NY State Senate Bill 2017-S3017

Senate Bill S3017

2017-2018 Legislative Session

Grants eligibility for the economic transformation and facility redevelopment program tax credit to certain state psychiatric centers with decommissioned or surplus land

download bill text pdf

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 23, 2018	print number 3017b
Feb 23, 2018	amend and recommit to commerce, economic development and small business
Jan 03, 2018	referred to commerce, economic development and small business
Jun 21, 2017	recommitted to rules ordered to third reading cal.2119
Jun 20, 2017	print number 3017a
Jun 20, 2017	amend and recommit to rules
Jun 07, 2017	reported and committed to rules
Jan 19, 2017	referred to commerce, economic development and small business

Votes

- Jun 21, 2017 - Rules Committee Vote
  S3017
  
  24
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 21, 2017
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Squadron
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (1)
      
      Krueger
  Jun 7, 2017 - Commerce, Economic Development And Small Business Committee Vote
  S3017
  
  10
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Commerce, Economic Development And Small Business Committee Vote: Jun 7, 2017
      
      aye (10)
      
      Bailey
      
      Boyle
      
      Felder
      
      Funke
      
      Gallivan
      
      Griffo
      
      Hamilton
      
      Kennedy
      
      Persaud
      
      Robach
      
      aye wr (1)
      
      Sanders Jr.

Bill Amendments

Original

B (Active)

2017-S3017 - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Amd §§400 & 402, Ec Dev L; amd §35, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S7560
2019-2020: S1226
2021-2022: S2242

2017-S3017 - Summary

Grants eligibility for the economic transformation and facility redevelopment program tax credit to certain state psychiatric centers with decommissioned or surplus land.

2017-S3017 - Sponsor Memo

                                 BILL NUMBER:  S3017

 TITLE OF BILL :  An act to amend the economic development law and the
tax law, in relation to granting eligibility for the economic
transformation and facility redevelopment program tax credit to
certain state psychiatric centers with decommissioned or surplus land

 PURPOSE :

To grant eligibility for the economic transformation and facility
redevelopment program tax credit to certain state psychiatric centers
with decommissioned or surplus land

 SUMMARY OF PROVISIONS :

Section 1 amends § 400(4)(e) of the Economic Development Law to add to
the closed facility exception.

Section 2 amends § 400(10)(d) of the Economic Development Law to
provide that with respect to a closed facility described in paragraph
(d) or (e) or subdivision eleven of this section, the economic
transformation area shall consist only of the acreage of the closed
facility.

Section 3 amends § 400(11)(d) of the Economic Development Law to add
to the definition of closed facility a facility that is currently

operated as a psychiatric center pursuant to § 7.17 of the Mental
Hygiene Law, where at least three-fifths of the total acreage of such
facility has been designated by the Commissioner of Mental Health as
decommissioned or surplus, including the buildings thereon.

Section 4 amends § 402(1) of the Economic Development Law to provide
that a business entity must submit a completed application as
prescribed by the commissioner pursuant to specific deadlines,
provided however that in the case of a closed facility as described in
§ 400(11)(d) and newly created paragraph (e), a business entity must
submit a completed application as prescribed by the commissioner by
September 1, 2016.

Section 5 amends § 35(h)(1) of the Tax Law to provide that a taxpayer
which meets the requirements in this section shall be eligible to
claim a credit on qualified investments with respect to the project
for which the certificate of eligibility is issued The credit shall be
equal to 10% of the cost of other bases for federal income tax
purposed of the quailed investment at a closed facility, provided that
the taxpayer that is the owner of the closed facility as described in
the amended § 400(11) of the Economic Development Law shall be allowed
to include in its cost or other basis of the qualified investment at
the closed facility, any demolition costs incurred at such closed
facility.

Section 6 is the effective date.

 EXISTING LAW :

§ 400 of the Economic Development Law provides the definitions for the
Economic Transformation and Facility Redevelopment Program.

§ 402 of the Economic Development Law provides the application and
approval process of the Economic Transformation and Facility
Redevelopment Program.

