S T A T E O F N E W Y O R K
________________________________________________________________________
6607
2019-2020 Regular Sessions
I N S E N A T E
June 19, 2019
___________
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the economic development law, the tax law and chapter 61
of the laws of 2011, amending the economic development law, the tax
law and the real property tax law relating to establishing the econom-
ic transformation and facility redevelopment program and providing tax
benefits under that program, in relation to the economic transforma-
tion and facility redevelopment program and the effectiveness thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 11 of section 400 of the economic development
law, as amended by section 3 of part QQ of chapter 60 of the laws of
2016, is amended to read as follows:
11. "Closed facility" means:
(a) a correctional facility, as defined in paragraph (a) of subdivi-
sion four of section two of the correction law, that has been selected
by the governor of the state of New York for closure after April first,
two thousand eleven but no later than March thirty-first, two thousand
twelve; or
(b) A CORRECTIONAL FACILITY, AS DEFINED IN PARAGRAPH (A) OF SUBDIVI-
SION FOUR OF SECTION TWO OF THE CORRECTION LAW, THAT HAS BEEN SELECTED
BY THE GOVERNOR OF THE STATE OF NEW YORK FOR CLOSURE AFTER APRIL FIRST,
TWO THOUSAND NINETEEN BUT NO LATER THAN MARCH THIRTY-FIRST, TWO THOUSAND
TWENTY; OR
(C) a facility operated by the office of children and family services
under article nineteen-G of the executive law that is closed pursuant to
authority granted to such office in a chapter of the laws of two thou-
sand eleven; or
[(c)] (D) which has been closed provided that the commissioner of
correctional services or the commissioner of the office of children and
family services has notified the commissioner of such closure; or
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13439-01-9
S. 6607 2
[(d)] (E) 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.
§ 2. 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)] (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. NOTWITHSTANDING THE FOREGOING, IN
THE CASE OF A CLOSED FACILITY, AS DESCRIBED PURSUANT TO PARAGRAPH (B) OF
SUBDIVISION ELEVEN OF SECTION FOUR HUNDRED OF THIS ARTICLE, A BUSINESS
ENTITY SHALL SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE COMMIS-
SIONER BY SEPTEMBER FIRST, TWO THOUSAND TWENTY.
§ 3. 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)] (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.
§ 4. Section 12 of part V of chapter 61 of the laws of 2011, amending
the economic development law, the tax law and the real property tax law
relating to establishing the economic transformation and facility rede-
velopment program and providing tax benefits under that program, is
amended to read as follows:
§ 12. This act shall take effect immediately and shall expire and be
deemed repealed December 31, [2021] 2024.
§ 5. This act shall take effect immediately; provided, that the amend-
ments to article 18 of the economic development law made by sections one
and two of this act shall not affect the repeal of such article and
shall be deemed repealed therewith; provided, further that the amend-
ments to section 35 of the tax law made by section three of this act
S. 6607 3
shall not affect the repeal of such section and shall be deemed repealed
therewith.