning on or after  January  1,
2016.

                                 PART R

  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

S. 6409--A                         42                         A. 9009--A

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 SEVENTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED
NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR 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) ELEVEN THOUSAND SIX HUNDRED 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) EIGHTEEN AND THIRTEEN HUNDREDTHS PERCENT OF THE
EXCESS OF THE BUSINESS INCOME BASE OVER  THREE  HUNDRED  FIFTY  THOUSAND
DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS;
  S  2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
amended to read as follows:
  (39)  (A)  In  the  case  of  a  taxpayer who is a small business OR A
TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
SMALL BUSINESS, who OR WHICH has business income and/or farm  income  as
defined  in  the  laws  of the United States, an amount equal to [three]
FIFTEEN percent of the net items of income,  gain,  loss  and  deduction
attributable  to  such  business  or farm entering into federal adjusted
gross income, but not less than zero[, for taxable years beginning after
two thousand thirteen, an  amount  equal  to  three  and  three-quarters
percent  of  the net items of income, gain, loss and deduction attribut-
able to such business or  farm  entering  into  federal  adjusted  gross
income,  but  not  less than zero, for taxable years beginning after two
thousand fourteen, and an amount equal to five percent of the net  items
of  income,  gain,  loss  and deduction attributable to such business or
farm entering into federal adjusted gross  income,  but  not  less  than
zero, for taxable years beginning after two thousand fifteen].
  (B)  (I)  For  the purposes of this paragraph, the term small business
shall mean: (I) a sole proprietor [or a farm business] who  employs  one
or  more persons during the taxable year and who has net business income
or net farm income of less than two hundred fifty thousand  dollars,  OR
(II)  A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION
THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE  PERSONS  AND  HAS  NEW
YORK  GROSS  BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS
GREATER THAN ZERO BUT  LESS  THAN  ONE  MILLION  FIVE  HUNDRED  THOUSAND
DOLLARS  OR  NET  FARM  INCOME  ATTRIBUTABLE  TO A FARM BUSINESS THAT IS
GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS.
  (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS  BUSINESS
INCOME  SHALL  MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A
PARTNERSHIP NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH  (B)
OF  PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT
OF THIS ARTICLE, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION,  NEW
YORK  RECEIPTS  INCLUDED  IN  THE  NUMERATOR OF THE APPORTIONMENT FACTOR
DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA-
BLE YEAR.

S. 6409--A                         43                         A. 9009--A

  (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A  NON-FARM  SMALL
BUSINESS  THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S
CORPORATION, THE TAXPAYER'S INCOME  ATTRIBUTABLE  TO  THE  NET  BUSINESS
INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
NIES,  PARTNERSHIPS  OR  NEW  YORK  S CORPORATIONS MUST BE LESS THAN TWO
HUNDRED FIFTY THOUSAND DOLLARS.
  S 3. Paragraph 35 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 Y
of chapter 59 of the laws of 2013, is amended to read as follows:
  (35) (A) In the case of a taxpayer  who  is  a  small  business  OR  A
TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
SMALL  BUSINESS,  who OR WHICH has business income and/or farm income as
defined in the laws of the United States, an  amount  equal  to  [three]
FIFTEEN  percent  of  the  net items of income, gain, loss and deduction
attributable to such business or farm  entering  into  federal  adjusted
gross income, but not less than zero[, for taxable years beginning after
two  thousand  thirteen,  an  amount  equal  to three and three-quarters
percent of the net items of income, gain, loss and  deduction  attribut-
able  to  such  business  or  farm  entering into federal adjusted gross
income, but not less than zero, for taxable years  beginning  after  two
thousand  fourteen, and an amount equal to five percent of the net items
of income, gain, loss and deduction attributable  to  such  business  or
farm  entering  into  federal  adjusted  gross income, but not less than
zero, for taxable years beginning after two thousand fifteen].
  (B) (I) For the purposes of this paragraph, the  term  small  business
shall  mean:  (I) a sole proprietor [or a farm business] who employs one
or more persons during the taxable year and who has net business  income
or  net  farm income of less than two hundred fifty thousand dollars; OR
(II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S  CORPORATION
THAT  DURING  THE  TAXABLE  YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW
YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS  THAT  IS
GREATER  THAN  ZERO  BUT  LESS  THAN  ONE  MILLION FIVE HUNDRED THOUSAND
DOLLARS OR NET FARM INCOME ATTRIBUTABLE  TO  A  FARM  BUSINESS  THAT  IS
GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS.
  (II)  FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS
INCOME SHALL MEAN:  (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR  A
PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B)
OF  PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT
OF ARTICLE TWENTY-TWO OF THE TAX LAW, AND, (II) IN THE  CASE  OF  A  NEW
YORK  S  CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE
APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF ARTI-
CLE NINE-A OF THE TAX LAW FOR THE TAXABLE YEAR.
  (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A  NON-FARM  SMALL
BUSINESS  THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S
CORPORATION, THE TAXPAYER'S INCOME  ATTRIBUTABLE  TO  THE  NET  BUSINESS
INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
NIES,  PARTNERSHIPS  OR  NEW  YORK  S CORPORATIONS MUST BE LESS THAN TWO
HUNDRED FIFTY THOUSAND DOLLARS.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.

                                 PART S

  Section 1. This act shall be known and may be cited as  the  "parental
choice in education act".

S. 6409--A                         44                         A. 9009--A

  S  2.  The education law is amended by adding a new article 25 to read
as follows:
                               ARTICLE 25
              EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT
SECTION 1209. SHORT TITLE.
        1210. DEFINITIONS.
        1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1212. APPLICATIONS   FOR   APPROVAL  TO  ISSUE  CERTIFICATES  OF
                RECEIPT.
        1213. APPLICATION APPROVAL FOR CERTIFICATES OF RECEIPT.
        1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1215. REPORTING AND RECORDKEEPING.
        1216. JOINT ANNUAL REPORT.
        1217. COMMISSIONER; POWERS.
  S 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT".
  S  1210.  DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "AUTHORIZED CONTRIBUTION" MEANS THE  CONTRIBUTION  AMOUNT  THAT  IS
LISTED ON THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAY-
ER.
  2.  "CONTRIBUTION"  MEANS  A  DONATION PAID BY CASH, CHECK, ELECTRONIC
FUNDS TRANSFER, DEBIT CARD OR CREDIT CARD THAT IS  MADE  BY  A  TAXPAYER
DURING THE TAXABLE YEAR.
  3.  "EDUCATIONAL  PROGRAM"  MEANS  AN ACADEMIC OR SIMILAR PROGRAM OF A
PUBLIC SCHOOL THAT ENHANCES THE CURRICULUM OR ACADEMIC  PROGRAM  OF  THE
PUBLIC  SCHOOL,  OR  PROVIDES  A  PRE-KINDERGARTEN  PROGRAM  TO A PUBLIC
SCHOOL. FOR PURPOSES OF THIS  DEFINITION,  THE  INSTRUCTION,  MATERIALS,
PROGRAMS  AND  OTHER  ACTIVITIES  OFFERED  BY  OR THROUGH AN EDUCATIONAL
PROGRAM MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING FEATURES: (A)
INSTRUCTION OR MATERIALS PROMOTING HEALTH, PHYSICAL EDUCATION, AND FAMI-
LY AND CONSUMER SCIENCES; LITERARY, PERFORMING AND  VISUAL  ARTS;  MATH-
EMATICS,  SOCIAL  STUDIES,  TECHNOLOGY  AND  SCIENTIFIC ACHIEVEMENT; (B)
INSTRUCTION OR PROGRAMMING  TO  MEET  THE  EDUCATION  NEEDS  OF  AT-RISK
STUDENTS  OR  STUDENTS  WITH  DISABILITIES,  INCLUDING TUTORING OR COUN-
SELING; OR (C) THE USE OF SPECIALIZED INSTRUCTIONAL MATERIALS,  INSTRUC-
TORS OR INSTRUCTION NOT PROVIDED BY A PUBLIC SCHOOL.
  4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS AN ENTITY THAT:
  (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF
SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B) USES AT LEAST
NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALEN-
DAR YEAR AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS DURING SUCH
YEAR FOR SCHOLARSHIPS; (C) PROVIDES MORE THAN FIFTY PERCENT OF ITS SCHO-
LARSHIPS  DURING  A  CALENDAR  YEAR  TO  ELIGIBLE PUPILS WHO RESIDE IN A
HOUSEHOLD THAT HAS AN INCOME NOT TO EXCEED ONE HUNDRED FIFTY PERCENT  OF
THE  INCOME  QUALIFICATION REQUIRED FOR THE REDUCED PRICE SCHOOL LUNCHES
UNDER THE NATIONAL SCHOOL LUNCH ACT, PROVIDED HOWEVER FOR  THE  PURPOSES
OF  AN EDUCATIONAL SCHOLARSHIP ORGANIZATION FULFILLING SUCH REQUIREMENT,
AN EDUCATIONAL SCHOLARSHIP ORGANIZATION MAY ENTER INTO AN AGREEMENT WITH
ANOTHER EDUCATIONAL SCHOLARSHIP ORGANIZATION OR ORGANIZATIONS TO JOINTLY
REPORT THEIR SCHOLARSHIP  INFORMATION  TO  MEET  SUCH  REQUIREMENT;  (D)
DEPOSITS  AND  HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM  THE  ORGAN-
IZATION'S OPERATING OR OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR
INCOME  ARE  WITHDRAWN  FOR  USE;  (E) PROVIDES SCHOLARSHIPS TO ELIGIBLE

S. 6409--A                         45                         A. 9009--A

PUPILS FOR USE AT NOT FEWER THAN THREE QUALIFIED  SCHOOLS;  AND  (F)  IS
APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  5.  "ELIGIBLE  PUPIL"  MEANS  A  CHILD  WHO IS: (A) A RESIDENT OF THIS
STATE; (B) OF SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE  OF  SECTION
THIRTY-TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR
BEFORE  DECEMBER  FIRST OF THE YEAR IN WHICH SUCH CHILD IS ENROLLED IN A
PRE-KINDERGARTEN PROGRAM; (C) ATTENDS OR IS ABOUT TO ATTEND A  QUALIFIED
SCHOOL; AND (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS
INCOME  OF TWO HUNDRED FIFTY THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER,
FOR HOUSEHOLDS WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME  LEVEL
SHALL  BE  INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD, NOT TO
EXCEED THREE HUNDRED THOUSAND DOLLARS.
  6. "LOCAL EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY THAT:  (A)  IS
EXEMPT  FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE; (B)  IS  ESTABLISHED  FOR
THE  PURPOSE  OF  SUPPORTING AT LEAST ONE PUBLIC SCHOOL OR PUBLIC SCHOOL
DISTRICT LOCATED IN THIS STATE; (C) USES AT LEAST NINETY PERCENT OF  THE
QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR AND ANY INCOME
DERIVED  FROM  QUALIFIED CONTRIBUTIONS DURING SUCH MONTHS TO SUPPORT THE
PUBLIC SCHOOL OR SCHOOLS OR PUBLIC SCHOOL  DISTRICT  OR  DISTRICTS  THAT
SUCH FUND HAS BEEN ESTABLISHED TO SUPPORT; (D) DEPOSITS AND HOLDS QUALI-
FIED  CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS
IN AN ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER  FUNDS
UNTIL  SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; AND
(E) IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS  ARTI-
CLE.
  7.  "NON-PUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM, ELEMENTARY,  OR  SECONDARY  SECTARIAN  OR  NONSECTARIAN  SCHOOL
LOCATED  IN  THIS  STATE,  OTHER  THAN  A  PUBLIC  SCHOOL, THAT PROVIDES
INSTRUCTION AT ONE OR MORE LOCATIONS TO AN ELIGIBLE PUPIL IN  ACCORDANCE
WITH SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
  8.  "PUBLIC  EDUCATION  ENTITY"  MEANS  A  PUBLIC SCHOOL DISTRICT OR A
PUBLIC SCHOOL IN THIS STATE, PROVIDED THAT SUCH PUBLIC  SCHOOL  DISTRICT
OR PUBLIC SCHOOL: (A) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY
INCOME  DERIVED  FROM SUCH QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS
SEPARATE FROM THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT'S OPERATING OR
OTHER FUNDS UNTIL SUCH QUALIFIED CONTRIBUTIONS OR INCOME  ARE  WITHDRAWN
FOR  USE;  AND  (B)  IS APPROVED TO RECEIVE AUTHORIZED CONTRIBUTIONS AND
ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR  SECONDARY  SCHOOL  IN
THIS STATE PURSUANT TO ARTICLE ELEVEN OF THE CONSTITUTION, BUT SHALL NOT
INCLUDE  A  CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAP-
TER.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A TAXPAYER TO A PUBLIC EDUCATION ENTITY,  SCHOOL  IMPROVEMENT  ORGANIZA-
TION,  LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION
LISTED IN THE  CONTRIBUTION  AUTHORIZATION  CERTIFICATE  ISSUED  TO  THE
TAXPAYER  FOR  WHICH  THE TAXPAYER HAS RECEIVED A CERTIFICATE OF RECEIPT
FROM SUCH ENTITY, FUND OR ORGANIZATION. A CONTRIBUTION DOES NOT  QUALIFY
IF  THE  TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN ENTITY OR
ORGANIZATION FOR THE DIRECT  BENEFIT  OF  ANY  PARTICULAR  OR  SPECIFIED
STUDENT.
  11.  "QUALIFIED  SCHOOL"  MEANS  A  PUBLIC SCHOOL OR NON-PUBLIC SCHOOL
LOCATED IN THIS STATE.
  12. "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP  OR  TUITION  GRANT
AWARDED  TO  AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL IN AN AMOUNT

S. 6409--A                         46                         A. 9009--A

NOT TO EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL LESS  ANY  OTHER
EDUCATIONAL SCHOLARSHIP OR TUITION GRANT RECEIVED BY SUCH ELIGIBLE PUPIL
OR  HIS  OR  HER PARENT, PARENTS, LEGAL GUARDIAN, OR LEGAL GUARDIANS FOR
SUCH  ELIGIBLE  PUPIL'S  TUITION;  PROVIDED,  HOWEVER, IN THE CASE OF AN
ELIGIBLE PUPIL ATTENDING A PUBLIC SCHOOL OF A  DISTRICT  OF  WHICH  SUCH
PUPIL  IS  NOT  A RESIDENT, THE AMOUNT OF THE EDUCATIONAL SCHOLARSHIP OR
TUITION GRANT AWARDED MAY NOT EXCEED THE TUITION CHARGED BY  THE  PUBLIC
SCHOOL PURSUANT TO PARAGRAPH D OF SUBDIVISION FOUR OF SECTION THIRTY-TWO
HUNDRED  TWO  OF  THIS CHAPTER, BUT ONLY IF THE SCHOOL DISTRICT OF WHICH
SUCH PUPIL IS A RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
  13. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS  A  NOT-FOR-PROFIT  ENTITY
THAT:  (A)  IS  EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE;  (B)  USES
AT  LEAST  NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING
THE CALENDAR YEAR AND ANY INCOME DERIVED  FROM  QUALIFIED  CONTRIBUTIONS
DURING  SUCH  MONTHS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
LOCATED IN THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER
BY MAKING CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR  PUBLIC  SCHOOL
DISTRICTS LOCATED IN THIS STATE OR PROVIDING EDUCATIONAL PROGRAMS TO, OR
IN  CONJUNCTION  WITH,  ONE  OR  MORE  PUBLIC  SCHOOLS  OR PUBLIC SCHOOL
DISTRICTS LOCATED IN  THIS  STATE;  (C)  DEPOSITS  AND  HOLDS  QUALIFIED
CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT THAT IS SEPARATE FROM  THE  ORGANIZATION'S  OPERATING  OR  OTHER
FUNDS  UNTIL  SUCH  QUALIFIED  CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR
USE; AND (D) IS APPROVED TO ISSUE CERTIFICATES OF  RECEIPT  PURSUANT  TO
THIS  ARTICLE.    SUCH  TERM  INCLUDES  A  PRE-KINDERGARTEN  PROGRAM  OR
NOT-FOR-PROFIT ENTITY THAT ALLOWS THE TAXPAYER TO CHOOSE TO DONATE TO  A
PROGRAM PROJECT OR INITIATIVE FOR USE IN A PUBLIC SCHOOL.
  S  1211.  APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS
AND PUBLIC SCHOOL DISTRICTS.   ALL  PUBLIC  SCHOOLS  AND  PUBLIC  SCHOOL
DISTRICTS  SHALL BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT FOR QUALI-
FIED CONTRIBUTIONS IN ACCORDANCE WITH SECTION FORTY-TWO OF THE TAX  LAW,
PROVIDED,  HOWEVER,  THAT  SUCH  PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT
SHALL NOT BE APPROVED IF EITHER: (A) SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL
DISTRICT FAILS TO DEPOSIT  AND  HOLD  QUALIFIED  CONTRIBUTIONS  AND  ANY
INCOME  DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPA-
RATE FROM THE SCHOOL OR SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL
SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE; OR (B) THE
COMMISSIONER HAS REVOKED SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR  PUBLIC
SCHOOL  DISTRICT  PURSUANT  TO  SECTION  TWELVE HUNDRED FOURTEEN OF THIS
ARTICLE.
  2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS AND LOCAL EDUCATION FUNDS.  NO  SCHOOL  IMPROVEMENT  ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
ANY  CERTIFICATES  OF  RECEIPT WITHOUT FILING AN APPLICATION PURSUANT TO
SECTION TWELVE HUNDRED TWELVE OF THIS  ARTICLE  AND  RECEIVING  APPROVAL
PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
  S  1212.  APPLICATIONS  FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP  ORGANIZA-
TION AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE COMMIS-
SIONER  FOR  APPROVAL  TO  ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND
MANNER PRESCRIBED BY THE COMMISSIONER, PROVIDED  THAT  SUCH  APPLICATION
SHALL INCLUDE: (A) SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL IMPROVE-
MENT  ORGANIZATION,  LOCAL  EDUCATION  FUND  OR  EDUCATIONAL SCHOLARSHIP
ORGANIZATION HAS BEEN GRANTED EXEMPTION FROM  TAXATION  UNDER  PARAGRAPH
THREE  OF  SUBSECTION  (C)  OF  SECTION FIVE HUNDRED ONE OF THE INTERNAL

S. 6409--A                         47                         A. 9009--A

REVENUE CODE; (B) A LIST OF NAMES AND ADDRESSES OF ALL  MEMBERS  OF  THE
GOVERNING  BOARD OF THE SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION
FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZATION; AND (C) FOR AN EDUCATIONAL
SCHOLARSHIP  ORGANIZATION,  SUBMISSION  OF  CRITERIA FOR THE AWARDING OF
SCHOLARSHIPS TO ELIGIBLE STUDENTS.
  S 1213. APPLICATION APPROVAL FOR CERTIFICATES OF RECEIPT. 1. IN GENER-
AL. THE COMMISSIONER SHALL REVIEW EACH APPLICATION TO ISSUE CERTIFICATES
OF RECEIPT PURSUANT TO THIS  ARTICLE.  THE  COMMISSIONER  SHALL  PUBLISH
CRITERIA  USED  TO  DETERMINE SELECTION AND ESTABLISH AN APPEALS PROCESS
FOR APPLICATIONS THAT ARE NOT APPROVED.
  2. NOTIFICATION. APPLICANTS SHALL BE NOTIFIED  OF  THE  COMMISSIONER'S
DETERMINATION WITHIN FIVE BUSINESS DAYS OF THE DETERMINATION.
  S  1214.  REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. THE
COMMISSIONER, IN CONSULTATION WITH  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE,  MAY  REVOKE THE APPROVAL OF A SCHOOL IMPROVEMENT ORGANIZATION,
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  LOCAL  EDUCATION  FUND,  PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
FINDING  THAT  SUCH  ORGANIZATION,  FUND,  SCHOOL OR SCHOOL DISTRICT HAS
VIOLATED THIS ARTICLE  OR  SECTION  FORTY-TWO  OF  THE  TAX  LAW.  THESE
VIOLATIONS  SHALL  INCLUDE, BUT NOT BE LIMITED TO, ANY OF THE FOLLOWING:
(A) FAILURE  TO  MEET  THE  REQUIREMENTS  OF  THIS  ARTICLE  OR  SECTION
FORTY-TWO  OF THE TAX LAW; (B) THE FAILURE TO MAINTAIN FULL AND ADEQUATE
RECORDS WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS; (C)  THE
FAILURE  TO  SUPPLY SUCH RECORDS TO THE COMMISSIONER, THE DEPARTMENT, OR
THE DEPARTMENT OF TAXATION AND FINANCE WHEN REQUESTED; OR (D) THE  FAIL-
URE  TO  PROVIDE NOTICE TO THE DEPARTMENT OF TAXATION AND FINANCE OF THE
ISSUANCE OR NON-ISSUANCE OF CERTIFICATES OF RECEIPT PURSUANT TO  SECTION
FORTY-TWO OF THE TAX LAW; PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL
NOT  REVOKE  APPROVAL PURSUANT TO THIS SECTION BASED UPON A VIOLATION OF
THE TAX LAW UNLESS THE COMMISSIONER OF TAXATION AND FINANCE AGREES  THAT
REVOCATION  IS  WARRANTED;  AND  PROVIDED  FURTHER THAT THE COMMISSIONER
SHALL NOT REVOKE APPROVAL PURSUANT TO THIS SECTION WHEN THE  FAILURE  TO
COMPLY IS DUE TO CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISRE-
GARD  FOR  THE  LAW.    WITHIN  FIVE  DAYS OF THE DETERMINATION REVOKING
APPROVAL, THE COMMISSIONER SHALL PROVIDE NOTICE OF  SUCH  REVOCATION  TO
THE  EDUCATIONAL  SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND
TO THE DEPARTMENT OF TAXATION AND FINANCE. THE COMMISSIONER SHALL ESTAB-
LISH AN APPEALS PROCESS FOR DETERMINATIONS REVOKING APPROVALS.
  S 1215. REPORTING AND RECORDKEEPING. 1.  REPORTING.  EACH  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
TION FUND, PUBLIC SCHOOL AND PUBLIC SCHOOL DISTRICT THAT RECEIVES QUALI-
FIED CONTRIBUTIONS SHALL REPORT TO THE COMMISSIONER AND  THE  DEPARTMENT
OF  TAXATION  AND FINANCE BY JANUARY THIRTY-FIRST OF EACH CALENDAR YEAR.
SUCH REPORT SHALL BE IN THE FORM AND MANNER PRESCRIBED  BY  THE  COMMIS-
SIONER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND FINANCE.
  2.  RECORDKEEPING.  EACH  EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL
IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND PUBLIC
SCHOOL DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE  OF  RECEIPT  SHALL
MAINTAIN  RECORDS INCLUDING: (A) NOTIFICATIONS RECEIVED FROM THE DEPART-
MENT OF TAXATION AND FINANCE; (B) NOTIFICATIONS MADE TO  THE  DEPARTMENT
OF TAXATION AND FINANCE; (C) COPIES OF QUALIFIED CONTRIBUTIONS RECEIVED;
(D) COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIBUTIONS; (E) COPIES OF
ISSUED  CERTIFICATES OF RECEIPT; (F) ANNUAL FINANCIAL STATEMENTS; (G) IN
THE CASE OF SCHOOL IMPROVEMENT  ORGANIZATIONS,  EDUCATIONAL  SCHOLARSHIP
ORGANIZATIONS  AND  LOCAL  EDUCATION  FUNDS,  THE  APPLICATION SUBMITTED

S. 6409--A                         48                         A. 9009--A

PURSUANT TO SECTION TWELVE  HUNDRED  TWELVE  OF  THIS  ARTICLE  AND  THE
APPROVAL  ISSUED  BY  THE  COMMISSIONER;  AND  (H) ANY OTHER INFORMATION
PRESCRIBED BY THE COMMISSIONER. SUCH RECORDS SHALL BE MAINTAINED BY  THE
ENTITY OR ORGANIZATION FOR FIVE YEARS.
  S  1216.  JOINT  ANNUAL REPORT.   ON OR BEFORE THE LAST DAY OF MAY FOR
EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION  AND  FINANCE  AND  THE
COMMISSIONER,  JOINTLY,  SHALL  SUBMIT  A  WRITTEN REPORT AS PROVIDED IN
SUBDIVISION (K) OF SECTION FORTY-TWO OF THE TAX LAW.
  S 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
EMERGENCY  BASIS  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION OF THIS
SECTION. THE COMMISSIONER SHALL MAKE ANY  FORMS  REQUIRED  TO  BE  FILED
PURSUANT  TO  THIS  ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS OF
THE EFFECTIVE DATE OF THIS ARTICLE.
  S 3. The education law is amended by adding a new  section  1503-a  to
read as follows:
  S  1503-A.  POWER  TO  ACCEPT AND SOLICIT GIFTS AND DONATIONS. 1.  THE
TRUSTEES OR BOARDS OF EDUCATION OF ALL  SCHOOL  DISTRICTS  ORGANIZED  BY
SPECIAL  LAWS  OR PURSUANT TO THE PROVISIONS OF A GENERAL LAW ARE HEREBY
AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS, DONATIONS,  AND  CONTRIBUTIONS
TO THE DISTRICT AND TO SOLICIT THE SAME.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
GENERAL  OR  SPECIAL  LAW  TO  THE  CONTRARY, THE RECEIPT OF SUCH GIFTS,
DONATIONS AND CONTRIBUTIONS MADE PURSUANT TO ARTICLE TWENTY-FIVE OF THIS
CHAPTER, AND ANY INCOME DERIVED THEREFROM, SHALL BE DISREGARDED FOR  THE
PURPOSES  OF  ALL  APPORTIONMENTS,  COMPUTATIONS,  AND DETERMINATIONS OF
STATE AID.
  S 4. The tax law is amended by adding a new  section  42  to  read  as
follows:
  S  42.  EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. (A) DEFINITIONS.
FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
SAME MEANINGS AS PROVIDED IN SECTION TWELVE HUNDRED TEN OF THE EDUCATION
LAW:  "AUTHORIZED  CONTRIBUTION", "CONTRIBUTION", "EDUCATIONAL PROGRAM",
"EDUCATIONAL SCHOLARSHIP ORGANIZATION", "ELIGIBLE PUPIL", "LOCAL  EDUCA-
TION  FUND",  "NON-PUBLIC  SCHOOL",  "PUBLIC  EDUCATION ENTITY", "PUBLIC
SCHOOL", "QUALIFIED CONTRIBUTION",  "QUALIFIED  SCHOOL",  "SCHOLARSHIP",
AND "SCHOOL IMPROVEMENT ORGANIZATION".
  (B)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SUBJECT TO TAX UNDER ARTICLE
NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL BE ALLOWED AN EDUCATION SCHO-
LARSHIP AND PROGRAM  TAX  CREDIT  AGAINST  SUCH  TAX,  PURSUANT  TO  THE
PROVISIONS  REFERENCED  IN SUBDIVISION (1) OF THIS SECTION, WITH RESPECT
TO QUALIFIED CONTRIBUTIONS MADE DURING THE TAXABLE YEAR.
  (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE THE LESSER  OF
SEVENTY-FIVE PER CENT OF THE TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS OR
ONE  MILLION  DOLLARS.  IF THE TAXPAYER IS A PARTNER IN A PARTNERSHIP OR
SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE  CAP  IMPOSED  BY  THE
PRECEDING  SENTENCE  SHALL  BE  APPLIED AT THE ENTITY LEVEL, SO THAT THE
AGGREGATE CREDIT ALLOWED TO ALL THE PARTNERS  OR  SHAREHOLDERS  OF  EACH
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED ONE MILLION DOLLARS.
  (D)  INFORMATION TO   BE POSTED ON THE DEPARTMENT'S WEBSITE. BEGINNING
ON THE SIXTEENTH DAY OF JANUARY OF EACH  YEAR,  THE  COMMISSIONER  SHALL
MAINTAIN  ON  THE  DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE AMOUNT OF
AVAILABLE CREDIT FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO THIS SECTION.
ADDITIONALLY,  THE  COMMISSIONER  SHALL  MAINTAIN  ON  THE  DEPARTMENT'S
WEBSITE  A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
FUNDS  AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION

S. 6409--A                         49                         A. 9009--A

LAW.  THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A
LIST OF PUBLIC EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,
LOCAL  EDUCATION  FUNDS  AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS WHOSE
APPROVAL  TO  ISSUE CERTIFICATES OF RECEIPT HAS BEEN REVOKED, ALONG WITH
THE DATE OF SUCH REVOCATION.
  (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY,  SCHOOL  IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION,  THE  TAXPAYER  SHALL  APPLY  TO THE DEPARTMENT FOR A CONTRIBUTION
AUTHORIZATION CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION  SHALL
BE  IN  THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT
MAY ALLOW TAXPAYERS TO MAKE MULTIPLE  APPLICATIONS  ON  THE  SAME  FORM,
PROVIDED  THAT  EACH  CONTRIBUTION  LISTED  ON SUCH APPLICATION SHALL BE
TREATED AS A SEPARATE APPLICATION AND THAT THE  DEPARTMENT  SHALL  ISSUE
SEPARATE  CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH APPLICA-
TION.
  (F) CONTRIBUTION AUTHORIZATION CERTIFICATES. 1.  ISSUANCE  OF  CERTIF-
ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON  THE  FIRST  DAY  OF
JANUARY AND ENDS ON THE FIFTEENTH DAY OF JANUARY, THE COMMISSIONER SHALL
ACCEPT  APPLICATIONS  FOR  CONTRIBUTION  AUTHORIZATION CERTIFICATES, BUT
SHALL NOT ISSUE ANY SUCH CERTIFICATES. COMMENCING  AFTER  THE  SIXTEENTH
DAY  OF JANUARY, THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION
CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE ONE,  PROVIDED  THAT
IF  THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR WHICH APPLICATIONS HAVE
BEEN RECEIVED DURING PHASE ONE EXCEEDS THE AMOUNT OF THE CREDIT  CAP  IN
SUBDIVISION  (H) OF THIS SECTION, PHASE ONE OF THE APPLICATIONS SHALL BE
ALLOCATED IN TWO STEPS. IN STEP ONE, THE CREDIT CAP SHALL BE DIVIDED  BY
THE NUMBER OF APPLICATIONS TO DETERMINE A BASE ALLOCATION. EACH APPLICA-
TION  REQUESTING  THE BASE ALLOCATION OR LESS SHALL BE APPROVED. IN STEP
TWO, THE REMAINING FUNDS SHALL BE CALCULATED  AND  ALLOCATED  AMONG  THE
OTHER APPLICATIONS ON A DOLLAR PRO-RATA BASIS.  IF THE CREDIT CAP IS NOT
EXCEEDED,  PHASE TWO COMMENCES ON JANUARY SIXTEENTH AND ENDS ON NOVEMBER
FIRST, DURING WHICH PERIOD THE  COMMISSIONER  SHALL  ISSUE  CONTRIBUTION
AUTHORIZATION CERTIFICATES ON A FIRST-COME FIRST-SERVED BASIS BASED UPON
THE  DATE  THE  DEPARTMENT  RECEIVED THE TAXPAYER'S APPLICATION FOR SUCH
CERTIFICATE; PROVIDED, HOWEVER,  THAT  IF  ON  ANY  DAY  THE  DEPARTMENT
RECEIVES APPLICATIONS REQUESTING CONTRIBUTION AUTHORIZATION CERTIFICATES
FOR CONTRIBUTIONS THAT IN THE AGGREGATE EXCEED THE AMOUNT OF THE REMAIN-
ING  AVAILABLE  CREDIT  ON  SUCH DAY, THE AUTHORIZED CONTRIBUTION AMOUNT
LISTED IN EACH  CONTRIBUTION  AUTHORIZATION  CERTIFICATE  SHALL  BE  THE
TAXPAYER'S  PRO-RATA  SHARE  OF  THE  REMAINING  AVAILABLE  CREDIT.  FOR
PURPOSES OF DETERMINING A TAXPAYER'S PRO-RATA SHARE OF REMAINING  AVAIL-
ABLE  CREDIT,  THE  COMMISSIONER  SHALL MULTIPLY THE AMOUNT OF REMAINING
AVAILABLE CREDIT BY A FRACTION, THE NUMERATOR OF WHICH EQUALS THE  TOTAL
CONTRIBUTION AMOUNT LISTED ON THE TAXPAYER'S APPLICATION AND THE DENOMI-
NATOR  OF  WHICH  EQUALS THE AGGREGATE AMOUNT OF CONTRIBUTIONS LISTED ON
THE APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES RECEIVED ON
SUCH DAY.   CONTRIBUTION  AUTHORIZATION  CERTIFICATES  FOR  APPLICATIONS
RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN THE FIFTH DAY OF
FEBRUARY.    CONTRIBUTION  AUTHORIZATION  CERTIFICATES  FOR APPLICATIONS
RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN TWENTY DAYS OF  RECEIPT
OF  SUCH  APPLICATIONS. PROVIDED, HOWEVER, THAT NO CONTRIBUTION AUTHORI-
ZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL  BE
ISSUED  UNTIL  ALL  OF  THE  CONTRIBUTION AUTHORIZATION CERTIFICATES FOR
APPLICATIONS RECEIVED DURING PHASE ONE HAVE BEEN ISSUED.

S. 6409--A                         50                         A. 9009--A

  2. CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH  CONTRIBUTION
AUTHORIZATION  CERTIFICATE  SHALL STATE: (I) THE DATE SUCH CERTIFICATION
WAS ISSUED; (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED IN
THE CERTIFICATE MUST BE MADE, WHICH SHALL  BE  NO  LATER  THAN  NOVEMBER
THIRTIETH  OF  THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIF-
ICATE WAS ISSUED; (III) THE TAXPAYER'S NAME AND ADDRESS; (IV) THE AMOUNT
OF AUTHORIZED CONTRIBUTIONS; (V) THE CONTRIBUTION AUTHORIZATION  CERTIF-
ICATE'S  CERTIFICATE  NUMBER;  (VI)  THE  NAME AND ADDRESS OF THE PUBLIC
EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND
OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION FOR WHICH THE TAXPAYER MAY MAKE
THE AUTHORIZED CONTRIBUTION; AND (VII) ANY OTHER  INFORMATION  THAT  THE
COMMISSIONER DEEMS NECESSARY.
  3.  NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION AUTHORIZATION
CERTIFICATE. UPON ISSUANCE OF A CONTRIBUTION AUTHORIZATION  CERTIFICATE,
THE  COMMISSIONER SHALL NOTIFY THE EDUCATIONAL SCHOLARSHIP ORGANIZATION,
PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION OR LOCAL EDUCA-
TION FUND OF THE ISSUANCE OF THE CONTRIBUTION AUTHORIZATION  CERTIFICATE
TO  A TAXPAYER. SUCH NOTIFICATION SHALL INCLUDE: (I) THE TAXPAYER'S NAME
AND ADDRESS; (II) THE DATE SUCH CERTIFICATE WAS ISSUED; (III)  THE  DATE
BY  WHICH THE AUTHORIZED CONTRIBUTION LISTED IN THE NOTIFICATION MUST BE
MADE BY THE TAXPAYER; (IV) THE AMOUNT OF  THE  AUTHORIZED  CONTRIBUTION;
(V)  CONTRIBUTION AUTHORIZATION CERTIFICATE; AND (VI) ANY OTHER INFORMA-
TION THAT THE COMMISSIONER DEEMS NECESSARY.
  (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION  SHALL  ISSUE A CERTIFICATE OF RECEIPT FOR ANY
CONTRIBUTION MADE BY A TAXPAYER UNLESS  SUCH  PUBLIC  EDUCATION  ENTITY,
SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION HAS BEEN  APPROVED  TO  ISSUE  CERTIFICATES  OF
RECEIPT  PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC
EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL  ISSUE  A  CERTIFICATE  OF
RECEIPT  FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA-
TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE
DEPARTMENT THAT THE DEPARTMENT ISSUED A CREDIT AUTHORIZATION CERTIFICATE
TO THE TAXPAYER FOR SUCH CONTRIBUTION.
  2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,  LOCAL
EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
AUTHORIZATION  CERTIFICATE ISSUED TO THE TAXPAYER NO LATER THAN THE DATE
BY WHICH SUCH AUTHORIZED CONTRIBUTION  IS  REQUIRED  TO  BE  MADE,  SUCH
PUBLIC  EDUCATION  ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN  THIRTY
DAYS  OF RECEIPT OF THE AUTHORIZED CONTRIBUTION, ISSUE TO THE TAXPAYER A
WRITTEN CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE  TAXPAYER
CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE AMOUNT LISTED ON THE TAXPAY-
ER'S  CONTRIBUTION  AUTHORIZATION CERTIFICATE, THE TAXPAYER SHALL NOT BE
ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.
  3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT  SHALL
STATE:  (I) THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION;  (II)  THE TAXPAYER'S NAME AND ADDRESS; (III)
THE DATE FOR EACH CONTRIBUTION; (IV) THE AMOUNT OF EACH CONTRIBUTION AND
THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER; (V) THE

S. 6409--A                         51                         A. 9009--A

TOTAL AMOUNT OF CONTRIBUTIONS; AND (VI) ANY OTHER INFORMATION  THAT  THE
COMMISSIONER DEEMS NECESSARY.
  4.  NOTIFICATION TO THE DEPARTMENT OF THE ISSUANCE OF A CERTIFICATE OF
RECEIPT. UPON THE ISSUANCE OF A  CERTIFICATE  OF  RECEIPT,  THE  ISSUING
PUBLIC  EDUCATION  ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCA-
TION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN  THIRTY
DAYS  OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT WITH
NOTIFICATION OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND  MANNER
PRESCRIBED BY THE DEPARTMENT.
  5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF  RECEIPT.  EACH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
THIS SECTION REGARDING THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
CERTIFICATE  TO  A  TAXPAYER SHALL, WITHIN THIRTY DAYS OF THE EXPIRATION
DATE FOR SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION  TO  THE
DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
UTION  TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,
LOCAL EDUCATION FUND, OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  IN  THE
FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
  6.  FAILURE  TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF DISCOVERY
OF THE FAILURE OF ANY PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGAN-
IZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION
TO  COMPLY  WITH  THE NOTIFICATION REQUIREMENTS PRESCRIBED BY PARAGRAPHS
FOUR AND/OR FIVE OF THIS SUBDIVISION, THE  COMMISSIONER  SHALL  ISSUE  A
NOTICE  OF  COMPLIANCE FAILURE TO SUCH ENTITY, PROGRAM FUND OR ORGANIZA-
TION. SUCH ENTITY, PROGRAM FUND OR ORGANIZATION SHALL HAVE  THIRTY  DAYS
FROM  THE  DATE  OF  SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY
PARAGRAPHS FOUR AND/OR FIVE OF THIS  SUBDIVISION.  SUCH  PERIOD  MAY  BE
EXTENDED  FOR  AN ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY,
PROGRAM FUND OR ORGANIZATION. UPON THE  EXPIRATION  OF  THE  PERIOD  FOR
COMPLIANCE  SET  FORTH  IN  THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE
COMMISSIONER SHALL NOTIFY THE COMMISSIONER OF EDUCATION THAT SUCH  ENTI-
TY,  PROGRAM  FUND  OR  ORGANIZATION  FAILED  TO  MAKE THE NOTIFICATIONS
PRESCRIBED BY PARAGRAPHS FOUR AND/OR FIVE OF THIS SUBDIVISION.
  (H) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
AVAILABLE  ANNUALLY  FOR  CALENDAR  YEAR  TWO THOUSAND SEVENTEEN AND ALL
FOLLOWING YEARS TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS  TO  PUBLIC
EDUCATION  ENTITIES,  SCHOOL IMPROVEMENT ORGANIZATIONS, AND LOCAL EDUCA-
TION FUNDS SHALL BE TWENTY MILLION DOLLARS. THE MAXIMUM PERMITTED  CRED-
ITS UNDER THIS SECTION AVAILABLE ANNUALLY FOR CALENDAR YEAR TWO THOUSAND
SEVENTEEN  AND  ALL  FOLLOWING  YEARS  TO  ALL  TAXPAYERS  FOR QUALIFIED
CONTRIBUTIONS TO EDUCATIONAL SCHOLARSHIP ORGANIZATIONS  SHALL  BE  FIFTY
MILLION DOLLARS.
  (I) ADDITIONS TO THE CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT. ANY
AMOUNTS  FOR  WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE
OF A CERTIFICATE OF RECEIPT SHALL BE ADDED  TO  THE  CAP  PRESCRIBED  IN
SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
  (J)  OTHER  REQUIREMENTS; MISCELLANEOUS. RECORD KEEPING. EACH TAXPAYER
SHALL, FOR EACH TAXABLE YEAR FOR WHICH  THE  EDUCATION  SCHOLARSHIP  AND
PROGRAM  TAX  CREDIT PROVIDE FOR UNDER THIS SECTION IS CLAIMED, MAINTAIN
RECORDS OF THE FOLLOWING  INFORMATION:  (I)  CONTRIBUTION  AUTHORIZATION
CERTIFICATES  OBTAINED  PURSUANT TO SUBDIVISION (F) OF THIS SECTION, AND
(II) CERTIFICATES OF RECEIPT OBTAINED PURSUANT  TO  SUBDIVISION  (G)  OF
THIS SECTION.

