S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5922
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 17, 2017
                                ___________
 
 Introduced  by  M. of A. KOLB, BUTLER, STEC, DiPIETRO -- Multi-Sponsored
   by -- M. of A.  BARCLAY, BLANKENBUSH, CROUCH, CURRAN,  FINCH,  FITZPA-
   TRICK,  GIGLIO,  GOODELL,  GRAF,  HAWLEY, JOHNS, McKEVITT, McLAUGHLIN,
   MONTESANO, OAKS, PALMESANO, RAIA -- read  once  and  referred  to  the
   Committee on Ways and Means

 AN  ACT  to amend the general municipal law, in relation to establishing
   the New York state cornerstone program; and to repeal article 18-B  of
   such law relating thereto (Part A); to amend the general municipal law
   and  the  tax  law,  in  relation  to  establishing the New York state
   discovery program (Part B); and to amend the tax law, in  relation  to
   net income base and in relation to certain taxes (Part C)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law components of legislation relating
 to the "New York state  cornerstone  program  and  the  New  York  state
 discovery  program".  Each  component  is wholly contained within a Part
 identified as Parts A through C. The effective date for each  particular
 provision contained within such Part is set forth in the last section of
 such Part. Any provision in any section contained within a Part, includ-
 ing  the  effective date of the Part, which makes 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.
   § 1-a. Statement of legislative findings and declaration.  It is here-
 by  found and declared that there exists within the state high unemploy-
 ment, limited new  job  creation,  a  dependence  on  public  assistance
 income,  insufficient  support for industrial and commercial businesses,
 and unnecessarily high taxes.  These  severe  conditions  require  state
 government  to  target  certain industries in order to stimulate private
 investment, private business development and job creation. It should  be
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08139-01-7

 A. 5922                             2
 
 the  public  policy  of the state to help promote the development of new
 businesses, rather than deter them with punitive regulation  and  exces-
 sive taxes. It is further found and declared that it is the public poli-
 cy of the state to achieve these goals through the mutual cooperation of
 all  levels  of  state  and local government, the business community and
 academic institutions.
 
                                  PART A

   Section 1. Article 18-B of the general municipal law is REPEALED.
   § 2. The general municipal law is amended by adding a new article 18-B
 to read as follows:
                                ARTICLE 18-B
                    NEW YORK STATE CORNERSTONE PROGRAM
 SECTION 955. NEW YORK CORNERSTONE PROGRAM ESTABLISHED.
         956. RESPONSIBILITIES OF THE COMMISSIONER.
         957. CORNERSTONE DEVELOPMENT BOARD.
         958. REPORTING REQUIREMENTS.
   § 955. NEW YORK  CORNERSTONE  PROGRAM  ESTABLISHED.  THERE  IS  HEREBY
 ESTABLISHED THE NEW YORK CORNERSTONE PROGRAM.
   §  956.  RESPONSIBILITIES  OF THE COMMISSIONER. 1. THE COMMISSIONER OF
 ECONOMIC DEVELOPMENT SHALL, IN CONSULTATION WITH  THE  DIRECTOR  OF  THE
 BUDGET,  THE COMMISSIONER OF LABOR, AND THE COMMISSIONER OF TAXATION AND
 FINANCE, PROMULGATE RULES AND REGULATIONS,  WHICH,  NOTWITHSTANDING  ANY
 PROVISIONS  TO  THE  CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT,
 MAY BE ADOPTED ON AN EMERGENCY BASIS, RELATING TO:
   (A) THE APPLICATION PROCESS;
   (B) DEFINING TYPES OF BUSINESSES ELIGIBLE, INCLUDING BUT  NOT  LIMITED
 TO MANUFACTURING, HIGH-TECH, BIO-TECH, CLEAN-TECH AND AGRI-BUSINESS;
   (C) LIMITING BUSINESSES TO TEN YEARS OF PARTICIPATION;
   (D)  CERTIFICATION  BY  THE  COMMISSIONER  FOR ELIGIBILITY OF BUSINESS
 ENTERPRISES FOR BENEFITS REFERRED  TO  IN  THIS  ARTICLE.  CRITERIA  FOR
 CERTIFICATION SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (I)  REQUIRING  A  BUSINESS TO HAVE BEEN OPERATIONAL IN NEW YORK STATE
 FOR AT LEAST TEN CONSECUTIVE YEARS PRIOR TO APPLYING TO THE  CORNERSTONE
 PROGRAM;
   (II)  REQUIRING  A BUSINESS TO SHOW PROOF THAT THEY WILL HAVE TO LOWER
 EMPLOYMENT LEVELS WITHOUT CERTIFICATION IN THE PROGRAM;
   (III) REQUIRING A BUSINESS TO  COMMIT  TO  MAINTAINING  OR  INCREASING
 CURRENT EMPLOYMENT LEVELS TO QUALIFY FOR TAX BENEFITS;
   (IV)  WHETHER  CERTIFICATION WILL HAVE THE UNDESIRED EFFECT OF CAUSING
 INDIVIDUALS TO TRANSFER FROM EXISTING EMPLOYMENT WITH  ANOTHER  BUSINESS
 ENTERPRISE  TO SIMILAR EMPLOYMENT WITH THE BUSINESS ENTERPRISE SO CERTI-
 FIED, AND TRANSFERRING EXISTING EMPLOYMENT FROM ONE OR MORE OTHER  MUNI-
 CIPALITIES, TOWNS OR VILLAGES IN THE STATE;
   (V)  WHETHER SUCH ENTERPRISE IS LIKELY TO ENHANCE THE ECONOMIC CLIMATE
 OF THE STATE; AND
   (VI) WHETHER THE COMMISSIONER OF LABOR ESTABLISHES THAT SUCH  BUSINESS
 ENTERPRISE, DURING THE TEN YEARS PRECEDING THE SUBMISSION OF AN APPLICA-
 TION  FOR  CERTIFICATION,  HAS  ENGAGED  IN A SUBSTANTIAL VIOLATION OR A
 PATTERN OF VIOLATIONS OF LAWS REGULATING UNEMPLOYMENT  INSURANCE,  WORK-
 ERS'  COMPENSATION,  PUBLIC  WORK, CHILD LABOR, EMPLOYMENT OF MINORITIES
 AND WOMEN, SAFETY AND HEALTH, OR OTHER LAWS FOR THE PROTECTION OF  WORK-
 ERS  AS  DETERMINED  BY  FINAL  JUDGMENT OF A JUDICIAL OR ADMINISTRATIVE
 PROCEEDING.

 A. 5922                             3

   2. THE COMMISSIONER OF ECONOMIC  DEVELOPMENT  SHALL,  IN  CONSULTATION
 WITH  THE  DIRECTOR  OF  THE  BUDGET, THE COMMISSIONER OF LABOR, AND THE
 COMMISSIONER OF TAXATION AND FINANCE, ESTABLISH A COST BENEFIT ANALYSIS.
   3.  THE  COMMISSIONER  OF  ECONOMIC DEVELOPMENT SHALL, IN CONSULTATION
 WITH THE DIRECTOR OF THE BUDGET, THE  COMMISSIONER  OF  LABOR,  AND  THE
 COMMISSIONER  OF  TAXATION  AND FINANCE, ESTABLISH A PROGRAM AND PROPOSE
 LEGISLATION GRANTING TAX  EXEMPTIONS  PREVIOUSLY  APPLICABLE  TO  EMPIRE
 ZONES  FOR  BUSINESS  ENTERPRISES ELIGIBLE UNDER THE CORNERSTONE PROGRAM
 ESTABLISHED PURSUANT TO THIS ARTICLE, TO THE  GOVERNOR  AND  LEGISLATURE
 WITHIN ONE HUNDRED EIGHTY DAYS FROM THE EFFECTIVE DATE OF THIS ARTICLE.
   §  957. CORNERSTONE DEVELOPMENT BOARD.  1. THE CORNERSTONE DEVELOPMENT
 BOARD IS HEREBY CREATED.
   2. SUCH BOARD SHALL  CONSIST  OF  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE,  THE  DIRECTOR OF THE BUDGET, THE COMMISSIONER OF LABOR AND TWO
 MEMBERS TO BE APPOINTED BY THE GOVERNOR; ONE MEMBER TO BE  APPOINTED  BY
 THE TEMPORARY PRESIDENT OF THE SENATE; ONE MEMBER TO BE APPOINTED BY THE
 SPEAKER  OF  THE  ASSEMBLY;  ONE  MEMBER TO BE APPOINTED BY THE MINORITY
 LEADER OF THE SENATE AND ONE MEMBER TO  BE  APPOINTED  BY  THE  MINORITY
 LEADER OF THE ASSEMBLY.
   3.  THE  GOVERNOR  SHALL  DESIGNATE  FROM AMONG THE VOTING MEMBERS THE
 CHAIR OF THE BOARD. EACH MEMBER OF THE BOARD SHALL BE ENTITLED TO DESIG-
 NATE A REPRESENTATIVE TO ATTEND MEETINGS OF THE  BOARD  IN  HIS  OR  HER
 PLACE,  AND  TO VOTE OR OTHERWISE ACT ON HIS OR HER BEHALF IN HIS OR HER
 ABSENCE.
   4. NOTICE OF SUCH DESIGNATION SHALL BE FURNISHED  IN  WRITING  TO  THE
 BOARD BY THE DESIGNATING MEMBER.
   5.  A  REPRESENTATIVE  SHALL  SERVE AT THE PLEASURE OF THE DESIGNATING
 MEMBER.
   6. A REPRESENTATIVE SHALL NOT BE AUTHORIZED TO DELEGATE ANY OF HIS  OR
 HER DUTIES OR FUNCTIONS TO ANY OTHER PERSON.
   §  958.  REPORTING  REQUIREMENTS.    1.  THE  DEPARTMENT  OF AUDIT AND
 CONTROL, THE DEPARTMENT OF TAXATION AND FINANCE AND  THE  DEPARTMENT  OF
 ECONOMIC  DEVELOPMENT  SHALL  PREPARE  REPORTS ON THE MANAGEMENT AND THE
 ECONOMIC AND FISCAL IMPACT OF THE CORNERSTONE PROGRAM.
   2. THE ANALYSIS OF THE FISCAL AND ECONOMIC IMPACT OF THE PROGRAM SHALL
 INCLUDE, BUT NOT BE LIMITED TO: A REVIEW OF THE COST  OF  PROVIDING  THE
 TAX  BENEFITS  REFERRED  TO  IN  THIS  ARTICLE; PROGRESS OF THE PROGRAM;
 NUMBER OF TAX CREDITS CLAIMED BY EACH CERTIFIED BUSINESS; NUMBER OF JOBS
 CREATED AND/OR RETAINED BY  EACH  BUSINESS  AND  ALL  OTHER  INFORMATION
 REQUESTED AND NOT PROHIBITED BY LAW.
   3.  SUCH REPORTS SHALL BE TRANSMITTED TO THE GOVERNOR AND THE LEGISLA-
 TURE BY SEPTEMBER FIRST, TWO THOUSAND EIGHTEEN AND EVERY YEAR THEREAFTER
 AND SHALL BE POSTED ONLINE FOR FULL PUBLIC DISCLOSURE.
   § 3. This act shall take effect immediately; provided,  however,  that
 any  rules and regulations necessary to carry out the provisions of this
 act shall be promulgated before such effective date.
 