§ 7.17 of the Mental Hygiene Law provides the programs, services, and
operation of facilities in the Office of Mental Health.


§ 35 of the Tax Law provides the Economic Transformation and Facility
redevelopment program Tax Credit. This bill adds the new definition of
closed facility to the credit.

This bill seeks to adds to the definition of closed facility for the
purposes of expanding the Economic Transformation and Facility
Redevelopment Program facilities that are currently operated as a
psychiatric center, as defined by the Mental Hygiene Law, where at
least three-fifths of the total acreage of such facility has been
designated by the Commissioner of Mental Health as decommissioned or
surplus, including the buildings thereon.

 JUSTIFICATION :

The Economic Transformation and Facility Redevelopment Program
includes a series of wage and tax credits designed to entice new
businesses to locate, expand and grow, utilizing formerly occupied
state facilities. Initially aimed at redeveloping former prisons and
juvenile detention facilities, the program was expanded in the SFY
2016-17 State Budget to also include certain former psychiatric
hospitals with the goal of reviving these facilities into thriving
economic engines of job creation.

Meantime, in communities across New York, the state continues to
operate psychiatric facilities, but on a much smaller footprint than
originally planned for these purposes. The result is hundreds or
thousands of vacant acres and buildings that are not being used, and
with no plans for their reuse, yet they remain under state control,
and off local community tax rolls. Many of these facilities are
located in economically distressed communities.

For example, the St. Lawrence Psychiatric Center, located in
Ogdensburg, continues to provide world-class medical care for hundreds
of patients each year, and remains an important part of New York's
fabric of mental health care, but utilizes a fraction of the land and
buildings on the center's more than 422-acre campus.

Recently, the Legislature has recognized the value of releasing some
of the unused land and derelict, abandoned buildings at St. Lawrence
Psychiatric Center for possible redevelopment, and passage of this
measure would enhance efforts to remove and redevelop blighted
buildings, and transform communities by triggering revitalization
efforts that can attract new economic activity and job creation.

 LEGISLATIVE HISTORY :

2016: S.7560 Referred to Commerce, Economic Development and Small
Business.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately, provided that the amendments
to sections 400 and 402 of the economic development law, made by
sections one, two, three, and four of this act, and section 35 of the
tax law, made by section five of this act, shall not affect the
expiration and repeal of such sections and shall be deemed repealed
therewith.

2017-S3017 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3017
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2017
                                ___________
 
 Introduced  by  Sen. RITCHIE -- 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 granting eligibility for the economic  transformation  and
   facility redevelopment program tax credit to certain state psychiatric
   centers with decommissioned or surplus land
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (e) of  subdivision  4  of  section  400  of  the
 economic development law, as added by section 1 of part QQ of chapter 60
 of the laws of 2016, is amended to read as follows:
   (e)  provided,  however  that the requirement in paragraph (a) of this
 subdivision that the participant be a new business shall not apply to  a
 closed facility as defined in paragraph (d) OR (E) of subdivision eleven
 of this section.
   §  2.  Paragraph  (d) of subdivision 10 of section 400 of the economic
 development law, as added by section 2 of part QQ of chapter 60  of  the
 laws of 2016, is amended to read as follows:
   (d) Notwithstanding paragraph (b) of this subdivision, with respect to
 a closed facility described in paragraph (d) OR (E) of subdivision elev-
 en  of this section, the economic transformation area shall consist only
 of the acreage of the closed facility.
   § 3. Paragraph (d) of subdivision 11 of section 400  of  the  economic
 development  law,  as added by section 3 of part QQ of chapter 60 of the
 laws of 2016, is amended and a new paragraph (e) is  added  to  read  as
 follows:
   (d)  a  facility previously owned by the state, and when operated, was
 operated as a psychiatric facility  pursuant  to  section  7.17  of  the
 mental  hygiene law, and located within the metropolitan commuter trans-
 portation district but outside New York city[.]; OR