S. 6409--A                         52                         A. 9009--A

  (K)  JOINT  ANNUAL  REPORT.  ON OR BEFORE THE LAST DAY OF MAY FOR EACH
CALENDAR YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER  AND
THE  COMMISSIONER  OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT TO
THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF  THE
ASSEMBLY,  THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN
OF THE ASSEMBLY WAYS AND MEANS  COMMITTEE  REGARDING  THE  CREDIT.  SUCH
REPORT  SHALL  CONTAIN INFORMATION FOR ARTICLES NINE-A AND TWENTY-TWO OF
THIS CHAPTER, RESPECTIVELY, REGARDING: (I) THE  NUMBER  OF  APPLICATIONS
RECEIVED;  (II)  THE  NUMBER  OF AND AGGREGATE VALUE OF THE CONTRIBUTION
AUTHORIZATION CERTIFICATES ISSUED FOR CONTRIBUTIONS TO PUBLIC  EDUCATION
ENTITIES,  SCHOOL  IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND
EDUCATIONAL SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY (III) THE  GEOGRAPH-
ICAL DISTRIBUTION BY COUNTY, TO THE EXTENT FEASIBLE, OF (A) THE APPLICA-
TIONS  FOR  CONTRIBUTION  AUTHORIZATION CERTIFICATES, AND (B) THE PUBLIC
EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION
FUNDS,  AND  EDUCATIONAL  SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED
CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING
GEOGRAPHICAL DISTRIBUTION BY COUNTY, TO  THE  EXTENT  FEASIBLE,  OF  THE
NUMBER  OF  ELIGIBLE  PUPILS  THAT  RECEIVED SCHOLARSHIPS, THE NUMBER OF
QUALIFIED SCHOOLS ATTENDED BY ELIGIBLE PUPILS THAT RECEIVED SUCH  SCHOL-
ARSHIPS, AND THE AVERAGE VALUE OF SCHOLARSHIPS RECEIVED BY SUCH ELIGIBLE
PUPILS.  THE COMMISSIONER AND DESIGNATED EMPLOYEES OF THE DEPARTMENT AND
THE COMMISSIONER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE DEPARTMENT
OF EDUCATION SHALL BE ALLOWED AND ARE DIRECTED  TO  SHARE  AND  EXCHANGE
INFORMATION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCA-
TION  FUNDS  AND  EDUCATIONAL SCHOLARSHIP ORGANIZATIONS THAT APPLIED FOR
APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED  CONTRIBUTIONS;  AND  THE
PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO
ISSUE CERTIFICATES OF RECEIPT, INCLUDING  INFORMATION  CONTAINED  IN  OR
DERIVED  FROM  APPLICATION FORMS AND REPORTS SUBMITTED TO THE DEPARTMENT
OF EDUCATION OR THE COMMISSIONER OF EDUCATION.
  (1) 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 51; AND
  2. ARTICLE 22: SECTION 606, SUBSECTION (CCC).
  S  5.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 22 to read as follows:
  (22) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR CHARITABLE  CONTRIBUTIONS
ALLOWED  UNDER  SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE
TO THE EXTENT SUCH CONTRIBUTIONS ARE USED AS THE  BASIS  OF  THE  CALCU-
LATION OF THE EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT ALLOWED UNDER
SUBDIVISION FIFTY-ONE OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE.
  S  6. Section 210-B of the tax law is amended by adding a new subdivi-
sion 51 to read as follows:
  51. EDUCATION SCHOLARSHIP AND PROGRAM TAX  CREDIT.  (A)  ALLOWANCE  OF
CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN  SECTION  FORTY-TWO  OF THIS CHAPTER, 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 THAT YEAR TO LESS
THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
SECTION  TWO HUNDRED TEN OF THIS ARTICLE. IF THE AMOUNT OF CREDIT ALLOW-
ABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX ON THE FIXED DOLLAR MINIMUM
AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY  BE

S. 6409--A                         53                         A. 9009--A

CARRIED OVER TO THE FOLLOWING YEAR OR YEARS FOR UP TO FIVE YEARS AND MAY
BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  7. 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) EDUCATION SCHOLARSHIP          AMOUNT OF CREDIT UNDER
AND PROGRAM TAX CREDIT UNDER         SUBDIVISION FIFTY-ONE OF SECTION
SUBSECTION (CCC)                     TWO HUNDRED TEN-B
  S  8. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) EDUCATION SCHOLARSHIP AND PROGRAM TAX CREDIT. ALLOWANCE OF CRED-
IT. A TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS  PROVIDED  IN
SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.  IF  THE  AMOUNT  OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
ALLOWED FOR A TAXABLE  YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR
YEARS  FOR  UP TO FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S 9. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 9 to read as follows:
  (9) WITH RESPECT TO A TAXPAYER WHO HAS CLAIMED THE EDUCATION  SCHOLAR-
SHIP  AND  PROGRAM  TAX  CREDIT  FOR QUALIFIED CONTRIBUTIONS PURSUANT TO
SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, THE TAXPAY-
ER'S NEW YORK ITEMIZED DEDUCTION SHALL  BE  REDUCED  BY  ANY  CHARITABLE
CONTRIBUTION  DEDUCTION ALLOWED UNDER SECTION ONE HUNDRED SEVENTY OF THE
INTERNAL REVENUE CODE WITH RESPECT TO SUCH QUALIFIED CONTRIBUTIONS.
  S 10. Section 606 of the tax law is amended by adding a new subsection
(v) to read a follows:
  (V) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT. (1) A TAXPAYER  SHALL
BE ALLOWED A CREDIT, NOT TO EXCEED TWO HUNDRED DOLLARS, THAT IS EQUAL TO
THE  AMOUNT  PAID  BY  THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUC-
TIONAL MATERIALS AND SUPPLIES WITH RESPECT TO CLASSROOM  BASED  INSTRUC-
TION  IN  A  PUBLIC OR NON-PUBLIC ELEMENTARY OR SECONDARY SCHOOL IN THIS
STATE, INCLUDING A CHARTER SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THE
EDUCATION LAW, PROVIDED, HOWEVER, THE TAXPAYER  MUST  BE  A  TEACHER  OR
INSTRUCTOR  AT  SUCH  SCHOOL  FOR AT LEAST NINE HUNDRED HOURS DURING THE
TAXABLE YEAR. FOR PURPOSES OF THIS SUBSECTION, THE TERM  "MATERIALS  AND
SUPPLIES"  MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE DESIGNATED
FOR CLASSROOM USE.
  (2) 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.
  (3)  THE MAXIMUM AMOUNT OF CREDIT THAT SHALL BE ALLOWED ANNUALLY UNDER
THIS SUBSECTION SHALL BE TEN MILLION DOLLARS. IN ORDER TO CLAIM A CREDIT
UNDER THIS SUBSECTION, A TAXPAYER SHALL BE  REQUIRED  TO  APPLY  TO  THE
DEPARTMENT  FOR  APPROVAL DURING THE TAXABLE YEAR. THE TAXPAYER SHALL BE
REQUIRED TO SUBMIT DOCUMENTATION DEMONSTRATING THAT THE  TAXPAYER  IS  A
TEACHER  OR  INSTRUCTOR  AS  REQUIRED UNDER THIS SUBSECTION AND THAT THE
TAXPAYER PURCHASED MATERIALS AND SUPPLIES. THE DEPARTMENT  SHALL  REVIEW
THE APPLICATION AND PROVIDE A TAXPAYER WITH A CERTIFICATE THAT SPECIFIES
HOW  MUCH  CREDIT  THE TAXPAYER IS ENTITLED TO CLAIM. IF REQUIRED BY THE
COMMISSIONER, THE TAXPAYER MUST SUBMIT THAT CERTIFICATE WITH HIS OR  HER
TAX  RETURN. THE COMMISSIONER SHALL ALLOCATE THE CREDITS ON A FIRST COME

S. 6409--A                         54                         A. 9009--A

FIRST SERVED BASIS AND PRESCRIBE THE NECESSARY PROCEDURES FOR  REVIEWING
THE APPLICATIONS AND PRODUCING THE CERTIFICATES.
  S  11.  Subsection  (b)  of  section  612 of the tax law is amended by
adding a new paragraph 43 to read as follows:
  (43) THE AMOUNT OF ANY  FEDERAL  DEDUCTION  FOR  CERTAIN  EXPENSES  OF
ELIGIBLE  EDUCATORS  PURSUANT  TO  SUBPARAGRAPH  (D) OF PARAGRAPH TWO OF
SUBSECTION (A) OF SECTION SIXTY-TWO OF THE INTERNAL REVENUE CODE TO  THE
EXTENT  SUCH  EXPENSES  ARE  USED AS THE BASIS OF THE CALCULATION OF THE
CREDIT ALLOWED UNDER SUBSECTION (V) OF SECTION SIX HUNDRED SIX  OF  THIS
ARTICLE.
  S 12. Section 606 of the tax law is amended by adding a new subsection
(w) to read as follows:
  (W)  FAMILY  CHOICE EDUCATION CREDIT. (1) GENERAL. A RESIDENT TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH  FOUR
OF  THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR QUALI-
FIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS CREDIT:
  (A) THE TERM "ELIGIBLE  STUDENT"  SHALL  MEAN  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.
  (B)  THE  TERM  "QUALIFIED  PRIMARY  OR  SECONDARY  EDUCATION  TUITION
EXPENSES" SHALL MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR  ATTEND-
ANCE  OF  AN ELIGIBLE STUDENT AT A PUBLIC SCHOOL OR A NON-PUBLIC SCHOOL,
AS DEFINED IN SECTION FORTY-TWO OF THIS  CHAPTER.    PROVIDED,  HOWEVER,
TUITION  PAYMENTS  MADE  PURSUANT  TO THE RECEIPT OF ANY SCHOLARSHIPS OR
FINANCIAL AID SHALL BE EXCLUDED FROM THE DEFINITION OF "QUALIFIED PRIMA-
RY OR SECONDARY EDUCATION TUITION EXPENSES".
  (3) ELIGIBILITY. TO BE ELIGIBLE FOR THIS CREDIT, THE NEW YORK ADJUSTED
GROSS INCOME OF THE TAXPAYER FOR THE TAXABLE YEAR, OR IN THE CASE  OF  A
MARRIED COUPLE FILING A JOINT RETURN, THE NEW YORK ADJUSTED GROSS INCOME
OF  THE  MARRIED COUPLE FOR THE TAXABLE YEAR, MAY NOT EXCEED SIXTY THOU-
SAND DOLLARS.
  (4) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL  TO  THE
LESSER OF FIVE HUNDRED DOLLARS PER ELIGIBLE STUDENT OR THE ACTUAL AMOUNT
OF QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES PAID BY THE
TAXPAYER PER ELIGIBLE STUDENT DURING THE TAXABLE YEAR.
  (5)  REFUNDABILITY.  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 CREDIT-
ED 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  13.  Severability.  If any provision of this act or the application
thereof to any person or circumstances is held invalid, such  invalidity
shall  not  affect other provisions or applications of the act which can
be given effect without the invalid provision  or  application,  and  to
this end the provisions of this act are declared to be severable.
  S  14. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2017.

                                 PART T

  Section 1. The tax law is amended by adding a  new  section  187-t  to
read as follows:
  S  187-T. NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (1) A TAXPAYER THAT
OPERATES A MOTOR VEHICLE ON THE NEW YORK STATE  THRUWAY,  AND  PAYS  NEW

S. 6409--A                         55                         A. 9009--A

YORK  STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A
CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY SECTIONS ONE
HUNDRED EIGHTY-THREE AND ONE HUNDRED EIGHTY-FOUR  OF  THIS  ARTICLE  FOR
TAXABLE  YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN
BUT BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN. IN NO EVENT  SHALL  THE
CREDIT  UNDER  THIS SECTION BE ALLOWED IN AN AMOUNT THAT WILL REDUCE THE
TAX TO LESS THAN THE APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED
EIGHTY-THREE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT OF CREDIT  ALLOWED
UNDER  THIS SECTION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,
ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE  CARRIED
FORWARD  TO  THE  FOLLOWING  YEAR  OR YEARS AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (2) FOR PURPOSES OF THIS  SECTION,  THE  FOLLOWING  DEFINITIONS  SHALL
APPLY:
  (A)  "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW:
  (B) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT  ISSUED
BY  AN  AUTHORIZED  ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S
NAME.
  (C) "E-ZPASS COMMERCIAL ACCOUNT" MEANS  A  POST-PAID  E-ZPASS  ACCOUNT
ISSUED  BY  AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER-
PRISE'S NAME.
  (3)(A) THE CREDIT FOR  A  TAXPAYER  HOLDING  AN  E-ZPASS  BUSINESS  OR
COMMERCIAL  ACCOUNT  OR  ACCOUNTS  SHALL  BE IN AN AMOUNT EQUAL TO FIFTY
PERCENT OF THE SUM OF ALL NEW YORK  STATE  THRUWAY  TOLLS  PAID  BY  THE
TAXPAYER  THROUGH  SUCH  AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR.
TO QUALIFY FOR THE CREDIT, THE  TAXPAYER  MUST  HAVE  PAID  ONE  HUNDRED
DOLLARS  OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR
ACCOUNTS DURING THE TAXABLE YEAR. A  TAXPAYER  THAT  PAYS  TEN  THOUSAND
DOLLARS OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH AN E-ZPASS BUSI-
NESS  OR COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT
QUALIFY FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR.
  (B) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN  ACCOUNT
OR  HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID
BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS  SHALL  BE
AGGREGATED  FOR  PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF
NEW YORK STATE THRUWAY TOLLS REFERENCED IN PARAGRAPH (A) OF THIS  SUBDI-
VISION.
  (4)  NOTWITHSTANDING  ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY
CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED
THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI-
TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE  AVAILABLE  TO,  AND
UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE.
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49. NEW YORK STATE THRUWAY TOLLS TAX CREDIT. (A) A TAXPAYER THAT OPER-
ATES A MOTOR VEHICLE, OR A FARM VEHICLE IN CONNECTION  WITH  FARM  OPER-
ATIONS,  ON  THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRUWAY
TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A CREDIT, AS  HEREIN-
AFTER  PROVIDED,  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN  BUT
BEFORE  JANUARY  FIRST,  TWO THOUSAND NINETEEN. 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 SUBDI-
VISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER,  IF  THE
AMOUNT  OF  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR

S. 6409--A                         56                         A. 9009--A

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 SHALL BE CARRIED FORWARD TO THE  FOLLOW-
ING  YEAR  OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH
YEAR OR YEARS.
  (B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS  SHALL
APPLY:
  (1)  "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW.
  (2) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT
RATING OF NOT MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS  OWNED  BY  A
PERSON  PRIMARILY  ENGAGED  IN  PRODUCTION BY MEANS OF (I) THE PLANTING,
CULTIVATION AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD  PRODUCTS
OF  THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY STOCK,
ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED-
ING AND CARE OF LIVESTOCK, BEES, AND POULTRY, OR  (III)  DAIRY  FARMING.
SUCH  FARM  VEHICLE  SHALL BE PRINCIPALLY USED FOR THE TRANSPORTATION OF
AGRICULTURAL OR DAIRY COMMODITIES OR SUPPLIES, OR  USED  IN  CONJUNCTION
WITH  LUMBERING  OPERATIONS  CONNECTED  WITH  BUT ONLY INCIDENTAL TO THE
OPERATION OF A FARM.
  (3) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT  ISSUED
BY  AN  AUTHORIZED  ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S
NAME.
  (4) "E-ZPASS COMMERCIAL ACCOUNT" MEANS  A  POST-PAID  E-ZPASS  ACCOUNT
ISSUED  BY  AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER-
PRISE'S NAME.
  (C)(1) THE CREDIT FOR  A  TAXPAYER  HOLDING  AN  E-ZPASS  BUSINESS  OR
COMMERCIAL  ACCOUNT  OR  ACCOUNTS  SHALL  BE IN AN AMOUNT EQUAL TO FIFTY
PERCENT OF THE SUM OF ALL NEW YORK  STATE  THRUWAY  TOLLS  PAID  BY  THE
TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO
QUALIFY  FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS
OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS
DURING THE TAXABLE YEAR. A TAXPAYER THAT PAYS TEN  THOUSAND  DOLLARS  OR
MORE  IN  NEW  YORK  STATE  THRUWAY TOLLS THROUGH AN E-ZPASS BUSINESS OR
COMMERCIAL ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT  QUALIFY
FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR.
  (2)  THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE AND
HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS  SHALL  BE
IN  AN  AMOUNT  EQUAL  TO ONE HUNDRED PERCENT OF THE SUM OF ALL NEW YORK
STATE THRUWAY TOLLS PAID BY THE TAXPAYER  THROUGH  SUCH  AN  ACCOUNT  OR
ACCOUNTS  DURING  THE  TAXABLE  YEAR FOR THAT FARM VEHICLE, PROVIDED THE
QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH
FARM OPERATIONS.
  (3) A TAXPAYER MAY CLAIM THE CREDIT PROVIDED FOR IN  SUBPARAGRAPH  ONE
OR  TWO  OF  THIS PARAGRAPH IN A TAXABLE YEAR BUT MAY NOT CLAIM A CREDIT
UNDER BOTH SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH IN THE SAME TAXA-
BLE YEAR.
  (4) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN  ACCOUNT
OR  HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID
BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS  SHALL  BE
AGGREGATED  FOR  PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF
NEW YORK STATE THRUWAY TOLLS REFERENCED  IN  SUBPARAGRAPH  ONE  OF  THIS
PARAGRAPH.
  (D)  NOTWITHSTANDING  ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY
CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED
THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI-

S. 6409--A                         57                         A. 9009--A

TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE  AVAILABLE  TO,  AND
UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) NEW YORK STATE THRUWAY TOLLS TAX CREDIT.  (1)  A  TAXPAYER  THAT
OPERATES  A  MOTOR  VEHICLE,  OR  A FARM VEHICLE IN CONNECTION WITH FARM
OPERATIONS, ON THE NEW YORK STATE THRUWAY, AND PAYS NEW YORK STATE THRU-
WAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL  BE  ALLOWED  A  CREDIT,  AS
HEREINAFTER  PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXA-
BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN  BUT
BEFORE  JANUARY  FIRST,  TWO  THOUSAND NINETEEN. IF THE AMOUNT OF CREDIT
ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAY-
ER'S TAX FOR SUCH YEAR, ANY AMOUNT OF  CREDIT  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE YEAR SHALL BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (2)  FOR  PURPOSES  OF  THIS  SECTION, THE FOLLOWING DEFINITIONS SHALL
APPLY:
  (A) "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE  HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW.
  (B) "FARM VEHICLE" MEANS A MOTOR VEHICLE HAVING A GROSS VEHICLE WEIGHT
RATING  OF  NOT  MORE THAN TWENTY-SIX THOUSAND POUNDS THAT IS OWNED BY A
PERSON PRIMARILY ENGAGED IN PRODUCTION BY MEANS  OF  (I)  THE  PLANTING,
CULTIVATION  AND HARVESTING OF AGRICULTURAL, VEGETABLE AND FOOD PRODUCTS
OF THE SOIL, INCLUDING HORTICULTURAL SPECIALTIES SUCH AS NURSERY  STOCK,
ORNAMENTAL SHRUBS, ORNAMENTAL TREES AND FLOWERS, (II) THE RAISING, FEED-
ING  AND  CARE  OF LIVESTOCK, BEES, AND POULTRY, OR (III) DAIRY FARMING.
SUCH FARM VEHICLE SHALL BE PRINCIPALLY USED FOR  THE  TRANSPORTATION  OF
AGRICULTURAL  OR  DAIRY  COMMODITIES OR SUPPLIES, OR USED IN CONJUNCTION
WITH LUMBERING OPERATIONS CONNECTED WITH  BUT  ONLY  INCIDENTAL  TO  THE
OPERATION OF A FARM.
  (C)  "E-ZPASS  INDIVIDUAL  ACCOUNT"  MEANS  A  PREPAID E-ZPASS ACCOUNT
ISSUED BY AN AUTHORIZED ENTITY IN AN INDIVIDUAL'S NAME.
  (D) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT  ISSUED
BY  AN  AUTHORIZED  ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S
NAME.
  (E) "E-ZPASS COMMERCIAL ACCOUNT" MEANS  A  POST-PAID  E-ZPASS  ACCOUNT
ISSUED  BY  AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER-
PRISE'S NAME.
  (3)(A) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS INDIVIDUAL ACCOUNT
OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE  SUM  OF
ALL  NEW  YORK  STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH SUCH AN
ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE  CREDIT,
THE  TAXPAYER  MUST  HAVE  PAID AT LEAST FIFTY DOLLARS IN NEW YORK STATE
THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR.
  (B) THE CREDIT FOR A TAXPAYER HOLDING AN E-ZPASS BUSINESS  OR  COMMER-
CIAL ACCOUNT OR ACCOUNTS SHALL BE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF
THE SUM OF ALL NEW YORK STATE THRUWAY TOLLS PAID BY THE TAXPAYER THROUGH
SUCH  AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO QUALIFY FOR THE
CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS OR MORE  IN  NEW
YORK  STATE  THRUWAY  TOLLS  THROUGH SUCH ACCOUNT OR ACCOUNTS DURING THE
TAXABLE YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR MORE  IN  NEW
YORK  STATE  THRUWAY  TOLLS  THROUGH  AN  E-ZPASS BUSINESS OR COMMERCIAL
ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES  NOT  QUALIFY  FOR  THE
CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR.
  (C)  THE CREDIT FOR A TAXPAYER OWNING AND OPERATING A FARM VEHICLE AND
HOLDING AN E-ZPASS BUSINESS OR COMMERCIAL ACCOUNT OR ACCOUNTS  SHALL  BE

S. 6409--A                         58                         A. 9009--A

IN  AN  AMOUNT  EQUAL  TO ONE HUNDRED PERCENT OF THE SUM OF ALL NEW YORK
STATE THRUWAY TOLLS PAID BY THE TAXPAYER  THROUGH  SUCH  AN  ACCOUNT  OR
ACCOUNTS  DURING  THE  TAXABLE  YEAR FOR THAT FARM VEHICLE, PROVIDED THE
QUALIFYING NEW YORK STATE THRUWAY TOLLS WERE INCURRED IN CONNECTION WITH
FARM OPERATIONS.
  (D)  A TAXPAYER MAY CLAIM THE CREDIT PROVIDED FOR IN SUBPARAGRAPH (A),
(B) OR (C) OF THIS PARAGRAPH IN A TAXABLE YEAR BUT MAY NOT CLAIM A CRED-
IT UNDER MORE THAN ONE SUBPARAGRAPH OF THIS PARAGRAPH IN THE SAME  TAXA-
BLE YEAR.
  (E)  IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN ACCOUNT
OR HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS  PAID
BY  THE  TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS SHALL BE
AGGREGATED FOR PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM  AMOUNTS  OF
NEW  YORK STATE THRUWAY TOLLS REFERENCED IN SUBPARAGRAPHS (A) AND (B) OF
THIS PARAGRAPH.
  (4) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT  OF  ANY
CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED
THROUGH  E-ZPASS  TOLL  RECEIPTS  RECORDS  CREATED AND MAINTAINED BY THE
ENTITY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND  MADE  AVAILABLE  TO,
AND  UPON  REQUEST  BY,  THE DEPARTMENT OF TAXATION AND FINANCE FOR THIS
PURPOSE.
  S 4. 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) NEW YORK STATE                 AMOUNT OF CREDIT UNDER
THRUWAY TOLLS TAX CREDIT             SUBDIVISION FORTY-NINE OF
UNDER SUBSECTION (CCC)               SECTION TWO HUNDRED TEN-B
  S 5. Section 1511 of the tax law is amended by adding a  new  subdivi-
sion (dd) to read as follows:
  (DD)  NEW  YORK  STATE  THRUWAY  TOLLS TAX CREDIT. (1) A TAXPAYER THAT
OPERATES A MOTOR VEHICLE ON THE NEW YORK STATE  THRUWAY,  AND  PAYS  NEW
YORK  STATE THRUWAY TOLLS THROUGH AN E-ZPASS ACCOUNT, SHALL BE ALLOWED A
CREDIT, AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE
FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN  BUT  BEFORE  JANUARY  FIRST,  TWO THOUSAND NINETEEN. 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
FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS  ARTICLE,
OR  TWO  HUNDRED  FIFTY DOLLARS IF SECTION FIFTEEN HUNDRED TWO-A OF THIS
ARTICLE IS APPLICABLE. 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 THAT TAXABLE YEAR  SHALL  BE
CARRIED  FORWARD TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (2) FOR PURPOSES OF THIS  SECTION,  THE  FOLLOWING  DEFINITIONS  SHALL
APPLY.
  (A)  "MOTOR VEHICLE" MEANS A VEHICLE AS DEFINED IN SECTION ONE HUNDRED
TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW.
  (B) "E-ZPASS BUSINESS ACCOUNT" MEANS A PREPAID E-ZPASS ACCOUNT  ISSUED
BY  AN  AUTHORIZED  ENTITY IN A CORPORATION'S OR COMMERCIAL ENTERPRISE'S
NAME.
  (C) "E-ZPASS COMMERCIAL ACCOUNT" MEANS  A  POST-PAID  E-ZPASS  ACCOUNT
ISSUED  BY  AN AUTHORIZED ENTITY IN A CORPORATION'S OR COMMERCIAL ENTER-
PRISE'S NAME.
  (3) (A) THE CREDIT FOR A  TAXPAYER  HOLDING  AN  E-ZPASS  BUSINESS  OR
COMMERCIAL  ACCOUNT  OR  ACCOUNTS  SHALL  BE IN AN AMOUNT EQUAL TO FIFTY

S. 6409--A                         59                         A. 9009--A

PERCENT OF THE SUM OF ALL NEW YORK  STATE  THRUWAY  TOLLS  PAID  BY  THE
TAXPAYER THROUGH SUCH AN ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR. TO
QUALIFY  FOR THE CREDIT, THE TAXPAYER MUST HAVE PAID ONE HUNDRED DOLLARS
OR MORE IN NEW YORK STATE THRUWAY TOLLS THROUGH SUCH ACCOUNT OR ACCOUNTS
DURING  THE  TAXABLE  YEAR. A TAXPAYER THAT PAYS TEN THOUSAND DOLLARS OR
MORE IN NEW YORK STATE THRUWAY TOLLS  THROUGH  AN  E-ZPASS  BUSINESS  OR
COMMERCIAL  ACCOUNT OR ACCOUNTS DURING THE TAXABLE YEAR DOES NOT QUALIFY
FOR THE CREDIT IN ANY AMOUNT IN THAT TAXABLE YEAR.
  (B) IF A TAXPAYER HAS MORE THAN ONE E-ZPASS TRANSPONDER ON AN  ACCOUNT
OR  HAS MORE THAN ONE ACCOUNT, ALL THE NEW YORK STATE THRUWAY TOLLS PAID
BY THE TAXPAYER FOR ALL E-ZPASS TRANSPONDERS AND ALL ACCOUNTS  SHALL  BE
AGGREGATED  FOR  PURPOSES OF APPLYING THE MINIMUM AND MAXIMUM AMOUNTS OF
NEW YORK STATE THRUWAY TOLLS REFERENCED  IN  SUBPARAGRAPH  (A)  OF  THIS
PARAGRAPH.
  (4)  NOTWITHSTANDING  ANY OTHER LAW TO THE CONTRARY, THE AMOUNT OF ANY
CLAIM MADE FOR A NEW YORK STATE THRUWAY TOLLS TAX CREDIT MAY BE VERIFIED
THROUGH E-ZPASS TOLL RECEIPT RECORDS CREATED AND MAINTAINED BY THE ENTI-
TY AUTHORIZED TO ISSUE THE E-ZPASS ACCOUNT AND MADE  AVAILABLE  TO,  AND
UPON REQUEST BY, THE DEPARTMENT FOR THIS PURPOSE.
  S  6.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 22 to read as follows:
  (22) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU-
LATION OF ANY CREDIT ALLOWED UNDER SUBDIVISION FORTY-NINE OF SECTION TWO
HUNDRED TEN-B OF THIS ARTICLE.
  S 7. Subsection (b) of section 612 of the tax law is amended by adding
a new paragraph 43 to read as follows:
  (43) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE CALCU-
LATION OF ANY CREDIT ALLOWED  UNDER  SUBSECTION  (CCC)  OF  SECTION  SIX
HUNDRED SIX OF THIS ARTICLE.
  S  8. Paragraph 2 of subdivision (b) of section 1503 of the tax law is
amended by adding a new subparagraph (W) to read as follows:
  (W) THE AMOUNT OF ANY NEW YORK STATE THRUWAY TOLLS USED IN THE  CALCU-
LATION  OF  ANY CREDIT ALLOWED UNDER SUBDIVISION (DD) OF SECTION FIFTEEN
HUNDRED ELEVEN OF THIS ARTICLE.
  S 9. This act shall take effect immediately.

                                 PART U

  Section 1. Section 19 of Part W-1 of chapter 109 of the laws  of  2006
amending  the  tax  law and other laws relating to providing exemptions,
reimbursements and credits from various taxes  for  certain  alternative
fuels,  as  amended  by section 1 of part V of chapter 59 of the laws of
2014, is amended to read as follows:
  S 19. This act shall take effect immediately; provided, however,  that
sections one through thirteen of this act shall take effect September 1,
2006  and  shall be deemed repealed on September 1, [2016] 2021 and such
repeal shall  apply  in  accordance  with  the  applicable  transitional
provisions  of sections 1106 and 1217 of the tax law, and shall apply to
sales made, fuel compounded or manufactured, and uses  occurring  on  or
after  such  date,  and with respect to sections seven through eleven of
this act, in  accordance  with  applicable  transitional  provisions  of
sections  1106  and  1217  of  the  tax law; provided, however, that the
commissioner of taxation and finance shall be authorized  on  and  after
the  date  this act shall have become a law to adopt and amend any rules
or regulations  and  to  take  any  steps  necessary  to  implement  the
provisions  of this act; provided further that sections fourteen through

S. 6409--A                         60                         A. 9009--A

sixteen of this act shall take effect immediately  and  shall  apply  to
taxable years beginning on or after January 1, 2006.
  S 2. This act shall take effect immediately.

                                 PART V

  Section  1.  Section 37 of the tax law, as added by chapter 109 of the
laws of 2012, subdivision (c) as amended by section  52  of  part  A  of
chapter 59 of the laws of 2014, is amended to read as follows:
  S  37.  [Beer]  ALCOHOLIC  BEVERAGE  production credit. (a) General. A
taxpayer subject to tax under article nine-A or twenty-two of this chap-
ter, that is registered as a distributor under article eighteen of  this
chapter,  and  that  produces  sixty million or fewer gallons of beer OR
CIDER, TWENTY MILLION OR FEWER GALLONS OF WINE, OR EIGHT  HUNDRED  THOU-
SAND OR FEWER GALLONS OF LIQUOR in this state in the taxable year, shall
be allowed a credit against such taxes in the amount specified in subdi-
vision  (b) of this section and pursuant to the provisions referenced in
subdivision (c) of this section. Provided, however, that no credit shall
be allowed for any beer, CIDER, WINE OR LIQUOR  produced  in  excess  of
fifteen  million  five  hundred thousand gallons in the taxable year. If
the taxpayer is a partner in a partnership or shareholder of a New  York
S  corporation,  then the cap imposed by the preceding sentence shall be
applied at the entity level, so that the aggregate credit allowed to all
the partners or shareholders of each such entity  in  the  taxable  year
does not exceed that cap.
  (b)  The  amount  of  the credit per taxpayer per taxable year (or pro
rata share of earned credit in the  case  of  a  partnership)  for  each
gallon  of  beer,  CIDER,  WINE  OR LIQUOR produced in this state [on or
after April first, two thousand twelve] shall be determined as follows:
  (1) for the first five hundred thousand gallons of beer,  CIDER,  WINE
OR  LIQUOR  produced in this state in the taxable year, the credit shall
equal fourteen cents per gallon; and
  (2) for each gallon of beer, CIDER, WINE OR LIQUOR  produced  in  this
state  in  the  taxable year in excess of five hundred thousand gallons,
the credit shall equal four and one-half cents per gallon.
  (c) 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 39.
  (2) Article 22: Section 606, subsections (i) and (uu).
  S  2.  Subdivision  39  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:
  39.  [Beer] ALCOHOLIC BEVERAGE production credit.  A taxpayer shall be
allowed a credit, to be computed as provided in section thirty-seven  of
this chapter, against the tax imposed by this article. In no event shall
the  credit  allowed  under this subdivision for any taxable year reduce
the tax due for such year to less than the amount  prescribed  in  para-
graph (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 or if the taxpayer otherwise
pays tax based on the fixed dollar minimum amount, any amount of  credit
thus not deductible in such taxable year shall be treated as an overpay-
ment 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. 6409--A                         61                         A. 9009--A

  S 3. Subdivision 3 of section 420 of the tax law, as amended by  chap-
ter 94 of the laws of 1934, is amended to read as follows:
  3.  "Alcoholic  beverages"  mean and include CIDERS, AS DEFINED BY THE
ALCOHOLIC BEVERAGE CONTROL LAW, beers, wines or liquors.
  S 4. Section 424 of the tax law is amended by adding a new subdivision
6 to read as follows:
  6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THERE SHALL BE
EXEMPT FROM THE TAXES IMPOSED UNDER THIS  ARTICLE,  ALCOHOLIC  BEVERAGES
FURNISHED  BY A LICENSED PRODUCER OF ALCOHOLIC BEVERAGES AT NO CHARGE TO
A CUSTOMER OR PROSPECTIVE CUSTOMER AT A TASTING HELD IN ACCORDANCE  WITH
THE ALCOHOLIC BEVERAGE CONTROL LAW FOR CONSUMPTION AT SUCH TASTING.
  S  5.  Clause (xxxiv) 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:
(xxxiv) [Beer] ALCOHOLIC BEVERAGE    Amount of credit
production credit under              under subdivision thirty-nine of
subsection (uu)                      section two hundred ten-B
  S 6. Subsection (uu) of section 606 of the tax law, as added by  chap-
ter 109 of the laws of 2012, is amended to read as follows:
  (uu)  [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall be
allowed a credit, to be computed as provided in section thirty-seven  of
this  chapter, against the tax imposed by this article. 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 7. Subdivision 13 of section 1118  of  the  tax  law,  as  added  by
section  2  of  part  U of chapter 59 of the laws of 2015, is amended 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] PRODUCER OF ALCOHOLIC BEVERAGES 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 customer or  prospective  customer  at  such
tasting  for  consumption at such tasting; and (ii) bottles, corks, caps
and labels used to package such alcoholic beverages.
  S 8. This act shall take effect immediately, provided, however,  that:
sections one, two, five and six of this act shall apply to taxable years
beginning  on  or after January 1, 2016; sections three and four of this
act shall apply to taxable periods beginning on or after April 1,  2016;
and section seven of this act shall apply to uses occurring on and after
June 1, 2016.