                                  PART B
 
   Section 1. This act shall be known and may be cited as the  "New  York
 state discovery act".
   §  2.    The  general municipal law is amended by adding a new article
 18-D to read as follows:
                                ARTICLE 18-D
                     NEW YORK STATE DISCOVERY PROGRAM
 SECTION 972. NEW YORK STATE DISCOVERY PROGRAM.

 A. 5922                             4
 
         973. JOB DEVELOPMENT FUND.
   § 972. NEW YORK STATE DISCOVERY PROGRAM. 1. THE NEW YORK STATE DISCOV-
 ERY PROGRAM IS HEREBY ESTABLISHED.
   2.  THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL, AFTER CONSULTATION
 WITH THE DIRECTOR OF THE BUDGET, THE  COMMISSIONER  OF  LABOR,  AND  THE
 COMMISSIONER  OF TAXATION AND FINANCE, PROMULGATE RULES AND REGULATIONS,
 WHICH, NOTWITHSTANDING ANY PROVISIONS  TO  THE  CONTRARY  IN  THE  STATE
 ADMINISTRATIVE  PROCEDURE  ACT,  MAY  BE  ADOPTED ON AN EMERGENCY BASIS,
 RELATING TO:
   (A) THE APPLICATION PROCESS;
   (B) DEFINING TYPES OF BUSINESSES ELIGIBLE, INCLUDING BUT  NOT  LIMITED
 TO MANUFACTURING, HIGH-TECH, BIO-TECH, CLEAN-TECH AND AGRI-BUSINESS;
   (C) LIMITING BUSINESSES TO TEN YEARS OF PARTICIPATION;
   (D)  CERTIFICATION  BY  THE COMMISSIONER OF ECONOMIC DEVELOPMENT AS TO
 THE ELIGIBILITY OF BUSINESS ENTERPRISES FOR BENEFITS REFERRED TO IN THIS
 SECTION, WHICH SHALL BE GOVERNED BY CRITERIA INCLUDING, BUT NOT  LIMITED
 TO:
   (I)  REQUIRING  AN  ELIGIBLE  BUSINESS TO BE A START-UP BUSINESS, OR A
 BUSINESS OPERATING IN THE STATE FOR TWO YEARS OR LESS;
   (II) A BUSINESS MUST OFFER INTERNSHIPS TO LOCAL HIGH SCHOOL  STUDENTS,
 BOCES  STUDENTS AND COLLEGE STUDENTS PER A PLAN DEVELOPED BY THE COMMIS-
 SIONER OF ECONOMIC DEVELOPMENT;
   (III) A BUSINESS MUST COMMIT TO INCREASING CURRENT  EMPLOYMENT  LEVELS
 TO QUALIFY FOR TAX BENEFITS;
   (IV)  WHETHER  CERTIFICATION WILL HAVE THE UNDESIRED EFFECT OF CAUSING
 INDIVIDUALS TO TRANSFER FROM EXISTING EMPLOYMENT WITH  ANOTHER  BUSINESS
 ENTERPRISE  TO SIMILAR EMPLOYMENT WITH THE BUSINESS ENTERPRISE SO CERTI-
 FIED, AND TRANSFERRING EXISTING EMPLOYMENT FROM ONE OR MORE OTHER  MUNI-
 CIPALITIES, TOWNS OR VILLAGES IN THE STATE;
   (V)  WHETHER SUCH ENTERPRISE IS LIKELY TO ENHANCE THE ECONOMIC CLIMATE
 OF THE STATE;
   (VI) WHETHER THE COMMISSIONER OF LABOR ESTABLISHES THAT SUCH  BUSINESS
 ENTERPRISE, DURING THE TWO YEARS PRECEDING THE SUBMISSION OF AN APPLICA-
 TION  FOR  CERTIFICATION,  HAS  ENGAGED  IN A SUBSTANTIAL VIOLATION OR A
 PATTERN OF VIOLATIONS OF LAWS REGULATING UNEMPLOYMENT  INSURANCE,  WORK-
 ERS'  COMPENSATION,  PUBLIC  WORK, CHILD LABOR, EMPLOYMENT OF MINORITIES
 AND WOMEN, SAFETY AND HEALTH, OR OTHER LAWS FOR THE PROTECTION OF  WORK-
 ERS  AS  DETERMINED  BY  FINAL  JUDGMENT OF A JUDICIAL OR ADMINISTRATIVE
 PROCEEDING; AND
   (VII) WHETHER SUCH BUSINESS MEETS THE REQUIREMENTS OF THE COST BENEFIT
 ANALYSIS AS ESTABLISHED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT.
   3. THE DEPARTMENT OF AUDIT AND CONTROL, THE DEPARTMENT OF TAXATION AND
 FINANCE AND THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL PREPARE REPORTS
 ON THE MANAGEMENT AND THE ECONOMIC AND FISCAL IMPACT  OF  THE  DISCOVERY
 PROGRAM.  THE  ANALYSIS OF THE FISCAL AND ECONOMIC IMPACT OF THE PROGRAM
 SHALL INCLUDE, BUT NOT BE LIMITED TO: A REVIEW OF THE COST OF  PROVIDING
 THE  TAX  BENEFITS REFERRED TO IN THIS ARTICLE; PROGRESS OF THE PROGRAM;
 NUMBER OF TAX CREDITS CLAIMED BY EACH CERTIFIED BUSINESS; NUMBER OF JOBS
 CREATED BY EACH BUSINESS AND ALL OTHER  INFORMATION  REQUESTED  AND  NOT
 PROHIBITED BY LAW. SUCH REPORTS SHALL BE TRANSMITTED TO THE GOVERNOR AND
 THE LEGISLATURE BY SEPTEMBER FIRST, TWO THOUSAND NINETEEN AND EVERY YEAR
 THEREAFTER AND SHALL BE POSTED ONLINE FOR FULL PUBLIC DISCLOSURE.
   4.  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL PROVIDE GRANTS OF UP
 TO TWO THOUSAND  DOLLARS  FOR  EVERY  INTERNSHIP  DEVELOPED  UNDER  THIS
 PROGRAM,  TO  BE  PAID  FOR  OUT OF THE JOB DEVELOPMENT FUND ESTABLISHED
 PURSUANT TO THIS ARTICLE. SUCH GRANT ALLOCATIONS SHALL BE DIVIDED EVENLY