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

                                                            LBD08300-01-7

 S. 3017                             2
 
   (E) A FACILITY THAT CURRENTLY OPERATES AS A PSYCHIATRIC CENTER  PURSU-
 ANT  TO  SECTION  7.17  OF THE MENTAL HYGIENE LAW, WHERE AT LEAST THREE-
 FIFTHS OF THE TOTAL ACREAGE OF SUCH FACILITY HAS BEEN DESIGNATED BY  THE
 COMMISSIONER  OF  MENTAL  HEALTH AS DECOMMISSIONED OR SURPLUS, INCLUDING
 THE BUILDINGS THEREON.
   §  4. Subdivision 1 of section 402 of the economic development law, as
 amended by section 4 of part QQ of chapter 60 of the laws  of  2016,  is
 amended to read as follows:
   1. A business entity must submit a completed application as prescribed
 by  the  commissioner  by  the later of (a) the date that is three years
 after the date of the closure of the  closed  facility  located  in  the
 economic  transformation area in which the business entity would operate
 or (b) January first, two thousand fifteen.  Provided  however,  in  the
 case  of a closed facility described in paragraph (d) OR (E) of subdivi-
 sion eleven of section four hundred of this article, a  business  entity
 must submit a completed application as prescribed by the commissioner by
 September first, two thousand sixteen.
   §  5.  Paragraph 1 of subdivision (h) of section 35 of the tax law, as
 amended by section 5 of part QQ of chapter 60 of the laws  of  2016,  is
 amended to read as follows:
   (1)  A  taxpayer which meets the requirements in this section shall be
 eligible to claim a credit on qualified investments with respect to  the
 project  for  which the certificate of eligibility is issued. The credit
 shall be equal to ten percent of the cost or  other  basis  for  federal
 income  tax  purposes  of the qualified investment at a closed facility.
 Provided however, for purposes of this credit only, a taxpayer  that  is
 the  owner  of  a  closed  facility described in paragraph (d) OR (E) of
 subdivision eleven of section four hundred of the  economic  development
 law, shall be allowed to include in its cost or other basis of the qual-
 ified  investment  at the closed facility, any demolition costs incurred
 at such closed facility. Those demolition costs shall be limited to  the
 following  costs:  (i) asbestos removal costs, (ii) rental of demolition
 equipment, (iii) personnel costs to operate  the  demolition  equipment,
 (iv)  costs to remove and dispose of demolition debris, (v) the costs of
 any permits, licenses and insurance necessary for  the  demolition.  The
 total  amount  of investment tax credit allowed for all eligible partic-
 ipants under this subdivision for qualified investments located at  each
 closed facility shall not exceed eight million dollars. The credit shall
 be  equal  to  six percent of the cost or other basis for federal income
 tax purposes for all other qualified investments, but the credit allowed
 to a taxpayer may not exceed four million dollars.
   § 6. This act shall take effect immediately, provided that the  amend-
 ments  to  sections 400 and 402 of the economic development law, made by
 sections one, two, three and four of this act, and section 35 of the tax
 law, made by section five of this act, shall not affect  the  expiration
 and repeal of such sections and shall be deemed repealed therewith.

2017-S3017A - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Amd §§400 & 402, Ec Dev L; amd §35, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S7560
2019-2020: S1226
2021-2022: S2242

2017-S3017A - Summary

Grants eligibility for the economic transformation and facility redevelopment program tax credit to certain state psychiatric centers with decommissioned or surplus land.

2017-S3017A - Sponsor Memo

                                 BILL NUMBER:  S3017A

 TITLE OF BILL :  An act to amend the economic development law and the
tax law, in relation to granting eligibility for the economic
transformation and facility redevelopment program tax credit to
certain state psychiatric centers with decommissioned or surplus land

 PURPOSE :  To grant eligibility for the economic transformation and
facility redevelopment program tax credit to certain state psychiatric
centers with decommissioned or surplus land

 SUMMARY OF PROVISIONS :

Section 1 amends § 400(4)(e) of the Economic Development Law to add to
the closed facility exception.

