Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Apr 09, 2022 |
signed chap.59 delivered to governor |
Apr 07, 2022 |
returned to senate passed assembly message of necessity - 3 day message ordered to third reading rules cal.71 substituted for a9009c |
Apr 07, 2022 |
substituted by s8009c rules report cal.71 reported reported referred to rules print number 9009c |
Apr 07, 2022 |
amend (t) and recommit to ways and means |
Mar 12, 2022 |
print number 9009b |
Mar 12, 2022 |
amend (t) and recommit to ways and means |
Feb 22, 2022 |
print number 9009a |
Feb 22, 2022 |
amend (t) and recommit to ways and means |
Jan 19, 2022 |
referred to ways and means |
Assembly Bill A9009
Signed By Governor2021-2022 Legislative Session
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2022-2023 state fiscal year
download bill text pdfSponsored By
There are no sponsors of this bill.
Archive: Last Bill Status Via S8009 - Signed by Governor
- Introduced
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- In Committee Assembly
- In Committee Senate
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- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
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Floor Vote: Apr 7, 2022
aye (60)- Addabbo Jr.
- Akshar
- Bailey
- Biaggi
- Borrello
- Boyle
- Breslin
- Brooks
- Brouk
- Cleare
- Comrie
- Cooney
- Felder
- Gallivan
- Gaughran
- Gianaris
- Gounardes
- Griffo
- Harckham
- Hinchey
- Hoylman-Sigal
- Jackson
- Jordan
- Kaminsky
- Kaplan
- Kavanagh
- Kennedy
- Krueger
- Lanza
- Liu
- Mannion
- Martucci
- Mattera
- May
- Mayer
- Myrie
- O'Mara
- Oberacker
- Ortt
- Palumbo
- Parker
- Persaud
- Ramos
- Rath III
- Reichlin-Melnick
- Ritchie
- Rivera
- Ryan
- Sanders Jr.
- Savino
- Sepúlveda
- Serino
- Serrano
- Skoufis
- Stavisky
- Stec
- Stewart-Cousins
- Tedisco
- Thomas
- Weik
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Apr 7, 2022 - Finance Committee Vote
S800914Aye4Nay3Aye with Reservations2Absent0Excused0Abstained -
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Bill Amendments
2021-A9009 - Details
- See Senate Version of this Bill:
- S8009
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2021-A9009 - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2022-2023 state fiscal year; accelerates middle class tax cuts (Subpart A); provides for an alternative tax table benefit recapture for certain taxpayers (Subpart B)(Part A); provides an enhanced investment tax credit to farmers (Subpart A)
2021-A9009 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 8009 A. 9009 S E N A T E - A S S E M B L Y January 19, 2022 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to accelerating the middle- class tax cut (Part A); to amend the tax law, in relation to providing an enhanced investment tax credit to farmers (Subpart A); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relat- ing to creating a farm workforce retention credit, in relation to the effectiveness of such credit (Subpart B); and to amend the tax law, in relation to establishing a farm employer overtime credit (Subpart C) (Part B); to amend the tax law and the administrative code of the city of New York, in relation to expanding the small business subtraction modification (Part C); to amend the tax law, in relation to excluding certain loan forgiveness awards from state income tax (Part D); to amend the economic development law and the tax law, in relation to creating the COVID-19 capital costs tax credit program (Part E); to amend the tax law and the state finance law, in relation to extending and expanding the New York city musical and theatrical production tax credit and the purposes of the New York state council on the arts cultural programs fund; and to amend subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to establishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund, in relation to the effectiveness ther- eof (Part F); to amend the tax law, in relation to establishing a permanent rate for the metropolitan transportation business tax surcharge (Part G); to amend the tax law, in relation to extending and modifying the hire a vet credit (Part H); to amend the tax law, in relation to establishing a tax credit for the conversion from grade no. 6 heating oil usage to biodiesel heating oil and geothermal systems (Part I); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part J); to amend the tax law, in EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted. LBD12674-01-2 S. 8009 2 A. 9009 relation to extending the clean heating fuel credit for three years (Part K); to amend chapter 604 of the laws of 2011 amending the tax law relating to the credit for companies who provide transporta- tion to people with disabilities, in relation to the effectiveness thereof; and to amend the tax law, in relation to the application of a credit for companies who provide transportation to individuals with disabilities (Part L); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part M); to amend the labor law, in relation to extending the New York youth jobs program tax credit (Part N); to amend the labor law, in relation to extending the empire state apprenticeship tax credit program (Part O); to amend the tax law, in relation to extend- ing the alternative fuels and electric vehicle recharging property credit (Part P); to amend the labor law, in relation to the program period for the workers with disabilities tax credit program; and to amend part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabili- ties tax credit program, in relation to the effectiveness thereof (Part Q); to amend the tax law, in relation to making changes conform- ing to the federal taxation of S corporations; and to repeal certain provisions of such law relating thereto (Part R); to amend the tax law, in relation to the investment tax credit (Part S); to amend the tax law, in relation to exempting certain fuels used by tugboats and towboats from the petroleum business tax (Part T); to amend the tax law, in relation to the authority of counties to impose sales and compensating use taxes; and to repeal certain provisions of such law relating thereto (Part U); to amend the tax law, in relation to requiring vacation rental marketplace providers collect sales tax (Part V); to amend the tax law in relation to requiring publication of changes in withholding tables and interest rates (Part W); to amend the tax law, in relation to expanding the definition of financial institution under the financial institution data match program (Part X); to amend the real property tax law and chapter 475 of the laws of 2013, relating to assessment ceilings for local public utility mass real property, in relation to extending the assessment ceiling for local public utility mass real property to January 1, 2027 (Part Y); to amend the real property tax law, in relation to good cause refunds for the STAR program (Subpart A); to amend the real property tax law, in relation to moving up the deadline for taxpayers to switch from the STAR exemption to the STAR credit (Subpart B); to amend the tax law, in relation to clarifying the applicable income tax year for the basic STAR credit (Subpart C); to amend the tax law, in relation to allowing names of STAR credit recipients to be shared with assessors outside of New York state (Subpart D); and to amend the tax law and the real property tax law, in relation to allowing decedent reports to be given to assessors and improving the tax enforcement process as it relates to decedents (Subpart E) (Part Z); to amend the real property tax law, in relation to the grievance process with respect to the valuation of solar and wind energy systems (Part AA); to amend the tax law, in relation to establishing a homeowner tax rebate credit (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to gaming facility determinations and licensing (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to the utilization of funds in the Catskill and Capital regions off- track betting corporation's capital acquisition funds; and to amend chapter 59 of the laws of 2021 amending the racing, pari-mutuel wager- S. 8009 3 A. 9009 ing and breeding law, relating to the utilization of funds in the Catskill and Capital regions off-track betting corporation's capital acquisition funds, in relation to the effectiveness thereof (Part DD); and to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting; to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part EE) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2022-2023 state fiscal year. Each component is wholly contained within a Part identified as Parts A through EE. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, clauses (vi), (vii) and (viii) as amended and clause (ix) as added by section 1 of part A of chapter 59 of the laws of 2021, are amended to read as follows: (vi) For taxable years beginning in two thousand twenty-three AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: [If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 but not over $18,834 plus 6.85% of $2,155,350 excess over $323,200 Over $2,155,350 but not over $144,336 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,845 plus 10.30% of excess over S. 8009 4 A. 9009 $25,000,000 $5,000,000 Over $25,000,000 $2,478,845 plus 10.90% of excess over $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 but not over $18,544 plus 6.85% of excess over $2,155,350 $323,200 Over $2,155,350 but not over $144,047 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,555 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,478,555 plus 10.90% of excess over $25,000,000 (viii) For taxable years beginning after two thousand twenty-four and before two thousand twenty-eight the following rates shall apply:] If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 but not over $18,252 plus 6.85% of excess over $2,155,350 $323,200 Over $2,155,350 but not over $143,754 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,263 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,478,263 plus 10.90% of excess over $25,000,000 [(ix)](VII) For taxable years beginning after two thousand twenty-sev- en the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess S. 8009 5 A. 9009 over $161,550 Over $323,200 but not over $18,252 plus 6.85% of excess $2,155,350 over $323,200 Over $2,155,350 $143,754 plus 8.82% of excess over $2,155,350 § 2. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of para- graph 1 of subsection (b) of section 601 of the tax law, clauses (vi), (vii) and (viii) as amended and clause (ix) as added by section 2 of part A of chapter 59 of the laws of 2021, are amended to read as follows: (vi) For taxable years beginning in two thousand twenty-three AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: [If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 but not over $15,845 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 but not over $108,125 plus 9.65% of excess over $5,000,000 $1,616,450 Over $5,000,000 but not over $434,638 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,638 plus 10.90% of excess over $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 but not over $15,612 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 but not over $107,892 plus 9.65% of excess over $5,000,000 $1,616,450 Over $5,000,000 but not over $434,404 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,404 plus 10.90% of excess over $25,000,000 (viii) For taxable years beginning after two thousand twenty-four and before two thousand twenty-eight the following rates shall apply:] If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over S. 8009 6 A. 9009 $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over $20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over $107,650 Over $269,300 but not over $15,371 plus 6.85% of excess over $1,616,450 $269,300 Over $1,616,450 but not over $107,651 plus 9.65% of excess over $5,000,000 $1,616,450 Over $5,000,000 but not over $434,163 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,163 plus 10.90% of excess over $25,000,000 [(ix)](VII) For taxable years beginning after two thousand twenty-sev- en the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $512 plus 4.5% of excess over $17,650 $12,800 Over $17,650 but not over $730 plus 5.25% of excess over $20,900 $17,650 Over $20,900 but not over $901 plus 5.5% of excess over $107,650 $20,900 Over $107,650 but not over $5,672 plus 6.00% of excess $269,300 over $107,650 Over $269,300 but not over $15,371 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $107,651 plus 8.82% of excess over $1,616,450 § 3. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of para- graph 1 of subsection (c) of section 601 of the tax law, clauses (vi), (vii) and (viii) as amended, and clause (ix) as added by section 3 of part A of chapter 59 of the laws of 2021, are amended to read as follows: (vi) For taxable years beginning in two thousand twenty-three AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: [If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 but not over $12,738 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 but not over $71,796 plus 9.65% of excess over $5,000,000 $1,077,550 Over $5,000,000 but not over $450,312 plus 10.30% of excess over S. 8009 7 A. 9009 $25,000,000 $5,000,000 Over $25,000,000 $2,510,312 plus 10.90% of excess over $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 but not over $12,550 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 but not over $71,608 plus 9.65% of excess over $5,000,000 $1,077,550 Over $5,000,000 but not over $450,124 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,510,124 plus 10.90% of excess over $25,000,000 (viii) For taxable years beginning after two thousand twenty-four and before two thousand twenty-eight the following rates shall apply:] If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 but not over $12,356 plus 6.85% of excess over $1,077,550 $215,400 Over $1,077,550 but not over $71,413 plus 9.65% of excess over $5,000,000 $1,077,550 Over $5,000,000 but not over $449,929 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,509,929 plus 10.90% of excess over $25,000,000 [(ix)](VII) For taxable years beginning after two thousand twenty-sev- en the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 but not over $12,356 plus 6.85% of excess S. 8009 8 A. 9009 $1,077,550 over $215,400 Over $1,077,550 $71,413 plus 8.82% of excess over $1,077,550 § 4. This act shall take effect immediately. PART B Section 1. This act enacts into law components of legislation relating to certain tax credits. Each component is wholly contained within a Subpart identified as Subparts A through C. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this act sets forth the general effective date of this act. SUBPART A Section 1. Subdivision 1 of section 210-B of the tax law is amended by adding a new paragraph (a-1) to read as follows: (A-1) FOR A TAXPAYER THAT IS AN ELIGIBLE FARMER, AS DEFINED IN SUBDI- VISION ELEVEN OF THIS SECTION, THE PERCENTAGE TO BE USED TO COMPUTE THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL BE TWENTY PERCENT FOR PROP- ERTY DESCRIBED IN SUBPARAGRAPH (I) OF PARAGRAPH (B) OF THIS SUBDIVISION THAT IS PRINCIPALLY USED BY THE TAXPAYER IN THE PRODUCTION OF GOODS BY FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE OR VITICULTURE. § 2. Subsection (a) of section 606 of the tax law is amended by adding a new paragraph 1-a to read as follows: (1-A) FOR A TAXPAYER THAT IS AN ELIGIBLE FARMER, AS DEFINED IN SUBSECTION (N) OF THIS SECTION, THE PERCENTAGE TO BE USED TO COMPUTE THE CREDIT ALLOWED UNDER THIS SUBSECTION SHALL BE TWENTY PERCENT FOR PROPER- TY DESCRIBED IN SUBPARAGRAPH (A) OF PARAGRAPH TWO OF THIS SUBSECTION THAT IS PRINCIPALLY USED BY THE TAXPAYER IN THE PRODUCTION OF GOODS BY FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE OR VITICULTURE. § 3. This act shall take effect immediately and apply to property placed in service on or after April 1, 2022. SUBPART B Section 1. Subsection (e) of section 42 of the tax law, as amended by section 1 of part FF of chapter 59 of the laws of 2021, is amended to read as follows: (e) For taxable years beginning on or after January first, two thou- sand seventeen and before January first, two thousand eighteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and two hundred fifty dollars. For taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and three hundred dollars. For taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty, the amount of the credit allowed under this section shall be equal to the S. 8009 9 A. 9009 product of the total number of eligible farm employees and five hundred dollars. For taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and four hundred dollars. For taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand [twenty-five] TWENTY-SIX, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and [six] TWELVE hundred dollars. § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, as amended by section 2 of part FF of chapter 59 of the laws of 2021, is amended to read as follows: § 5. This act shall take effect immediately and shall apply only to taxable years beginning on or after January 1, 2017 and before January 1, [2025] 2026. § 3. This act shall take effect immediately. SUBPART C Section 1. Subdivision (f) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (f) A taxpayer claiming the credit allowed under this section shall not be allowed to claim any other tax credit allowed under this chapter, EXCEPT THE CREDIT ALLOWED UNDER SECTION FORTY-TWO-A OF THIS ARTICLE, with respect to any eligible farm employee included in the total number of eligible farm employees used to determine the amount of the credit allowed under this section. § 2. The tax law is amended by adding a new section 42-a to read as follows: § 42-A. FARM EMPLOYER OVERTIME CREDIT. (A) NOTWITHSTANDING SUBDIVISION (F) OF SECTION FORTY-TWO OF THIS ARTICLE, A TAXPAYER THAT IS A FARM EMPLOYER OR AN OWNER OF A FARM EMPLOYER SHALL BE ELIGIBLE FOR A CREDIT AGAINST THE TAX IMPOSED UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP- TER, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (H) OF THIS SECTION. (B) A FARM EMPLOYER IS A CORPORATION (INCLUDING A NEW YORK S CORPO- RATION), A SOLE PROPRIETORSHIP, A LIMITED LIABILITY COMPANY OR A PART- NERSHIP THAT IS AN ELIGIBLE FARMER. (C) FOR PURPOSES OF THIS SECTION, THE TERM "ELIGIBLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING AS DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER FOR THE TAXA- BLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT OF FEDERAL GROSS INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR IN EXCESS OF THIRTY THOUSAND DOLLARS. FOR PURPOSES OF THIS SECTION, PAYMENTS FROM THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM FARMING FOR OTHERWISE ELIGIBLE FARMERS. (D) AN ELIGIBLE FARM EMPLOYEE IS AN INDIVIDUAL WHO MEETS THE DEFI- NITION OF A "FARM LABORER" UNDER SECTION TWO OF THE LABOR LAW WHO IS EMPLOYED BY A FARM EMPLOYER IN NEW YORK STATE, BUT EXCLUDING GENERAL EXECUTIVE OFFICERS OF THE FARM EMPLOYER. S. 8009 10 A. 9009 (E) ELIGIBLE OVERTIME IS THE AGGREGATE NUMBER OF HOURS OF WORK PERFORMED DURING THE TAXABLE YEAR BY AN ELIGIBLE FARM EMPLOYEE THAT IN ANY CALENDAR WEEK EXCEEDS THE OVERTIME WORK THRESHOLD SET BY THE COMMIS- SIONER OF LABOR PURSUANT TO THE RECOMMENDATION OF THE FARM LABORERS WAGE BOARD, PROVIDED THAT WORK PERFORMED IN SUCH CALENDAR WEEK IN EXCESS OF SIXTY HOURS SHALL NOT BE INCLUDED. (F) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM- ER'S FEDERAL GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE FROM A LICENSED FARM WINERY AS PROVIDED FOR IN ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW, OR FROM THE SALE OF CIDER FROM A LICENSED FARM CIDERY AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVER- AGE CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE FARMER SHALL BE INCLUDED FOR PURPOSES OF CALCULATING THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION ONLY IF SUCH ELIGIBLE FARM EMPLOYEE IS EMPLOYED BY SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL PROPERTY AS DEFINED IN PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. (G) THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE AGGREGATE AMOUNT OF SUCH CREDIT ALLOWED PER ELIGIBLE FARM EMPLOY- EE, AS FOLLOWS. THE AMOUNT OF THE CREDIT ALLOWED PER ELIGIBLE FARM EMPLOYEE SHALL BE EQUAL TO THE PRODUCT OF (I) THE ELIGIBLE OVERTIME WORKED DURING THE TAXABLE YEAR BY THE ELIGIBLE FARM EMPLOYEE AND (II) THE OVERTIME RATE PAID BY THE FARM EMPLOYER TO THE ELIGIBLE FARM EMPLOY- EE LESS SUCH EMPLOYEE'S REGULAR RATE OF PAY. (H) CROSS REFERENCES: FOR APPLICATION OF THE CREDIT PROVIDED IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58. (2) ARTICLE 22: SECTION 606, SUBSECTION (NNN). § 3. Section 210-B of the tax law is amended by adding a new subdivi- sion 58 to read as follows: 58. FARM EMPLOYER OVERTIME CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAY- ER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO-A OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) FARM EMPLOYER OVERTIME AMOUNT OF CREDIT UNDER CREDIT UNDER SUBSECTION (NNN) SUBDIVISION FIFTY-EIGHT OF SECTION TWO HUNDRED TEN-B § 5. Section 606 of the tax law is amended by adding a new subsection (nnn) to read as follows: (NNN) FARM EMPLOYER OVERTIME CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO-A OF THIS CHAP- TER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. S. 8009 11 A. 9009 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED IN ACCORDANCE WITH THE PROVISION OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. § 6. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. § 2. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through C of this act shall be as specifically set forth in the last section of such Subparts. PART C Section 1. Paragraph 39 of subsection (c) of section 612 of the tax law, as added by section 1 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (39) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of GREATER THAN ZERO BUT less than two hundred fifty thousand dollars; (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NET FARM INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS; OR (III) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE; AND (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA- BLE YEAR. S. 8009 12 A. 9009 (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- NIES, PARTNERSHIPS, OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. § 2. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- istrative code of the city of New York, as added by section 2 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (35) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of GREATER THAN ZERO BUT less than two hundred fifty thousand dollars; (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NET FARM INCOME THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS; OR (III) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OR PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THE TAX LAW, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THE TAX LAW FOR THE TAXA- BLE YEAR. (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- NIES, PARTNERSHIPS, OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. S. 8009 13 A. 9009 PART D Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 46 to read as follows: (46) THE AMOUNT OF ANY STUDENT LOAN FORGIVENESS AWARD MADE PURSUANT TO A PROGRAM ESTABLISHED UNDER ARTICLE FOURTEEN OF THE EDUCATION LAW TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME. § 2. This act shall take effect immediately and shall apply to tax years beginning on or after January 1, 2022. PART E Section 1. The economic development law is amended by adding a new article 26 to read as follows: ARTICLE 26 COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM SECTION 480. SHORT TITLE. 481. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. 482. DEFINITIONS. 483. ELIGIBILITY CRITERIA. 484. APPLICATION AND APPROVAL PROCESS. 485. COVID-19 CAPITAL COSTS TAX CREDIT. 486. POWERS AND DUTIES OF THE COMMISSIONER. 487. MAINTENANCE OF RECORDS. 488. CAP ON TAX CREDIT. § 480. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM ACT". § 481. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS HEREBY FOUND AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF PUBLIC POLICY, TO PROVIDE CRITICAL ASSISTANCE TO SMALL BUSINESSES TO COMPLY WITH PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS, AND TO TAKE INFECTIOUS DISEASE MITIGATION MEASURES RELATED TO THE COVID-19 PANDEMIC. THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM IS CREATED TO PROVIDE FINANCIAL ASSISTANCE TO ECONOMICALLY HARMED BUSINESSES TO OFFER RELIEF AND REDUCE THE DURATION AND SEVERITY OF THE CURRENT ECONOMIC DIFFICUL- TIES. § 482. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE: 1. "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A BUSINESS ENTITY BY THE DEPARTMENT AFTER THE DEPARTMENT HAS VERIFIED THAT THE BUSINESS ENTITY HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE. THE CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF THE TAX CRED- IT UNDER THIS ARTICLE THAT A BUSINESS ENTITY MAY CLAIM, PURSUANT TO SECTION FOUR HUNDRED EIGHTY-FIVE OF THIS ARTICLE. 2. "COMMISSIONER" SHALL MEAN COMMISSIONER OF THE DEPARTMENT OF ECONOM- IC DEVELOPMENT. 3. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF ECONOMIC DEVELOPMENT. 4. "QUALIFIED COVID-19 CAPITAL COSTS" SHALL MEAN COSTS INCURRED FROM JANUARY FIRST, TWO THOUSAND TWENTY-ONE THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO AT A BUSINESS LOCATION IN NEW YORK STATE TO COMPLY WITH PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS RELATED TO THE COVID-19 PANDEMIC, OR TO GENERALLY INCREASE SAFETY THROUGH INFECTIOUS DISEASE MITIGATION, INCLUDING COSTS FOR: (I) SUPPLIES TO DISINFECT AND/OR PROTECT AGAINST COVID-19 TRANSMISSION; (II) RESTOCK- ING OF PERISHABLE GOODS TO REPLACE THOSE LOST DURING THE COVID-19 PANDEMIC; (III) PHYSICAL BARRIERS AND SNEEZE GUARDS; (IV) HAND SANITIZER STATIONS; (V) RESPIRATORY DEVICES SUCH AS AIR PURIFIER SYSTEMS INSTALLED S. 8009 14 A. 9009 AT THE BUSINESS ENTITY'S LOCATION; (VI) SIGNAGE RELATED TO THE COVID-19 PANDEMIC INCLUDING, BUT NOT LIMITED TO, SIGNAGE DETAILING VACCINE AND MASKING REQUIREMENTS, AND SOCIAL DISTANCING; (VII) MATERIALS REQUIRED TO DEFINE AND/OR PROTECT SPACE SUCH AS BARRIERS; (VIII) MATERIALS NEEDED TO BLOCK OFF CERTAIN SEATS TO ALLOW FOR SOCIAL DISTANCING; (IX) CERTAIN POINT OF SALE PAYMENT EQUIPMENT TO ALLOW FOR CONTACTLESS PAYMENT; (X) EQUIPMENT AND/OR MATERIALS AND SUPPLIES FOR NEW PRODUCT LINES IN RESPONSE TO THE COVID-19 PANDEMIC; (XI) SOFTWARE FOR ONLINE PAYMENT PLATFORMS TO ENABLE DELIVERY OR CONTACTLESS PURCHASES; (XII) BUILDING CONSTRUCTION AND RETROFITS TO ACCOMMODATE SOCIAL DISTANCING AND INSTAL- LATION OF AIR PURIFYING EQUIPMENT BUT NOT FOR COSTS FOR NON-COVID-19 PANDEMIC RELATED CAPITAL RENOVATIONS OR GENERAL "CLOSED FOR RENOVATIONS" UPGRADES; (XIII) MACHINERY AND EQUIPMENT TO ACCOMMODATE CONTACTLESS SALES; (XIV) MATERIALS TO ACCOMMODATE INCREASED OUTDOOR ACTIVITY SUCH AS HEAT LAMPS, OUTDOOR LIGHTING, AND MATERIALS RELATED TO OUTDOOR SPACE EXPANSIONS; AND (XV) OTHER COSTS AS DETERMINED BY THE DEPARTMENT TO BE ELIGIBLE UNDER THIS SECTION; PROVIDED, HOWEVER, THAT "QUALIFIED COVID-19 CAPITAL COSTS" DO NOT INCLUDE ANY COST PAID FOR WITH OTHER COVID-19 GRANT FUNDS AS DETERMINED BY THE COMMISSIONER. § 483. ELIGIBILITY CRITERIA. 1. TO BE ELIGIBLE FOR A TAX CREDIT UNDER THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM, A BUSINESS ENTITY MUST: (A) BE A SMALL BUSINESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THIS CHAPTER AND HAVE TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OR LESS OF GROSS RECEIPTS IN THE TAXABLE YEAR THAT INCLUDES DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-ONE; AND (B) OPERATE A BUSINESS LOCATION IN NEW YORK STATE. 2. A BUSINESS ENTITY MUST BE IN SUBSTANTIAL COMPLIANCE WITH ANY PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS RELATED TO THE ENTITY'S BUSINESS SECTOR OR OTHER LAWS AND REGULATIONS AS DETERMINED BY THE COMMISSIONER. IN ADDITION, A BUSINESS ENTITY MAY NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED BINDING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY. § 484. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER. 2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES AND A TIMEFRAME FOR BUSINESS ENTITIES TO SUBMIT APPLICATIONS. AS PART OF THE APPLICATION, EACH BUSINESS ENTITY MUST: (A) PROVIDE EVIDENCE IN A FORM AND MANNER PRESCRIBED BY THE COMMIS- SIONER OF THEIR BUSINESS ELIGIBILITY; (B) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE BUSINESS ENTITY'S TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS PROGRAM SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW; (C) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE; (D) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT IS IN SUBSTANTIAL COMPLIANCE WITH ALL EMERGENCY ORDERS OR PUBLIC HEALTH REGULATIONS CURRENTLY REQUIRED OF SUCH ENTITY, AND LOCAL, AND STATE TAX LAWS; (E) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT DID NOT INCLUDE ANY COST PAID FOR WITH OTHER COVID-19 GRANT FUNDS AS DETERMINED BY THE COMMISSIONER IN ITS APPLICATION FOR A TAX CREDIT UNDER THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM; AND (F) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE DEPARTMENT RELEVANT TO THIS ARTICLE. S. 8009 15 A. 9009 3. AFTER REVIEWING A BUSINESS ENTITY'S COMPLETED FINAL APPLICATION AND DETERMINING THAT THE BUSINESS ENTITY MEETS THE ELIGIBILITY CRITERIA AS SET FORTH IN THIS ARTICLE, THE DEPARTMENT MAY ISSUE TO THAT BUSINESS ENTITY A CERTIFICATE OF TAX CREDIT. 4. THE BUSINESS ENTITY MUST SUBMIT ITS APPLICATION WITHIN FORTY-FIVE DAYS AFTER THE EARLIER OF: (A) THE LAST DAY IT INCURRED QUALIFIED COVID-19 CAPITAL COSTS, OR (B) DECEMBER THIRTY-FIRST, TWO THOUSAND TWEN- TY-TWO. THE DATE SPECIFIED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVISION IS THE BUSINESS ENTITY'S APPLICATION DEADLINE. § 485. COVID-19 CAPITAL COSTS TAX CREDIT. 1. A BUSINESS ENTITY IN THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SECTION FOUR HUNDRED EIGHTY-THREE OF THIS ARTICLE MAY BE ELIGIBLE TO CLAIM A CREDIT EQUAL TO FIFTY PERCENT OF ITS QUALIFIED COVID-19 CAPITAL COSTS AS DEFINED IN SUBDIVISION FOUR OF SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE. 2. A BUSINESS ENTITY, INCLUDING A PARTNERSHIP, LIMITED LIABILITY COMPANY AND SUBCHAPTER S CORPORATION, MAY NOT RECEIVE IN EXCESS OF TWEN- TY-FIVE THOUSAND DOLLARS UNDER THIS PROGRAM. 3. THE CREDIT SHALL BE ALLOWED AS PROVIDED IN SECTION FORTY-SEVEN, SUBDIVISION FIFTY-EIGHT OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (NNN) OF SECTION SIX HUNDRED SIX OF THE TAX LAW. 4. A BUSINESS ENTITY MAY CLAIM THE TAX CREDIT IN THE TAXABLE YEAR THAT INCLUDES THE BUSINESS ENTITY'S APPLICATION DEADLINE AS DEFINED BY SUBDI- VISION FOUR OF SECTION FOUR HUNDRED EIGHTY-FOUR OF THIS CHAPTER. HOWEV- ER, IF SUCH APPLICATION DEADLINE OCCURRED ON OR BEFORE DECEMBER THIRTY- FIRST, TWO THOUSAND TWENTY-ONE, THE BUSINESS ENTITY MAY CLAIM THE CREDIT ON ITS TAX RETURN FOR THE TAXABLE YEAR THAT INCLUDES DECEMBER THIRTY- FIRST, TWO THOUSAND TWENTY-TWO. § 486. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER MAY PROMULGATE REGULATIONS ESTABLISHING AN APPLICATION PROCESS AND ELIGIBIL- ITY CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES OF THIS ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-EIGHT OF THIS ARTICLE WHICH, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS. 2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE ISSUED BY THE COMMISSIONER TO ELIGIBLE BUSINESSES. SUCH CERTIFICATE SHALL CONTAIN SUCH INFORMATION AS REQUIRED BY THE DEPARTMENT OF TAXATION AND FINANCE. 3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY BUSI- NESS ENTITY FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-THREE OF THIS ARTICLE, OR FOR FAILING TO MEET THE REQUIREMENTS SET FORTH IN SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-FOUR OF THIS ARTICLE. § 487. MAINTENANCE OF RECORDS. EACH BUSINESS ENTITY PARTICIPATING IN THE PROGRAM SHALL KEEP ALL RELEVANT RECORDS FOR THEIR DURATION OF PROGRAM PARTICIPATION FOR AT LEAST THREE YEARS. § 488. CAP ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE MAY NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS. § 2. The tax law is amended by adding a new section 47 to read as follows: § 47. COVID-19 CAPITAL COSTS TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP- S. 8009 16 A. 9009 TER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (F) OF THIS SECTION. THE AMOUNT OF THE CREDIT IS EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SECTION FOUR HUNDRED EIGHTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW. NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER WHICH IS INCLUDED AS PART OF THE CALCU- LATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT ALLOWED UNDER THIS CHAPTER. (B) ELIGIBILITY. TO BE ELIGIBLE FOR THE COVID-19 CAPITAL COSTS TAX CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF TAX CREDIT BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO SUBDIVISION THREE OF SECTION FOUR HUNDRED EIGHTY-FOUR OF THE ECONOMIC DEVELOPMENT LAW, WHICH CERTIFICATE SHALL SET FORTH THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED FOR THE TAXABLE YEAR. THE TAXPAYER SHALL BE ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT FOR THAT TAXABLE YEAR. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER S CORPORATION THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION. (C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT. (D) INFORMATION SHARING. NOTWITHSTANDING ANY PROVISION OF THIS CHAP- TER, EMPLOYEES OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPART- MENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE: (1) INFORMATION DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT TO A TAXPAYER'S ELIGIBILITY TO PARTICIPATE IN THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM; (2) INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED OR CLAIMED PURSUANT TO THIS SECTION AND TAXPAYERS THAT ARE APPLYING FOR THE CREDIT OR THAT ARE CLAIMING THE CREDIT; AND (3) INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM FORMS SUBMITTED TO THE DEPARTMENT AND APPLICATIONS FOR ADMISSION INTO THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM. EXCEPT AS PROVIDED IN PARA- GRAPH TWO OF THIS SUBDIVISION, ALL INFORMATION EXCHANGED BETWEEN THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT SHALL NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFOR- MATION LAW. (E) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER ARTICLE TWENTY-SIX OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH DEPARTMENT, THE AMOUNT OF CREDIT DESCRIBED IN THIS SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL. (F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58; (2) ARTICLE 22: SECTION 606, SUBSECTION (NNN). § 3. Section 210-B of the tax law is amended by adding a new subdivi- sion 58 to read as follows: 58. COVID-19 CAPITAL COSTS TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE. S. 8009 17 A. 9009 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON. § 4. Section 606 of the tax law is amended by adding a new subsection (nnn) to read as follows: (NNN) COVID-19 CAPITAL COSTS TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) COVID-19 CAPITAL COSTS AMOUNT OF CREDIT UNDER TAX CREDIT UNDER SUBSECTION (NNN) SUBDIVISION 58 OF SECTION TWO HUNDRED TEN-B § 6. This act shall take effect immediately. PART F Section 1. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (2) The amount of the credit shall be the product (or pro rata share of the product, in the case of a member of a partnership) of twenty-five percent and the sum of the qualified production expenditures paid for during the qualified New York city musical and theatrical production's credit period. Provided however that the amount of the credit cannot exceed three million dollars per qualified New York city musical and theatrical production for productions whose first performance is [during the first year in which applications are accepted] PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-THREE. For productions whose first perform- ance is [during the second year in which applications are accepted] ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, such cap shall decrease to one million five hundred thousand dollars per qualified New York city musical and theatrical production unless the New York city tourism economy has not sufficiently recovered, as determined by the department of economic development in consultation with the division of the budget. In determining whether the New York city tourism economy has sufficiently recovered, the department of economic development will perform an analysis of key New York city economic indicators which shall include, but not be limited to, hotel occupancy rates and travel S. 8009 18 A. 9009 metrics. The department of economic development's analysis shall also be informed by the status of any remaining COVID-19 restrictions affecting New York city musical and theatrical productions. In no event shall a qualified New York city musical and theatrical production be eligible for more than one credit under this program. § 2. Subparagraph (i) of paragraph 5 of subdivision (b) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (i) "The credit period of a qualified New York city musical and theat- rical production company" is the period starting on the production start date and ending on the earlier of the date the qualified musical and theatrical production has expended sufficient qualified production expenditures to reach its credit cap, [March thirty-first] SEPTEMBER THIRTIETH, two thousand twenty-three or the date the qualified musical and theatrical production closes. § 3. Paragraph 1 of subdivision (f) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (1) The aggregate amount of tax credits allowed under this section, subdivision fifty-seven of section two hundred ten-B and subsection (mmm) of section six hundred six of this chapter shall be [one] TWO hundred million dollars. Such aggregate amount of credits shall be allo- cated by the department of economic development among taxpayers based on the date of first performance of the qualified musical and theatrical production. § 4. Paragraph 2 of subdivision (f) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (2) The commissioner of economic development, after consulting with the commissioner, shall promulgate regulations to establish procedures for the allocation of tax credits as required by this section. Such rules and regulations shall include provisions describing the applica- tion process, the due dates for such applications, the standards that will be used to evaluate the applications, the documentation that will be provided by applicants to substantiate to the department the amount of qualified production expenditures of such applicants, and such other provisions as deemed necessary and appropriate. Notwithstanding any other provisions to the contrary in the state administrative procedure act, such rules and regulations may be adopted on an emergency basis. In no event shall a qualified New York city musical and theatrical production submit an application for this program after [December thir- ty-first, two thousand twenty-two] JUNE THIRTIETH, TWO THOUSAND TWENTY- THREE. § 5. Subdivision (g) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (g) Any qualified New York city musical and theatrical production company that performs in a qualified New York city production facility and applies to receive a credit under this section shall be required to: (1) participate in a New York state diversity and arts job training program; (2) create and implement a plan to ensure that their production is available and accessible for low-or no-cost to low income New York- ers; and (3) contribute to the New York state council on the arts, cultural program fund an amount up to fifty percent of the total credits received if its production earns ongoing revenue prospectively after the end of the credit period that is at least equal to two hundred percent S. 8009 19 A. 9009 of its ongoing production costs, with such amount payable from twenty- five percent of net operating profits, such amounts payable on a monthly basis, up until such fifty percent of the total credit amount is reached. Any funds deposited pursuant to this subdivision may be used for arts and cultural [educational and workforce development] GRANT programs OF THE NEW YORK STATE COUNCIL ON THE ARTS. § 6. Subdivision 5 of section 99-ll of the state finance law, as added by section 5 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: 5. The moneys in such fund shall be expended for the purpose of supplementing art and cultural GRANT programs [for secondary and elemen- tary children, including programs that increase access to art and cultural programs and events for children in underserved communities] OF THE NEW YORK STATE COUNCIL ON THE ARTS. § 7. Section 6 of subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to estab- lishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund, is amended to read as follows: § 6. This act shall take effect immediately [and]; PROVIDED HOWEVER, THAT SECTION ONE, TWO, THREE AND FOUR OF THIS ACT shall apply to taxable years beginning on or after January 1, 2021, and before January 1, 2024 and shall expire and be deemed repealed [on] January 1, 2024; provided FURTHER, however that the obligations under paragraph 3 of subdivision [g] (G) of section 24-c of the tax law, as added by section one of this act, shall remain in effect until December 31, 2025. § 8. This act shall take effect immediately; provided that the amend- ments to section 24-c of the tax law made by sections one, two, three, four and five of this act shall not affect the repeal of such section and shall be deemed repealed therewith. PART G Section 1. Paragraphs (a) and (f) of subdivision 1 of section 209-b of the tax law, paragraph (a) as amended and paragraph (f) as added by section 7 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) For the privilege of exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing proper- ty in a corporate or organized capacity, or of maintaining an office, or of deriving receipts from activity in the metropolitan commuter trans- portation district, for all or any part of its taxable year, there is hereby imposed on every corporation, other than a New York S corpo- ration, subject to tax under section two hundred nine of this article, or any receiver, referee, trustee, assignee or other fiduciary, or any officer or agent appointed by any court, who conducts the business of any such corporation, a tax surcharge, in addition to the tax imposed under section two hundred nine of this article, to be computed at the rate of seventeen percent of the tax imposed under such section for such taxable years or any part of such taxable years ending on or after December thirty-first, nineteen hundred eighty-three and before January first, two thousand fifteen after the deduction of any credits otherwise allowable under this article, at the rate of twenty-five and six-tenths percent of the tax imposed under such section for taxable years begin- ning on or after January first, two thousand fifteen and before January first, two thousand sixteen before the deduction of any credits other- S. 8009 20 A. 9009 wise allowable under this article, [and] at the rate determined by the commissioner pursuant to paragraph (f) of this subdivision of the tax imposed under such section, for taxable years beginning on or after January first, two thousand sixteen AND BEFORE JANUARY FIRST, TWO THOU- SAND TWENTY-THREE before the deduction of any credits otherwise allow- able under this article, AND AT THE RATE OF THIRTY PERCENT OF THE TAX IMPOSED UNDER SUCH SECTION FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU- ARY FIRST, TWO THOUSAND TWENTY-THREE BEFORE THE DEDUCTION OF ANY CREDITS OTHERWISE ALLOWABLE UNDER THIS ARTICLE. However, such rate of tax surcharge shall be applied only to that portion of the tax imposed under section two hundred nine of this article before the deduction of any credits otherwise allowable under this article which is attributable to the taxpayer's business activity carried on within the metropolitan commuter transportation district; and provided, further, the surcharge computed on a combined report shall include a surcharge on the fixed dollar minimum tax for each member of the combined group subject to the surcharge under this subdivision. (f) The commissioner shall determine the rate of tax for taxable years beginning on or after January first, two thousand sixteen AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE by adjusting the rate for taxa- ble years beginning on or after January first, two thousand fifteen and before January first, two thousand sixteen as necessary to ensure that the receipts attributable to such surcharge, as impacted by the chapter of the laws of two thousand fourteen which added this paragraph, will meet and not exceed the financial projections for state fiscal year two thousand sixteen-two thousand seventeen, as reflected in state fiscal year two thousand fifteen-two thousand sixteen enacted budget. The commissioner shall annually determine the rate thereafter using the financial projections for the state fiscal year that commences in the year for which the rate is to be set as reflected in the enacted budget for the fiscal year commencing on the previous April first. § 2. This act shall take effect immediately. PART H Section 1. Paragraphs (a), (b) and (d) of subdivision 29 of section 210-B of the tax law, paragraph (a) and subparagraph 2 of paragraph (b) as amended by section 1 of part II of chapter 59 of the laws of 2021, paragraph (b) as amended by section 1 of part Q of chapter 59 of the laws of 2018, subparagraph 1 of paragraph (b) as amended by chapter 490 of the laws of 2019 and paragraph (d) as added by section 17 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-three] TWENTY-SIX, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than [one year and for not less than thirty-five hours each week] TWELVE CONTINUOUS AND UNINTERRUPTED MONTHS (HEREINAFTER REFERRED TO AS THE TWELVE-MONTH PERI- OD) IN A FULL-TIME OR PART-TIME POSITION, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qual- ified veteran completes [one year] THE TWELVE-MONTH PERIOD of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. S. 8009 21 A. 9009 (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, SPACE FORCE, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who (i) was released from active duty by general or honorable discharge [after September eleventh, two thousand one], or (ii) has a qualifying condition, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one], or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one]; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [twenty-two] TWENTY-FIVE; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. (d) Amount of credit. The amount of the credit shall be [ten] FIFTEEN percent of the total amount of wages paid to the qualified veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employ- ment. Provided, however, that[, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be fifteen percent of the total amount of wages paid to the qualified veteran during the veteran's first full year of employment. The] THE credit allowed pursuant to this subdivision shall not exceed in any taxable year, [five] FIFTEEN thousand dollars for any qualified veteran EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD and [fifteen thousand dollars for any qualified veteran who is a disabled veteran] SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED VETERAN EMPLOYED IN A PART-TIME POSI- TION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOU- SAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD. § 2. Paragraphs 1, 2 and 4 of subsection (a-2) of section 606 of the tax law, paragraph 1 and subparagraph (B) of paragraph 2 as amended by section 2 of part II of chapter 59 of the laws of 2021, paragraph 2 as amended by section 2 of part Q of chapter 59 of the laws of 2018, subparagraph (A) of paragraph 2 as amended by chapter 490 of the laws of 2019 and paragraph 4 as added by section 3 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-three] TWENTY-SIX, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than [one year and for not less than thirty-five hours each week] TWELVE CONTINUOUS AND UNIN- TERRUPTED MONTHS (HEREINAFTER REFERRED TO AS THE TWELVE-MONTH PERIOD) IN A FULL-TIME OR PART-TIME POSITION, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes [one year] THE TWELVE-MONTH PERIOD of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran S. 8009 22 A. 9009 that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, SPACE FORCE, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who (i) was released from active duty by general or honorable discharge [after September eleventh, two thousand one], or (ii) has a qualifying condition, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one], or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one]; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [twenty-two] TWENTY-FIVE; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. (4) Amount of credit. The amount of the credit shall be [ten] FIFTEEN percent of the total amount of wages paid to [he] THE qualified veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employ- ment. Provided, however, that[, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be fifteen percent of the total amount of wages paid to the qualified veteran during the veteran's first full year of employment. The] THE credit allowed pursuant to this subsection shall not exceed in any taxa- ble year, [five] FIFTEEN thousand dollars for any qualified veteran EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD and [fifteen thousand dollars for any qualified veteran who is a disabled veteran] SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED VETERAN EMPLOYED IN A PART-TIME POSI- TION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOU- SAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD. § 3. Paragraphs 1, 2 and 4 of subdivision (g-1) of section 1511 of the tax law, paragraph 1 and subparagraph (B) of paragraph 2 as amended by section 3 of part II of chapter 59 of the laws of 2021, paragraph 2 as amended by section 3 of part Q of chapter 59 of the laws of 2018, subparagraph (A) of paragraph 2 as amended by chapter 490 of the laws of 2019 and paragraph 4 as added by section 5 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-three] TWENTY-SIX, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than [one year and for not less than thirty-five hours each week] TWELVE CONTINUOUS AND UNINTERRUPTED MONTHS (HEREINAFTER REFERRED TO AS THE TWELVE-MONTH PERI- OD) IN A FULL-TIME OR PART-TIME POSITION, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qual- ified veteran completes [one year] THE TWELVE-MONTH PERIOD of employment S. 8009 23 A. 9009 by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, SPACE FORCE, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who (i) was released from active duty by general or honorable discharge [after September eleventh, two thousand one], or (ii) has a qualifying condition, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one], or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one]; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [twenty-two] TWENTY-FIVE; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. (4) Amount of credit. The amount of the credit shall be [ten] FIFTEEN percent of the total amount of wages paid to the qualified veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employ- ment. Provided, however, that[, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be fifteen percent of the total amount of wages paid to the qualified veteran during the veteran's first full year of employment. The] THE credit allowed pursuant to this subdivision shall not exceed in any taxable year, [five] FIFTEEN thousand dollars for any qualified veteran EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD and [fifteen thousand dollars for any qualified veteran who is a disabled veteran] SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED VETERAN EMPLOYED IN A PART-TIME POSI- TION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOU- SAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART I Section 1. The tax law is amended by adding a new section 47 to read as follows: § 47. GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. (A) (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SUBDI- VISION (B) OF THIS SECTION AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER MAY BE ELIGIBLE TO CLAIM A GRADE NO. 6 HEAT- ING OIL CONVERSION TAX CREDIT IN THE TAXABLE YEAR THE CONVERSION IS COMPLETE. THE CREDIT SHALL BE EQUAL TO FIFTY PERCENT OF THE CONVERSION COSTS FOR ALL OF THE TAXPAYER'S BUILDINGS LOCATED IN A MUNICIPALITY PAID BY SUCH TAXPAYER ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO AND S. 8009 24 A. 9009 BEFORE JULY FIRST, TWO THOUSAND TWENTY-THREE. THE CREDIT CANNOT EXCEED FIVE HUNDRED THOUSAND DOLLARS PER MUNICIPALITY. (2) A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER S CORPORATION SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION THAT MEETS THE ELIGIBILITY CRITERIA DESCRIBED IN SUBDIVISION (B) OF THIS SECTION TO CLAIM A GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. IN NO EVENT MAY THE TOTAL AMOUNT OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION EXCEED FIVE HUNDRED THOU- SAND DOLLARS FOR ALL BUILDINGS LOCATED IN A MUNICIPALITY. (3) NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS INCLUDED AS PART OF THE CALCULATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT ALLOWED UNDER THIS CHAPTER. (B) ELIGIBILITY CRITERIA. (1) TO BE ELIGIBLE TO CLAIM A GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT, A BUSINESS ENTITY MUST: (I) INCUR EXPENSES FOR THE CONVERSION FROM GRADE NO. 6 HEATING OIL FUEL, AS DESCRIBED AS "CONVERSION COSTS" IN PARAGRAPH (1) OF SUBDIVISION (C) OF THIS SECTION, TO BIODIESEL HEATING OIL OR A GEOTHERMAL SYSTEM AT ANY BUILDING LOCATED IN NEW YORK STATE OUTSIDE THE CITY OF NEW YORK; (II) SUBMIT AN APPLICATION TO AND OBTAIN APPROVAL OF SUCH APPLICATION BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY DESCRIB- ING THE CONVERSION AND APPROVED COSTS TO COMPLETE SUCH CONVERSION; (III) NOT BE PRINCIPALLY ENGAGED IN THE GENERATION OR DISTRIBUTION OF ELECTRICITY, POWER OR ENERGY; (IV) BE IN COMPLIANCE WITH ALL ENVIRONMENTAL CONSERVATION LAWS AND REGULATIONS; AND (V) NOT OWE PAST DUE STATE TAXES UNLESS THE BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED BINDING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY. (C) DEFINITIONS. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (1) CONVERSION COSTS MEANS THE EQUIPMENT AND LABOR COSTS ASSOCIATED WITH THE DESIGN, INSTALLATION AND USE OF SPACE HEATING AND OTHER ENERGY CONVERSION SYSTEMS THAT ARE DESIGNED TO OR ACCOMMODATE THE USE OF BIOD- IESEL FUEL OR A GEOTHERMAL SYSTEM AND, AT THE OPTION OF THE TAXPAYER, THE COSTS OF COMPLETING AN ASRAE LEVEL 2 ENERGY AUDIT INCLUDING ASSESS- MENT OF ELECTRIFICATION OPTIONS. (2) BIODIESEL MEANS A MINIMUM BLEND OF EIGHTY-FIVE (85) PERCENT BIOD- IESEL, DEFINED AS FUEL MANUFACTURED FROM VEGETABLE OILS, ANIMAL FATS, OR OTHER AGRICULTURAL OR OTHER PRODUCTS OR BY-PRODUCTS, WITH PETRODIESEL FUEL COMMONLY USED FOR HEATING SYSTEMS. (3) GEOTHERMAL MEANS A SYSTEM THAT USES THE GROUND OR GROUND WATER AS A THERMAL ENERGY SOURCE/SINK TO HEAT OR COOL A BUILDING OR PROVIDE HOT WATER WITHIN THE BUILDING. (D) THE COMMISSIONER, IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, WILL DEVELOP AN APPLICATION PROCESS TO CERTIFY THE EXPENSES NECESSARY FOR THE CONVERSION AND A TAXPAYER WILL NOT BE ELIGIBLE TO CLAIM THE CREDIT UNLESS IT HAS COMPLETED THAT APPLI- CATION PROCESS AND THE APPLICATION HAS BEEN APPROVED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. (E) INFORMATION SHARING. THE DEPARTMENT, THE DEPARTMENT OF ENVIRON- MENTAL CONSERVATION AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP- MENT AUTHORITY SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION REGARDING THE INFORMATION CONTAINED ON THE CREDIT APPLICA- TION FOR CLAIMING THE GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT AND S. 8009 25 A. 9009 SUCH INFORMATION EXCHANGED BETWEEN THE DEPARTMENT, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFORMATION LAW. (F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58; (2) ARTICLE 22: SECTION 606, SUBSECTION (NNN). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 58 to read as follows: 58. GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXA- BLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON. § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) GRADE NO. 6 HEATING OIL AMOUNT OF CREDIT UNDER SUBDIVISION CONVERSION TAX CREDIT UNDER FIFTY-EIGHT OF SECTION TWO HUNDRED SUBSECTION (NNN) TEN-B § 4. Section 606 of the tax law is amended by adding a new subsection (nnn) to read as follows: (NNN) GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. § 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART J Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 2 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty] TWENTY-SEVEN million dollars. The limitation provided by this subdivision applies only to allocation S. 8009 26 A. 9009 of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 2. Subdivision 4 of section 22 of the public housing law, as amended by section 3 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty-eight] FORTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 3. Subdivision 4 of section 22 of the public housing law, as amended by section 4 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [thirty-six] FIFTY-SEVEN million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 4. Subdivision 4 of section 22 of the public housing law, as amended by section 5 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [forty-four] SEVENTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 5. This act shall take effect immediately; provided, however, section one of this act shall take effect April 1, 2022; section two of this act shall take effect April 1, 2023; section three of this act shall take effect April 1, 2024; and section four of this act shall take effect April 1, 2025. PART K Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as amended by section 1 of part R of chapter 59 of the laws of 2019, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state purchased before January first, two thousand [twenty-three] TWENTY-SIX. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. S. 8009 27 A. 9009 § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as amended by section 2 of part R of chapter 59 of the laws of 2019, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thou- sand seven and on or after January first, two thousand eight and before January first, two thousand [twenty-three] TWENTY-SIX. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 3. This act shall take effect immediately. PART L Section 1. Section 5 of chapter 604 of the laws of 2011 amending the tax law relating to the credit for companies who provide transportation to people with disabilities, as amended by section 1 of part K of chap- ter 60 of the laws of 2016, is amended to read as follows: § 5. This act shall take effect immediately and shall remain in effect until December 31, 2016 when upon such date it shall be deemed repealed; provided that this act shall be deemed to have been in full force and effect on December 31, 2010; provided further that this act shall apply to all tax years commencing on or after January 1, 2011; and provided further that sections one and two of this act shall remain in effect until December 31, [2022] 2028 when upon such date such sections shall be deemed repealed. § 2. Paragraph (c) of subdivision 38 of section 210-B of the tax law, as amended by section 2 of part K of chapter 60 of the laws of 2016, is amended to read as follows: (c) Application of credit. In no event shall the credit allowed under this subdivision for any taxable year reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. The tax credit allowed pursuant to this subdivision shall not apply to taxa- ble years beginning on or after January first, two thousand [twenty- three] TWENTY-NINE. § 3. This act shall take effect immediately. PART M Section 1. Paragraph 4 of subdivision (a) of section 24 of the tax law, as added by section 5 of part Q of chapter 57 of the laws of 2010, is amended to read as follows: (4) (I) Notwithstanding the foregoing provisions of this subdivision, a qualified film production company or qualified independent film production company, that has applied for credit under the provisions of S. 8009 28 A. 9009 this section, agrees as a condition for the granting of the credit: [(i)] (A) to include in each qualified film distributed by DVD, or other media for the secondary market, a New York promotional video approved by the governor's office of motion picture and television development or to include in the end credits of each qualified film "Filmed With the Support of the New York State Governor's Office of Motion Picture and Television Development" and a logo provided by the governor's office of motion picture and television development, and [(ii)] (B) to certify that it will purchase taxable tangible property and services, defined as qualified production costs pursuant to paragraph one of subdivision (b) of this section, only from companies registered to collect and remit state and local sales and use taxes pursuant to articles twenty-eight and twenty-nine of this chapter. (II) ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, A QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF THIS SECTION SHALL, AS A CONDITION FOR THE GRANTING OF THE CREDIT, FILE A DIVERSITY PLAN WITH THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT OUTLINING SPECIFIC GOALS FOR HIRING A DIVERSE WORKFORCE. THE COMMISSION- ER OF ECONOMIC DEVELOPMENT SHALL PROMULGATE REGULATIONS IMPLEMENTING THE REQUIREMENTS OF THIS PARAGRAPH, WHICH, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS, TO ENSURE COMPLIANCE WITH THE PROVISIONS OF THIS PARAGRAPH. THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT SHALL REVIEW EACH SUBMITTED PLAN AS TO WHETHER IT MEETS THE REQUIREMENTS ESTABLISHED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AND SHALL VERIFY THAT THE APPLICANT HAS MET OR MADE GOOD-FAITH EFFORTS IN ACHIEVING THESE GOALS. THE DIVERSITY PLAN ALSO SHALL INDICATE WHETHER THE QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF THIS SECTION INTENDS TO PARTICIPATE IN TRAINING, EDUCATION, AND RECRUIT- MENT PROGRAMS THAT ARE DESIGNED TO PROMOTE AND ENCOURAGE THE TRAINING AND HIRING IN THE FILM AND TELEVISION INDUSTRY OF NEW YORK RESIDENTS WHO REPRESENT THE DIVERSITY OF THE STATE'S POPULATION. § 2. Paragraph 5 of subdivision (a) of section 24 of the tax law, as amended by section 1 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (5) For the period two thousand fifteen through two thousand [twenty- six] TWENTY-NINE, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- S. 8009 29 A. 9009 van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-six] TWENTY-NINE of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and television development among taxpayers in order of priority based upon the date of filing an application for allocation of film production credit with such office. If the total amount of allo- cated credits applied for under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this para- graph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this paragraph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdivision (a) of section thirty-one of this article exceed five million dollars in any year during the peri- od two thousand fifteen through two thousand [twenty-six] TWENTY-NINE. § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 2 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (4) Additional pool 2 - The aggregate amount of tax credits allowed in subdivision (a) of this section shall be increased by an additional four hundred twenty million dollars in each year starting in two thousand ten through two thousand [twenty-six] TWENTY-NINE provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen, twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-six] TWENTY-NINE and five million dollars of the annual allocation shall be made available for the television writers' and directors' fees and salaries credit pursuant to section twenty-four-b of this article in each year starting in two thousand twenty through two thousand [twenty-six] TWENTY-NINE. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- S. 8009 30 A. 9009 ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this chapter. The governor's office for motion picture and television devel- opment must notify taxpayers of their allocation year and include the allocation year on the certificate of tax credit. Taxpayers eligible to claim a credit must report the allocation year directly on their empire state film production credit tax form for each year a credit is claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 4. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 3 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (4) Additional pool 2 - The aggregate amount of tax credits allowed in subdivision (a) of this section shall be increased by an additional four hundred twenty million dollars in each year starting in two thousand ten through two thousand [twenty-six] TWENTY-NINE provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen and twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-six] TWENTY-NINE. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production S. 8009 31 A. 9009 credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this chapter. The governor's office for motion picture and television devel- opment must notify taxpayers of their allocation year and include the allocation year on the certificate of tax credit. Taxpayers eligible to claim a credit must report the allocation year directly on their empire state film production credit tax form for each year a credit is claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 5. Paragraph 1 of subdivision (f) of section 24 of the tax law, as added by section 2 of subpart A of part H of chapter 39 of the laws of 2019, is amended to read as follows: (1) With regard to certificates of tax credit issued on or after Janu- ary first, two thousand twenty, the commissioner of economic development shall reduce by one-quarter of one percent the amount of credit allowed to a taxpayer and this reduced amount shall be reported on a certificate of tax credit issued pursuant to this section and the regulations promulgated by the commissioner of economic development to implement this credit program. PROVIDED, HOWEVER, FOR CERTIFICATES OF TAX CREDIT ISSUED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, THE AMOUNT OF CREDIT SHALL BE REDUCED BY ONE-HALF OF ONE PERCENT ALLOWED TO THE TAXPAYER. § 6. Paragraph 6 of subdivision (a) of section 31 of the tax law, as amended by section 4 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (6) For the period two thousand fifteen through two thousand [twenty- six] TWENTY-NINE, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) for services performed by those individuals in one of the counties specified in this paragraph in connection with the post production work on a qualified film with a minimum budget of five hundred thousand dollars at a qualified post production facility in one of the counties listed in this paragraph. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Catta- raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this para- graph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-six] TWENTY-NINE of the annual allocation made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of S. 8009 32 A. 9009 section twenty-four of this article. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and tele- vision development among taxpayers in order of priority based upon the date of filing an application for allocation of post production credit with such office. If the total amount of allocated credits applied for under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this paragraph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this para- graph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation for two thousand seventeen made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdivision (a) of section twenty-four of this article exceed five million dollars in any year during the period two thousand fifteen through two thousand [twenty-six] TWENTY-NINE. § 7. This act shall take effect immediately; provided, however that the amendments to paragraph 4 of subdivision (e) of section 24 of the tax law made by section three of this act shall take effect on the same date and in the same manner as section 5 of chapter 683 of the laws of 2019, as amended, takes effect. PART N Section 1. Subdivision (a) of section 25-a of the labor law, as amended by section 1 of subpart A of part N of chapter 59 of the laws of 2017, is amended to read as follows: (a) The commissioner is authorized to establish and administer the program established under this section to provide tax incentives to employers for employing at risk youth in part-time and full-time posi- tions. There will be ten distinct pools of tax incentives. Program one will cover tax incentives allocated for two thousand twelve and two thousand thirteen. Program two will cover tax incentives allocated in two thousand fourteen. Program three will cover tax incentives allocated in two thousand fifteen. Program four will cover tax incentives allo- cated in two thousand sixteen. Program five will cover tax incentives allocated in two thousand seventeen. Program six will cover tax incen- tives allocated in two thousand eighteen. Program seven will cover tax incentives allocated in two thousand nineteen. Program eight will cover tax incentives allocated in two thousand twenty. Program nine will cover tax incentives allocated in two thousand twenty-one. Program ten will cover tax incentives allocated in two thousand twenty-two. PROGRAM ELEV- EN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-THREE. PROGRAM TWELVE WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWEN- TY-FOUR. PROGRAM THIRTEEN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-FIVE. PROGRAM FOURTEEN WILL COVER TAX INCENTIVES ALLO- CATED IN TWO THOUSAND TWENTY-SIX. PROGRAM FIFTEEN WILL COVER TAX INCEN- TIVES ALLOCATED IN TWO THOUSAND TWENTY-SEVEN. The commissioner is authorized to allocate up to twenty-five million dollars of tax credits under program one, ten million dollars of tax credits under program two, twenty million dollars of tax credits under program three, fifty million dollars of tax credits under each of programs four and five, and forty million dollars of tax credits under programs six, seven, eight, nine [and], ten, ELEVEN, TWELVE, THIRTEEN, FOURTEEN AND FIFTEEN. S. 8009 33 A. 9009 § 2. Paragraph 4 of subdivision (b) of section 25-a of the labor law, as added by section 1-a of subpart A of part N of chapter 59 of the laws of 2017, is amended to read as follows: (4) For programs six, seven, eight, nine [and], ten, ELEVEN, TWELVE, THIRTEEN, FOURTEEN, AND FIFTEEN the tax credit under each program shall be allocated as follows: (i) twenty million dollars of tax credit for qualified employees; and (ii) twenty million dollars of tax credit for individuals who meet all of the requirements for a qualified employee except for the residency requirement of subparagraph (ii) of paragraph two of this subdivision, which individuals shall be deemed to meet the residency requirements of subparagraph (ii) of paragraph two of this subdivision if they reside in New York state. § 3. The opening paragraph of subdivision (d) of section 25-a of the labor law, as amended by section 2 of part R of chapter 59 of the laws of 2018, is amended to read as follows: To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, [and] after January first, two thousand twenty-two but no later than November thirtieth, two thousand twenty-two for program ten, AFTER JANUARY FIRST, TWO THOUSAND TWENTY- THREE BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-THREE FOR PROGRAM ELEVEN, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-FOUR FOR PROGRAM TWELVE, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-FIVE FOR PROGRAM THIRTEEN, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX BUT NO LATER THAN NOVEMBER THIR- TIETH, TWO THOUSAND TWENTY-SIX FOR PROGRAM FOURTEEN, AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-SEVEN FOR PROGRAM FIFTEEN. The qualified employees must start their employment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty-first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than Decem- ber thirty-first, two thousand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty- first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nine- S. 8009 34 A. 9009 teen but no later than December thirty-first, two thousand nineteen for program seven, on or after January first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, on or after January first, two thousand twenty-one but no later than December thirty-first, two thousand twenty-one for program nine, [and] on or after January first, two thousand twenty-two but no later than December thirty-first, two thousand twenty-two for program ten, ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE BUT NO LATER THAN DECEM- BER THIRTY-FIRST, TWO THOUSAND THREE FOR PROGRAM ELEVEN, ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR BUT NO LATER THAN DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-FOUR FOR PROGRAM TWELVE, ON OR AFTER JANU- ARY FIRST, TWO THOUSAND TWENTY-FIVE BUT NO LATER THAN DECEMBER THIRTY- FIRST, TWO THOUSAND TWENTY-FIVE FOR PROGRAM THIRTEEN, ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX BUT NO LATER THAN DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-SIX FOR PROGRAM FOURTEEN, AND ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-SEVEN FOR PROGRAM FIFTEEN. As part of such application, an employer must: § 4. This act shall take effect immediately. PART O Section 1. Subdivision (a) of section 25-c of the labor law, as added by section 1 of subpart B of part N of chapter 59 of the laws of 2017, is amended to read as follows: (a) The commissioner is authorized to establish and administer the empire state apprenticeship tax credit program to provide tax incentives to certified employers for employing qualified apprentices pursuant to an apprenticeship agreement registered with the department pursuant to paragraph (d) of subdivision one of section eight hundred eleven of this chapter. The commissioner is authorized to allocate up to ten million dollars of tax credits annually, beginning in two thousand eighteen and ending before two thousand [twenty-three] TWENTY-EIGHT. Any unused annu- al allocation of the credit shall be made available in each of the subsequent years before two thousand [twenty-three] TWENTY-EIGHT. § 2. This act shall take effect immediately. PART P Section 1. Subdivision 6 of section 187-b of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2017, is amended to read as follows: 6. Termination. The credit allowed by subdivision two of this section shall not apply in taxable years beginning after December thirty-first, two thousand [twenty-two] TWENTY-SEVEN. § 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law, as amended by section 2 of part O of chapter 59 of the laws of 2017, is amended to read as follows: (f) Termination. The credit allowed by paragraph (b) of this subdivi- sion shall not apply in taxable years beginning after December thirty- first, two thousand [twenty-two] TWENTY-SEVEN. § 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as amended by section 3 of part O of chapter 59 of the laws of 2017, is amended to read as follows: S. 8009 35 A. 9009 (6) Termination. The credit allowed by this subsection shall not apply in taxable years beginning after December thirty-first, two thousand [twenty-two] TWENTY-SEVEN. § 4. This act shall take effect immediately. PART Q Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, as amended by section 1 of part E of chapter 59 of the laws of 2019, is amended to read as follows: § 5. This act shall take effect January 1, 2015, and shall apply to taxable years beginning on and after that date[; provided, however, that this act shall expire and be deemed repealed January 1, 2023]. § 2. Section 25-b of the labor law is amended by adding a new subdivi- sion (f) to read as follows: (F) THE TAX CREDITS PROVIDED UNDER THIS PROGRAM SHALL BE APPLICABLE TO TAXABLE PERIODS BEGINNING ON OR BEFORE JANUARY FIRST, TWO THOUSAND TWEN- TY-NINE. § 3. This act shall take effect immediately. PART R Section 1. Subdivision 1-A of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 1-A. The term "New York S corporation" means, with respect to any taxable year, a corporation subject to tax under this article [for which an election is in effect pursuant to] AND DESCRIBED IN PARAGRAPH (I) OR (II) OF subsection (a) of section six hundred sixty of this chapter [for such year], AND any such year shall be denominated a "New York S year"[, and such election shall be denominated a "New York S election"]. The term "New York C corporation" means, with respect to any taxable year, a corporation subject to tax under this article which is not a New York S corporation, and any such year shall be denominated a "New York C year". The term "termination year" means any taxable year of a corporation during which the CORPORATION'S STATUS AS A New York S [election] CORPO- RATION terminates on a day other than the first day of such year. The portion of the taxable year ending before the first day for which such termination is effective shall be denominated the "S short year", and the portion of such year beginning on such first day shall be denomi- nated the "C short year". The term "New York S termination year" means any termination year which is [not] also an S termination year for federal purposes. § 2. Subdivision 1-B and subparagraph (ii) of the opening paragraph and paragraph (k) of subdivision 9 of section 208 of the tax law are REPEALED. § 3. Subparagraph (A) and the opening paragraph of subparagraph (B) of paragraph 5 of subdivision (a) of section 292 of the tax law, as added by section 48 of part A of chapter 389 of the laws of 1997, are amended to read as follows: (A) In the case of a shareholder of an S corporation, (i) [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this chapter [is in effect with respect to such corporation], there shall be added to federal unrelated business taxable income an amount equal to the shareholder's pro rata share of S. 8009 36 A. 9009 the corporation's reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, and (ii) [where such election has not been made with respect to such corporation, there shall be subtracted from federal unrelated business taxable income any items of income of the corporation included therein, and there shall be added to federal unrelated business taxable income any items of loss or deduction included therein, and (iii)] in the case of a New York S termination year, the amount of any such items of S corporation income, loss, deduction and reductions for taxes shall be adjusted in the manner provided in paragraph two or three of subsection (s) of section six hundred twelve of this chapter. In the case of a shareholder of a corporation which was, for any of its taxable years beginning after nineteen hundred ninety-seven AND BEFORE TWO THOUSAND TWENTY-THREE, a federal S corporation but a New York C corporation: § 4. Paragraph 18 of subsection (b) of section 612 of the tax law, as amended by chapter 606 of the laws of 1984, subparagraph (A) as amended by chapter 28 of the laws of 1987 and subparagraph (B) as amended by chapter 190 of the laws of 1990, is amended to read as follows: (18) In the case of a shareholder of an S corporation AS DESCRIBED IN SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY (A) [where the election provided for in subsection (a) of section six hundred sixty is in effect with respect to such corporation,] an amount equal to [his] SUCH SHAREHOLDER'S pro rata share of the corporation's reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, and (B) in the case of a New York S termination year, subparagraph (A) of this paragraph shall apply to the amount of reductions for taxes deter- mined under subsection (s) of this section. § 5. Paragraph 19 of subsection (b) of section 612 of the tax law is REPEALED. § 6. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax law, paragraph 20 as amended by chapter 606 of the laws of 1984 and paragraph 21 as amended by section 70 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (20) S corporation distributions to the extent not included in federal gross income for the taxable year because of the application of section thirteen hundred sixty-eight, subsection (e) of section thirteen hundred seventy-one or subsection (c) of section thirteen hundred seventy-nine of the internal revenue code which represent income not previously subject to tax under this article because the election provided for in subsection (a) of section six hundred sixty IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE had not been made. Any such distribution treated in the manner described in paragraph two of subsection (b) of section thirteen hundred sixty-eight of the internal revenue code for federal income tax purposes shall be treated as ordinary income for purposes of this article. (21) In relation to the disposition of stock or indebtedness of a corporation which elected under subchapter s of chapter one of the internal revenue code for any taxable year of such corporation begin- ning, in the case of a corporation taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE, the amount required to be S. 8009 37 A. 9009 added to federal adjusted gross income pursuant to subsection (n) of this section. § 7. Paragraph 21 of subsection (c) of section 612 of the tax law, as amended by section 70 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (21) In relation to the disposition of stock or indebtedness of a corporation which elected under subchapter s of chapter one of the internal revenue code for any taxable year of such corporation begin- ning, in the case of a corporation taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE, the amounts required to be subtracted from federal adjusted gross income pursuant to subsection (n) of this section. § 8. Paragraph 22 of subsection (c) of section 612 of the tax law is REPEALED. § 9. Subsection (e) of section 612 of the tax law, as amended by chap- ter 166 of the laws of 1991, paragraph 3 as added by chapter 760 of the laws of 1992, is amended to read as follows: (e) Modifications of partners and shareholders of S corporations. (1) Partners and shareholders of S corporations [which are not New York C corporations]. The amounts of modifications required to be made under this section by a partner or by a shareholder of an S corporation [(other than an S corporation which is a New York C corporation)], which relate to partnership or S corporation items of income, gain, loss or deduction shall be determined under section six hundred seventeen and, in the case of a partner of a partnership doing an insurance business as a member of the New York insurance exchange described in section six thousand two hundred one of the insurance law, under section six hundred seventeen-a of this article. (2) [Shareholders of S corporations which are New York C corporations. In the case of a shareholder of an S corporation which is a New York C corporation, the modifications under this section which relate to the corporation's items of income, loss and deduction shall not apply, except for the modifications provided under paragraph nineteen of subsection (b) and paragraph twenty-two of subsection (c) of this section. (3)] New York S termination year. In the case of a New York S termi- nation year, the amounts of the modifications required under this section which relate to the S corporation's items of income, loss, deduction and reductions for taxes (as described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code) shall be adjusted in the same manner that the S corporation's items are adjusted under subsection (s) of section six hundred twelve. § 10. Subsection (n) of section 612 of the tax law, as amended by section 61 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (n) Where gain or loss is recognized for federal income tax purposes upon the disposition of stock or indebtedness of a corporation electing under subchapter s of chapter one of the internal revenue code (1) There shall be added to federal adjusted gross income the amount of increase in basis with respect to such stock or indebtedness pursuant to subsection (a) of section thirteen hundred seventy-six of the inter- nal revenue code as such section was in effect for taxable years begin- ning before January first, nineteen hundred eighty-three and subpara- graphs (A) and (B) of paragraph one of subsection (a) of section S. 8009 38 A. 9009 thirteen hundred sixty-seven of such code, for each taxable year of the corporation beginning, in the case of a corporation taxable under arti- cle nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE, and in the case of a corporation taxable under FORMER article thirty-two of this chapter, after December thirty-first, nineteen hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for in subsection (a) of section six hundred sixty of this article was not in effect, and (2) There shall be subtracted from federal adjusted gross income (A) the amount of reduction in basis with respect to such stock or indebtedness pursuant to subsection (b) of section thirteen hundred seventy-six of the internal revenue code as such section was in effect for taxable years beginning before January first, nineteen hundred eighty-three and subparagraphs (B) and (C) of paragraph two of subsection (a) of section thirteen hundred sixty-seven of such code, for each taxable year of the corporation beginning, in the case of a corpo- ration taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE, and in the case of a corporation taxable under FORMER article thirty-two of this chapter, after December thirty-first, nineteen hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for in subsection (a) of section six hundred sixty of this article was not in effect and (B) the amount of any modifications to federal gross income with respect to such stock pursuant to paragraph twenty of subsection (b) of this section. § 11. Paragraph 6 of subsection (c) of section 615 of the tax law is REPEALED. § 12. Subsection (e) of section 615 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (e) Modifications of partners and shareholders of S corporations. (1) Partners and shareholders of S corporations [which are not New York C corporations]. The amounts of modifications under subsection (c) or under paragraph (2) or (3) of subsection (d) required to be made by a partner or by a shareholder of an S corporation [(other than an S corpo- ration which is a New York C corporation)], with respect to items of deduction of a partnership or S corporation shall be determined under section six hundred seventeen. (2) [Shareholders of S corporations which are New York C corporations. In the case of a shareholder of an S corporation which is a New York C corporation, the modifications under this section which relate to the corporation's items of deduction shall not apply, except for the modifi- cation provided under paragraph six of subsection (c). (3)] New York S termination year. In the case of a New York S termi- nation year, the amounts of the modifications required under this section which relate to the S corporation's items of deduction shall be adjusted in the same manner that the S corporation's items are adjusted under subsection (s) of section six hundred twelve. § 13. Subsection (a) of section 617 of the tax law, as amended by chapter 190 of the laws of 1990, is amended to read as follows: (a) Partner's and shareholder's modifications. In determining New York adjusted gross income and New York taxable income of a resident partner or a resident shareholder of an S corporation [(other than an S corpo- ration which is a New York C corporation)], any modification described in subsections (b), (c) or (d) of section six hundred twelve, subsection S. 8009 39 A. 9009 (c) of section six hundred fifteen or paragraphs (2) or (3) of subsection (d) of such section, which relates to an item of partnership or S corporation income, gain, loss or deduction shall be made in accordance with the partner's distributive share or the shareholder's pro rata share, for federal income tax purposes, of the item to which the modification relates. Where a partner's distributive share or a shareholder's pro rata share of any such item is not required to be taken into account separately for federal income tax purposes, the part- ner's or shareholder's share of such item shall be determined in accord- ance with his OR HER share, for federal income tax purposes, of partner- ship or S corporation taxable income or loss generally. In the case of a New York S termination year, his OR HER pro rata share of any such item shall be determined under subsection (s) of section six hundred twelve. § 14. Subparagraph (E-1) of paragraph 1 of subsection (b) of section 631 of the tax law, as added by section 3 of part C of chapter 57 of the laws of 2010, is amended to read as follows: (E-1) in the case of an S corporation [for which an election is in effect pursuant] SUBJECT to subsection (a) of section six hundred sixty of this article that terminates its taxable status in New York, any income or gain recognized on the receipt of payments from an installment sale contract entered into when the S corporation was subject to tax in New York, allocated in a manner consistent with the applicable methods and rules for [allocation] APPORTIONMENT under article nine-A or FORMER ARTICLE thirty-two of this chapter, in the year that the S corporation sold its assets. § 15. The section heading and paragraph 2 of subsection (a) of section 632 of the tax law, the section heading as amended by chapter 606 of the laws of 1984, and paragraph 2 of subsection (a) as amended by section 71 of part A of chapter 59 of the laws of 2014, are amended to read as follows: Nonresident partners and [electing] shareholders of S corporations. (2) In determining New York source income of a nonresident shareholder of an S corporation [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this article [is in effect], there shall be included only the portion derived from or connected with New York sources of such shareholder's pro rata share of items of S corporation income, loss and deduction entering into [his] SUCH SHAREHOLDER'S federal adjusted gross income, increased by reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, as such portion shall be determined under regulations of the commission- er consistent with the applicable methods and rules for [allocation] APPORTIONMENT under article nine-A of this chapter[, regardless of whether or not such item or reduction is included in entire net income under article nine-A for the tax year]. If a nonresident is a sharehold- er in an S corporation [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this article [is in effect], and the S corporation has distributed an installment obligation under section 453(h)(1)(A) of the Internal Revenue Code, then any gain recognized on the receipt of payments from the installment obligation for federal income tax purposes will be treated as New York source income allocated in a manner consistent with the applicable methods and rules for [allocation] APPORTIONMENT under article nine-A of this chap- ter in the year that the assets were sold. In addition, if the share- holders of the S corporation have made an election under section 338(h)(10) of the Internal Revenue Code, then any gain recognized on the S. 8009 40 A. 9009 deemed asset sale for federal income tax purposes will be treated as New York source income allocated in a manner consistent with the applicable methods and rules for [allocation] APPORTIONMENT under article nine-A of this chapter in the year that the shareholder made the section 338(h)(10) election. For purposes of a section 338(h)(10) election, when a nonresident shareholder exchanges his or her S corporation stock as part of the deemed liquidation, any gain or loss recognized shall be treated as the disposition of an intangible asset and will not increase or offset any gain recognized on the deemed assets sale as a result of the section 338(h)(10) election. § 16. Subsection (a) of section 632-a of the tax law, as added by section 1 of part K of chapter 60 of the laws of 2007, is amended to read as follows: (a) General. If (1) substantially all of the services of a personal service corporation or S corporation are performed for or on behalf of another corporation, partnership, or other entity and (2) the effect of forming or availing of such personal service corporation or S corpo- ration is the avoidance or evasion of New York income tax by reducing the income of, or in the case of a nonresident, reducing the New York source income of, or securing the benefit of any expense, deduction, credit, exclusion, or other allowance for, any employee-owner which would not otherwise be available, then the commissioner may allocate all income, deductions, credits, exclusions, and other allowances between such personal service corporation or S corporation (even if such personal service corporation or S corporation [is taxed under article nine-A of this chapter or] is not subject to tax in this state) and its employee-owners, provided such allocation is necessary to prevent avoid- ance or evasion of New York state income tax or to clearly reflect the source and the amount of the income of the personal service corporation or S corporation or any of its employee-owners. § 17. Paragraph 2 and subparagraph (A) of paragraph 4 of subsection (c) of section 658 of the tax law, paragraph 2 as amended by chapter 190 of the laws of 1990, and subparagraph (A) of paragraph 4 as amended by section 72 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (2) S corporations. Every S corporation [for which the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty [is in effect] shall make a return for the taxable year setting forth all items of income, loss and deduction and such other pertinent infor- mation as the commissioner of taxation and finance may by regulations and instructions prescribe. Such return shall be filed on or before the fifteenth day of the third month following the close of each taxable year. (A) General. Every entity which is a partnership, other than a public- ly traded partnership as defined in section 7704 of the federal Internal Revenue Code, subchapter K limited liability company or an S corporation [for which the election provided for in subsection (a) of section six hundred sixty of this part is in effect], which has partners, members or shareholders who are nonresident individuals, as defined under subsection (b) of section six hundred five of this article, or C corpo- rations, and which has any income derived from New York sources, deter- mined in accordance with the applicable rules of section six hundred thirty-one of this article as in the case of a nonresident individual, shall pay estimated tax on such income on behalf of such partners, members or shareholders in the manner and at the times prescribed by subsection (c) of section six hundred eighty-five of this article. For S. 8009 41 A. 9009 purposes of this paragraph, the term "estimated tax" shall mean a part- ner's, member's or shareholder's distributive share or pro rata share of the entity income derived from New York sources, multiplied by the high- est rate of tax prescribed by section six hundred one of this article for the taxable year of any partner, member or shareholder who is an individual taxpayer, or paragraph (a) of subdivision one of section two hundred ten of this chapter for the taxable year of any partner, member or shareholder which is a C corporation, whether or not such C corpo- ration is subject to tax under article nine, nine-A or thirty-three of this chapter, and reduced by the distributive share or pro rata share of any credits determined under section one hundred eighty-seven, one hundred eighty-seven-a, six hundred six or fifteen hundred eleven of this chapter, whichever is applicable, derived from the entity. § 18. Section 660 of the tax law, as amended by chapter 606 of the laws of 1984, subsections (a) and (h) as amended by section 73 of part A of chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended by section 51, paragraphs 4 and 5 of subsection (b) as added and paragraph 6 of subsection (b) as renumbered by section 52 and subsections (e) and (f) as added and subsection (g) as relettered by section 53 of part A of chapter 389 of the laws of 1997, subsection (d) as added by chapter 760 of the laws of 1992, subsection (i) as added by section 1 of part L of chapter 60 of the laws of 2007 and paragraph 1 of subsection (i) as amended by section 39 of part T of chapter 59 of the laws of 2015, is amended to read as follows: § 660. [Election by shareholders of S corporations] TAX TREATMENT OF FEDERAL S CORPORATIONS. (a) [Election.] If a corporation is an eligible S corporation, the shareholders of the corporation [may elect in the manner set forth in subsection (b) of this section to] SHALL take into account, to the extent provided for in this article (or in article thir- teen of this chapter, in the case of a shareholder which is a taxpayer under such article), the S corporation items of income, loss, deduction and reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code which are taken into account for federal income tax purposes for the taxable year. [No election under this subsection shall be effective unless all shareholders of the corporation have so elected.] An eligible S corporation is (i) [an S] A corporation THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE which is subject to tax under article nine-A of this chapter, or (ii) [an S] A corporation THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE which is the parent of a qualified subchapter S subsidiary AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE subject to tax under article nine-A[, where the sharehold- ers of such parent corporation are entitled to make the election under this subsection by reason of subparagraph three of paragraph (k) of subdivision nine of section two hundred eight] of this chapter. (b) [Requirements of election. An election under subsection (a) of this section shall be made on such form and in such manner as the tax commission may prescribe by regulation or instruction. (1) When made. An election under subsection (a) of this section may be made at any time during the preceding taxable year of the corporation or at any time during the taxable year of the corporation and on or before the fifteenth day of the third month of such taxable year. S. 8009 42 A. 9009 (2) Certain elections made during first two and one-half months. If an election made under subsection (a) of this section is made for any taxa- ble year of the corporation during such year and on or before the fifteenth day of the third month of such year, such election shall be treated as made for the following taxable year if (A) on one or more days in such taxable year before the day on which the election was made the corporation did not meet the requirements of subsection (b) of section thirteen hundred sixty-one of the internal revenue code or (B) one or more of the shareholders who held stock in the corporation during such taxable year and before the election was made did not consent to the election. (3) Elections made after first two and one-half months. If an election under subsection (a) of this section is made for any taxable year of the corporation and such election is made after the fifteenth day of the third month of such taxable year and on or before the fifteenth day of the third month of the following taxable year, such election shall be treated as made for the following taxable year. (4) Taxable years of two and one-half months or less. For purposes of this subsection, an election for a taxable year made not later than two months and fifteen days after the first day of the taxable year shall be treated as timely made during such year. (5) Authority to treat late elections, etc., as timely. If (A) an election under subsection (a) of this section is made for any taxable year (determined without regard to paragraph three of this subsection) after the date prescribed by this subsection for making such election for such taxable year, or if no such election is made for any taxable year, and (B) the commissioner determines that there was reasonable cause for failure to timely make such election, then (C) the commissioner may treat such an election as timely made for such taxable year (and paragraph three of this subsection shall not apply). (6) Years for which effective. An election under subsection (a) of this section shall be effective for the taxable year of the corporation for which it is made and for all succeeding taxable years of the corpo- ration until such election is terminated under subsection (c) of this section. (c)] Termination. An [election under] ELIGIBLE S CORPORATION SHALL CEASE TO BE SUBJECT TO subsection (a) of this section [shall cease to be effective (1)] on the day an election to be an S corporation ceases to be effec- tive for federal income tax purposes pursuant to subsection (d) of section thirteen hundred sixty-two of the internal revenue code[, or (2) if shareholders holding more than one-half of the shares of stock of the corporation on the day on which the revocation is made revoke such election in the manner the tax commission may prescribe by regu- lation, (A) on the first day of the taxable year of the corporation, if the revocation is made during such taxable year and on or before the fifteenth day of the third month thereof, or (B) on the first day of the following taxable year of the corporation, if the revocation is made during the taxable year but after the fifteenth day of the third month thereof, or S. 8009 43 A. 9009 (C) on and after the date so specified, if the revocation specifies a date for revocation which is on or after the day on which the revocation is made, or (3) if any person who was not a shareholder of the corporation on the day on which the election is made becomes a shareholder in the corpo- ration and affirmatively refuses to consent to such election in the manner the tax commission may prescribe by regulation, on the day such person becomes a shareholder]. [(d)] (C) New York S termination year. In the case of a New York S termination year, the amount of any item of S corporation income, loss and deduction and reductions for taxes (as described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code) required to be taken account of under this arti- cle shall be adjusted in the same manner that the S corporation's items which are included in the shareholder's federal adjusted gross income are adjusted under subsection (s) of section six hundred twelve. [(e) Inadvertent invalid elections. If (1) an election under subsection (a) of this section was not effective for the taxable year for which made (determined without regard to paragraph two of subsection (b) of this section) by reason of a failure to obtain shareholder consents, (2) the commissioner determines that the circumstances resulting in such ineffectiveness were inadvertent, (3) no later than a reasonable period of time after discovery of the circumstances resulting in such ineffectiveness, steps were taken to acquire the required shareholder consents, and (4) the corporation, and each person who was a shareholder in the corporation at any time during the period specified pursuant to this subsection, agrees to make such adjustments (consistent with the treat- ment of the corporation as a New York S corporation) as may be required by the commissioner with respect to such period, (5) then, notwithstanding the circumstances resulting in such ineffec- tiveness, such corporation shall be treated as a New York S corporation during the period specified by the commissioner. (f)] (D) QUALIFIED SUBCHAPTER S SUBSIDIARIES. IF AN S CORPORATION HAS ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S SUBSIDIARY FOR FEDERAL INCOME TAX PURPOSES UNDER PARAGRAPH THREE OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE, SUCH ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND (1) THE ASSETS, LIABILITIES, INCOME, DEDUCTIONS, PROPERTY, PAYROLL, RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF ECONOMIC ACTIVITY OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE OF THE PARENT CORPORATION, (2) TRANSACTIONS BETWEEN THE PARENT CORPORATION AND THE SUBSIDIARY, INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO ACCOUNT, AND (3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION. (E) Validated federal elections. If [(1) an election under subsection (a) of this section was made for a taxable year or years of a corpo- ration, which years occur with or within the period for which] the federal S election of [such] AN ELIGIBLE S corporation has been vali- dated pursuant to the provisions of subsection (f) of section thirteen hundred sixty-two of the internal revenue code, [and S. 8009 44 A. 9009 (2) the corporation, and each person who was a shareholder in the corporation at any time during such taxable year or years agrees to make such adjustments (consistent with the treatment of the corporation as a New York S corporation) as may be required by the commissioner with respect to such year or years, (3) then] such corporation shall be treated as [a New York] AN ELIGI- BLE S corporation SUBJECT TO SUBSECTION (A) OF THIS SECTION during [such] THE year or years FOR WHICH SUCH ELECTION HAS BEEN VALIDATED. [(g) Transitional rule. Any election made under this section (as in effect for taxable years beginning