 A. 5922                             5
 
 BETWEEN THE CERTIFIED BUSINESS  AND  THE  CORRESPONDING  INSTITUTION  OF
 HIGHER  EDUCATION TO COVER COSTS ASSOCIATED WITH THE DEVELOPMENT OF SUCH
 INTERNSHIPS.
   §  973.  JOB  DEVELOPMENT  FUND. 1. THERE IS HEREBY ESTABLISHED IN THE
 JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE  STATE
 COMPTROLLER A FUND TO BE KNOWN AS THE "JOB DEVELOPMENT FUND".
   2.  THE  FUND SHALL CONSIST OF MONIES APPROPRIATED FOR THE DIVISION OF
 SCIENCE, TECHNOLOGY AND INNOVATION.
   3. MONEYS OF THE FUND SHALL BE EXPENDED FOR THE PURPOSES  OF  CARRYING
 OUT  THE PROVISIONS OF SECTION NINE HUNDRED SEVENTY-TWO OF THIS ARTICLE.
 MONEYS SHALL BE PAID OUT OF THE FUND ON THE AUDIT  AND  WARRANT  OF  THE
 STATE COMPTROLLER ON VOUCHERS APPROVED BY THE DIVISION OF SCIENCE, TECH-
 NOLOGY  AND  INNOVATION.  ANY  INTEREST  RECEIVED  BY THE COMPTROLLER ON
 MONEYS ON DEPOSIT IN THE JOB DEVELOPMENT FUND SHALL BE RETAINED  IN  AND
 BECOME PART OF SUCH FUND.
   §  3.  The  tax law is amended by adding a new section 15-a to read as
 follows:
   § 15-A. DISCOVERY ZONE PROPERTY TAX CREDIT. FOR A BUSINESS  ENTERPRISE
 WHICH  IS  FIRST CERTIFIED UNDER SECTION NINE HUNDRED SEVENTY-TWO OF THE
 GENERAL MUNICIPAL LAW ON OR AFTER JULY FIRST, TWO THOUSAND EIGHTEEN, THE
 CREDIT SHALL BE FOR A PERIOD OF TEN YEARS AND SHALL  NOT  EXCEED  THIRTY
 PERCENT  OF THE ELIGIBLE REAL PROPERTY TAXES PAID IN THE CURRENT TAXABLE
 YEAR OF ELIGIBILITY.
   § 4. Section 210-B of the tax law is amended by adding two new  subdi-
 visions 52 and 53 to read as follows:
   52.  DISCOVERY  INVESTMENT  CREDIT.  (A) A TAXPAYER SHALL BE ALLOWED A
 CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX  IMPOSED
 BY  THIS  ARTICLE  WHERE  THE  TAXPAYER  HAS  BEEN CERTIFIED PURSUANT TO
 SECTION NINE HUNDRED SEVENTY-TWO OF THE  GENERAL  MUNICIPAL  LAW.    THE
 AMOUNT OF SUCH CREDIT SHALL BE TWENTY PERCENT OF THE COST OR OTHER BASIS
 FOR  FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPERTY AND OTHER
 TANGIBLE PROPERTY, INCLUDING  BUILDINGS  AND  STRUCTURAL  COMPONENTS  OF
 BUILDINGS,  DESCRIBED  IN PARAGRAPH (B) OF THIS SUBDIVISION, BUT ONLY IF
 THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION OF SUCH  PROP-
 ERTY  OCCURRED OR WAS COMMENCED ON OR AFTER THE DATE OF SUCH DESIGNATION
 AND PRIOR TO THE EXPIRATION THEREOF. PROVIDED, HOWEVER, THAT IN THE CASE
 OF AN ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR  ERECTION  WHICH  WAS
 COMMENCED  DURING  SUCH  PERIOD AND CONTINUED OR COMPLETED SUBSEQUENTLY,
 THE CREDIT SHALL BE TWENTY PERCENT OF THE PORTION OF THE COST  OR  OTHER
 BASIS FOR FEDERAL INCOME TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD, WHICH
 PORTION  SHALL  BE  ASCERTAINED  BY  MULTIPLYING SUCH COST OR BASIS BY A
 FRACTION THE NUMERATOR OF  WHICH  SHALL  BE  THE  EXPENDITURES  PAID  OR
 INCURRED  DURING  SUCH  PERIOD  FOR SUCH PURPOSES AND THE DENOMINATOR OF
 WHICH SHALL BE THE TOTAL OF ALL EXPENDITURES PAID OR INCURRED  FOR  SUCH
 ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION.
   (B)  A  CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO
 TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
 INGS AND STRUCTURAL COMPONENTS OF BUILDINGS WHICH: (1)  ARE  DEPRECIABLE
 PURSUANT  TO  SECTION  ONE  HUNDRED  SIXTY-SEVEN OF THE INTERNAL REVENUE
 CODE, (2) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (3) ARE ACQUIRED  BY
 PURCHASE  AS  DEFINED  IN  SECTION  ONE  HUNDRED SEVENTY-NINE (D) OF THE
 INTERNAL REVENUE CODE, AND (4) ARE (I) PRINCIPALLY USED BY THE  TAXPAYER
 IN  THE  PRODUCTION  OF  GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING,
 REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORI-
 CULTURE, VITICULTURE OR COMMERCIAL FISHING, (II) INDUSTRIAL WASTE TREAT-
 MENT FACILITIES OR AIR POLLUTION CONTROL FACILITIES USED IN THE  TAXPAY-

 A. 5922                             6
 
 ER'S  TRADE  OR  BUSINESS, (III) RESEARCH AND DEVELOPMENT PROPERTY, (IV)
 PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR BUSI-
 NESS AS A BROKER OR DEALER IN  CONNECTION  WITH  THE  PURCHASE  OR  SALE
 (WHICH  SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION,  OR  TRANSFER)  OF  STOCKS,
 BONDS  OR  OTHER  SECURITIES AS DEFINED IN SECTION FOUR HUNDRED SEVENTY-
 FIVE (C)(2) OF THE INTERNAL REVENUE CODE, OR OF COMMODITIES  AS  DEFINED
 IN  SECTION  FOUR HUNDRED SEVENTY-FIVE (E) OF THE INTERNAL REVENUE CODE,
 OR (V) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE  TAXPAYER'S  TRADE
 OR  BUSINESS  OF  PROVIDING INVESTMENT ADVISORY SERVICES FOR A REGULATED
 INVESTMENT COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE OF  THE
 INTERNAL  REVENUE CODE, OR LENDING, LOAN ARRANGEMENT OR LOAN ORIGINATION
 SERVICES TO CUSTOMERS IN CONNECTION WITH THE  PURCHASE  OR  SALE  (WHICH
 SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO, ASSUMP-
 TION,  OFFSET,  ASSIGNMENT,  TERMINATION,  OR TRANSFER) OF SECURITIES AS
 DEFINED IN SECTION FOUR HUNDRED  SEVENTY-FIVE  (C)(2)  OF  THE  INTERNAL
 REVENUE CODE. FOR PURPOSES OF CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH,
 PROPERTY  PURCHASED  BY  A  TAXPAYER AFFILIATED WITH A REGULATED BROKER,
 DEALER OR REGISTERED INVESTMENT ADVISER IS ALLOWED A CREDIT  UNDER  THIS
 SUBDIVISION  IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED BROKER,
 DEALER OR REGISTERED INVESTMENT ADVISER IN ACCORDANCE WITH THIS SUBDIVI-
 SION. FOR PURPOSES OF DETERMINING IF THE PROPERTY IS PRINCIPALLY USED IN
 QUALIFYING USES, THE USES BY THE TAXPAYER DESCRIBED IN CLAUSES (IV)  AND
 (V) OF THIS SUBPARAGRAPH MAY BE AGGREGATED. IN ADDITION, THE USES BY THE
 TAXPAYER,  ITS  AFFILIATED  REGULATED  BROKER,  DEALER,  AND  REGISTERED
 INVESTMENT ADVISER UNDER EITHER OR BOTH OF THOSE CLAUSES MAY  BE  AGGRE-
 GATED.  PROVIDED,  HOWEVER,  A  TAXPAYER SHALL NOT BE ALLOWED THE CREDIT
 PROVIDED BY CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH UNLESS (I)  EIGHTY
 PERCENT  OR  MORE  OF  THE  EMPLOYEES  PERFORMING THE ADMINISTRATIVE AND
 SUPPORT FUNCTIONS RESULTING FROM OR RELATED TO THE  QUALIFYING  USES  OF
 SUCH  EQUIPMENT ARE LOCATED IN THIS STATE, OR (II) THE AVERAGE NUMBER OF
 EMPLOYEES THAT PERFORM THE ADMINISTRATIVE AND SUPPORT FUNCTIONS  RESULT-
 ING  FROM  OR  RELATED  TO THE QUALIFYING USES OF SUCH EQUIPMENT AND ARE
 LOCATED IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH  THE  CREDIT  IS
 CLAIMED  IS  EQUAL TO OR GREATER THAN NINETY-FIVE PERCENT OF THE AVERAGE
 NUMBER OF EMPLOYEES THAT PERFORM THESE FUNCTIONS AND ARE LOCATED IN THIS
 STATE DURING THE THIRTY-SIX MONTHS IMMEDIATELY PRECEDING  THE  YEAR  FOR
 WHICH THE CREDIT IS CLAIMED, OR (III) THE NUMBER OF EMPLOYEES LOCATED IN
 THIS  STATE  DURING  THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS
 EQUAL TO OR GREATER THAN NINETY  PERCENT  OF  THE  NUMBER  OF  EMPLOYEES
 LOCATED  IN  THIS STATE ON DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINE-
 TY-EIGHT OR, IF THE TAXPAYER WAS NOT A CALENDAR YEAR TAXPAYER  IN  NINE-
 TEEN HUNDRED NINETY-EIGHT, THE LAST DAY OF ITS FIRST TAXABLE YEAR ENDING
 AFTER  DECEMBER  THIRTY-FIRST,  NINETEEN  HUNDRED  NINETY-EIGHT.  IF THE
 TAXPAYER BECOMES SUBJECT TO TAX IN THIS STATE  AFTER  THE  TAXABLE  YEAR
 BEGINNING  IN  NINETEEN  HUNDRED  NINETY-EIGHT, THEN THE TAXPAYER IS NOT
 REQUIRED TO SATISFY  THE  EMPLOYMENT  TEST  PROVIDED  IN  THE  PRECEDING
 SENTENCE  OF  THIS SUBPARAGRAPH FOR ITS FIRST TAXABLE YEAR. FOR PURPOSES
 OF ITEM (III) OF THIS CLAUSE, THE EMPLOYMENT TEST WILL BE BASED  ON  THE
 NUMBER  OF  EMPLOYEES LOCATED IN THIS STATE ON THE LAST DAY OF THE FIRST
 TAXABLE YEAR THE TAXPAYER IS SUBJECT TO TAX IN THIS STATE. IF  THE  USES
 OF  THE PROPERTY MUST BE AGGREGATED TO DETERMINE WHETHER THE PROPERTY IS
 PRINCIPALLY USED IN QUALIFYING USES, THEN EITHER  EACH  AFFILIATE  USING
 THE  PROPERTY  MUST SATISFY THIS EMPLOYMENT TEST OR THIS EMPLOYMENT TEST
 MUST BE SATISFIED THROUGH  THE  AGGREGATION  OF  THE  EMPLOYEES  OF  THE
 TAXPAYER,  ITS  AFFILIATED  REGULATED  BROKER,  DEALER,  AND  REGISTERED