Section 2 amends § 400(10)(d) of the Economic Development Law to
provide that with respect to a closed facility described in paragraph
(d) or (e) or subdivision eleven of this section, the economic
transformation area shall consist only of the acreage of the closed
facility.

Section 3 amends § 400(11)(d) of the Economic Development Law to add
to the definition of closed facility a facility that is currently
operated as a psychiatric center pursuant to § 7.17 of the Mental
Hygiene Law, where at least three-fifths of the total acreage of such

facility has been designated by the Commissioner of Mental Health as
decommissioned or surplus, including the buildings thereon.

Section 4 amends § 402(1) of the Economic Development Law to provide
that a business entity must submit a completed application as
prescribed by the commissioner pursuant to specific deadlines,
provided however that in the case of a closed facility as described in
§ 400(11)(d) and newly created paragraph (e), a business entity must
submit a completed application as prescribed by the commissioner by
September 1, 2016.

Section 5 amends § 35(h)(1) of the Tax Law to provide that a taxpayer
which meets the requirements in this section shall be eligible to
claim a credit on qualified investments with respect to the project
for which the certificate of eligibility is issued The credit shall be
equal to 10% of the cost of other bases for federal income tax
purposed of the quailed investment at a closed facility, provided that
the taxpayer that is the owner of the closed facility as described in
the amended § 400(11) of the Economic Development Law shall be allowed
to include in its cost or other basis of the qualified investment at
the closed facility, any demolition costs incurred at such closed
facility.

Section 6 is the effective date.

 EXISTING LAW :

§ 400 of the Economic Development Law provides the definitions for the
Economic Transformation and Facility Redevelopment Program.

§ 402 of the Economic Development Law provides the application and
approval process of the Economic Transformation and Facility
Redevelopment Program.

§ 7.17 of the Mental Hygiene Law provides the programs, services, and
operation of facilities in the Office of Mental Health.

§ 35 of the Tax Law provides the Economic Transformation and Facility
redevelopment program Tax Credit. This bill adds the new definition of
closed facility to the credit.
This bill seeks to adds to the definition of closed facility for the
purposes of expanding the Economic Transformation and Facility
Redevelopment Program facilities that are currently operated as a
psychiatric center, as defined by the Mental Hygiene Law, where at
least three-fifths of the total acreage of such facility has been
designated by the Commissioner of Mental Health as decommissioned or
surplus, including the buildings thereon.

 JUSTIFICATION :

The Economic Transformation and Facility Redevelopment Program
includes a series of wage and tax credits designed to entice new
businesses to locate, expand and grow, utilizing formerly occupied
state facilities. Initially aimed at redeveloping former prisons and
juvenile detention facilities, the program was expanded in the SFY
2016-17 State Budget to also include certain former psychiatric
hospitals with the goal of reviving these facilities into thriving
economic engines of job creation.

Meantime, in communities across New York, the state continues to
operate psychiatric facilities, but on a much smaller footprint than
originally planned for these purposes. The result is hundreds or
thousands of vacant acres and buildings that are not being used, and
with no plans for their reuse, yet they remain under state control,
and off local community tax rolls. Many of these facilities are
located in economically distressed communities.

For example, the St. Lawrence Psychiatric Center, located in
Ogdensburg, continues to provide world-class medical care for hundreds
of patients each year, and remains an important part of New York's
fabric of mental health care, but utilizes a fraction of the land and
buildings on the center's more than 422-acre campus.

Recently, the Legislature has recognized the value of releasing some
of the unused land and derelict, abandoned buildings at St. Lawrence
Psychiatric Center for possible redevelopment, and passage of this
measure would enhance efforts to remove and redevelop blighted
buildings, and transform communities by triggering revitalization
efforts that can attract new economic activity and job creation.