                                 PART W

  Section  1.  The  tax  law is amended by adding a new section 478-a to
read as follows:
  S 478-A. JEOPARDY ASSESSMENTS. IF THE COMMISSIONER BELIEVES  THAT  THE
COLLECTION OF ANY TAX WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY DETER-
MINE  THE  AMOUNT  OF  SUCH  TAX  AND ASSESS THE SAME, TOGETHER WITH ALL
INTEREST AND PENALTIES PROVIDED BY LAW, AGAINST ANY PERSON LIABLE THERE-
FOR PRIOR TO THE FILING OF HIS OR HER RETURN AND PRIOR TO THE DATE  WHEN
HIS  OR  HER  RETURN  IS  REQUIRED TO BE FILED. THE AMOUNT SO DETERMINED
SHALL BECOME DUE AND PAYABLE TO THE COMMISSIONER BY THE  PERSON  AGAINST

S. 6409--A                         62                         A. 9009--A

WHOM  SUCH  A  JEOPARDY ASSESSMENT IS MADE, AS SOON AS NOTICE THEREOF IS
GIVEN  TO  HIM  OR  HER.  THE  PROVISIONS  OF   SECTION   FOUR   HUNDRED
SEVENTY-EIGHT  OF  THIS  ARTICLE  SHALL  APPLY TO ANY SUCH DETERMINATION
EXCEPT  TO  THE EXTENT THAT THEY MAY BE INCONSISTENT WITH THE PROVISIONS
OF THIS SECTION. THE COMMISSIONER MAY ABATE ANY JEOPARDY  ASSESSMENT  IF
HE  OR  SHE  FINDS  THAT  JEOPARDY DOES NOT EXIST. THE COLLECTION OF ANY
JEOPARDY ASSESSMENT MAY BE STAYED BY FILING WITH THE COMMISSIONER A BOND
ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THIS STATE
AND APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO  SOLVENCY
AND RESPONSIBILITY, OR SUCH OTHER SECURITY ACCEPTABLE TO THE COMMISSION-
ER,  CONDITIONED UPON PAYMENT OF THE AMOUNT ASSESSED AND INTEREST THERE-
ON, OR ANY LESSER AMOUNT TO WHICH SUCH ASSESSMENT MAY BE REDUCED BY  THE
ADMINISTRATIVE  LAW JUDGE OR THE TAX APPEALS TRIBUNAL OR BY A PROCEEDING
UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW  AND  RULES  AS
PROVIDED  IN  SECTION  FOUR  HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, SUCH
PAYMENT TO BE MADE WHEN THE ASSESSMENT OR  ANY  SUCH  REDUCTION  THEREOF
BECOMES FINAL AND NOT SUBJECT TO FURTHER REVIEW. IF SUCH A BOND IS FILED
AND  THEREAFTER  A  PROCEEDING  UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL
PRACTICE LAW AND RULES IS COMMENCED AS PROVIDED IN SECTION FOUR  HUNDRED
SEVENTY-EIGHT  OF  THIS  ARTICLE,  DEPOSIT  OF  THE TAXES, PENALTIES AND
INTEREST ASSESSED SHALL NOT BE REQUIRED AS A CONDITION PRECEDENT TO  THE
COMMENCEMENT  OF  SUCH  PROCEEDING. WHERE A JEOPARDY ASSESSMENT IS MADE,
ANY PROPERTY SEIZED FOR THE COLLECTION OF THE TAX SHALL NOT BE SOLD: (1)
UNTIL EXPIRATION OF THE TIME TO APPLY  FOR  A  HEARING  AS  PROVIDED  IN
SECTION  FOUR  HUNDRED  SEVENTY-EIGHT  OF  THIS ARTICLE, AND (2) IF SUCH
APPLICATION IS TIMELY FILED, UNTIL THE EXPIRATION OF THE TIME TO FILE AN
EXCEPTION TO THE DETERMINATION OF THE ADMINISTRATIVE LAW JUDGE OR, IF AN
EXCEPTION IS TIMELY FILED, UNTIL  FOUR  MONTHS  AFTER  THE  TAX  APPEALS
TRIBUNAL HAS GIVEN NOTICE OF ITS DECISION TO THE PERSON AGAINST WHOM THE
ASSESSMENT  IS MADE; PROVIDED, HOWEVER, SUCH PROPERTY MAY BE SOLD AT ANY
TIME IF SUCH PERSON HAS FAILED TO ATTEND A HEARING OF WHICH  HE  OR  SHE
HAS  BEEN DULY NOTIFIED, OR IF HE OR SHE CONSENTS TO THE SALE, OR IF THE
COMMISSIONER DETERMINES THAT THE EXPENSES OF  CONSERVATION  AND  MAINTE-
NANCE  WILL  GREATLY  REDUCE  THE  NET  PROCEEDS,  OR IF THE PROPERTY IS
PERISHABLE.
  S 2. This act shall take effect immediately.

                                 PART X

  Section 1. Paragraph 2 of subdivision (e) of section 1105 of  the  tax
law,  as  amended  by  section  1 of part Q of chapter 59 of the laws of
2012, is amended to read as follows:
  (2) Except as provided in subdivision (r) of  section  eleven  hundred
eleven  of this part, when occupancy is provided, for a single consider-
ation, with property, services, amusement charges, or any  other  items,
the separate sale of which is not subject to tax under this article, AND
THE  RENT  PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN
SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE,  the
entire consideration shall be treated as rent subject to tax under para-
graph  one of this subdivision; provided, however, that where the amount
of the rent for occupancy is stated separately from the  price  of  such
property,  services,  amusement  charges,  or  other items, on any sales
slip, invoice, receipt, or other statement given the occupant, and  such
rent  is reasonable in relation to the value of such property, services,
amusement charges or other items, only such separately stated rent  will
be subject to tax under paragraph one of this subdivision.

S. 6409--A                         63                         A. 9009--A

  S  2.  Section 1115 of the tax law is amended by adding a new subdivi-
sion (kk) to read as follows:
  (KK)  RENT PAID BY A ROOM REMARKETER TO AN OPERATOR THAT IS NOT A ROOM
REMARKETER FOR AN OCCUPANCY THAT THE ROOM REMARKETER INTENDS TO  PROVIDE
TO  AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE HOTEL UNIT FEE IMPOSED
BY SECTION ELEVEN HUNDRED FOUR OF THIS ARTICLE AND THE  TAX  IMPOSED  BY
SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE, PROVIDED
THAT  SUCH ROOM REMARKETER FURNISHES SUCH OPERATOR A CERTIFICATE IN SUCH
FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMIS-
SIONER. THE EXEMPTION CERTIFICATE PROVIDED FOR BY THIS SUBDIVISION SHALL
BE ADMINISTERED BY THE COMMISSIONER IN CONFORMITY  WITH  THE  RULES  FOR
EXEMPTION OR RESALE CERTIFICATES IN SUBPARAGRAPH (I) OF PARAGRAPH ONE OF
SUBDIVISION (C) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE.
  S  3.  Paragraph 4 of subdivision a of section 11-2502 of the adminis-
trative code of the city of New York, as amended by section 4 of part  Q
of chapter 59 of the laws of 2012, is amended to read as follows:
  (4)  (i)  When occupancy is provided, for a single consideration, with
property, services, amusement charges, or any other items, the  separate
sale  of  which  is  not subject to tax under this chapter, AND THE RENT
PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION  IN  SUBDIVI-
SION  1  OF  THIS  SECTION, the entire consideration shall be treated as
rent subject to tax under paragraph one of this  subdivision;  provided,
however, that where the amount of the rent for occupancy is stated sepa-
rately  from  the price of such property, services, amusement charges or
other items on any sales slip,  invoice,  receipt,  or  other  statement
given  the occupant and such rent is reasonable in relation to the value
of such property, services, amusement charges, or other items, only such
separately stated rent will be subject to tax under this subdivision.
  (ii) In regard to the collection of tax on occupancies by remarketers,
when occupancy is provided, for a single consideration,  with  property,
services,  amusement  charges,  or  any other items, whether or not such
other items are taxable, the rent portion of the consideration for  such
sale  shall be computed as follows: the total consideration for the sale
multiplied by a fraction, the numerator of which shall be the  consider-
ation  paid  to the hotel for the occupancy and the denominator of which
shall be the consideration paid to the hotel for the occupancy plus  the
consideration paid to the providers of the other items being sold, or by
any  other  reasonable  method  pursuant  to  which  the rent portion of
consideration would be no less than the computation of rent  portion  of
consideration  under subparagraph (i) of this paragraph.  Nothing herein
shall be construed to subject to tax or exempt from tax any  service  or
property  or amusement charge or other items otherwise subject to tax or
exempt from tax under this chapter.
  S 4. Section 11-2502 of the administrative code of  the  city  of  New
York is amended by adding a new subdivision 1 to read as follows:
  1.  AN  OCCUPANCY  THAT  AN  OPERATOR  CONVEYS  OR FURNISHES TO A ROOM
REMARKETER THAT THE  ROOM  REMARKETER  INTENDS  TO  CONVEY  OR  FURNISH,
DIRECTLY OR INDIRECTLY, TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE
TAXES  IMPOSED  BY  THIS  SECTION,  PROVIDED  THAT  SUCH ROOM REMARKETER
FURNISHES THE OPERATOR WITH A CERTIFICATE IN SUCH  FORM  AND  CONTAINING
SUCH  INFORMATION  AS  MAY BE PRESCRIBED BY THE COMMISSIONER OF FINANCE.
THE OPERATOR SHALL RETAIN SUCH STATEMENT AND PROVIDE IT TO  THE  COMMIS-
SIONER OF FINANCE UPON REQUEST.
  S 5. This act shall take effect immediately and apply to rent paid for
occupancies on or after June 1, 2016.

S. 6409--A                         64                         A. 9009--A

                                 PART Y

  Section  1.  The  section  heading of section 951-a of the tax law, as
added by chapter 190 of the laws of 1990, is amended to read as follows:
  [Definitions] GENERAL PROVISIONS AND DEFINITIONS.
  S 2. Section 951-a  of  the  tax  law  is  amended  by  adding  a  new
subsection (f) to read as follows:
  (F)  TAX  TREATMENT  OF CHARITABLE CONTRIBUTIONS FOR DETERMINING DOMI-
CILE.   NOTWITHSTANDING ANY OTHER PROVISION OF  ANY  OTHER  LAW  TO  THE
CONTRARY,  THE  MAKING  OF  A  FINANCIAL  CONTRIBUTION,  GIFT,  BEQUEST,
DONATION OR ANY OTHER FINANCIAL INSTRUMENT OR PLEDGE IN  ANY  AMOUNT  OR
THE  DONATION  OR  LOAN OF ANY OBJECT OF ANY VALUE, OR THE VOLUNTEERING,
GIVING OR DONATION OF UNCOMPENSATED TIME,  OR  ANY  COMBINATION  OF  THE
FOREGOING,  CONSIDERED A CHARITABLE CONTRIBUTION UNDER SUBSECTION (C) OF
SECTION ONE HUNDRED SEVENTY OF  THE  INTERNAL  REVENUE  CODE,  OR  TO  A
NOT-FOR-PROFIT  ORGANIZATION, AS DEFINED IN SUBDIVISION SEVEN OF SECTION
ONE HUNDRED SEVENTY-NINE-Q OF THE STATE FINANCE LAW, SHALL NOT  BE  USED
IN  ANY MANNER TO DETERMINE WHERE AN INDIVIDUAL IS DOMICILED AT THE TIME
OF HIS OR HER DEATH.
  S 3. This act shall take effect immediately.

                                 PART Z

  Section 1. Subdivision 2 of section 89-b of the state finance law,  as
amended  by  chapter  56  of  the  laws  of  1993, is amended to read as
follows:
  2. The dedicated highway and bridge trust fund shall consist of  [two]
THREE  accounts: (a) the special obligation reserve and payment account;
[and] (b) the highway and bridge capital account; AND (C)  THE  AVIATION
PURPOSE  ACCOUNT.  Moneys in each account shall be kept separate and not
commingled with any other moneys in the custody of the comptroller.
  S 2. Section 89-b of the state finance law is amended by adding a  new
subdivision 4-a to read as follows:
  4-A.  (A)  THE  AVIATION  PURPOSE  ACCOUNT SHALL CONSIST OF ALL MONEYS
REQUIRED TO BE DEPOSITED BY SECTION THREE HUNDRED TWELVE OF THE TAX  LAW
AND  ANY  OTHER  MONEYS  CREDITED  OR TRANSFERRED THERETO FROM ANY OTHER
FUND, ACCOUNT OR SOURCE.
  (B) MONEYS IN THE AVIATION  PURPOSE  ACCOUNT  SHALL  BE  UTILIZED  FOR
AIRPORTS  AND  AVIATION  FACILITIES  AND EQUIPMENT AND RELATED PROJECTS,
INCLUDING BUT NOT  LIMITED  TO  THE  ACQUISITION  OF  REAL  OR  TANGIBLE
PERSONAL PROPERTY, CONSTRUCTION, RECONSTRUCTION, RECONDITIONING, PRESER-
VATION, MAINTENANCE OR IMPROVEMENT OF AIRPORT OR AVIATION CAPITAL FACIL-
ITIES AND NOISE MITIGATION PROJECTS, AND ANY OTHER PURPOSE NOT PROHIBIT-
ED BY FEDERAL LAW.
  S 3. Section 312 of the tax law, as amended by section 32 of part K of
chapter 61 of the laws of 2011, is amended to read as follows:
  S  312.  Deposit and disposition of revenue.-- (a) Except as otherwise
provided, of all taxes, interest and penalties collected or received  on
or  after  April  first,  two  thousand  one,  from the taxes imposed by
[sections] SECTION three hundred one-a [and three hundred one-e] of this
article, (i) initially eighty and three-tenths percent shall be deposit-
ed, as prescribed by subdivision (d) of section three hundred  one-j  of
this  article and (ii) nineteen and seven-tenths percent shall be depos-
ited in such mass transportation operating assistance fund to the credit
of the metropolitan mass transportation operating assistance account and
the public transportation systems operating assistance  account  thereof

S. 6409--A                         65                         A. 9009--A

in  the  manner  provided  by  subdivision eleven of section one hundred
eighty-two-a of this chapter. Provided, further that on  or  before  the
twenty-fifth  day of each month commencing with April, two thousand one,
the comptroller shall deduct the amount of six hundred twenty-five thou-
sand dollars prior to any deposit or disposition of the taxes, interest,
and  penalties collected or received pursuant to such [sections] SECTION
three hundred one-a [and three hundred one-e]  and  shall  deposit  such
amount  in  the  dedicated  fund accounts pursuant to subdivision (d) of
section three hundred one-j of this  article.  Provided,  further,  that
commencing  January  fifteenth,  nineteen  hundred ninety-one, and on or
before the tenth day of March and the fifteenth day of June and  Septem-
ber  of such year, the commissioner shall, based on information supplied
by taxpayers and other appropriate sources, estimate the amount  of  the
utility credit authorized by section three hundred one-d of this article
which has been accrued to reduce tax liability under section one hundred
eighty-six-a  of this chapter during the period covered by such estimate
and certify to the state comptroller such estimated  amount.  The  comp-
troller  shall  forthwith,  after receiving such certificate, deduct the
amount of such credit so certified by  the  commissioner  prior  to  any
deposit or disposition of the taxes, interest and penalties collected or
received  pursuant  to  such [sections] SECTION three hundred one-a [and
three hundred one-e] and shall pay such amount so certified and deducted
into the state treasury to the credit of the general fund. Also,  subse-
quently,  during  the fiscal year when the commissioner becomes aware of
changes or modifications  with  respect  to  actual  credit  usage,  the
commissioner  shall,  as  soon  as  practicable,  issue  a certification
setting forth the amount of any required adjustment  to  the  amount  of
actual  credit  usage  previously certified. After receiving the certif-
icate of the commissioner with respect to actual credit usage or modifi-
cation of the same, the comptroller shall forthwith adjust general  fund
receipts  and  the  revenues  to  be deposited or disposed of under this
article to reflect the difference so certified by the commissioner.  The
commissioner  shall  not be liable for any overestimate or underestimate
of the amount of the utility credit which has been accrued to reduce tax
liability under such section one hundred  eighty-six-a.  Nor  shall  the
commissioner  be  liable  for  any  inaccuracy  in  any certificate with
respect to the amount of such  credit  actually  used  or  any  required
adjustment  with  respect  to  actual credit usage, but the commissioner
shall as soon as practicable after discovery of  any  error  adjust  the
next certification under this section to reflect any such error.
  Prior  to making deposits as provided in this section, the comptroller
shall retain such amount as the commissioner may determine to be  neces-
sary, subject to the approval of the director of the budget, for reason-
able  costs  of the department in administering and collecting the taxes
deposited pursuant to this section and for  refunds  and  reimbursements
with  respect  to such taxes, out of which the comptroller shall pay any
refunds or reimbursements of such taxes  to  which  taxpayers  shall  be
entitled.
  (B)  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, ALL TAXES, INTEREST,
AND PENALTIES COLLECTED OR RECEIVED ON  OR  AFTER  DECEMBER  FIRST,  TWO
THOUSAND SEVENTEEN FROM THE TAXES IMPOSED BY SECTION THREE HUNDRED ONE-E
OF  THIS  ARTICLE  SHALL BE DEPOSITED IN THE AVIATION PURPOSE ACCOUNT OF
THE DEDICATED HIGHWAY AND  BRIDGE  TRUST  FUND  ESTABLISHED  BY  SECTION
EIGHTY-NINE-B OF THE STATE FINANCE LAW.

S. 6409--A                         66                         A. 9009--A

  S 4. Paragraph 1 of subdivision (a) of section 1102 of the tax law, as
amended  by  chapter  261  of  the  laws  of 1988, is amended to read as
follows:
  (1)  Every  distributor  of  motor  fuel shall pay, as a prepayment on
account of the taxes imposed by this article and pursuant to the author-
ity of article twenty-nine of this chapter, a  tax  on  each  gallon  of
motor fuel (i) which he imports or causes to be imported into this state
for  use,  distribution,  storage  or  sale  in  the  state or produces,
refines, manufactures or compounds in this state or (ii) if the tax  has
not  been imposed prior to its sale in this state, which he sells (which
acts shall in regard to motor fuel hereinafter in this article be encom-
passed by the phrase "imported,  manufactured  or  sold"),  except  when
imported,  manufactured  or  sold under circumstances which preclude the
collection of such tax by reason of the United States  constitution  and
of  the  laws  of  the  United  States  enacted pursuant thereto or when
imported or manufactured by an organization described in  paragraph  one
or  two  of  subdivision  (a)  of section eleven hundred sixteen of this
article or a hospital included in the organizations described  in  para-
graph  four  of  such  subdivision  for  its own use and consumption and
except kero-jet fuel  when  imported  by  an  airline  for  use  in  its
airplanes,  AND  EXCEPT  AVIATION  GASOLINE  SOLD  FOR USE IN COMMERCIAL
AIRCRAFT AND GENERAL AVIATION AIRCRAFT.
  S 5. Subparagraph (i) of paragraph 1 of  subdivision  (a)  of  section
1210  of the tax law, as amended by section 3 of part Z of chapter 59 of
the laws of 2015, is amended to read as follows:
  (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
authorized 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-
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 ALL
SALES  OF  FUEL SOLD FOR USE IN COMMERCIAL AIRCRAFT AND GENERAL AVIATION
AIRCRAFT; and, unless such city, county or school district elects other-
wise, shall omit the provision for credit or refund contained in  clause
six  of  subdivision  (a)  or  subdivision (d) of section eleven hundred
nineteen of this chapter.
  S 6. Subparagraphs (xii) and (xiii) of paragraph 4 of subdivision  (a)
of section 1210 of tax law, as amended by section 3 of part Z of chapter
59  of  the  laws  of  2015, are amended and a new subparagraph (xiv) is
added to read as follows:
  (xii) shall omit, unless such city elects otherwise, the exemption for
residential 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;  AND (XIV) SHALL EXCLUDE FROM THE OPERATION OF SUCH LOCAL TAXES
ALL SALES OF FUEL SOLD  FOR  USE  IN  COMMERCIAL  AIRCRAFT  AND  GENERAL
AVIATION  AIRCRAFT.  Any  reference in this chapter or in any local law,
ordinance or resolution enacted pursuant to the authority of this  arti-
cle to former subdivisions (n) or (p) of this section shall be deemed to

S. 6409--A                         67                         A. 9009--A

be a reference to clauses (xii) or (xiii) of this paragraph, respective-
ly,  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 7. Notwithstanding any law to the contrary, the comptroller is here-
by authorized and directed to transfer from the general fund for deposit
into the mass transportation  operating  assistance  fund,  pursuant  to
section 88-a of the state finance law and the dedicated mass transporta-
tion trust fund, pursuant to section 89-c of the state finance law, upon
request  of  the  director  of the budget, on or before March 31 of each
year, an amount equal to the amount of revenue received by  the  commis-
sioner  of taxation and finance during the state fiscal year from petro-
leum business taxes imposed pursuant to the authority of  section  301-e
of  the  tax  law  that would have otherwise been directed to such funds
pursuant to section 312 of the tax law as such section was in effect  on
the day before this act became a law.
  S  8.  Sections one, two and seven of this act shall take effect April
1, 2017; provided however that sections three, four,  five  and  six  of
this  act  shall take effect December 1, 2017; and provided further that
if section 19 of part W1 of chapter 109 of the laws of 2006  shall  have
not  expired  on or before such date then section four of this act shall
take effect on the same date and in the same manner as such  chapter  of
the laws of 2006 takes effect.

                                 PART AA

  Section  1.  Subdivision  2  of section 228 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 18 of the laws of 2008,
the opening paragraph as amended by chapter 236 of the laws of 2015,  is
amended to read as follows:
  2.  The  New  York  state  gaming  commission shall, as a condition of
racing, require any franchised corporation and every  other  corporation
subject  to  its  jurisdiction  to  withhold  one percent of all purses,
except that for the franchised corporation, starting on September first,
two thousand seven and continuing through August thirty-first, two thou-
sand sixteen, two percent of all purses shall be withheld, and,  in  the
case  of  the  franchised corporation, to pay such sum to the horsemen's
organization or  its  successor  that  was  first  entitled  to  receive
payments  pursuant  to  this  section  in  accordance  with rules of the
commission adopted effective November third,  nineteen  hundred  eighty-
three representing at least fifty-one percent of the owners and trainers
[utilizing]  USING the facilities of such franchised corporation, on the
condition that such horsemen's organization shall expend [as much as  is
necessary,  but  not  to  exceed]  one-half of one percent of such total
sum[,] TO CONDUCT EQUINE DRUG TESTING RESEARCH AND to acquire and  main-
tain  the  equipment required to [establish a program at a state college
within this state with an approved equine science program to]  test  for
the  presence of DRUGS, INCLUDING BUT NOT LIMITED TO steroids, in horses
AT A SUITABLE LABORATORY, AS THE GAMING COMMISSION MAY DETERMINE IN  ITS
DISCRETION, provided further that the qualified organization shall also,
in  an  amount  to  be  determined  by  its board of directors, annually
include in its expenditures for benevolence programs, funds  to  support
an  organization  providing services necessary to backstretch employees,
and, in the case of every other corporation, to pay such one percent sum
of purses to the horsemen's organization or its successor that was first

S. 6409--A                         68                         A. 9009--A

entitled to receive payments pursuant to this section in accordance with
rules of the commission adopted  effective  May  twenty-third,  nineteen
hundred eighty-six representing at least fifty-one percent of the owners
and trainers [utilizing] USING the facilities of such corporation.
  In  either  case,  any  other horsemen's organization may apply to the
[board] COMMISSION to be  approved  as  the  qualified  organization  to
receive  payment  of  the one percent of all purses by submitting to the
[board] COMMISSION proof of both,  that  (i)  it  represents  more  than
fifty-one  percent  of all the owners and trainers [utilizing] USING the
same facilities and (ii) the horsemen's organization previously approved
as qualified by the [board]  COMMISSION  does  not  represent  fifty-one
percent of all the owners and trainers [utilizing] USING the same facil-
ities.  If  the  [board]  COMMISSION is satisfied that the documentation
submitted with the application of any other horsemen's  organization  is
conclusive  with respect to items (i) and (ii) of this paragraph, it may
approve the applicant as the qualified recipient organization.
  In the best interests of racing, upon receipt of such an  application,
the  [board] COMMISSION may direct the payments to the previously quali-
fied horsemen's organization to continue uninterrupted, or it may direct
the payments to be withheld and placed in interest-bearing accounts  for
a  period  not  to  exceed  ninety  days,  during which time the [board]
COMMISSION shall review and approve or disapprove the application. Funds
held in such manner shall be paid to the organization  approved  by  the
[board] COMMISSION. In no event shall the [board] COMMISSION accept more
than  one such application in any calendar year from the same horsemen's
organization.
  The funds authorized to be paid by the [board] COMMISSION  are  to  be
used  exclusively  for  the benefit of those horsemen racing in New York
state through the administrative purposes of  such  qualified  organiza-
tion,  benevolent activities on behalf of backstretch employees, and for
the promotion of equine research.
  S 2. Section 902 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 60 of the laws of 1993, subdivision 1  as  amended
by chapter 15 of the laws of 2010, and subdivision 2 as amended by chap-
ter 18 of the laws of 2008, is amended to read as follows:
  S  902.  Equine  drug  testing and expenses. 1. In order to assure the
public's confidence and continue the high degree of integrity in  racing
at  the pari-mutuel betting tracks, equine drug testing at race meetings
shall be conducted by  a  [state  college  within  this  state  with  an
approved  equine  science  program]  SUITABLE  LABORATORY, AS THE GAMING
COMMISSION MAY DETERMINE IN ITS DISCRETION. The [state racing and wager-
ing board] GAMING COMMISSION shall promulgate any rules and  regulations
necessary  to implement the provisions of this section, including admin-
istrative penalties of loss of purse money, fines,  or  denial,  suspen-
sion[,] or revocation of a license for racing drugged horses.
  2.  Notwithstanding  any  inconsistent provision of law, all costs and
expenses of the [state racing and wagering board] GAMING COMMISSION  for
equine  drug  testing  and  research shall be paid from an appropriation
from the state treasury, on the certification of the [chairman] CHAIR of
the [state racing and wagering board] GAMING COMMISSION, upon the  audit
and  warrant  of the comptroller and pursuant to a plan developed by the
[state racing and wagering board] GAMING COMMISSION as approved  by  the
director of the budget.
  S  3.  This  act  shall  take  effect  immediately; provided, however,
section two of this act shall take effect upon expiration of an existing
contract with a New York state college within the state with an approved

S. 6409--A                         69                         A. 9009--A

equine science program, pursuant to section 902 of the racing,  pari-mu-
tuel  wagering  and  breeding  law;  provided that the gaming commission
shall notify the legislative bill drafting commission  upon  the  occur-
rence of the enactment of the legislation provided for in section two of
this act in order that the commission may maintain an accurate and time-
ly  effective data base of the official text of the laws of the state of
New York in furtherance of effectuating the provisions of section 44  of
the legislative law and section 70-b of the public officers law.

                                 PART BB

  Section  1.  Subdivision  1  of section 236 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:
  1. Every corporation authorized under this chapter to conduct pari-mu-
tuel  betting at a race meeting on races run thereat, except as provided
in section two hundred thirty-eight of this article with respect to  the
franchised corporation, shall distribute all sums deposited in any pari-
mutuel  pool  to  the holders of winning tickets therein, providing such
tickets be presented for payment before April first of the year  follow-
ing  the  year  of  their purchase, less an amount [which] THAT shall be
established and retained by such racing corporation of between  fourteen
to  twenty [per centum] PERCENT of the total deposits in pools resulting
from regular on-track bets and less sixteen to twenty-two  [per  centum]
PERCENT  of the total deposits in pools resulting from multiple on-track
bets and less twenty to thirty [per centum] PERCENT of the total  depos-
its  in  pools  resulting  from  exotic on-track bets and less twenty to
thirty-six [per centum] PERCENT of the total pools resulting from  super
exotic  on-track  bets, plus the breaks. The retention rate to be estab-
lished is subject to the prior approval  of  the  [racing  and  wagering
board]  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 "multiple bets" shall have the meanings set
forth in section five hundred nineteen of this chapter  and  breaks  are
hereby defined as [the odd cents over any multiple of ten, or for exotic
bets  over  any  multiple  of  fifty, or for super exotic bets, over any
multiple of one hundred, calculated on the basis of one  dollar,  other-
wise payable to a patron provided, however, that effective after October
fifteenth,  nineteen  hundred  ninety-four 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. "Super exotic bets"
shall have the meaning set forth in section three hundred  one  of  this
chapter.  Of  the  amount so retained there shall be paid by such corpo-
ration to the department 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 meeting held by such  corporation,  which  tax  is
hereby  levied, the following percentages of the total pool, plus fifty-
five [per centum] PERCENT of the breaks; the applicable rates for  regu-
lar  and  multiple  bets shall be one and one-half [per centum] PERCENT;
the applicable rates for exotic bets shall be six and three-quarter [per
centum] PERCENT and the applicable rate for super exotic bets  shall  be
seven  and  three-quarter  [per centum] PERCENT.  Effective on and after

S. 6409--A                         70                         A. 9009--A

September first, nineteen hundred ninety-four, the applicable  tax  rate
shall  be  one  [per  centum]  PERCENT  of all wagers, provided that, an
amount equal to one-half the difference between the  taxation  rate  for
on-track  regular, multiple and exotic bets as of December thirty-first,
nineteen hundred ninety-three and the rates on such on-track  wagers  as
herein provided shall be used exclusively for purses. Provided, however,
that  for  any  twelve-month period beginning on April first in nineteen
hundred ninety and any year thereafter, each of the applicable rates set
forth above shall be  increased  by  one-quarter  of  one  [per  centum]
PERCENT on all on-track bets of any such racing corporation that did not
expend  an amount equal to at least one-half of one [per centum] PERCENT
of its on-track bets during the immediately preceding calendar year  for
enhancements  consisting  of  capital improvements as defined by section
two hundred thirty-seven of this article, repairs to its physical plant,
structures, and equipment used in its racing or wagering  operations  as
certified  by the [state racing and wagering board] GAMING COMMISSION to
the commissioner of taxation and finance no later than eighty days after
the close of such calendar year, and five special events at  each  track
in each calendar year, not otherwise conducted in the ordinary course of
business,  the  purpose  of  which  shall  be  to encourage, attract and
promote track attendance and  encourage  new  and  continued  patronage,
which  events  shall  be  [approved  by  the  racing and wagering board]
SUBJECT TO THE PRIOR APPROVAL OF THE GAMING COMMISSION for  purposes  of
this  subdivision. In the determination of the amounts expended for such
enhancements, the [board] GAMING COMMISSION may consider the immediately
preceding [twelve month] TWELVE-MONTH calendar period or the average  of
the two immediately preceding [twelve month] TWELVE-MONTH calendar peri-
ods.  Provided  further,  however,  that of the portion of the increased
amounts retained by such corporation above  those  amounts  retained  in
nineteen  hundred  eighty-four,  an  amount  of  such  increase shall be
distributed to purses in the same proportion as commissions  and  purses
were distributed during nineteen hundred eighty-four as certified by the
[board]  GAMING  COMMISSION.  Such  corporation in the second zone shall
receive a credit against the daily tax imposed by this subdivision in an
amount equal to FOUR-TENTHS OF one [per centum] PERCENT of  total  daily
pools  resulting  from  the  simulcast  of  such  corporation's races to
licensed facilities operated by regional off-track betting  corporations
in  accordance with section one thousand eight of this chapter, provided
however, that sixty [per centum] PERCENT of the amount  of  such  credit
shall  be  used  exclusively  to  increase  purses  for  overnight races
conducted by such corporation; and, provided further, that in  no  event
shall  such  total  daily  credit exceed FOUR-TENTHS OF one [per centum]
PERCENT of the total daily pool of such corporation. [Provided, however,
that on and after September first,  nineteen  hundred  ninety-four  such
credit  shall be four-tenths percent of total daily pools resulting from
such simulcasting and that in no event shall  such  total  daily  credit
equal four-tenths percent of the total daily pool of such corporation.]
  Such corporation shall pay to the New York state thoroughbred breeding
and  development  fund one-half of one [per centum] PERCENT of the total
daily on-track pari-mutuel pools from regular, multiple and exotic bets,
and three [per centum] PERCENT of super  exotic  bets.  The  corporation
shall  receive  credit  as  a  reduction of the tax by the state for the
privilege of conducting pari-mutuel  betting  for  the  amounts,  except
amounts paid from super exotic betting pools, paid to the New York state
thoroughbred breeding and development fund after January first, nineteen
hundred seventy-eight.

