NY State Senate Bill 2019-S8320A

Senate Bill S8320A

2019-2020 Legislative Session

Relates to the excelsior jobs program and certain incentives for medical equipment projects within such program

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 20, 2020	print number 8320a
May 20, 2020	amend and recommit to commerce, economic development and small business
May 11, 2020	referred to commerce, economic development and small business

Bill Amendments

Original

A (Active)

2019-S8320 - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Amd §§352, 353 & 355, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S3471
2023-2024: S2026

2019-S8320 - Summary

Extends the excelsior jobs program and certain incentives for medical equipment projects within such program.

2019-S8320 - Sponsor Memo

                                
 
BILL NUMBER: S8320

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the economic development law, in relation to the excels-
ior jobs program and certain incentives for medical equipment projects
within such program

 
PURPOSE:

This bill provides additional incentives through the Excelsior Jobs
Program if the project prioritizes medical equipment production or
development.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one adds a new subdivision 8b to section 352 of the economic
development law, to define what a "medical equipment project" is, in the
context of the Excelsior Jobs Program.

Section two amends subdivision 1 of section 353 of the economic develop-
ment law, to include medical equipment projects as a permitted business
to receive incentives from the Excelsior Jobs Program

Section three sets the jobs tax credit for medical equipment projects at
equal to the product of the gross wages paid and up to 8.5%, sets the
investment tax credit for medical equipment projects at 7% of the cost
or other basis, and sets the research and development tax credit for
medical equipment projects at up to 8% of the research and development
expenditures for activities conducted in New York State.

Section four sets the effective date.

 
JUSTIFICATION:

The COVID-19 pandemic has demonstrated the inability of our state or
country to provide sufficient Personal Protective Equipment (PPE) and
other medical equipment needed to address a crisis. Before the current
pandemic, about 50% of the world's PPE originated in China.(1) With that
equipment passing borders and traveling large distances to get to its
destination in the United States, the supply chain of this equipment
could easily be threatened by the closing of borders or lack of delivery
services due to an outbreak of illness.

New York must incentivize businesses willing to locate, develop, and
produce products made in the state so that an adequate supply is avail-
able for our medical facilities. Instead of purchasing ventilators,
medical testing supplies, PPE, and other equipment from foreign coun-
tries, New York State must have an established industry that could be
utilized during times of crisis. Further, more equipment will be needed
in the future, as more individuals may choose to wear masks or other
protective equipment to prevent any spread of disease. Ensuring New York
has its own base of medical equipment manufacturing and resources will
be vital to address outbreaks in the future.

At a time when unemployment is at record levels not seen since the Great
Depression, millions of New Yorkers are in need of work.  Attracting new
industries such as those that manufacture, research and develop, and
produce medical equipment will create new jobs, and connect unemployed
workers with new opportunities.

 
LEGISLATIVE HISTORY:

New legislation

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take immediately.
(1) https://www.pbs.orq/newshour/show/ after-cutthroat-global-
competition-for-ppe- u-s-seeks-to-rnake-more-at-horne

2019-S8320 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8320
 
                             I N  S E N A T E
 
                               May 11, 2020
                                ___________
 
 Introduced  by  Sen. KENNEDY -- 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, in relation to the excels-
   ior jobs program and certain incentives for medical equipment projects
   within such program

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 352 of the economic development law is  amended  by
 adding a new subdivision 8-b to read as follows:
   8-B. "MEDICAL EQUIPMENT PROJECT" MEANS A PROJECT DEEMED BY THE COMMIS-
 SIONER  TO MAKE PRODUCTS OR DEVELOP TECHNOLOGIES THAT ARE PRIMARILY USED
 BY MEDICAL  PROFESSIONALS  IN  A  PROFESSIONAL  OR  HOME  CARE  SETTING.
 PROJECTS SHALL INCLUDE, BUT NOT BE LIMITED TO, THE MANUFACTURE OF DEVEL-
 OPMENT  OF  PRODUCTS OR TECHNOLOGIES SUCH AS: PERSONAL PROTECTIVE EQUIP-
 MENT, OXYGEN AND OXYGEN DELIVERY  SYSTEMS,  VENTILATION  AND  ASPIRATION
 DEVICES,  RESPIRATORY  DISEASE  MANAGEMENT SERVICES, MONITORING DEVICES,
 FEEDING PUMPS, MEDICAL  TESTING  DEVICES,  AND  EQUIPMENT  NECESSARY  TO
 CONDUCT MEDICAL TESTS.
   §  2. Subdivision 1 of section 353 of the economic development law, as
 amended by section 2 of part L of chapter 59 of the  laws  of  2020,  is
 amended to read as follows:
   1. To be a participant in the excelsior jobs program, a business enti-
 ty shall operate in New York state predominantly:
   (a)  as  a financial services data center or a financial services back
 office operation;
   (b) in manufacturing;
   (c) in software development and new media;
   (d) in scientific research and development;
   (e) in agriculture;
   (f) in the creation or expansion of  back  office  operations  in  the
 state;
   (g) in a distribution center;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16263-01-0