 LEGISLATIVE HISTORY :

2016: S.7560 Referred to Commerce, Economic Development and Small
Business.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately, provided that the amendments
to sections 400 and 402 of the economic development law, made by
sections one, two, three, and four of this act, and section 35 of the
tax law, made by section five of this act, shall not affect the
expiration and repeal of such sections and shall be deemed repealed
therewith.

2017-S3017A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3017--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2017
                                ___________
 
 Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment  and  Small  Business -- reported favorably from said committee
   and committed to the Committee on Rules -- committee discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the  economic  development  law  and  the  tax  law,  in
   relation  to  granting eligibility for the economic transformation and
   facility redevelopment program tax credit to certain state psychiatric
   centers with decommissioned or surplus land
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  (e)  of  subdivision  4  of section 400 of the
 economic development law, as added by section 1 of part QQ of chapter 60
 of the laws of 2016, is amended to read as follows:
   (e) provided, however that the requirement in paragraph  (a)  of  this
 subdivision  that the participant be a new business shall not apply to a
 closed facility as defined in paragraph (d) OR (E) of subdivision eleven
 of this section.
   § 2. Paragraph (d) of subdivision 10 of section 400  of  the  economic
 development  law,  as added by section 2 of part QQ of chapter 60 of the
 laws of 2016, is amended to read as follows:
   (d) Notwithstanding paragraph (b) of this subdivision, with respect to
 a closed facility described in paragraph (d) OR (E) of subdivision elev-
 en of this section, the economic transformation area shall consist  only
 of the acreage of the closed facility.
   §  3.  Paragraph  (d) of subdivision 11 of section 400 of the economic
 development law, as added by section 3 of part QQ of chapter 60  of  the
 laws  of  2016,  is  amended and a new paragraph (e) is added to read as
 follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08300-03-7

 S. 3017--A                          2
 
   (d) a facility previously owned by the state, and when  operated,  was
 operated  as  a  psychiatric  facility  pursuant  to section 7.17 of the
 mental hygiene law, and located within the metropolitan commuter  trans-
 portation district but outside New York city[.]; OR
   (E)  A FACILITY THAT CURRENTLY OPERATES AS A PSYCHIATRIC CENTER PURSU-
 ANT TO SECTION 7.17 OF THE MENTAL HYGIENE LAW,  WHERE  AT  LEAST  THREE-
 FIFTHS  OF THE TOTAL ACREAGE OF SUCH FACILITY HAS BEEN DESIGNATED BY THE
 COMMISSIONER OF MENTAL HEALTH AS DECOMMISSIONED  OR  SURPLUS,  INCLUDING
 THE BUILDINGS THEREON.
   §  4. Subdivision 1 of section 402 of the economic development law, as
 amended by section 4 of part QQ of chapter 60 of the laws  of  2016,  is
 amended to read as follows:
   1. A business entity must submit a completed application as prescribed
 by  the  commissioner  by  the later of (a) the date that is three years
 after the date of the closure of the  closed  facility  located  in  the
 economic  transformation area in which the business entity would operate
 or (b) January first, two thousand fifteen.  Provided  however,  in  the
 case  of a closed facility described in paragraph (d) OR (E) of subdivi-
 sion eleven of section four hundred of this article, a  business  entity
 must submit a completed application as prescribed by the commissioner by
 September first, two thousand [sixteen] SEVENTEEN.
   §  5.  Paragraph 1 of subdivision (h) of section 35 of the tax law, as
 amended by section 5 of part QQ of chapter 60 of the laws  of  2016,  is
 amended to read as follows:
   (1)  A  taxpayer which meets the requirements in this section shall be
 eligible to claim a credit on qualified investments with respect to  the
 project  for  which the certificate of eligibility is issued. The credit
 shall be equal to ten percent of the cost or  other  basis  for  federal
 income  tax  purposes  of the qualified investment at a closed facility.
 Provided however, for purposes of this credit only, a taxpayer  that  is
 the  owner  of  a  closed  facility described in paragraph (d) OR (E) of
 subdivision eleven of section four hundred of the  economic  development
 law, shall be allowed to include in its cost or other basis of the qual-
 ified  investment  at the closed facility, any demolition costs incurred
 at such closed facility. Those demolition costs shall be limited to  the
 following  costs:  (i) asbestos removal costs, (ii) rental of demolition
 equipment, (iii) personnel costs to operate  the  demolition  equipment,
 (iv)  costs to remove and dispose of demolition debris, (v) the costs of
 any permits, licenses and insurance necessary for  the  demolition.  The
 total  amount  of investment tax credit allowed for all eligible partic-
 ipants under this subdivision for qualified investments located at  each
 closed facility shall not exceed eight million dollars. The credit shall
 be  equal  to  six percent of the cost or other basis for federal income
 tax purposes for all other qualified investments, but the credit allowed
 to a taxpayer may not exceed four million dollars.
   § 6. This act shall take effect immediately, provided that the  amend-
 ments  to  sections 400 and 402 of the economic development law, made by
 sections one, two, three and four of this act, and section 35 of the tax
 law, made by section five of this act, shall not affect  the  expiration
 and repeal of such sections and shall be deemed repealed therewith.