 A. 5922                             7
 
 INVESTMENT ADVISER USING THE PROPERTY. FOR PURPOSES OF THIS SUBDIVISION,
 THE TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY.  FOR  PURPOSES  OF  THIS
 PARAGRAPH, MANUFACTURING SHALL MEAN THE PROCESS OF WORKING RAW MATERIALS
 INTO  WARES  SUITABLE FOR  USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR
 NEW COMBINATION TO MATTER WHICH ALREADY HAS GONE THROUGH SOME ARTIFICIAL
 PROCESS BY THE USE OF MACHINERY, TOOLS,  APPLIANCES  AND  OTHER  SIMILAR
 EQUIPMENT.  PROPERTY  USED  IN  THE  PRODUCTION  OF  GOODS SHALL INCLUDE
 MACHINERY, EQUIPMENT OR OTHER TANGIBLE  PROPERTY  WHICH  IS  PRINCIPALLY
 USED  IN  THE  REPAIR AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR OTHER
 TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND  SHALL
 INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERATION, INCLUDING STOR-
 AGE  OF  MATERIAL  TO BE USED IN PRODUCTION AND OF THE PRODUCTS THAT ARE
 PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE  TERMS  "INDUSTRIAL  WASTE
 TREATMENT  FACILITIES", "AIR POLLUTION CONTROL FACILITIES" AND "RESEARCH
 AND DEVELOPMENT PROPERTY" SHALL HAVE THE MEANINGS  ASCRIBED  THERETO  BY
 CLAUSES (II) AND (III), RESPECTIVELY, OF SUBPARAGRAPH FOUR OF THIS PARA-
 GRAPH,  AND THE PROVISIONS OF SUBPARAGRAPH THREE OF THIS PARAGRAPH SHALL
 APPLY.
   (C) A TAXPAYER SHALL NOT BE ALLOWED A CREDIT  UNDER  THIS  SUBDIVISION
 WITH  RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROP-
 ERTY, INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS,  WHICH
 IT  LEASES  TO  ANY  OTHER PERSON OR CORPORATION EXCEPT WHERE A TAXPAYER
 LEASES PROPERTY TO AN AFFILIATED REGULATED BROKER, DEALER, OR REGISTERED
 INVESTMENT ADVISER THAT USES SUCH PROPERTY  IN  ACCORDANCE  WITH  CLAUSE
 (IV)  OR  (V) OF SUBPARAGRAPH FOUR OF PARAGRAPH (B) OF THIS SUBDIVISION.
 FOR PURPOSES OF THE PRECEDING SENTENCE, ANY  CONTRACT  OR  AGREEMENT  TO
 LEASE  OR RENT OR FOR A LICENSE TO USE SUCH PROPERTY SHALL BE CONSIDERED
 A LEASE. PROVIDED, HOWEVER, IN DETERMINING WHETHER A TAXPAYER  SHALL  BE
 ALLOWED  A  CREDIT UNDER THIS SUBDIVISION WITH RESPECT TO SUCH PROPERTY,
 ANY ELECTION  MADE  WITH  RESPECT  TO  SUCH  PROPERTY  PURSUANT  TO  THE
 PROVISIONS  OF  PARAGRAPH EIGHT OF SUBSECTION (F) OF SECTION ONE HUNDRED
 SIXTY-EIGHT OF THE INTERNAL REVENUE  CODE,  AS  SUCH  PARAGRAPH  WAS  IN
 EFFECT  FOR  AGREEMENTS  ENTERED  INTO  PRIOR TO JANUARY FIRST, NINETEEN
 HUNDRED EIGHTY-FOUR, SHALL BE DISREGARDED.
   (D) IF THE AMOUNT OF CREDIT ALLOWED UNDER  THIS  SUBDIVISION  FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY  BE  DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. ANY REFUND PAID PURSUANT
 TO  THIS  PARAGRAPH  SHALL BE DEEMED TO BE A REFUND OF AN OVERPAYMENT OF
 TAX AS PROVIDED IN SECTION  SIX  HUNDRED  EIGHTY-SIX  OF  THIS  CHAPTER,
 PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   53. DISCOVERY WAGE TAX CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A CRED-
 IT,  TO  BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY
 THIS ARTICLE, WHERE THE TAXPAYER HAS BEEN CERTIFIED PURSUANT TO  SECTION
 NINE  HUNDRED  SEVENTY-TWO  OF  THE GENERAL MUNICIPAL LAW. THE AMOUNT OF
 SUCH CREDIT SHALL BE AS PRESCRIBED IN PARAGRAPH (C) OF THIS SUBDIVISION.
   (B) "DISCOVERY WAGES" MEANS WAGES PAID BY THE TAXPAYER  FOR  FULL-TIME
 EMPLOYMENT  DURING A TAXABLE YEAR, PROVIDED THAT THOSE WAGES ARE PAID BY
 A CERTIFIED BUSINESS AS DEFINED BY THE COMMISSIONER OF ECONOMIC DEVELOP-
 MENT AS REQUIRED IN HIS OR HER RESPONSIBILITIES.
   (C) THE CREDIT PROVIDED IN THIS SUBDIVISION  SHALL  BE  EQUAL  TO  THE
 PRODUCT  OF  THE  GROSS  WAGES  PAID  AND SIX AND EIGHTY-FIVE HUNDREDTHS
 PERCENT FOR EACH NET NEW JOB CREATED DURING THE TAXABLE YEAR.
   (D) "NET NEW JOB" SHALL BE DEFINED AS EACH JOB THAT EXCEEDS THE  AVER-
 AGE  NUMBER  OF  INDIVIDUALS  EMPLOYED  FULL-TIME BY THE TAXPAYER IN THE
 PREVIOUS TAXABLE YEAR.

 A. 5922                             8
 
   (E) IF THE AMOUNT OF THIS CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
 UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL EXCEED THE  TAXPAYER'S
 TAX  FOR  SUCH  YEAR,  THE  EXCESS, AS WELL AS ANY PART OF THE CREDIT OR
 CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED  FROM  THE
 TAX OTHERWISE DUE BY REASON OF PARAGRAPH (C) OF THIS SUBDIVISION, MAY BE
 CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE
 TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   §  5.  Section  606  of  the  tax  law  is  amended  by adding two new
 subsections (j-2) and (j-3) to read as follows:
   (J-2) DISCOVERY INVESTMENT CREDIT. (1) A TAXPAYER SHALL BE  ALLOWED  A
 CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
 BY THIS ARTICLE WHERE  THE  TAXPAYER  HAS  BEEN  CERTIFIED  PURSUANT  TO
 SECTION  NINE  HUNDRED  SEVENTY-TWO  OF  THE  GENERAL MUNICIPAL LAW. THE
 AMOUNT OF SUCH CREDIT SHALL BE TWENTY PERCENT OF THE COST OR OTHER BASIS
 FOR FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPERTY AND  OTHER
 TANGIBLE  PROPERTY,  INCLUDING  BUILDINGS  AND  STRUCTURAL COMPONENTS OF
 BUILDINGS, DESCRIBED IN PARAGRAPH TWO OF THIS SUBSECTION,  BUT  ONLY  IF
 THE  ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION OF SUCH PROP-
 ERTY OCCURRED OR WAS COMMENCED ON OR AFTER THE DATE OF SUCH  DESIGNATION
 AND PRIOR TO THE EXPIRATION THEREOF. PROVIDED, HOWEVER, THAT IN THE CASE
 OF  AN  ACQUISITION,  CONSTRUCTION, RECONSTRUCTION OR ERECTION WHICH WAS
 COMMENCED DURING SUCH PERIOD AND CONTINUED  OR  COMPLETED  SUBSEQUENTLY,
 THE  CREDIT  SHALL BE TWENTY PERCENT OF THE PORTION OF THE COST OR OTHER
 BASIS FOR FEDERAL INCOME TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD, WHICH
 PORTION SHALL BE ASCERTAINED BY MULTIPLYING SUCH  COST  OR  BASIS  BY  A
 FRACTION  THE  NUMERATOR  OF  WHICH  SHALL  BE  THE EXPENDITURES PAID OR
 INCURRED DURING SUCH PERIOD FOR SUCH PURPOSES  AND  THE  DENOMINATOR  OF
 WHICH  SHALL  BE THE TOTAL OF ALL EXPENDITURES PAID OR INCURRED FOR SUCH
 ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION.
   (2) A CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION  WITH  RESPECT  TO
 TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
 INGS  AND  STRUCTURAL COMPONENTS OF BUILDINGS WHICH: (A) ARE DEPRECIABLE
 PURSUANT TO SECTION ONE HUNDRED  SIXTY-SEVEN  OF  THE  INTERNAL  REVENUE
 CODE,  (B) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (C) ARE ACQUIRED BY
 PURCHASE AS DEFINED IN SECTION  ONE  HUNDRED  SEVENTY-NINE  (D)  OF  THE
 INTERNAL  REVENUE CODE, AND (D) ARE (I) PRINCIPALLY USED BY THE TAXPAYER
 IN THE PRODUCTION OF GOODS  BY  MANUFACTURING,  PROCESSING,  ASSEMBLING,
 REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORI-
 CULTURE, VITICULTURE OR COMMERCIAL FISHING, (II) INDUSTRIAL WASTE TREAT-
 MENT  FACILITIES OR AIR POLLUTION CONTROL FACILITIES USED IN THE TAXPAY-
 ER'S TRADE OR BUSINESS, (III) RESEARCH AND  DEVELOPMENT  PROPERTY,  (IV)
 PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR BUSI-
 NESS  AS  A  BROKER  OR  DEALER  IN CONNECTION WITH THE PURCHASE OR SALE
 (WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING  INTO,
 ASSUMPTION,  OFFSET,  ASSIGNMENT,  TERMINATION,  OR TRANSFER) OF STOCKS,
 BONDS OR OTHER SECURITIES AS DEFINED IN SECTION  FOUR  HUNDRED  SEVENTY-
 FIVE  (C)(2)  OF THE INTERNAL REVENUE CODE, OR OF COMMODITIES AS DEFINED
 IN SECTION FOUR HUNDRED SEVENTY-FIVE (E) OF THE INTERNAL  REVENUE  CODE,
 OR  (V)  PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE
 OR BUSINESS OF PROVIDING  INVESTMENT  ADVISORY  SERVICES  FOR  REGULATED
 INVESTMENT  COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE OF THE
 INTERNAL REVENUE CODE, OR LENDING, LOAN ARRANGEMENT OR LOAN  ORIGINATION
 SERVICES  TO  CUSTOMERS  IN  CONNECTION WITH THE PURCHASE OR SALE (WHICH
 SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO, ASSUMP-
 TION, OFFSET, ASSIGNMENT, TERMINATION, OR  TRANSFER)  OF  SECURITIES  AS
 DEFINED  IN  SECTION  FOUR  HUNDRED  SEVENTY-FIVE(C)(2)  OF THE INTERNAL