 S. 8320                             2
 
   (h)  in  an  industry  with  significant  potential for private-sector
 economic growth and development in this  state  as  established  by  the
 commissioner  in  regulations  promulgated  pursuant to this article. In
 promulgating such regulations the commissioner  shall  include  job  and
 investment criteria;
   (i) as an entertainment company;
   (j) in music production;
   (k) as a life sciences company; [or]
   (l)  as  a  company operating in one of the industries listed in para-
 graphs (b) through (e) of this  subdivision  and  engaging  in  a  green
 project [as defined in section three hundred fifty-two of this article];
 OR
   (M)  AS  A  COMPANY OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARA-
 GRAPHS (B), (C), (D) OR (K)  OF  THIS  SUBDIVISION  AND  ENGAGING  IN  A
 MEDICAL EQUIPMENT PROJECT.
   §  3.  Subdivisions 1, 2 and 3 of section 355 of the economic develop-
 ment law, as amended by section 4 of part L of chapter 59 of the laws of
 2020, are amended to read as follows:
   1. Excelsior jobs tax credit component. A participant in the excelsior
 jobs program shall be eligible to claim a credit for each net new job it
 creates in New York state. In a project that is not a green project OR A
 MEDICAL EQUIPMENT PROJECT, the amount of such credit per  job  shall  be
 equal  to the product of the gross wages paid and up to 6.85 percent. In
 a green project, the amount of such credit per job shall be equal to the
 product of the gross wages paid and up to  7.5  percent.  IN  A  MEDICAL
 EQUIPMENT  PROJECT,  THE AMOUNT OF SUCH CREDIT PER JOB SHALL BE EQUAL TO
 THE PRODUCT OF THE GROSS WAGES PAID AND UP TO 8.5 PERCENT.
   2. Excelsior investment tax credit component.  A  participant  in  the
 excelsior  jobs program shall be eligible to claim a credit on qualified
 investments. In a project that is not  a  green  project  OR  A  MEDICAL
 EQUIPMENT  PROJECT, the credit shall be equal to two percent of the cost
 or other basis for federal income tax purposes of the qualified  invest-
 ment.  In  a green project, the credit shall be equal to five percent of
 the cost or other basis for federal income tax purposes of the qualified
 investment. IN A MEDICAL EQUIPMENT PROJECT, THE CREDIT SHALL BE EQUAL TO
 SEVEN 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 one of section two  hundred  ten-B,  subsection
 (a)  of  section  six  hundred six, the former 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 investment tax credit for research and develop-
 ment property. In addition, a taxpayer who  or  which  is  qualified  to
 claim  the  excelsior investment tax credit component and is also quali-
 fied to claim the brownfield tangible property  credit  component  under
 section twenty-one of the tax law may claim either the excelsior invest-
 ment  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 business 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

 S. 8320                             3
 
 of  eligibility  is issued are not eligible to be included in the calcu-
 lation of the credit.
   3.  Excelsior research and development tax credit component. A partic-
 ipant in the excelsior jobs program shall be eligible to claim a  credit
 equal  to  fifty  percent  of  the  portion of the participant's federal
 research and development tax credit that relates  to  the  participant's
 research and development expenditures in New York state during the taxa-
 ble  year;  provided however, if not a green project OR A MEDICAL EQUIP-
 MENT PROJECT, the excelsior research and development  tax  credit  shall
 not exceed six percent of the qualified research and development expend-
 itures  attributable to activities conducted in New York state, or, if a
 green project OR A MEDICAL EQUIPMENT PROJECT, the excelsior research and
 development tax credit shall not exceed eight percent  of  the  research
 and development expenditures attributable to activities conducted in New
 York  state. If the federal research and development credit has expired,
 then the research and development expenditures relating to  the  federal
 research  and  development  credit shall be calculated as if the federal
 research and development credit structure and definition  in  effect  in
 two  thousand  nine  were  still  in  effect.  Notwithstanding any other
 provision of this chapter to  the  contrary,  research  and  development
 expenditures  in  this state, including salary or wage expenses for jobs
 related to research and development activities in  this  state,  may  be
 used  as the basis for the excelsior research and development tax credit
 component and the  qualified  emerging  technology  company  facilities,
 operations and training credit under the tax law.
   § 4. This act shall take effect immediately.