S. 6409--A                         71                         A. 9009--A

  Such  corporation  shall distribute to purses an amount equal to fifty
[per centum] PERCENT of any compensation it receives  from  simulcasting
or  from  wagering conducted outside the United States. Such corporation
shall pay to the [racing and wagering  board]  GAMING  COMMISSION  as  a
regulatory   fee,   which  fee  is  hereby  levied,  [fifty  hundredths]
SIX-TENTHS of one [per centum] PERCENT of the total daily on-track pari-
mutuel pools of such corporation.
  S 2. Paragraph (d) of subdivision 1 of  section  238  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:
  (d) (I) The pari-mutuel tax rate authorized by paragraph (a)  of  this
subdivision shall be effective so long as a franchised corporation noti-
fies  the  [racing  and  wagering  board]  GAMING  COMMISSION  by August
fifteenth of each year that such pari-mutuel tax rate  is  effective  of
its  intent  to  conduct a race meeting at Aqueduct racetrack during the
months of December, January, February, March and April. For purposes  of
this  paragraph such race meeting shall consist of not less than ninety-
five days of racing.  Not later than May first of each  year  that  such
pari-mutuel  tax  rate  is  effective,  the  [racing and wagering board]
GAMING COMMISSION shall determine whether a  race  meeting  at  Aqueduct
racetrack consisted of the number of days as required by this paragraph.
In  determining  the  number  of  race  days, cancellation of a race day
because of an act of God[, which] THAT the [racing and  wagering  board]
GAMING  COMMISSION  approves  or  because of weather conditions that are
unsafe or hazardous which the [racing and wagering board] GAMING COMMIS-
SION approves shall not be construed as a failure to conduct a race day.
Additionally, cancellation of a race day because of circumstances beyond
the control of such franchised corporation for  which  the  [racing  and
wagering  board] GAMING COMMISSION gives approval shall not be construed
as a failure to conduct a race day. If the [racing and  wagering  board]
GAMING  COMMISSION  determines  that  the  number  of  days of racing as
required by this paragraph have not occurred then  the  pari-mutuel  tax
rate in paragraph (a) of this subdivision shall revert to the pari-mutu-
el  tax rates in effect prior to January first, nineteen hundred ninety-
five.
  (II) Such franchised corporation shall pay to the [racing and wagering
board] GAMING COMMISSION as  a  regulatory  fee,  which  fee  is  hereby
levied, [fifty hundredths] SIX-TENTHS of one [per centum] PERCENT of the
total daily on-track pari-mutuel pools of such franchised corporation.
  S  3. Paragraph d of subdivision 1 of section 318 of the racing, pari-
mutuel wagering and breeding law, as amended by section 3 of part  B  of
chapter 59 of the laws of 2005, is amended to read as follows:
  d.  Every  harness  racing association or corporation shall pay to the
[board] GAMING COMMISSION as a  regulatory  fee,  which  fee  is  hereby
levied,  [fifty hundredths] SIX-TENTHS of one percent of the total daily
on-track pari-mutuel pools of such association or corporation.
  S 4. The opening paragraph and the opening paragraph of subdivision  1
of section 527 of the racing, pari-mutuel wagering and breeding law, the
opening  paragraph  as amended by chapter 18 of the laws of 2008 and the
opening paragraph of subdivision 1 as amended by chapter 300 of the laws
of 2015, are amended to read as follows:
  Each regional corporation conducting off-track betting shall  distrib-
ute  all sums deposited in any pari-mutuel pool through such corporation
to the holders of winning tickets therein,  providing  such  tickets  be
presented  for  payment  prior  to April first of the year following the
year of their purchase, less an amount [which] THAT it shall  retain  at

S. 6409--A                         72                         A. 9009--A

the  same  rate established by the track accepting wagers from each such
regional corporation.
  The  disposition  of the retained commission from pools resulting from
regular, multiple or exotic bets, as the case may be, whether placed  on
races  run  within  a  region  or  outside a region, conducted by racing
corporations, harness racing associations or corporations, quarter horse
racing associations or corporations or races run outside the state shall
be governed by the tables in paragraphs a and b of this subdivision. The
rate denominated "state tax" shall represent the rate  of  a  reasonable
tax imposed upon the retained commission for the privilege of conducting
off-track  pari-mutuel  betting, which tax is hereby levied and shall be
payable in the manner set forth in this section. Each off-track  betting
corporation  shall pay to the [racing and wagering board] GAMING COMMIS-
SION as a regulatory fee, which fee is hereby levied, [fifty hundredths]
SIX-TENTHS of one percent of the total daily pools of such  corporation.
Each  corporation  shall  also  pay  twenty  [per centum] PERCENT of the
breaks derived from bets on harness races and fifty [per centum] PERCENT
of the breaks derived from bets on all other races  to  the  agriculture
and  New  York  State  horse  breeding  and  development fund and to the
thoroughbred breeding and development fund, the total of  such  payments
to  be apportioned fifty [per centum] PERCENT to each such fund. For the
purposes of this section, the New York city, Suffolk,  Nassau,  and  the
Catskill  regions  shall constitute a single region and any thoroughbred
track located within the Capital District region shall be deemed  to  be
within  such  single  region. A "regional meeting" shall refer to either
harness or thoroughbred meetings, or  both,  except  that  a  franchised
corporation  shall  not be a regional track for the purpose of receiving
distributions from bets on thoroughbred races conducted by  a  thorough-
bred  track in the Catskill region conducting a mixed meeting.  With the
exception of a harness racing association or corporation first  licensed
to  conduct pari-mutuel wagering at a track located in Tioga or Saratoga
county after January first, two thousand five, racing corporations first
licensed to conduct pari-mutuel racing  after  January  first,  nineteen
hundred  eighty-six or a harness racing association or corporation first
licensed to conduct pari-mutuel wagering at a track located  in  Genesee
County  after January first, two thousand five, and quarter horse tracks
shall not be "regional tracks"; if there is more than one harness  track
within  a region, such tracks shall evenly divide payments made pursuant
to the tables in paragraphs a and b of  this  subdivision  when  neither
track  is  running.  In  the event a track elects to reduce its retained
percentage from any or all of its pari-mutuel pools, the payments to the
track holding the race and the regional track required by  paragraphs  a
and  b  of  this  subdivision  shall  be  reduced  in proportion to such
reduction. Nothing in this section shall be construed to  authorize  the
conduct  of off-track betting contrary to the provisions of section five
hundred twenty-three of this article.
  S 5. Paragraph a of subdivision 1 of section 904 of the racing,  pari-
mutuel  wagering  and breeding law, as amended by chapter 18 of the laws
of 2008, are amended to read as follows:
  a. The applicable state tax provided for in  paragraphs  a  and  b  of
subdivision  one  of  section  five hundred twenty-seven of this chapter
shall be one-half [per centum] PERCENT for regular, multiple and  exotic
bets.  Any harness racing or association or corporation, or thoroughbred
racing corporation authorized pursuant to this section shall pay to  the
[racing and wagering board] GAMING COMMISSION as a regulatory fee, which

S. 6409--A                         73                         A. 9009--A

fee  is  hereby  levied, [fifty hundredths] SIX-TENTHS of one percent of
the total daily pari-mutuel pools.
  S 6. Paragraph g of subdivision 3 of section 1007 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:
  g. Any harness racing or association or corporation,  or  thoroughbred
racing  corporation authorized pursuant to this section shall pay to the
[racing and wagering board] GAMING COMMISSION as a regulatory fee, which
fee is hereby levied, [fifty hundredths] SIX-TENTHS of  one  percent  of
the total daily pari-mutuel pools.
  S 7. Paragraph b of subdivision 3 of section 1008 of the racing, pari-
mutuel  wagering  and breeding law, as amended by section 7 of part B of
chapter 59 of the laws of 2005, is amended to read as follows:
  b. Of the sums received by the sending track, fifty percent  shall  be
distributed  to  purses  in  addition  to moneys distributed pursuant to
section five hundred twenty-seven of this chapter. The off-track betting
corporation shall pay to the [racing and wagering board] GAMING  COMMIS-
SION as a regulatory fee, which fee is hereby levied, [fifty hundredths]
SIX-TENTHS of one percent of the total daily pools.
  S 8. Paragraph d of subdivision 4 of section 1009 of the racing, pari-
mutuel  wagering  and breeding law, as amended by section 8 of part B of
chapter 59 of the laws of 2005, is amended to read as follows:
  d. The operator shall pay to the [racing and  wagering  board]  GAMING
COMMISSION  as  a  regulatory  fee,  which  fee is hereby levied, [fifty
hundredths] SIX-TENTHS of one percent of the total daily pools.
  S 9. Subparagraph (iv) of paragraph i of subdivision 1 of section 1014
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:
  (iv) Any thoroughbred racing corporation or harness racing association
or  corporation  or off-track betting corporation authorized pursuant to
this section shall pay to the [racing and wagering board] GAMING COMMIS-
SION as a regulatory fee, which fee is hereby levied, [fifty hundredths]
SIX-TENTHS of one percent of all wagering pools.
  S 10. Paragraph e of subdivision 3 of  section  1015  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:
  e. Any thoroughbred racing corporation or harness  racing  association
or  corporation  or off-track betting corporation authorized pursuant to
this section shall pay to the [racing and wagering board] GAMING COMMIS-
SION as a regulatory fee, which fee is hereby levied, [fifty hundredths]
SIX-TENTHS of one percent of all wagering pools.
  S 11. Clause (B) of subparagraph 2 of paragraph b of subdivision 1  of
section  1016  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:
  (B)  Any  harness racing or association or corporation or thoroughbred
racing corporation authorized pursuant to this section shall pay to  the
[racing and wagering board] GAMING COMMISSION as a regulatory fee, which
fee  is  hereby  levied, [fifty hundredths] SIX-TENTHS of one percent of
the total daily pari-mutuel pools.
  S 12. Paragraph b of subdivision 2 of  section  1018  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:
  b. Any thoroughbred racing corporation or harness  racing  association
or corporation or off-track betting corporation shall pay to the [racing
and  wagering board] GAMING COMMISSION as a regulatory fee, which fee is

S. 6409--A                         74                         A. 9009--A

hereby levied, [fifty hundredths]  SIX-TENTHS  of  one  percent  of  all
wagering pools.
  S  13. Paragraph 2 of subdivision b of section 1612 of the tax law, as
amended by section 1 of part OO of chapter 59 of the laws  of  2014,  is
amended to read as follows:
  2. As consideration for the operation of a video lottery gaming facil-
ity,  the division, shall cause the investment in the racing industry of
a portion of the vendor fee received pursuant to paragraph one  of  this
subdivision  in  the  manner  set  forth in this subdivision.   With the
exception of Aqueduct racetrack or a facility in the county of Nassau or
Suffolk operated by a corporation established pursuant to  section  five
hundred  two  of the racing, pari-mutuel wagering and breeding law, each
such track shall dedicate a portion of its vendor fees, received  pursu-
ant  to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii)
of paragraph one of this subdivision, for the purpose of enhancing purs-
es at such track, in an amount equal to eight and three-quarters percent
of the total revenue wagered at the vendor track after [pay out]  PAYOUT
for  prizes.  One  AND SIX-TENTHS percent of the gross purse enhancement
amount, as required by this subdivision, shall be  paid  to  the  gaming
commission  to  be  used exclusively to promote and ensure equine health
and safety in New York. Any  portion  of  such  funding  to  the  gaming
commission  unused  during  a fiscal year shall be returned to the video
lottery gaming operators on a pro rata  basis  in  accordance  with  the
amounts  originally  contributed  by each operator and shall be used for
the purpose of enhancing purses at such track. One and one-half  percent
of  the  gross  purse  enhancement  amount  at  a thoroughbred track, as
required by this subdivision, shall be paid to  an  account  established
pursuant  to section two hundred twenty-one-a of the racing, pari-mutuel
wagering and breeding law to  be  used  exclusively  to  provide  health
insurance for jockeys. In addition, with the exception of Aqueduct race-
track  or  a  facility  in the county of Nassau or Suffolk operated by a
corporation established pursuant to section  five  hundred  two  of  the
racing,  pari-mutuel  wagering  and  breeding  law,  one and one-quarter
percent of total revenue wagered at the vendor  track  after  [pay  out]
PAYOUT  for prizes, received pursuant to clause (A), (B), (C), (D), (E),
(F), or (G) of subparagraph (ii) of paragraph one of  this  subdivision,
shall  be distributed to the appropriate breeding fund for the manner of
racing conducted by such track.
  Provided, further, that nothing in this paragraph shall  prevent  each
track  from  entering  into an agreement, not to exceed five years, with
the organization authorized to represent its  horsemen  to  increase  or
decrease  the portion of its vendor fee dedicated to enhancing purses at
such track during the years of participation by such track, or  to  race
fewer dates than required herein.
  S  14. Paragraph 1 of subdivision f of section 1612 of the tax law, as
amended by section 2 of part OO of chapter 59 of the laws  of  2014,  is
amended to read as follows:
  1.  [Six] SEVEN and one-half percent of the total wagered after payout
of prizes for the [first year of] operation of video lottery  gaming  at
Aqueduct  racetrack, [seven percent of the total wagered after payout of
prizes for the second year of operation, and seven and one-half  percent
of the total wagered after payout of prizes for the third year of opera-
tion  and  thereafter,]  for the purpose of enhancing purses at Aqueduct
racetrack, Belmont Park racetrack and Saratoga race  course.    One  AND
SIX-TENTHS percent of the gross purse enhancement amount, as required by
this  subdivision,  shall  be  paid  to the gaming commission to be used

S. 6409--A                         75                         A. 9009--A

exclusively to promote and ensure equine health and safety in New  York.
Any  portion  of  such  funding to the gaming commission unused during a
fiscal year shall be returned on a pro rata basis in accordance with the
amounts  originally  contributed  and  shall  be used for the purpose of
enhancing purses at such tracks. One and one-half percent of  the  gross
purse enhancement amount, as required by this subdivision, shall be paid
to  an  account established pursuant to section two hundred twenty-one-a
of the racing, pari-mutuel wagering and breeding law to be  used  exclu-
sively to provide health insurance for jockeys.
  S 15. This act shall take effect immediately.

                                 PART CC

  Section  1. Section 308 of the racing, pari-mutuel wagering and breed-
ing law, as amended by section 1 of part Y of chapter 58 of the laws  of
2012, is amended to read as follows:
  S  308.  Officials  at  harness horse race meetings. 1. At all harness
race meetings licensed by the [state racing and wagering  board]  GAMING
COMMISSION  in  accordance  with  the provisions of sections two hundred
twenty-two through seven hundred five of this chapter  qualified  judges
and  starters  shall  be  designated  by  the [state racing and wagering
board] GAMING COMMISSION. Such officials shall  enforce  the  rules  and
regulations  of  the [state racing and wagering board] GAMING COMMISSION
and shall render regular written reports of the activities  and  conduct
of  such  race  meetings to the [state racing and wagering board] GAMING
COMMISSION.
  2. The licensed racing corporations shall reimburse the [state  racing
and  wagering  board]  GAMING  COMMISSION  for  the per diem cost to the
[board] COMMISSION to employ one associate  judge  and  the  starter  to
serve at harness race meetings. The [board] COMMISSION shall notify EACH
such  licensed racing [corporations] CORPORATION of the per diem cost of
the associate judge and the starter [prior  to  the  beginning]  AT  THE
TRACK  OF  SUCH LICENSED RACING CORPORATION WITHIN SIXTY DAYS OF THE END
of each month. Payment of the reimbursement  required  by  this  section
shall  be made to the [board] COMMISSION by each entity required to make
such payments [on the last business day of  each  month]  WITHIN  THIRTY
DAYS  OF  SUCH  NOTIFICATION  BY  THE COMMISSION and shall cover all the
costs incurred during that month. A penalty of five percent  of  payment
due,  and  interest at the rate of one percent per month calculated from
such [last day of each month] DATE THAT PAYMENT IS DUE to  the  date  of
the  payment  of the per diem cost shall be payable in case any per diem
cost imposed by this subdivision is  not  paid  when  due.  The  [board]
COMMISSION  shall  promulgate rules and regulations to ensure the proper
reimbursement of such costs.
  3. The  [board]  COMMISSION  shall  pay  into  the  racing  regulation
account,  as  defined in section ninety-nine-i of the state finance law,
under the joint custody of the comptroller and the  [board]  COMMISSION,
the  total  amount  of  the  reimbursements  collected  pursuant to this
section. With the  approval  of  the  director  of  the  budget,  monies
[utilized]  USED  to pay the costs and expenses of the operations of the
[board] COMMISSION shall be paid out of such account on  the  audit  and
warrant  of  the  comptroller on vouchers, certified and approved by the
director of the division of the budget or his  or  her  duly  designated
official.
  4. Any associate judge and starter whose per diem costs are reimbursed
by  a  licensed  racing corporation shall remain employees of the [state

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racing and wagering board] GAMING COMMISSION and shall  retain  all  the
rights  and  privileges  of  their  current civil service jurisdictional
classification and status and collective bargaining unit representation.
  S 2. This act shall take effect immediately.

                                 PART DD

  Section  1.  Subparagraph  (ii)  of  paragraph  1  of subdivision b of
section 1612 of the tax law is amended by adding a new clause  (G-2)  to
read as follows:
  (G-2)  NOTWITHSTANDING  ANY  PROVISION  TO THE CONTRARY, WHEN A VENDOR
TRACK IS LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE TWO AS DEFINED BY
SECTION THIRTEEN HUNDRED TEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
BREEDING  LAW  AND  IS  LOCATED WITHIN ONTARIO COUNTY, SUCH VENDOR TRACK
SHALL RECEIVE AN ADDITIONAL COMMISSION AT A RATE EQUAL TO THE PERCENTAGE
OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES  PURSUANT
TO  THIS CHAPTER, WHICH PERCENTAGE SHALL BE ONE HUNDRED, LESS THE SUM OF
THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK  RETAINED  BY
THE  COMMISSION FOR OPERATION, ADMINISTRATION, AND PROCUREMENT PURPOSES;
AND THE VENDOR'S FEE, MARKETING ALLOWANCE AND CAPITAL AWARD PAID TO  THE
VENDOR  TRACK  PURSUANT TO THIS CHAPTER; AND THE EFFECTIVE TAX RATE PAID
ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN  SENECA  OR
WAYNE  COUNTIES  PURSUANT  TO  SECTION THIRTEEN HUNDRED FIFTY-ONE OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, PROVIDED,  HOWEVER,  SUCH
ADDITIONAL  COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR
TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN SENECA  OR
WAYNE  COUNTIES IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIF-
ICATE ISSUED PURSUANT TO SECTION  THIRTEEN  HUNDRED  THIRTY-ONE  OF  THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. THE ADDITIONAL COMMISSION
SET  FORTH IN THIS CLAUSE SHALL BE PAID TO THE VENDOR TRACK WITHIN SIXTY
DAYS AFTER THE CONCLUSION OF THE STATE FISCAL YEAR BASED ON  THE  CALCU-
LATED PERCENTAGE DURING THE PREVIOUS FISCAL YEAR.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after January 1, 2014.

                                 PART EE

  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
WW of chapter 59 of the laws of 2015, 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 [eight] NINE 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, 2016.

                                 PART FF

  Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  1

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of  part  NN  of  chapter  59 of the laws of 2015, 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
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 [sixteen] SEVENTEEN; 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 [sixteen] SEVENTEEN; and (iv) no in-home simul-
casting in the thoroughbred special betting district shall occur without
the approval of the regional thoroughbred track.

S. 6409--A                         78                         A. 9009--A

  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 NN of chapter 59 of the laws of 2015, 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 [sixteen] SEVENTEEN, 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 NN of chapter 59 of the laws of 2015,  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 conducting a race meet-
ing  in  Saratoga  county  at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [sixteen] SEVENTEEN 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  [sixteen]  SEVENTEEN.    On any day on which a franchised
corporation 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 NN of  chapter  59  of
the laws of 2015, 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 [sixteen] SEVENTEEN.  This section shall  super-
sede 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  NN  of  chapter  59 of the laws of 2015, 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 [sixteen] SEVENTEEN.   Every off-track betting
corporation branch office and every simulcasting  facility  licensed  in

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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 NN of chapter
59 of the laws of 2015, 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  [fifteen]  SIXTEEN,  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
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 NN of chapter 59 of the
laws of 2015, 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,  [2016]  2017;  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  NN of chapter 59 of the laws of 2015, 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, [2016] 2017; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and  fifty-

S. 6409--A                         80                         A. 9009--A

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
NN of chapter 59 of the laws of 2015, 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
"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 [sixteen] SEVENTEEN, 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
corporation  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 thir-

S. 6409--A                         81                         A. 9009--A

ty-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
[sixteen]  SEVENTEEN,  such  payment  shall  be  seven-tenths of one per
centum of such pools.
  S 10. This act shall take effect immediately.

                                 PART GG

  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
MM of chapter 59 of the laws of 2015, 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
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 [sixteen] SEVENTEEN.  Any amount  attributable
to  a  capital  expenditure  approved prior to April first, two thousand
[sixteen]SEVENTEEN and completed before April first, two thousand [eigh-
teen] NINETEEN; or approved prior to April first, two thousand  [twenty]
TWENTY-ONE  and  completed before April first, two thousand [twenty-two]
TWENTY-THREE for a vendor track located west  of  State  Route  14  from
Sodus  Point to the Pennsylvania border within New York, shall be eligi-
ble 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 [sixteen] SEVENTEEN and  completed  prior  to  April
first, two thousand [eighteen] NINETEEN, exceed the vendor track's cumu-
lative capital award during the five year period ending April first, two
thousand  [sixteen]  SEVENTEEN, the vendor shall continue to receive the
capital award after April first, two thousand [sixteen] SEVENTEEN  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-

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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 [sixteen]  SEVENTEEN  shall
be deposited into the state lottery fund for education aid; and
  S 2. This act shall take effect immediately.

                                 PART HH

  Section  1.  Paragraph  b  of  subdivision 3 of section 97-nnnn of the
state finance law, as added by chapter 174  of  the  laws  of  2013,  is
amended to read as follows:
  b.  ten  percent  of  the  moneys  in  such fund, AS ATTRIBUTABLE TO A
SPECIFIC LICENSED GAMING FACILITY, shall be appropriated or  transferred
from the commercial gaming revenue fund equally between the host munici-
pality and host county OF SUCH FACILITY.
  S  2.  Clause (G) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as added by chapter 174 of the  laws  of
2013, is amended to read as follows:
  (G) Notwithstanding any provision to the contrary, when a vendor track
is  located  within regions one, two, or five of development zone two as
defined by section thirteen  hundred  ten  of  the  racing,  pari-mutuel
wagering and breeding law, such vendor track shall receive an additional
commission  at  a rate equal to the percentage of revenue wagered at the
vendor track after payout for prizes pursuant  to  this  chapter,  WHICH
PERCENTAGE  SHALL  BE  ONE  HUNDRED,  less  [ten percent] THE SUM OF THE
PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK retained  by  the
commission  for operation, administration, and procurement purposes; and
[payment of] the vendor's fee, marketing allowance[,] and capital  award
paid TO THE VENDOR TRACK pursuant to this chapter; and the effective tax
rate  paid  on all gross gaming revenue paid by a gaming facility within
the same region pursuant to section thirteen hundred  fifty-one  of  the
racing,  pari-mutuel  wagering and breeding law, PROVIDED, HOWEVER, SUCH
ADDITIONAL COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE  VENDOR
TRACK  AFTER  PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN THE SAME
REGION IS OPEN AND OPERATIONAL  PURSUANT  TO  AN  OPERATION  CERTIFICATE
ISSUED  PURSUANT  TO  SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING,
PARI-MUTUEL WAGERING AND BREEDING LAW.  The  additional  commission  SET
FORTH IN THIS CLAUSE shall be paid to the vendor track within sixty days
after  the  conclusion  of the state fiscal year based on the calculated
percentage during the previous fiscal year.
  S 3. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after January 1, 2014.

                                 PART II

  Section  1.   Subdivision 1 of section 491 of the tax law, as added by
chapter 90 of the laws of 2014, is amended to read as follows:
  1. Except in accordance with proper  judicial  order  or  as  in  this
section  or  otherwise  provided  by  law,  it shall be unlawful for the
commissioner, any officer or employee of the department, or any  officer
or  person  who,  pursuant  to this section, is permitted to inspect any
return or report or to whom a copy, an abstract  or  a  portion  of  any

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return  or  report is furnished, or to whom any information contained in
any return or report is furnished, or any person engaged or retained  by
such  department  on  an independent contract basis or any person who in
any  manner  may acquire knowledge of the contents of a return or report
filed pursuant to this article to divulge or make known  in  any  manner
the  contents  or  any  other  information relating to the business of a
distributor, owner or other person contained in  any  return  or  report
required  under  this  article. The officers charged with the custody of
such returns or reports shall not be required to produce any of them  or
evidence  of  anything  contained in them in any action or proceeding in
any court, except on behalf  of  the  state,  the  state  department  of
health,  or  the  commissioner  in  an  action  or  proceeding under the
provisions of this chapter or on behalf of the state or the commissioner
in any other action or proceeding involving the collection of a tax  due
under  this chapter to which the state or the commissioner is a party or
a claimant or on behalf of any party to any action or  proceeding  under
the  provisions  of this article, when the returns or the reports or the
facts shown thereby are directly involved in such action or  proceeding,
or  in an action or proceeding relating to the regulation or taxation of
medical marihuana on behalf of officers to whom information  shall  have
been  supplied as provided in subdivision two of this section, in any of
which events the court may require the production of, and may  admit  in
evidence so much of said returns or reports or of the facts shown there-
by  as  are  pertinent  to the action or proceeding and no more. Nothing
herein shall be construed to prohibit the commissioner, in  his  or  her
discretion, from allowing the inspection or delivery of a certified copy
of  any  return or report filed under this article or of any information
contained in any such return or report by or to a duly authorized  offi-
cer  or  employee  of  the  state  department of health; or by or to the
attorney general or other legal representatives of  the  state  when  an
action shall have been recommended or commenced pursuant to this chapter
in which such returns or reports or the facts shown thereby are directly
involved;  or  the  inspection  of the returns or reports required under
this article by the comptroller or duly designated officer  or  employee
of  the state department of audit and control, for purposes of the audit
of a refund of any tax paid by a registered organization or other person
under this article; nor to prohibit the delivery to a registered  organ-
ization,  or  a duly authorized representative of such registered organ-
ization, a certified copy of any return or report filed by  such  regis-
tered  organization  pursuant  to  this  article,  nor  to  prohibit the
publication of statistics so classified as to prevent the identification
of particular returns or reports and the  items  thereof.  THIS  SECTION
SHALL ALSO NOT BE CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX ADMINIS-
TRATION  PURPOSES,  TO  THE DIVISION OF THE BUDGET AND THE OFFICE OF THE
STATE COMPTROLLER, OF INFORMATION AGGREGATED FROM THE RETURNS  FILED  BY
ALL  THE  REGISTERED  ORGANIZATIONS  MAKING  SALES OF, OR MANUFACTURING,
MEDICAL MARIHUANA IN A SPECIFIED COUNTY,  WHETHER  THE  NUMBER  OF  SUCH
REGISTERED ORGANIZATIONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITH-
STANDING  THE  PROVISIONS  OF THIS SUBDIVISION, THE COMMISSIONER MAY, IN
HIS OR HER DISCRETION, PERMIT THE PROPER OFFICER OF ANY COUNTY  ENTITLED
TO  RECEIVE  AN  ALLOCATION, FOLLOWING APPROPRIATION BY THE LEGISLATURE,
PURSUANT TO THIS ARTICLE AND SECTION EIGHTY-NINE-H OF THE STATE  FINANCE
LAW,  OR  THE  AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY
RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER  OR  THE
OFFICER'S  AUTHORIZED  REPRESENTATIVE  AN ABSTRACT OF ANY SUCH RETURN OR
SUPPLY SUCH OFFICER OR SUCH REPRESENTATIVE WITH  INFORMATION  CONCERNING

S. 6409--A                         84                         A. 9009--A

AN  ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION
OF TAX LIABILITY UNDER THIS ARTICLE.
  S  2.  This act shall take effect immediately; provided, however, that
the amendments to subdivision 1 of section 491 of the tax  law  made  by
section  one  of this act shall be deemed to have been in full force and
effect on and after January 1, 2016, and shall not affect the repeal  of
such section and shall be deemed to be repealed therewith.

                                 PART JJ

  Section 1. Subdivision 15 of section 425 of the real property tax law,
as  added  by  section 1 of part E of chapter 59 of the laws of 2015, is
amended 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]  IN  THE CURRENT SCHOOL YEAR OR one or more of the three
preceding [assessment rolls] SCHOOL YEARS, the commissioner shall  treat
the  exemption  as  an  improperly  granted 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, together 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  proce-
dures  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) IN ORDER FOR THE RECOUPMENT PROCEDURE TO BE CONSIDERED TIMELY, THE
NOTICE REQUIRED BY SUBPARAGRAPH (II) OF THIS PARAGRAPH MUST BE MAILED NO
LATER THAN THREE YEARS AFTER THE CONCLUSION OF THE SCHOOL YEAR FOR WHICH
THE  EXEMPTION  IN  QUESTION WAS GRANTED, OR IN THE CASE OF AN EXEMPTION
THAT WAS GRANTED FOR THE  TWO  THOUSAND  TWELVE--TWO  THOUSAND  THIRTEEN
SCHOOL YEAR, NO LATER THAN SEPTEMBER THIRTIETH, TWO THOUSAND SIXTEEN;
  (II)  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)] (III) notwithstanding the provisions of paragraph (b) of subdi-
vision six of this section, neither an assessor nor a board  of  assess-
ment 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-

S. 6409--A                         85                         A. 9009--A

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
[chapter] ARTICLE has occurred, the provisions of this subdivision shall
not be applicable to the exemptions so revoked or voluntarily renounced.
  S 2. This act shall take effect immediately.

                                 PART KK

  Section 1. Paragraphs a and b of subdivision 1 of section 502  of  the
tax  law, paragraph a as amended by section 1 of part E of chapter 60 of
the laws of 2007, and paragraph b as amended by section 1 of part T-1 of
chapter 57 of the laws of 2009, are amended to read as follows:
  a. Each carrier shall apply to the commissioner for a  certificate  of
registration  for each motor vehicle operated or to be operated by [him]
SUCH CARRIER on the public highways in this state.  Application shall be
made upon a form prescribed by such commissioner and shall set forth the
gross and unloaded weight of each motor vehicle, license plate  informa-
tion  for  each  motor vehicle and such other information as the commis-
sioner may require. Such weights shall be subject to audit and  approval
by  the  commissioner. [The application shall be accompanied by a fee of
fifteen dollars for each motor vehicle listed in the  application.]  The
commissioner  shall  issue  [without  further  charge]  a certificate of
registration for each motor vehicle or  a  consolidated  certificate  of
registration  for  all  or  any portion of such vehicles of such carrier
which shall contain such information and be in such form as the  commis-
sioner  shall  prescribe.  In  the  case  of  the  loss,  mutilation  or
destruction of a certificate of  registration,  the  commissioner  shall
issue  a  duplicate thereof [upon payment of a fee of two dollars].  Any
such certificate of registration shall not be  transferable,  except  as
hereinafter  provided,  and  shall  be valid until revoked, suspended or
surrendered. Such certificate of registration shall be maintained in the
carrier's regular place of business. In the event of an increase in  the
gross  or  unloaded weight of any motor vehicle subject to this article,
application for a corrected certificate of registration  shall  be  made
upon  a  form prescribed by such commissioner setting forth the previous
gross or unloaded weight, the new gross  or  unloaded  weight  and  such
other  information  as  the  commissioner may require. In the event of a
decrease in the gross or unloaded weight of any motor vehicle subject to
this article, application may be made for  a  corrected  certificate  of
registration  in a similar manner, provided that any such application on
the basis of a decrease in the gross or unloaded  weight  of  any  motor

S. 6409--A                         86                         A. 9009--A

vehicle  may be made only during the month of January. In the event of a
decrease in the gross or unloaded weight of any motor vehicle subject to
this article, an application to cancel a certificate of registration  on
the  basis  of such decrease may be made during any month. The corrected
gross or unloaded weight shall be subject to audit and approval  by  the
commissioner.  In the event of a change to the license plate information
of any motor vehicle subject to  this  article,  an  application  for  a
corrected  certificate  of  registration  shall  be  made  upon  a  form
prescribed by the commissioner setting forth the previous license  plate
information,  the  new license plate information and such other informa-
tion as the commissioner may require. Upon surrendering the  certificate
of  registration  previously  issued,  the  commissioner shall[, without
further charge,] issue a corrected certificate of registration.
  b. Every automotive fuel carrier shall apply to the commissioner for a
special certificate of registration, in  place  of  the  certificate  of
registration  described  in  paragraph  a  of this subdivision, for each
motor vehicle operated or to be operated by [him] SUCH  CARRIER  on  the
public  highways  in  this state to transport automotive fuel. Provided,
however, a special certificate of registration  shall  not  be  required
under this paragraph for a tractor or other self-propelled device which,
except  with  respect to the fuel in the ordinary fuel tank intended for
its propulsion, transports automotive fuel solely by means of a trailer,
dolly or other device drawn by  such  tractor  or  other  self-propelled
device  if  a  certificate  of registration prescribed by paragraph a of
this subdivision has been issued for the self-propelled device. Applica-
tion shall be made upon an application form prescribed  by  the  commis-
sioner.    [The  application  shall  be  accompanied by a fee of fifteen
dollars for each trailer, semi-trailer, dolly or other device listed  in
the  application.] The commissioner shall issue [without further charge]
such special certificate of registration for each motor  vehicle  listed
in the application or a consolidated certificate of registration for all
or  any  portion of such vehicles of such carrier. All of the provisions
of this article with respect to certificates of  registration  shall  be
applicable to the special certificates of registration issued to automo-
tive  fuel carriers under this paragraph as if those provisions had been
set forth in full in  this  paragraph  and  expressly  referred  to  the
special  certificates  of registration required by this paragraph except
to the extent that any such provision  is  either  inconsistent  with  a
provision  of  this  paragraph  or  not  relevant to the certificates of
registration required by this paragraph. Any certificate of registration
shall not be transferable, and shall be valid until  revoked,  suspended
or  surrendered. Such special certificate of registration shall be main-
tained in the carrier's regular place of business. Nothing contained  in
this  paragraph  shall in any way exempt an automotive fuel carrier from
payment of the taxes imposed pursuant to this article.
  S 2. Paragraphs a and b of subdivision 6 of section  502  of  the  tax
law,  as  added  by  section  1 of part K-1 of chapter 57 of the laws of
2009, are amended to read as follows:
  a. The commissioner may require the use of decals as evidence  that  a
carrier  has  a valid certificate of registration for each motor vehicle
operated or to be operated on the  public  highways  of  this  state  as
required  by  paragraph  a  of  subdivision  one of this section. If the
commissioner requires the use of decals, the  commissioner  shall  issue
for  each motor vehicle with a valid certificate of registration a decal
that shall be of a size and design and containing  such  information  as
the  commissioner  prescribes. [The fee for any decal issued pursuant to

S. 6409--A                         87                         A. 9009--A

this paragraph is four dollars.] In the case of the loss, mutilation, or
destruction of a decal, the commissioner shall issue a  new  decal  upon
proof  of  the  facts  [and payment of four dollars]. The decal shall be
firmly  and conspicuously affixed upon the motor vehicle for which it is
issued as closely as practical to the registration or license plates and
at all times be visible and legible. No decal is transferable.  A  decal
shall  be  valid  until  it expires or is revoked, suspended, or surren-
dered.
  b. The commissioner may require the use of special decals as  evidence
that  an  automotive  fuel  carrier  has  a valid special certificate of
registration for each motor vehicle operated or to be  operated  on  the
public  highways  of this state to transport automotive fuel as required
by paragraph b of subdivision one of this section. If  the  commissioner
requires  the  use  of  special decals, the commissioner shall issue for
each motor vehicle with a valid special certificate  of  registration  a
special  decal  that  shall  be  distinctively colored and of a size and
design and containing such information as the  commissioner  prescribes.
[The fee for any special decal issued pursuant to this paragraph is four
dollars.]  In  the  case  of  the  loss, mutilation, or destruction of a
special decal, the commissioner shall issue a  new  special  decal  upon
proof  of  the  facts  [and  payment of four dollars]. The special decal
shall be firmly and conspicuously affixed upon  the  motor  vehicle  for
which  it  is issued pursuant to the rules and regulations prescribed by
the commissioner to enable the easy  identification  of  the  automotive
fuel  carrier  certificate  of  registration  number and at all times be
visible and legible. No special decal is transferable and shall be valid
until it expires or is revoked, suspended, or surrendered.
  S 3. The tax law is amended by adding a new section 502-a to  read  as
follows:
  S  502-A.  CERTIFICATE OF REGISTRATION AND DECAL FEES. THE APPLICATION
FOR A CERTIFICATE OF REGISTRATION AND DECAL DESCRIBED IN PARAGRAPH A  OF
SUBDIVISION  ONE  AND  PARAGRAPH  A  OF  SUBDIVISION SIX OF SECTION FIVE
HUNDRED TWO OF THIS ARTICLE, OR A SPECIAL  CERTIFICATE  OF  REGISTRATION
AND  SPECIAL  DECAL  AS  DESCRIBED IN PARAGRAPH B OF SUBDIVISION ONE AND
PARAGRAPH B OF SUBDIVISION SIX OF SUCH SECTION, SHALL BE ACCOMPANIED  BY
A  FEE  OF ONE DOLLAR AND FIFTY CENTS.  IN THE CASE OF THE LOSS, MUTILA-
TION OR DESTRUCTION OF ANY SUCH DOCUMENTS, THE COMMISSIONER SHALL  ISSUE
A  DUPLICATE  SET  THEREOF UPON PAYMENT OF A FEE OF ONE DOLLAR AND FIFTY
CENTS. PROVIDED, HOWEVER, THERE SHALL BE NO ADDITIONAL  CHARGE  FOR  THE
ISSUANCE  OF  A  CORRECTED CERTIFICATE OF REGISTRATION PURSUANT TO PARA-
GRAPH A OF SUBDIVISION ONE OF SECTION FIVE HUNDRED TWO OF THIS ARTICLE.
  S 4. Subdivision 8 of section  509  of  the  tax  law,  as  separately
amended by section 3 of part K-1 and section 2 of part T-1 of chapter 57
of the laws of 2009, is amended to read as follows:
  8. To issue replacement certificates of registration or decals at such
times  as  the  commissioner may deem necessary for the proper and effi-
cient enforcement of the provisions of this article, but not more  often
than  once every year and to require the surrender of the then outstand-
ing certificates of registration and decals. All of  the  provisions  of
this  article  with  respect  to certificates of registration and decals
shall be applicable to  replacement  certificates  of  registration  and
decals  issued  hereunder,  except  that  the replacement certificate of
registration or decal shall be issued upon payment of a fee of  [fifteen
dollars]  ONE  DOLLAR AND FIFTY CENTS for each motor vehicle and for any
trailer, semi-trailer, dolly or other device drawn thereby for  which  a

S. 6409--A                         88                         A. 9009--A

certificate of registration or decal is required to be issued under this
article;
  S  5.  Section 515 of the tax law, as added by chapter 329 of the laws
of 1991, is amended to read as follows:
  S 515. Disposition of revenues. All  taxes,  interest,  penalties  and
fees  collected  or received pursuant to this article shall be deposited
daily in one account with such  responsible  banks,  banking  houses  or
trust  companies  as  may  be  designated by the comptroller, and to the
credit of the comptroller on account of the dedicated highway and bridge
trust fund established pursuant to section eighty-nine-b  of  the  state
finance  law.  Such an account may be established in one or more of such
depositories and such deposits shall be kept separate and apart from all
other moneys in the possession of the comptroller. The comptroller shall
require adequate security from all such depositories.
  Of the revenues so deposited, the  comptroller  shall  retain  in  his
hands such amount as the commissioner of taxation and finance may deter-
mine  to  be  necessary  for  refunds  or  reimbursements  of  the taxes
collected or received pursuant to this article to which taxpayers  shall
be  entitled  under  the provisions of this article, out of which amount
the comptroller shall pay any refunds or  reimbursements  of  the  taxes
collected  or received pursuant to this article to which taxpayers shall
be entitled under such provisions.  The comptroller, after reserving the
amount to pay such refunds or reimbursements, shall, on  or  before  the
last  day  of  each  month,  pay the balance of the revenue so deposited
during such month into the  dedicated  highway  and  bridge  trust  fund
established pursuant to section eighty-nine-b of the state finance law.
  NOTWITHSTANDING  THE  FOREGOING  OR ANY OTHER LAW TO THE CONTRARY, THE
COMPTROLLER SHALL DEPOSIT ALL MONIES COLLECTED ON ACCOUNT OF THE  REGIS-
TRATION FEES IMPOSED PURSUANT TO SECTION FIVE HUNDRED TWO-A AND SUBDIVI-
SION EIGHT OF SECTION FIVE HUNDRED NINE OF THIS ARTICLE INTO THE HIGHWAY
USE   TAX   ADMINISTRATION   ACCOUNT  ESTABLISHED  PURSUANT  TO  SECTION
NINETY-NINE-Y OF THE STATE FINANCE LAW. THE  MONIES  DEPOSITED  IN  SUCH
ACCOUNT  SHALL BE AVAILABLE TO THE COMMISSIONER FOR THE COSTS OF ISSUING
THE CERTIFICATES OF REGISTRATION AND HIGHWAY USE TAX DECALS REQUIRED  BY
THIS  ARTICLE AND FOR ANY OTHER COSTS OF ADMINISTERING THE PROVISIONS OF
SECTIONS FIVE HUNDRED TWO, FIVE HUNDRED TWO-A AND FIVE HUNDRED  NINE  OF
THIS  ARTICLE.  ANY MONEYS NOT USED IN A GIVEN YEAR SHALL BE RETURNED TO
SUCH ACCOUNT AND BE ADDED TO THE TOTAL FUNDS AVAILABLE FOR  DISBURSEMENT
IN THE SUCCEEDING YEAR.
  S  6. The state finance law is amended by adding a new section 99-y to
read as follows:
  S 99-Y. HIGHWAY USE TAX ADMINISTRATION ACCOUNT.   1. THERE  IS  HEREBY
ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
COMMISSIONER OF THE DEPARTMENT OF TAXATION AND FINANCE A SPECIAL ACCOUNT
TO BE KNOWN AS THE "HIGHWAY USE TAX ADMINISTRATION ACCOUNT".
  2. THE HIGHWAY USE TAX ADMINISTRATION ACCOUNT  SHALL  CONSIST  OF  ALL
MONIES  COLLECTED  FROM  THE HIGHWAY USE TAX REGISTRATION AND DECAL FEES
COLLECTED PURSUANT TO SECTIONS FIVE HUNDRED TWO-A AND FIVE HUNDRED  NINE
OF THE TAX LAW, AND ANY OTHER MONIES DEPOSITED INTO THE ACCOUNT PURSUANT
TO LAW.
  3.  MONIES OF THE ACCOUNT, FOLLOWING APPROPRIATION BY THE LEGISLATURE,
SHALL BE USED FOR THE COSTS OF THE COMMISSIONER OF TAXATION AND  FINANCE
IN  ADMINISTERING SECTIONS FIVE HUNDRED TWO, FIVE HUNDRED TWO-A AND FIVE
HUNDRED NINE OF THE TAX LAW, AND EXPENDED FOR THE PURPOSES SET FORTH  IN
SECTION FIVE HUNDRED FIFTEEN OF THE TAX LAW.
  S 7. This act shall take effect immediately.

