Senate Bill S7484

2015-2016 Legislative Session

Relates to eligibility under the excelsior investment tax credit program

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 02, 2016	reported and committed to finance
May 04, 2016	referred to investigations and government operations

Votes

- Jun 2, 2016 - Investigations And Government Operations Committee Vote
  S7484
  
  Aye
  
  6
  
  Nay
  
  0
  
  Aye with Reservations
  
  2
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Investigations And Government Operations Committee Vote: Jun 2, 2016
      
      aye (6)
      
      Carlucci
      
      Golden
      
      Hoylman-Sigal
      
      Lanza
      
      Murphy
      
      Nozzolio
      
      aye wr (2)
      
      O'Mara
      
      Squadron
      
      excused (1)
      
      Diaz

2015-S7484 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §31, Tax L; amd §355, Ec Dev L
Versions Introduced in 2017-2018 Legislative Session:: S3514

2015-S7484 (ACTIVE) - Summary

Provides that a taxpayer who is qualified to claim the excelsior investment tax credit component and is also qualified to claim the Brownfield tangible property credit component can claim the excelsior investment tax credit component only to the extent that qualifying costs under the excelsior investment tax credit component are not qualifying costs under the brownfield tangible property credit component.

2015-S7484 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7484

 TITLE OF BILL :

An act to amend the tax law and the economic development law, in
relation to the excelsior investment tax credit

 PURPOSE :

To allow a company eligible for BCP credits to also be eligible for
the Excelsior investment tax credit only to the extent that Excelsior
credits provide incentives to activities excluded under the BCP, and
to declare that a BCP applicant is not precluded from claiming all
other credits under the Excelsior program.

 SUMMARY OF PROVISIONS :

Section 1: Amends section 31 of the tax law to clarify that a taxpayer
can claim the BCP tangible property credit and the Excelsior
investment tax credit only to the extent that the Excelsior credit
provides incentives not eligible under the BCP tangible property
credit.

Section 2: Provides corresponding amendments to section 355 of the
Economic Development Law.

Section 3: Effective date.

 JUSTIFICATION :

Redevelopment of contaminated real estate is extremely risky and
expensive. As a result, manufacturers that have chosen to redevelop
brownfields in New York face substantial costs over and above
developing greenfields even accounting for all eligible BCP credits as
the law existed prior to the 2015 enacted Budget.

In addition, amendments to the BCP program in 2015 have greatly
restricted the types of tangible property than qualify for the
tangible property credit. For example, prior to the 2015 amendments,
advanced manufacturing equipment could receive up to a twenty-four
percent refundable credit through the BCP. After these amendments,
only costs relating to building structures and permanent fixtures can
qualify for the BCP credit.

These unfortunate amendments have greatly reduced the attraction of
the BCP to high technology and advanced manufacturing products firms
looking to invest in New York State.

However, these types of costs for vital equipment and facilities do
qualify for the Excelsior investment tax credit pursuant to section
355 of the Economic Development Law. Although the Excelsior Credit
only provides a two percent refundable credit for these types of
property, compared to the minimum of twelve percent under the
pre-amended BCP, at least in the Excelsior program the State still
recognizes the worth of attracting manufacturers and high technology
companies and the corresponding extremely high costs of machinery and
labs for these facilities.

Finally, the bill clarifies that eligibility for the BCP in no ways
restricts eligible claims for all the other credits available under
the Excelsior program.

This bill recognizes the twin goals of sustainable and environmentally
beneficial development and the creation of high value investments and
employment in the State.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

Based on types of projects currently in the BCP program, less than $1
million a year.

 EFFECTIVE DATE :
Immediately and applies to taxable years beginning on or after January
1, 2015.

2015-S7484 (ACTIVE) - Bill Text download pdf

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

                                  7484

                            I N  S E N A T E

                               May 4, 2016
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the  tax  law  and  the  economic  development  law,  in
  relation to the excelsior investment tax credit