 A. 5922                             9
 
 REVENUE CODE. FOR PURPOSES OF CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH,
 PROPERTY PURCHASED BY A TAXPAYER AFFILIATED  WITH  A  REGULATED  BROKER,
 DEALER  OR  REGISTERED INVESTMENT ADVISER IS ALLOWED A CREDIT UNDER THIS
 SUBSECTION  IF  THE PROPERTY IS USED BY ITS AFFILIATED REGULATED BROKER,
 DEALER  OR  REGISTERED  INVESTMENT  ADVISER  IN  ACCORDANCE  WITH   THIS
 SUBSECTION.  FOR  PURPOSES OF DETERMINING IF THE PROPERTY IS PRINCIPALLY
 USED IN QUALIFYING USES, THE USES BY THE TAXPAYER DESCRIBED  IN  CLAUSES
 (IV)  AND  (V)  OF THIS SUBPARAGRAPH MAY BE AGGREGATED. IN ADDITION, THE
 USES BY THE TAXPAYER,  ITS  AFFILIATED  REGULATED  BROKER,  DEALER,  AND
 REGISTERED  INVESTMENT ADVISER UNDER EITHER OR BOTH OF THOSE CLAUSES MAY
 BE AGGREGATED. PROVIDED, HOWEVER, A TAXPAYER SHALL NOT  BE  ALLOWED  THE
 CREDIT  PROVIDED BY CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH UNLESS (I)
 EIGHTY PERCENT OR MORE OF THE EMPLOYEES  PERFORMING  THE  ADMINISTRATIVE
 AND  SUPPORT  FUNCTIONS RESULTING FROM OR RELATED TO THE QUALIFYING USES
 OF SUCH EQUIPMENT ARE LOCATED IN THIS STATE, OR (II) THE AVERAGE  NUMBER
 OF  EMPLOYEES  THAT  PERFORM  THE  ADMINISTRATIVE  AND SUPPORT FUNCTIONS
 RESULTING FROM OR RELATED TO THE QUALIFYING USES OF SUCH  EQUIPMENT  AND
 ARE  LOCATED  IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT
 IS CLAIMED IS EQUAL TO OR GREATER THAN NINETY-FIVE PERCENT OF THE  AVER-
 AGE  NUMBER OF EMPLOYEES THAT PERFORM THESE FUNCTIONS AND ARE LOCATED IN
 THIS STATE DURING THE THIRTY-SIX MONTHS IMMEDIATELY PRECEDING  THE  YEAR
 FOR  WHICH  THE  CREDIT  IS  CLAIMED,  OR  (III) THE NUMBER OF EMPLOYEES
 LOCATED IN THIS STATE DURING THE TAXABLE YEAR FOR WHICH  THE  CREDIT  IS
 CLAIMED  IS  EQUAL  TO  OR  GREATER THAN NINETY PERCENT OF THE NUMBER OF
 EMPLOYEES LOCATED IN  THIS  STATE  ON  DECEMBER  THIRTY-FIRST,  NINETEEN
 HUNDRED NINETY-EIGHT OR, IF THE TAXPAYER WAS NOT A CALENDAR YEAR TAXPAY-
 ER  IN  NINETEEN HUNDRED NINETY-EIGHT, THE LAST DAY OF ITS FIRST TAXABLE
 YEAR ENDING AFTER DECEMBER THIRTY-FIRST, NINETEEN HUNDRED  NINETY-EIGHT.
 IF  THE  TAXPAYER BECOMES SUBJECT TO TAX IN THIS STATE AFTER THE TAXABLE
 YEAR BEGINNING IN NINETEEN HUNDRED NINETY-EIGHT, THEN  THE  TAXPAYER  IS
 NOT  REQUIRED  TO  SATISFY THE EMPLOYMENT TEST PROVIDED IN THE PRECEDING
 SENTENCE OF THIS SUBPARAGRAPH FOR ITS FIRST TAXABLE YEAR.  FOR  PURPOSES
 OF  ITEM  (III) OF THIS CLAUSE, THE EMPLOYMENT TEST WILL BE BASED ON THE
 NUMBER OF EMPLOYEES LOCATED IN THIS STATE ON THE LAST DAY OF  THE  FIRST
 TAXABLE  YEAR  THE TAXPAYER IS SUBJECT TO TAX IN THIS STATE. IF THE USES
 OF THE PROPERTY MUST BE AGGREGATED TO DETERMINE WHETHER THE PROPERTY  IS
 PRINCIPALLY  USED  IN  QUALIFYING USES, THEN EITHER EACH AFFILIATE USING
 THE PROPERTY MUST SATISFY THIS EMPLOYMENT TEST OR THIS  EMPLOYMENT  TEST
 MUST  BE  SATISFIED  THROUGH  THE  AGGREGATION  OF  THE EMPLOYEES OF THE
 TAXPAYER,  ITS  AFFILIATED  REGULATED  BROKER,  DEALER,  AND  REGISTERED
 INVESTMENT  ADVISOR USING THE PROPERTY. FOR PURPOSES OF THIS SUBSECTION,
 THE TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY.  FOR  PURPOSES  OF  THIS
 PARAGRAPH, MANUFACTURING SHALL MEAN THE PROCESS OF WORKING RAW MATERIALS
 INTO  WARES  SUITABLE  FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR
 NEW COMBINATION TO MATTER WHICH ALREADY HAS GONE THROUGH SOME ARTIFICIAL
 PROCESS BY THE USE OF MACHINERY, TOOLS,  APPLIANCES  AND  OTHER  SIMILAR
 EQUIPMENT.  PROPERTY  USED  IN  THE  PRODUCTION  OF  GOODS SHALL INCLUDE
 MACHINERY, EQUIPMENT OR OTHER TANGIBLE  PROPERTY  WHICH  IS  PRINCIPALLY
 USED  IN  THE  REPAIR AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR OTHER
 TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND  SHALL
 INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERATION, INCLUDING STOR-
 AGE  OF  MATERIAL  TO BE USED IN PRODUCTION AND OF THE PRODUCTS THAT ARE
 PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE  TERMS  "INDUSTRIAL  WASTE
 TREATMENT  FACILITIES", "AIR POLLUTION CONTROL FACILITIES" AND "RESEARCH
 AND DEVELOPMENT PROPERTY" SHALL HAVE THE MEANINGS  ASCRIBED  THERETO  BY