2019-S8320A (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Amd §§352, 353 & 355, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S3471
2023-2024: S2026

2019-S8320A (ACTIVE) - Summary

Extends the excelsior jobs program and certain incentives for medical equipment projects within such program.

2019-S8320A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8320a

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the economic development law, in relation to the excels-
ior jobs program and certain incentives for medical equipment projects
within such program

 
PURPOSE:

This bill provides additional incentives through the Excelsior Jobs
Program if the project prioritizes medical equipment production or
development.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one adds a new subdivision 8b to section 352 of the economic
development law, to define what a "medical equipment project" is, in the
context of the Excelsior Jobs Program.

Section two amends subdivision 1 of section 353 of the economic develop-
ment law, to include medical equipment projects as a permitted business
to receive incentives from the Excelsior Jobs Program

Section three sets the jobs tax credit for medical equipment projects at
equal to the product of the gross wages paid and up to 8.5%, sets the
investment tax credit for medical equipment projects at 7% of the cost
or other basis, and sets the research and development tax credit for
medical equipment projects at up to 8% of the research and development
expenditures for activities conducted in New York State.

Section four sets the effective date.

 
JUSTIFICATION:

The COVID-19 pandemic has demonstrated the inability of our state or
country to provide sufficient Personal Protective Equipment (PPE) and
other medical equipment needed to address a crisis. Before the current
pandemic, about 50% of the world's PPE originated in China.(1) With that
equipment passing borders and traveling large distances to get to its
destination in the United States, the supply chain of this equipment
could easily be threatened by the closing of borders or lack of delivery
services due to an outbreak of illness.

New York must incentivize businesses willing to locate, develop, and
produce products made in the state so that an adequate supply is avail-
able for our medical facilities. Instead of purchasing ventilators,
medical testing supplies, PPE, and other equipment from foreign coun-
tries, New York State must have an established industry that could be
utilized during times of crisis. Further, more equipment will be needed
in the future, as more individuals may choose to wear masks or other
protective equipment to prevent any spread of disease. Ensuring New York
has its own base of medical equipment manufacturing and resources will
be vital to address outbreaks in the future.

At a time when unemployment is at record levels not seen since the Great
Depression, millions of New Yorkers are in need of work.  Attracting new
industries such as those that manufacture, research and develop, and
produce medical equipment will create new jobs, and connect unemployed
workers with new opportunities.

 
LEGISLATIVE HISTORY:

New legislation

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take immediately.

2019-S8320A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8320--A
 
                             I N  S E N A T E
 
                               May 11, 2020
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment  and  Small  Business  --  committee  discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the economic development law, in relation to the excels-
   ior jobs program and certain incentives for medical equipment projects
   within such program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 352 of the economic development law is amended by
 adding a new subdivision 8-b to read as follows:
   8-B. "MEDICAL EQUIPMENT PROJECT" MEANS A PROJECT DEEMED BY THE COMMIS-
 SIONER TO MAKE PRODUCTS OR DEVELOP TECHNOLOGIES THAT ARE PRIMARILY  USED
 BY  MEDICAL  PROFESSIONALS  IN  A  PROFESSIONAL  OR  HOME  CARE SETTING.
 PROJECTS SHALL INCLUDE, BUT NOT BE LIMITED TO, THE MANUFACTURE OF DEVEL-
 OPMENT OF PRODUCTS OR TECHNOLOGIES SUCH AS: PERSONAL  PROTECTIVE  EQUIP-
 MENT,  OXYGEN  AND  OXYGEN  DELIVERY SYSTEMS, VENTILATION AND ASPIRATION
 DEVICES, RESPIRATORY DISEASE MANAGEMENT  SERVICES,  MONITORING  DEVICES,
 FEEDING  PUMPS,  MEDICAL  TESTING  DEVICES,  AND  EQUIPMENT NECESSARY TO
 CONDUCT MEDICAL TESTS.
   § 2. Subdivision 1 of section 353 of the economic development law,  as
 amended  by  section  2  of part L of chapter 59 of the laws of 2020, is
 amended to read as follows:
   1. To be a participant in the excelsior jobs program, a business enti-
 ty shall operate in New York state predominantly:
   (a) as a financial services data center or a financial  services  back
 office operation;
   (b) in manufacturing;
   (c) in software development and new media;
   (d) in scientific research and development;
   (e) in agriculture;
   (f)  in  the  creation  or  expansion of back office operations in the
 state;
   (g) in a distribution center;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16263-02-0

