NY State Senate Bill 2019-S1226

Senate Bill S1226

2019-2020 Legislative Session

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

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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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to commerce, economic development and small business
Jan 11, 2019	referred to commerce, economic development and small business

2019-S1226 (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
2017-2018: S3017
2021-2022: S2242

2019-S1226 (ACTIVE) - Summary

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

2019-S1226 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1226

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:

2017-2018: S.30178

 
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.

2019-S1226 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1226
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2019
                                ___________
 
 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.

                                                            LBD04214-01-9

 S. 1226                             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] 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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