S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2963
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2017
                                ___________
 
 Introduced  by  Sen. HELMING -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN  ACT  to  amend  the  economic  development  law  and the tax law, in
   relation to a restaurant renovation incentive program

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  economic  development law is amended by adding a new
 article 23 to read as follows:
                                ARTICLE 23
                RESTAURANT RENOVATION TAX INCENTIVE PROGRAM
 SECTION 450. DEFINITIONS.
         451. ADMINISTRATION.
         452. TAX INCENTIVE.
         453. APPLICATION AND APPROVAL PROCESS.
         454. CAP ON TAX CREDITS.
   SECTION 450. DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "ACTUAL PROJECT COSTS" MEANS COSTS ATTRIBUTABLE TO A  PROJECT  THAT
 ARE  INCURRED  BY  A  QUALIFIED  APPLICANT  BETWEEN THE COMMENCEMENT AND
 COMPLETION DATES SPECIFIED BY THE DEPARTMENT PURSUANT  TO  SECTION  FOUR
 HUNDRED FIFTY-THREE OF THIS ARTICLE.
   2.  "APPLICANT" MEANS A PERSON, CORPORATION, OR OTHER ENTITY THAT OWNS
 AND OPERATES A RESTAURANT.
   3. "PROJECT" MEANS THE RENOVATION, IMPROVEMENT, REPAIR OR  UPGRADE  OF
 AN EXISTING RESTAURANT. THE TERM DOES NOT INCLUDE NEW CONSTRUCTION.
   4.  "QUALIFIED  APPLICANT"  MEANS  AN APPLICANT THAT HAS BEEN ISSUED A
 CERTIFICATE BY THE DEPARTMENT UNDER SECTION FOUR HUNDRED FIFTY-THREE  OF
 THIS ARTICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08090-02-7

              

 S. 2963                             2
 
   5.  "RESTAURANT"  MEANS A PUBLIC FOOD SERVICE ESTABLISHMENT REGISTERED
 TO COLLECT TAX AS REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FOUR OF  THE
 TAX LAW.
   § 451. ADMINISTRATION. THERE IS CREATED IN THE DEPARTMENT A RESTAURANT
 RENOVATION  TAX  INCENTIVE PROGRAM. THE DEPARTMENT SHALL DEVELOP, IMPLE-
 MENT, AND ADMINISTER THE PROGRAM. THE DEPARTMENT AND THE  DEPARTMENT  OF
 TAXATION  AND  FINANCE  ARE  AUTHORIZED TO ADOPT RULES AND PUBLISH FORMS
 NECESSARY TO ADMINISTER AND ENFORCE THIS ARTICLE.
   § 452. TAX INCENTIVE. 1. AN APPLICANT MAY RECEIVE A CREDIT AGAINST THE
 TAXES IMPOSED BY ARTICLE NINE-A OR TWENTY-TWO  OF  THE  TAX  LAW  IN  AN
 AMOUNT  CERTIFIED  BY THE DEPARTMENT AS PROVIDED IN SECTION FOUR HUNDRED
 FIFTY-THREE OF THIS ARTICLE, IF THE APPLICANT COMPLETES A  PROJECT  THAT
 IS  A  RENOVATION, IMPROVEMENT, REPAIR OR UPGRADE OF DINING AREAS, REST-
 ROOMS, KITCHENS, COMMON AREAS OR THE EXTERIOR OF A RESTAURANT WITH TOTAL
 EXPENDITURES OF AT LEAST ONE HUNDRED THOUSAND DOLLARS.
   2. A QUALIFIED APPLICANT MEETING  THE  REQUIREMENTS  OF  THIS  SECTION
 SHALL RECEIVE A TAX CREDIT EQUAL TO TWENTY-FIVE PERCENT OF THE QUALIFIED
 APPLICANT'S  ACTUAL  PROJECT  COSTS  FOR  APPROVED PROJECTS.   FOLLOWING
 APPROVAL BY THE COMMISSIONER OF AN APPLICATION  TO  PARTICIPATE  IN  THE
 RENOVATION  INCENTIVE PROGRAM UNDER THIS ARTICLE, THE COMMISSIONER SHALL
 ISSUE A CERTIFICATE OF TAX CREDIT TO THE APPLICANT UPON ITS  DEMONSTRAT-
 ING  SUCCESSFUL  COMPLETION OF SUCH ELIGIBLE PROJECT TO THE SATISFACTION
 OF THE COMMISSIONER. THE TAX CREDITS SHALL BE CLAIMED BY  THE  QUALIFIED
 APPLICANT  AS SPECIFIED IN SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED
 TEN-B AND SUBSECTION (CCC) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
   § 453. APPLICATION AND APPROVAL PROCESS.   1. AN APPLICANT  SEEKING  A
 CREDIT  UNDER THIS PROGRAM SHALL SUBMIT AN APPLICATION TO THE DEPARTMENT
 BEFORE COMMENCEMENT OF THE PROJECT. THE APPLICATION MUST INCLUDE:
   (A) PLANS FOR THE PROPOSED PROJECT AND ESTIMATED PROJECT COSTS; AND
   (B) A DETAILED DESCRIPTION OF THE PROPOSED  PROJECT,  INCLUDING  ESTI-
 MATED COMMENCEMENT AND COMPLETION DATES.
   2.   THE  DEPARTMENT  SHALL  REVIEW  EACH  SUBMITTED  APPLICATION  FOR
 COMPLETENESS AND PROVIDE  PRELIMINARY  APPROVAL  OR  DISAPPROVAL  WITHIN
 SIXTY DAYS AFTER RECEIVING THE APPLICATION. THE DEPARTMENT SHALL ISSUE A
 CERTIFICATE TO EACH PRELIMINARILY APPROVED APPLICANT THAT:
   (A)  DESIGNATES  THE  APPLICANT  AS  A QUALIFIED APPLICANT ELIGIBLE TO
 RECEIVE A TAX CREDIT UNDER THIS ARTICLE; AND
   (B) SPECIFIES PROJECT COMMENCEMENT AND COMPLETION  DATES.  THE  PERIOD
 BETWEEN  THE  COMMENCEMENT AND COMPLETION DATES SPECIFIED BY THE DEPART-
 MENT MAY NOT EXCEED TWELVE MONTHS FOR A PROPOSED  PROJECT  DESCRIBED  IN
 SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTY-TWO OF THIS ARTICLE.
   3. (A) EACH QUALIFIED APPLICANT SHALL, UPON COMPLETION OF ITS PROJECT,
 PROVIDE  DOCUMENTATION  TO  THE  DEPARTMENT DEMONSTRATING ACTUAL PROJECT
 COSTS. SUCH COSTS SHALL BE VERIFIED BY AN INDEPENDENT  CERTIFIED  PUBLIC
 ACCOUNTANT LICENSED IN THIS STATE AT THE EXPENSE OF THE QUALIFIED APPLI-
 CANT.
   (B)  THE  DEPARTMENT  SHALL  VERIFY THAT ACTUAL PROJECT COSTS MEET THE
 EXPENDITURE REQUIREMENTS PROVIDED IN THIS ARTICLE. A QUALIFIED APPLICANT
 THAT FAILS TO MEET THE EXPENDITURE REQUIREMENTS MAY NOT  RECEIVE  A  TAX
 CREDIT UNDER THIS PROGRAM.
   §  454.  CAP ON TAX CREDITS. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON
 CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER  FOR  ANY  TAXABLE
 YEAR MAY NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 49 to read as follows:

 S. 2963                             3
 
   49. RESTAURANT RENOVATION CREDIT. (A) ALLOWANCE OF CREDIT. A  TAXPAYER
 WHO  IS ELIGIBLE PURSUANT TO ARTICLE TWENTY-THREE OF THE ECONOMIC DEVEL-
 OPMENT LAW SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN  SUCH
 ARTICLE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  FIXED  DOLLAR  MINIMUM  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF
 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF  THIS  ARTICLE.  PROVIDED,
 HOWEVER,  THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVI-
 SION FOR ANY TAXABLE YEAR REDUCES THE TAX  TO  SUCH  AMOUNT  OR  IF  THE
 TAXPAYER  OTHERWISE  PAYS  TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
 THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE  CREDITED  OR
 REFUNDED  IN  ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND
 EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC) RESTAURANT RENOVATION CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAY-
 ER  WHO  IS  ELIGIBLE  PURSUANT  TO ARTICLE TWENTY-THREE OF THE ECONOMIC
 DEVELOPMENT LAW SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED  IN
 SUCH ARTICLE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS  SUBSECTION FOR ANY TAXABLE YEAR EXCESS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREIN.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new  clause  (xliii)  to  read  as
 follows:
 
 (XLIII) RESTAURANT                   AMOUNT OF CREDIT
 RENOVATION INCENTIVE                 UNDER SUBDIVISION
 PROGRAM CREDIT UNDER                 FORTY-NINE OF SECTION
 SUBSECTION (CCC)                     TWO HUNDRED TEN-B
   §  5.  This  act  shall take effect January 1, 2018 and shall apply to
 taxable years beginning on and after such date; provided, however,  that
 effective immediately, the addition, amendment and/or repeal of any rule
 or regulation necessary for the implementation of this act on its effec-
 tive  date  are  authorized  to  be made and completed on or before such
 date.