 A. 5922                            10
 
 CLAUSES  (II) AND (III), RESPECTIVELY, OF SUBPARAGRAPH (D) OF THIS PARA-
 GRAPH, AND THE PROVISIONS OF SUBPARAGRAPH (C) OF THIS PARAGRAPH.
   (3)  A  TAXPAYER  SHALL  NOT BE ALLOWED A CREDIT UNDER THIS SUBSECTION
 WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE  PROP-
 ERTY,  INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
 IT LEASES TO ANY OTHER PERSON OR CORPORATION  EXCEPT  WHERE  A  TAXPAYER
 LEASES PROPERTY TO AN AFFILIATED REGULATED BROKER, DEALER, OR REGISTERED
 INVESTMENT  ADVISER  THAT  USES  SUCH PROPERTY IN ACCORDANCE WITH CLAUSE
 (IV) OR (V) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBSECTION. FOR
 PURPOSES OF THE PRECEDING SENTENCE, ANY CONTRACT OR AGREEMENT  TO  LEASE
 OR  RENT  OR  FOR  A  LICENSE TO USE SUCH PROPERTY SHALL BE CONSIDERED A
 LEASE. PROVIDED, HOWEVER, IN DETERMINING WHETHER  A  TAXPAYER  SHALL  BE
 ALLOWED  A  CREDIT  UNDER THIS SUBSECTION WITH RESPECT TO SUCH PROPERTY,
 ANY ELECTION  MADE  WITH  RESPECT  TO  SUCH  PROPERTY  PURSUANT  TO  THE
 PROVISIONS  OF  PARAGRAPH EIGHT OF SUBSECTION (F) OF SECTION ONE HUNDRED
 SIXTY-EIGHT OF THE INTERNAL REVENUE  CODE,  AS  SUCH  PARAGRAPH  WAS  IN
 EFFECT  FOR  AGREEMENTS  ENTERED  INTO  PRIOR TO JANUARY FIRST, NINETEEN
 HUNDRED EIGHTY-FOUR, SHALL BE DISREGARDED.
   (4) IF THE AMOUNT OF CREDIT ALLOWED  UNDER  THIS  SUBSECTION  FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY  BE  DEDUCTED
 FROM  THE TAXPAYER'S TAX FOR SUCH YEAR OR  YEARS. ANY REFUND PAID PURSU-
 ANT TO THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF  AN  OVERPAYMENT
 OF  TAX  AS  PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS CHAPTER,
 PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (J-3) DISCOVERY WAGE TAX CREDIT. (1) A TAXPAYER  SHALL  BE  ALLOWED  A
 CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
 BY THIS ARTICLE, WHERE THE  TAXPAYER  HAS  BEEN  CERTIFIED  PURSUANT  TO
 SECTION  NINE  HUNDRED  SEVENTY-TWO  OF  THE  GENERAL MUNICIPAL LAW. THE
 AMOUNT OF SUCH CREDIT SHALL BE AS PRESCRIBED IN PARAGRAPH THREE OF  THIS
 SUBSECTION.
   (2)  "DISCOVERY  WAGES" MEANS WAGES PAID BY THE TAXPAYER FOR FULL-TIME
 EMPLOYMENT DURING A TAXABLE YEAR, PROVIDED THAT THOSE WAGES ARE PAID  BY
 A CERTIFIED BUSINESS AS DEFINED BY THE COMMISSIONER OF ECONOMIC DEVELOP-
 MENT AS REQUIRED IN HIS OR HER RESPONSIBILITIES.
   (3) THE CREDIT PROVIDED IN THIS SUBSECTION SHALL BE EQUAL TO THE PROD-
 UCT  OF  THE GROSS WAGES PAID AND SIX AND EIGHTY-FIVE HUNDREDTHS PERCENT
 FOR EACH NET NEW JOB CREATED DURING THE TAXABLE YEAR.
   (4) "NET NEW JOB" SHALL BE DEFINED AS EACH JOB THAT EXCEEDS THE  AVER-
 AGE  NUMBER  OF  INDIVIDUALS  EMPLOYED  FULL-TIME BY THE TAXPAYER IN THE
 PREVIOUS TAXABLE YEAR.
   (5) IF THE AMOUNT OF THIS CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
 UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED  THE  TAXPAYER'S
 TAX  FOR  SUCH  YEAR,  THE  EXCESS, AS WELL AS ANY PART OF THE CREDIT OR
 CARRYOVERS OF SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED  FROM  THE
 TAX  OTHERWISE  DUE BY REASON OF PARAGRAPH THREE OF THIS SUBSECTION, MAY
 BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED  FROM
 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   § 6. Section 1511 of the tax law is amended by adding two new subdivi-
 sions (dd) and (ee) to read as follows:
   (DD)  DISCOVERY  INVESTMENT CREDIT.  (1) A TAXPAYER SHALL BE ALLOWED A
 CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX  IMPOSED
 BY  THIS  ARTICLE  WHERE  THE  TAXPAYER  HAS  BEEN CERTIFIED PURSUANT TO
 SECTION NINE HUNDRED SEVENTY-TWO  OF  THE  GENERAL  MUNICIPAL  LAW.  THE
 AMOUNT OF SUCH CREDIT SHALL BE TWENTY PERCENT OF THE COST OR OTHER BASIS
 FOR  FEDERAL INCOME TAX PURPOSES OF TANGIBLE PERSONAL PROPERTY AND OTHER

 A. 5922                            11
 
 TANGIBLE PROPERTY, INCLUDING  BUILDINGS  AND  STRUCTURAL  COMPONENTS  OF
 BUILDINGS,  DESCRIBED  IN PARAGRAPH TWO OF THIS SUBDIVISION, BUT ONLY IF
 THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION OF SUCH  PROP-
 ERTY  OCCURRED OR WAS COMMENCED ON OR AFTER THE DATE OF SUCH DESIGNATION
 AND PRIOR TO THE EXPIRATION THEREOF. PROVIDED, HOWEVER, THAT IN THE CASE
 OF AN ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR  ERECTION  WHICH  WAS
 COMMENCED  DURING  SUCH  PERIOD AND CONTINUED OR COMPLETED SUBSEQUENTLY,
 THE CREDIT SHALL BE TWENTY PERCENT OF THE PORTION OF THE COST  OR  OTHER
 BASIS FOR FEDERAL INCOME TAX PURPOSES ATTRIBUTABLE TO SUCH PERIOD, WHICH
 PORTION  SHALL  BE  ASCERTAINED  BY  MULTIPLYING SUCH COST OR BASIS BY A
 FRACTION THE NUMERATOR OF  WHICH  SHALL  BE  THE  EXPENDITURES  PAID  OR
 INCURRED  DURING  SUCH  PERIOD  FOR SUCH PURPOSES AND THE DENOMINATOR OF
 WHICH SHALL BE THE TOTAL OF ALL EXPENDITURES PAID OR INCURRED  FOR  SUCH
 ACQUISITION, CONSTRUCTION, RECONSTRUCTION OR ERECTION.
   (2)  A  CREDIT SHALL BE ALLOWED UNDER THIS SUBDIVISION WITH RESPECT TO
 TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILD-
 INGS AND STRUCTURAL COMPONENTS OF BUILDINGS WHICH: (A)  ARE  DEPRECIABLE
 PURSUANT  TO  SECTION  ONE  HUNDRED  SIXTY-SEVEN OF THE INTERNAL REVENUE
 CODE, (B) HAVE A USEFUL LIFE OF FOUR YEARS OR MORE, (C) ARE ACQUIRED  BY
 PURCHASE  AS  DEFINED  IN  SECTION  ONE  HUNDRED SEVENTY-NINE (D) OF THE
 INTERNAL REVENUE CODE, AND (D) ARE (I) PRINCIPALLY USED BY THE  TAXPAYER
 IN  THE  PRODUCTION  OF  GOODS BY MANUFACTURING, PROCESSING, ASSEMBLING,
 REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE, FLORI-
 CULTURE, VITICULTURE OR COMMERCIAL FISHING, (II) INDUSTRIAL WASTE TREAT-
 MENT FACILITIES OR AIR POLLUTION CONTROL FACILITIES USED IN THE  TAXPAY-
 ER'S  TRADE  OR  BUSINESS, (III) RESEARCH AND DEVELOPMENT PROPERTY, (IV)
 PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S TRADE OR BUSI-
 NESS AS A BROKER OR DEALER IN  CONNECTION  WITH  THE  PURCHASE  OR  SALE
 (WHICH  SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION,  OR  TRANSFER)  OF  STOCKS,
 BONDS   OR   OTHER   SECURITIES  AS  DEFINED  IN  SECTION  FOUR  HUNDRED
 SEVENTY-FIVE(C)(2) OF THE INTERNAL REVENUE CODE, OR  OF  COMMODITIES  AS
 DEFINED IN SECTION FOUR HUNDRED SEVENTY-FIVE (E) OF THE INTERNAL REVENUE
 CODE,  OR  (V) PRINCIPALLY USED IN THE ORDINARY COURSE OF THE TAXPAYER'S
 TRADE OR BUSINESS OF PROVIDING INVESTMENT ADVISORY SERVICES FOR A  REGU-
 LATED  INVESTMENT  COMPANY AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-ONE
 OF THE INTERNAL REVENUE CODE, OR LENDING, LOAN ARRANGEMENT OR LOAN ORIG-
 INATION SERVICES TO CUSTOMERS IN CONNECTION WITH THE  PURCHASE  OR  SALE
 (WHICH  SHALL INCLUDE BUT NOT BE LIMITED TO THE ISSUANCE, ENTERING INTO,
 ASSUMPTION, OFFSET, ASSIGNMENT, TERMINATION, OR TRANSFER) OF  SECURITIES
 AS  DEFINED  IN  SECTION FOUR HUNDRED SEVENTY-FIVE(C)(2) OF THE INTERNAL
 REVENUE CODE. FOR PURPOSES OF CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH,
 PROPERTY PURCHASED BY A TAXPAYER AFFILIATED  WITH  A  REGULATED  BROKER,
 DEALER  OR  REGISTERED INVESTMENT ADVISER IS ALLOWED A CREDIT UNDER THIS
 SUBDIVISION IF THE PROPERTY IS USED BY ITS AFFILIATED REGULATED  BROKER,
 DEALER OR REGISTERED INVESTMENT ADVISER IN ACCORDANCE WITH THIS SUBDIVI-
 SION. FOR PURPOSES OF DETERMINING IF THE PROPERTY IS PRINCIPALLY USED IN
 QUALIFYING  USES, THE USES BY THE TAXPAYER DESCRIBED IN CLAUSES (IV) AND
 (V) OF THIS SUBPARAGRAPH MAY BE AGGREGATED. IN ADDITION, THE USES BY THE
 TAXPAYER,  ITS  AFFILIATED  REGULATED  BROKER,  DEALER,  AND  REGISTERED
 INVESTMENT  ADVISER  UNDER EITHER OR BOTH OF THOSE CLAUSES MAY BE AGGRE-
 GATED. PROVIDED, HOWEVER, A TAXPAYER SHALL NOT  BE  ALLOWED  THE  CREDIT
 PROVIDED  BY CLAUSES (IV) AND (V) OF THIS SUBPARAGRAPH UNLESS (I) EIGHTY
 PERCENT OR MORE OF THE EMPLOYEES  PERFORMING  THE    ADMINISTRATIVE  AND
 SUPPORT  FUNCTIONS  RESULTING  FROM OR RELATED TO THE QUALIFYING USES OF
 SUCH EQUIPMENT ARE LOCATED IN THIS STATE, OR (II) THE AVERAGE NUMBER  OF