S. 6409--A                         89                         A. 9009--A

  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 KK of this act shall be
as specifically set forth in the last section of such Parts.

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

                                 6409--B

                            I N  S E N A T E

                            January 14, 2016
                               ___________

A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
  the Constitution -- read twice and ordered printed, and  when  printed
  to  be  committed to the Committee on Finance -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee  -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT intentionally omitted (Part A); intentionally omitted  (Part  B);
  intentionally omitted (Part C); to amend the real property tax law, in
  relation to allowing applications for exemptions to be filed after the
  taxable  status  date  in certain cases (Part D); to amend the tax law
  and the administrative code of the city of New York,  in  relation  to
  establishing a new school tax reduction credit for residents of a city
  with a population over one million (Part E); to amend the real proper-
  ty  tax  law,  in relation to authorizing the commissioner of taxation
  and finance to make direct payments of STAR tax  savings  to  property
  owners  in  certain cases (Part F); to amend chapter 61 of the laws of
  2011, amending the real property tax law and other  laws  relating  to
  establishing  standards for electronic tax administration, in relation
  to the effectiveness thereof (Part G); to  amend  the  public  housing
  law,  in  relation  to  extending  the  credit  against income tax for
  persons or entities investing in low-income housing (Part H); to amend
  the tax law, in relation to extending the hire a veteran credit for an
  additional two years (Part I); to amend the tax law,  in  relation  to
  extending  the empire state commercial production tax credit (Part J);
  to amend chapter 604 of the laws of 2011, amending the tax law  relat-
  ing  to  the credit for companies who provide transportation to people
  with disabilities, in relation to extending  the  expiration  of  such
  provision (Part K); to amend part I of chapter 58 of the laws of 2006,
  amending  the  tax law relating to providing an enhanced earned income
  tax credit, in relation to making the enhanced earned income tax cred-
  it permanent (Part L); to amend part N of chapter 61 of  the  laws  of
  2005 amending the tax law relating to certain transactions and related
  information  and  relating  to the voluntary compliance initiative, in
  relation to extending the disclosure and penalty provisions for trans-
  actions that present the potential for  tax  avoidance  (Part  M);  to
  amend  the  tax  law,  in relation to extending the clean heating fuel
  credit for three years and updating the credit to reflect new  minimum

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD12674-04-6

S. 6409--B                          2

  biodiesel fuel thresholds (Part N); intentionally omitted (Part O); to
  amend the tax law and the administrative code of the city of New York,
  in  relation  to  making  corrections  to  the  corporate  tax  reform
  provisions  (Subpart  A);  to  amend  the  tax law, in relation to the
  carryover of credit for the special additional mortgage recording  tax
  (Subpart  B);  to  amend the tax law, in relation to the definition of
  investment income (Subpart C); to amend the tax law,  in  relation  to
  definitions concerning prior net operating loss conversion subtraction
  (Subpart  D);  to  amend  the tax law, in relation to the metropolitan
  transportation business tax surcharge (Subpart E); to  amend  the  tax
  law,  in  relation  to  the real property tax credit for manufacturers
  (Subpart F); and to amend the tax law, in relation to leases as assets
  for a qualified residential loan portfolio (Subpart G)  (Part  P);  to
  amend the tax law and the administrative code of the city of New York,
  in  relation to the time for filing reports (Part Q); to amend the tax
  law and the administrative code of the city of New York,  in  relation
  to business income base and certain small business taxpayers (Part R);
  to  amend  the  tax law and the education law, in relation to enacting
  the "education investment  incentives  act"  (Part  S);  intentionally
  omitted  (Part  T);  to amend chapter 109 of the laws of 2006 amending
  the  tax  law  and  other  laws  relating  to  providing   exemptions,
  reimbursements  and credits from various taxes for certain alternative
  fuels, in relation to extending the alternative fuels  tax  exemptions
  for  five years (Part U); to amend the tax law, in relation to exempt-
  ing from alcoholic beverage tax certain alcoholic beverages  furnished
  at  no charge by certain licensees to customers or prospective custom-
  ers at a tasting  held  in  accordance  with  the  alcoholic  beverage
  control law, and to expand the beer production credit to include wine,
  liquor  and  cider  (Part V); intentionally omitted (Part W); to amend
  the tax law and the administrative code of the city of  New  York,  in
  relation  to  allowing  room  remarketers to purchase occupancies from
  hotel operators exempt from  sales  tax  under  certain  circumstances
  (Part  X);  to  amend  the tax law, in relation to charitable contrib-
  utions and charitable activities being considered in determining domi-
  cile for estate tax purposes (Part Y); to amend the state finance law,
  in relation to creating the aviation purpose account and ensuring that
  the funds deposited in the  aviation  purpose  account  are  used  for
  airport  improvement  projects;  to  amend the tax law, in relation to
  provide for the distribution of revenues under section 301-e  of  such
  law;  to  exempt sales of fuel sold for use in commercial aircraft and
  general aviation aircraft from the prepayment  of  sales  tax  imposed
  pursuant to the authority of section 1102(a) (1) (ii) of such law; and
  to  exclude  sales  of  fuel  sold  for use in commercial aircraft and
  general aviation aircraft from the operation of sales  and  use  taxes
  imposed pursuant to the authority of section 1210(a) of such law (Part
  Z);  intentionally omitted (Part AA); intentionally omitted (Part BB);
  to amend  the  racing,  pari-mutuel  wagering  and  breeding  law,  in
  relation to the timing of harness track reimbursements and other tech-
  nical  amendments  (Part CC); to amend the tax law, in relation to the
  payment of vendors' fees (Part DD); to amend the tax law, in  relation
  to  vendor fees at vendor tracks (Part EE); to amend the racing, pari-
  mutuel wagering and breeding law, in relation to licenses  for  simul-
  cast  facilities,  sums relating to track simulcast, simulcast of out-
  of-state thoroughbred races, simulcasting 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 breed-

S. 6409--B                          3

  ing law and other laws relating to simulcasting; to amend chapter  346
  of  the  laws  of  1990  amending the racing, pari-mutuel wagering and
  breeding  law and other laws relating to simulcasting and the  imposi-
  tion  of  certain  taxes,  in  relation to extending certain provision
  thereof; and to amend the racing, pari-mutuel  and  breeding  law,  in
  relation  to  extending certain provisions thereof (Part FF); to amend
  the tax law, in relation to capital awards to vendor tracks (Part GG);
  to amend the state finance law, in relation to  allocations  from  the
  commercial  gaming revenue fund; and to amend the tax law, in relation
  to commissions payable to certain  vendor  racetracks  (Part  HH);  to
  amend the tax law, in relation to further clarifying disclosure proce-
  dures regarding medical marihuana (Part II); to amend the real proper-
  ty tax law, in relation to STAR recoupment program (Part JJ); to amend
  the tax law and the state finance law, in relation to the fees associ-
  ated  with  a certificate of registration and decal imposed by article
  21 of the tax law for certain vehicles operating on public highways in
  New York state (Part KK); to amend the tax law,  in  relation  to  the
  estate  tax  where  the estate includes a farm operation (Part LL); to
  amend the tax  law,  in  relation  to  increasing  the  exemption  for
  pensions and annuities for certain persons (Part MM); to amend the tax
  law,  in relation to cost of living adjustment (Part NN); to amend the
  tax law, in relation to  reductions  in  the  imposition  of  personal
  income  tax (Part OO); to amend the public service law, in relation to
  the temporary state energy and utility service conservation assessment
  (Part PP); to amend the tax law,  in  relation  to  the  property  tax
  relief  credit  (Part  QQ);  to  amend the tax law, in relation to the
  definition of "allowable college tuition expenses" and the tax  credit
  allowed for such expenses (Part RR); to amend the tax law, in relation
  to  contributions  to  family tuition accounts (Part SS); to amend the
  tax law, in relation to interest on indebtedness incurred by  taxpayer
  to  pay  for  higher  education  (Part  TT);  to amend the tax law, in
  relation to requiring wholesalers of motor fuel to register  and  file
  returns  (Part  UU);  to  amend  the tax law, in relation to exempting
  commercial fuel cell electricity generating  systems  and  electricity
  provided  by  such sources from the sales tax imposed by article 28 of
  the tax law and omitting such exemption from the taxes imposed  pursu-
  ant  to  the authority of article 29 of the tax law, unless a locality
  elects otherwise (Part VV); to amend the tax law and the state finance
  law, in relation to the creation  of  the  cigarette  tax  enforcement
  fund; and making an appropriation therefor (Part WW); to amend chapter
  60  of the laws of 2011, amending the New York state urban development
  corporation act relating to the new markets tax credits,  in  relation
  to extending the effectiveness thereof (Part XX); to amend the tax law
  and  the insurance law, in relation to the tax credit for the purchase
  of long-term care insurance (Part YY); to amend the state finance law,
  in relation to the sharing of  revenue  from  gaming  devices  located
  within  the county of Niagara; and to amend chapter 747 of the laws of
  2006 amending the state finance  law,  relating  to  the  tribal-state
  compact  revenue  account,  in relation to extending the effectiveness
  thereof (Part ZZ); to  amend  the  racing,  pari-mutuel  wagering  and
  breeding law, in relation to a memorandum of understanding relating to
  health insurance for jockeys (Part AAA); to amend the racing, pari-mu-
  tuel  wagering  and  breeding  law, in relation to the New York Jockey
  Injury Compensation Fund, Inc. (Part BBB); to amend the racing,  pari-
  mutuel  wagering  and breeding law, in relation to creating the racing
  fan advisory council (Part CCC);  to  amend  the  racing,  pari-mutuel

S. 6409--B                          4

  wagering  and breeding law and the financial services law, in relation
  to interactive fantasy sports (Part DDD); to amend the  racing,  pari-
  mutuel  wagering  and breeding law, in relation to payments in support
  of  racing  (Part  EEE); to amend the racing, pari-mutuel wagering and
  breeding law and the penal law, in relation to allowing certain inter-
  active poker games (Part FFF); relating to capital  acquisition  funds
  maintained  by  regional off-track betting corporations (Part GGG); to
  amend the racing, pari-mutuel wagering and breeding law,  in  relation
  to  authorizing  the division of state police to conduct qualification
  investigations for those applying for casino key employee licenses  or
  gaming employee registrations (Part HHH); and to amend the tax law, in
  relation to establishing the green building credit (Part III)

  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 2016-2017
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through III. 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
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

                          Intentionally Omitted

                                 PART C

                          Intentionally Omitted

                                 PART D

  Section  1.  Subdivision 6 of section 425 of the real property tax law
is amended by adding a new paragraph (a-2) to read as follows:
  (A-2) NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  WHERE  A
RENEWAL  APPLICATION  FOR  THE  "ENHANCED"  STAR EXEMPTION AUTHORIZED BY
SUBDIVISION FOUR OF THIS SECTION HAS NOT BEEN FILED  ON  OR  BEFORE  THE
TAXABLE  STATUS DATE, AND THE OWNER BELIEVES THAT GOOD CAUSE EXISTED FOR
THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT DATE, THE OWNER MAY,
NO LATER THAN THE LAST DAY FOR PAYING  SCHOOL  TAXES  WITHOUT  INCURRING
INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE COMMISSIONER ASKING
HIM  OR  HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION. SUCH
REQUEST SHALL CONTAIN AN EXPLANATION OF WHY THE DEADLINE WAS MISSED, AND
SHALL BE ACCOMPANIED BY A RENEWAL APPLICATION, REFLECTING THE FACTS  AND
CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE. AFTER CONSULT-

S. 6409--B                          5

ING  WITH  THE ASSESSOR, THE COMMISSIONER MAY EXTEND THE FILING DEADLINE
AND GRANT THE EXEMPTION IF THE COMMISSIONER IS SATISFIED THAT  (I)  GOOD
CAUSE  EXISTED  FOR  THE  FAILURE TO FILE THE RENEWAL APPLICATION BY THE
TAXABLE  STATUS  DATE, AND THAT (II) THE APPLICANT IS OTHERWISE ENTITLED
TO THE EXEMPTION. THE COMMISSIONER SHALL  MAIL  NOTICE  OF  HIS  OR  HER
DETERMINATION  TO  SUCH  OWNER  AND  THE  ASSESSOR. IF THE DETERMINATION
STATES THAT THE COMMISSIONER HAS GRANTED  THE  EXEMPTION,  THE  ASSESSOR
SHALL  THEREUPON  BE  AUTHORIZED  AND DIRECTED TO CORRECT THE ASSESSMENT
ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR  CONTROL  OF  THE
ASSESSMENT   ROLL,  TO  DIRECT  THAT  PERSON  TO  MAKE  THE  APPROPRIATE
CORRECTIONS. IF THE CORRECTION IS  NOT  MADE  BEFORE  SCHOOL  TAXES  ARE
LEVIED,  THE  FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTA-
TION OF THE TAX SHALL BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE
THREE OF ARTICLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDING-
LY.
  S 2. Section 467 of the real property tax law is amended by  adding  a
new subdivision 8-a to read as follows:
  8-A.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, THE LOCAL
GOVERNING BODY OF A MUNICIPAL CORPORATION THAT IS AUTHORIZED TO ADOPT  A
LOCAL  LAW  PURSUANT  TO  SUBDIVISION  EIGHT  OF THIS SECTION IS FURTHER
AUTHORIZED TO ADOPT A LOCAL LAW PROVIDING THAT WHERE A RENEWAL  APPLICA-
TION  FOR THE EXEMPTION AUTHORIZED BY THIS SECTION HAS NOT BEEN FILED ON
OR BEFORE THE TAXABLE STATUS DATE, AND  THE  OWNER  BELIEVES  THAT  GOOD
CAUSE  EXISTED  FOR  THE FAILURE TO FILE THE RENEWAL APPLICATION BY THAT
DATE, THE OWNER MAY, NO LATER THAN THE LAST DAY FOR PAYING TAXES WITHOUT
INCURRING INTEREST OR PENALTY, SUBMIT A WRITTEN REQUEST TO THE  ASSESSOR
ASKING HIM OR HER TO EXTEND THE FILING DEADLINE AND GRANT THE EXEMPTION.
SUCH  REQUEST  SHALL  CONTAIN  AN  EXPLANATION  OF  WHY THE DEADLINE WAS
MISSED, AND SHALL BE ACCOMPANIED BY A  RENEWAL  APPLICATION,  REFLECTING
THE  FACTS AND CIRCUMSTANCES AS THEY EXISTED ON THE TAXABLE STATUS DATE.
THE ASSESSOR MAY EXTEND THE FILING DEADLINE AND GRANT THE  EXEMPTION  IF
HE  OR  SHE  IS SATISFIED THAT (I) GOOD CAUSE EXISTED FOR THE FAILURE TO
FILE THE RENEWAL APPLICATION BY THE TAXABLE STATUS DATE, AND  THAT  (II)
THE APPLICANT IS OTHERWISE ENTITLED TO THE EXEMPTION. THE ASSESSOR SHALL
MAIL  NOTICE  OF  HIS OR HER DETERMINATION TO THE OWNER. IF THE DETERMI-
NATION STATES THAT THE ASSESSOR HAS GRANTED THE  EXEMPTION,  HE  OR  SHE
SHALL  THEREUPON  BE  AUTHORIZED  AND DIRECTED TO CORRECT THE ASSESSMENT
ROLL ACCORDINGLY, OR, IF ANOTHER PERSON HAS CUSTODY OR  CONTROL  OF  THE
ASSESSMENT   ROLL,  TO  DIRECT  THAT  PERSON  TO  MAKE  THE  APPROPRIATE
CORRECTIONS. IF THE CORRECTION IS NOT MADE BEFORE TAXES ARE LEVIED,  THE
FAILURE TO TAKE THE EXEMPTION INTO ACCOUNT IN THE COMPUTATION OF THE TAX
SHALL  BE DEEMED A "CLERICAL ERROR" FOR PURPOSES OF TITLE THREE OF ARTI-
CLE FIVE OF THIS CHAPTER, AND SHALL BE CORRECTED ACCORDINGLY.
  S 3. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

                                 PART E

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (eee) to read as follows:
  (EEE) SCHOOL TAX REDUCTION CREDIT FOR RESIDENTS OF A CITY WITH A POPU-
LATION OVER ONE MILLION. (1) FOR TAXABLE YEARS BEGINNING AFTER TWO THOU-
SAND FIFTEEN, A SCHOOL TAX REDUCTION CREDIT SHALL BE ALLOWED TO A  RESI-
DENT  INDIVIDUAL  OF  THE  STATE  WHO  IS  A  RESIDENT  OF A CITY WITH A
POPULATION OVER ONE MILLION, AS PROVIDED  BELOW.  THE  CREDIT  SHALL  BE
ALLOWED  AGAINST  THE  TAXES  AUTHORIZED  BY THIS ARTICLE REDUCED BY THE

S. 6409--B                          6

CREDITS PERMITTED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX  AS  SO
REDUCED,  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
WILL BE PAID THEREON. FOR PURPOSES OF THIS SUBSECTION, NO  CREDIT  SHALL
BE  GRANTED  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.
  (2)  THE AMOUNT OF THE CREDIT UNDER THIS PARAGRAPH SHALL BE DETERMINED
BASED UPON THE TAXPAYER'S INCOME AS  DEFINED  IN  SUBPARAGRAPH  (II)  OF
PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF
THE  REAL  PROPERTY  TAX  LAW.  FOR  THE PURPOSES OF THIS PARAGRAPH, ANY
TAXPAYER UNDER SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH  WITH  INCOME
OF  MORE  THAN  TWO  HUNDRED  FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE A
CREDIT.
  (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN
THE CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND  OF
A SURVIVING SPOUSE, THE CREDIT SHALL BE ONE HUNDRED TWENTY-FIVE DOLLARS.
  (B)  ALL  OTHERS.  IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A
HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN,  THE  CREDIT
SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS.
  (3) PART-YEAR RESIDENTS. IF A TAXPAYER CHANGES STATUS DURING THE TAXA-
BLE  YEAR FROM RESIDENT TO NONRESIDENT, OR FROM NONRESIDENT TO RESIDENT,
THE SCHOOL TAX REDUCTION CREDIT AUTHORIZED BY THIS SUBSECTION  SHALL  BE
PRORATED ACCORDING TO THE NUMBER OF MONTHS IN THE PERIOD OF RESIDENCE.
  S  2.  Paragraphs 1 and 2 of subsection (e) of section 1310 of the tax
law, paragraph 1 as amended by section 3 of part A of chapter 56 of  the
laws  of  1998, paragraph 2 as amended by section 1 of part R of chapter
57 of the laws of 2008 and subparagraphs (A) and (B) of paragraph  2  as
amended  by  section  4 of part M of chapter 57 of the laws of 2009, are
amended to read as follows:
  (1) For taxable years beginning after nineteen  hundred  ninety-seven,
AND  ENDING  BEFORE  TWO  THOUSAND SIXTEEN, a state school tax reduction
credit shall be allowed as provided in the following tables. The  credit
shall be allowed against the taxes authorized by this article 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. For purposes of this subsection, no
credit shall be  granted  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.
  (2)  The amount of the credit under this paragraph shall be determined
based upon the taxpayer's income as  defined  in  subparagraph  (ii)  of
paragraph (b) of subdivision four of section four hundred twenty-five of
the  real  property  tax  law.  For  the purposes of this paragraph, any
taxpayer under subparagraphs (A) and (B) of this paragraph  with  income
of  more  than  two  hundred  fifty thousand dollars shall not receive a
credit.
  Beginning in the two thousand ten tax year and each tax year thereaft-
er THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty  thou-
sand  dollar"  income  limitation  shall  be  adjusted  by  applying the
inflation factor set forth herein, and rounding each result to the near-
est multiple of one hundred dollars. The department shall establish  the
income  limitation  to  be  associated  with each subsequent tax year by

S. 6409--B                          7

applying the inflation factor set  forth  herein  to  the  figures  that
define  the  income limitation that were applicable to the preceding tax
year, as determined  pursuant  to  this  [subdivision]  SUBSECTION,  and
rounding  each  result  to  the nearest multiple of one hundred dollars.
Such determination shall be made no later than March first, two thousand
ten and each year thereafter.
  [For purposes of this  paragraph,  the  "inflation  factor"  shall  be
determined  in  accordance  with the provisions set forth in subdivision
fifteen of section one hundred seventy-eight of this chapter.]
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]- 2015       $125
  (B) All others. In the case of an unmarried individual, a  head  of  a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]- 2015       $62.50
  S  3.  Paragraphs  1 and 2 of subsection (c) of section 11-1706 of the
administrative code of the city of New York, paragraph 1 as  amended  by
section  6  of  part A of chapter 56 of the laws of 1998, paragraph 2 as
amended by section 2 of part R of chapter 57 of the  laws  of  2008  and
subparagraphs (A) and (B) of paragraph 2 as amended by section 5 of part
M of chapter 57 of the laws of 2009, are amended to read as follows:
  (1)  For  taxable  years beginning after nineteen hundred ninety-seven
AND ENDING BEFORE TWO THOUSAND SIXTEEN, a  state  school  tax  reduction
credit  shall be allowed as provided in the following tables. The credit
shall be allowed against the taxes authorized by this article 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. For purposes of this [subdivision]
SUBSECTION, no credit shall be granted 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.
  (2)  The amount of the credit under this paragraph shall be determined
based upon the taxpayer's income as  defined  in  subparagraph  (ii)  of
paragraph (b) of subdivision four of section four hundred twenty-five of
the  real property tax law. For purposes of this paragraph, any taxpayer
under subparagraphs (A) and (B) of this paragraph with  income  of  more
than two hundred fifty thousand dollars shall not receive a credit.
  Beginning in the two thousand ten tax year and each tax year thereaft-
er  THROUGH TWO THOUSAND FIFTEEN, the "more than two hundred fifty thou-
sand dollar"  income  limitation  shall  be  adjusted  by  applying  the
inflation factor set forth herein, and rounding each result to the near-
est  multiple of one hundred dollars. The department shall establish the
income limitation to be associated with  each  subsequent  tax  year  by
applying  the  inflation  factor  set  forth  herein to the figures that
define the income limitation that were applicable to the  preceding  tax

S. 6409--B                          8

year,  as  determined  pursuant  to  this  [subdivision] SUBSECTION, and
rounding each result to the nearest multiple  of  one  hundred  dollars.
Such determination shall be made no later than March first, two thousand
ten and each year thereafter.
  [For  purposes  of  this  paragraph,  the  "inflation factor" shall be
determined in accordance with the provisions set  forth  in  subdivision
fifteen of section one hundred seventy-eight of the tax law.]
  (A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $125
               in 2006                         $230
               in 2007-2008                    $290
               in 2009 [and after]- 2015       $125
  (B)  All  others.  In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
     For taxable years beginning:       The credit shall be:
               in 2001-2005                    $62.50
               in 2006                         $115
               in 2007-2008                    $145
               in 2009 [and after]- 2015       $62.50
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.

                                 PART F

  Section 1. Section 425 of the real property  tax  law  is  amended  by
adding a new subdivision 16 to read as follows:
  (16)  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, WHEN THE
COMMISSIONER FINDS THAT A PROPERTY  OWNER  WAS  ELIGIBLE  FOR  THE  STAR
EXEMPTION  AUTHORIZED  BY  THIS  SECTION  ON AN ASSESSMENT ROLL, BUT THE
EXEMPTION WAS NOT TAKEN INTO ACCOUNT IN THE CALCULATION OF THE  PROPERTY
OWNER'S SCHOOL TAX BILL DUE TO AN ADMINISTRATIVE ERROR, AND THE PROPERTY
OWNER  OR  HIS  OR HER AGENT PAID AN EXCESSIVE AMOUNT OF SCHOOL TAXES ON
THE PROPERTY AS A RESULT, THE COMMISSIONER OF TAXATION  AND  FINANCE  IS
AUTHORIZED  TO REMIT DIRECTLY TO THE PROPERTY OWNER THE TAX SAVINGS THAT
THE STAR EXEMPTION WOULD HAVE YIELDED IF THE  STAR  EXEMPTION  HAD  BEEN
TAKEN  INTO  ACCOUNT  IN  THE  CALCULATION OF THAT TAXPAYER'S SCHOOL TAX
BILL. THE AMOUNTS PAYABLE UNDER THIS SECTION  SHALL  BE  PAID  FROM  THE
ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS
PURSUANT  TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN
OF THIS SECTION. WHERE SUCH A PAYMENT HAS BEEN MADE, NEITHER THE PROPER-
TY OWNER NOR HIS OR HER AGENT SHALL BE  ENTITLED  TO  A  REFUND  OF  THE
EXCESSIVE  AMOUNT  OF SCHOOL TAXES PAID ON ACCOUNT OF THE ADMINISTRATIVE
ERROR.
  S 2. This act shall take effect immediately.

                                 PART G

  Section 1. Intentionally omitted.
  S 2. Intentionally omitted.
  S 3. Intentionally omitted.
  S 4. Intentionally omitted.
  S 5. Section 23 of part U of chapter 61 of the laws of 2011,  amending
the real property tax law and other laws relating to establishing stand-

S. 6409--B                          9

ards  for electronic tax administration, as amended by section 1 of part
H of chapter 59 of the laws of 2013, is amended to read as follows:
  S 23. This act shall take effect immediately; provided, however, that:
  (a)  the amendments to section 29 of the tax law made by section thir-
teen of this act shall apply to tax documents filed or  required  to  be
filed  on  or  after  the  sixtieth  day after which this act shall have
become a law and shall expire and be deemed repealed December 31, [2016]
2017, provided however that the amendments to paragraph 4 of subdivision
(a) of section 29 of the tax law and paragraph 2 of subdivision  (e)  of
section  29  of  the  tax  law made by section thirteen of this act with
regard to individual taxpayers shall take effect September 15, 2011  but
only  if  the  commissioner  of taxation and finance has reported in the
report required by section seventeen-b of this act that  the  percentage
of  individual  taxpayers  electronically  filing  their 2010 income tax
returns is less than eighty-five percent; provided that the commissioner
of taxation and finance  shall  notify  the  legislative  bill  drafting
commission  of the date of the issuance of such report in order that the
commission may maintain an accurate and timely effective  data  base  of
the official text of the laws of the state of New York in furtherance of
effectuating  the  provisions  of  section 44 of the legislative law and
section 70-b of the public officers law;
  (b) sections fourteen, fifteen, sixteen  and  seventeen  of  this  act
shall  take  effect  September  15, 2011 but only if the commissioner of
taxation and finance has reported in  the  report  required  by  section
seventeen-b  of  this  act  that  the percentage of individual taxpayers
electronically filing their 2010 income tax returns is less than  eight-
y-five percent;
  (c)  sections  fourteen-a  and fifteen-a of this act shall take effect
September 15, 2011 and expire and be deemed repealed December  31,  2012
but  shall  take effect only if the commissioner of taxation and finance
has reported in the report required by section seventeen-b of  this  act
that  the percentage of individual taxpayers electronically filing their
2010 income tax returns is eighty-five percent or greater;
  (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of  this
act shall take effect January 1, [2017] 2018 but only if the commission-
er  of  taxation  and  finance  has  reported  in the report required by
section seventeen-b of  this  act  that  the  percentage  of  individual
taxpayers  electronically  filing  their 2010 income tax returns is less
than eighty-five percent; and
  (e) sections twenty-one and twenty-one-a of this act shall expire  and
be deemed repealed December 31, [2016] 2017.
  S 6. Intentionally omitted.
  S 7. Intentionally omitted.
  S 8. This act shall take effect immediately.

                                 PART H

  Section  1.  Subdivision 4 of section 22 of the public housing law, as
amended by section 2 of part P of chapter 59 of the  laws  of  2014,  is
amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall  be  [sixty-four]  SEVENTY-TWO million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not

S. 6409--B                         10

apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 2. Subdivision 4 of section 22 of the public housing law, as amended
by section one of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article shall be [seventy-two] EIGHTY million dollars. The limita-
tion provided by this subdivision applies  only  to  allocation  of  the
aggregate  dollar  amount  of  credit  by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 3. Subdivision 4 of section 22 of the public housing law as  amended
by section two of this act is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this article shall be [eighty] EIGHTY-EIGHT million dollars. The limita-
tion  provided  by  this  subdivision  applies only to allocation of the
aggregate dollar amount of credit by  the  commissioner,  and  does  not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, is amended to read as follows:
  4.  Statewide  limitation. The aggregate dollar amount of credit which
the commissioner may allocate to  eligible  low-income  buildings  under
this  article  shall  be  [eighty-eight] NINETY-SIX million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, is amended to read as follows:
  4. Statewide limitation. The aggregate dollar amount of  credit  which
the  commissioner  may  allocate  to eligible low-income buildings under
this article shall be [ninety-six] ONE HUNDRED FOUR million dollars. The
limitation provided by this subdivision applies only  to  allocation  of
the  aggregate dollar amount of credit by the commissioner, and does not
apply to allowance to a taxpayer of the credit with respect to an eligi-
ble low-income building for each year of the credit period.
  S 6. This  act  shall  take  effect  immediately;  provided,  however,
section  two  of this act shall take effect April 1, 2017; section three
of this act shall take effect April 1, 2018; section four  of  this  act
shall  take effect April 1, 2019 and section five of this act shall take
effect April 1, 2020.

                                 PART I

  Section 1. Paragraphs (a) and (b) of subdivision 29 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:
  (a) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first,  two  thousand
[seventeen]  NINETEEN,  a  taxpayer  shall  be  allowed  a credit, to be
computed as provided in this subdivision, against  the  tax  imposed  by
this  article,  for hiring and employing, for not less than one year and
for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which the

S. 6409--B                         11

qualified veteran completes one year of employment by the  taxpayer.  If
the  taxpayer  claims  the  credit  allowed  under this subdivision, the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (b) Qualified veteran. A qualified veteran is an individual:
  (1) who served on active duty in the United  States  army,  navy,  air
force,  marine corps, coast guard or the reserves thereof, or who served
in active military service of the United States as a member of the  army
national  guard,  air  national  guard, New York guard or New York naval
militia; who was released from  active  duty  by  general  or  honorable
discharge after September eleventh, two thousand one;
  (2)  who  commences  employment  by the qualified taxpayer on or after
January first, two thousand fourteen,  and  before  January  first,  two
thousand [sixteen] EIGHTEEN; and
  (3)  who certifies by signed affidavit, under penalty of perjury, that
he or she has not been employed for thirty-five or more hours during any
week in the one hundred eighty day period immediately prior  to  his  or
her employment by the taxpayer.
  S  2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax
law, as added by section 3 of part AA of chapter 59 of the laws of 2013,
are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first,  two  thousand
[seventeen]  NINETEEN,  a  taxpayer  shall  be  allowed  a credit, to be
computed as provided in this subsection, against the tax imposed by this
article, for hiring and employing, for not less than one  year  and  for
not  less  than  thirty-five hours each week, a qualified veteran within
the state. The taxpayer may claim the credit in the year  in  which  the
qualified  veteran  completes one year of employment by the taxpayer. If
the taxpayer claims  the  credit  allowed  under  this  subsection,  the
taxpayer may not use the hiring of a qualified veteran that is the basis
for  this  credit  in  the  basis of any other credit allowed under this
article.
  (2) Qualified veteran. A qualified veteran is an individual:
  (A) who served on active duty in the United  States  army,  navy,  air
force,  marine corps, coast guard or the reserves thereof, or who served
in active military service of the United States as a member of the  army
national  guard,  air  national  guard, New York guard or New York naval
militia; who was released from  active  duty  by  general  or  honorable
discharge after September eleventh, two thousand one;
  (B)  who  commences  employment  by the qualified taxpayer on or after
January first, two thousand fourteen,  and  before  January  first,  two
thousand [sixteen] EIGHTEEN; and
  (C)  who certifies by signed affidavit, under penalty of perjury, that
he or she has not been employed for thirty-five or more hours during any
week in the one hundred eighty day period immediately prior  to  his  or
her employment by the taxpayer.
  S  3.  Paragraphs  1 and 2 of subdivision (g-1) of section 1511 of the
tax law, as added by section 5 of part AA of chapter 59 of the  laws  of
2013, are amended to read as follows:
  (1) Allowance of credit. For taxable years beginning on or after Janu-
ary  first,  two thousand fifteen and before January first, two thousand
[seventeen] NINETEEN, a taxpayer  shall  be  allowed  a  credit,  to  be
computed  as  provided  in  this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than one  year  and

S. 6409--B                         12

for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which the
qualified  veteran  completes one year of employment by the taxpayer. If
the  taxpayer  claims  the  credit  allowed  under this subdivision, the
taxpayer may not use the hiring of a qualified veteran that is the basis
for this credit in the basis of any  other  credit  allowed  under  this
article.
  (2) Qualified veteran. A qualified veteran is an individual:
  (A)  who  served  on  active duty in the United States army, navy, air
force, marine corps, coast guard or the reserves thereof, or who  served
in  active military service of the United States as a member of the army
national guard, air national guard, New York guard  or  New  York  naval
militia;  who  was  released  from  active  duty by general or honorable
discharge after September eleventh, two thousand one;
  (B) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand [sixteen] EIGHTEEN; and
  (C) who certifies by signed affidavit, under penalty of perjury,  that
he or she has not been employed for thirty-five or more hours during any
week  in  the  one hundred eighty day period immediately prior to his or
her employment by the taxpayer.
  S 4. This act shall take effect immediately.

                                 PART J

  Section 1. Paragraph 1 of subdivision (a) of section  28  of  the  tax
law,  as  amended  by  section  1 of part O of chapter 59 of the laws of
2014, is amended to read as follows:
  (1) A taxpayer which is a qualified commercial production company,  or
which is a sole proprietor of a qualified commercial production company,
and  which  is subject to tax under article nine-A or twenty-two of this
chapter, shall be allowed a credit against such  tax,  pursuant  to  the
provisions referenced in subdivision (c) of this section, to be computed
as  provided in this section. Provided, however, to be eligible for such
credit, at least seventy-five percent of the production costs (excluding
post production costs) paid or incurred directly  and  predominantly  in
the  actual  filming  or  recording  of the qualified commercial must be
costs incurred in New York state. The tax  credit  allowed  pursuant  to
this  section  shall  apply  to  taxable  years beginning before January
first, two thousand [seventeen] NINETEEN.
  S 2. Paragraph (c) of subdivision 23 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:
  (c) Expiration of credit. The credit allowed  under  this  subdivision
shall not be applicable to taxable years beginning on or after [December
thirty-first] JANUARY FIRST, two thousand [seventeen] NINETEEN.
  S  3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as
amended by section 4 of part O of chapter 59 of the  laws  of  2014,  is
amended to read as follows:
  (1)  Allowance  of credit. A taxpayer that is eligible pursuant to the
provisions of section twenty-eight of this chapter shall  be  allowed  a
credit  to  be  computed  as  provided  in  such section against the tax
imposed by this article. The tax credit allowed pursuant to this section
shall apply to taxable years beginning before January first,  two  thou-
sand [seventeen] NINETEEN.
  S 4. This act shall take effect immediately.

S. 6409--B                         13

                                 PART K

  Section  1. Section 5 of chapter 604 of the laws of 2011, amending the
tax law relating to the credit for companies who provide  transportation
to people with disabilities, is amended to read as follows:
  S 5. This act shall take effect immediately and shall remain in effect
until December 31, 2016 when upon such date it shall be deemed repealed;
provided  that  this  act shall be deemed to have been in full force and
effect on December 31, 2010; [and] provided further that this act  shall
apply  to  all  tax  years  commencing  on or after January 1, 2011; AND
PROVIDED FURTHER THAT SECTIONS ONE AND TWO OF THIS ACT SHALL  REMAIN  IN
EFFECT  UNTIL  DECEMBER 31, 2022 WHEN UPON SUCH DATE SUCH SECTIONS SHALL
BE DEEMED REPEALED.
  S 2. Paragraph (c) of subdivision 38 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:
  (c) Application of credit. In no event shall the credit allowed  under
this  subdivision  for any taxable year 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 or if the taxpayer otherwise pays tax based on the
fixed dollar minimum amount, any amount of credit thus not deductible in
such taxable year shall be carried over to the following year or  years,
and may be deducted from the taxpayer's tax for such year or years.  THE
TAX CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION SHALL NOT APPLY TO TAXA-
BLE   YEARS   BEGINNING   ON   OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
TWENTY-THREE.
  S 3. This act shall take effect immediately.

                                 PART L

  Section 1. Section 2 of part I of chapter 58  of  the  laws  of  2006,
relating  to  providing an enhanced earned income tax credit, as amended
by section 1 of part G of chapter 59 of the laws of 2014, is amended  to
read as follows:
  S 2. This act shall take effect immediately and shall apply to taxable
years  beginning  on  or  after  January  1, 2006 [and before January 1,
2017].
  S 2. This act shall take effect immediately.