2017-S3017B (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Amd §§400 & 402, Ec Dev L; amd §35, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S7560
2019-2020: S1226
2021-2022: S2242

2017-S3017B (ACTIVE) - Summary

Grants eligibility for the economic transformation and facility redevelopment program tax credit to certain state psychiatric centers with decommissioned or surplus land.

2017-S3017B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3017B

SPONSOR: RITCHIE
 
TITLE OF BILL:

An act to amend the economic development law and the tax law, in
relation to granting eligibility for the economic transformation and
facility redevelopment program tax credit to certain state psychiatric
centers with decommissioned or surplus land

 
PURPOSE:

To grant eligibility for the economic transformation and facility rede-
velopment program tax credit to certain state psychiatric centers with
decommissioned or surplus land

 
SUMMARY OF PROVISIONS:

Section 1 amends § 400(4)(e) of the Economic Development Law to add to
the closed facility exception.

Section 2 amends § 400(10)(d) of the Economic Development Law to provide
that with respect to a closed facility described in paragraph (d) or (e)
or subdivision eleven of this section, the economic transformation area
shall consist only of the acreage of the closed facility.

Section 3 amends § 400(11)(d) of the Economic Development Law to add to
the definition of closed facility a facility that is currently operated
as a psychiatric center pursuant to § 7.17 of the Mental Hygiene Law,
where at least three-fifths of the total acreage of such facility has
been designated by the Commissioner of Mental Health as decommissioned
or surplus, including the buildings thereon.

Section 4 amends § 402(1) of the Economic Development Law to provide
that a business entity must submit a completed application as prescribed
by the commissioner pursuant to specific deadlines, provided however
that in the case of a closed facility as described in § 400(11)(d) and
newly created paragraph (e), a business entity must submit a completed
application as prescribed by the commissioner by September 1, 2016.

Section 5 amends § 35(h)(1) of the Tax Law to provide that a taxpayer
which meets the requirements in this section shall be eligible to claim
a credit on qualified investments with respect to the project for which
the certificate of eligibility is issued The credit shall be equal to
10% of the cost of other bases for federal income tax purposed of the
quailed investment at a closed facility, provided that the taxpayer that
is the owner of the closed facility as described in the amended §
400(11) of the Economic Development Law shall be allowed to include in
its cost or other basis of the qualified investment at the closed facil-
ity, any demolition costs incurred at such closed facility.

Section 6 is the effective date.

 
EXISTING LAW:

§ 400 of the Economic Development Law provides the definitions for the
Economic Transformation and Facility Redevelopment Program.


§ 402 of the Economic Development Law provides the application and
approval process of the Economic Transformation and Facility Redevelop-
ment Program.

§ 7.17 of the Mental Hygiene Law provides the programs, services, and
operation of facilities in the Office of Mental Health.

§ 35 of the Tax Law provides the Economic Transformation and Facility
redevelopment program Tax Credit. This bill adds the new definition of
closed facility to the credit.