 A. 5922                            12
 
 EMPLOYEES  THAT PERFORM THE ADMINISTRATIVE AND SUPPORT FUNCTIONS RESULT-
 ING FROM OR RELATED TO THE QUALIFYING USES OF  SUCH  EQUIPMENT  AND  ARE
 LOCATED  IN  THIS  STATE DURING THE TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED  IS  EQUAL TO OR GREATER THAN NINETY-FIVE PERCENT OF THE AVERAGE
 NUMBER OF EMPLOYEES THAT PERFORM THESE FUNCTIONS AND ARE LOCATED IN THIS
 STATE DURING THE THIRTY-SIX MONTHS IMMEDIATELY PRECEDING  THE  YEAR  FOR
 WHICH THE CREDIT IS CLAIMED, OR (III) THE NUMBER OF EMPLOYEES LOCATED IN
 THIS  STATE  DURING  THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED IS
 EQUAL TO OR GREATER THAN NINETY  PERCENT  OF  THE  NUMBER  OF  EMPLOYEES
 LOCATED  IN  THIS STATE ON DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINE-
 TY-EIGHT OR, IF THE TAXPAYER WAS NOT A CALENDAR YEAR TAXPAYER  IN  NINE-
 TEEN HUNDRED NINETY-EIGHT, THE LAST DAY OF ITS FIRST TAXABLE YEAR ENDING
 AFTER  DECEMBER  THIRTY-FIRST,  NINETEEN  HUNDRED  NINETY-EIGHT.  IF THE
 TAXPAYER BECOMES SUBJECT TO TAX IN THIS STATE  AFTER  THE  TAXABLE  YEAR
 BEGINNING  IN  NINETEEN  HUNDRED  NINETY-EIGHT, THEN THE TAXPAYER IS NOT
 REQUIRED TO SATISFY  THE  EMPLOYMENT  TEST  PROVIDED  IN  THE  PRECEDING
 SENTENCE  OF  THIS SUBPARAGRAPH FOR ITS FIRST TAXABLE YEAR. FOR PURPOSES
 OF ITEM (III) OF THIS CLAUSE, THE EMPLOYMENT TEST WILL BE BASED  ON  THE
 NUMBER  OF  EMPLOYEES LOCATED IN THIS STATE ON THE LAST DAY OF THE FIRST
 TAXABLE YEAR THE TAXPAYER IS SUBJECT TO TAX IN THIS STATE. IF  THE  USES
 OF  THE PROPERTY MUST BE AGGREGATED TO DETERMINE WHETHER THE PROPERTY IS
 PRINCIPALLY USED IN QUALIFYING USES, THEN EITHER  EACH  AFFILIATE  USING
 THE  PROPERTY  MUST SATISFY THIS EMPLOYMENT TEST OR THIS EMPLOYMENT TEST
 MUST BE SATISFIED THROUGH  THE  AGGREGATION  OF  THE  EMPLOYEES  OF  THE
 TAXPAYER,  ITS  AFFILIATED  REGULATED  BROKER,  DEALER,  AND  REGISTERED
 INVESTMENT ADVISER USING THE PROPERTY. FOR PURPOSES OF THIS SUBDIVISION,
 THE TERM "GOODS" SHALL NOT INCLUDE ELECTRICITY.  FOR  PURPOSES  OF  THIS
 PARAGRAPH, MANUFACTURING SHALL MEAN THE PROCESS OF WORKING RAW MATERIALS
 INTO  WARES  SUITABLE  FOR USE OR WHICH GIVES NEW SHAPES, NEW QUALITY OR
 NEW COMBINATION TO MATTER WHICH ALREADY HAS GONE THROUGH SOME ARTIFICIAL
 PROCESS BY THE USE OF MACHINERY, TOOLS,  APPLIANCES  AND  OTHER  SIMILAR
 EQUIPMENT.  PROPERTY  USED  IN  THE  PRODUCTION  OF  GOODS SHALL INCLUDE
 MACHINERY, EQUIPMENT OR OTHER TANGIBLE  PROPERTY  WHICH  IS  PRINCIPALLY
 USED  IN  THE  REPAIR AND SERVICE OF OTHER MACHINERY, EQUIPMENT OR OTHER
 TANGIBLE PROPERTY USED PRINCIPALLY IN THE PRODUCTION OF GOODS AND  SHALL
 INCLUDE ALL FACILITIES USED IN THE PRODUCTION OPERATION, INCLUDING STOR-
 AGE  OF  MATERIAL  TO BE USED IN PRODUCTION AND OF THE PRODUCTS THAT ARE
 PRODUCED. FOR PURPOSES OF THIS PARAGRAPH, THE  TERMS  "INDUSTRIAL  WASTE
 TREATMENT  FACILITIES", "AIR POLLUTION CONTROL FACILITIES" AND "RESEARCH
 AND DEVELOPMENT PROPERTY" SHALL HAVE THE MEANINGS  ASCRIBED  THERETO  BY
 CLAUSES  (II) AND (III), RESPECTIVELY, OF SUBPARAGRAPH (D) OF THIS PARA-
 GRAPH, AND THE PROVISIONS OF SUBPARAGRAPH (C) OF  THIS  PARAGRAPH  SHALL
 APPLY.
   (3)  A  TAXPAYER  SHALL NOT BE ALLOWED A CREDIT UNDER THIS SUBDIVISION
 WITH RESPECT TO ANY TANGIBLE PERSONAL PROPERTY AND OTHER TANGIBLE  PROP-
 ERTY,  INCLUDING BUILDINGS AND STRUCTURAL COMPONENTS OF BUILDINGS, WHICH
 IT LEASES TO ANY OTHER PERSON OR CORPORATION  EXCEPT  WHERE  A  TAXPAYER
 LEASES PROPERTY TO AN AFFILIATED REGULATED BROKER, DEALER, OR REGISTERED
 INVESTMENT  ADVISER  THAT  USES  SUCH PROPERTY IN ACCORDANCE WITH CLAUSE
 (IV) OR (V) OF SUBPARAGRAPH (D) OF PARAGRAPH TWO  OF  THIS  SUBDIVISION.
 FOR  PURPOSES  OF  THE  PRECEDING SENTENCE, ANY CONTRACT OR AGREEMENT TO
 LEASE OR RENT OR FOR A LICENSE TO USE SUCH PROPERTY SHALL BE  CONSIDERED
 A  LEASE.  PROVIDED, HOWEVER, IN DETERMINING WHETHER A TAXPAYER SHALL BE
 ALLOWED A CREDIT UNDER THIS SUBDIVISION WITH RESPECT TO  SUCH  PROPERTY,
 ANY  ELECTION  MADE  WITH  RESPECT  TO  SUCH  PROPERTY  PURSUANT  TO THE
 PROVISIONS OF PARAGRAPH EIGHT OF SUBSECTION (F) OF SECTION  ONE  HUNDRED

 A. 5922                            13
 
 SIXTY-EIGHT  OF  THE  INTERNAL  REVENUE  CODE,  AS SUCH PARAGRAPH WAS IN
 EFFECT FOR AGREEMENTS ENTERED INTO  PRIOR  TO  JANUARY  FIRST,  NINETEEN
 HUNDRED EIGHTY-FOUR, SHALL BE DISREGARDED.
   (4)  IF  THE  AMOUNT  OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 MAY  BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. ANY REFUND PAID PURSUANT
 TO THIS PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF  AN  OVERPAYMENT  OF
 TAX  AS  PROVIDED  IN  SECTION  SIX  HUNDRED EIGHTY-SIX OF THIS CHAPTER,
 PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (EE) DISCOVERY WAGE TAX CREDIT. (1) A  TAXPAYER  SHALL  BE  ALLOWED  A
 CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
 BY THIS ARTICLE, WHERE THE  TAXPAYER  HAS  BEEN  CERTIFIED  PURSUANT  TO
 SECTION  NINE  HUNDRED  SEVENTY-TWO  OF  THE  GENERAL MUNICIPAL LAW. THE
 AMOUNT OF SUCH CREDIT SHALL BE AS PRESCRIBED IN PARAGRAPH THREE OF  THIS
 SUBDIVISION.
   (2)  "DISCOVERY  WAGES" MEANS WAGES PAID BY THE TAXPAYER FOR FULL-TIME
 EMPLOYMENT DURING A TAXABLE YEAR, PROVIDED THAT THOSE WAGES ARE PAID  BY
 A CERTIFIED BUSINESS AS DEFINED BY THE COMMISSIONER OF ECONOMIC DEVELOP-
 MENT AS REQUIRED IN HIS OR HER RESPONSIBILITIES.
   (3)  THE  CREDIT  PROVIDED  IN  THIS SUBDIVISION SHALL BE EQUAL TO THE
 PRODUCT OF THE GROSS WAGES  PAID  AND  SIX  AND  EIGHTY-FIVE  HUNDREDTHS
 PERCENT FOR EACH NET NEW JOB CREATED DURING THE TAXABLE YEAR.
   (4)  "NET NEW JOB" SHALL BE DEFINED AS EACH JOB THAT EXCEEDS THE AVER-
 AGE NUMBER OF INDIVIDUALS EMPLOYED FULL-TIME  BY  THE  TAXPAYER  IN  THE
 PREVIOUS TAXABLE YEAR.
   (5) IF THE AMOUNT OF THIS CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED
 UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
 TAX FOR SUCH YEAR, THE EXCESS, AS WELL AS ANY  PART  OF  THE  CREDIT  OR
 CARRYOVERS  OF  SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED FROM THE
 TAX OTHERWISE DUE BY REASON OF PARAGRAPH THREE OF THIS SUBDIVISION,  MAY
 BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM
 THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   § 7. This act shall take effect immediately; provided,  however,  that
 any  rules and regulations necessary to carry out the provisions of this
 act shall be promulgated by the  commissioner  of  economic  development
 before such effective date.
 