                                 PART M

  Section 1. Section 12 of part N of chapter 61 of  the  laws  of  2005,
amending the tax law relating to certain transactions and related infor-
mation  and  relating to the voluntary compliance initiative, as amended
by section 1 of part B of chapter 61 of the laws of 2011, is amended  to
read as follows:
  S  12. This act shall take effect immediately; provided, however, that
(i) section one of this act shall apply  to  all  disclosure  statements
described  in  paragraph  1  of subdivision (a) of section 25 of the tax
law, as added by section one of this act, that were required to be filed
with the internal revenue service at any time with  respect  to  "listed
transactions"  as  described in such paragraph 1, and shall apply to all
disclosure statements described in paragraph 1  of  subdivision  (a)  of
section  25  of  the  tax law, as added by section one of this act, that

S. 6409--B                         14

were required to be filed with the internal revenue service with respect
to "reportable transactions" as described in  such  paragraph  1,  other
than  "listed transactions", in which a taxpayer participated during any
taxable year for which the statute of limitations for assessment has not
expired  as  of  the date this act shall take effect, and shall apply to
returns or statements described in such paragraph 1 required to be filed
by taxpayers (or persons  as  described  in  such  paragraph)  with  the
commissioner  of taxation and finance on or after the sixtieth day after
this act shall have become a law; and
  (ii) sections two through four and seven  through  nine  of  this  act
shall apply to any tax liability for which the statute of limitations on
assessment  has  not  expired as of the date this act shall take effect;
and
  (iii) provided, further, that  the  provisions  of  this  act,  except
section  five  of  this act, shall expire and be deemed repealed July 1,
[2015] 2017; provided, that, such expiration and repeal shall not affect
any requirement imposed pursuant to this act.
  S 2. This act shall take effect immediately and  shall  be  deemed  to
have  been in full force and effect on and after July 1, 2015; provided,
however that notwithstanding the provisions of article 5 of the  general
construction  law,  the  provisions  of  section  25,  paragraph  11  of
subsection (c) of section 683, subsections (p), (p-1),  (x),  (y),  (z),
(aa)  and (bb) of section 685, paragraph 11 of subsection (c) of section
1083, subsections (k), (k-1), (p), (q), (r), (s) and (t) of section 1085
of the tax law, and section 11 of part N of chapter 61 of  the  laws  of
2005,  are hereby revived and shall continue in full force and effect as
such provisions existed on July 1, 2015.

                                 PART N

  Section 1. Paragraph (a) of subdivision 25 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) General. A taxpayer shall be allowed  a  credit  against  the  tax
imposed  by  this  article.  Such  credit, to be computed as hereinafter
provided, shall be allowed for bioheat, used for space  heating  or  hot
water  production  for  residential purposes within this state purchased
before January first, two thousand [seventeen] TWENTY. Such credit shall
be $0.01 per percent of biodiesel per gallon of bioheat, not  to  exceed
twenty  cents per gallon, purchased by such taxpayer. PROVIDED, HOWEVER,
THAT ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  SEVENTEEN,  THIS  CREDIT
SHALL  NOT  APPLY TO BIOHEAT THAT IS LESS THAN SIX PERCENT BIODIESEL PER
GALLON OF BIOHEAT.
  S 2. Paragraph 1 of subsection (mm) of section 606 of the tax law,  as
amended  by  chapter  193  of  the  laws  of 2012, is amended to read as
follows:
  (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
this article. Such credit, to be computed as hereinafter provided, shall
be  allowed  for bioheat, used for space heating or hot water production
for residential purposes within this state and  purchased  on  or  after
July  first,  two thousand six and before July first, two thousand seven
and on or after January first, two thousand  eight  and  before  January
first,  two  thousand [seventeen] TWENTY. Such credit shall be $0.01 per
percent of biodiesel per gallon of bioheat, not to exceed  twenty  cents
per  gallon,  purchased  by such taxpayer. PROVIDED, HOWEVER, THAT ON OR
AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, THIS CREDIT SHALL NOT APPLY

S. 6409--B                         15

TO BIOHEAT THAT IS  LESS  THAN  SIX  PERCENT  BIODIESEL  PER  GALLON  OF
BIOHEAT.
  S 3. This act shall take effect immediately.

                                 PART O

                          Intentionally Omitted

                                 PART P

  Section  1.  This act enacts into law major components of legislation.
Each component is  wholly  contained  within  a  Subpart  identified  as
Subparts  A  through G. 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 references 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. Section three of  this  act
sets forth the general effective date of this act.

                                SUBPART A

  Section  1.  Subdivision (c) of section 24 of the tax law, as added by
section 1 of part P of chapter 60 of the laws of  2004,  is  amended  to
read as follows:
  (c)  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] 210-B: subdivision [36] 20.
  (2) article 22: section 606: subsection (gg).
  S 2. Subdivision (a) and paragraphs 2, 4, and 5 of subdivision (e)  of
section  38  of the tax law, as added by section 1 of part EE of chapter
59 of the laws of 2013, are amended to read as follows:
  (a) A taxpayer that is an eligible employer or an owner of an eligible
employer as defined in subdivision (b) of this section shall be eligible
for a credit against the tax imposed under article nine,  nine-A,  twen-
ty-two,  [thirty-two]  or  thirty-three of this article, pursuant to the
provisions referenced in subdivision (e) of this section.
  (2) Article 9-A: Section [210] 210-B, subdivision [46] 40.
  (4) [Article 32: Section 1456, subsection (z).
  (5)] Article 33: Section 1511, subdivision (cc).
  S 3. Paragraph (e) 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:
  (e) At the end of each year, the commissioner shall review the cumula-
tive percentage change in the consumer  price  index.  The  commissioner
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 thou-
sand  dollars.  As  used in this paragraph, "consumer price index" means
the consumer price index  for  all  urban  consumers  (CPI-U)  available
[form]  FROM the bureau of labor statistics of the United States depart-

S. 6409--B                         16

ment of labor. Any adjustment shall apply  to  tax  periods  that  begin
after the adjustment is made.
  S  4.  The  opening  paragraph  of  paragraph  (a) of subdivision 5 of
section 210-A of the tax law, as amended by section  23  of  part  T  of
chapter 59 of the laws of 2015, is amended to read as follows:
  A  financial instrument is a "nonqualified financial instrument" if it
is not a qualified financial instrument. A qualified  financial  instru-
ment  means a financial instrument that is of a type described in any of
clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of  this
paragraph  and that has been marked to market in the taxable year by the
taxpayer under section 475 or section 1256 of the internal revenue code.
Further, if the taxpayer has in the taxable  year  marked  to  market  a
financial  instrument  of  the type described in any of the clauses (A),
(B), (C), (D), (G), (H) or (I) of subparagraph two  of  this  paragraph,
then  any  financial  instrument within that type described in the above
specified clause or clauses that has not been marked to  market  by  the
taxpayer  under section 475 or section 1256 of the internal revenue code
is a qualified financial instrument in the taxable year. Notwithstanding
the two preceding sentences, (i) a loan secured by real  property  shall
not be a qualified financial instrument, (ii) if the only loans that are
marked  to  market  by the taxpayer under section 475 or section 1256 of
the internal revenue code are loans secured by real  property,  then  no
loans  shall  be qualified financial instruments, [and] (iii) stock that
is investment capital as defined in paragraph (a) of subdivision five of
section two hundred eight of this  article  shall  not  be  a  qualified
financial  instrument, AND (IV) STOCK THAT GENERATES OTHER EXEMPT INCOME
AS DEFINED IN SUBDIVISION SIX-A OF SECTION TWO  HUNDRED  EIGHT  OF  THIS
ARTICLE  AND  THAT  IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION
1256 OF THE INTERNAL REVENUE  CODE  SHALL  NOT  CONSTITUTE  A  QUALIFIED
FINANCIAL  INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT IS
DESCRIBED IN SUCH SUBDIVISION SIX-A.  If a corporation is included in  a
combined  report, the definition of qualified financial instrument shall
be determined on a combined basis.
  S 5. Paragraph (c) of subdivision 7 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:
  (c) Average number of individuals employed full-time. For the purposes
of this subdivision, average number of  individuals  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  taxable  year  or
other  applicable  period and dividing the sum so obtained by the number
of such quarters occurring within such taxable year or other  applicable
period; provided however, except that in computing base year employment,
there  shall  be  excluded therefrom any employee with respect to whom a
credit provided for under subdivision [six of this section is]  NINETEEN
OF  SECTION  TWO HUNDRED TEN OF THIS ARTICLE, AS SUCH SUBDIVISION WAS IN
EFFECT ON DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, WAS claimed  for
the taxable year.
  S  6.  Paragraph (a) of subdivision 9 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) Application of credit. A taxpayer shall be allowed a credit, to be
credited against the tax imposed by this article, equal to the amount of
the  special  additional  mortgage  recording  tax  paid by the taxpayer
pursuant to the provisions of subdivision one-a of section  two  hundred
fifty-three of this chapter [or] ON mortgages recorded. Provided, howev-

S. 6409--B                         17

er,  no credit shall be allowed with respect to a mortgage of real prop-
erty principally improved or to be improved by one  or  more  structures
containing  in  the  aggregate  not  more  than six residential dwelling
units,  each  dwelling  unit having its own separate cooking facilities,
where the real property is located  in  one  or  more  of  the  counties
comprising  the  metropolitan  commuter  transportation  area.  Provided
further, however, no credit shall be allowed with respect to a  mortgage
of  real  property principally improved or to be improved by one or more
structures containing in the aggregate not  more  than  six  residential
dwelling  units,  each  dwelling  unit  having  its own separate cooking
facilities, where the real property is located in the county of Erie.
  S 7. Subdivision 45 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:
  45. Order of credits. [(a)] Credits allowable under this article which
cannot be carried over and which are not refundable  shall  be  deducted
first. [The credit allowable under subdivision six of this section shall
be  deducted  immediately  after  the deduction of all credits allowable
under this article which cannot  be  carried  over  and  which  are  not
refundable,  whether  or  not  a  portion of such credit is refundable.]
Credits allowable under this article which  can  be  carried  over,  and
carryovers  of such credits, shall be deducted next [after the deduction
of the credit allowable under subdivision  six  of  this  section],  and
among  such  credits, those whose carryover is of limited duration shall
be deducted before those whose carryover is of unlimited duration. Cred-
its allowable under this article which are refundable [(other  than  the
credit  allowable  under  subdivision  six  of  this  section)] shall be
deducted last.
  S 8. Paragraph (a) of subdivision 3 of section 210-C of the  tax  law,
as  added  by section 18 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
  (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 bases of all
members  of the group in accordance with [paragraph] SUBDIVISION four of
this [subdivision] SECTION, whether or not that business income or busi-
ness capital is from a single unitary business.
  S 9. Paragraph I of subdivision 1 of section 11-604 of the administra-
tive code of the city of New York, as added by chapter 491 of  the  laws
of 2007, is amended to read as follows:
  I.  Notwithstanding any provision of this subdivision to the contrary,
for taxable years beginning on or  after  January  first,  two  thousand
seven for any corporation that:
  (a)  has  a  business  allocation  percentage for the taxable year, as
determined under paragraph (a) of subdivision three of this section,  of
one hundred percent;
  (b) has no investment capital or income at any time during the taxable
year;
  (c) has no subsidiary capital or income at any time during the taxable
year; and

S. 6409--B                         18

  (d)  has gross income, as defined in section sixty-one of the internal
revenue code, less than two hundred fifty thousand dollars for the taxa-
ble year:
  the  tax imposed by subdivision one of section 11-603 of this subchap-
ter shall be the greater of the tax on entire net income computed  under
clause  one  of  subparagraph (a) of paragraph E of this subdivision and
the fixed dollar minimum tax specified in clause  four  of  subparagraph
(a) of paragraph E of this subdivision.
  For  purposes  of  this  paragraph, FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO  THOUSAND  FIFTEEN,  any  corporation  for  which  an
election  under  subsection  (a) of section six hundred sixty of the tax
law is not in effect for the taxable year may elect to treat  as  entire
net income the sum of:
  (i) entire net income as determined under section two hundred eight of
the tax law; and
  (ii)  any  deductions  taken for the taxable year in computing federal
taxable income for New York city taxes paid or accrued under this  chap-
ter.
  S  10.  Subdivision  2 of section 11-651 of the administrative code of
the city of New York, as added by section 1 of part D of chapter  60  of
the laws of 2015, is amended to read as follows:
  2.  Each  reference  in THE TAX LAW OR 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 modifica-
tions.
  S 11. Paragraph (a) of subdivision 4 of section 11-652 of the adminis-
trative code of the city of New York, as added by section 1 of part D of
chapter 60 of the laws of 2015, is amended to read as follows:
  (a) The term "investment capital" means investments  in  stocks  that:
(i)  satisfy the definition of a capital asset under section 1221 of the
internal revenue code at all times the taxpayer owned such stocks during
the taxable year; (ii) are held by the taxpayer for investment for  more
than one year; (iii) the dispositions of which are, or would be, treated
by  the  taxpayer  as generating long-term capital gains or losses under
the internal revenue code; (iv) for stocks acquired on or after  January
first,  two  thousand fifteen, at any time after the close of the day in
which they are acquired, have never been held for sale to  customers  in
the  regular  course of business; and (v) before the close of the day on
which the stock was acquired, are clearly identified in  the  taxpayer's
records  as  stock  held  for  investment in the same manner as required
under section 1236(a)(1) of the internal revenue code for the stock of a
dealer in securities to be eligible for capital gain treatment  (whether
or  not the taxpayer is a dealer of securities subject to section 1236),
provided, however, that for stock acquired prior to October  first,  two
thousand fifteen that was not subject to section 1236(a) of the internal
revenue  code,  such identification in the taxpayer's records must occur
before October first, two thousand fifteen. Stock in a corporation  that
is  conducting  a  unitary business with the taxpayer, stock in a corpo-
ration 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 [used]  ISSUED  by  the  taxpayer
shall  not  constitute investment capital. For purposes of this subdivi-
sion, if the taxpayer owns or controls,  directly  or  indirectly,  less
than  twenty  percent of the voting power of the stock of a corporation,

S. 6409--B                         19

that corporation will be presumed to be conducting a  business  that  is
not unitary with the business of the taxpayer.
  S  12.  Subparagraph  2  of paragraph (a) of subdivision 18 of section
11-654 of the administrative code of the city of New York, as  added  by
section  1  of  part  D of chapter 60 of the laws of 2015, is amended to
read as follows:
  (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,] EXCEPT THAT IN
THE CASE OF A FINANCIAL CORPORATION AS DEFINED IN CLAUSE (I) OF SUBPARA-
GRAPH  ONE  OF  PARAGRAPH  (E)  OF SUBDIVISION ONE OF THIS SECTION, SUCH
DENOMINATOR IS NINE, AND in the case of a taxpayer that  is  subject  to
paragraph  (j) or (k) of subdivision one of this section, such denomina-
tor 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.
  S  13.  Subparagraph  1  of paragraph (b) of subdivision 18 of section
11-654 of the administrative code of the city of New York, as  added  by
section  1  of  part  D of chapter 60 of the laws of 2015, is amended to
read as follows:
  (1) Notwithstanding anything to the contrary in paragraph (a) of  this
subdivision,  in  the case of a corporation that, before the application
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], EXCEPT THAT IN THE CASE OF A FINANCIAL  CORPORATION
AS  DEFINED IN CLAUSE (I) OF SUBPARAGRAPH ONE OF PARAGRAPH (E) OF SUBDI-
VISION ONE OF THIS SECTION, SUCH DENOMINATOR IS NINE, AND 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. 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

S. 6409--B                         20

forward, in order, to each of the seven immediately  succeeding  taxable
years  and,  to  the  extent not previously taken, shall be allowed as a
credit in each of such years. In applying the provisions of the  preced-
ing sentence, the credit determined for the taxable year under paragraph
(a)  of  this subdivision shall be taken before taking any credit carry-
forward pursuant to this paragraph and the credit carryforward attribut-
able to the earliest taxable year shall be taken before taking a  credit
carryforward attributable to a subsequent taxable year.
  S  14.  Subparagraph  8  of paragraph (a) of subdivision 21 of section
11-654 of the administrative code of the city of New York, as  added  by
section  1  of  part  D of chapter 60 of the laws of 2015, is amended to
read as follows:
  (8) The credit allowed under this subdivision shall  only  be  allowed
for taxable years beginning before January first, two thousand [sixteen]
NINETEEN.
  S 15. Paragraph (c) of subdivision 2 of section 11-654.2 of the admin-
istrative  code of the city of New York, as added by section 1 of part D
of chapter 60 of the laws of 2015, is amended to read as follows:
  (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)]  (IX)
of  subparagraph  two  of  paragraph  (a)  of  subdivision  five of this
section.
  S 16. The opening paragraph of  paragraph  (a)  of  subdivision  5  of
section  11-654.2 of the administrative code of the city of New York, as
added by section 1 of part D of chapter 60  of  the  laws  of  2015,  is
amended to read as follows:
  A  financial instrument is a "nonqualified financial instrument" if it
is not a qualified financial instrument. A qualified  financial  instru-
ment  means a financial instrument that is of a type described in any of
clause (i), (ii), (iii), (iv), (vii), (viii) or (ix) of subparagraph two
of this paragraph and that has been marked to market in the taxable year
by the taxpayer under section 475 or section 1256 of the internal reven-
ue code. Further, if the taxpayer has in  the  taxable  year  marked  to
market  a  financial  instrument  of the type described in any of clause
(i), (ii), (iii), (iv), (vii), (viii) or (ix)  of  subparagraph  two  of
this paragraph, then any financial instrument within that type described
in  the  above  specified  clause or clauses that has not been marked to
market by the taxpayer under section 475 or section 1256 of the internal
revenue code is a qualified financial instrument in  the  taxable  year.
Notwithstanding  the two preceding sentences, (i) a loan secured by real
property shall not be a qualified financial instrument, (ii) if the only
loans that are marked to market by the taxpayer  under  section  475  or
section  1256  of  the  internal  revenue code are loans secured by real
property, then no loans shall be qualified financial instruments,  [and]
(iii)  stock  that  is investment capital as defined in paragraph (a) of
subdivision [4] FOUR of section 11-652 of this subchapter shall not be a
qualified financial instrument, AND  (IV)  STOCK  THAT  GENERATES  OTHER
EXEMPT INCOME AS DEFINED IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS
SUBCHAPTER AND THAT IS NOT MARKED TO MARKET UNDER SECTION 475 OR SECTION
1256  OF  THE  INTERNAL  REVENUE  CODE  SHALL NOT CONSTITUTE A QUALIFIED
FINANCIAL INSTRUMENT WITH RESPECT TO THE INCOME FROM THAT STOCK THAT  IS
DESCRIBED IN SUCH SUBDIVISION FIVE-A.  If a corporation is included in a
combined  report, the definition of qualified financial instrument shall
be determined on a combined basis.

S. 6409--B                         21

  S 17. This act shall take effect immediately;  provided  however  that
sections  one,  two, three, four, five, six, seven and eight of this act
shall be deemed to have been in full force and effect on the  same  date
and in the same manner as part A of chapter 59 of the laws of 2014, took
effect,  and  sections  nine,  ten,  eleven, twelve, thirteen, fourteen,
fifteen and sixteen of this act shall be deemed to  have  been  in  full
force  and  effect  on the same date and in the same manner as part D of
chapter 60 of the laws of 2015, took effect.

                                SUBPART B

  Section 1. Paragraph (b) of subdivision 9 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:
  (b)  [Carryover.] REFUND. In no event shall the credit herein provided
for be allowed in an amount which will reduce the tax  payable  to  less
than  the  fixed  dollar  minimum  amount prescribed in paragraph (d) of
subdivision one of section two hundred ten of this article. If, however,
the amount of credit allowable under this subdivision  for  any  taxable
year,  including  any  credit  carried  over  from a prior 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 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. PROVIDED, HOWEVER, IN LIEU OF CARRYING OVER, TO THE  FOLLOWING
YEAR  OR  YEARS,  THE  UNUSED PORTION OF CREDITS ATTRIBUTABLE TO SPECIAL
ADDITIONAL MORTGAGE RECORDING TAX WITH RESPECT TO SUCH MORTGAGES,  WHICH
IS  DUE AND PAID IN ANY OF SUCH TAXABLE YEARS, THE TAXPAYER MAY ELECT TO
TREAT SUCH UNUSED PORTION AS AN OVERPAYMENT OF TAX  TO  BE  CREDITED  OR
REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER EXCEPT THAT NO INTEREST SHALL BE PAID ON SUCH
OVERPAYMENT.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.

                                SUBPART C

  Section 1. Paragraph (a) of subdivision 6 of section 208  of  the  tax
law,  as  amended  by  section  5 of part T of chapter 59 of the laws of
2015, is amended to read as follows:
  (a) (i) 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,  any  interest  deductions allowable in computing
entire net income which  are  directly  or  indirectly  attributable  to
investment  capital  or investment income, provided, however, that in no
case shall investment income exceed  entire  net  income.  (ii)  If  the
amount  of interest deductions subtracted under subparagraph (i) of this
paragraph exceeds investment income, the  excess  of  such  amount  over
investment  income  must  be  added  back to entire net income. (iii) If
FIFTY PERCENT OR MORE OF THE RECEIPTS, DIVIDENDS, INTEREST  INCOME,  NET
INTEREST  INCOME, NET INTEREST, NET INCOME AND NET GAIN IN THE DENOMINA-
TOR OF A TAXPAYER'S APPORTIONMENT FRACTION  ARE  FROM  TRANSACTIONS  AND
SOURCES  DESCRIBED  IN  SUBDIVISION FIVE OF SECTION TWO HUNDRED TEN-A OF
THIS ARTICLE AND the taxpayer's  investment  income  determined  without
regard  to  the interest deductions subtracted under subparagraph (i) of

S. 6409--B                         22

this paragraph comprises more  than  eight  percent  of  the  taxpayer's
entire  net  income, investment income determined without regard to such
interest deductions cannot exceed eight percent of the taxpayer's entire
net income.
  S 2. This act shall take effect immediately.

                                SUBPART D

  Section  1.  Subclause 1 of clause (B) of subparagraph (viii) of para-
graph (a) of subdivision 1 of section 210 of the tax law, is amended  by
adding three new items (V), (VI) and (VII) to read as follows:
  (V)  IN  LIEU  OF  THE  BASE  YEAR  BAP  DEFINED IN ITEM (III) OF THIS
SUBCLAUSE, A HISTORICAL LOSS COMPANY MAY ELECT TO COMPUTE ITS BASE  YEAR
BAP  BASED  ON  THE  AVERAGE  OF  THE  "BUSINESS ALLOCATION PERCENTAGES"
REPORTED ON ITS ANNUAL CORPORATE FRANCHISE TAX RETURNS THAT THE  HISTOR-
ICAL LOSS COMPANY FILED FOR THE TAXABLE YEARS DURING THE LOSS PERIOD.
  (VI) "HISTORICAL LOSS COMPANY" MEANS A COMPANY THAT DID NOT PAY CORPO-
RATE  FRANCHISE  TAX ON AN ENTIRE NET INCOME BASIS FOR ITS TAXABLE YEARS
DURING THE LOSS PERIOD AND EITHER REALIZED A LOSS IN EACH  SUCH  TAXABLE
YEAR  OR  CARRIED FORWARD A PRIOR LOSS FROM A TAXABLE YEAR ENDING BEFORE
SUCH LOSS PERIOD TO OFFSET SUCH ENTIRE NET INCOME, SUCH THAT THE COMPANY
WOULD BE IN AN HISTORICAL LOSS POSITION DURING THE LOSS PERIOD.
  (VII) "LOSS PERIOD" MEANS THE PERIOD COMMENCING WITH THE TAXABLE  YEAR
BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND, AND ENDING WITH THE
LAST TAXABLE YEAR THAT INCLUDES OR ENDS ON  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND FOURTEEN.
  S 2. This act shall take effect immediately.

                                SUBPART E

  Section  1. Paragraph (f) 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:
  (f) The commissioner shall determine the rate of tax for taxable years
beginning  on  or after January first, two thousand sixteen by adjusting
the rate for taxable years beginning on  or  after  January  first,  two
thousand  fifteen  and  before  January  first,  two thousand sixteen as
necessary to ensure that the receipts attributable to such surcharge, as
impacted by the chapter of the laws of two thousand fourteen which added
this paragraph, will meet and not exceed the financial  projections  for
state  fiscal  year  two  thousand  sixteen-two  thousand  seventeen, as
reflected in state fiscal year two thousand fifteen-two thousand sixteen
enacted budget. The commissioner shall annually determine the rate ther-
eafter using the financial projections for the state  fiscal  year  that
commences  in  the  year for which the rate is to be set as reflected in
the enacted budget for the fiscal year commencing on the previous  April
first.  PROVIDED HOWEVER, NO INCREASE IN THE RATE SHALL OCCUR IN TAXABLE
YEARS BEGINNING AFTER TWO THOUSAND SIXTEEN.
  S 2. This act shall take effect immediately.

                                SUBPART F

  Section 1. Subparagraph 2  of  paragraph  (b)  of  subdivision  43  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:

S. 6409--B                         23

  (2) 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 prop-
erty 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. IN THE CASE OF A TAXPAYER THAT, DURING THE TAXABLE  YEAR,  IS
PRINCIPALLY  ENGAGED IN THE PRODUCTION OF GOODS BY FARMING, AGRICULTURE,
HORTICULTURE, FLORICULTURE,  VITICULTURE,  OR  COMMERCIAL  FISHING,  THE
TAXPAYER IS ELIGIBLE IF THE TAXPAYER SATISFIES THE CONDITIONS STIPULATED
IN  THIS  SUBDIVISION  AND THE TAXPAYER LEASES SUCH REAL PROPERTY FROM A
RELATED OR UNRELATED PARTY.
  S 2. This act shall take effect immediately.

                                SUBPART G

  Section 1. Item (III) of subclause (ii) of clause (B) of  subparagraph
1  of  paragraph  (r) of subdivision 9 of section 208 of the tax law, as
amended by section 6 of part T of chapter 59 of the  laws  of  2015,  is
amended to read as follows:
  (III)  Tangible  real  and personal property, such as buildings, land,
machinery, and equipment shall be valued at cost. Leased assets NOTWITH-
STANDING WHETHER THE UNDERLYING LEASE IS INCLUDED ON THE  BALANCE  SHEET
AS  PROVIDED  IN  ITEM  (II)  will be valued at the annual lease payment
multiplied by eight. Intangible property, such as loans and investments,
shall be valued at book value exclusive of reserves.
  S 2. This act shall take effect immediately.
  S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or subpart 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 subpart thereof directly involved in the controversy  in  which  such
judgment  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 G of this act  shall
be as specifically set forth in the last section of such Subparts.

                                 PART Q

  Section  1.  Subdivision 5 of section 183-a of the tax law, as amended
by section 61 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
  5. The report covering the tax  surcharge  which  must  be  calculated
pursuant to this section based upon the tax reportable on the report due
by March fifteenth of any year under section one hundred eighty-three of
this  article,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO
THOUSAND SIXTEEN, AND ON THE REPORT DUE BY APRIL FIFTEENTH OF  ANY  YEAR

S. 6409--B                         24

UNDER  SECTION  ONE  HUNDRED  EIGHTY-THREE  OF THIS ARTICLE, FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND  SIXTEEN,  shall
be  filed  on or before March fifteenth of the year next succeeding such
year,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH OF THE  YEAR  NEXT  SUCCEEDING
SUCH  YEAR,  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND SIXTEEN.  An extension pursuant to section one hundred  ninety-
three of this article shall be allowed only if a taxpayer files with the
commissioner  an  application for extension in such form as said commis-
sioner may prescribe by regulation and pays on or  before  the  date  of
such  filing  in addition to any other amounts required under this arti-
cle, either ninety percent of the entire tax surcharge  required  to  be
paid  under this section for the applicable period, or not less than the
tax surcharge shown on the taxpayer's report for the preceding year,  if
such  preceding  year  consisted  of  twelve  months.  The tax surcharge
imposed by this section shall be payable to the commissioner in full  at
the  time  the report is required to be filed, and such tax surcharge or
the balance thereof, imposed on any taxpayer which  ceases  to  exercise
its franchise or be subject to the tax surcharge imposed by this section
shall  be payable to the commissioner at the time the report is required
to be filed, provided such tax surcharge of a domestic corporation which
continues to possess its franchise shall be subject to adjustment as the
circumstances may require; all other tax surcharges of any such  taxpay-
er,  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. All of the
provisions of this article presently applicable to section  one  hundred
eighty-three of this article are applicable to the tax surcharge imposed
by  this section except for section one hundred ninety-two of this arti-
cle.
  S 2. Subdivision 4 of section 186-a of the  tax  law,  as  amended  by
chapter 536 of the laws of 1998, is amended to read as follows:
  4.  Every  utility  subject  to tax hereunder shall file, on or before
March fifteenth of each year, a return for the year ended on the preced-
ing December thirty-first,  FOR TAXABLE YEARS BEGINNING  BEFORE  JANUARY
FIRST,  TWO  THOUSAND  SIXTEEN,  except  that the year ended on December
thirty-first, nineteen hundred seventy-six  shall  be  deemed,  for  the
purposes  of this subdivision, to have commenced on June first, nineteen
hundred seventy-six, AND SHALL FILE, ON OR  BEFORE  APRIL  FIFTEENTH  OF
EACH  YEAR,  A RETURN FOR THE YEAR ENDED ON THE PRECEDING DECEMBER THIR-
TY-FIRST, FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO
THOUSAND  SIXTEEN, including any period for which the tax imposed hereby
or by any amendment hereof is effective, each  of  which  returns  shall
state  the gross income or gross operating income for the period covered
by each such return. Returns shall be filed  with  the  commissioner  of
taxation  and  finance on a form to be furnished by the commissioner for
such purpose and shall contain such other data, information or matter as
the commissioner may require to be included therein. Notwithstanding the
foregoing provisions of this subdivision, the commissioner  may  require
any utility to file an annual return, which shall contain any data spec-
ified  by the commissioner, regardless of whether the utility is subject
to tax under this section; and the commissioner may require  a  landlord
selling  to  a  tenant  gas,  electric, steam, water or refrigeration or
furnishing gas, electric, steam, water or  refrigerator  service,  where
the  same  has  been  subjected to tax under this section on the sale to
such landlord, to file, on or before the fifteenth day of March of  each

S. 6409--B                         25

year,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF APRIL OF EACH  YEAR,  FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN,
an information return for the year ended on the preceding December thir-
ty-first,  covering  such  year in such form and containing such data as
the commissioner may specify. Every return shall have annexed thereto  a
certification  by  the  head  of  the utility making the same, or of the
owner or of a co-partner thereof, or  of  a  principal  officer  of  the
corporation,  if  such  business  be  conducted by a corporation, to the
effect that the statements contained therein are true.
  S 3. Subdivision 6 of section 186-e of the tax law, as added by  chap-
ter 2 of the laws of 1995, is amended to read as follows:
  6.  Returns.  Every  provider of telecommunication services subject to
tax under this section shall file, on or before March fifteenth of  each
year,  FOR  TAXABLE  YEARS  BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND
SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH  OF  EACH  YEAR,  FOR  TAXABLE
YEARS  BEGINNING  ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND SIXTEEN, a
return for the year ended on the preceding  December  thirty-first,  and
pay  the  tax  due,  which return shall state the gross receipts for the
period covered by each such return and the resale exclusions during such
period. Returns shall be filed with the commissioner on  a  form  to  be
furnished  by  the  commissioner for such purpose and shall contain such
other data, information or matter as the commissioner may require to  be
included  therein.  Notwithstanding  the  foregoing  provisions  of this
subdivision, the commissioner may require any provider  of  telecommuni-
cation  services  to file an annual return, which shall contain any data
specified by the commissioner, regardless of whether  such  provider  is
subject to tax under this section. Every return shall have annexed ther-
eto  a  certification  by  the head of the provider of telecommunication
services making the same, or of the owner or  of  a  partner  or  member
thereof,  or of a principal officer of the corporation, if such business
be conducted by  a  corporation,  to  the  effect  that  the  statements
contained therein are true.
  S  4. Subdivision 1 of section 192 of the tax law, as amended by chap-
ter 96 of the laws of 1976, is amended to read as follows:
  1. Corporations paying franchise tax. Every  corporation,  association
or  joint-stock  company  liable  to pay a tax under section one hundred
eighty-three or one hundred eighty-five of this  chapter  shall,  on  or
before  March fifteenth in each year, FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE APRIL FIFTEENTH IN
EACH YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO
THOUSAND  SIXTEEN, make a written report to the [tax commission] COMMIS-
SIONER of its condition at the close of its business  on  the  preceding
December  thirty-first,  stating  the  amount  of its authorized capital
stock, the amount of stock paid in, the date and rate per centum of each
dividend paid by it during the year ending with  such  day,  the  entire
amount  of  the capital of such corporation, and the capital employed by
it in this state during such year.
  S 5. Subdivision 1 of section 192  of  the  tax  law,  as  amended  by
section  26  of  part S of chapter 59 of the laws of 2014, is amended to
read as follows:
  1. Corporations paying franchise tax. Every  corporation,  association
or  joint-stock  company  liable  to pay a tax under section one hundred
eighty-three of this chapter shall, on or before March fifteenth in each
year, FOR TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN,  AND  ON  OR  BEFORE  APRIL FIFTEENTH IN EACH YEAR, FOR TAXABLE

S. 6409--B                         26

YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, make  a
written  report to the [tax commission] COMMISSIONER of its condition at
the close of its business on the preceding December thirty-first,  stat-
ing the amount of its authorized capital stock, the amount of stock paid
in,  the date and rate per centum of each dividend paid by it during the
year ending with such day, the entire amount  of  the  capital  of  such
corporation,  and  the  capital employed by it in this state during such
year.
  S 6. Subdivision 2 of section 192 of the tax law, as amended by  chap-
ter 96 of the laws of 1976, is amended to read as follows:
  2.  Transportation and transmission corporations. Every transportation
or transmission corporation, joint-stock company or  association  liable
to pay an additional franchise tax under section one hundred eighty-four
of  this chapter, shall also, on or before March fifteenth of each year,
make a written report to the [tax commission] COMMISSIONER of the amount
of its gross earnings subject to the tax imposed by said section for the
year ended on the preceding December  thirty-first,  FOR  TAXABLE  YEARS
BEGINNING  BEFORE  JANUARY  FIRST, TWO THOUSAND SIXTEEN, except that the
year ended on December thirty-first, nineteen hundred seventy-six  shall
be  deemed,  for  the purposes of this subdivision, to have commenced on
July first, nineteen hundred seventy-six, AND SHALL ALSO, ON  OR  BEFORE
APRIL  FIFTEENTH OF EACH YEAR, MAKE A WRITTEN REPORT TO THE COMMISSIONER
OF THE AMOUNT OF ITS GROSS EARNINGS SUBJECT TO THE TAX IMPOSED  BY  SAID
SECTION  FOR  THE YEAR ENDED ON THE PRECEDING DECEMBER THIRTY-FIRST, FOR
TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
Any such corporation, joint-stock company or association which ceases to
be subject to the tax imposed by section one hundred eighty-four of this
chapter by reason of a liquidation, dissolution, merger or consolidation
with any other corporation, or any other cause, shall, on  the  date  of
such cessation or at such other time as the [tax commission] COMMISSION-
ER  may  require,  make a written report to the [tax commission] COMMIS-
SIONER of the amount of its gross earnings subject to the tax imposed by
section one hundred eighty-four of this chapter for any period for which
no report was theretofore filed. Any corporation, joint-stock company or
association subject to a tax  upon  dividends  under  said  section  one
hundred  eighty-four  of  this  chapter shall also include in its report
under this subdivision required to be filed a statement of  the  author-
ized capital of the company, the amount of capital stock issued, and the
amount  of  dividends  of every nature paid during the year ended on the
preceding December thirty-first. As to tax payers subject  to  such  tax
upon  dividends under said section one hundred eighty-four of this chap-
ter, the year ended on December thirty-first, nineteen hundred  seventy-
six  shall  be  deemed,  for  the  purposes of this subdivision, to have
commenced on July first, nineteen hundred seventy-six.
  S 7. Intentionally omitted.
  S 8. Paragraph (a) of subdivision 1 of section 209 of the tax law,  as
amended  by  section  5  of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
  (a) For the privilege of exercising its  corporate  franchise,  or  of
doing business, or of employing capital, or of owning or leasing proper-
ty in this state in a corporate or organized capacity, or of maintaining
an  office  in this state, or of deriving receipts from activity in this
state, for all or any part of each of  its  fiscal  or  calendar  years,
every  domestic or foreign corporation, except corporations specified in
subdivision four of this section, shall annually pay  a  franchise  tax,
upon  the basis of its business income base, or upon such other basis as

S. 6409--B                         27

may be applicable as hereinafter provided, for such fiscal  or  calendar
year  or part thereof, on a report which shall be filed, except as here-
inafter provided, on or before the fifteenth day of March next  succeed-
ing  the  close  of  each  such year, FOR TAXABLE YEARS BEGINNING BEFORE
JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH  DAY
OF  APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH YEAR, FOR TAXABLE YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN,  or,  in  the
case of a corporation which reports on the basis of a fiscal year, with-
in  two  and  one-half  months  after the close of such fiscal year, FOR
TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN,  AND
ON  OR  BEFORE  THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF
SUCH FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND SIXTEEN, and shall be paid as hereinafter provided.
  S 9. Subdivision 1 of section 211 of the tax law, as amended by  chap-
ter 436 of the laws of 1974, the opening paragraph as amended by chapter
190 of the laws of 1990 and the second undesignated paragraph as amended
by chapter 542 of the laws of 1985, is amended to read as follows:
  1.  Every  taxpayer[,  as  well as every foreign corporation having an
employee, including any officer, within the state,] shall annually on or
before March fifteenth,  FOR  TAXABLE  YEARS  BEGINNING  BEFORE  JANUARY
FIRST,  TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR BEFORE APRIL FIFTEENTH,
FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN,  transmit  to  the  [tax commission] COMMISSIONER a report in a
form prescribed by [it] THE  COMMISSIONER  (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,  FOR
TAXABLE  YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND
ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER  THE  CLOSE  OF
ITS  FISCAL YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
TWO THOUSAND SIXTEEN, and except, also, that a corporation  which  is  a
DISC  shall  transmit  its  report on or before the fifteenth day of the
ninth month following the close of its calendar or fiscal year), setting
forth  such  information  as  the  [tax  commission]  COMMISSIONER   may
prescribe  and  every taxpayer which ceases to exercise its franchise or
to be subject to the tax imposed by this article shall transmit  to  the
[tax  commission] COMMISSIONER a report on the date of such cessation or
at such other time as the  [tax  commission]  COMMISSIONER  may  require
covering  each year or period for which no report was theretofore filed.
In the case of a termination year of an S corporation, the S short  year
and  the  C short year shall be treated as separate short taxable years,
provided, however, the due date of the report for the S short year shall
be the same as the due date of the report for the C  short  year.  Every
taxpayer  shall  also  transmit  such  other  reports and such facts and
information as the [tax commission]  COMMISSIONER  may  require  in  the
administration  of  this article.  The [tax commission] COMMISSIONER 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
the  preceding  paragraph, such taxpayer files with the [tax commission]
COMMISSIONER an application for extension in such form as [said  commis-
sion] THE COMMISSIONER may prescribe by regulation and pays on or before
the date of such filing the amount properly estimated as its tax.
  S 10. Intentionally omitted.
  S 11. Intentionally omitted.