before January first, nineteen hundred eighty-three) shall be treated as an election made under subsection (a) of this section. (h) Cross reference. For definitions relating to S corporations, see subdivision one-A of section two hundred eight of this chapter. (i) Mandated New York S corporation election. (1) Notwithstanding the provisions in subsection (a) of this section, in the case of an eligible S corporation for which the election under subsection (a) of this section is not in effect for the current taxable year, the shareholders of an eligible S corporation are deemed to have made that election effective for the eligible S corporation's entire current taxable year, if the eligible S corporation's investment income for the current taxa- ble year is more than fifty percent of its federal gross income for such year. In determining whether an eligible S corporation is deemed to have made that election, the income of a qualified subchapter S subsidiary owned directly or indirectly by the eligible S corporation shall be included with the income of the eligible S corporation. (2) For the purposes of this subsection, the term "eligible S corpo- ration" has the same definition as in subsection (a) of this section. (3) For the purposes of this subsection, the term "investment income" means the sum of an eligible S corporation's gross income from interest, dividends, royalties, annuities, rents and gains derived from dealings in property, including the corporation's share of such items from a partnership, estate or trust, to the extent such items would be includa- ble in federal gross income for the taxable year. (4) Estimated tax payments. When making estimated tax payments required to be made under this chapter in the current tax year, the eligible S corporation and its shareholders may rely on the eligible S corporation's filing status for the prior year. If the eligible S corpo- ration's filing status changes from the prior tax year the corporation or the shareholders, as the case may be, which made the payments shall be entitled to a refund of such estimated tax payments. No additions to tax with respect to any required declarations or payments of estimated tax imposed under this chapter shall be imposed on the corporation or shareholders, whichever is the taxpayer for the current taxable year, if the corporation or the shareholders file such declarations and make such estimated tax payments by January fifteenth of the following calendar year, regardless of whether the taxpayer's tax year is a calendar or a fiscal year.] § 19. Transition rules. Any prior net operating loss conversion subtraction and net operating loss carryforward that otherwise would have been allowed under subparagraphs (viii) and (ix), respectively, of paragraph (a) of subdivision 1 of section 210 of the tax law for the taxable years beginning on or after January 1, 2023 to any taxpayer that was a New York C corporation for a taxable year beginning on or after January 1, 2022 and before January 1, 2023, and that becomes a New York S corporation for a taxable year beginning on or after January 1, 2023 S. 8009 45 A. 9009 as a result of the amendments made by this act, shall be held in abey- ance and be available to such taxpayer if its election to be a federal S corporation is terminated. Further, any credit carryforwards allowed to such a taxpayer under section 210-B of the tax law shall be held in abeyance and be available to such taxpayer if its election to be a federal S corporation is terminated. However, the taxpayer's years as a New York S corporation shall be counted for purposes of computing any time period applicable to the allowance of the prior net operating loss conversion subtraction or carryforward, the net operating loss deduction, or any credit carryforward. § 20. This act shall take effect immediately and shall apply to taxa- ble years beginning on or after January 1, 2023. PART S Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of section 210-B of the tax law, as amended by section 2 of part P of chap- ter 59 of the laws of 2017, is amended to read as follows: (i) A credit shall be allowed under this subdivision with respect to tangible personal property and other tangible property, including build- ings and structural components of buildings, which are: depreciable pursuant to section one hundred sixty-seven of the internal revenue code, have a useful life of four years or more, are acquired by purchase as defined in section one hundred seventy-nine (d) of the internal revenue code, have a situs in this state and are (A) principally used by the taxpayer in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horti- culture, floriculture, viticulture or commercial fishing, (B) industrial waste treatment facilities or air pollution control facilities, used in the taxpayer's trade or business, (C) research and development property, or (D) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section four hundred seventy-five (e) of the Internal Revenue Code, (E) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regu- lated investment company as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan orig- ination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, (F) principally used in the ordinary course of the taxpay- er's business as an exchange registered as a national securities exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi- ties Exchange Act of 1934 or a board of trade as defined in subparagraph one of paragraph (a) of section fourteen hundred ten of the not-for-pro- fit corporation law or as an entity that is wholly owned by one or more such national securities exchanges or boards of trade and that provides automation or technical services thereto, or (G) principally used as a qualified film production facility including qualified film production facilities having a situs in an empire zone designated as such pursuant to article eighteen-B of the general municipal law, where the taxpayer S. 8009 46 A. 9009 is providing three or more services to any qualified film production company using the facility, including such services as a studio lighting grid, lighting and grip equipment, multi-line phone service, broadband information technology access, industrial scale electrical capacity, food services, security services, and heating, ventilation and air conditioning. For purposes of clauses (D), (E) and (F) of this subpara- graph, property purchased by a taxpayer affiliated with a regulated broker, dealer, registered investment advisor, national securities exchange or board of trade, is allowed a credit under this subdivision if the property is used by its affiliated regulated broker, dealer, registered investment advisor, national securities exchange or board of trade in accordance with this subdivision. For purposes of determining if the property is principally used in qualifying uses, the uses by the taxpayer described in clauses (D) and (E) of this subparagraph may be aggregated. In addition, the uses by the taxpayer, its affiliated regu- lated broker, dealer and registered investment advisor under either or both of those clauses may be aggregated. Provided, however, a taxpayer shall not be allowed the credit provided by clauses (D), (E) and (F) of this subparagraph unless the property is first placed in service before October first, two thousand fifteen and (i) eighty percent or more of the employees performing the administrative and support functions resulting from or related to the qualifying uses of such equipment are located in this state or (ii) the average number of employees that perform the administrative and support functions resulting from or related to the qualifying uses of such equipment and are located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety-five percent of the average number of employ- ees that perform these functions and are located in this state during the thirty-six months immediately preceding the year for which the cred- it is claimed, or (iii) the number of employees located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety percent of the number of employees located in this state on December thirty-first, nineteen hundred ninety-eight or, if the taxpayer was not a calendar year taxpayer in nineteen hundred ninety- eight, the last day of its first taxable year ending after December thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in this state after the taxable year beginning in nine- teen hundred ninety-eight, then the taxpayer is not required to satisfy the employment test provided in the preceding sentence of this subpara- graph for its first taxable year. For purposes of clause (iii) of this subparagraph the employment test will be based on the number of employ- ees located in this state on the last day of the first taxable year the taxpayer is subject to tax in this state. If the uses of the property must be aggregated to determine whether the property is principally used in qualifying uses, then either each affiliate using the property must satisfy this employment test or this employment test must be satisfied through the aggregation of the employees of the taxpayer, its affiliated regulated broker, dealer, and registered investment adviser using the property. For purposes of clause (A) of this subparagraph, tangible personal property and other tangible property shall not include property principally used by the taxpayer (I) in the production or distribution of electricity, natural gas after extraction from wells, steam, or water delivered through pipes and mains, OR (II) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDIUM, OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELEVISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS, OR IN THE DUPLICATION, FOR PURPOSES OF BROADCAST IN S. 8009 47 A. 9009 ANY MEDIUM, OF A MASTER OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELEVISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS. § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 of the tax law, as amended by section 3 of part P of chapter 59 of the laws of 2017, is amended to read as follows: (A) A credit shall be allowed under this subsection with respect to tangible personal property and other tangible property, including build- ings and structural components of buildings, which are: depreciable pursuant to section one hundred sixty-seven of the internal revenue code, have a useful life of four years or more, are acquired by purchase as defined in section one hundred seventy-nine (d) of the internal revenue code, have a situs in this state and are (i) principally used by the taxpayer in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horti- culture, floriculture, viticulture or commercial fishing, (ii) indus- trial waste treatment facilities or air pollution control facilities, used in the taxpayer's trade or business, (iii) research and development property, (iv) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, enter- ing into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section 475(e) of the Internal Revenue Code, (v) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regulated investment compa- ny as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan origination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or (vi) principally used as a qualified film production facility includ- ing qualified film production facilities having a situs in an empire zone designated as such pursuant to article eighteen-B of the general municipal law, where the taxpayer is providing three or more services to any qualified film production company using the facility, including such services as a studio lighting grid, lighting and grip equipment, multi- line phone service, broadband information technology access, industrial scale electrical capacity, food services, security services, and heat- ing, ventilation and air conditioning. For purposes of clauses (iv) and (v) of this subparagraph, property purchased by a taxpayer affiliated with a regulated broker, dealer, or registered investment adviser is allowed a credit under this subsection if the property is used by its affiliated regulated broker, dealer or registered investment adviser in accordance with this subsection. For purposes of determining if the property is principally used in qualifying uses, the uses by the taxpay- er described in clauses (iv) and (v) of this subparagraph may be aggre- gated. In addition, the uses by the taxpayer, its affiliated regulated broker, dealer and registered investment adviser under either or both of those clauses may be aggregated. Provided, however, a taxpayer shall not be allowed the credit provided by clauses (iv) and (v) of this subpara- graph unless (I) eighty percent or more of the employees performing the administrative and support functions resulting from or related to the qualifying uses of such equipment are located in this state, or (II) the S. 8009 48 A. 9009 average number of employees that perform the administrative and support functions resulting from or related to the qualifying uses of such equipment and are located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety-five percent of the average number of employees that perform these functions and are located in this state during the thirty-six months immediately preceding the year for which the credit is claimed, or (III) the number of employees located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety percent of the number of employees located in this state on December thirty-first, nineteen hundred ninety-eight or, if the taxpayer was not a calendar year taxpayer in nineteen hundred ninety-eight, the last day of its first taxable year ending after December thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in this state after the taxable year beginning in nineteen hundred ninety-eight, then the taxpayer is not required to satisfy the employment test provided in the preceding sentence of this subparagraph for its first taxable year. For the purposes of clause (III) of this subparagraph the employment test will be based on the number of employees located in this state on the last day of the first taxable year the taxpayer is subject to tax in this state. If the uses of the property must be aggregated to determine whether the property is principally used in qualifying uses, then either each affiliate using the property must satisfy this employment test or this employment test must be satisfied through the aggregation of the employees of the taxpayer, its affiliated regulated broker, dealer, and registered investment adviser using the property. For purposes of clause (i) of this subparagraph, tangible personal property and other tangible property shall not include property principally used by the taxpayer (A) in the production or distribution of electricity, natural gas after extraction from wells, steam, or water delivered through pipes and mains, OR (B) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDI- UM, OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELEVISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS, OR IN THE DUPLICATION, FOR PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELE- VISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS. § 3. This act shall take effect immediately, and shall apply to prop- erty placed in service on or after January 1, 2023. PART T Section 1. Section 301-b of the tax law is amended by adding a new subdivision (j) to read as follows: (J) EXEMPTION FOR TUGBOATS AND TOWBOATS. THE USE BY A TUGBOAT OR TOWBOAT OF MOTOR FUEL, DIESEL MOTOR FUEL, OR RESIDUAL PETROLEUM PRODUCT. PROVIDED, THAT THE COMMISSIONER SHALL REQUIRE SUCH DOCUMENTARY PROOF TO QUALIFY FOR ANY EXEMPTION PROVIDED HEREUNDER AS THE COMMISSIONER DEEMS APPROPRIATE. § 2. The opening paragraph of section 301-c of the tax law, as amended by section 5 of part W-1 of chapter 109 of the laws of 2006, is amended to read as follows: A subsequent purchaser shall be eligible for reimbursement of tax with respect to the following gallonage, subsequently sold by such purchaser in accordance with subdivision (a), (b), (e), (h), (j), (k), (n) or (o) of this section or used by such purchaser in accordance with subdivision (c), (d), (f), (g), (i), (l) [or], (m) OR (Q) of this section, which S. 8009 49 A. 9009 gallonage has been included in the measure of the tax imposed by this article on a petroleum business: § 3. The opening paragraph of section 301-c of the tax law, as amended by chapter 468 of the laws of 2000, is amended to read as follows: A subsequent purchaser shall be eligible for reimbursement of tax with respect to the following gallonage, subsequently sold by such purchaser in accordance with subdivision (a), (b), (e), (h), (j) or (k) of this section or used by such purchaser in accordance with subdivision (c), (d), (f), (g), (i), (l) [or], (m) OR (Q) of this section, which gallo- nage has been included in the measure of the tax imposed by this article on a petroleum business: § 4. Section 301-c of the tax law is amended by adding a new subdivi- sion (q) to read as follows: (Q) REIMBURSEMENT FOR TUGBOATS AND TOWBOATS. A USE BY A TUGBOAT OR TOWBOAT OF MOTOR FUEL, DIESEL MOTOR FUEL, OR RESIDUAL PETROLEUM PRODUCT. THIS REIMBURSEMENT MAY BE CLAIMED ONLY WHERE (1) ANY TAX IMPOSED PURSU- ANT TO THIS ARTICLE HAS BEEN PAID WITH RESPECT TO SUCH GALLONAGE AND THE ENTIRE AMOUNT OF SUCH TAX HAS BEEN ABSORBED BY SUCH PURCHASER, AND (2) SUCH TUGBOAT OR TOWBOAT POSSESSES DOCUMENTARY PROOF SATISFACTORY TO THE COMMISSIONER EVIDENCING THE ABSORPTION BY IT OF THE ENTIRE AMOUNT OF SUCH TAX. PROVIDED, THAT THE COMMISSIONER SHALL REQUIRE SUCH DOCUMENTARY PROOF TO QUALIFY FOR ANY REIMBURSEMENT PROVIDED HEREUNDER AS THE COMMIS- SIONER DEEMS APPROPRIATE. § 5. This act shall take effect September 1, 2022, and shall apply to uses of motor fuel, diesel motor fuel and residual petroleum product on and after such date; provided however that the amendments to the opening paragraph of section 301-c of the tax law made by section two of this act shall be subject to the expiration and reversion of such paragraph pursuant to section 19 of part W-1 of chapter 109 of the laws of 2006, as amended, when upon such date the provisions of section three of this act shall take effect. PART U Section 1. Subparagraph (i) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (i) is added to read as follows: (I) WITH RESPECT TO A CITY OF ONE MILLION OR MORE AND THE FOLLOWING COUNTIES: (1) ANY SUCH CITY HAVING A POPULATION OF ONE MILLION OR MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDI- NANCES OR RESOLUTIONS IMPOSING SUCH TAXES IN ANY SUCH CITY, AT THE RATE OF FOUR AND ONE-HALF PERCENT; (2) THE FOLLOWING COUNTIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF THREE PERCENT AS AUTHORIZED ABOVE IN THIS PARAGRAPH ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARAGRAPH: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CAYUGA, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, FULTON, GENESEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MADISON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, S. 8009 50 A. 9009 SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHESTER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU; (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA. (E) PROVIDED, HOWEVER, THAT (I) THE COUNTY OF ROCKLAND MAY IMPOSE ADDITIONAL RATES OF FIVE-EIGHTHS PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS; (II) THE COUNTY OF ONTARIO MAY IMPOSE ADDITIONAL RATES OF ONE-EIGHTH PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS; (III) THREE-QUARTERS PERCENT OF THE ADDITIONAL RATE AUTHORIZED TO BE IMPOSED BY THE COUNTY OF NASSAU SHALL BE SUBJECT TO THE LIMITATION SET FORTH IN SECTION TWELVE HUNDRED SIXTY- TWO-E OF THIS ARTICLE. § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (ii) is added to read as follows: (II) THE FOLLOWING CITIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF ONE AND ONE-HALF PERCENT OR HIGHER AS AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH CITIES ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDI- TIONAL TO THE ONE AND ONE-HALF PERCENT OR HIGHER RATES AUTHORIZED ABOVE IN THIS PARAGRAPH: (1) ONE PERCENT - MOUNT VERNON; NEW ROCHELLE; OSWEGO; WHITE PLAINS; (2) ONE AND ONE-QUARTER PERCENT - NONE; (3) ONE AND ONE-HALF PERCENT - YONKERS. § 3. Subparagraphs (iii) and (iv) of the opening paragraph of section 1210 of the tax law are REPEALED and a new subparagraph (iii) is added to read as follows: (III) THE MAXIMUM RATE REFERRED TO IN SECTION TWELVE HUNDRED TWENTY- FOUR OF THIS ARTICLE SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDI- TIONAL RATES AUTHORIZED FOR COUNTIES, OTHER THAN THE COUNTIES OF CAYUGA, CORTLAND, FULTON, MADISON, AND OTSEGO, IN CLAUSE TWO OF SUBPARAGRAPH (I) AND THE CITIES IN SUBPARAGRAPH (II) OF THIS PARAGRAPH. § 4. Section 1210 of the tax law is amended by adding a new subdivi- sion (p) to read as follows: (P) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR ANY OTHER LAW TO THE CONTRARY, A COUNTY AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OR RATES OF SALES AND COMPENSATING USE TAXES BY CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF THIS SECTION, OR A CITY, OTHER THAN THE CITY OF MOUNT VERNON, AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OF SUCH TAXES BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH, MAY ADOPT A LOCAL LAW, ORDINANCE, OR RESOLUTION BY A MAJORITY VOTE OF ITS GOVERNING BODY IMPOS- ING SUCH RATE OR RATES FOR A PERIOD NOT TO EXCEED TWO YEARS, AND ANY SUCH PERIOD MUST END ON NOVEMBER THIRTIETH OF AN ODD-NUMBERED YEAR. NOTWITHSTANDING THE PRECEDING SENTENCE, THE CITY OF WHITE PLAINS IS AUTHORIZED TO EXCEED SUCH TWO-YEAR LIMITATION TO IMPOSE THE TAX AUTHOR- IZED BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH FOR THE PERIOD COMMENCING ON SEPTEMBER FIRST, TWO THOUSAND TWENTY-THREE AND ENDING ON NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-FIVE. ANY SUCH LOCAL LAW, ORDI- NANCE, OR RESOLUTION SHALL ALSO BE SUBJECT TO THE PROVISIONS OF SUBDIVI- SIONS (D) AND (E) OF THIS SECTION. § 5. Section 1210-E of the tax law is REPEALED. S. 8009 51 A. 9009 § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1), (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section 1224 of the tax law are REPEALED. § 7. Section 1224 of the tax law is amended by adding three new subdi- visions (d), (e), and (f) to read as follows: (D) FOR PURPOSES OF THIS SECTION, THE TERM "PRIOR RIGHT" SHALL MEAN THE PREFERENTIAL RIGHT TO IMPOSE ANY TAX DESCRIBED IN SECTIONS TWELVE HUNDRED TWO AND TWELVE HUNDRED THREE, OR TWELVE HUNDRED TEN AND TWELVE HUNDRED ELEVEN, OF THIS ARTICLE AND THEREBY TO PREEMPT SUCH TAX AND TO PRECLUDE ANOTHER MUNICIPAL CORPORATION FROM IMPOSING OR CONTINUING THE IMPOSITION OF SUCH TAX TO THE EXTENT THAT SUCH RIGHT IS EXERCISED. HOWEVER, THE RIGHT OF PREEMPTION SHALL ONLY APPLY WITHIN THE TERRITORIAL LIMITS OF THE TAXING JURISDICTION HAVING THE RIGHT OF PREEMPTION. (E) EACH OF THE FOLLOWING COUNTIES AND CITIES SHALL HAVE THE SOLE RIGHT TO IMPOSE THE FOLLOWING ADDITIONAL RATE OF SALES AND COMPENSATING USE TAXES IN EXCESS OF THREE PERCENT THAT SUCH COUNTY OR CITY IS AUTHOR- IZED TO IMPOSE PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OR SUBPARA- GRAPH (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE. SUCH ADDITIONAL RATES OF TAX SHALL NOT BE SUBJECT TO PREEMPTION. (1) COUNTIES: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, GENE- SEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHESTER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU; (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA. (E) PROVIDED, HOWEVER, THAT THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE ADDITIONAL ONE PERCENT RATE OF TAX WHICH SUCH COUNTY IS AUTHORIZED TO IMPOSE PURSUANT TO THE AUTHORITY OF CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE IN THE AREA OF THE COUNTY OUTSIDE THE CITIES OF MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS, AND YONKERS. (2) CITIES: (A) ONE-QUARTER OF ONE PERCENT - ROME; (B) ONE-HALF OF ONE PERCENT - NONE; (C) THREE-QUARTERS OF ONE PERCENT - NONE; (D) ONE PERCENT - MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS; (E) ONE AND ONE-QUARTER PERCENT - NONE; (F) ONE AND ONE-HALF PERCENT - YONKERS. (F) EACH OF THE FOLLOWING CITIES IS AUTHORIZED TO PREEMPT THE TAXES IMPOSED BY THE COUNTY IN WHICH IT IS LOCATED PURSUANT TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, TO THE EXTENT OF ONE-HALF THE MAXIMUM AGGREGATE RATE AUTHORIZED UNDER SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, INCLUDING THE ADDITIONAL RATE THAT THE COUNTY IN WHICH SUCH CITY IS LOCATED IS AUTHORIZED TO IMPOSE: AUBURN, IN CAYUGA COUNTY; CORTLAND, IN CORTLAND COUNTY; GLOVERSVILLE AND JOHNSTOWN, IN FULTON COUNTY; ONEIDA, IN MADISON COUNTY; ONEONTA, IN OTSEGO COUNTY. AS OF THE DATE THIS SUBDIVISION TAKES EFFECT, ANY SUCH PREEMPTION BY SUCH A CITY IN EFFECT ON SUCH DATE SHALL CONTINUE IN FULL FORCE AND EFFECT UNTIL THE EFFECTIVE DATE OF A LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED OR S. 8009 52 A. 9009 AMENDED BY THE CITY TO CHANGE SUCH PREEMPTION. ANY PREEMPTION BY SUCH A CITY PURSUANT TO THIS SUBDIVISION THAT TAKES EFFECT AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL BE SUBJECT TO THE NOTICE REQUIREMENTS IN SECTION TWELVE HUNDRED TWENTY-THREE OF THIS SUBPART AND TO THE OTHER REQUIREMENTS OF THIS ARTICLE. § 8. Section 1262-g of the tax law, as amended by section 2 of item DD of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-g. Oneida county allocation and distribution of net collections from the additional [one percent rate] RATES of sales and compensating use taxes. Notwithstanding any contrary provision of law, (A) if the county of Oneida imposes sales and compensating use taxes at a rate which is one percent additional to the three percent rate authorized by section twelve hundred ten of this article, as authorized by such section, [(a)] (I) where a city in such county imposes tax pursuant to the authority of subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city one-half of the net collections attributable to such additional one percent rate of the county's taxes collected in such city's boundaries; [(b)] (II) where a city in such county does not impose tax pursuant to the authority of such subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city not so imposing tax a portion of the net collections attribut- able to one-half of the county's additional one percent rate of tax calculated on the basis of the ratio which such city's population bears to the county's total population, such populations as determined in accordance with the latest decennial federal census or special popu- lation census taken pursuant to section twenty of the general municipal law completed and published prior to the end of the quarter for which the allocation is made, which special census must include the entire area of the county; [and (c)] provided, however, that such county shall dedicate the first one million five hundred thousand dollars of net collections attributable to such additional one percent rate of tax received by such county after the county receives in the aggregate eigh- teen million five hundred thousand dollars of net collections from such additional one percent rate of tax [imposed for any of the periods: September first, two thousand twelve through August thirty-first, two thousand thirteen; September first, two thousand thirteen through August thirty-first, two thousand fourteen; and September first, two thousand fourteen through August thirty-first, two thousand fifteen; September first, two thousand fifteen through August thirty-first, two thousand sixteen; and September first, two thousand sixteen through August thir- ty-first, two thousand seventeen; September first, two thousand seven- teen through August thirty-first, two thousand eighteen; September first, two thousand eighteen through August thirty-first, two thousand twenty; and September first, two thousand twenty through August thirty- first, two thousand twenty-three,] to an allocation on a per capita basis, utilizing figures from the latest decennial federal census or special population census taken pursuant to section twenty of the gener- al municipal law, completed and published prior to the end of the year for which such allocation is made, which special census must include the entire area of such county, to be allocated and distributed among the towns of Oneida county by appropriation of its board of legislators; provided, further, that nothing herein shall require such board of legislators to make any such appropriation until it has been notified by any town by appropriate resolution and, in any case where there is a S. 8009 53 A. 9009 village wholly or partly located within a town, a resolution of every such village, embodying the agreement of such town and village or villages upon the amount of such appropriation to be distributed to such village or villages out of the allocation to the town or towns in which it is located. (B) IF THE COUNTY OF ONEIDA IMPOSES SALES AND COMPENSAT- ING USE TAXES AT A RATE WHICH IS ONE AND THREE-QUARTERS PERCENT ADDI- TIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, AS AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARA- GRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS ATTRIBUTABLE TO THE ADDITIONAL THREE-QUARTERS PERCENT OF SUCH ADDITIONAL RATE SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 9. The opening paragraph of section 1262-r of the tax law, as added by chapter 37 of the laws of 2006, is amended to read as follows: (1) NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF ONTARIO IMPOSES THE ADDITIONAL ONE-EIGHTH OF ONE PERCENT AND THE ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATES OF TAX AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM THE SUCH ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATE OF SUCH TAXES SHALL BE SET ASIDE FOR COUNTY PURPOSES AND SHALL NOT BE SUBJECT TO ANY AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART OR THIS SECTION. (2) Notwithstanding the provisions of subdivision (c) of section twelve hundred sixty-two of this part to the contrary, if the cities of Canandaigua and Geneva in the county of Ontario do not impose sales and compensating use taxes pursuant to the authority of section twelve hundred ten of this article and such cities and county enter into an agreement pursuant to the authority of subdivision (c) of section twelve hundred sixty-two of this part to be effective March first, two thousand six, such agreement may provide that: § 10. The tax law is amended by adding a new section 1262-v to read as follows: § 1262-V. DISPOSITION OF NET COLLECTIONS FROM THE ADDITIONAL RATE OF SALES AND COMPENSATING USE TAX IN CLINTON COUNTY. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF CLINTON IMPOSES THE ADDI- TIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM SUCH ADDITIONAL RATE SHALL BE PAID TO THE COUNTY AND THE COUNTY SHALL SET ASIDE SUCH NET COLLECTIONS AND USE THEM SOLELY FOR COUNTY PURPOSES. SUCH NET COLLECTIONS SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREE- MENT ENTERED INTO BY THE COUNTY AND THE CITY IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 11. Section 1262-s of the tax law, as amended by section 3 of item U of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-s. Disposition of net collections from the additional one-quar- ter of one percent rate of sales and compensating use taxes in the coun- ty of Herkimer. Notwithstanding any contrary provision of law, if the county of Herkimer imposes [the additional] SALES AND COMPENSATING USE TAX AT A RATE THAT IS ONE AND one-quarter [of one] percent [rate of S. 8009 54 A. 9009 sales and compensating use taxes] ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE AS authorized by [section twelve hundred ten-E] CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN of this article [for all or any portion of the period beginning December first, two thousand seven and ending November thirtieth, two thousand twenty-three], the county shall use all net collections [from such] ATTRIBUTABLE TO THE additional one-quarter [of one] percent OF SUCH ADDITIONAL rate to pay the county's expenses for the construction of additional correctional facilities. The net collections from [the] SUCH ADDITIONAL ONE-QUARTER PERCENT OF SUCH additional rate [imposed pursuant to section twelve hundred ten-E of this article] shall be deposited in a special fund to be created by such county separate and apart from any other funds and accounts of the county. Any and all remaining net collections from such additional tax, after the expenses of such construction are paid, shall be deposited by the county of Herkimer in the general fund of such coun- ty for any county purpose. § 12. The tax law is amended by adding a new section 1265 to read as follows: § 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES OR TO EXPIRATIONS OF A PERIOD. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY: (A) ANY REFERENCE IN ANY SECTION OF THIS CHAPTER OR OTHER LAW, OR IN ANY LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED PURSUANT TO THE AUTHORITY OF THIS ARTICLE, TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY A COUNTY OR CITY PURSUANT TO THE AUTHORITY OF A CLAUSE, OR TO A SUBCLAUSE OF A CLAUSE, OF SUBPARAGRAPH (I) OR (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE REPEALED BY SECTION ONE OR TWO OF A PART OF A CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO THAT ADDED THIS SECTION OR PURSUANT TO SECTION TWELVE HUNDRED TEN-E OF THIS ARTICLE REPEALED BY SECTION FIVE OF SUCH PART SHALL BE DEEMED TO BE A REFERENCE TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY THAT COUNTY OR CITY PURSUANT TO THE AUTHORITY OF THE EQUIV- ALENT PROVISION OF CLAUSE TWO OF SUBPARAGRAPH (I) OR TO SUBPARAGRAPH (II) OF THE OPENING PARAGRAPH OF SUCH SECTION TWELVE HUNDRED TEN AS ADDED BY SUCH SECTION ONE OR TWO OF SUCH PART OF A CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO; (B) ANY REFERENCE IN THIS CHAPTER OR IN ANY OTHER LAW RELATING TO THE EXPIRATION OF A PROVISION CONCERNING THE DISTRIBUTION OF REVENUE FROM THE TAXES AUTHORIZED TO BE IMPOSED BY THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE SHALL BE DISREGARDED, AND SUCH PROVISION SHALL CONTINUE IN EFFECT UNLESS LATER AMENDED OR REPEALED. § 13. This act shall take effect immediately. PART V Section 1. Subdivision (c) of section 1101 of the tax law, as added by chapter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended by section 2 and paragraph 8 as added by section 3 of part AA of chapter 57 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the laws of 1965, is amended to read as follows: (c) When used in this article for the purposes of the tax imposed under subdivision (e) of section eleven hundred five OF THIS ARTICLE, the following terms shall mean: (1) Hotel. A building or portion of it which is regularly used and kept open as such for the lodging of guests. The term "hotel" includes S. 8009 55 A. 9009 an apartment hotel, a motel, boarding house or club, whether or not meals are served. (2) Occupancy. The use or possession, or the right to the use or possession, of any room in a hotel OR VACATION RENTAL. "Right to the use or possession" includes the rights of a room remarketer as described in paragraph eight of this subdivision. (3) Occupant. A person who, for a consideration, uses, possesses, or has the right to use or possess, any room in a hotel OR VACATION RENTAL under any lease, concession, permit, right of access, license to use or other agreement, or otherwise. "Right to use or possess" includes the rights of a room remarketer as described in paragraph eight of this subdivision. (4) Operator. Any person operating a hotel OR VACATION RENTAL. Such term shall include a room remarketer and such room remarketer shall be deemed to operate a hotel, or portion thereof, with respect to which such person has the rights of a room remarketer. (5) Permanent resident. Any occupant of any room or rooms in a hotel OR VACATION RENTAL for at least ninety consecutive days shall be consid- ered a permanent resident with regard to the period of such occupancy. (6) Rent. The consideration received for occupancy, including any service or other charge or amount required to be paid as a condition for occupancy, valued in money, whether received in money or otherwise and whether received by the operator or a room remarketer or another person on behalf of either of them. (7) Room. Any room or rooms of any kind in any part or portion of a hotel OR VACATION RENTAL, which is available for or let out for any purpose other than a place of assembly. (8) Room remarketer. A person who reserves, arranges for, conveys, or furnishes occupancy, whether directly or indirectly, to an occupant for rent in A HOTEL FOR an amount determined by the room remarketer, direct- ly or indirectly, whether pursuant to a written or other agreement. Such person's ability or authority to reserve, arrange for, convey, or furnish occupancy, directly or indirectly, and to determine rent there- for, shall be the "rights of a room remarketer". A room remarketer is not a permanent resident with respect to a room for which such person has the rights of a room remarketer. (9) VACATION RENTAL. A BUILDING OR PORTION OF IT THAT IS USED FOR THE LODGING OF GUESTS. THE TERM "VACATION RENTAL" INCLUDES A HOUSE, AN APARTMENT, A CONDOMINIUM, A COOPERATIVE UNIT, A CABIN, A COTTAGE, OR A BUNGALOW, OR ONE OR MORE ROOMS THEREIN, WHERE SLEEPING ACCOMMODATIONS ARE PROVIDED FOR THE LODGING OF PAYING OCCUPANTS, THE TYPICAL OCCUPANTS ARE TRANSIENTS OR TRAVELERS, AND THE RELATIONSHIP BETWEEN THE OPERATOR AND OCCUPANT IS NOT THAT OF A LANDLORD AND TENANT. IT IS NOT NECESSARY THAT MEALS ARE SERVED. A BUILDING OR PORTION OF A BUILDING MAY QUALIFY AS A VACATION RENTAL WHETHER OR NOT AMENITIES, INCLUDING BUT NOT LIMITED TO DAILY HOUSEKEEPING SERVICES, CONCIERGE SERVICES, OR LINEN SERVICES, ARE PROVIDED. (10) (I) VACATION RENTAL MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH AN OPERATOR, FACILITATES THE OCCUPANCY OF A VACA- TION RENTAL BY SUCH OPERATOR OR OPERATORS. A PERSON "FACILITATES THE OCCUPANCY OF A VACATION RENTAL" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE OF THE OCCUPANCY TAKES PLACE OR THE OFFER OF SUCH SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTERNET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE RENT PAID BY A S. 8009 56 A. 9009 CUSTOMER TO AN OPERATOR FOR THE OCCUPANCY OF A VACATION RENTAL, OR CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RENT. (II) FOR THE PURPOSES OF THIS ARTICLE, THE TERM "VACATION RENTAL MARKETPLACE PROVIDER" SHALL NOT INCLUDE A "ROOM REMARKETER" AS DEFINED IN PARAGRAPH EIGHT OF THIS SUBDIVISION. FOR PURPOSES OF THIS PARAGRAPH, PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN ANOTHER, OR WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDI- RECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER. THE TERM "VACATION RENTAL MARKETPLACE PROVIDER" SHALL NOT INCLUDE A "REAL ESTATE BROKER" AS LICENSED UNDER ARTICLE TWELVE-A OF THE REAL PROPERTY LAW. § 2. Subdivision (a) of section 1104 of the tax law, as added by chap- ter 3 of the laws of 2004, is amended to read as follows: (a) Imposition. In addition to any other fee or tax imposed by this article or any other law, on and after April first, two thousand five, there is hereby imposed within the territorial limits of a city with a population of a million or more and there shall be paid a unit fee on every occupancy of a unit in a hotel OR VACATION RENTAL in such city at the rate of one dollar and fifty cents per unit per day, except that such unit fee shall not be imposed upon (1) occupancy by a permanent resident or (2) where the rent per unit is not more than at the rate of two dollars per day. § 3. Paragraph 1 of subdivision (e) of section 1105 of the tax law, as amended by section 1 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (1) The rent for every occupancy of a room or rooms in a hotel AND VACATION RENTAL in this state, except that the tax shall not be imposed upon (i) a permanent resident, or (ii) where the rent is not more than at the rate of two dollars per day. § 4. Subdivisions 1 and 2 of section 1131 of the tax law, subdivision 1 as amended by section 2 of part G of chapter 59 of the laws of 2019 and subdivision 2 as added by chapter 93 of the laws of 1965, are amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; every operator of a hotel OR VACATION RENTAL; EVERY VACATION RENTAL MARKETPLACE PROVIDER WITH RESPECT TO THE RENT FOR EVERY OCCUPANCY OF A VACATION RENTAL IT FACILITATES AS DESCRIBED IN PARAGRAPH TEN OF SUBDIVI- SION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE; and every marketplace provider with respect to sales of tangible personal property it facilitates as described in paragraph one of subdivision (e) of section eleven hundred one of this article. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liability company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, or has so acted; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph [(8)] EIGHT of subdivision (b) of section eleven hundred one of this article shall not be a "person required to collect any tax S. 8009 57 A. 9009 imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four of this part. SUCH TERMS SHALL NOT INCLUDE AN OPERATOR OF A VACATION RENTAL WHO RENTS OUT THE OPERATOR'S OWN PROPERTY FOR THREE DAYS OR FEWER IN A CALENDAR YEAR AND DOES NOT USE A VACATION RENTAL MARKETPLACE PROVIDER TO FACILITATE SUCH RENTAL. (2) "Customer" shall include: every purchaser of tangible personal property or services; every patron paying or liable for the payment of any amusement charge; and every occupant of a room or rooms in a hotel OR VACATION RENTAL. § 5. Section 1132 of the tax law is amended by adding a new subdivi- sion (m) to read as follows: (M)(L) A VACATION RENTAL MARKETPLACE PROVIDER WITH RESPECT TO A SALE FOR EVERY OCCUPANCY OF A VACATION RENTAL IT FACILITATES: (A) SHALL HAVE ALL THE OBLIGATIONS AND RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTI- CLE TWENTY-NINE OF THIS CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSU- ANT THERETO, INCLUDING, BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIF- ICATE OF AUTHORITY, TO COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIFICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISIONS; AND (B) SHALL KEEP SUCH RECORDS AND INFORMATION AND COOPERATE WITH THE COMMISSIONER TO ENSURE THE PROPER COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER. (2) AN OPERATOR IS RELIEVED FROM THE DUTY TO COLLECT TAX IN REGARD TO A PARTICULAR RENT FOR THE OCCUPANCY OF A VACATION RENTAL SUBJECT TO TAX UNDER SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND SHALL NOT INCLUDE THE RENT FROM SUCH OCCUPANCY IN ITS TAXABLE SALES FOR PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART IF, IN REGARD TO SUCH OCCUPANCY: (A) THE OPERATOR OF THE VACATION RENTAL CAN SHOW THAT SUCH OCCUPANCY WAS FACILITATED BY A VACATION RENTAL MARKETPLACE PROVIDER FROM WHOM SUCH OPERATOR HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE VACATION RENTAL MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF OCCUPANCY OF A VACATION RENTAL BY THE OPERATOR FACILITATED BY THE VACA- TION RENTAL MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (B) ANY FAILURE OF THE VACATION RENTAL MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH OPERATOR PROVIDING THE VACATION RENTAL MARKETPLACE PROVIDER WITH INCORRECT INFORMATION. THIS PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIFICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH CERTIF- ICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE OPERATOR. PROVIDED THAT, WITH REGARD TO ANY SALES OF OCCUPANCY OF A VACATION RENTAL BY AN OPERATOR THAT ARE FACILITATED BY A VACATION RENTAL MARKET- PLACE PROVIDER WHO IS AFFILIATED WITH SUCH OPERATOR WITHIN THE MEANING OF PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, THE OPERATOR SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH VACATION RENTAL MARKETPLACE PROVIDER FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART. S. 8009 58 A. 9009 (3) THE COMMISSIONER MAY, AT HIS OR HER DISCRETION: (A) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A VACATION RENTAL MARKETPLACE PROVIDER, IN WHICH THE VACATION RENTAL MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL OPERATORS FOR WHOM THE VACATION RENTAL MARKETPLACE PROVIDER FACILITATES SALES OF OCCUPANCY OF A VACATION RENTAL, WITH RESPECT TO ALL SALES THAT IT FACIL- ITATES FOR SUCH OPERATORS WHERE THE RENTAL OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE VACATION RENTAL MARKET- PLACE PROVIDER AND OPERATOR WILL HAVE THE SAME EFFECT AS AN OPERATOR'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH VACATION RENTAL MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 6. Section 1133 of the tax law is amended by adding a new subdivi- sion (g) to read as follows: (G) A VACATION RENTAL MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE VACATION RENTAL MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT OR INSUFFICIENT INFORMATION GIVEN TO THE VACATION RENTAL MARKETPLACE PROVIDER BY THE OPERATOR. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE OPERATOR AND VACATION RENTAL MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 7. Subdivision (a) of section 1134 of the tax law is amended by adding a new paragraph 7 to read as follows: (7) AN OPERATOR OF A VACATION RENTAL, AS DEFINED IN PARAGRAPH NINE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, IS RELIEVED OF THE REQUIREMENT TO REGISTER IN PARAGRAPH ONE OF THIS SUBDI- VISION IF ITS SALES OF OCCUPANCY ARE WHOLLY FACILITATED BY ONE OR MORE VACATION RENTAL MARKETPLACE PROVIDERS FROM WHOM THE OPERATOR HAS RECEIVED IN GOOD FAITH A CERTIFICATE OF COLLECTION THAT MEETS THE REQUIREMENTS SET FORTH IN PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART. § 8. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 5 of part G of chapter 59 of the laws of 2019, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. The return of a marketplace seller shall exclude the receipts from a sale of tangible personal property facilitated by a marketplace provider if, in regard to such sale: (A) the marketplace seller has timely received in good faith a properly completed certif- icate of collection from the marketplace provider or the marketplace provider has included a provision approved by the commissioner in the publicly-available agreement between the marketplace provider and the marketplace seller as described in subdivision one of section eleven hundred thirty-two of this part, and (B) the information provided by the marketplace seller to the marketplace provider about such tangible personal property is accurate. THE RETURN OF AN OPERATOR SHALL EXCLUDE S. 8009 59 A. 9009 THE RENT FROM OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION RENTAL MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE VACATION RENTAL OPERATOR HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION FROM THE VACATION RENTAL MARKETPLACE PROVIDER OR THE VACATION RENTAL MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE VACATION RENTAL MARKETPLACE PROVIDER AND THE OPERATOR AS DESCRIBED IN SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE OPERATOR TO THE VACATION RENTAL MARKETPLACE PROVIDER ABOUT SUCH RENT AND SUCH OCCUPANCY IS ACCURATE. § 9. Subparagraph (B) of paragraph 3 of subdivision (a) of section 1138 of the tax law, as amended by chapter 456 of the laws of 1998, is amended to read as follows: (B) The liability, pursuant to subdivision (a) of section eleven hundred thirty-three of this article, of any officer, director or employee of a corporation or of a dissolved corporation, member or employee of a partnership or employee of an individual proprietorship who as such officer, director, employee or member is under a duty to act for such corporation, partnership or individual proprietorship in complying with any requirement of this article for the tax imposed, collected or required to be collected, or for the tax required to be paid or paid over to the [tax commission] COMMISSIONER under this arti- cle, and the amount of such tax liability (whether or not a return is filed under this article, whether or not such return when filed is incorrect or insufficient, or where the tax shown to be due on the return filed under this article has not been paid or has not been paid in full) shall be determined by the [tax commission] COMMISSIONER in the manner provided for in paragraphs one and two of this subdivision. Such determination shall be an assessment of the tax and liability for the tax with respect to such person unless such person, within ninety days after the giving of notice of such determination, shall apply to the division of tax appeals for a hearing. If such determination is identi- cal to or arises out of a previously issued determination of tax of the corporation, dissolved corporation, partnership or individual proprie- torship for which such person is under a duty to act, an application filed with the division of tax appeals on behalf of the corporation, dissolved corporation, partnership or individual proprietorship shall be deemed to include any and all subsequently issued personal determi- nations and a separate application to the division of tax appeals for a hearing shall not be required. The [tax commission] COMMISSIONER may, nevertheless, of [its] HIS OR HER own motion, redetermine such determi- nation of tax or liability for tax. Where the [tax commission] COMMIS- SIONER determines or redetermines that the amount of tax claimed to be due from a vendor of tangible personal property or services, a recipient of amusement charges, or an operator of a hotel OR VACATION RENTAL is erroneous or excessive in whole or in part, [it] HE OR SHE shall rede- termine the amount of tax properly due from any such person as a person required to collect tax with respect to such vendor, recipient, or oper- ator, and if such amount is less than the amount of tax for which such person would have been liable in the absence of such determination or redetermination, [it] HE OR SHE shall reduce such liability accordingly. Furthermore, the [tax commission] COMMISSIONER may, of [its] HIS OR HER own motion, abate on behalf of any such person, any part of the tax determined to be erroneous or excessive whether or not such tax had become finally and irrevocably fixed with respect to such person but no claim for abatement may be filed by any such person. The provisions of S. 8009 60 A. 9009 this paragraph shall not be construed to limit in any manner the powers of the attorney general under subdivision (a) of section eleven hundred forty-one OF THIS PART or the powers of the [tax commission] COMMISSION- ER to issue a warrant under subdivision (b) of such section against any person whose liability has become finally and irrevocably fixed. § 10. Section 1142 of the tax law is amended by adding a new subdivi- sion 16 to read as follows: 16. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF VACATION RENTAL MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAVE BEEN REVOKED AND, IF NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE THAT A VACATION RENTAL OPERATOR WILL BE RELIEVED OF THE REQUIREMENT TO REGISTER AND THE DUTY TO COLLECT TAX ON THE RENT FOR OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION RENTAL MARKET- PLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO AND PARAGRAPH SIX OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED THIRTY- FOUR OF THIS PART BEING MET, SUCH VACATION RENTAL MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY. § 11. Subparagraph (i) of paragraph 3 of subdivision (a) of section 1145 of the tax law, as amended by section 48 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (i) Any person required to obtain a certificate of authority under section eleven hundred thirty-four of this part who, without possessing a valid certificate of authority, (A) sells tangible personal property or services subject to tax, receives amusement charges or operates a hotel OR VACATION RENTAL, (B) purchases or sells tangible personal prop- erty for resale, (C) sells petroleum products, or (D) sells cigarettes shall, in addition to any other penalty imposed by this chapter, be subject to a penalty in an amount not exceeding five hundred dollars for the first day on which such sales or purchases are made, plus an amount not exceeding two hundred dollars for each subsequent day on which such sales or purchases are made, not to exceed ten thousand dollars in the aggregate. § 12. Subparagraph (v) of paragraph 4 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (v) shall provide that, for purposes of the tax described in subdivi- sion (e) of section eleven hundred five of this chapter, "permanent resident" means any occupant of any room or rooms in a hotel OR VACATION RENTAL for at least one hundred eighty consecutive days with regard to the period of such occupancy; § 13. Subdivisions (a) and (b) of section 1817 of the tax law, as amended by section 53 of part K of chapter 61 of the laws of 2011, are amended to read as follows: (a) Any person required to obtain a certificate of authority under section eleven hundred thirty-four of this chapter who, without possess- ing a valid certificate of authority, willfully (1) sells tangible personal property or services subject to tax, receives amusement charges or operates a hotel OR VACATION RENTAL, (2) purchases or sells tangible personal property for resale, or (3) sells petroleum products; and any person who fails to surrender a certificate of authority as required by such article shall be guilty of a misdemeanor. (b) Any person required to obtain a certificate of authority under section eleven hundred thirty-four of this chapter who within five years after a determination by the commissioner, pursuant to such section, to S. 8009 61 A. 9009 suspend, revoke or refuse to issue a certificate of authority has become final, and without possession of a valid certificate of authority (1) sells tangible personal property or services subject to tax, receives amusement charges or operates a hotel OR VACATION RENTAL, (2) purchases or sells tangible personal property for resale, or (3) sells petroleum products, shall be guilty of a misdemeanor. It shall be an affirmative defense that such person performed the acts described in this subdivi- sion without knowledge of such determination. Any person who violates a provision of this subdivision, upon conviction, shall be subject to a fine in any amount authorized by this article, but not less than five hundred dollars, in addition to any other penalty provided by law. § 14. This act shall take effect immediately and shall apply to collections of rent by the operator or vacation rental marketplace provider on or after September 1, 2022. PART W Section 1. Paragraph 1 of subsection (a) of section 671 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (1) Every employer maintaining an office or transacting business with- in this state and making payment of any wages taxable under this article shall deduct and withhold from such wages for each payroll period a tax computed in such manner as to result, so far as practicable, in with- holding from the employee's wages during each calendar year an amount substantially equivalent to the tax reasonably estimated to be due under this article resulting from the inclusion in the employee's New York adjusted gross income or New York source income of [his] THE EMPLOYEE'S wages received during such calendar year. The method of determining the amount to be withheld shall be prescribed by [regulations of] the commissioner, with due regard to the New York withholding exemptions of the employee and the sum of any credits allowable against [his] THE EMPLOYEE'S tax. THE COMMISSIONER SHALL PUBLISH ANY CHANGES TO SUCH METH- OD OF DETERMINING THE AMOUNT OF TAX TO BE WITHHELD ON THE WEBSITE OF THE DEPARTMENT OF TAXATION AND FINANCE. THE COMMISSIONER SHALL ALSO CAUSE NOTICE OF SUCH CHANGES TO BE PUBLISHED IN THE SECTION FOR MISCELLANEOUS NOTICES IN THE STATE REGISTER AND SHALL GIVE OTHER APPROPRIATE GENERAL NOTICE OF SUCH CHANGES. § 2. Paragraph 6 of subsection (j) of section 697 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (6) Publication of interest rates. The commissioner of taxation and finance SHALL PUBLISH THE INTEREST RATES SET UNDER THIS SUBSECTION ON THE WEBSITE OF THE DEPARTMENT OF TAXATION AND FINANCE. IMMEDIATELY FOLLOWING SUCH PUBLICATION, THE COMMISSIONER shall cause SUCH INTEREST RATES to be published in the section for miscellaneous notices in the state register[,] and give other appropriate general notice of[, the] SUCH interest rates [to be set under this subsection no later than twen- ty days preceding the first day of the calendar quarter during which such interest rates apply]. The setting and publication of such interest rates shall not be included within paragraph (a) of subdivision two of section one hundred two of the state administrative procedure act relat- ing to the definition of a rule. § 3. Paragraph 5 of subsection (e) of section 1096 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: S. 8009 62 A. 9009 (5) Publication of interest rates. The commissioner of taxation and finance shall PUBLISH THE INTEREST RATES SET UNDER THIS SUBSECTION ON THE WEBSITE OF THE DEPARTMENT OF TAXATION AND FINANCE. IMMEDIATELY FOLLOWING SUCH PUBLICATION, THE COMMISSIONER SHALL cause SUCH INTEREST RATES to be published in the section for miscellaneous notices in the state register[,] and give other appropriate general notice of[, the] SUCH interest rates [to be set under this subsection no later than twen- ty days preceding the first day of the calendar quarter during which such interest rates apply]. The setting and publication of such interest rates shall not be included within paragraph (a) of subdivision two of section one hundred two of the state administrative procedure act relat- ing to the definition of a rule. § 4. This act shall take effect immediately. PART X Section 1. Paragraph (c) of subdivision 1 of section 1701 of the tax law, as added by section 1 of part CC-1 of chapter 57 of the laws of 2008, is amended to read as follows: (c) "Financial institution" means (I) any financial institution authorized or required to participate in a financial institution data match system or program for child support enforcement purposes under federal or state law, AND (II) ANY VIRTUAL CURRENCY BUSINESS LICENSED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. § 2. This act shall take effect immediately. PART Y Section 1. Section 4 of chapter 475 of the laws of 2013, relating to assessment ceilings for local public utility mass real property, as amended by section 1 of part G of chapter 59 of the laws of 2018, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [eight] TWELVE years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 4 of section 499-pppp of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 4. Any final determination of an assessment ceiling by the commission- er pursuant to subdivision one of this section shall be subject to judi- cial challenge by an owner of local public utility mass real property or a local assessing jurisdiction in a proceeding under article seven of this chapter; provided however, the time to commence such proceeding shall be within sixty days of the issuance of the final assessment ceil- ing certificate and all questions of fact and law shall be determined de novo. Any judicial proceeding shall be commenced in the supreme court in the county of Albany or the county agreed upon by the parties in which the local public utility mass real property is located. Nothing in this S. 8009 63 A. 9009 section shall preclude a challenge of the assessed value established by a local assessing jurisdiction with respect to local public utility mass real property as otherwise provided in article seven of this chapter, PROVIDED HOWEVER THAT UPON MOTION OF THE LOCAL ASSESSING JURISDICTION, SUCH CHALLENGE SHALL BE CONSOLIDATED WITH THE CHALLENGE TO THE FINAL ASSESSMENT CEILING COMMENCED PURSUANT TO THIS SUBDIVISION AND LITIGATED IN THE VENUE SPECIFIED BY THIS SUBDIVISION. In any proceeding challeng- ing an assessed value established by a local assessing jurisdiction for local public utility mass real property, the final certified assessment ceiling established pursuant to subdivision one of this section [shall not], AND THE EVIDENCE SUBMITTED IN CONNECTION THEREWITH, MAY be consid- ered by the court WHEN DETERMINING THE MERITS OF THE CHALLENGE TO THE ASSESSED VALUE ESTABLISHED BY THE ASSESSING UNIT. IN SUCH A PROCEEDING, THE LOCAL ASSESSING JURISDICTION, UPON REQUEST TO THE LOCAL PUBLIC UTIL- ITY MASS REAL PROPERTY OWNER, SHALL BE PROVIDED WITH A COPY OF THE ANNU- AL REPORT PROVIDED TO THE COMMISSIONER UNDER SECTION FOUR HUNDRED NINE- TY-NINE-RRRR OF THIS TITLE. IF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY OWNER FAILS TO PROVIDE THE REPORT WITHIN THIRTY DAYS OF SUCH A REQUEST, THE PROCEEDING SHALL BE DISMISSED. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision 4 of section 499-pppp of the real property tax law made by section two of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith. PART Z Section 1. This Part enacts into law major components of legislation relating to the administration of the STAR program authorized by section 425 of the real property tax law and subsection (eee) of section 606 of the tax law. Each component is wholly contained within a Subpart identi- fied as Subparts A through E. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes refer- ence to a section of "this act", when used in connection with that particular component, shall be deemed to mean and refer to the corre- sponding section of the Subpart in which it is found. Section two contains a severability clause for all provisions contained in each Subpart of this Part. Section three of this act sets forth the general effective date of this Part. SUBPART A Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real property tax law, as amended by section 1 of part TT of chapter 59 of the laws of 2019, is amended to read as follows: (a-2) Notwithstanding any provision of law to the contrary, where an application for the "enhanced" STAR exemption authorized by subdivision four of this section has not been filed on or before the taxable status date, and the owner believes that good cause existed for the failure to file the application by that date, the owner may, no later than the last day for paying school taxes without incurring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall contain an explanation of why the deadline was missed, and shall be accompanied by an application, reflecting the facts and circumstances as they S. 8009 64 A. 9009 existed on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the exemption if the commissioner is satisfied that (i) good cause existed for the failure to file the application by the taxable status date, and that (ii) the applicant is otherwise entitled to the exemption. The commis- sioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner has granted the exemption, the assessor shall thereupon be authorized and directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. [If the correction is not made before school taxes are levied, the school district authorities shall be authorized and directed to take account of the fact that the commissioner has granted the exemption by correcting the applicant's tax bill and/or issuing a refund accordingly] PROVIDED, HOWEVER, THAT IF THE ASSESSMENT ROLL CANNOT BE CORRECTED IN TIME FOR THE EXEMPTION TO APPEAR ON THE APPLICANT'S SCHOOL TAX BILL, THE COMMISSIONER SHALL BE AUTHORIZED TO REMIT DIRECTLY TO THE APPLICANT THE TAX SAVINGS THAT THE STAR EXEMPTION WOULD HAVE YIELDED IF IT HAD APPEARED ON THE APPLICANT'S TAX BILL. THE AMOUNTS SO PAYABLE SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPAR- AGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN OF THIS SECTION. § 2. This act shall take effect immediately. SUBPART B Section 1. Subparagraph (i) of paragraph (c) of subdivision 17 of section 425 of the real property tax law, as added by section 2 of part G of chapter 39 of the laws of 2019, is amended to read as follows: (i) A STAR credit switch may be deferred if the application for the credit is submitted after a cutoff date set by the commissioner. When setting a cutoff date, the commissioner shall take into account the time required to ensure that the STAR exemptions of all STAR credit appli- cants in the assessing unit will be removed before school tax bills are prepared. The commissioner shall specify the applicable cutoff dates after taking into account local assessment calendars, provided that different cutoff dates may be set for municipalities with different assessment calendars, and provided further that any such cutoff date may be no earlier than the [fifteenth] FORTY-FIFTH day prior to the date on which the applicable final assessment roll is required by law to be completed and filed. § 2. This act shall take effect immediately. SUBPART C Section 1. Subparagraph (A) of paragraph 3 of subsection (eee) of section 606 of the tax law, as amended by section 2 of part RR of chap- ter 59 of the laws of 2019, is amended to read as follows: (A) Beginning with taxable years after two thousand fifteen, a basic STAR credit shall be available to a qualified taxpayer if the affiliated income of the parcel that serves as the taxpayer's primary residence is less than or equal to five hundred thousand dollars FOR THE APPLICABLE INCOME TAX YEAR SPECIFIED BY PARAGRAPH (B-1) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. The income limit established for the basic STAR exemption by paragraph (b-1) of subdivision three of section four hundred twenty-five of the real S. 8009 65 A. 9009 property tax law shall not be taken into account when determining eligi- bility for the basic STAR credit. § 2. This act shall take effect immediately. SUBPART D Section 1. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 7 of part E of chapter 59 of the laws of 2018, is amended to read as follows: (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors, county directors of real property tax services, and municipal tax collecting officers WITHIN NEW YORK STATE. In addition, [where an agree- ment is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her designees] SUCH INFORMATION MAY BE EXCHANGED WITH ASSESSORS AND TAX OFFICIALS FROM JURISDICTIONS OUTSIDE NEW YORK STATE IF THE LAWS OF THE OTHER JURISDICTION ALLOW IT TO PROVIDE SIMILAR INFORMA- TION TO THIS STATE. Such information shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or otherwise. § 2. This act shall take effect immediately. SUBPART E Section 1. Subsection (c) of section 651 of the tax law, as amended by section 3 of part QQ of chapter 59 of the laws of 2019, is amended to read as follows: (c) Decedents. The return for any deceased individual shall be made and filed by [his] THE DECEDENT'S executor, administrator, or other person charged with [his] THE DECEDENT'S property. If a final return of a decedent is for a fractional part of a year, the due date of such return shall be the fifteenth day of the fourth month following the close of the twelve-month period which began with the first day of such fractional part of the year. Notwithstanding any provision of law to the contrary, when a return has been filed for a decedent, the commissioner may disclose the decedent's name, address, and the date of death to the director of real property tax services of the county AND THE ASSESSOR OF THE ASSESSING UNIT in which the address reported on such return is located. § 2. Paragraph (a) of subdivision 1 of section 1125 of the real prop- erty tax law, as amended by chapter 415 of the laws of 2006, is amended to read as follows: (a) Parties entitled to notice. The enforcing officer shall on or before the date of the first publication of the notice above set forth cause a notice to be mailed to (i) each owner and any other person whose right, title, or interest was a matter of public record as of the date the list of delinquent taxes was filed, which right, title or interest will be affected by the termination of the redemption period, and whose name and address are reasonably ascertainable from the public record, including the records in the offices of the surrogate of the county, or from material submitted to the enforcing officer pursuant to paragraph (d) of this subdivision, (ii) any other person who has filed a declara- tion of interest pursuant to section eleven hundred twenty-six of this title which has not expired, [and] (iii) WHERE A POSTHUMOUS DECLARATION S. 8009 66 A. 9009 OF INTEREST HAS BEEN FILED PURSUANT TO SECTION ELEVEN HUNDRED TWENTY- SIX-A OF THIS TITLE, THE PERSON SPECIFIED THEREON AS THE PERSON TO BE INFORMED WHEN TAXES ARE OWED ON THE PROPERTY, AND (IV) the enforcing officer of any other tax district having a right to enforce the payment of a tax imposed upon any of the parcels described upon such petition. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED AS MAKING ANY SUCH PERSON A PARTY TO THE PROCEEDING OR AS MAKING ANY SUCH PERSON PERSONALLY LIABLE FOR THE TAXES OR OTHER LEGAL CHARGES DUE THEREON. § 3. The real property tax law is amended by adding a new section 1126-a to read as follows: § 1126-A. POSTHUMOUS DECLARATION OF INTEREST. 1. UPON THE DEATH OF AN OWNER OF REAL PROPERTY, A PERSONAL REPRESENTATIVE OF THE DECEDENT'S ESTATE OR A SUCCESSOR IN INTEREST OF THE DECEDENT MAY FILE A POSTHUMOUS DECLARATION OF INTEREST WITH THE ENFORCING OFFICER ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH POSTHUMOUS DECLARATION SHALL PROVIDE THE DECEDENT'S NAME AND DATE OF DEATH, A DESCRIPTION OF THE PROPERTY THE DECEDENT HAD OWNED, AND THE NAME AND ADDRESS OF A PERSON TO BE INFORMED WHEN TAXES ARE OWED ON THAT PROPERTY. THEREAFTER, IN ADDITION TO ANY OTHER NOTIFICATION REQUIREMENTS THAT MAY APPLY, THE ENFORCING OFFICER SHALL CAUSE ANY NOTICES REQUIRED BY THIS ARTICLE TO BE MAILED TO SUCH PERSON AT THE ADDRESS SO PROVIDED UNTIL SUCH TIME AS THE ACQUISITION OF TITLE BY THE DECEDENT'S SUCCESSOR OR SUCCESSORS IN INTEREST HAS BECOME A MATTER OF PUBLIC RECORD, OR THE DECLARATION IS REVOKED OR MODIFIED. THE ENFORCING OFFICER SHALL PROVIDE COPIES OF ANY DECLARATIONS SO FILED TO THE ASSESSOR, TAX COLLECTING OFFICER AND COUNTY DIRECTOR OF REAL PROPER- TY TAX SERVICES WITHIN FIFTEEN DAYS OF RECEIPT, OR AS SOON THEREAFTER AS IS PRACTICABLE. 2. IF NO POSTHUMOUS DECLARATION OF INTEREST HAS BEEN FILED, A DELIN- QUENT TAX LIEN MAY BE FORECLOSED BY A PROCEEDING IN REM AS OTHERWISE PROVIDED BY THIS ARTICLE, NOTWITHSTANDING THE FACT THAT THE PROPERTY OWNER HAS DIED. IN SUCH CASES, THE ENFORCING OFFICER SHALL NOT BE OBLIGED TO OBTAIN IN PERSONAM JURISDICTION OVER A PERSONAL REPRESEN- TATIVE OF THE DECEDENT'S ESTATE; PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO RELIEVE THE ENFORCING OFFICER OF THE OBLIGATION TO CAUSE A NOTICE TO BE MAILED TO ANY PERSONS WHOSE INTERESTS IN THE PROPERTY ARE REASONABLY ASCERTAINABLE FROM THE RECORDS OF THE SURROGATE OF THE COUNTY, AS PROVIDED BY SUBPARAGRAPH (I) OF PARA- GRAPH (A) OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED TWENTY-FIVE OF THIS TITLE. § 4. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart contained in any part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, para- graph, subdivision, section or subpart contained in any part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Subparts A through E of this act shall be as specifically set forth in the last section of such Subparts. PART AA S. 8009 67 A. 9009 Section 1. Section 575-b of the real property tax law is amended by adding a new subdivision 4 to read as follows: 4. COMPLAINTS WITH RESPECT TO ASSESSMENTS DETERMINED UNDER THIS SECTION SHALL BE GOVERNED BY SECTIONS FIVE HUNDRED TWELVE AND FIVE HUNDRED TWENTY-FOUR OF THIS ARTICLE AND THE FOLLOWING PROVISIONS: (A) THE ASSESSOR SHALL, UPON REQUEST, PROVIDE THE OWNER WITH THE INPUTS THAT HE OR SHE ENTERED INTO THE COMMISSIONER'S APPRAISAL MODEL WHEN VALUING THE PROPERTY PURSUANT TO THIS SECTION. (B) THE PROPERTY OWNER MAY ADVISE THE ASSESSOR OF ANY ALLEGED ERRORS TO THE APPRAISAL MODEL INPUTS BELIEVED TO HAVE BEEN MADE BY THE ASSES- SOR, AND MAY PROVIDE INFORMATION TO THE ASSESSOR IN SUPPORT OF ANY PROPOSED CHANGE TO THOSE INPUTS. (C) IF THE PROPERTY OWNER PROVIDES SUCH INFORMATION TO THE ASSESSOR PRIOR TO THE FILING OF THE TENTATIVE ASSESSMENT ROLL, THE ASSESSOR MAY MAKE SUCH ADJUSTMENTS TO THE APPRAISAL MODEL INPUTS AS HE OR SHE DEEMS WARRANTED BASED UPON THE INFORMATION PROVIDED BY THE PROPERTY OWNER, AND MAY RECALCULATE THE PROPERTY VALUE BY ENTERING THE ADJUSTED INPUTS INTO THE APPRAISAL MODEL. (D) IF DISSATISFIED WITH THE ASSESSED VALUE APPEARING ON THE TENTATIVE ASSESSMENT ROLL, THE PROPERTY OWNER MAY FILE A COMPLAINT WITH THE BOARD OF ASSESSMENT REVIEW; PROVIDED, HOWEVER, THAT THE GROUNDS FOR REVIEW OF AN ASSESSMENT DETERMINED UNDER THIS SECTION WITH RESPECT TO BOTH ARTICLE FIVE AND ARTICLE SEVEN OF THIS CHAPTER SHALL BE LIMITED TO THE ACCURACY OF THE APPRAISAL MODEL INPUTS MADE BY THE ASSESSOR. (E) ACTIONS OR PROCEEDINGS THAT CHALLENGE THE VALIDITY AND ACCURACY OF THE APPRAISAL MODEL OR DISCOUNT RATES ESTABLISHED UNDER THIS SECTION MAY NOT BE COMMENCED AGAINST ASSESSING UNITS. SUCH CHALLENGES MAY ONLY BE BROUGHT BY COMMENCING AN ACTION AGAINST THE COMMISSIONER IN THE THIRD DEPARTMENT OF THE APPELLATE DIVISION OF THE SUPREME COURT IN THE MANNER PROVIDED BY ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. § 2. This act shall take effect immediately. PART BB Section 1. The subsection heading and paragraphs 1, 2, 3, and 4 of subsection (n-1) of section 606 of the tax law, as added by subpart B of part C of chapter 20 of the laws of 2015, the opening paragraph of subparagraph (a) of paragraph 2 as amended by section 7 of part A of chapter 60 of the laws of 2016, are amended to read as follows: [Property tax relief] HOMEOWNER TAX REBATE credit. (1) An individual taxpayer who meets the eligibility standards in paragraph two of this subsection shall be allowed a credit against the taxes imposed by this article in the amount specified in paragraph three of this subsection for tax [years two thousand sixteen, two thousand seventeen, two thou- sand eighteen, and two thousand nineteen] YEAR TWO THOUSAND TWENTY-TWO. (2) (a) To be eligible for the credit, the taxpayer (or taxpayers filing joint returns) on the personal income tax return filed for the taxable year two years prior, must have (i) been a resident, (ii) owned and primarily resided in real property receiving either the STAR exemption authorized by section four hundred twenty-five of the real property tax law or the school tax relief credit authorized by subsection (eee) of this section, and (iii) had qualified gross income no greater than two hundred [seventy-five] FIFTY thousand dollars. [Provided, however, that no credit shall be allowed if any of the following apply: S. 8009 68 A. 9009 (i) Such property is located in an independent school district that is subject to the provisions of section two thousand twenty-three-a of the education law and that has adopted a budget in excess of the tax levy limit prescribed by that section. To render its taxpayers eligible for the credit authorized by this subsection, the school district must certify its compliance with such tax levy limit in the manner prescribed by subdivision two of section two thousand twenty-three-b of the educa- tion law. (ii) Such property is located in a city with a dependent school district that is subject to the provisions of section three-c of the general municipal law and that has adopted a budget in excess of the tax levy limit prescribed by that section. To render its taxpayers eligible for the credit authorized by this subsection, the city must certify its compliance with such tax levy limit in the manner prescribed by subdivi- sion two of section three-d of the general municipal law. (iii) Such property is located in the city of New York.] (3) Amount of credit. (a) [For the two thousand sixteen taxable year (i) for a taxpayer residing in real property located within the metro- politan commuter transportation district (MCTD) and outside the city of New York, the amount of the credit shall be $130; (ii) for a taxpayer residing in real property located outside the MCTD, the amount of the credit shall be $185. (b) For the two thousand seventeen, two thousand eighteen and two thousand nineteen taxable years (i)] For a taxpayer who owned and prima- rily resided in real property receiving the basic STAR exemption OR WHO RECEIVED THE BASIC STAR CREDIT, the amount of the credit shall equal the STAR tax savings associated with such basic STAR exemption IN THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, multiplied by the following percentage: [(A) for the two thousand seventeen taxable year: Qualified Gross Income Percentage Not over $75,000 28% Over $75,000 but not over $150,000 20.5% Over $150,000 but not over $200,000 13% Over $200,000 but not over $275,000 5.5% Over $275,000 No credit (B) for the two thousand eighteen taxable year: Qualified Gross Income Percentage Not over $75,000 60% Over $75,000 but not over $150,000 42.5% Over $150,000 but not over $200,000 25% Over $200,000 but not over $275,000 7.5% Over $275,000 No credit (C) for the two thousand nineteen taxable year:] (I) FOR A TAXPAYER WHOSE PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY OF NEW YORK: Qualified Gross Income Percentage Not over $75,000 [85%] 163% Over $75,000 but not over $150,000 [60%] 115% Over $150,000 but not over $200,000 [35%] 66% Over $200,000 but not over [10%] 18% [$275,000] $250,000 Over [$275,000] $250,000 No credit (II) FOR A TAXPAYER WHOSE PRIMARY RESIDENCE IS LOCATED WITHIN THE CITY OF NEW YORK: S. 8009 69 A. 9009 QUALIFIED GROSS INCOME PERCENTAGE NOT OVER $75,000 125% OVER $75,000 BUT NOT OVER $150,000 115% OVER $150,000 BUT NOT OVER $200,000 105% OVER $200,000 BUT NOT OVER $250,000 100% OVER $250,000 NO CREDIT [(c)] (B) For a taxpayer who owned and primarily resided in real prop- erty receiving the enhanced STAR exemption OR WHO RECEIVED THE ENHANCED STAR CREDIT, the amount of the credit shall equal the STAR tax savings associated with such enhanced STAR exemption IN THE TWO THOUSAND TWEN- TY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, multiplied by [the follow- ing percentage: Taxable Year Percentage two thousand seventeen 12% two thousand eighteen 26% two thousand nineteen 34%] SIXTY-SIX PERCENT IF THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY OF NEW YORK, OR ONE HUNDRED TEN PERCENT IF THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED WITHIN THE CITY OF NEW YORK. [(d)] (C) In no case may the amount of the credit allowed under this subsection exceed the school district taxes due with respect to the residence for that school year, NOR SHALL ANY CREDIT BE ALLOWED UNDER THIS SUBSECTION IF THE AMOUNT DETERMINED PURSUANT TO THIS PARAGRAPH IS LESS THAN ONE HUNDRED DOLLARS. (4) For purposes of this subsection: (a) "Qualified gross income" means the adjusted gross income of the qualified taxpayer for the taxable year as reported for federal income tax purposes, or which would be reported as adjusted gross income if a federal income tax return were required to be filed. In computing quali- fied gross income, the net amount of loss reported on Federal Schedule C, D, E, or F shall not exceed three thousand dollars per schedule. In addition, the net amount of any other separate category of loss shall not exceed three thousand dollars. The aggregate amount of all losses included in computing qualified gross income shall not exceed fifteen thousand dollars. (b) "STAR tax savings" means the tax savings attributable to the basic or enhanced STAR exemption, whichever is applicable, within a portion of a school district, as determined by the commissioner pursuant to subdi- vision two of section thirteen hundred six-a of the real property tax law. [(c) "Metropolitan commuter transportation district" or "MCTD" means the metropolitan commuter transportation district as defined in section twelve hundred sixty-two of the public authorities law.] § 2. This act shall take effect immediately. PART CC Section 1. The opening paragraph and subdivisions 1 and 2 of section 1306 of the racing, pari-mutuel wagering and breeding law, the opening paragraph as amended by chapter 243 of the laws of 2020 and subdivisions 1 and 2 as added by chapter 174 of the laws of 2013, are amended to read as follows: The New York state gaming facility location board shall select, following a competitive process and subject to the restrictions of this article, no more than [four] SEVEN entities to apply to the commission for gaming facility licenses. In exercising its authority, the board S. 8009 70 A. 9009 shall have all powers necessary or convenient to fully carry out and effectuate its purposes including, but not limited to, the following powers. The board shall: 1. issue a request for applications for zone ONE OR two gaming facili- ty licenses pursuant to section one thousand three hundred twelve OR SECTION ONE THOUSAND THREE HUNDRED TWENTY-ONE-B of this article; 2. assist the commission in prescribing the form of the application for zone ONE OR two gaming facility licenses including information to be furnished by an applicant concerning an applicant's antecedents, habits, character, associates, criminal record, business activities and finan- cial affairs, past or present pursuant to section one thousand three hundred thirteen OR SECTION ONE THOUSAND THREE HUNDRED TWENTY-ONE-C of this article; § 2. Subparagraph 2 of paragraph (a) of subdivision 2 of section 1310 of the racing, pari-mutuel wagering and breeding law, as added by chap- ter 174 of the laws of 2013, is amended to read as follows: (2) Region two shall consist of Bronx, Kings, New York, Queens and Richmond counties[. No gaming facility shall be authorized in region two]; and § 3. The title heading of title 2 of article 13 of the racing, pari- mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: FACILITY DETERMINATION AND LICENSING: UPSTATE GAMING FACILITIES § 4. Section 1310 of title 2 of article 13 of the racing, pari-mutuel wagering and breeding law is redesignated section 1310 of title 1 of such article. § 5. Subdivision 1 of section 1311 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 175 of the laws of 2013, is amended to read as follows: 1. The commission is authorized to award up to four gaming facility licenses, in regions one, two and five of zone two. The duration of such initial license shall be ten years. The term of renewal shall be deter- mined by the commission. The commission may award a second license to a qualified applicant in no more than a single region. The commission is not empowered to award any license [in zone one. No gaming facilities are authorized] NOR ARE ANY GAMING FACILITIES AUTHORIZED under this [article] TITLE for the city of New York or any other portion of zone one. As a condition of licensure, licensees are required to commence gaming operations no more than twenty-four months following license award. No additional licenses may be awarded during the twenty-four month period, nor for an additional sixty months following the end of the twenty-four month period. Should the state legislatively authorize additional gaming facility licenses within these periods, licensees shall have the right to recover the license fee paid pursuant to section one thousand three hundred six of this article. This right shall be incorporated into the license itself, vest upon the opening of a gaming facility in zone one or in the same region as the licensee and entitle the holder of such license to bring an action in the court of claims to recover the license fee paid pursuant to section one thousand three hundred fifteen of this [article] TITLE in the event that any gaming facility license in excess of the number authorized by this section as of the effective date of this section is awarded within seven years from the date that the initial gaming facili- ty license is awarded. This right to recover any such fee shall be S. 8009 71 A. 9009 proportionate to the length of the respective period that is still remaining upon the vesting of such right. Additionally, the right to bring an action in the court of claims to recover the fee paid to the state on the twenty-fourth day of September, two thousand ten, by the operator of a video lottery gaming facility in a city of more than one million shall vest with such operator upon the opening of any gaming facility licensed by the commission in zone one within seven years from the date that the initial gaming facility license is awarded; provided however that the amount recoverable shall be limited to the pro rata amount of the time remaining until the end of the seven year exclusivity period, proportionate to the period of time between the date of opening of the video lottery facility until the conclusion of the seven year period. § 6. The opening paragraph of subdivision 1 of section 1312 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: The board shall issue within ninety days of a majority of members being appointed a request for applications for a gaming facility license in regions one, two and five in zone two; provided, however, that the board shall not issue any requests for applications for any region in zone one UNDER THIS TITLE; and further provided that the board shall not issue any requests for applications with respect to any gaming facility subsequently legislatively authorized until seven years following the commencement of gaming activities in zone two, UNLESS SUCH REQUEST FOR APPLICATION WITH RESPECT TO ANY SUBSEQUENTLY LEGISLATIVELY AUTHORIZED GAMING FACILITY ADHERES TO THE PROCEDURE AS DESCRIBED IN SECTION ONE THOUSAND THREE HUNDRED ELEVEN OF THIS TITLE. All requests for applica- tions shall include: § 7. Article 13 of the racing, pari-mutuel wagering and breeding law is amended by adding a new title 2-A to read as follows: TITLE 2-A FACILITY DETERMINATION AND LICENSING: ADDITIONAL GAMING FACILITIES SECTION 1321-A. LICENSE AUTHORIZATION; RESTRICTIONS. 1321-B. REQUESTS FOR APPLICATIONS; REQUESTS FOR INFORMATION. 1321-C. FORM OF APPLICATION. 1321-D. LICENSE APPLICANT ELIGIBILITY. 1321-E. REQUIRED CAPITAL INVESTMENT. 1321-F. MINIMUM LICENSE THRESHOLDS. 1321-G. INVESTIGATION OF LICENSE APPLICANTS. 1321-H. DISQUALIFYING CRITERIA. 1321-I. HEARINGS. 1321-J. SITING EVALUATION. § 1321-A. LICENSE AUTHORIZATION; RESTRICTIONS. 1. THE COMMISSION IS AUTHORIZED TO AWARD UP TO THREE ADDITIONAL GAMING FACILITY LICENSES. THE DURATION OF SUCH INITIAL LICENSE AND THE TERM OF RENEWAL SHALL BE DETER- MINED BY THE COMMISSION. 2. NOTWITHSTANDING THE FOREGOING, NO CASINO GAMING FACILITY SHALL BE AUTHORIZED: (A) IN THE COUNTIES OF CLINTON, ESSEX, FRANKLIN, HAMILTON, JEFFERSON, LEWIS, SAINT LAWRENCE AND WARREN; (B) WITHIN THE FOLLOWING AREA: (1) TO THE EAST, STATE ROUTE 14 FROM SODUS POINT TO THE PENNSYLVANIA BORDER WITH NEW YORK; (2) TO THE NORTH, THE BORDER BETWEEN NEW YORK AND CANADA; (3) TO THE SOUTH, THE PENNSYLVA- NIA BORDER WITH NEW YORK; AND (4) TO THE WEST, THE BORDER BETWEEN NEW YORK AND CANADA AND THE BORDER BETWEEN PENNSYLVANIA AND NEW YORK; AND S. 8009 72 A. 9009 (C) IN THE COUNTIES OF CAYUGA, CHENANGO, CORTLAND, HERKIMER, LEWIS, MADISON, ONEIDA, ONONDAGA, OSWEGO AND OTSEGO. § 1321-B. REQUESTS FOR APPLICATIONS; REQUESTS FOR INFORMATION. REQUESTS FOR APPLICATIONS SHALL BE HANDLED IN THE SAME MANNER AS PROVIDED FOR IN SECTION THIRTEEN HUNDRED TWELVE OF THIS ARTICLE FOR GAMING LICENSES AUTHORIZED BUT NOT AWARDED, PROVIDED HOWEVER THAT ANY REQUESTS FOR APPLICATIONS FOR GAMING FACILITY LICENSES AUTHORIZED BUT NOT AWARDED MAY BE FOR GAMING FACILITY LICENSES IN ANY REGION IN ZONE ONE OR IN REGIONS ONE, TWO AND FIVE IN ZONE TWO. § 1321-C. FORM OF APPLICATION. THE FORM OF THE APPLICATION SHALL BE THE SAME AS ESTABLISHED UNDER SECTION THIRTEEN HUNDRED THIRTEEN OF THIS ARTICLE. § 1321-D. LICENSE APPLICANT ELIGIBILITY. 1. GAMING FACILITY LICENSES SHALL ONLY BE ISSUED TO APPLICANTS WHO ARE QUALIFIED UNDER THE CRITERIA SET FORTH IN THIS ARTICLE, AS DETERMINED BY THE COMMISSION. 2. AS A CONDITION OF FILING, EACH POTENTIAL LICENSE APPLICANT MUST: (A) DEMONSTRATE TO THE BOARD'S SATISFACTION THAT THE APPLICANT HAS CONSULTED WITH LOCAL GOVERNMENTS AND CONSIDERED INPUT FROM THE COMMUNI- TY; AND (B) WAIVE ALL RIGHTS THEY OR ANY AFFILIATED ENTITY POSSESS UNDER SECTION ONE THOUSAND THREE HUNDRED ELEVEN OF THIS ARTICLE TO BRING AN ACTION TO RECOVER A FEE. 3. THE EXPIRATION OF THE SEVEN YEAR RESTRICTED PERIOD FROM THE DATE THAT AN INITIAL GAMING FACILITY LICENSE WAS AWARDED IS FEBRUARY TWENTY- EIGHTH, TWO THOUSAND TWENTY-THREE FOR THE THREE INITIAL CASINO LICENSES AND NOVEMBER TWENTY-SECOND, TWO THOUSAND TWENTY-THREE FOR THE FINAL CASINO LICENSE AWARDED. SHOULD AN APPLICANT OR APPLICANTS COMMENCE GAMING ACTIVITIES PRIOR TO SUCH DATES, SUCH APPLICANT OR APPLICANTS SHALL BE JOINTLY AND SEVERALLY LIABLE FOR PAYMENT OF THE PROPORTIONATE FEE FOR THE RESPECTIVE PERIOD REMAINING AS REQUIRED BY SECTION ONE THOU- SAND THREE HUNDRED ELEVEN OF THIS ARTICLE. § 1321-E. REQUIRED CAPITAL INVESTMENT. 1. THE BOARD SHALL ESTABLISH THE MINIMUM CAPITAL INVESTMENT FOR EACH UNAWARDED GAMING FACILITY LICENSE. SUCH INVESTMENT MAY INCLUDE, BUT NOT BE LIMITED TO, A CASINO AREA, HOTEL AND OTHER AMENITIES; AND PROVIDED FURTHER, THAT THE BOARD SHALL DETERMINE WHETHER IT WILL INCLUDE THE PURCHASE OR LEASE PRICE OF THE LAND WHERE THE GAMING FACILITY WILL BE LOCATED OR ANY INFRASTRUCTURE DESIGNED TO SUPPORT THE SITE INCLUDING, BUT NOT LIMITED TO, DRAINAGE, UTILITY SUPPORT, ROADWAYS, INTERCHANGES, FILL AND SOIL OR GROUNDWATER OR SURFACE WATER CONTAMINATION ISSUES. THE BOARD MAY CONSIDER PRIVATE CAPI- TAL INVESTMENT MADE PREVIOUS TO THE EFFECTIVE DATE OF THIS TITLE, BUT MAY, IN ITS DISCRETION, DISCOUNT A PERCENTAGE OF THE INVESTMENT MADE. UPON AWARD OF A GAMING LICENSE BY THE COMMISSION, THE APPLICANT SHALL BE REQUIRED TO DEPOSIT TEN PERCENT OF THE TOTAL INVESTMENT PROPOSED IN THE APPLICATION INTO AN INTEREST-BEARING ACCOUNT. MONIES RECEIVED FROM THE APPLICANT SHALL BE HELD IN ESCROW UNTIL THE FINAL STAGE OF CONSTRUCTION, AS DETAILED IN THE TIMELINE OF CONSTRUCTION SUBMITTED WITH THE LICENSEE'S APPLICATION AND APPROVED BY THE COMMISSION, AT WHICH TIME THE DEPOSIT PLUS INTEREST EARNED SHALL BE RETURNED TO THE APPLICANT TO BE APPLIED FOR THE FINAL STAGE. SHOULD THE APPLICANT BE UNABLE TO COMPLETE THE GAMING FACILITY, THE DEPOSIT SHALL BE FORFEITED TO THE STATE. IN PLACE OF A CASH DEPOSIT, THE COMMISSION MAY ALLOW FOR AN APPLICANT TO SECURE A DEPOSIT BOND INSURING THAT TEN PERCENT OF THE PROPOSED CAPITAL INVESTMENT SHALL BE FORFEITED TO THE STATE IF THE APPLICANT IS UNABLE TO COMPLETE THE GAMING FACILITY. S. 8009 73 A. 9009 2. EACH APPLICANT SHALL SUBMIT ITS PROPOSED CAPITAL INVESTMENT WITH ITS APPLICATION TO THE BOARD WHICH SHALL INCLUDE STAGES OF CONSTRUCTION OF THE GAMING FACILITY AND THE DEADLINE BY WHICH THE STAGES AND OVERALL CONSTRUCTION AND ANY INFRASTRUCTURE IMPROVEMENTS WILL BE COMPLETED. IN AWARDING A LICENSE, THE COMMISSION SHALL DETERMINE AT WHAT STAGE OF CONSTRUCTION A LICENSEE SHALL BE APPROVED TO OPEN FOR GAMING; PROVIDED, HOWEVER, THAT A LICENSEE SHALL NOT BE APPROVED TO OPEN FOR GAMING UNTIL THE COMMISSION HAS DETERMINED THAT AT LEAST THE GAMING AREA AND OTHER ANCILLARY ENTERTAINMENT SERVICES AND NON-GAMING AMENITIES, AS REQUIRED BY THE BOARD, HAVE BEEN BUILT AND ARE OF A SUPERIOR QUALITY AS SET FORTH IN THE CONDITIONS OF LICENSURE. THE COMMISSION SHALL NOT APPROVE A GAMING FACILITY TO OPEN BEFORE THE COMPLETION OF THE PERMANENT CASINO AREA. 3. THE BOARD SHALL DETERMINE A LICENSING FEE TO BE PAID BY A LICENSEE WITHIN THIRTY DAYS AFTER THE AWARD OF THE LICENSE WHICH SHALL BE DEPOS- ITED INTO THE COMMERCIAL GAMING REVENUE FUND. THE LICENSE SHALL SET FORTH THE CONDITIONS TO BE SATISFIED BY THE LICENSEE BEFORE THE GAMING FACILITY SHALL BE OPENED TO THE PUBLIC. THE COMMISSION SHALL SET ANY RENEWAL FEE FOR SUCH LICENSE BASED ON THE COST OF FEES ASSOCIATED WITH THE EVALUATION OF A LICENSEE UNDER THIS ARTICLE WHICH SHALL BE DEPOSITED INTO THE COMMERCIAL GAMING FUND. SUCH RENEWAL FEE SHALL BE EXCLUSIVE OF ANY SUBSEQUENT LICENSING FEES UNDER THIS SECTION. 4. THE COMMISSION SHALL DETERMINE THE SOURCES AND TOTAL AMOUNT OF AN APPLICANT'S PROPOSED CAPITALIZATION TO DEVELOP, CONSTRUCT, MAINTAIN AND OPERATE A PROPOSED GAMING FACILITY UNDER THIS ARTICLE. UPON AWARD OF A GAMING LICENSE, THE COMMISSION SHALL CONTINUE TO ASSESS THE CAPITALIZA- TION OF A LICENSEE FOR THE DURATION OF CONSTRUCTION OF THE PROPOSED GAMING FACILITY AND THE TERM OF THE LICENSE. § 1321-F. MINIMUM LICENSE THRESHOLDS. THE MINIMUM LICENSING THRESH- OLDS SHALL BE THE SAME AS THOSE ESTABLISHED UNDER SECTION THIRTEEN HUNDRED SIXTEEN OF THIS ARTICLE. § 1321-G. INVESTIGATION OF LICENSE APPLICANTS. THE PROCESS USED TO INVESTIGATE LICENSE APPLICANTS SHALL BE THE SAME PROCESS ESTABLISHED UNDER SECTION THIRTEEN HUNDRED SEVENTEEN OF THIS ARTICLE. § 1321-H. DISQUALIFYING CRITERIA. THE CRITERIA TO DISQUALIFY APPLI- CANTS SHALL BE THE SAME CRITERIA USED FOR UPSTATE GAMING FACILITY LICENSING, WHICH ARE ENUMERATED IN SECTION THIRTEEN HUNDRED EIGHTEEN OF THIS ARTICLE. § 1321-I. HEARINGS. THE PROCESS USED FOR HEARINGS SHALL BE THE SAME PROCESS ESTABLISHED UNDER SECTION THIRTEEN HUNDRED NINETEEN OF THIS ARTICLE. § 1321-J. SITING EVALUATION. IN DETERMINING WHETHER AN APPLICANT SHALL BE ELIGIBLE FOR A GAMING FACILITY LICENSE, THE BOARD SHALL EVALUATE HOW EACH APPLICANT PROPOSES TO ADVANCE THE FOLLOWING OBJECTIVES WITH CONSID- ERATION GIVEN TO THE DIFFERENCES BETWEEN PROPOSED PROJECTS RELATED TO WHETHER IT IS A CONVERSION OF AN EXISTING VIDEO LOTTERY GAMING FACILITY OR NEW FACILITY CONSTRUCTION, AND THE PROPOSED LOCATION. THE DECISION BY THE BOARD TO SELECT A GAMING FACILITY LICENSE APPLICANT SHALL BE DETERMINED BASED ON THE FOLLOWING FACTORS WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO: (A) REALIZING MAXIMUM CAPITAL INVESTMENT EXCLUSIVE OF LAND ACQUISITION AND INFRASTRUCTURE IMPROVEMENTS; (B) MAXIMIZING REVENUES RECEIVED BY THE STATE AND LOCALITIES; (C) PROVIDING THE HIGHEST NUMBER OF QUALITY JOBS IN THE GAMING FACILI- TY; S. 8009 74 A. 9009 (D) BUILDING A GAMING FACILITY OF THE HIGHEST CALIBER WITH A VARIETY OF QUALITY AMENITIES TO BE INCLUDED AS PART OF THE GAMING FACILITY; (E) OFFERING THE HIGHEST AND BEST VALUE TO PATRONS TO CREATE A SECURE AND ROBUST GAMING MARKET IN THE REGION AND THE STATE; (F) PROVIDING A MARKET ANALYSIS DETAILING THE BENEFITS OF THE SITE LOCATION OF THE GAMING FACILITY AND THE ESTIMATED RECAPTURE RATE OF GAMING-RELATED SPENDING BY RESIDENTS TRAVELLING TO AN OUT-OF-STATE GAMING FACILITY; (G) OFFERING A REASONABLE AND FEASIBLE CONSTRUCTION SCHEDULE TO COMPLETION OF THE FULL GAMING FACILITY; (H) DEMONSTRATING THE ABILITY TO FULLY FINANCE THE GAMING FACILITY; (I) DEMONSTRATING EXPERIENCE IN THE DEVELOPMENT AND OPERATION OF A QUALITY GAMING FACILITY; (J) MITIGATING POTENTIAL IMPACTS ON HOST AND NEARBY MUNICIPALITIES WHICH MIGHT RESULT FROM THE DEVELOPMENT OR OPERATION OF THE GAMING FACILITY; (K) CAREFULLY CONSIDERING LOCAL VIEWS AND CONSULTING WITH APPROPRIATE LOCAL GOVERNMENTS; (L) OPERATING IN PARTNERSHIP WITH AND PROMOTING LOCAL HOTELS, RESTAU- RANTS AND RETAIL FACILITIES SO THAT PATRONS EXPERIENCE THE FULL DIVERSI- FIED REGIONAL TOURISM INDUSTRY; (M) ESTABLISHING A FAIR AND REASONABLE PARTNERSHIP WITH LIVE ENTER- TAINMENT VENUES THAT MAY BE IMPACTED BY A GAMING FACILITY UNDER WHICH THE GAMING FACILITY ACTIVELY SUPPORTS THE MISSION AND THE OPERATION OF THE IMPACTED ENTERTAINMENT VENUES; (N) IMPLEMENTING A WORKFORCE DEVELOPMENT PLAN THAT UTILIZES THE EXIST- ING LABOR FORCE, INCLUDING THE ESTIMATED NUMBER OF CONSTRUCTION JOBS A PROPOSED GAMING FACILITY WILL GENERATE, THE DEVELOPMENT OF WORKFORCE TRAINING PROGRAMS THAT SERVE THE UNEMPLOYED AND METHODS FOR ACCESSING EMPLOYMENT AT THE GAMING FACILITY; (O) TAKING ADDITIONAL MEASURES TO ADDRESS PROBLEM GAMBLING INCLUDING, BUT NOT LIMITED TO, TRAINING OF GAMING EMPLOYEES TO IDENTIFY PATRONS EXHIBITING PROBLEMS WITH GAMBLING; (P) UTILIZING SUSTAINABLE DEVELOPMENT PRINCIPLES INCLUDING, BUT NOT LIMITED TO: (1) HAVING NEW AND RENOVATION CONSTRUCTION CERTIFIED UNDER THE APPRO- PRIATE CERTIFICATION CATEGORY IN THE LEADERSHIP IN ENERGY AND ENVIRON- MENTAL DESIGN GREEN BUILDING RATING SYSTEM CREATED BY THE UNITED STATES GREEN BUILDING COUNCIL; (2) EFFORTS TO MITIGATE VEHICLE TRIPS; (3) EFFORTS TO CONSERVE WATER AND MANAGE STORM WATER; (4) DEMONSTRATING THAT ELECTRICAL AND HVAC EQUIPMENT AND APPLIANCES WILL BE ENERGY STAR LABELED WHERE AVAILABLE; (5) PROCURING OR GENERATING ON-SITE TEN PERCENT OF ITS ANNUAL ELEC- TRICITY CONSUMPTION FROM RENEWABLE SOURCES; AND (6) DEVELOPING AN ONGOING PLAN TO SUBMETER AND MONITOR ALL MAJOR SOURCES OF ENERGY CONSUMPTION AND UNDERTAKE REGULAR EFFORTS TO MAINTAIN AND IMPROVE ENERGY EFFICIENCY OF BUILDINGS IN THEIR SYSTEMS; (Q) ESTABLISHING, FUNDING AND MAINTAINING HUMAN RESOURCE HIRING AND TRAINING PRACTICES THAT PROMOTE THE DEVELOPMENT OF A SKILLED AND DIVERSE WORKFORCE AND ACCESS TO PROMOTION OPPORTUNITIES THROUGH A WORKFORCE TRAINING PROGRAM THAT: (1) ESTABLISHES TRANSPARENT CAREER PATHS WITH MEASURABLE CRITERIA WITHIN THE GAMING FACILITY THAT LEAD TO INCREASED RESPONSIBILITY AND HIGHER PAY GRADES THAT ARE DESIGNED TO ALLOW EMPLOYEES TO PURSUE CAREER ADVANCEMENT AND PROMOTION; S. 8009 75 A. 9009 (2) PROVIDES EMPLOYEE ACCESS TO ADDITIONAL RESOURCES, SUCH AS TUITION REIMBURSEMENT OR STIPEND POLICIES, TO ENABLE EMPLOYEES TO ACQUIRE THE EDUCATION OR JOB TRAINING NEEDED TO ADVANCE CAREER PATHS BASED ON INCREASED RESPONSIBILITY AND PAY GRADES; AND (3) ESTABLISHES AN ON-SITE CHILD DAY CARE PROGRAM; (R) PURCHASING, WHENEVER POSSIBLE, DOMESTICALLY MANUFACTURED SLOT MACHINES FOR INSTALLATION IN THE GAMING FACILITY; (S) IMPLEMENTING A WORKFORCE DEVELOPMENT PLAN THAT: (1) INCORPORATES AN AFFIRMATIVE ACTION PROGRAM OF EQUAL OPPORTUNITY BY WHICH THE APPLICANT GUARANTEES TO PROVIDE EQUAL EMPLOYMENT OPPORTUNITIES TO ALL EMPLOYEES QUALIFIED FOR LICENSURE IN ALL EMPLOYMENT CATEGORIES, INCLUDING PERSONS WITH DISABILITIES; (2) UTILIZES THE EXISTING LABOR FORCE IN THE STATE; (3) ESTIMATES THE NUMBER OF CONSTRUCTION JOBS A GAMING FACILITY WILL GENERATE AND PROVIDES FOR EQUAL EMPLOYMENT OPPORTUNITIES AND WHICH INCLUDES SPECIFIC GOALS FOR THE UTILIZATION OF MINORITIES, WOMEN AND VETERANS ON THOSE CONSTRUCTION JOBS; (4) IDENTIFIES WORKFORCE TRAINING PROGRAMS OFFERED BY THE GAMING FACILITY; AND (5) IDENTIFIES THE METHODS FOR ACCESSING EMPLOYMENT AT THE GAMING FACILITY; AND (T) DEMONSTRATING THAT THE APPLICANT HAS AN AGREEMENT WITH ORGANIZED LABOR, INCLUDING HOSPITALITY SERVICES, AND HAS THE SUPPORT OF ORGANIZED LABOR FOR ITS APPLICATION, WHICH SPECIFIES: (1) THE NUMBER OF EMPLOYEES TO BE EMPLOYED AT THE GAMING FACILITY, INCLUDING DETAILED INFORMATION ON THE PAY RATE AND BENEFITS FOR EMPLOY- EES AND CONTRACTORS IN THE GAMING FACILITY AND ALL INFRASTRUCTURE IMPROVEMENTS RELATED TO THE PROJECT; AND (2) DETAILED PLANS FOR ASSURING LABOR HARMONY DURING ALL PHASES OF THE CONSTRUCTION, RECONSTRUCTION, RENOVATION, DEVELOPMENT AND OPERATION OF THE GAMING FACILITY. § 8. Section 1351 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 1-a to read as follows: 1-A. FOR A GAMING FACILITY LICENSED PURSUANT TO TITLE TWO-A OF THIS ARTICLE, THERE IS HEREBY IMPOSED A TAX ON GROSS GAMING REVENUES WITH THE RATES TO BE DETERMINED BY THE GAMING COMMISSION PURSUANT TO A COMPET- ITIVE BIDDING PROCESS AS OUTLINED IN TITLE TWO-A OF THIS ARTICLE. § 9. This act shall take effect immediately. PART DD Section 1. Section 509-a of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part LLL of chapter 59 of the laws of 2021, is amended to read as follows: § 509-a. Capital acquisition fund. 1. The corporation may create and establish a capital acquisition fund for the purpose of financing the acquisition, construction or equipping of offices, facilities or prem- ises of the corporation. Such capital acquisition fund shall consist of (i) the amounts specified pursuant to subdivision three-a of section five hundred thirty-two of this chapter; and (ii) contributions from the corporation's pari-mutuel wagering pools, subject to the following limi- tations: a. no contribution shall exceed the amount of one percent of the total pari-mutuel wagering pools for the quarter in which the contribution is made; S. 8009 76 A. 9009 b. no contribution shall reduce the amount of quarterly net revenues, exclusive of surcharge revenues, to an amount less than fifty percent of such net revenues; and c. the balance of the fund shall not exceed the lesser of one percent of total pari-mutuel wagering pools for the previous twelve months or the undepreciated value of the corporation's offices, facilities and premises. 2. A. Notwithstanding any other provision of law or regulation to the contrary, FROM APRIL NINETEENTH, TWO THOUSAND TWENTY-ONE TO MARCH THIR- TY-FIRST, TWO THOUSAND TWENTY-TWO, twenty-three percent of the funds, not to exceed two and one-half million dollars, in the Catskill off- track betting corporation's capital acquisition fund and twenty-three percent of the funds, not to exceed four hundred forty thousand dollars, in the Capital off-track betting corporation's capital acquisition fund established pursuant to this section shall also be available to such off-track betting corporation for the purposes of statutory obligations, payroll, and expenditures necessary to accept authorized wagers. B. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-TWO TO MARCH THIR- TY-FIRST, TWO THOUSAND TWENTY-THREE, TWENTY-THREE PERCENT OF THE FUNDS, NOT TO EXCEED FOUR HUNDRED FORTY THOUSAND DOLLARS, IN THE CAPITAL OFF-TRACK BETTING CORPORATION'S CAPITAL ACQUISITION FUND ESTABLISHED PURSUANT TO THIS SECTION SHALL ALSO BE AVAILABLE TO SUCH OFF-TRACK BETTING CORPORATION FOR THE PURPOSES OF STATUTORY OBLIGATIONS, PAYROLL, AND EXPENDITURES NECESSARY TO ACCEPT AUTHORIZED WAGERS. 3. The Catskill off-track betting corporation and the Capital off- track betting corporation shall make a report to the governor, speaker of the assembly, temporary president of the senate and the commission detailing the actual use of the funds made available in the capital acquisition fund. Such report shall include, but not be limited to, any impact on employment levels since utilizing the funds, the status of any statutory obligations, an accounting of the use of such funds, and any other information as deemed necessary by the commission. Such report shall be due no later than the [first day of April two thousand twenty- two] LAST DAY OF THE FISCAL YEAR IN WHICH THE MONIES WERE SPENT. § 2. Section 2 of part LLL of chapter 59 of the laws of 2021 amending the racing, pari-mutuel wagering and breeding law, relating to the utilization of funds in the Catskill and Capital regions off-track betting corporation's capital acquisition funds, is amended to read as follows: § 2. This act shall take effect immediately [and shall expire and be deemed repealed one year after such date]. § 3. This act shall take effect immediately. PART EE Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as S. 8009 77 A. 9009 may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [twenty-two] TWENTY-THREE; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [twenty-two] TWENTY-THREE; and (iv) no in-home simulcasting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [twenty-two] TWENTY-THREE, the amount used S. 8009 78 A. 9009 exclusively for purses to be awarded at races conducted by such receiv- ing track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twenty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [twenty-two] TWENTY-THREE and on any day regard- less of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [twenty-two] TWENTY-THREE. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, each off-track betting corporation branch office and each simul- casting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's repre- sentative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [twenty-two] TWENTY-THREE. This section shall supersede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [twenty-two] TWENTY-THREE. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organization as approved by the commission, one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following S. 8009 79 A. 9009 provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [twenty-one] TWENTY-TWO, when a franchised corporation is conduct- ing a race meeting within the state at Saratoga Race Course, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. § 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: § 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2022] 2023; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. § 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: § 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2022] 2023; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets are presented for payment S. 8009 80 A. 9009 before April first of the year following the year of their purchase, less an amount that shall be established and retained by such franchised corporation of between twelve to seventeen percent of the total deposits in pools resulting from on-track regular bets, and fourteen to twenty- one percent of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five percent of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six percent of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five percent of regular bets and four percent of multiple bets plus twenty percent of the breaks; for exotic wagers seven and one-half percent plus twenty percent of the breaks, and for super exotic bets seven and one-half percent plus fifty percent of the breaks. For the period April first, two thousand one through December thirty- first, two thousand [twenty-two] TWENTY-THREE, such tax on all wagers shall be one and six-tenths percent, plus, in each such period, twenty percent of the breaks. Payment to the New York state thoroughbred breed- ing and development fund by such franchised corporation shall be one- half of one percent of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three percent of super exotic bets and for the period April first, two thousand one through December thirty-first, two thousand [twenty-two] TWENTY-THREE, such payment shall be seven-tenths of one percent of regular, multiple and exotic pools. § 10. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through EE of this act shall be as specifically set forth in the last section of such Parts.