 S. 8320--A                          2
 
   (h) in an  industry  with  significant  potential  for  private-sector
 economic  growth  and  development  in  this state as established by the
 commissioner in regulations promulgated pursuant  to  this  article.  In
 promulgating  such  regulations  the  commissioner shall include job and
 investment criteria;
   (i) as an entertainment company;
   (j) in music production;
   (k) as a life sciences company; [or]
   (l)  as  a  company operating in one of the industries listed in para-
 graphs (b) through (e) of this  subdivision  and  engaging  in  a  green
 project  as  defined in section three hundred fifty-two of this article;
 OR
   (M) AS A COMPANY OPERATING IN ONE OF THE INDUSTRIES  LISTED  IN  PARA-
 GRAPHS  (B),  (C),  (D)  OR  (K)  OF  THIS SUBDIVISION AND ENGAGING IN A
 MEDICAL EQUIPMENT PROJECT.
   § 3. Subdivisions 1, 2 and 3 of section 355 of the  economic  develop-
 ment law, as amended by section 4 of part L of chapter 59 of the laws of
 2020, are amended to read as follows:
   1. Excelsior jobs tax credit component. A participant in the excelsior
 jobs program shall be eligible to claim a credit for each net new job it
 creates in New York state. In a project that is not a green project OR A
 MEDICAL  EQUIPMENT  PROJECT,  the amount of such credit per job shall be
 equal to the product of the gross wages paid and up to 6.85 percent.  In
 a green project, the amount of such credit per job shall be equal to the
 product  of  the  gross  wages  paid and up to 7.5 percent. IN A MEDICAL
 EQUIPMENT PROJECT, THE AMOUNT OF SUCH CREDIT PER JOB SHALL BE  EQUAL  TO
 THE PRODUCT OF THE GROSS WAGES PAID AND UP TO 8.5 PERCENT.
   2.  Excelsior  investment  tax  credit component. A participant in the
 excelsior jobs program shall be eligible to claim a credit on  qualified
 investments.  In  a  project  that  is  not a green project OR A MEDICAL
 EQUIPMENT PROJECT, the credit shall be equal to two percent of the  cost
 or  other basis for federal income tax purposes of the qualified invest-
 ment. In a green project, the credit shall be equal to five  percent  of
 the cost or other basis for federal income tax purposes of the qualified
 investment. IN A MEDICAL EQUIPMENT PROJECT, THE CREDIT SHALL BE EQUAL TO
 SEVEN 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 one of section two hundred ten-B, subsection
 (a) of section six hundred six, the former  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 investment tax credit for research and develop-
 ment  property.  In  addition,  a  taxpayer who or which is qualified to
 claim the excelsior investment tax credit component and is  also  quali-
 fied  to  claim  the brownfield tangible property credit component under
 section twenty-one of the tax law may claim either the excelsior invest-
 ment 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 business 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

 S. 8320--A                          3
 
 of eligibility is issued are not eligible to be included in  the  calcu-
 lation of the credit.
   3.  Excelsior research and development tax credit component. A partic-
 ipant in the excelsior jobs program shall be eligible to claim a  credit
 equal  to  fifty  percent  of  the  portion of the participant's federal
 research and development tax credit that relates  to  the  participant's
 research and development expenditures in New York state during the taxa-
 ble  year;  provided however, if not a green project OR A MEDICAL EQUIP-
 MENT PROJECT, the excelsior research and development  tax  credit  shall
 not exceed six percent of the qualified research and development expend-
 itures  attributable to activities conducted in New York state, or, if a
 green project OR A MEDICAL EQUIPMENT PROJECT, the excelsior research and
 development tax credit shall not exceed eight percent  of  the  research
 and development expenditures attributable to activities conducted in New
 York  state. If the federal research and development credit has expired,
 then the research and development expenditures relating to  the  federal
 research  and  development  credit shall be calculated as if the federal
 research and development credit structure and definition  in  effect  in
 two  thousand  nine  were  still  in  effect.  Notwithstanding any other
 provision of this chapter to  the  contrary,  research  and  development
 expenditures  in  this state, including salary or wage expenses for jobs
 related to research and development activities in  this  state,  may  be
 used  as the basis for the excelsior research and development tax credit
 component and the  qualified  emerging  technology  company  facilities,
 operations and training credit under the tax law.
   § 4. This act shall take effect immediately.

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