                                  PART C
 
   Section  1. The opening paragraph of paragraph (a) of subdivision 1 of
 section 210 of the tax law, as amended by section 10 of part T of  chap-
 ter 59 of the laws of 2015, is amended to read as follows:
   For  taxable  years  beginning  before  January  first,  two  thousand
 sixteen, the amount prescribed by this paragraph shall  be  computed  at
 the  rate  of  seven  and  one-tenth  percent of the taxpayer's business
 income base. For taxable years beginning on or after January first,  two
 thousand  [sixteen]  SEVENTEEN,  the amount prescribed by this paragraph
 shall be [six and one-half] FIVE AND  NINE  HUNDREDTHS  percent  of  the
 taxpayer's  business  income  base.  The taxpayer's business income base
 shall mean the portion of the  taxpayer's  business  income  apportioned
 within  the  state  as  hereinafter  provided. However, in the case of a
 small business taxpayer, as defined in paragraph (f)  of  this  subdivi-
 sion, the amount prescribed by this paragraph shall be computed pursuant
 to  subparagraph (iv) of this paragraph and in the case of a manufactur-
 er, as defined in  subparagraph  (vi)  of  this  paragraph,  the  amount

 A. 5922                            14
 
 prescribed  by this paragraph shall be computed pursuant to subparagraph
 (vi) of this paragraph, and, in the case of a qualified  emerging  tech-
 nology  company, as defined in subparagraph (vii) of this paragraph, the
 amount  prescribed  by  this  paragraph  shall  be  computed pursuant to
 subparagraph (vii) of this paragraph.
   § 2. Subparagraph (iv) of paragraph (a) of subdivision  1  of  section
 210  of the tax law, as amended by section 12 of part A of chapter 59 of
 the laws of 2014, is amended to read as follows:
   (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 AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN,  IF  THE
 BUSINESS  INCOME BASE IS NOT MORE THAN FIVE HUNDRED THOUSAND DOLLARS THE
 AMOUNT SHALL BE THREE AND ONE-QUARTER PERCENT  OF  THE  BUSINESS  INCOME
 BASE;  IF  THE  BUSINESS  INCOME BASE IS MORE THAN FIVE HUNDRED THOUSAND
 DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS THE  AMOUNT  SHALL  BE
 THE  SUM  OF (1) SIXTEEN THOUSAND TWO HUNDRED FIFTY DOLLARS, (2) SIX AND
 ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS  INCOME  BASE  OVER  FIVE
 HUNDRED  THOUSAND  DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS AND
 (3) THIRTY-TWO AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME
 BASE OVER FIVE HUNDRED FIFTY THOUSAND DOLLARS BUT NOT OVER  SIX  HUNDRED
 THOUSAND DOLLARS;
   (C)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND EIGHTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND  NINETEEN,  IF  THE
 BUSINESS  INCOME BASE IS NOT MORE THAN FIVE HUNDRED THOUSAND DOLLARS THE
 AMOUNT SHALL BE TWO AND NINE-TENTHS PERCENT OF THE BUSINESS INCOME BASE;
 IF THE BUSINESS INCOME BASE IS MORE THAN FIVE HUNDRED  THOUSAND  DOLLARS
 BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF
 (1) FOURTEEN THOUSAND FIVE HUNDRED DOLLARS, (2) SIX AND ONE-HALF PERCENT
 OF  THE  EXCESS  OF  THE BUSINESS INCOME BASE OVER FIVE HUNDRED THOUSAND
 DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND  DOLLARS  AND  (3)  THIRTY-SIX
 PERCENT  OF  THE  EXCESS  OF  THE BUSINESS INCOME BASE OVER FIVE HUNDRED
 FIFTY THOUSAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS;
   (D) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND  NINETEEN  AND  BEFORE  JANUARY  FIRST, TWO THOUSAND TWENTY, IF THE
 BUSINESS INCOME BASE IS NOT MORE THAN FIVE 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 FIVE HUNDRED THOUSAND DOLLARS BUT
 NOT OVER SIX HUNDRED THOUSAND DOLLARS THE AMOUNT SHALL BE THE SUM OF (1)
 TWELVE THOUSAND FIVE HUNDRED DOLLARS, (2) SIX AND  ONE-HALF  PERCENT  OF
 THE  EXCESS  OF  THE  BUSINESS  INCOME  BASE  OVER FIVE HUNDRED THOUSAND
 DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS AND (3) FORTY  PERCENT
 OF  THE EXCESS OF THE BUSINESS INCOME BASE OVER FIVE HUNDRED FIFTY THOU-
 SAND DOLLARS BUT NOT OVER SIX HUNDRED THOUSAND DOLLARS; AND

 A. 5922                            15
 
   (E) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND  TWENTY,  IF  THE BUSINESS INCOME BASE IS NOT MORE THAN SIX HUNDRED
 THOUSAND DOLLARS THE AMOUNT SHALL BE ZERO PERCENT.
   § 3. Paragraph 1 of subdivision (a) of section 1502 of the tax law, as
 amended  by  section  4  of part N of chapter 60 of the laws of 2007, is
 amended to read as follows:
   (1) for taxable years beginning before July first, two thousand,  nine
 percent  of  the  taxpayer's entire net income, or portion thereof allo-
 cated within this state, for the taxable year, or part  thereof,  except
 that  for  taxable  years  beginning  prior  to  January first, nineteen
 hundred seventy-eight, the rate shall be four and  five-tenths  percent;
 for  taxable  years  beginning  after  June  thirtieth, two thousand and
 before July first, two thousand one, eight and one-half percent  of  the
 taxpayer's  entire  net income, or portion thereof allocated within this
 state, for the taxable year, or part thereof; for taxable  years  begin-
 ning  after  June thirtieth, two thousand one and before July first, two
 thousand two, eight percent of the  taxpayer's  entire  net  income,  or
 portion  thereof  allocated  within this state, for the taxable year, or
 part thereof; for taxable years  beginning  after  June  thirtieth,  two
 thousand  two  and  before  January first, two thousand seven, seven and
 one-half percent of the taxpayer's entire net income, or portion thereof
 allocated within this state, for the  taxable  year,  or  part  thereof;
 [and] for taxable years beginning [on or] after January first, two thou-
 sand  seven  AND BEFORE JANUARY FIRST, TWO THOUSAND SEVENTEEN, seven and
 one-tenth percent of the taxpayer's entire net income, or portion there-
 of allocated within this state, for the taxable year, or  part  thereof;
 AND  FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 SEVENTEEN, SIX AND EIGHTY-FIVE ONE HUNDREDTHS PERCENT OF THE  TAXPAYER'S
 ENTIRE  NET  INCOME, OR PORTION THEREOF ALLOCATED WITHIN THIS STATE, FOR
 THE TAXABLE YEAR, OR PART THEREOF; or
   § 4. Subparagraph 1 of paragraph (b) of subdivision 1 of section 186-a
 of the tax law, as amended by section 4 of part Y of chapter 63  of  the
 laws of 2000, is amended to read as follows:
   (1)  two and five-tenths percent on and after January first, two thou-
 sand through December thirty-first, two thousand, two and forty-five one
 hundredths percent from January first, two thousand one through December
 thirty-first, two thousand one, two and four-tenths percent from January
 first, two thousand two through December thirty-first, two thousand two,
 two and twenty-five one hundredths percent from January first, two thou-
 sand three through December thirty-first, two thousand  three,  two  and
 one  hundred twenty-five one thousandths percent from January first, two
 thousand four through December thirty-first, two  thousand  four  [and],
 two  percent  commencing  January  first,  two thousand five AND ONE AND
 ONE-HALF PERCENT COMMENCING JANUARY FIRST, TWO  THOUSAND  SEVENTEEN  and
 thereafter  of  that portion of its gross income derived from the trans-
 portation, transmission or distribution of gas or electricity  by  means
 of conduits, mains, pipes, wires, lines or the like and
   § 5. Subparagraph 1 of paragraph (a) of subdivision 2 of section 186-e
 of  the  tax law, as amended by section 2 of part P of chapter 59 of the
 laws of 2015, is amended to read as follows:
   (1) There is hereby imposed an excise tax on the sale of  telecommuni-
 cation  services,  except  for  the  sale  of  mobile  telecommunication
 services that are subject to tax under subparagraph two  of  this  para-
 graph,  by any person which is a provider of telecommunication services,
 to be paid by such person, at the rate of  three  and  one-half  percent
 prior  to  October  first, nineteen hundred ninety-eight, three and one-

 A. 5922                            16
 
 quarter  percent  from  October  first,  nineteen  hundred  ninety-eight
 through  December  thirty-first, nineteen hundred ninety-nine, [and] two
 and one-half percent [on and] after January first,  two  thousand  FIVE,
 AND  TWO  PERCENT  ON AND AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN of
 gross receipt from: (i) any intrastate telecommunication services;  (ii)
 any  interstate and international telecommunication services (other than
 interstate and international private telecommunication  services)  which
 originate  or  terminate  in  this  state  and  which  telecommunication
 services are charged to a service address in this state,  regardless  of
 where  the  amounts  charged  for such services are billed or ultimately
 paid; and (iii) interstate and international  private  telecommunication
 services, the gross receipt to which the tax shall apply shall be deter-
 mined as prescribed in subdivision three of this section.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018, provided, however, that any
 rules  and regulations necessary to carry out the provisions of this act
 shall be promulgated before such effective date.
   § 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.
   §  3.  This act shall take effect immediately, provided, however, that
 the applicable effective date of Parts A through C of this act shall  be
 as specifically set forth in the last section of such Parts.