NY State Senate Bill 2017-S3514

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations
Jan 24, 2017	referred to investigations and government operations

2017-S3514 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §31, Tax L; amd §355, Ec Dev L
Versions Introduced in 2015-2016 Legislative Session:: S7484

2017-S3514 (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.

2017-S3514 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3514

 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
brown-fields 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 :

2016: 5.7484 - referred from Investigations and committed to Finance

 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, 2017.

2017-S3514 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3514
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2017
                                ___________
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05077-01-7

 S. 3514                             2
 
 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)
 THE  EXCELSIOR  RESEARCH  AND  DEVELOPMENT  TAX CREDIT COMPONENT; AND/OR
 (III) THE EXCELSIOR REAL PROPERTY TAX CREDIT COMPONENT.
   §  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.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2017.

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Senate Bill S3514

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2017-S3514 (ACTIVE) - Details

2017-S3514 (ACTIVE) - Summary

2017-S3514 (ACTIVE) - Sponsor Memo

2017-S3514 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3514

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Sponsored By

Martin J. Golden

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

2017-S3514 (ACTIVE) - Details

2017-S3514 (ACTIVE) - Summary

2017-S3514 (ACTIVE) - Sponsor Memo

2017-S3514 (ACTIVE) - Bill Text download pdf

Comments