This bill seeks to adds to the definition of closed facility for the
purposes of expanding the Economic Transformation and Facility Redevel-
opment Program facilities that are currently operated as a psychiatric
center, as defined by the Mental Hygiene Law, where at least three-
fifths of the total acreage of such facility has been designated by the
Commissioner of Mental Health as decommissioned or surplus, including
the buildings thereon.

 
JUSTIFICATION:

The Economic Transformation and Facility Redevelopment Program includes
a series of wage and tax credits designed to entice new businesses to
locate, expand and grow, utilizing formerly occupied state facilities.
Initially aimed at redeveloping former prisons and juvenile detention
facilities, the program was expanded in the SFY 2016-17 State Budget to
also include certain former psychiatric hospitals with the goal of
reviving these facilities into thriving economic engines of job
creation.

Meantime, in communities across New York, the state continues to operate
psychiatric facilities, but on a much smaller footprint than originally
planned for these purposes. The result is hundreds or thousands of
vacant acres and buildings that are not being used, and with no plans
for their reuse, yet they remain under state control, and off local
community tax rolls. Many of these facilities are located in econom-
ically distressed communities.

For example, the St. Lawrence Psychiatric Center, located in Ogdensburg,
continues to provide world-class medical care for hundreds of patients
each year, and remains an important part of New York's fabric of mental
health care, but utilizes a fraction of the land and buildings on the
center's more than 422-acre campus.  Recently, the Legislature has
recognized the value of releasing some of the unused land and derelict,
abandoned buildings at St. Lawrence Psychiatric Center for possible
redevelopment, and passage of this measure would enhance efforts to
remove and redevelop blighted buildings, and transform communities by
triggering revitalization efforts that can attract new economic activity
and job creation.

 
LEGISLATIVE HISTORY:

2016: S.7560 Referred to Commerce, Economic Development and Small Busi-
ness.

 
FISCAL IMPLICATIONS:

To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately, provided that the amendments to
sections 400 and 402 of the economic development law, made by sections
one, two, three, and four of this act, and section 35 of the tax law,
made by section five of this act, shall not affect the expiration and
repeal of such sections and shall be deemed repealed therewith.

2017-S3017B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3017--B
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2017
                                ___________
 
 Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment  and  Small  Business -- reported favorably from said committee
   and committed to the Committee on Rules -- committee discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee -- recommitted to the Committee on Commerce, Economic  Development
   and Small Business in accordance with Senate Rule 6, sec. 8 -- commit-
   tee  discharged, bill amended, ordered reprinted as amended and recom-
   mitted to said committee
 
 AN ACT to amend the  economic  development  law  and  the  tax  law,  in
   relation  to  granting eligibility for the economic transformation and
   facility redevelopment program tax credit to certain state psychiatric
   centers with decommissioned or surplus land
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  (e)  of  subdivision  4  of section 400 of the
 economic development law, as added by section 1 of part QQ of chapter 60
 of the laws of 2016, is amended to read as follows:
   (e) provided, however that the requirement in paragraph  (a)  of  this
 subdivision  that the participant be a new business shall not apply to a
 closed facility as defined in paragraph (d) OR (E) of subdivision eleven
 of this section.
   § 2. Paragraph (d) of subdivision 10 of section 400  of  the  economic
 development  law,  as added by section 2 of part QQ of chapter 60 of the
 laws of 2016, is amended to read as follows:
   (d) Notwithstanding paragraph (b) of this subdivision, with respect to
 a closed facility described in paragraph (d) OR (E) of subdivision elev-
 en of this section, the economic transformation area shall consist  only
 of the acreage of the closed facility.
   §  3.  Paragraph  (d) of subdivision 11 of section 400 of the economic
 development law, as added by section 3 of part QQ of chapter 60  of  the