S. 6409--B                         28

  S  12. Paragraph 1 of subsection (c) of section 658 of the tax law, as
amended by chapter 760 of the laws  of  1992,  is  amended  to  read  as
follows:
  (1)  Partnerships.  Every  partnership  having  a  resident partner or
having any income derived from New York sources, determined  in  accord-
ance  with  the applicable rules of section six hundred thirty-one as in
the case of a nonresident individual, shall make a return for the  taxa-
ble year setting forth all items of income, gain, loss and deduction and
such  other pertinent information as the commissioner may by regulations
and instructions prescribe. Such return shall be filed on or before  the
fifteenth  day  of  the fourth month following the close of each taxable
year, FOR TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND
SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING
THE  CLOSE OF EACH TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND SIXTEEN, except that the due  date  for  the
return  of a partnership consisting entirely of nonresident aliens shall
be the date prescribed for the filing of its federal partnership  return
for  the  taxable  year.  For purposes of this paragraph, "taxable year"
means a year or a period which would be a taxable year of  the  partner-
ship if it were subject to tax under this article.
  S 13. Subparagraph (A) of paragraph 3 of subsection (c) of section 658
of  the tax law, as amended by section 18 of part U of chapter 61 of the
laws of 2011, is amended to read as follows:
  (A) Every  subchapter  K  limited  liability  company,  every  limited
liability  company  that  is a disregarded entity for federal income tax
purposes, and every partnership which has any income  derived  from  New
York  sources,  determined  in  accordance  with the applicable rules of
section six hundred thirty-one of this article  as  in  the  case  of  a
nonresident  individual, shall[, within sixty days after the last day of
the taxable year,] ON OR BEFORE THE FIFTEENTH DAY  OF  THE  THIRD  MONTH
FOLLOWING THE CLOSE OF EACH TAXABLE YEAR make a payment of a filing fee.
The amount of the filing fee is the amount set forth in subparagraph (B)
of  this  paragraph.  The  minimum filing fee is twenty-five dollars for
taxable years beginning in two thousand eight  and  thereafter.  Limited
liability companies that are disregarded entities for federal income tax
purposes  must pay a filing fee of twenty-five dollars for taxable years
beginning on or after January first, two thousand eight.
  S 14. Subsection (i) of section 1087 of the tax law, as added by chap-
ter 188 of the laws of 1964, is amended to read as follows:
  (i) 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 article nine-a, [nine-b or nine-c,] or on  the  last
day prescribed in article nine for the filing of a final return for such
taxable year, or portion thereof, determined in all cases without regard
to  any extension of time granted the taxpayer, FOR TAXABLE YEARS BEGIN-
NING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND  ON  THE  FIFTEENTH
DAY  OF  THE  FOURTH  MONTH  FOLLOWING THE CLOSE OF THE TAXABLE YEAR THE
INCOME OF WHICH IS THE BASIS FOR TAX UNDER ARTICLE  NINE-A,  OR  ON  THE
LAST DAY PRESCRIBED IN ARTICLE NINE FOR THE FILING OF A FINAL RETURN FOR
SUCH  TAXABLE  YEAR, OR PORTION THEREOF, DETERMINED IN ALL CASES WITHOUT
REGARD TO ANY EXTENSION OF TIME GRANTED THE TAXPAYER, FOR TAXABLE  YEARS
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
  S 15. Intentionally omitted.

S. 6409--B                         29

  S 16. Intentionally omitted.
  S  17.  Subdivision  (a)  of  section 1515 of the tax law, as added by
section 649 of the laws of 1974 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  (a) Every taxpayer and every other foreign and alien insurance  corpo-
ration  having  an  employee,  including  any  officer, in this state or
having an agent or representative in this state, shall annually,  on  or
before  the  fifteenth day of the third month following the close of its
taxable year, FOR TAXABLE YEARS  BEGINNING  BEFORE  JANUARY  FIRST,  TWO
THOUSAND SIXTEEN, AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH
FOLLOWING  THE CLOSE OF ITS TAXABLE YEAR, FOR TAXABLE YEARS BEGINNING ON
OR AFTER JANUARY FIRST, TWO  THOUSAND  SIXTEEN,  transmit  to  the  [tax
commission]  COMMISSIONER  a  return  in  a  form prescribed by [it] THE
COMMISSIONER setting forth such  information  as  the  [tax  commission]
COMMISSIONER  may  prescribe and every taxpayer which ceases to exercise
its franchise or to be subject to the tax imposed by this article  shall
transmit  to  the  [tax commission] COMMISSIONER a return on the date of
such cessation or at such other time as the [tax commission] COMMISSION-
ER may require covering each year or period  for  which  no  return  was
theretofore filed. A copy of each return required under this subdivision
shall also be transmitted to the superintendent of financial services at
or  before  the  times  specified  for filing such returns with the [tax
commission] COMMISSIONER.
  S 18. Subdivisions (a) and (b) of section 11-514 of the administrative
code of the city of New York, subdivision (a) as amended by chapter  183
of the laws of 2009, are amended to read as follows:
  (a)  General.  [On  or  before  the  fifteenth day of the fourth month
following the close of a taxable year, an]  AN  unincorporated  business
income  tax  return  shall be made and filed, and the balance of any tax
shown on the face of such return, not previously paid as installments of
estimated tax, shall be paid, ON OR BEFORE  THE  FIFTEENTH  DAY  OF  THE
FOURTH  MONTH  FOLLOWING  THE  CLOSE OF A TAXABLE YEAR FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ON  OR  BEFORE
THE  FIFTEENTH  DAY  OF THE THIRD MONTH FOLLOWING THE CLOSE OF A TAXABLE
YEAR FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
SIXTEEN:
  (1) by or for every unincorporated business, for taxable years  begin-
ning after nineteen hundred eighty-six but before nineteen hundred nine-
ty-seven,  having  unincorporated  business gross income, determined for
purposes of this subdivision without any deduction for the cost of goods
sold or services performed, of more than ten thousand dollars, or having
any amount of unincorporated business taxable income;
  (2) by or for every partnership, for  taxable  years  beginning  after
nineteen  hundred  ninety-six but before two thousand nine, having unin-
corporated business gross income, determined for purposes of this subdi-
vision without any deduction for the cost  of  goods  sold  or  services
performed, of more than twenty-five thousand dollars, or having unincor-
porated business taxable income of more than fifteen thousand dollars;
  (3)  by or for every unincorporated business other than a partnership,
for taxable years beginning after nineteen hundred ninety-six but before
two thousand nine, having unincorporated business gross  income,  deter-
mined  for  purposes  of  this subdivision without any deduction for the
cost of goods sold or services  performed,  of  more  than  seventy-five
thousand  dollars,  or  having unincorporated business taxable income of
more than thirty-five thousand dollars; and

S. 6409--B                         30

  (4) by or for every unincorporated business, for taxable years  begin-
ning  after  two  thousand  eight,  having unincorporated business gross
income,  determined  for  purposes  of  this  subdivision  without   any
deduction for the cost of goods sold or services performed, of more than
ninety-five thousand dollars.
  (b)  Decedents.  The  return for any deceased individual shall be made
and filed by his or her executor, administrator, or other person charged
with his or her property. If a final return of a decedent is for a frac-
tional part of a year, the due date of such return shall be, FOR TAXABLE
YEARS  BEGINNING  BEFORE  JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,   the
fifteenth  day  of  the  fourth month following the close of the twelve-
month period [which] THAT began with the first day  of  such  fractional
part  of  the year, AND, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND SIXTEEN,  THE  FIFTEENTH  DAY  OF  THE  THIRD  MONTH
FOLLOWING THE CLOSE OF THE TWELVE-MONTH PERIOD THAT BEGAN WITH THE FIRST
DAY OF SUCH FRACTIONAL PART OF THE YEAR.
  S  19. Subdivision (i) of section 11-527 of the administrative code of
the city of New York is amended to read as follows:
  (i) Prepaid tax. For purposes of this section, any  tax  paid  by  the
taxpayer  before  the last day prescribed for its payment and any amount
paid by the taxpayer as estimated tax for a taxable year shall be deemed
to have been paid by the taxpayer, FOR TAXABLE  YEARS  BEGINNING  BEFORE
JANUARY  FIRST, TWO THOUSAND SIXTEEN, on the fifteenth day of the fourth
month following the close of his or her taxable  year  with  respect  to
which  such  amount  constitutes  a  credit or payment, AND, FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, ON  THE
FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF HIS OR HER TAXA-
BLE  YEAR  WITH  RESPECT  TO  WHICH  SUCH AMOUNT CONSTITUTES A CREDIT OR
PAYMENT.
  S 20. Paragraph (a) of subdivision 1 of section 11-653 of the adminis-
trative code of the city of New York, as added by section 1 of part D of
chapter 60 of the laws of 2015, is amended to read as follows:
  (a) For the privilege of doing business, or of employing  capital,  or
of  owning  or  leasing property in the city in a corporate or organized
capacity, or of maintaining an office 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 subdivision 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] THAT shall be filed, except as hereinafter provided, FOR TAXABLE
YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, on or before
the fifteenth day of March next succeeding the close of each such CALEN-
DAR year, or, in the case of a taxpayer  [which]  THAT  reports  on  the
basis  of  a fiscal year, within two and one-half months after the close
of EACH such fiscal year, AND FOR TAXABLE YEARS BEGINNING  ON  OR  AFTER
JANUARY  FIRST,  TWO THOUSAND SIXTEEN, ON OR BEFORE THE FIFTEENTH DAY OF
APRIL NEXT SUCCEEDING THE CLOSE OF EACH SUCH CALENDAR YEAR, OR,  IN  THE
CASE  OF  A  TAXPAYER THAT REPORTS ON THE BASIS OF A FISCAL YEAR, WITHIN
THREE AND ONE-HALF MONTHS AFTER THE CLOSE OF EACH SUCH FISCAL YEAR,  and
shall be paid as hereinafter provided.
  S  21.  Subdivision  1 of section 11-655 of the administrative code of
the city of New York, as added by section 1 of part D of chapter  60  of
the laws of 2015, is amended to read as follows:
  1. Every corporation having an officer, agent or representative within
the city, shall, annually on or before March fifteenth FOR TAXABLE YEARS

S. 6409--B                         31

BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND SIXTEEN, AND ANNUALLY ON OR
BEFORE  APRIL  FIFTEENTH FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
FIRST, TWO THOUSAND SIXTEEN, 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]  EXCEPT  THAT  A  CORPORATION  THAT
REPORTS  ON  THE  BASIS OF A FISCAL YEAR SHALL TRANSMIT SUCH REPORT, FOR
TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND  SIXTEEN,
WITHIN  TWO AND ONE-HALF MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR, AND,
FOR TAXABLE YEARS BEGINNING AFTER JANUARY FIRST, TWO  THOUSAND  SIXTEEN,
WITHIN  THREE  AND  ONE-HALF  MONTHS AFTER THE CLOSE OF ITS FISCAL YEAR.
EVERY taxpayer [which] THAT 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
the preceding paragraph, 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.
  S 22. Intentionally omitted.
  S 23. Intentionally omitted.
  S  24.  This act shall take effect immediately provided, however, that
section five of this act shall take effect on the same date and  in  the
same  manner  as section 26 of part S of chapter 59 of the laws of 2014,
takes effect, and that section five of this act shall apply  to  taxable
years beginning on or after January 1, 2018 and that section thirteen of
this  act  shall apply to taxable years beginning on or after January 1,
2016.

                                 PART R

  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;

S. 6409--B                         32

  (B)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND SEVENTEEN, IF THE BUSINESS  INCOME  BASE  IS  NOT  MORE  THAN  FOUR
HUNDRED  THOUSAND  DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE BUSI-
NESS INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN FOUR  HUNDRED
THOUSAND  DOLLARS  BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS THE AMOUNT
SHALL BE THE SUM OF (1) SIXTEEN THOUSAND DOLLARS, (2) SIX  AND  ONE-HALF
PERCENT  OF  THE  EXCESS  OF  THE BUSINESS INCOME BASE OVER FOUR HUNDRED
THOUSAND DOLLARS BUT NOT OVER FIVE  HUNDRED  THOUSAND  DOLLARS  AND  (3)
TWENTY  PERCENT  OF  THE  EXCESS  OF  THE BUSINESS INCOME BASE OVER FOUR
HUNDRED FIFTY THOUSAND  DOLLARS  BUT  NOT  OVER  FIVE  HUNDRED  THOUSAND
DOLLARS;
  (C)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND EIGHTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN FOUR HUNDRED
THOUSAND DOLLARS THE AMOUNT SHALL BE TWO AND  ONE-HALF  PERCENT  OF  THE
BUSINESS  INCOME  BASE;  IF  THE  BUSINESS INCOME BASE IS MORE THAN FOUR
HUNDRED THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS  THE
AMOUNT  SHALL  BE  THE  SUM  OF  (1)  TEN  THOUSAND DOLLARS, (2) SIX AND
ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS  INCOME  BASE  OVER  FOUR
HUNDRED  THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS AND
(3) THIRTY-TWO PERCENT OF THE EXCESS OF THE BUSINESS  INCOME  BASE  OVER
FOUR  HUNDRED  FIFTY THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND
DOLLARS.
  S 2. Paragraph 39 of subsection (c) of section 612 of the tax law,  as
added  by  section  1  of  part  Y of chapter 59 of the laws of 2013, is
amended to read as follows:
  (39) (A) In the case of a taxpayer  who  is  a  small  business  OR  A
TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
SMALL BUSINESS, who OR WHICH has business income [and/or farm income] as
defined  in  the  laws  of the United States, an amount equal to [three]
FIVE percent of the net  items  of  income,  gain,  loss  and  deduction
attributable  to  such business [or farm] entering into federal adjusted
gross income, but not less than zero, for taxable years beginning  after
two  thousand  [thirteen]  SIXTEEN, an amount equal to [three and three-
quarters] TEN percent of  the  net  items  of  income,  gain,  loss  and
deduction  attributable to such business [or farm] entering into federal
adjusted gross income, but not less than zero, for taxable years  begin-
ning  after  two  thousand  [fourteen] SEVENTEEN, and an amount equal to
[five] FIFTEEN percent of the  net  items  of  income,  gain,  loss  and
deduction  attributable to such business [or farm] entering into federal
adjusted gross income, but not less than zero[, for taxable years begin-
ning after two thousand fifteen].
  (B) IN THE CASE OF A TAXPAYER WHO IS A FARM BUSINESS OR A TAXPAYER WHO
IS A MEMBER, PARTNER, OR SHAREHOLDER OF  A  LIMITED  LIABILITY  COMPANY,
PARTNERSHIP,  OR  NEW  YORK  S CORPORATION, RESPECTIVELY, THAT IS A FARM
BUSINESS, WHO OR WHICH HAS FARM INCOME AS DEFINED BY  THE  LAWS  OF  THE
UNITED  STATES,  AN  AMOUNT  EQUAL TO TWENTY PERCENT OF THE NET ITEMS OF
INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE TO  SUCH  FARM.  THE  TERM
FARM  BUSINESS  SHALL  MEAN  A FARM BUSINESS THAT HAS NET FARM INCOME OF
LESS THAN FIVE HUNDRED THOUSAND DOLLARS.
  (C) (I) For the purposes of this paragraph, the  term  small  business
shall mean: (I) a sole proprietor [or a farm business who employs one or
more  persons  during  the taxable year and] who has net business income
[or net farm income] of less than [two hundred fifty] FIVE HUNDRED thou-
sand dollars; OR (II) A LIMITED LIABILITY COMPANY,  PARTNERSHIP  OR  NEW
YORK S CORPORATION THAT DURING THE TAXABLE YEAR HAS NEW YORK GROSS BUSI-

S. 6409--B                         33

NESS  INCOME  ATTRIBUTABLE  TO  A NON-FARM BUSINESS THAT IS GREATER THAN
ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM
INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS  GREATER  THAN  ZERO  BUT
LESS THAN FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARA-
GRAPH,  THE  TERM  NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE
CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP,  NEW  YORK  SOURCE
GROSS  INCOME  AS  DEFINED  IN  SUBPARAGRAPH  (B)  OF PARAGRAPH THREE OF
SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE,  AND,
(II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED
IN  THE  NUMERATOR  OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION
TWO HUNDRED TEN-A OF ARTICLE NINE-A OF  THIS  CHAPTER  FOR  THE  TAXABLE
YEAR.
  (D)  TO  QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL
BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK  S
CORPORATION,  THE  TAXPAYER'S  INCOME  ATTRIBUTABLE  TO THE NET BUSINESS
INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST  BE  LESS  THAN  FIVE
HUNDRED THOUSAND DOLLARS.
  S  3. Paragraph 35 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  Y
of chapter 59 of the laws of 2013, is amended to read as follows:
  (35)  (A)  In  the  case  of  a  taxpayer who is a small business OR A
TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
SMALL BUSINESS, who OR WHICH has business income [and/or farm income] as
defined in the laws of the United States, an  amount  equal  to  [three]
FIFTEEN  percent  of  the  net items of income, gain, loss and deduction
attributable to such business [or farm] entering into  federal  adjusted
gross income, but not less than zero[, for taxable years beginning after
two  thousand  thirteen,  an  amount  equal  to three and three-quarters
percent of the net items of income, gain, loss and  deduction  attribut-
able  to  such  business  or  farm  entering into federal adjusted gross
income, but not less than zero, for taxable years  beginning  after  two
thousand  fourteen, and an amount equal to five percent of the net items
of income, gain, loss and deduction attributable  to  such  business  or
farm  entering  into  federal  adjusted  gross income, but not less than
zero, for taxable years beginning after two thousand fifteen].
  (B) IN THE CASE OF A TAXPAYER WHO IS A FARM BUSINESS OR A TAXPAYER WHO
IS A MEMBER, PARTNER, OR SHAREHOLDER OF  A  LIMITED  LIABILITY  COMPANY,
PARTNERSHIP,  OR  NEW  YORK  S CORPORATION, RESPECTIVELY, THAT IS A FARM
BUSINESS, WHO OR WHICH HAS FARM INCOME AS DEFINED BY  THE  LAWS  OF  THE
UNITED  STATES,  AN  AMOUNT  EQUAL TO TWENTY PERCENT OF THE NET ITEMS OF
INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE TO  SUCH  FARM.  THE  TERM
FARM  BUSINESS  SHALL  MEAN  A FARM BUSINESS THAT HAS NET FARM INCOME OF
LESS THAN FIVE HUNDRED THOUSAND DOLLARS.
  (C) (I) For the purposes of this paragraph, the  term  small  business
shall mean: (I) a sole proprietor [or a farm business who employs one or
more  persons  during  the taxable year and] who has net business income
[or net farm income] of less than [two hundred fifty] FIVE HUNDRED thou-
sand dollars; OR (II) A LIMITED LIABILITY COMPANY,  PARTNERSHIP  OR  NEW
YORK S CORPORATION THAT DURING THE TAXABLE YEAR HAS NEW YORK GROSS BUSI-
NESS  INCOME  ATTRIBUTABLE  TO  A NON-FARM BUSINESS THAT IS GREATER THAN
ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM
INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS  GREATER  THAN  ZERO  BUT
LESS THAN FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARA-
GRAPH,  THE  TERM  NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE

S. 6409--B                         34

CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP,  NEW  YORK  SOURCE
GROSS  INCOME  AS  DEFINED  IN  SUBPARAGRAPH  (B)  OF PARAGRAPH THREE OF
SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THE TAX  LAW,  AND,
(II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED
IN  THE  NUMERATOR  OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION
TWO HUNDRED TEN-A OF THE TAX LAW FOR THE TAXABLE YEAR.
  (D) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A  NON-FARM  SMALL
BUSINESS  THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S
CORPORATION, THE TAXPAYER'S INCOME  ATTRIBUTABLE  TO  THE  NET  BUSINESS
INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
NIES,  PARTNERSHIPS  OR  NEW  YORK S CORPORATIONS MUST BE LESS THAN FIVE
HUNDRED THOUSAND DOLLARS.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.

                                 PART S

  Section 1. Short title. This act shall be known and may  be  cited  as
the "education investment incentives act".
  S  2.    The  tax law is amended by adding a new section 42 to read as
follows:
  S 42. EDUCATION INVESTMENT TAX  CREDIT.    (A)  DEFINITIONS.  FOR  THE
PURPOSES  OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME DEFI-
NITION AS PROVIDED FOR IN ARTICLE TWENTY-FIVE OF THE EDUCATION LAW:
  "AUTHORIZED CONTRIBUTION";
  "CONTRIBUTION";
  "EDUCATIONAL PROGRAM";
  "EDUCATIONAL SCHOLARSHIP ORGANIZATION";
  "ELIGIBLE PUPIL";
  "LOCAL EDUCATION FUND";
  "NONPUBLIC SCHOOL";
  "PUBLIC EDUCATION ENTITY";
  "PUBLIC SCHOOL";
  "QUALIFIED CONTRIBUTION";
  "QUALIFIED EDUCATOR";
  "QUALIFIED SCHOOL";
  "SCHOLARSHIP"; AND
  "SCHOOL IMPROVEMENT ORGANIZATION".
  (B) ALLOWANCE OF CREDIT. A  TAXPAYER  SUBJECT  TO  TAX  UNDER  ARTICLE
NINE-A  OR  TWENTY-TWO  OF  THIS CHAPTER SHALL BE ALLOWED CREDIT AGAINST
SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN  SUBDIVISION  (L)  OF
THIS  SECTION,  WITH  RESPECT TO QUALIFIED CONTRIBUTIONS MADE DURING THE
TAXABLE YEAR.
  (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE NINETY PERCENT
OF THE TAXPAYER'S TOTAL QUALIFIED CONTRIBUTIONS, CAPPED AT  ONE  MILLION
DOLLARS.    A  TAXPAYER  THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A
LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S  CORPORATION  SHALL  BE
ALLOWED TO CLAIM ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNER-
SHIP,  LIMITED  LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT SUCH A
TAXPAYER SHALL NOT CLAIM CREDIT IN EXCESS OF THE LIMIT  IMPOSED  BY  THE
PRECEDING SENTENCE.
  (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE.  THE COMMIS-
SIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE
AMOUNT  OF  AVAILABLE  CREDIT  FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO
THIS SECTION.  SUCH RUNNING TOTAL SHALL BE UPDATED  ON  A  DAILY  BASIS.
ADDITIONALLY,  THE  COMMISSIONER  SHALL  MAINTAIN  ON  THE  DEPARTMENT'S

S. 6409--B                         35

WEBSITE A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL  EDUCATION
FUNDS  AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE
CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
LAW.  THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A
LIST  OF  PUBLIC  EDUCATION  ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS,
LOCAL EDUCATION FUNDS AND EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  WHOSE
APPROVAL  TO  ISSUE  CERTIFICATES OF RECEIPT HAS BEEN REVOKED ALONG WITH
THE DATE OF REVOCATION.
  (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY,  SCHOOL  IMPROVEMENT
ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION,  THE  TAXPAYER  SHALL  APPLY  TO THE DEPARTMENT FOR A CONTRIBUTION
AUTHORIZATION CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION  SHALL
BE  IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.  THE DEPARTMENT
MAY ALLOW TAXPAYERS TO MAKE MULTIPLE  APPLICATIONS  ON  THE  SAME  FORM,
PROVIDED  THAT  EACH  CONTRIBUTION  LISTED  ON SUCH APPLICATION SHALL BE
TREATED AS A SEPARATE APPLICATION AND THAT THE  DEPARTMENT  SHALL  ISSUE
SEPARATE  CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH APPLICA-
TION.
  (F) CONTRIBUTION AUTHORIZATION CERTIFICATES. 1.   ISSUANCE OF  CERTIF-
ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
ICATES  IN  TWO  PHASES.  IN PHASE ONE, WHICH BEGINS ON THE FIRST DAY OF
JANUARY AND ENDS ON THE THIRTY-FIRST DAY OF  JANUARY,  THE  COMMISSIONER
SHALL  ACCEPT  APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES.
COMMENCING AFTER THE FIFTH DAY OF FEBRUARY, THE COMMISSIONER SHALL ISSUE
CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR
WHICH APPLICATIONS HAVE BEEN  RECEIVED  DURING  PHASE  ONE  EXCEEDS  THE
AMOUNT  OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, THEN PHASE
ONE OF THE CREDIT CAP APPLICATION SHALL BE ALLOCATED IN  TWO  STEPS.  IN
STEP ONE, THE ALLOCATION SHALL EQUAL THE CONTRIBUTION CAP DIVIDED BY THE
TOTAL  NUMBER  OF  APPLICATIONS  FOR  CONTRIBUTIONS, ROUNDED DOWN TO THE
NEAREST CENT. EACH APPLICATION REQUESTING AN AMOUNT WHICH IS  LESS  THAN
OR EQUAL TO THE ALLOCATION IN STEP ONE SHALL RECEIVE THE AMOUNT ON THEIR
APPLICATION FOR CONTRIBUTION AND THE DIFFERENCE, WHICH SHALL BE REFERRED
TO AS "EXCESS DISTRIBUTIONS" FOR THE PURPOSES OF THIS SUBDIVISION, SHALL
BE  AVAILABLE FOR ALLOCATION IN STEP TWO. EACH APPLICATION REQUESTING AN
AMOUNT WHICH EXCEEDS THE ALLOCATION IN STEP ONE SHALL BE ALLOCATED CRED-
ITS IN STEP TWO. IN STEP TWO, IF EXCESS DISTRIBUTIONS  EQUAL  ZERO  THEN
EACH  APPLICATION  SHALL  RECEIVE  THE  ALLOCATION AMOUNT FROM STEP ONE,
OTHERWISE EACH APPLICATION SHALL RECEIVE AN AMOUNT EQUAL TO THE  SUM  OF
THE  (I)  THE ALLOCATION AMOUNT IN STEP ONE AND (II) A PRO RATA SHARE OF
AGGREGATE EXCESS DISTRIBUTIONS  BASED  ON  THE  DIFFERENCE  BETWEEN  THE
AMOUNT  ON THEIR APPLICATION FOR CONTRIBUTION AND THE ALLOCATION IN STEP
ONE. FOR THE PURPOSES OF THIS SUBDIVISION, MULTIPLE APPLICATIONS BY  THE
SAME  TAXPAYER SHALL BE TREATED AS ONE APPLICATION. IF THE CREDIT CAP IS
NOT EXCEEDED, PHASE TWO COMMENCES ON  FEBRUARY  TWENTIETH  AND  ENDS  ON
OCTOBER  THIRTY-FIRST.  DURING  PHASE  TWO  THE COMMISSIONER SHALL ISSUE
CONTRIBUTION AUTHORIZATION CERTIFICATES  ON  A  FIRST-COME  FIRST  SERVE
BASIS  BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S APPLI-
CATION FOR SUCH CERTIFICATE.   CONTRIBUTION  AUTHORIZATION  CERTIFICATES
FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN
THE  TWENTIETH  DAY OF FEBRUARY. CONTRIBUTION AUTHORIZATION CERTIFICATES
FOR APPLICATIONS RECEIVED DURING PHASE TWO SHALL BE MAILED  WITHIN  FIVE
DAYS OF RECEIPT OF SUCH APPLICATIONS.

S. 6409--B                         36

  2.  CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH CONTRIBUTION
AUTHORIZATION CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE  WAS
ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE
CERTIFICATE  MUST BE MADE, WHICH SHALL BE NO LATER THAN DECEMBER THIRTY-
FIRST  OF  THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIFICATE
WAS ISSUED, (III)  THE  AMOUNT  OF  AUTHORIZED  CONTRIBUTION,  (IV)  THE
CERTIFICATE  NUMBER,  (V) THE TAXPAYER'S NAME AND ADDRESS, (VI) THE NAME
AND ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
TION, LOCAL EDUCATION FUND OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  TO
WHICH  THE  TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION, AND (VII) ANY
OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
  3. NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
CERTIFICATE.  UPON  THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIF-
ICATE TO A TAXPAYER, THE COMMISSIONER SHALL NOTIFY THE PUBLIC  EDUCATION
ENTITY,  SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION OF THE  ISSUANCE  OF  SUCH  CONTRIBUTION
AUTHORIZATION  CERTIFICATE.  SUCH  NOTIFICATION  SHALL  INCLUDE  (I) THE
TAXPAYER'S NAME AND ADDRESS, (II) THE DATE SUCH CERTIFICATE WAS  ISSUED,
(III)  THE  DATE  BY  WHICH  THE  AUTHORIZED  CONTRIBUTION LISTED IN THE
NOTIFICATION MUST BE MADE BY  THE  TAXPAYER,  (IV)  THE  AMOUNT  OF  THE
AUTHORIZED  CONTRIBUTION,  (V)  THE  CONTRIBUTION  AUTHORIZATION CERTIF-
ICATE'S CERTIFICATE NUMBER, AND (VI)  ANY  OTHER  INFORMATION  THAT  THE
COMMISSIONER DEEMS NECESSARY.
  (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION SHALL ISSUE A CERTIFICATE OF  RECEIPT  FOR  ANY
CONTRIBUTION  MADE  BY  A  TAXPAYER UNLESS SUCH PUBLIC EDUCATION ENTITY,
SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
SCHOLARSHIP  ORGANIZATION  HAS  BEEN  APPROVED  TO ISSUE CERTIFICATES OF
RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO  PUBLIC
EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
OR  EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  SHALL ISSUE A CERTIFICATE OF
RECEIPT FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC  EDUCA-
TION  ENTITY,  SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND, OR
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE
DEPARTMENT  THAT  THE  DEPARTMENT  ISSUED  A  CONTRIBUTION AUTHORIZATION
CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION.
  2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,  LOCAL
EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
CONTRIBUTION  AUTHORIZATION  CERTIFICATE ISSUED TO THE TAXPAYER NO LATER
THAN THE DATE BY WHICH SUCH AUTHORIZED CONTRIBUTION IS  REQUIRED  TO  BE
MADE,  SUCH  PUBLIC  EDUCATION  ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,
LOCAL EDUCATION FUND, OR  EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  SHALL,
WITHIN  THIRTY  DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION, ISSUE TO
THE TAXPAYER A CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER,  THAT  IF  THE
TAXPAYER  CONTRIBUTES  AN  AMOUNT THAT IS LESS THAN THE AMOUNT LISTED ON
THE TAXPAYER'S  CONTRIBUTION  AUTHORIZATION  CERTIFICATE,  THE  TAXPAYER
SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.
  3.  CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT SHALL
STATE (I) THE NAME AND ADDRESS OF THE ISSUING PUBLIC  EDUCATION  ENTITY,
SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
SCHOLARSHIP ORGANIZATION, (II) THE TAXPAYER'S NAME  AND  ADDRESS,  (III)
THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND
THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE

S. 6409--B                         37

TOTAL  AMOUNT  OF  CONTRIBUTIONS, (VI) CERTIFICATE OF RECEIPT NUMBER AND
(VII) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
  4. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF
RECEIPT.  UPON  THE  ISSUANCE  OF  A CERTIFICATE OF RECEIPT, THE ISSUING
PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,  LOCAL  EDUCA-
TION  FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY
DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT  WITH
NOTIFICATION  OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER
PRESCRIBED BY THE DEPARTMENT.
  5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL  IMPROVEMENT  ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
THIS  SECTION  REGARDING  THE  ISSUANCE  OF A CONTRIBUTION AUTHORIZATION
CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS  OF  THE  EXPIRATION
DATE  FOR  SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION TO THE
DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,
LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE
FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
  6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV-
ERY OF THE FAILURE OF ANY PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT
PROGRAM,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
TO COMPLY WITH THE NOTIFICATION REQUIREMENTS  PRESCRIBED  BY  PARAGRAPHS
FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE
OF  COMPLIANCE  FAILURE  TO SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION.
SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS  FROM
THE  DATE  OF  SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARA-
GRAPHS FOUR AND FIVE OF THIS SUBDIVISION. SUCH PERIOD  MAY  BE  EXTENDED
FOR  AN  ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM,
FUND, OR ORGANIZATION. UPON THE EXPIRATION OF PERIOD FOR COMPLIANCE  SET
FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL
NOTIFY  THE BOARD OF REGENTS AND THE COMMISSIONER OF EDUCATION THAT SUCH
ENTITY, PROGRAM, FUND, OR ORGANIZATION FAILED TO MAKE THE  NOTIFICATIONS
PRESCRIBED BY PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION.
  (H)  CREDIT  CAP.  THE  MAXIMUM  PERMITTED  CREDITS UNDER THIS SECTION
AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
TWO THOUSAND SEVENTEEN SHALL BE ONE HUNDRED FIFTY  MILLION  DOLLARS.  IN
CALENDAR YEAR TWO THOUSAND EIGHTEEN, THE MAXIMUM PERMITTED CREDITS UNDER
THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWENTY-FIVE
MILLION  DOLLARS  PLUS  ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE
CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  FOR CALENDAR YEAR  TWO
THOUSAND NINETEEN AND EACH CALENDAR YEAR THEREAFTER, THE MAXIMUM PERMIT-
TED  CREDITS  AVAILABLE  TO ALL TAXPAYERS SHALL BE THREE HUNDRED MILLION
DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE CAP PURSU-
ANT TO SUBDIVISION (I) OF THIS SECTION.  THE MAXIMUM  PERMITTED  CREDITS
UNDER  THIS SECTION FOR QUALIFIED CONTRIBUTIONS SHALL BE ALLOCATED FIFTY
PERCENT TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,
AND  LOCAL  EDUCATION FUNDS AND FIFTY PERCENT TO EDUCATIONAL SCHOLARSHIP
ORGANIZATIONS.
  (I) ADDITIONS TO CREDIT CAP. UNISSUED CERTIFICATES OF  RECEIPT.    ANY
AMOUNTS  FOR  WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE
OF A CERTIFICATE OF RECEIPT SHALL BE ADDED  TO  THE  CAP  PRESCRIBED  IN
SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.