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision (c) of section 31 of the tax law, as amended by
section 47 of part A of chapter 59 of the laws of 2014,  is  amended  to
read as follows:
  (c)  Election of credit. A taxpayer who or which is qualified to claim
the excelsior investment tax credit component and is also  qualified  to
claim  the  investment  tax credit provided for under subdivision one of
section two hundred ten-B or subsection (a) of section six  hundred  six
of  this  chapter,  may claim either the excelsior investment tax credit
component or the investment tax credit, but not both with  regard  to  a
particular  piece  of  property. In addition, a taxpayer who or which is
qualified to claim the excelsior investment tax credit component and  is
also  qualified  to claim the brownfield tangible property credit compo-
nent under section twenty-one of this article, [as added by chapter  one
of  the  laws  of  two  thousand  three,  may claim either the excelsior
investment tax credit component or such tangible property credit  compo-
nent,  but  not both with regard to a particular piece of property.  The
election to claim the excelsior investment  tax  credit  component,  the
investment  tax credit or the brownfield tangible property credit compo-
nent, with regard to the same property, is irrevocable]  CAN  CLAIM  THE
EXCELSIOR INVESTMENT TAX CREDIT COMPONENT ONLY TO THE EXTENT THAT QUALI-
FYING  COSTS UNDER THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT ARE NOT
QUALIFYING COSTS UNDER THE BROWNFIELD TANGIBLE  PROPERTY  CREDIT  COMPO-
NENT.  NOTWITHSTANDING ANY LAW OR REGULATION TO THE CONTRARY, A TAXPAYER
QUALIFIED TO CLAIM THE BROWNFIELD  TANGIBLE  PROPERTY  CREDIT  COMPONENT
UNDER  SECTION  TWENTY-ONE  OF  THIS  ARTICLE, SHALL ALSO BE ELIGIBLE TO
CLAIM ANY OR ALL OF: (I) THE EXCELSIOR JOBS TAX CREDIT  COMPONENT;  (II)

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13993-01-6

S. 7484                             2

THE  EXCELSIOR  RESEARCH  AND  DEVELOPMENT  TAX CREDIT COMPONENT; AND/OR
(III) THE EXCELSIOR REAL PROPERTY TAX CREDIT COMPONENT.
  S  2. Subdivision 2 of section 355 of the economic development law, as
amended by section 4 of part G of chapter 61 of the  laws  of  2011,  is
amended to read as follows:
  2.  Excelsior  investment  tax  credit component. A participant in the
excelsior jobs program shall be eligible to claim a credit on  qualified
investments.  The  credit  shall  be equal to two percent of the cost or
other basis for federal income tax purposes of the qualified investment.
A participant may not claim both the  excelsior  investment  tax  credit
component  and the investment tax credit set forth in subdivision twelve
of section [two hundred ten]TWO HUNDRED TEN-B, subsection (a) of section
six hundred six[, subsection (i) of section fourteen hundred fifty-six,]
or subdivision (q) of section fifteen hundred eleven of the tax law  for
the  same  property  in  any taxable year, except that a participant may
claim both the excelsior investment tax credit component and the invest-
ment tax credit for research and development property.  In  addition,  a
taxpayer who or which is qualified to claim the excelsior investment tax
credit  component and is also qualified to claim the brownfield tangible
property credit component under section twenty-one of the tax  law  [may
claim  either  the  excelsior  investment  tax  credit component or such
tangible property credit component,  but  not  both  with  regard  to  a
particular  piece of property. A credit may not be claimed until a busi-
ness enterprise has received a certificate of tax credit, provided  that
qualified  investments  made on or after the issuance of the certificate
of eligibility but before the issuance of the certificate of tax  credit
to the business enterprise, may be claimed in the first taxable year for
which  the  business enterprise is allowed to claim the credit. Expenses
incurred prior to the date the certificate of eligibility is issued  are
not  eligible to be included in the calculation of the credit] CAN CLAIM
THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT ONLY TO  THE  EXTENT  THAT
QUALIFYING COSTS UNDER THE EXCELSIOR INVESTMENT TAX CREDIT COMPONENT ARE
NOT  QUALIFYING  COSTS  UNDER  THE  BROWNFIELD  TANGIBLE PROPERTY CREDIT
COMPONENT.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2015.

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Senate Bill S7484

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Archive: Last Bill Status - In Senate Committee Finance Committee

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Votes

Jun 2, 2016 - Investigations And Government Operations Committee Vote

Investigations And Government Operations Committee Vote: Jun 2, 2016

2015-S7484 (ACTIVE) - Details

2015-S7484 (ACTIVE) - Summary

2015-S7484 (ACTIVE) - Sponsor Memo

2015-S7484 (ACTIVE) - Bill Text download pdf

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Sponsored By

Martin J. Golden

Archive: Last Bill Status - In Senate Committee Finance Committee

Actions

Votes

2015-S7484 (ACTIVE) - Details

2015-S7484 (ACTIVE) - Summary

2015-S7484 (ACTIVE) - Sponsor Memo

2015-S7484 (ACTIVE) - Bill Text download pdf

Comments