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

                                                            LBD08300-04-8

 S. 3017--B                          2
 
 laws  of  2016,  is  amended and a new paragraph (e) is added to read as
 follows:
   (d)  a  facility previously owned by the state, and when operated, was
 operated as a psychiatric facility  pursuant  to  section  7.17  of  the
 mental  hygiene law, and located within the metropolitan commuter trans-
 portation district but outside New York city[.]; OR
   (E) A FACILITY THAT CURRENTLY OPERATES AS A PSYCHIATRIC CENTER  PURSU-
 ANT  TO  SECTION  7.17  OF THE MENTAL HYGIENE LAW, WHERE AT LEAST THREE-
 FIFTHS OF THE TOTAL ACREAGE OF SUCH FACILITY HAS BEEN DESIGNATED BY  THE
 COMMISSIONER  OF  MENTAL  HEALTH AS DECOMMISSIONED OR SURPLUS, INCLUDING
 THE BUILDINGS THEREON.
   § 4. Subdivision 1 of section 402 of the economic development law,  as
 amended  by  section  4 of part QQ of chapter 60 of the laws of 2016, is
 amended to read as follows:
   1. A business entity must submit a completed application as prescribed
 by the commissioner by the later of (a) the date  that  is  three  years
 after  the  date  of  the  closure of the closed facility located in the
 economic transformation area in which the business entity would  operate
 or  (b)  January  first,  two thousand fifteen. Provided however, in the
 case of a closed facility described in paragraph (d) OR (E) of  subdivi-
 sion  eleven  of section four hundred of this article, a business entity
 must submit a completed application as prescribed by the commissioner by
 September first, two thousand [sixteen] EIGHTEEN.
   § 5. Paragraph 1 of subdivision (h) of section 35 of the tax  law,  as
 amended  by  section  5 of part QQ of chapter 60 of the laws of 2016, is
 amended to read as follows:
   (1) A taxpayer which meets the requirements in this section  shall  be
 eligible  to claim a credit on qualified investments with respect to the
 project for which the certificate of eligibility is issued.  The  credit
 shall  be  equal  to  ten percent of the cost or other basis for federal
 income tax purposes of the qualified investment at  a  closed  facility.
 Provided  however,  for purposes of this credit only, a taxpayer that is
 the owner of a closed facility described in  paragraph  (d)  OR  (E)  of
 subdivision  eleven  of section four hundred of the economic development
 law, shall be allowed to include in its cost or other basis of the qual-
 ified investment at the closed facility, any demolition  costs  incurred
 at  such closed facility. Those demolition costs shall be limited to the
 following costs: (i) asbestos removal costs, (ii) rental  of  demolition
 equipment,  (iii)  personnel  costs to operate the demolition equipment,
 (iv) costs to remove and dispose of demolition debris, (v) the costs  of
 any  permits,  licenses  and insurance necessary for the demolition. The
 total amount of investment tax credit allowed for all  eligible  partic-
 ipants  under this subdivision for qualified investments located at each
 closed facility shall not exceed eight million dollars. The credit shall
 be equal to six percent of the cost or other basis  for  federal  income
 tax purposes for all other qualified investments, but the credit allowed
 to a taxpayer may not exceed four million dollars.
   §  6. This act shall take effect immediately, provided that the amend-
 ments to sections 400 and 402 of the economic development law,  made  by
 sections one, two, three and four of this act, and section 35 of the tax
 law,  made  by section five of this act, shall not affect the expiration
 and repeal of such sections and shall be deemed repealed therewith.

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Senate Bill S3017

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Sponsored By

Patty Ritchie

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Bill Amendments

2017-S3017 - Details

2017-S3017 - Summary

2017-S3017 - Sponsor Memo

2017-S3017 - Bill Text download pdf

2017-S3017A - Details

2017-S3017A - Summary

2017-S3017A - Sponsor Memo

2017-S3017A - Bill Text download pdf

2017-S3017B (ACTIVE) - Details

2017-S3017B (ACTIVE) - Summary

2017-S3017B (ACTIVE) - Sponsor Memo

2017-S3017B (ACTIVE) - Bill Text download pdf

Comments