S. 6409--B                         38

  (J)  REGULATIONS.  THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE
AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE  IMPLEMEN-
TATION OF THIS SECTION.
  (K)  WRITTEN REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR EACH CALEN-
DAR YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER  AND  THE
COMMISSIONER  OF  EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT TO THE
GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE  SPEAKER  OF  THE
ASSEMBLY,  THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION INVEST-
MENT TAX CREDIT. SUCH REPORT  SHALL  CONTAIN  INFORMATION  FOR  ARTICLES
NINE-A AND TWENTY-TWO, RESPECTIVELY, REGARDING: (I) THE NUMBER OF APPLI-
CATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE VALUE OF THE CONTRIB-
UTION  AUTHORIZATION  CERTIFICATES  ISSUED  FOR  CONTRIBUTIONS TO PUBLIC
EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION
FUNDS,  AND SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY; (III) THE GEOGRAPH-
ICAL DISTRIBUTION BY COUNTY OF (A)  THE  APPLICATIONS  FOR  CONTRIBUTION
AUTHORIZATION  CERTIFICATES,  DISTRIBUTION  BY  COUNTY OF (B) THE PUBLIC
EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION
FUNDS,  AND  EDUCATIONAL  SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED
CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING
GEOGRAPHICAL DISTRIBUTION BY COUNTY, OF THE NUMBER  OF  ELIGIBLE  PUPILS
THAT  RECEIVED SCHOLARSHIPS, THE NUMBER OF QUALIFIED SCHOOLS ATTENDED BY
ELIGIBLE PUPILS THAT RECEIVED SUCH SCHOLARSHIPS, AND THE  AVERAGE  VALUE
OF  SCHOLARSHIPS  RECEIVED BY SUCH ELIGIBLE PUPILS. THE COMMISSIONER AND
DESIGNATED EMPLOYEES OF  THE  DEPARTMENT,  THE  BOARD  OF  REGENTS,  THE
COMMISSIONER  OF  EDUCATION AND DESIGNATED EMPLOYEES OF THE STATE EDUCA-
TION DEPARTMENT, SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE
INFORMATION REGARDING THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCA-
TION FUNDS AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS  THAT  APPLIED  FOR
APPROVAL  TO  BE  AUTHORIZED TO RECEIVE QUALIFIED CONTRIBUTIONS; AND THE
PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO
ISSUE  CERTIFICATES  OF  RECEIPT,  INCLUDING INFORMATION CONTAINED IN OR
DERIVED FROM APPLICATION FORMS AND REPORTS SUBMITTED  TO  THE  EDUCATION
DEPARTMENT OR BOARD OF REGENTS.
  (L)  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; SUBSECTIONS (I) AND (CCC).
  S 3. Paragraph (b) of subdivision 9 of section 208 of the tax  law  is
amended by adding a new subparagraph 22 to read as follows:
  (22)  THE  AMOUNT  OF  ANY  DEDUCTION  ALLOWED PURSUANT TO SECTION ONE
HUNDRED SEVENTY OF THE INTERNAL REVENUE  CODE  FOR  WHICH  A  CREDIT  IS
CLAIMED  PURSUANT TO SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED TEN-B
OF THIS ARTICLE.
  S 4. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 49 to read as follows:
  49.  EDUCATION  INVESTMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF CREDIT. A
TAXPAYER SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN
SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO  LESS
THAN  THE  HIGHER  OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) OR (D) OF
SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF
THE AMOUNT OF  CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION  FOR  QUALIFIED

S. 6409--B                         39

CONTRIBUTIONS  FOR  ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY
AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S  5. 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) EDUCATION INVESTMENT           AMOUNT OF CREDIT UNDER SUBDIVISION
TAX CREDIT UNDER SUBSECTION (CCC)    FORTY-NINE OF SECTION TWO HUNDRED
                                     TEN-B
  S  6.  Section  606  of  the  tax  law  is  amended  by adding two new
subsections (w) and (w-1) to read as follows:
  (W) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT. (1) FOR  TAXABLE  YEARS
BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN, A TAXPAYER
SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  FOR
THE  PURCHASE  OF  INSTRUCTIONAL  MATERIALS  APPROVED  BY  THE EDUCATION
DEPARTMENT OR BOARD OF REGENTS FOR USE IN NON-PUBLIC  HOME-BASED  EDUCA-
TIONAL  PROGRAMS;  PROVIDED,  THAT THE AMOUNT OF CREDIT CLAIMED DOES NOT
EXCEED THE LESSER OF TWO HUNDRED DOLLARS OR ONE HUNDRED PERCENT  OF  THE
COST OF SUCH PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.
  (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH  THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
  (3) 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.
  (W-1)  INSTRUCTIONAL  MATERIALS  AND SUPPLIES CREDIT.  (1) FOR TAXABLE
YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO  THOUSAND  SEVENTEEN,  A
TAXPAYER  SHALL  BE  ALLOWED  A CREDIT EQUAL TO THE LESSER OF THE AMOUNT
PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS
AND SUPPLIES, OR TWO HUNDRED DOLLARS; PROVIDED THAT THE  TAXPAYER  IS  A
TEACHER  OR  INSTRUCTOR  IN  A  QUALIFIED  SCHOOL, AS DEFINED IN SECTION
FORTY-TWO OF THIS CHAPTER, FOR AT LEAST  NINE  HUNDRED  HOURS  DURING  A
SCHOOL  YEAR.  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND
SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE USED IN THE
CLASSROOM IN ANY QUALIFIED SCHOOL.
  (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
  (3)  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.
  (4) THE MAXIMUM AMOUNT OF CREDIT THAT SHALL BE ALLOWED ANNUALLY  UNDER
THIS SUBSECTION SHALL BE TEN MILLION DOLLARS. IN ORDER TO CLAIM A CREDIT
UNDER  THIS  SUBSECTION,  A  TAXPAYER  SHALL BE REQUIRED TO APPLY TO THE
DEPARTMENT FOR APPROVAL DURING THE TAXABLE YEAR. THE TAXPAYER  SHALL  BE
REQUIRED  TO  SUBMIT  DOCUMENTATION DEMONSTRATING THAT THE TAXPAYER IS A
TEACHER OR INSTRUCTOR AS REQUIRED UNDER THIS  SUBSECTION  AND  THAT  THE
TAXPAYER  PURCHASED  MATERIALS AND SUPPLIES. THE DEPARTMENT SHALL REVIEW
THE APPLICATION AND PROVIDE A TAXPAYER WITH A CERTIFICATE THAT SPECIFIES
HOW MUCH CREDIT THE TAXPAYER IS ENTITLED TO CLAIM. IF  REQUIRED  BY  THE
COMMISSIONER,  THE TAXPAYER MUST SUBMIT THAT CERTIFICATE WITH HIS OR HER

S. 6409--B                         40

TAX RETURN. THE COMMISSIONER SHALL ALLOCATE THE CREDITS ON A FIRST  COME
FIRST  SERVED BASIS AND PRESCRIBE THE NECESSARY PROCEDURES FOR REVIEWING
THE APPLICATIONS AND PRODUCING THE CERTIFICATES.
  S  7. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) EDUCATION INVESTMENT TAX CREDIT.  (1)  ALLOWANCE  OF  CREDIT.  A
TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY QUALIFIED CONTRIBUTIONS  FOR  ANY  TAXABLE  YEAR
EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
FOR SUCH YEAR OR YEARS.
  S 8. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 9 to read as follows:
  (9)  THE  AMOUNT  OF  ANY FEDERAL DEDUCTION FOR CONTRIBUTIONS MADE FOR
WHICH A TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (CCC) OF  SECTION  SIX
HUNDRED SIX OF THIS ARTICLE.
  S  9.  The education law is amended by adding a new article 25 to read
as follows:
                               ARTICLE 25
                 EDUCATION INVESTMENT TAX CREDIT PROGRAM
SECTION 1209. SHORT TITLE.
        1210. DEFINITIONS.
        1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1212. APPLICATIONS  FOR  APPROVAL  TO  ISSUE   CERTIFICATES   OF
                RECEIPT.
        1213. APPLICATION APPROVAL.
        1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
        1215. RECORDKEEPING.
        1216. JOINT ANNUAL REPORT.
        1217. COMMISSIONER; POWERS.
  S  1209.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "EDUCATION INVESTMENT TAX CREDIT PROGRAM".
  S 1210. DEFINITIONS. AS USED IN  THIS  ARTICLE,  THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "AUTHORIZED  CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT LISTED ON
THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER.
  2. "CONTRIBUTION" MEANS A DONATION PAID  BY  CASH,  CHECK,  ELECTRONIC
FUNDS  TRANSFER,  DEBIT  CARD OR CREDIT CARD MADE BY THE TAXPAYER DURING
THE TAX YEAR.
  3. "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC PROGRAM OF A PUBLIC  SCHOOL
THAT  ENHANCES THE CURRICULUM, OR PROVIDES OR EXPANDS A PRE-KINDERGARTEN
PROGRAM OR AN AFTER-SCHOOL PROGRAM TO THE PUBLIC SCHOOL. FOR PURPOSES OF
THIS DEFINITION, THE INSTRUCTION, MATERIALS, PROGRAMS  OR  OTHER  ACTIV-
ITIES  OFFERED BY OR THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT ARE
NOT LIMITED TO, THE FOLLOWING FEATURES:  (A)  INSTRUCTION  OR  MATERIALS
PROMOTING  HEALTH, PHYSICAL EDUCATION, AND FAMILY AND CONSUMER SCIENCES;
LITERARY, PERFORMING AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECH-
NOLOGY AND SCIENTIFIC ACHIEVEMENT; (B)  INSTRUCTION  OR  PROGRAMMING  TO
MEET  THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH DISABILI-
TIES, INCLUDING TUTORING  OR  COUNSELING;  OR  (C)  USE  OF  SPECIALIZED
INSTRUCTIONAL  MATERIALS,  INSTRUCTORS  OR INSTRUCTION NOT PROVIDED BY A
PUBLIC SCHOOL.
  4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
TY WHICH (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION

S. 6409--B                         41

(C) OF SECTION FIVE HUNDRED  ONE  OF  THE  INTERNAL  REVENUE  CODE,  (B)
COMMITS  FOR  THE  EXPENDITURE OF AT LEAST NINETY PERCENT OF THE REVENUE
FROM QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR  AND  ANY
INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS FOR SCHOLARSHIPS, (C) DEPOS-
ITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALI-
FIED  CONTRIBUTIONS  IN  AN  ACCOUNT THAT IS SEPARATE FROM THE ORGANIZA-
TION'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS  OR
INCOME  ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO ELIGIBLE
PUPILS FOR USE AT NO FEWER THAN THREE QUALIFIED SCHOOLS.
  5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (A) IS A RESIDENT OF THIS STATE,
(B) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION  THIRTY-
TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR BEFORE
DECEMBER  FIRST  OF THE YEAR IN WHICH THEY ARE ENROLLED IN A PRE-KINDER-
GARTEN PROGRAM, (C) ATTENDS OR IS ABOUT TO ATTEND  A  QUALIFIED  SCHOOL,
AND  (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS INCOME
OF FIVE HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER,  FOR  HOUSE-
HOLDS  WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL BE
INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS OF  TWO,
NOT TO EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.
  6.  "LOCAL  EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (A) IS
EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF  SECTION
FIVE  HUNDRED  ONE  OF THE INTERNAL REVENUE CODE, (B) IS ESTABLISHED FOR
THE PURPOSE OF SUPPORTING AN EDUCATIONAL PROGRAM IN AT LEAST ONE  PUBLIC
SCHOOL,  OR  PUBLIC SCHOOL DISTRICT, (C) USES AT LEAST NINETY PERCENT OF
THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR  YEAR  AND  ANY
INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL
OR  SCHOOLS  OR  PUBLIC  SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS
BEEN ESTABLISHED TO  SUPPORT,  AND  (D)  DEPOSITS  AND  HOLDS  QUALIFIED
CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS  UNTIL
SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
  7.   "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
PROGRAM  OR  ELEMENTARY,  SECONDARY  SECTARIAN  OR  NONSECTARIAN  SCHOOL
LOCATED  IN  THIS  STATE,  OTHER THAN A PUBLIC SCHOOL, THAT IS PROVIDING
INSTRUCTION AT ONE OR MORE LOCATIONS TO A  STUDENT  IN  ACCORDANCE  WITH
SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
  8.  "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC SCHOOL
DISTRICT, PROVIDED THAT SUCH PUBLIC SCHOOL, OR  PUBLIC  SCHOOL  DISTRICT
DEPOSITS  AND  HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM
QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM  THE  PUBLIC
SCHOOL  OR  PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH
QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND IS APPROVED
TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
  9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR  SECONDARY  SCHOOL  IN
THIS  STATE  GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION OR CHARTER
SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAPTER.
  10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
A TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZA-
TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
IS  LISTED  ON  THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE
TAXPAYER AND FOR WHICH  THE  TAXPAYER  HAS  RECEIVED  A  CERTIFICATE  OF
RECEIPT  FROM  SUCH  ENTITY, FUND, OR ORGANIZATION.  A CONTRIBUTION DOES
NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN
ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPEC-
IFIED STUDENT.

S. 6409--B                         42

  11. "QUALIFIED EDUCATOR" MEANS AN  INDIVIDUAL  WHO  IS  A  TEACHER  OR
INSTRUCTOR  IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING
A SCHOOL YEAR.
  12. "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL.
  13.  "SCHOLARSHIP"  MEANS  AN EDUCATIONAL SCHOLARSHIP WHICH PROVIDES A
TUITION GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED  SCHOOL
IN  AN  AMOUNT  NOT  TO EXCEED THE TUITION CHARGED TO ATTEND SUCH SCHOOL
LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH  ELIGIBLE  PUPIL
OR  HIS  OR  HER  PARENT,  PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A
PUBLIC SCHOOL IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS  NOT  A
RESIDENT,  THE  AMOUNT  OF  THE  EDUCATIONAL SCHOLARSHIP AWARDED MAY NOT
EXCEED THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH  D
OF  SUBDIVISION  FOUR  OF SECTION THIRTY-TWO HUNDRED TWO OF THIS CHAPTER
LESS ANY OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH  ELIGIBLE  PUPIL
OR  HIS  OR  HER  PARENT,  PARENTS OR GUARDIAN FOR SUCH ELIGIBLE PUPIL'S
TUITION, BUT ONLY IF THE PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A
RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
  14. "SCHOOL IMPROVEMENT ORGANIZATION" MEANS  A  NOT-FOR-PROFIT  ENTITY
WHICH  (I)  IS  EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
(C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II)  USES
AT  LEAST  NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS RECEIVED DURING
THE CALENDAR YEAR AND ANY INCOME DERIVED FROM  SUCH  QUALIFIED  CONTRIB-
UTIONS  TO  ASSIST  PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS LOCATED IN
THIS STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY  MAKING
CONTRIBUTIONS  TO  ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
LOCATED IN THIS STATE  OR  PROVIDING  EDUCATIONAL  PROGRAMS  TO,  OR  IN
CONJUNCTION  WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL DISTRICTS
LOCATED IN THIS STATE, (III) DEPOSITS AND HOLDS QUALIFIED  CONTRIBUTIONS
AND  ANY  INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN AN ACCOUNT
THAT IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS  UNTIL
SUCH  QUALIFIED  CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND (IV)
IS APPROVED TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO  THIS  ARTICLE.
SUCH  ENTITY  MAY  ALLOW  THE TAXPAYER TO CHOOSE TO DONATE TO A PROGRAM,
PROJECT OR INITIATIVE IDENTIFIED BY A QUALIFIED EDUCATOR FOR  USE  IN  A
PUBLIC SCHOOL.
  S  1211.  APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS
AND PUBLIC SCHOOL  DISTRICTS.  ALL  PUBLIC  SCHOOLS  AND  PUBLIC  SCHOOL
DISTRICTS  SHALL  BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT PROVIDED,
THAT A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED  IF
EITHER  (A) THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT
AND HOLD QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED  FROM  QUALIFIED
CONTRIBUTIONS  IN  AN ACCOUNT THAT IS SEPARATE FROM THE SCHOOL OR SCHOOL
DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS
OR INCOME ARE WITHDRAWN FOR USE, OR (B) THE BOARD OF REGENTS HAS REVOKED
SUCH  APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT PURSUANT
TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE.
  2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
TIONS AND LOCAL EDUCATION FUNDS.  NO  SCHOOL  IMPROVEMENT  ORGANIZATION,
EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
ANY  CERTIFICATES  OF  RECEIPT WITHOUT FILING AN APPLICATION PURSUANT TO
SECTION TWELVE HUNDRED TWELVE OF THIS  ARTICLE  AND  RECEIVING  APPROVAL
PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
  S  1212.  APPLICATIONS  FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
EACH SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP  ORGANIZA-
TION,  AND LOCAL EDUCATION FUND SHALL SUBMIT AN APPLICATION TO THE BOARD

S. 6409--B                         43

OF REGENTS FOR APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM AND
MANNER PRESCRIBED BY THE BOARD; PROVIDED  THAT  SUCH  APPLICATION  SHALL
INCLUDE:  (A)  SUBMISSION  OF DOCUMENTATION THAT SUCH SCHOOL IMPROVEMENT
ORGANIZATION,  LOCAL EDUCATION FUND OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
TION HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARAGRAPH  THREE  OF
SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE;
(B)  THE MOST RECENT ANNUAL FINANCIAL AUDIT, WHICH SHALL BE COMPLETED BY
AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT  AND  A  LIST  OF  NAMES  AND
ADDRESSES  OF  ALL MEMBERS OF THE GOVERNING BOARD OF THE SCHOOL IMPROVE-
MENT ORGANIZATION,  LOCAL  EDUCATION  FUND  OR  EDUCATIONAL  SCHOLARSHIP
ORGANIZATION;  AND  (C)  AN  EDUCATIONAL  SCHOLARSHIP ORGANIZATION SHALL
PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE  STUDENTS.
THE  BOARD  OF REGENTS, COMMISSIONER OR DEPARTMENT SHALL NOT REQUIRE ANY
OTHER INFORMATION FOR SUCH APPLICATION  EXCEPT  AS  AUTHORIZED  IN  THIS
ARTICLE OR BY SECTION FORTY-TWO OF THE TAX LAW.
  S  1213.  APPLICATION APPROVAL. THE BOARD OF REGENTS SHALL REVIEW EACH
APPLICATION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO  THIS  ARTICLE.
APPROVAL OR DENIAL OF AN APPLICATION SHALL BE MADE AT THE NEXT SCHEDULED
MEETING  OF THE BOARD OF REGENTS THAT FOLLOWS THE RECEIPT OF SUCH APPLI-
CATION, BUT NOT LATER THAN THE NEXT MEETING THEREAFTER.
  S 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF  RECEIPT.  THE
BOARD  OF REGENTS, IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND
FINANCE, MAY REVOKE THE APPROVAL OF A SCHOOL  IMPROVEMENT  ORGANIZATION,
EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  LOCAL  EDUCATION  FUND,  PUBLIC
SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
FINDING THAT SUCH ORGANIZATION, FUND,  SCHOOL  OR  SCHOOL  DISTRICT  HAS
VIOLATED  THIS  ARTICLE  OR  SECTION  FORTY-TWO  OF  THE  TAX LAW. THESE
VIOLATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY OF  THE  FOLLOWING:
(A)  FAILURE  TO  MEET  THE  REQUIREMENTS  OF  THIS  ARTICLE  OR SECTION
FORTY-TWO OF THE TAX LAW, (B) THE FAILURE TO MAINTAIN FULL AND  ADEQUATE
RECORDS  WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS, (C) THE
FAILURE TO SUPPLY SUCH RECORDS TO THE COMMISSIONER, DEPARTMENT OF  TAXA-
TION AND FINANCE OR BOARD OF REGENTS WHEN REQUESTED BY THE DEPARTMENT OR
BOARD,  OR  (D) THE FAILURE TO PROVIDE NOTICE TO THE DEPARTMENT OF TAXA-
TION AND FINANCE OF THE  ISSUANCE  OR  NONISSUANCE  OF  CERTIFICATES  OF
RECEIPT  PURSUANT TO SECTION FORTY-TWO OF THE TAX LAW; PROVIDED HOWEVER,
THAT THE BOARD OF REGENTS SHALL NOT REVOKE  APPROVAL  PURSUANT  TO  THIS
SECTION BASED UPON A VIOLATION OF THE TAX LAW UNLESS THE COMMISSIONER OF
TAXATION  AND  FINANCE AGREES THAT REVOCATION IS WARRANTED; AND PROVIDED
FURTHER THAT THE BOARD  SHALL  NOT  REVOKE  APPROVAL  PURSUANT  TO  THIS
SECTION  WHEN  THE  FAILURE  TO  COMPLY IS DUE TO CLERICAL ERROR AND NOT
NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE LAW. WITHIN FIVE DAYS OF THE
DETERMINATION REVOKING APPROVAL, THE BOARD SHALL PROVIDE NOTICE OF  SUCH
REVOCATION  TO THE EDUCATIONAL SCHOLARSHIP ORGANIZATION, SCHOOL IMPROVE-
MENT ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL, OR PUBLIC SCHOOL
DISTRICT AND TO THE DEPARTMENT OF TAXATION AND FINANCE.
  S 1215. RECORDKEEPING. EACH SCHOOL  IMPROVEMENT  ORGANIZATION,  EDUCA-
TIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND
PUBLIC  SCHOOL  DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT
SHALL MAINTAIN RECORDS INCLUDING (A)  NOTIFICATIONS  RECEIVED  FROM  THE
DEPARTMENT  OF  TAXATION  AND  FINANCE,  (B)  NOTIFICATIONS  MADE TO THE
DEPARTMENT OF TAXATION AND FINANCE, (C)  COPIES  OF  QUALIFIED  CONTRIB-
UTIONS  RECEIVED,  (D)  COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIB-
UTIONS, (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT, (F) ANNUAL  FINAN-
CIAL  STATEMENTS,  (G)  IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS,
EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND  LOCAL  EDUCATION  FUNDS,  THE

S. 6409--B                         44

APPLICATION  SUBMITTED PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS
ARTICLE AND THE APPROVAL ISSUED BY THE BOARD OF  REGENTS,  AND  (H)  ANY
OTHER INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMIS-
SIONER OR RULE PROMULGATED BY THE BOARD OF REGENTS.
  S  1216.  JOINT  ANNUAL  REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR
EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION  AND  FINANCE  AND  THE
COMMISSIONER,  JOINTLY,  SHALL  SUBMIT  A  WRITTEN REPORT AS PROVIDED IN
SUBDIVISION (K) OF SECTION FORTY-TWO OF THE TAX LAW.
  S 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
EMERGENCY  BASIS  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION OF THIS
SECTION. THE COMMISSIONER SHALL MAKE  ANY  APPLICATION  REQUIRED  TO  BE
FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS
OF THE EFFECTIVE DATE OF THIS ARTICLE.
  S  10.  The education law is amended by adding a new section 1503-a to
read as follows:
  S 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.    1.  ALL
SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
OF  A  GENERAL  LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS,
DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
GENERAL OR SPECIAL LAW TO THE  CONTRARY,  THE  RECEIPT  OF  SUCH  GIFTS,
DONATIONS,  CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE-
FROM, SHALL BE DISREGARDED  FOR  THE  PURPOSES  OF  ALL  APPORTIONMENTS,
COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
  S  11.  Severability. If any provision of this section or the applica-
tion thereof to any person or circumstances is held invalid, such  inva-
lidity  shall not affect other provisions or applications of the section
which can be given effect without the invalid provision or  application,
and to this end the provisions of this section are declared to be sever-
able.
  S  12. This act shall take effect immediately and shall apply to taxa-
ble years beginning after December 31, 2016.

                                 PART T

                          Intentionally Omitted

                                 PART U

  Section 1. Section 19 of Part W-1 of chapter 109 of the laws  of  2006
amending  the  tax  law and other laws relating to providing exemptions,
reimbursements and credits from various taxes  for  certain  alternative
fuels,  as  amended  by section 1 of part V of chapter 59 of the laws of
2014, is amended to read as follows:
  S 19. This act shall take effect immediately; provided, however,  that
sections one through thirteen of this act shall take effect September 1,
2006  and  shall be deemed repealed on September 1, [2016] 2021 and such
repeal shall  apply  in  accordance  with  the  applicable  transitional
provisions  of sections 1106 and 1217 of the tax law, and shall apply to
sales made, fuel compounded or manufactured, and uses  occurring  on  or
after  such  date,  and with respect to sections seven through eleven of
this act, in  accordance  with  applicable  transitional  provisions  of
sections  1106  and  1217  of  the  tax law; provided, however, that the
commissioner of taxation and finance shall be authorized  on  and  after
the  date  this act shall have become a law to adopt and amend any rules
or regulations  and  to  take  any  steps  necessary  to  implement  the

S. 6409--B                         45

provisions  of this act; provided further that sections fourteen through
sixteen of this act shall take effect immediately  and  shall  apply  to
taxable years beginning on or after January 1, 2006.
  S 2. This act shall take effect immediately.

                                 PART V

  Section  1.  Section 37 of the tax law, as added by chapter 109 of the
laws of 2012, subdivision (c) as amended by section  52  of  part  A  of
chapter 59 of the laws of 2014, is amended to read as follows:
  S  37.  [Beer]  ALCOHOLIC  BEVERAGE  production credit. (a) General. A
taxpayer subject to tax under article nine-A or twenty-two of this chap-
ter, that is registered as a distributor under article eighteen of  this
chapter,  and  that  produces  sixty million or fewer gallons of beer OR
CIDER, TWENTY MILLION OR FEWER GALLONS OF WINE, OR EIGHT  HUNDRED  THOU-
SAND OR FEWER GALLONS OF LIQUOR in this state in the taxable year, shall
be allowed a credit against such taxes in the amount specified in subdi-
vision  (b) of this section and pursuant to the provisions referenced in
subdivision (c) of this section. Provided, however, that no credit shall
be allowed for any beer, CIDER, WINE OR LIQUOR  produced  in  excess  of
fifteen  million  five  hundred thousand gallons in the taxable year. If
the taxpayer is a partner in a partnership or shareholder of a New  York
S  corporation,  then the cap imposed by the preceding sentence shall be
applied at the entity level, so that the aggregate credit allowed to all
the partners or shareholders of each such entity  in  the  taxable  year
does not exceed that cap.
  (b)  The  amount  of  the credit per taxpayer per taxable year (or pro
rata share of earned credit in the  case  of  a  partnership)  for  each
gallon  of  beer,  CIDER,  WINE  OR LIQUOR produced in this state [on or
after April first, two thousand twelve] shall be determined as follows:
  (1) for the first five hundred thousand gallons of beer,  CIDER,  WINE
OR  LIQUOR  produced in this state in the taxable year, the credit shall
equal fourteen cents per gallon; and
  (2) for each gallon of beer, CIDER, WINE OR LIQUOR  produced  in  this
state  in  the  taxable year in excess of five hundred thousand gallons,
the credit shall equal four and one-half cents per gallon.
  (c) 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 39.
  (2) Article 22: Section 606, subsections (i) and (uu).
  S  2.  Subdivision  39  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:
  39.  [Beer] ALCOHOLIC BEVERAGE production credit.  A taxpayer shall be
allowed a credit, to be computed as provided in section thirty-seven  of
this chapter, against the tax imposed by this article. In no event shall
the  credit  allowed  under this subdivision for any taxable year reduce
the tax due for such year to less than the amount  prescribed  in  para-
graph (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 or if the taxpayer otherwise
pays tax based on the fixed dollar minimum amount, any amount of  credit
thus not deductible in such taxable year shall be treated as an overpay-
ment of tax to be credited or refunded in accordance with the provisions
of  section  one thousand eighty-six of this chapter. Provided, however,

S. 6409--B                         46

the provisions of subsection (c) of section one thousand eighty-eight of
this chapter notwithstanding, no interest shall be paid thereon.
  S  3. Subdivision 3 of section 420 of the tax law, as amended by chap-
ter 94 of the laws of 1934, is amended to read as follows:
  3. "Alcoholic beverages" mean and include CIDERS, AS  DEFINED  BY  THE
ALCOHOLIC BEVERAGE CONTROL LAW, beers, wines or liquors.
  S 4. Section 424 of the tax law is amended by adding a new subdivision
6 to read as follows:
  6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THERE SHALL BE
EXEMPT  FROM  THE  TAXES IMPOSED UNDER THIS ARTICLE, ALCOHOLIC BEVERAGES
FURNISHED BY A LICENSED PRODUCER OF ALCOHOLIC BEVERAGES AT NO CHARGE  TO
A  CUSTOMER OR PROSPECTIVE CUSTOMER AT A TASTING HELD IN ACCORDANCE WITH
THE ALCOHOLIC BEVERAGE CONTROL LAW FOR CONSUMPTION AT SUCH TASTING.
  S 5. Clause (xxxiv) 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:
(xxxiv) [Beer] ALCOHOLIC BEVERAGE    Amount of credit
production credit under              under subdivision thirty-nine of
subsection (uu)                      section two hundred ten-B
  S  6. Subsection (uu) of section 606 of the tax law, as added by chap-
ter 109 of the laws of 2012, is amended to read as follows:
  (uu) [Beer] ALCOHOLIC BEVERAGE production credit. A taxpayer shall  be
allowed  a credit, to be computed as provided in section thirty-seven of
this chapter, against the tax imposed by this article. 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  7.  Subdivision  13  of  section  1118  of the tax law, as added by
section 2 of part U of chapter 59 of the laws of  2015,  is  amended  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] PRODUCER OF ALCOHOLIC BEVERAGES  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 customer or prospective customer at such
tasting for consumption at such tasting; and (ii) bottles,  corks,  caps
and labels used to package such alcoholic beverages.
  S  8. This act shall take effect immediately, provided, however, that:
sections one, two, five and six of this act shall apply to taxable years
beginning on or after January 1, 2016; sections three and four  of  this
act  shall apply to taxable periods beginning on or after April 1, 2016;
and section seven of this act shall apply to uses occurring on and after
June 1, 2016.

                                 PART W

                          Intentionally Omitted

                                 PART X

  Section 1. Paragraph 2 of subdivision (e) of section 1105 of  the  tax
law,  as  amended  by  section  1 of part Q of chapter 59 of the laws of
2012, is amended to read as follows:

S. 6409--B                         47

  (2) Except as provided in subdivision (r) of  section  eleven  hundred
eleven  of this part, when occupancy is provided, for a single consider-
ation, with property, services, amusement charges, or any  other  items,
the separate sale of which is not subject to tax under this article, AND
THE  RENT  PAID FOR SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN
SUBDIVISION (KK) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS ARTICLE,  the
entire consideration shall be treated as rent subject to tax under para-
graph  one of this subdivision; provided, however, that where the amount
of the rent for occupancy is stated separately from the  price  of  such
property,  services,  amusement  charges,  or  other items, on any sales
slip, invoice, receipt, or other statement given the occupant, and  such
rent  is reasonable in relation to the value of such property, services,
amusement charges or other items, only such separately stated rent  will
be subject to tax under paragraph one of this subdivision.
  S  2.  Section 1115 of the tax law is amended by adding a new subdivi-
sion (kk) to read as follows:
  (KK) RENT PAID BY A ROOM REMARKETER TO AN OPERATOR THAT IS NOT A  ROOM
REMARKETER  FOR AN OCCUPANCY THAT THE ROOM REMARKETER INTENDS TO PROVIDE
TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE HOTEL UNIT FEE  IMPOSED
BY  SECTION  ELEVEN  HUNDRED FOUR OF THIS ARTICLE AND THE TAX IMPOSED BY
SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE, PROVIDED
THAT SUCH ROOM REMARKETER FURNISHES SUCH OPERATOR A CERTIFICATE IN  SUCH
FORM AND CONTAINING SUCH INFORMATION AS MAY BE PRESCRIBED BY THE COMMIS-
SIONER. THE EXEMPTION CERTIFICATE PROVIDED FOR BY THIS SUBDIVISION SHALL
BE  ADMINISTERED  BY  THE  COMMISSIONER IN CONFORMITY WITH THE RULES FOR
EXEMPTION OR RESALE CERTIFICATES IN SUBPARAGRAPH (I) OF PARAGRAPH ONE OF
SUBDIVISION (C) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS ARTICLE.
  S 3. Paragraph 4 of subdivision a of section 11-2502 of  the  adminis-
trative  code of the city of New York, as amended by section 4 of part Q
of chapter 59 of the laws of 2012, is amended to read as follows:
  (4) (i) When occupancy is provided, for a single  consideration,  with
property,  services, amusement charges, or any other items, the separate
sale of which is not subject to tax under this  chapter,  AND  THE  RENT
PAID  FOR  SUCH OCCUPANCY DOES NOT QUALIFY FOR THE EXEMPTION IN SUBDIVI-
SION 1 OF THIS SECTION, the entire consideration  shall  be  treated  as
rent  subject  to tax under paragraph one of this subdivision; provided,
however, that where the amount of the rent for occupancy is stated sepa-
rately from the price of such property, services, amusement  charges  or
other  items  on  any  sales  slip, invoice, receipt, or other statement
given the occupant and such rent is reasonable in relation to the  value
of such property, services, amusement charges, or other items, only such
separately stated rent will be subject to tax under this subdivision.
  (ii) In regard to the collection of tax on occupancies by remarketers,
when  occupancy  is provided, for a single consideration, with property,
services, amusement charges, or any other items,  whether  or  not  such
other  items are taxable, the rent portion of the consideration for such
sale shall be computed as follows: the total consideration for the  sale
multiplied  by a fraction, the numerator of which shall be the consider-
ation paid to the hotel for the occupancy and the denominator  of  which
shall  be the consideration paid to the hotel for the occupancy plus the
consideration paid to the providers of the other items being sold, or by
any other reasonable method  pursuant  to  which  the  rent  portion  of
consideration  would  be no less than the computation of rent portion of
consideration under subparagraph (i) of this paragraph.  Nothing  herein
shall  be  construed to subject to tax or exempt from tax any service or

S. 6409--B                         48

property or amusement charge or other items otherwise subject to tax  or
exempt from tax under this chapter.
  S  4.  Section  11-2502  of the administrative code of the city of New
York is amended by adding a new subdivision 1 to read as follows:
  1. AN OCCUPANCY THAT AN  OPERATOR  CONVEYS  OR  FURNISHES  TO  A  ROOM
REMARKETER  THAT  THE  ROOM  REMARKETER  INTENDS  TO  CONVEY OR FURNISH,
DIRECTLY OR INDIRECTLY, TO AN OCCUPANT FOR RENT SHALL BE EXEMPT FROM THE
TAXES IMPOSED BY  THIS  SECTION,  PROVIDED  THAT  SUCH  ROOM  REMARKETER
FURNISHES  THE  OPERATOR  WITH A CERTIFICATE IN SUCH FORM AND CONTAINING
SUCH INFORMATION AS MAY BE PRESCRIBED BY THE  COMMISSIONER  OF  FINANCE.
THE  OPERATOR  SHALL RETAIN SUCH STATEMENT AND PROVIDE IT TO THE COMMIS-
SIONER OF FINANCE UPON REQUEST.
  S 5. This act shall take effect immediately and apply to rent paid for
occupancies on or after June 1, 2016.

                                 PART Y

  Section 1. The section heading of section 951-a of  the  tax  law,  as
added by chapter 190 of the laws of 1990, is amended to read as follows:
  [Definitions] GENERAL PROVISIONS AND DEFINITIONS.
  S  2.  Section  951-a  of  the  tax  law  is  amended  by adding a new
subsection (f) to read as follows:
  (F) TAX TREATMENT OF CHARITABLE CONTRIBUTIONS  FOR  DETERMINING  DOMI-
CILE.    NOTWITHSTANDING  ANY  OTHER  PROVISION  OF ANY OTHER LAW TO THE
CONTRARY,  THE  MAKING  OF  A  FINANCIAL  CONTRIBUTION,  GIFT,  BEQUEST,
DONATION  OR  ANY  OTHER FINANCIAL INSTRUMENT OR PLEDGE IN ANY AMOUNT OR
THE DONATION OR LOAN OF ANY OBJECT OF ANY VALUE,  OR  THE  VOLUNTEERING,
GIVING  OR  DONATION  OF  UNCOMPENSATED  TIME, OR ANY COMBINATION OF THE
FOREGOING, CONSIDERED A CHARITABLE CONTRIBUTION UNDER SUBSECTION (C)  OF
SECTION  ONE  HUNDRED  SEVENTY  OF  THE  INTERNAL  REVENUE CODE, OR TO A
NOT-FOR-PROFIT ORGANIZATION, AS DEFINED IN SUBDIVISION SEVEN OF  SECTION
ONE  HUNDRED  SEVENTY-NINE-Q OF THE STATE FINANCE LAW, SHALL NOT BE USED
IN ANY MANNER TO DETERMINE WHERE AN INDIVIDUAL IS DOMICILED AT THE  TIME
OF HIS OR HER DEATH.
  S 3. This act shall take effect immediately.

                                 PART Z

  Section  1. Subdivision 2 of section 89-b of the state finance law, as
amended by chapter 56 of the  laws  of  1993,  is  amended  to  read  as
follows:
  2.  The dedicated highway and bridge trust fund shall consist of [two]
THREE accounts: (a) the special obligation reserve and payment  account;
[and]  (b)  the highway and bridge capital account; AND (C) THE AVIATION
PURPOSE ACCOUNT. Moneys in each account shall be kept separate  and  not
commingled with any other moneys in the custody of the comptroller.
  S  2. Section 89-b of the state finance law is amended by adding a new
subdivision 4-a to read as follows:
  4-A. (A) THE AVIATION PURPOSE ACCOUNT  SHALL  CONSIST  OF  ALL  MONEYS
REQUIRED  TO BE DEPOSITED BY SECTION THREE HUNDRED TWELVE OF THE TAX LAW
AND ANY OTHER MONEYS CREDITED OR  TRANSFERRED  THERETO  FROM  ANY  OTHER
FUND, ACCOUNT OR SOURCE.
  (B)  MONEYS  IN  THE  AVIATION  PURPOSE  ACCOUNT SHALL BE UTILIZED FOR
AIRPORTS AND AVIATION FACILITIES AND  EQUIPMENT  AND  RELATED  PROJECTS,
INCLUDING  BUT  NOT  LIMITED  TO  THE  ACQUISITION  OF  REAL OR TANGIBLE
PERSONAL PROPERTY, CONSTRUCTION, RECONSTRUCTION, RECONDITIONING, PRESER-

S. 6409--B                         49

VATION, MAINTENANCE OR IMPROVEMENT OF AIRPORT OR AVIATION CAPITAL FACIL-
ITIES AND NOISE MITIGATION PROJECTS, AND ANY OTHER PURPOSE NOT PROHIBIT-
ED BY FEDERAL LAW.
  S 3. Section 312 of the tax law, as amended by section 32 of part K of
chapter 61 of the laws of 2011, is amended to read as follows:
  S  312.  Deposit and disposition of revenue.-- (a) Except as otherwise
provided, of all taxes, interest and penalties collected or received  on
or  after  April  first,  two  thousand  one,  from the taxes imposed by
[sections] SECTION three hundred one-a [and three hundred one-e] of this
article, (i) initially eighty and three-tenths percent shall be deposit-
ed, as prescribed by subdivision (d) of section three hundred  one-j  of
this  article and (ii) nineteen and seven-tenths percent shall be depos-
ited in such mass transportation operating assistance fund to the credit
of the metropolitan mass transportation operating assistance account and
the public transportation systems operating assistance  account  thereof
in  the  manner  provided  by  subdivision eleven of section one hundred
eighty-two-a of this chapter. Provided, further that on  or  before  the
twenty-fifth  day of each month commencing with April, two thousand one,
the comptroller shall deduct the amount of six hundred twenty-five thou-
sand dollars prior to any deposit or disposition of the taxes, interest,
and penalties collected or received pursuant to such [sections]  SECTION
three  hundred  one-a  [and  three hundred one-e] and shall deposit such
amount in the dedicated fund accounts pursuant  to  subdivision  (d)  of
section  three  hundred  one-j  of this article. Provided, further, that
commencing January fifteenth, nineteen hundred  ninety-one,  and  on  or
before  the tenth day of March and the fifteenth day of June and Septem-
ber of such year, the commissioner shall, based on information  supplied
by  tax