2021-A9009A - Details
- See Senate Version of this Bill:
- S8009
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2021-A9009A - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2022-2023 state fiscal year; accelerates middle class tax cuts (Subpart A); provides for an alternative tax table benefit recapture for certain taxpayers (Subpart B)(Part A); provides an enhanced investment tax credit to farmers (Subpart A)
2021-A9009A - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 8009--A A. 9009--A S E N A T E - A S S E M B L Y January 19, 2022 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to accelerating the middle- class tax cut (Part A); to amend the tax law, in relation to providing an enhanced investment tax credit to farmers (Subpart A); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relat- ing to creating a farm workforce retention credit, in relation to the effectiveness of such credit (Subpart B); and to amend the tax law, in relation to establishing a farm employer overtime credit (Subpart C) (Part B); to amend the tax law and the administrative code of the city of New York, in relation to expanding the small business subtraction modification (Part C); to amend the tax law, in relation to excluding certain loan forgiveness awards from state income tax (Part D); to amend the economic development law and the tax law, in relation to creating the COVID-19 capital costs tax credit program (Part E); to amend the tax law and the state finance law, in relation to extending and expanding the New York city musical and theatrical production tax credit and the purposes of the New York state council on the arts cultural programs fund; and to amend subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to establishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund, in relation to the effectiveness ther- eof (Part F); to amend the tax law, in relation to establishing a permanent rate for the metropolitan transportation business tax surcharge (Part G); to amend the tax law, in relation to extending and modifying the hire a vet credit (Part H); to amend the tax law, in relation to establishing a tax credit for the conversion from grade no. 6 heating oil usage to biodiesel heating oil and geothermal EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted. LBD12674-02-2 S. 8009--A 2 A. 9009--A systems (Part I); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part J); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part K); to amend chapter 604 of the laws of 2011 amending the tax law relating to the credit for companies who provide transporta- tion to people with disabilities, in relation to the effectiveness thereof; and to amend the tax law, in relation to the application of a credit for companies who provide transportation to individuals with disabilities (Part L); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part M); to amend the labor law, in relation to extending the New York youth jobs program tax credit (Part N); to amend the labor law, in relation to extending the empire state apprenticeship tax credit program (Part O); to amend the tax law, in relation to extend- ing the alternative fuels and electric vehicle recharging property credit (Part P); to amend the labor law, in relation to the program period for the workers with disabilities tax credit program; and to amend part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabili- ties tax credit program, in relation to the effectiveness thereof (Part Q); to amend the tax law, in relation to making changes conform- ing to the federal taxation of S corporations; and to repeal certain provisions of such law relating thereto (Part R); to amend the tax law, in relation to the investment tax credit (Part S); to amend the tax law, in relation to exempting certain fuels used by tugboats and towboats from the petroleum business tax (Part T); to amend the tax law, in relation to the authority of counties to impose sales and compensating use taxes; and to repeal certain provisions of such law relating thereto (Part U); to amend the tax law, in relation to requiring vacation rental marketplace providers collect sales tax (Part V); to amend the tax law in relation to requiring publication of changes in withholding tables and interest rates (Part W); to amend the tax law, in relation to expanding the definition of financial institution under the financial institution data match program (Part X); to amend the real property tax law and chapter 475 of the laws of 2013, relating to assessment ceilings for local public utility mass real property, in relation to extending the assessment ceiling for local public utility mass real property to January 1, 2027 (Part Y); to amend the real property tax law, in relation to good cause refunds for the STAR program (Subpart A); to amend the real property tax law, in relation to moving up the deadline for taxpayers to switch from the STAR exemption to the STAR credit (Subpart B); to amend the tax law, in relation to clarifying the applicable income tax year for the basic STAR credit (Subpart C); to amend the tax law, in relation to allowing names of STAR credit recipients to be shared with assessors outside of New York state (Subpart D); and to amend the tax law and the real property tax law, in relation to allowing decedent reports to be given to assessors and improving the tax enforcement process as it relates to decedents (Subpart E) (Part Z); to amend the real property tax law, in relation to the grievance process with respect to the valuation of solar and wind energy systems (Part AA); to amend the tax law, in relation to establishing a homeowner tax rebate credit (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to gaming facility determinations and licensing (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to S. 8009--A 3 A. 9009--A the utilization of funds in the Catskill and Capital regions off- track betting corporation's capital acquisition funds; and to amend chapter 59 of the laws of 2021 amending the racing, pari-mutuel wager- ing and breeding law, relating to the utilization of funds in the Catskill and Capital regions off-track betting corporation's capital acquisition funds, in relation to the effectiveness thereof (Part DD); and to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting; to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part EE) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2022-2023 state fiscal year. Each component is wholly contained within a Part identified as Parts A through EE. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes a reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, clauses (vi), (vii) and (viii) as amended and clause (ix) as added by section 1 of part A of chapter 59 of the laws of 2021, are amended to read as follows: (vi) For taxable years beginning in two thousand twenty-three AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: [If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 but not over $18,834 plus 6.85% of $2,155,350 excess over $323,200 S. 8009--A 4 A. 9009--A Over $2,155,350 but not over $144,336 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,845 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,478,845 plus 10.90% of excess over $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 but not over $18,544 plus 6.85% of excess over $2,155,350 $323,200 Over $2,155,350 but not over $144,047 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,555 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,478,555 plus 10.90% of excess over $25,000,000 (viii) For taxable years beginning after two thousand twenty-four and before two thousand twenty-eight the following rates shall apply:] If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 but not over $18,252 plus 6.85% of excess over $2,155,350 $323,200 Over $2,155,350 but not over $143,754 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,263 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,478,263 plus 10.90% of excess over $25,000,000 [(ix)](VII) For taxable years beginning after two thousand twenty-sev- en the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over S. 8009--A 5 A. 9009--A $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 but not over $18,252 plus 6.85% of excess $2,155,350 over $323,200 Over $2,155,350 $143,754 plus 8.82% of excess over $2,155,350 § 2. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of para- graph 1 of subsection (b) of section 601 of the tax law, clauses (vi), (vii) and (viii) as amended and clause (ix) as added by section 2 of part A of chapter 59 of the laws of 2021, are amended to read as follows: (vi) For taxable years beginning in two thousand twenty-three AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: [If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 but not over $15,845 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 but not over $108,125 plus 9.65% of excess over $5,000,000 $1,616,450 Over $5,000,000 but not over $434,638 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,638 plus 10.90% of excess over $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 but not over $15,612 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 but not over $107,892 plus 9.65% of excess over $5,000,000 $1,616,450 Over $5,000,000 but not over $434,404 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,404 plus 10.90% of excess over $25,000,000 (viii) For taxable years beginning after two thousand twenty-four and before two thousand twenty-eight the following rates shall apply:] S. 8009--A 6 A. 9009--A If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over $20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over $107,650 Over $269,300 but not over $15,371 plus 6.85% of excess over $1,616,450 $269,300 Over $1,616,450 but not over $107,651 plus 9.65% of excess over $5,000,000 $1,616,450 Over $5,000,000 but not over $434,163 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,163 plus 10.90% of excess over $25,000,000 [(ix)](VII) For taxable years beginning after two thousand twenty-sev- en the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $512 plus 4.5% of excess over $17,650 $12,800 Over $17,650 but not over $730 plus 5.25% of excess over $20,900 $17,650 Over $20,900 but not over $901 plus 5.5% of excess over $107,650 $20,900 Over $107,650 but not over $5,672 plus 6.00% of excess $269,300 over $107,650 Over $269,300 but not over $15,371 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $107,651 plus 8.82% of excess over $1,616,450 § 3. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of para- graph 1 of subsection (c) of section 601 of the tax law, clauses (vi), (vii) and (viii) as amended, and clause (ix) as added by section 3 of part A of chapter 59 of the laws of 2021, are amended to read as follows: (vi) For taxable years beginning in two thousand twenty-three AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: [If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 but not over $12,738 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 but not over $71,796 plus 9.65% of excess over S. 8009--A 7 A. 9009--A $5,000,000 $1,077,550 Over $5,000,000 but not over $450,312 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,510,312 plus 10.90% of excess over $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 but not over $12,550 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 but not over $71,608 plus 9.65% of excess over $5,000,000 $1,077,550 Over $5,000,000 but not over $450,124 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,510,124 plus 10.90% of excess over $25,000,000 (viii) For taxable years beginning after two thousand twenty-four and before two thousand twenty-eight the following rates shall apply:] If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 but not over $12,356 plus 6.85% of excess over $1,077,550 $215,400 Over $1,077,550 but not over $71,413 plus 9.65% of excess over $5,000,000 $1,077,550 Over $5,000,000 but not over $449,929 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,509,929 plus 10.90% of excess over $25,000,000 [(ix)](VII) For taxable years beginning after two thousand twenty-sev- en the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess S. 8009--A 8 A. 9009--A over $80,650 Over $215,400 but not over $12,356 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,413 plus 8.82% of excess over $1,077,550 § 4. This act shall take effect immediately. PART B Section 1. This act enacts into law components of legislation relating to certain tax credits. Each component is wholly contained within a Subpart identified as Subparts A through C. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this act sets forth the general effective date of this act. SUBPART A Section 1. Subdivision 1 of section 210-B of the tax law is amended by adding a new paragraph (a-1) to read as follows: (A-1) FOR A TAXPAYER THAT IS AN ELIGIBLE FARMER, AS DEFINED IN SUBDI- VISION ELEVEN OF THIS SECTION, THE PERCENTAGE TO BE USED TO COMPUTE THE CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL BE TWENTY PERCENT FOR PROP- ERTY DESCRIBED IN SUBPARAGRAPH (I) OF PARAGRAPH (B) OF THIS SUBDIVISION THAT IS PRINCIPALLY USED BY THE TAXPAYER IN THE PRODUCTION OF GOODS BY FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE OR VITICULTURE. § 2. Subsection (a) of section 606 of the tax law is amended by adding a new paragraph 1-a to read as follows: (1-A) FOR A TAXPAYER THAT IS AN ELIGIBLE FARMER, AS DEFINED IN SUBSECTION (N) OF THIS SECTION, THE PERCENTAGE TO BE USED TO COMPUTE THE CREDIT ALLOWED UNDER THIS SUBSECTION SHALL BE TWENTY PERCENT FOR PROPER- TY DESCRIBED IN SUBPARAGRAPH (A) OF PARAGRAPH TWO OF THIS SUBSECTION THAT IS PRINCIPALLY USED BY THE TAXPAYER IN THE PRODUCTION OF GOODS BY FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE OR VITICULTURE. § 3. This act shall take effect immediately and apply to property placed in service on or after April 1, 2022. SUBPART B Section 1. Subsection (e) of section 42 of the tax law, as amended by section 1 of part FF of chapter 59 of the laws of 2021, is amended to read as follows: (e) For taxable years beginning on or after January first, two thou- sand seventeen and before January first, two thousand eighteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and two hundred fifty dollars. For taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and three hundred dollars. For taxable years beginning on or after January first, S. 8009--A 9 A. 9009--A two thousand nineteen and before January first, two thousand twenty, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and five hundred dollars. For taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and four hundred dollars. For taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand [twenty-five] TWENTY-SIX, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and [six] TWELVE hundred dollars. § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, as amended by section 2 of part FF of chapter 59 of the laws of 2021, is amended to read as follows: § 5. This act shall take effect immediately and shall apply only to taxable years beginning on or after January 1, 2017 and before January 1, [2025] 2026. § 3. This act shall take effect immediately. SUBPART C Section 1. Subdivision (f) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (f) A taxpayer claiming the credit allowed under this section shall not be allowed to claim any other tax credit allowed under this chapter, EXCEPT THE CREDIT ALLOWED UNDER SECTION FORTY-TWO-A OF THIS ARTICLE, with respect to any eligible farm employee included in the total number of eligible farm employees used to determine the amount of the credit allowed under this section. § 2. The tax law is amended by adding a new section 42-a to read as follows: § 42-A. FARM EMPLOYER OVERTIME CREDIT. (A) NOTWITHSTANDING SUBDIVISION (F) OF SECTION FORTY-TWO OF THIS ARTICLE, A TAXPAYER THAT IS A FARM EMPLOYER OR AN OWNER OF A FARM EMPLOYER SHALL BE ELIGIBLE FOR A CREDIT AGAINST THE TAX IMPOSED UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP- TER, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (H) OF THIS SECTION. (B) A FARM EMPLOYER IS A CORPORATION (INCLUDING A NEW YORK S CORPO- RATION), A SOLE PROPRIETORSHIP, A LIMITED LIABILITY COMPANY OR A PART- NERSHIP THAT IS AN ELIGIBLE FARMER. (C) FOR PURPOSES OF THIS SECTION, THE TERM "ELIGIBLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING AS DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER FOR THE TAXA- BLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT OF FEDERAL GROSS INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR IN EXCESS OF THIRTY THOUSAND DOLLARS. FOR PURPOSES OF THIS SECTION, PAYMENTS FROM THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM FARMING FOR OTHERWISE ELIGIBLE FARMERS. (D) AN ELIGIBLE FARM EMPLOYEE IS AN INDIVIDUAL WHO MEETS THE DEFI- NITION OF A "FARM LABORER" UNDER SECTION TWO OF THE LABOR LAW WHO IS S. 8009--A 10 A. 9009--A EMPLOYED BY A FARM EMPLOYER IN NEW YORK STATE, BUT EXCLUDING GENERAL EXECUTIVE OFFICERS OF THE FARM EMPLOYER. (E) ELIGIBLE OVERTIME IS THE AGGREGATE NUMBER OF HOURS OF WORK PERFORMED DURING THE TAXABLE YEAR BY AN ELIGIBLE FARM EMPLOYEE THAT IN ANY CALENDAR WEEK EXCEEDS THE OVERTIME WORK THRESHOLD SET BY THE COMMIS- SIONER OF LABOR PURSUANT TO THE RECOMMENDATION OF THE FARM LABORERS WAGE BOARD, PROVIDED THAT WORK PERFORMED IN SUCH CALENDAR WEEK IN EXCESS OF SIXTY HOURS SHALL NOT BE INCLUDED. (F) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM- ER'S FEDERAL GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE FROM A LICENSED FARM WINERY AS PROVIDED FOR IN ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW, OR FROM THE SALE OF CIDER FROM A LICENSED FARM CIDERY AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVER- AGE CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE FARMER SHALL BE INCLUDED FOR PURPOSES OF CALCULATING THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION ONLY IF SUCH ELIGIBLE FARM EMPLOYEE IS EMPLOYED BY SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL PROPERTY AS DEFINED IN PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. (G) THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE AGGREGATE AMOUNT OF SUCH CREDIT ALLOWED PER ELIGIBLE FARM EMPLOY- EE, AS FOLLOWS. THE AMOUNT OF THE CREDIT ALLOWED PER ELIGIBLE FARM EMPLOYEE SHALL BE EQUAL TO THE PRODUCT OF (I) THE ELIGIBLE OVERTIME WORKED DURING THE TAXABLE YEAR BY THE ELIGIBLE FARM EMPLOYEE AND (II) THE OVERTIME RATE PAID BY THE FARM EMPLOYER TO THE ELIGIBLE FARM EMPLOY- EE LESS SUCH EMPLOYEE'S REGULAR RATE OF PAY. (H) CROSS REFERENCES: FOR APPLICATION OF THE CREDIT PROVIDED IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58. (2) ARTICLE 22: SECTION 606, SUBSECTION (NNN). § 3. Section 210-B of the tax law is amended by adding a new subdivi- sion 58 to read as follows: 58. FARM EMPLOYER OVERTIME CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAY- ER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO-A OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) FARM EMPLOYER OVERTIME AMOUNT OF CREDIT UNDER CREDIT UNDER SUBSECTION (NNN) SUBDIVISION FIFTY-EIGHT OF SECTION TWO HUNDRED TEN-B § 5. Section 606 of the tax law is amended by adding a new subsection (nnn) to read as follows: S. 8009--A 11 A. 9009--A (NNN) FARM EMPLOYER OVERTIME CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO-A OF THIS CHAP- TER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED IN ACCORDANCE WITH THE PROVISION OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. § 6. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. § 2. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through C of this act shall be as specifically set forth in the last section of such Subparts. PART C Section 1. Paragraph 39 of subsection (c) of section 612 of the tax law, as added by section 1 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (39) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of GREATER THAN ZERO BUT less than two hundred fifty thousand dollars; (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NET FARM INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS; OR (III) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE; AND (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR S. 8009--A 12 A. 9009--A DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA- BLE YEAR. (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- NIES, PARTNERSHIPS, OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. § 2. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- istrative code of the city of New York, as added by section 2 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (35) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of GREATER THAN ZERO BUT less than two hundred fifty thousand dollars; (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NET FARM INCOME THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS; OR (III) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OR PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THE TAX LAW, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THE TAX LAW FOR THE TAXA- BLE YEAR. (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- NIES, PARTNERSHIPS, OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. S. 8009--A 13 A. 9009--A § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART D Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 46 to read as follows: (46) THE AMOUNT OF ANY STUDENT LOAN FORGIVENESS AWARD MADE PURSUANT TO A PROGRAM ESTABLISHED UNDER ARTICLE FOURTEEN OF THE EDUCATION LAW TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME. § 2. This act shall take effect immediately and shall apply to tax years beginning on or after January 1, 2022. PART E Section 1. The economic development law is amended by adding a new article 26 to read as follows: ARTICLE 26 COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM SECTION 480. SHORT TITLE. 481. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. 482. DEFINITIONS. 483. ELIGIBILITY CRITERIA. 484. APPLICATION AND APPROVAL PROCESS. 485. COVID-19 CAPITAL COSTS TAX CREDIT. 486. POWERS AND DUTIES OF THE COMMISSIONER. 487. MAINTENANCE OF RECORDS. 488. CAP ON TAX CREDIT. § 480. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM ACT". § 481. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS HEREBY FOUND AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF PUBLIC POLICY, TO PROVIDE CRITICAL ASSISTANCE TO SMALL BUSINESSES TO COMPLY WITH PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS, AND TO TAKE INFECTIOUS DISEASE MITIGATION MEASURES RELATED TO THE COVID-19 PANDEMIC. THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM IS CREATED TO PROVIDE FINANCIAL ASSISTANCE TO ECONOMICALLY HARMED BUSINESSES TO OFFER RELIEF AND REDUCE THE DURATION AND SEVERITY OF THE CURRENT ECONOMIC DIFFICUL- TIES. § 482. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE: 1. "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A BUSINESS ENTITY BY THE DEPARTMENT AFTER THE DEPARTMENT HAS VERIFIED THAT THE BUSINESS ENTITY HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE. THE CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF THE TAX CRED- IT UNDER THIS ARTICLE THAT A BUSINESS ENTITY MAY CLAIM, PURSUANT TO SECTION FOUR HUNDRED EIGHTY-FIVE OF THIS ARTICLE. 2. "COMMISSIONER" SHALL MEAN COMMISSIONER OF THE DEPARTMENT OF ECONOM- IC DEVELOPMENT. 3. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF ECONOMIC DEVELOPMENT. 4. "QUALIFIED COVID-19 CAPITAL COSTS" SHALL MEAN COSTS INCURRED FROM JANUARY FIRST, TWO THOUSAND TWENTY-ONE THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO AT A BUSINESS LOCATION IN NEW YORK STATE TO COMPLY WITH PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS RELATED TO THE COVID-19 PANDEMIC, OR TO GENERALLY INCREASE SAFETY THROUGH INFECTIOUS DISEASE MITIGATION, INCLUDING COSTS FOR: (I) SUPPLIES TO DISINFECT AND/OR PROTECT AGAINST COVID-19 TRANSMISSION; (II) RESTOCK- S. 8009--A 14 A. 9009--A ING OF PERISHABLE GOODS TO REPLACE THOSE LOST DURING THE COVID-19 PANDEMIC; (III) PHYSICAL BARRIERS AND SNEEZE GUARDS; (IV) HAND SANITIZER STATIONS; (V) RESPIRATORY DEVICES SUCH AS AIR PURIFIER SYSTEMS INSTALLED AT THE BUSINESS ENTITY'S LOCATION; (VI) SIGNAGE RELATED TO THE COVID-19 PANDEMIC INCLUDING, BUT NOT LIMITED TO, SIGNAGE DETAILING VACCINE AND MASKING REQUIREMENTS, AND SOCIAL DISTANCING; (VII) MATERIALS REQUIRED TO DEFINE AND/OR PROTECT SPACE SUCH AS BARRIERS; (VIII) MATERIALS NEEDED TO BLOCK OFF CERTAIN SEATS TO ALLOW FOR SOCIAL DISTANCING; (IX) CERTAIN POINT OF SALE PAYMENT EQUIPMENT TO ALLOW FOR CONTACTLESS PAYMENT; (X) EQUIPMENT AND/OR MATERIALS AND SUPPLIES FOR NEW PRODUCT LINES IN RESPONSE TO THE COVID-19 PANDEMIC; (XI) SOFTWARE FOR ONLINE PAYMENT PLATFORMS TO ENABLE DELIVERY OR CONTACTLESS PURCHASES; (XII) BUILDING CONSTRUCTION AND RETROFITS TO ACCOMMODATE SOCIAL DISTANCING AND INSTAL- LATION OF AIR PURIFYING EQUIPMENT BUT NOT FOR COSTS FOR NON-COVID-19 PANDEMIC RELATED CAPITAL RENOVATIONS OR GENERAL "CLOSED FOR RENOVATIONS" UPGRADES; (XIII) MACHINERY AND EQUIPMENT TO ACCOMMODATE CONTACTLESS SALES; (XIV) MATERIALS TO ACCOMMODATE INCREASED OUTDOOR ACTIVITY SUCH AS HEAT LAMPS, OUTDOOR LIGHTING, AND MATERIALS RELATED TO OUTDOOR SPACE EXPANSIONS; AND (XV) OTHER COSTS AS DETERMINED BY THE DEPARTMENT TO BE ELIGIBLE UNDER THIS SECTION; PROVIDED, HOWEVER, THAT "QUALIFIED COVID-19 CAPITAL COSTS" DO NOT INCLUDE ANY COST PAID FOR WITH OTHER COVID-19 GRANT FUNDS AS DETERMINED BY THE COMMISSIONER. § 483. ELIGIBILITY CRITERIA. 1. TO BE ELIGIBLE FOR A TAX CREDIT UNDER THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM, A BUSINESS ENTITY MUST: (A) BE A SMALL BUSINESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THIS CHAPTER AND HAVE TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OR LESS OF GROSS RECEIPTS IN THE TAXABLE YEAR THAT INCLUDES DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-ONE; AND (B) OPERATE A BUSINESS LOCATION IN NEW YORK STATE. 2. A BUSINESS ENTITY MUST BE IN SUBSTANTIAL COMPLIANCE WITH ANY PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS RELATED TO THE ENTITY'S BUSINESS SECTOR OR OTHER LAWS AND REGULATIONS AS DETERMINED BY THE COMMISSIONER. IN ADDITION, A BUSINESS ENTITY MAY NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED BINDING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY. § 484. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER. 2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES AND A TIMEFRAME FOR BUSINESS ENTITIES TO SUBMIT APPLICATIONS. AS PART OF THE APPLICATION, EACH BUSINESS ENTITY MUST: (A) PROVIDE EVIDENCE IN A FORM AND MANNER PRESCRIBED BY THE COMMIS- SIONER OF THEIR BUSINESS ELIGIBILITY; (B) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE BUSINESS ENTITY'S TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS PROGRAM SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW; (C) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE; (D) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT IS IN SUBSTANTIAL COMPLIANCE WITH ALL EMERGENCY ORDERS OR PUBLIC HEALTH REGULATIONS CURRENTLY REQUIRED OF SUCH ENTITY, AND LOCAL, AND STATE TAX LAWS; (E) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT DID NOT INCLUDE ANY COST PAID FOR WITH OTHER COVID-19 GRANT FUNDS AS DETERMINED BY THE COMMISSIONER IN ITS APPLICATION FOR A TAX CREDIT UNDER THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM; AND S. 8009--A 15 A. 9009--A (F) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE DEPARTMENT RELEVANT TO THIS ARTICLE. 3. AFTER REVIEWING A BUSINESS ENTITY'S COMPLETED FINAL APPLICATION AND DETERMINING THAT THE BUSINESS ENTITY MEETS THE ELIGIBILITY CRITERIA AS SET FORTH IN THIS ARTICLE, THE DEPARTMENT MAY ISSUE TO THAT BUSINESS ENTITY A CERTIFICATE OF TAX CREDIT. 4. THE BUSINESS ENTITY MUST SUBMIT ITS APPLICATION BY MARCH THIRTY- FIRST, TWO THOUSAND TWENTY-THREE. § 485. COVID-19 CAPITAL COSTS TAX CREDIT. 1. A BUSINESS ENTITY IN THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SECTION FOUR HUNDRED EIGHTY-THREE OF THIS ARTICLE MAY BE ELIGIBLE TO CLAIM A CREDIT EQUAL TO FIFTY PERCENT OF ITS QUALIFIED COVID-19 CAPITAL COSTS AS DEFINED IN SUBDIVISION FOUR OF SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE. 2. A BUSINESS ENTITY, INCLUDING A PARTNERSHIP, LIMITED LIABILITY COMPANY AND SUBCHAPTER S CORPORATION, MAY NOT RECEIVE IN EXCESS OF TWEN- TY-FIVE THOUSAND DOLLARS UNDER THIS PROGRAM. 3. THE CREDIT SHALL BE ALLOWED AS PROVIDED IN SECTION FORTY-SEVEN, SUBDIVISION FIFTY-EIGHT OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (NNN) OF SECTION SIX HUNDRED SIX OF THE TAX LAW. 4. A BUSINESS ENTITY MAY CLAIM THE TAX CREDIT IN THE TAXABLE YEAR THAT INCLUDES THE DATE THE CERTIFICATE OF TAX CREDIT WAS ISSUED BY THE DEPARTMENT PURSUANT TO SUBDIVISION THREE OF SECTION FOUR HUNDRED EIGHT- Y-FOUR OF THIS ARTICLE. § 486. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER MAY PROMULGATE REGULATIONS ESTABLISHING AN APPLICATION PROCESS AND ELIGIBIL- ITY CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES OF THIS ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-EIGHT OF THIS ARTICLE WHICH, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS. 2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE ISSUED BY THE COMMISSIONER TO ELIGIBLE BUSINESSES. SUCH CERTIFICATE SHALL CONTAIN SUCH INFORMATION AS REQUIRED BY THE DEPARTMENT OF TAXATION AND FINANCE. 3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY BUSI- NESS ENTITY FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-THREE OF THIS ARTICLE, OR FOR FAILING TO MEET THE REQUIREMENTS SET FORTH IN SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-FOUR OF THIS ARTICLE. § 487. MAINTENANCE OF RECORDS. EACH BUSINESS ENTITY PARTICIPATING IN THE PROGRAM SHALL KEEP ALL RELEVANT RECORDS FOR THEIR DURATION OF PROGRAM PARTICIPATION FOR AT LEAST THREE YEARS. § 488. CAP ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE MAY NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS. § 2. The tax law is amended by adding a new section 47 to read as follows: § 47. COVID-19 CAPITAL COSTS TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP- TER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (F) OF THIS SECTION. THE AMOUNT OF THE CREDIT IS EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SECTION FOUR HUNDRED EIGHTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW. NO COST OR EXPENSE S. 8009--A 16 A. 9009--A PAID OR INCURRED BY THE TAXPAYER WHICH IS INCLUDED AS PART OF THE CALCU- LATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT ALLOWED UNDER THIS CHAPTER. (B) ELIGIBILITY. TO BE ELIGIBLE FOR THE COVID-19 CAPITAL COSTS TAX CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF TAX CREDIT BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO SUBDIVISION THREE OF SECTION FOUR HUNDRED EIGHTY-FOUR OF THE ECONOMIC DEVELOPMENT LAW, WHICH CERTIFICATE SHALL SET FORTH THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED FOR THE TAXABLE YEAR. THE TAXPAYER SHALL BE ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT FOR THAT TAXABLE YEAR. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER S CORPORATION THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION. (C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT. (D) INFORMATION SHARING. NOTWITHSTANDING ANY PROVISION OF THIS CHAP- TER, EMPLOYEES OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPART- MENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE: (1) INFORMATION DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT TO A TAXPAYER'S ELIGIBILITY TO PARTICIPATE IN THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM; (2) INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED OR CLAIMED PURSUANT TO THIS SECTION AND TAXPAYERS THAT ARE APPLYING FOR THE CREDIT OR THAT ARE CLAIMING THE CREDIT; AND (3) INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM FORMS SUBMITTED TO THE DEPARTMENT AND APPLICATIONS FOR ADMISSION INTO THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM. EXCEPT AS PROVIDED IN PARA- GRAPH TWO OF THIS SUBDIVISION, ALL INFORMATION EXCHANGED BETWEEN THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT SHALL NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFOR- MATION LAW. (E) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER ARTICLE TWENTY-SIX OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH DEPARTMENT, THE AMOUNT OF CREDIT DESCRIBED IN THIS SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL. (F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58; (2) ARTICLE 22: SECTION 606, SUBSECTION (NNN). § 3. Section 210-B of the tax law is amended by adding a new subdivi- sion 58 to read as follows: 58. COVID-19 CAPITAL COSTS TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX S. 8009--A 17 A. 9009--A TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON. § 4. Section 606 of the tax law is amended by adding a new subsection (nnn) to read as follows: (NNN) COVID-19 CAPITAL COSTS TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) COVID-19 CAPITAL COSTS AMOUNT OF CREDIT UNDER TAX CREDIT UNDER SUBSECTION (NNN) SUBDIVISION 58 OF SECTION TWO HUNDRED TEN-B § 6. This act shall take effect immediately. PART F Section 1. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (2) The amount of the credit shall be the product (or pro rata share of the product, in the case of a member of a partnership) of twenty-five percent and the sum of the qualified production expenditures paid for during the qualified New York city musical and theatrical production's credit period. Provided however that the amount of the credit cannot exceed three million dollars per qualified New York city musical and theatrical production for productions whose first performance is [during the first year in which applications are accepted] PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-THREE. For productions whose first perform- ance is [during the second year in which applications are accepted] ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, such cap shall decrease to one million five hundred thousand dollars per qualified New York city musical and theatrical production unless the New York city tourism economy has not sufficiently recovered, as determined by the department of economic development in consultation with the division of the budget. In determining whether the New York city tourism economy has sufficiently recovered, the department of economic development will perform an analysis of key New York city economic indicators which shall include, but not be limited to, hotel occupancy rates and travel metrics. The department of economic development's analysis shall also be informed by the status of any remaining COVID-19 restrictions affecting New York city musical and theatrical productions. In no event shall a qualified New York city musical and theatrical production be eligible for more than one credit under this program. S. 8009--A 18 A. 9009--A § 2. Subparagraph (i) of paragraph 5 of subdivision (b) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (i) "The credit period of a qualified New York city musical and theat- rical production company" is the period starting on the production start date and ending on the earlier of the date the qualified musical and theatrical production has expended sufficient qualified production expenditures to reach its credit cap, [March thirty-first] SEPTEMBER THIRTIETH, two thousand twenty-three or the date the qualified musical and theatrical production closes. § 3. Paragraph 1 of subdivision (f) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (1) The aggregate amount of tax credits allowed under this section, subdivision fifty-seven of section two hundred ten-B and subsection (mmm) of section six hundred six of this chapter shall be [one] TWO hundred million dollars. Such aggregate amount of credits shall be allo- cated by the department of economic development among taxpayers based on the date of first performance of the qualified musical and theatrical production. § 4. Paragraph 2 of subdivision (f) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (2) The commissioner of economic development, after consulting with the commissioner, shall promulgate regulations to establish procedures for the allocation of tax credits as required by this section. Such rules and regulations shall include provisions describing the applica- tion process, the due dates for such applications, the standards that will be used to evaluate the applications, the documentation that will be provided by applicants to substantiate to the department the amount of qualified production expenditures of such applicants, and such other provisions as deemed necessary and appropriate. Notwithstanding any other provisions to the contrary in the state administrative procedure act, such rules and regulations may be adopted on an emergency basis. In no event shall a qualified New York city musical and theatrical production submit an application for this program after [December thir- ty-first, two thousand twenty-two] JUNE THIRTIETH, TWO THOUSAND TWENTY- THREE. § 5. Subdivision (g) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (g) Any qualified New York city musical and theatrical production company that performs in a qualified New York city production facility and applies to receive a credit under this section shall be required to: (1) participate in a New York state diversity and arts job training program; (2) create and implement a plan to ensure that their production is available and accessible for low-or no-cost to low income New York- ers; and (3) contribute to the New York state council on the arts, cultural program fund an amount up to fifty percent of the total credits received if its production earns ongoing revenue prospectively after the end of the credit period that is at least equal to two hundred percent of its ongoing production costs, with such amount payable from twenty- five percent of net operating profits, such amounts payable on a monthly basis, up until such fifty percent of the total credit amount is reached. Any funds deposited pursuant to this subdivision may be used S. 8009--A 19 A. 9009--A for arts and cultural [educational and workforce development] GRANT programs OF THE NEW YORK STATE COUNCIL ON THE ARTS. § 6. Subdivision 5 of section 99-ll of the state finance law, as added by section 5 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: 5. The moneys in such fund shall be expended for the purpose of supplementing art and cultural GRANT programs [for secondary and elemen- tary children, including programs that increase access to art and cultural programs and events for children in underserved communities] OF THE NEW YORK STATE COUNCIL ON THE ARTS. § 7. Section 6 of subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to estab- lishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund, is amended to read as follows: § 6. This act shall take effect immediately [and]; PROVIDED HOWEVER, THAT SECTION ONE, TWO, THREE AND FOUR OF THIS ACT shall apply to taxable years beginning on or after January 1, 2021, and before January 1, 2024 and shall expire and be deemed repealed [on] January 1, 2024; provided FURTHER, however that the obligations under paragraph 3 of subdivision [g] (G) of section 24-c of the tax law, as added by section one of this act, shall remain in effect until December 31, 2025. § 8. This act shall take effect immediately; provided that the amend- ments to section 24-c of the tax law made by sections one, two, three, four and five of this act shall not affect the repeal of such section and shall be deemed repealed therewith. PART G Section 1. Paragraphs (a) and (f) of subdivision 1 of section 209-b of the tax law, paragraph (a) as amended and paragraph (f) as added by section 7 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) For the privilege of exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing proper- ty in a corporate or organized capacity, or of maintaining an office, or of deriving receipts from activity in the metropolitan commuter trans- portation district, for all or any part of its taxable year, there is hereby imposed on every corporation, other than a New York S corpo- ration, subject to tax under section two hundred nine of this article, or any receiver, referee, trustee, assignee or other fiduciary, or any officer or agent appointed by any court, who conducts the business of any such corporation, a tax surcharge, in addition to the tax imposed under section two hundred nine of this article, to be computed at the rate of seventeen percent of the tax imposed under such section for such taxable years or any part of such taxable years ending on or after December thirty-first, nineteen hundred eighty-three and before January first, two thousand fifteen after the deduction of any credits otherwise allowable under this article, at the rate of twenty-five and six-tenths percent of the tax imposed under such section for taxable years begin- ning on or after January first, two thousand fifteen and before January first, two thousand sixteen before the deduction of any credits other- wise allowable under this article, [and] at the rate determined by the commissioner pursuant to paragraph (f) of this subdivision of the tax imposed under such section, for taxable years beginning on or after January first, two thousand sixteen AND BEFORE JANUARY FIRST, TWO THOU- S. 8009--A 20 A. 9009--A SAND TWENTY-THREE before the deduction of any credits otherwise allow- able under this article, AND AT THE RATE OF THIRTY PERCENT OF THE TAX IMPOSED UNDER SUCH SECTION FOR TAXABLE YEARS BEGINNING ON OR AFTER JANU- ARY FIRST, TWO THOUSAND TWENTY-THREE BEFORE THE DEDUCTION OF ANY CREDITS OTHERWISE ALLOWABLE UNDER THIS ARTICLE. However, such rate of tax surcharge shall be applied only to that portion of the tax imposed under section two hundred nine of this article before the deduction of any credits otherwise allowable under this article which is attributable to the taxpayer's business activity carried on within the metropolitan commuter transportation district; and provided, further, the surcharge computed on a combined report shall include a surcharge on the fixed dollar minimum tax for each member of the combined group subject to the surcharge under this subdivision. (f) The commissioner shall determine the rate of tax for taxable years beginning on or after January first, two thousand sixteen AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE by adjusting the rate for taxa- ble years beginning on or after January first, two thousand fifteen and before January first, two thousand sixteen as necessary to ensure that the receipts attributable to such surcharge, as impacted by the chapter of the laws of two thousand fourteen which added this paragraph, will meet and not exceed the financial projections for state fiscal year two thousand sixteen-two thousand seventeen, as reflected in state fiscal year two thousand fifteen-two thousand sixteen enacted budget. The commissioner shall annually determine the rate thereafter using the financial projections for the state fiscal year that commences in the year for which the rate is to be set as reflected in the enacted budget for the fiscal year commencing on the previous April first. § 2. This act shall take effect immediately. PART H Section 1. Paragraphs (a), (b) and (d) of subdivision 29 of section 210-B of the tax law, paragraph (a) and subparagraph 2 of paragraph (b) as amended by section 1 of part II of chapter 59 of the laws of 2021, paragraph (b) as amended by section 1 of part Q of chapter 59 of the laws of 2018, subparagraph 1 of paragraph (b) as amended by chapter 490 of the laws of 2019 and paragraph (d) as added by section 17 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-three] TWENTY-SIX, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than [one year and for not less than thirty-five hours each week] TWELVE CONTINUOUS AND UNINTERRUPTED MONTHS (HEREINAFTER REFERRED TO AS THE TWELVE-MONTH PERI- OD) IN A FULL-TIME OR PART-TIME POSITION, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qual- ified veteran completes [one year] THE TWELVE-MONTH PERIOD of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, SPACE FORCE, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a S. 8009--A 21 A. 9009--A member of the army national guard, air national guard, New York guard or New York naval militia; who (i) was released from active duty by general or honorable discharge [after September eleventh, two thousand one], or (ii) has a qualifying condition, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one], or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one]; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [twenty-two] TWENTY-FIVE; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. (d) Amount of credit. The amount of the credit shall be [ten] FIFTEEN percent of the total amount of wages paid to the qualified veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employ- ment. Provided, however, that[, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be fifteen percent of the total amount of wages paid to the qualified veteran during the veteran's first full year of employment. The] THE credit allowed pursuant to this subdivision shall not exceed in any taxable year, [five] FIFTEEN thousand dollars for any qualified veteran EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD and [fifteen thousand dollars for any qualified veteran who is a disabled veteran] SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED VETERAN EMPLOYED IN A PART-TIME POSI- TION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOU- SAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD. § 2. Paragraphs 1, 2 and 4 of subsection (a-2) of section 606 of the tax law, paragraph 1 and subparagraph (B) of paragraph 2 as amended by section 2 of part II of chapter 59 of the laws of 2021, paragraph 2 as amended by section 2 of part Q of chapter 59 of the laws of 2018, subparagraph (A) of paragraph 2 as amended by chapter 490 of the laws of 2019 and paragraph 4 as added by section 3 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-three] TWENTY-SIX, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than [one year and for not less than thirty-five hours each week] TWELVE CONTINUOUS AND UNIN- TERRUPTED MONTHS (HEREINAFTER REFERRED TO AS THE TWELVE-MONTH PERIOD) IN A FULL-TIME OR PART-TIME POSITION, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes [one year] THE TWELVE-MONTH PERIOD of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: S. 8009--A 22 A. 9009--A (A) who served on active duty in the United States army, navy, air force, SPACE FORCE, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who (i) was released from active duty by general or honorable discharge [after September eleventh, two thousand one], or (ii) has a qualifying condition, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one], or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one]; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [twenty-two] TWENTY-FIVE; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. (4) Amount of credit. The amount of the credit shall be [ten] FIFTEEN percent of the total amount of wages paid to [he] THE qualified veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employ- ment. Provided, however, that[, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be fifteen percent of the total amount of wages paid to the qualified veteran during the veteran's first full year of employment. The] THE credit allowed pursuant to this subsection shall not exceed in any taxa- ble year, [five] FIFTEEN thousand dollars for any qualified veteran EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD and [fifteen thousand dollars for any qualified veteran who is a disabled veteran] SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED VETERAN EMPLOYED IN A PART-TIME POSI- TION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOU- SAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD. § 3. Paragraphs 1, 2 and 4 of subdivision (g-1) of section 1511 of the tax law, paragraph 1 and subparagraph (B) of paragraph 2 as amended by section 3 of part II of chapter 59 of the laws of 2021, paragraph 2 as amended by section 3 of part Q of chapter 59 of the laws of 2018, subparagraph (A) of paragraph 2 as amended by chapter 490 of the laws of 2019 and paragraph 4 as added by section 5 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-three] TWENTY-SIX, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than [one year and for not less than thirty-five hours each week] TWELVE CONTINUOUS AND UNINTERRUPTED MONTHS (HEREINAFTER REFERRED TO AS THE TWELVE-MONTH PERI- OD) IN A FULL-TIME OR PART-TIME POSITION, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qual- ified veteran completes [one year] THE TWELVE-MONTH PERIOD of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran S. 8009--A 23 A. 9009--A that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, SPACE FORCE, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia; who (i) was released from active duty by general or honorable discharge [after September eleventh, two thousand one], or (ii) has a qualifying condition, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one], or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one]; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [twenty-two] TWENTY-FIVE; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. (4) Amount of credit. The amount of the credit shall be [ten] FIFTEEN percent of the total amount of wages paid to the qualified veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employ- ment. Provided, however, that[, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be fifteen percent of the total amount of wages paid to the qualified veteran during the veteran's first full year of employment. The] THE credit allowed pursuant to this subdivision shall not exceed in any taxable year, [five] FIFTEEN thousand dollars for any qualified veteran EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD and [fifteen thousand dollars for any qualified veteran who is a disabled veteran] SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED VETERAN EMPLOYED IN A PART-TIME POSI- TION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOU- SAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART I Section 1. The tax law is amended by adding a new section 47 to read as follows: § 47. GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. (A) (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SUBDI- VISION (B) OF THIS SECTION AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER MAY BE ELIGIBLE TO CLAIM A GRADE NO. 6 HEAT- ING OIL CONVERSION TAX CREDIT IN THE TAXABLE YEAR THE CONVERSION IS COMPLETE. THE CREDIT SHALL BE EQUAL TO FIFTY PERCENT OF THE CONVERSION COSTS FOR ALL OF THE TAXPAYER'S BUILDINGS LOCATED IN A MUNICIPALITY PAID BY SUCH TAXPAYER ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO AND BEFORE JULY FIRST, TWO THOUSAND TWENTY-THREE. THE CREDIT CANNOT EXCEED FIVE HUNDRED THOUSAND DOLLARS PER MUNICIPALITY. S. 8009--A 24 A. 9009--A (2) A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER S CORPORATION SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION THAT MEETS THE ELIGIBILITY CRITERIA DESCRIBED IN SUBDIVISION (B) OF THIS SECTION TO CLAIM A GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. IN NO EVENT MAY THE TOTAL AMOUNT OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION EXCEED FIVE HUNDRED THOU- SAND DOLLARS FOR ALL BUILDINGS LOCATED IN A MUNICIPALITY. (3) NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS INCLUDED AS PART OF THE CALCULATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT ALLOWED UNDER THIS CHAPTER. (B) ELIGIBILITY CRITERIA. (1) TO BE ELIGIBLE TO CLAIM A GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT, A BUSINESS ENTITY MUST: (I) INCUR EXPENSES FOR THE CONVERSION FROM GRADE NO. 6 HEATING OIL FUEL, AS DESCRIBED AS "CONVERSION COSTS" IN PARAGRAPH (1) OF SUBDIVISION (C) OF THIS SECTION, TO BIODIESEL HEATING OIL OR A GEOTHERMAL SYSTEM AT ANY BUILDING LOCATED IN NEW YORK STATE OUTSIDE THE CITY OF NEW YORK; (II) SUBMIT AN APPLICATION TO AND OBTAIN APPROVAL OF SUCH APPLICATION BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY DESCRIB- ING THE CONVERSION AND APPROVED COSTS TO COMPLETE SUCH CONVERSION; (III) NOT BE PRINCIPALLY ENGAGED IN THE GENERATION OR DISTRIBUTION OF ELECTRICITY, POWER OR ENERGY; (IV) BE IN COMPLIANCE WITH ALL ENVIRONMENTAL CONSERVATION LAWS AND REGULATIONS; AND (V) NOT OWE PAST DUE STATE TAXES UNLESS THE BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED BINDING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY. (C) DEFINITIONS. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (1) CONVERSION COSTS MEANS THE EQUIPMENT AND LABOR COSTS ASSOCIATED WITH THE DESIGN, INSTALLATION AND USE OF SPACE HEATING AND OTHER ENERGY CONVERSION SYSTEMS THAT ARE DESIGNED TO OR ACCOMMODATE THE USE OF BIOD- IESEL FUEL OR A GEOTHERMAL SYSTEM AND, AT THE OPTION OF THE TAXPAYER, THE COSTS OF COMPLETING AN ASHRAE LEVEL 2 ENERGY AUDIT INCLUDING ASSESS- MENT OF ELECTRIFICATION OPTIONS. (2) BIODIESEL MEANS A MINIMUM BLEND OF EIGHTY-FIVE (85) PERCENT BIOD- IESEL, DEFINED AS FUEL MANUFACTURED FROM VEGETABLE OILS, ANIMAL FATS, OR OTHER AGRICULTURAL OR OTHER PRODUCTS OR BY-PRODUCTS, WITH PETRODIESEL FUEL COMMONLY USED FOR HEATING SYSTEMS. (3) GEOTHERMAL MEANS A SYSTEM THAT USES THE GROUND OR GROUND WATER AS A THERMAL ENERGY SOURCE/SINK TO HEAT OR COOL A BUILDING OR PROVIDE HOT WATER WITHIN THE BUILDING. (4) MUNICIPALITY, FOR PURPOSES OF THIS SECTION, MEANS A CITY OR TOWN. (D) THE COMMISSIONER, IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, WILL DEVELOP AN APPLICATION PROCESS TO CERTIFY THE EXPENSES NECESSARY FOR THE CONVERSION AND A TAXPAYER WILL NOT BE ELIGIBLE TO CLAIM THE CREDIT UNLESS IT HAS COMPLETED THAT APPLI- CATION PROCESS AND THE APPLICATION HAS BEEN APPROVED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. (E) INFORMATION SHARING. THE DEPARTMENT, THE DEPARTMENT OF ENVIRON- MENTAL CONSERVATION AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP- MENT AUTHORITY SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION REGARDING THE INFORMATION CONTAINED ON THE CREDIT APPLICA- TION FOR CLAIMING THE GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT AND SUCH INFORMATION EXCHANGED BETWEEN THE DEPARTMENT, THE DEPARTMENT OF S. 8009--A 25 A. 9009--A ENVIRONMENTAL CONSERVATION AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFORMATION LAW. (F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58; (2) ARTICLE 22: SECTION 606, SUBSECTION (NNN). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 58 to read as follows: 58. GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXA- BLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON. § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) GRADE NO. 6 HEATING OIL AMOUNT OF CREDIT UNDER SUBDIVISION CONVERSION TAX CREDIT UNDER FIFTY-EIGHT OF SECTION TWO HUNDRED SUBSECTION (NNN) TEN-B § 4. Section 606 of the tax law is amended by adding a new subsection (nnn) to read as follows: (NNN) GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. § 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART J Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 2 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty] TWENTY-SEVEN million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does S. 8009--A 26 A. 9009--A not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 2. Subdivision 4 of section 22 of the public housing law, as amended by section 3 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty-eight] FORTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 3. Subdivision 4 of section 22 of the public housing law, as amended by section 4 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [thirty-six] FIFTY-SEVEN million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 4. Subdivision 4 of section 22 of the public housing law, as amended by section 5 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [forty-four] SEVENTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 5. This act shall take effect immediately; provided, however, section one of this act shall take effect April 1, 2022; section two of this act shall take effect April 1, 2023; section three of this act shall take effect April 1, 2024; and section four of this act shall take effect April 1, 2025. PART K Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as amended by section 1 of part R of chapter 59 of the laws of 2019, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state purchased before January first, two thousand [twenty-three] TWENTY-SIX. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as amended by section 2 of part R of chapter 59 of the laws of 2019, is amended to read as follows: S. 8009--A 27 A. 9009--A (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thou- sand seven and on or after January first, two thousand eight and before January first, two thousand [twenty-three] TWENTY-SIX. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 3. This act shall take effect immediately. PART L Section 1. Section 5 of chapter 604 of the laws of 2011 amending the tax law relating to the credit for companies who provide transportation to people with disabilities, as amended by section 1 of part K of chap- ter 60 of the laws of 2016, is amended to read as follows: § 5. This act shall take effect immediately and shall remain in effect until December 31, 2016 when upon such date it shall be deemed repealed; provided that this act shall be deemed to have been in full force and effect on December 31, 2010; provided further that this act shall apply to all tax years commencing on or after January 1, 2011; and provided further that sections one and two of this act shall remain in effect until December 31, [2022] 2028 when upon such date such sections shall be deemed repealed. § 2. Paragraph (c) of subdivision 38 of section 210-B of the tax law, as amended by section 2 of part K of chapter 60 of the laws of 2016, is amended to read as follows: (c) Application of credit. In no event shall the credit allowed under this subdivision for any taxable year reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. The tax credit allowed pursuant to this subdivision shall not apply to taxa- ble years beginning on or after January first, two thousand [twenty- three] TWENTY-NINE. § 3. This act shall take effect immediately. PART M Section 1. Paragraph 4 of subdivision (a) of section 24 of the tax law, as added by section 5 of part Q of chapter 57 of the laws of 2010, is amended to read as follows: (4) (I) Notwithstanding the foregoing provisions of this subdivision, a qualified film production company or qualified independent film production company, that has applied for credit under the provisions of this section, agrees as a condition for the granting of the credit: [(i)] (A) to include in each qualified film distributed by DVD, or other media for the secondary market, a New York promotional video approved by S. 8009--A 28 A. 9009--A the governor's office of motion picture and television development or to include in the end credits of each qualified film "Filmed With the Support of the New York State Governor's Office of Motion Picture and Television Development" and a logo provided by the governor's office of motion picture and television development, and [(ii)] (B) to certify that it will purchase taxable tangible property and services, defined as qualified production costs pursuant to paragraph one of subdivision (b) of this section, only from companies registered to collect and remit state and local sales and use taxes pursuant to articles twenty-eight and twenty-nine of this chapter. (II) ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, A QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF THIS SECTION SHALL, AS A CONDITION FOR THE GRANTING OF THE CREDIT, FILE A DIVERSITY PLAN WITH THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT OUTLINING SPECIFIC GOALS FOR HIRING A DIVERSE WORKFORCE. THE COMMISSION- ER OF ECONOMIC DEVELOPMENT SHALL PROMULGATE REGULATIONS IMPLEMENTING THE REQUIREMENTS OF THIS PARAGRAPH, WHICH, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS, TO ENSURE COMPLIANCE WITH THE PROVISIONS OF THIS PARAGRAPH. THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT SHALL REVIEW EACH SUBMITTED PLAN AS TO WHETHER IT MEETS THE REQUIREMENTS ESTABLISHED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AND SHALL VERIFY THAT THE APPLICANT HAS MET OR MADE GOOD-FAITH EFFORTS IN ACHIEVING THESE GOALS. THE DIVERSITY PLAN ALSO SHALL INDICATE WHETHER THE QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF THIS SECTION INTENDS TO PARTICIPATE IN TRAINING, EDUCATION, AND RECRUIT- MENT PROGRAMS THAT ARE DESIGNED TO PROMOTE AND ENCOURAGE THE TRAINING AND HIRING IN THE FILM AND TELEVISION INDUSTRY OF NEW YORK RESIDENTS WHO REPRESENT THE DIVERSITY OF THE STATE'S POPULATION. § 2. Paragraph 5 of subdivision (a) of section 24 of the tax law, as amended by section 1 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (5) For the period two thousand fifteen through two thousand [twenty- six] TWENTY-NINE, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year S. 8009--A 29 A. 9009--A during the period two thousand fifteen through two thousand [twenty-six] TWENTY-NINE of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and television development among taxpayers in order of priority based upon the date of filing an application for allocation of film production credit with such office. If the total amount of allo- cated credits applied for under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this para- graph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this paragraph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdivision (a) of section thirty-one of this article exceed five million dollars in any year during the peri- od two thousand fifteen through two thousand [twenty-six] TWENTY-NINE. § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 2 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (4) Additional pool 2 - The aggregate amount of tax credits allowed in subdivision (a) of this section shall be increased by an additional four hundred twenty million dollars in each year starting in two thousand ten through two thousand [twenty-six] TWENTY-NINE provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen, twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-six] TWENTY-NINE and five million dollars of the annual allocation shall be made available for the television writers' and directors' fees and salaries credit pursuant to section twenty-four-b of this article in each year starting in two thousand twenty through two thousand [twenty-six] TWENTY-NINE. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- S. 8009--A 30 A. 9009--A located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this chapter. The governor's office for motion picture and television devel- opment must notify taxpayers of their allocation year and include the allocation year on the certificate of tax credit. Taxpayers eligible to claim a credit must report the allocation year directly on their empire state film production credit tax form for each year a credit is claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 4. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 3 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (4) Additional pool 2 - The aggregate amount of tax credits allowed in subdivision (a) of this section shall be increased by an additional four hundred twenty million dollars in each year starting in two thousand ten through two thousand [twenty-six] TWENTY-NINE provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen and twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-six] TWENTY-NINE. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this chapter. The governor's office for motion picture and television devel- S. 8009--A 31 A. 9009--A opment must notify taxpayers of their allocation year and include the allocation year on the certificate of tax credit. Taxpayers eligible to claim a credit must report the allocation year directly on their empire state film production credit tax form for each year a credit is claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 5. Paragraph 1 of subdivision (f) of section 24 of the tax law, as added by section 2 of subpart A of part H of chapter 39 of the laws of 2019, is amended to read as follows: (1) With regard to certificates of tax credit issued on or after Janu- ary first, two thousand twenty, the commissioner of economic development shall reduce by one-quarter of one percent the amount of credit allowed to a taxpayer and this reduced amount shall be reported on a certificate of tax credit issued pursuant to this section and the regulations promulgated by the commissioner of economic development to implement this credit program. PROVIDED, HOWEVER, FOR CERTIFICATES OF TAX CREDIT ISSUED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, THE AMOUNT OF CREDIT SHALL BE REDUCED BY ONE-HALF OF ONE PERCENT ALLOWED TO THE TAXPAYER. § 6. Paragraph 6 of subdivision (a) of section 31 of the tax law, as amended by section 4 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (6) For the period two thousand fifteen through two thousand [twenty- six] TWENTY-NINE, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) for services performed by those individuals in one of the counties specified in this paragraph in connection with the post production work on a qualified film with a minimum budget of five hundred thousand dollars at a qualified post production facility in one of the counties listed in this paragraph. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Catta- raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this para- graph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-six] TWENTY-NINE of the annual allocation made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and tele- vision development among taxpayers in order of priority based upon the S. 8009--A 32 A. 9009--A date of filing an application for allocation of post production credit with such office. If the total amount of allocated credits applied for under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this paragraph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this para- graph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation for two thousand seventeen made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdivision (a) of section twenty-four of this article exceed five million dollars in any year during the period two thousand fifteen through two thousand [twenty-six] TWENTY-NINE. § 7. This act shall take effect immediately; provided, however that the amendments to paragraph 4 of subdivision (e) of section 24 of the tax law made by section three of this act shall take effect on the same date and in the same manner as section 5 of chapter 683 of the laws of 2019, as amended, takes effect. PART N Section 1. Subdivision (a) of section 25-a of the labor law, as amended by section 1 of subpart A of part N of chapter 59 of the laws of 2017, is amended to read as follows: (a) The commissioner is authorized to establish and administer the program established under this section to provide tax incentives to employers for employing at risk youth in part-time and full-time posi- tions. There will be ten distinct pools of tax incentives. Program one will cover tax incentives allocated for two thousand twelve and two thousand thirteen. Program two will cover tax incentives allocated in two thousand fourteen. Program three will cover tax incentives allocated in two thousand fifteen. Program four will cover tax incentives allo- cated in two thousand sixteen. Program five will cover tax incentives allocated in two thousand seventeen. Program six will cover tax incen- tives allocated in two thousand eighteen. Program seven will cover tax incentives allocated in two thousand nineteen. Program eight will cover tax incentives allocated in two thousand twenty. Program nine will cover tax incentives allocated in two thousand twenty-one. Program ten will cover tax incentives allocated in two thousand twenty-two. PROGRAM ELEV- EN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-THREE. PROGRAM TWELVE WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWEN- TY-FOUR. PROGRAM THIRTEEN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-FIVE. PROGRAM FOURTEEN WILL COVER TAX INCENTIVES ALLO- CATED IN TWO THOUSAND TWENTY-SIX. PROGRAM FIFTEEN WILL COVER TAX INCEN- TIVES ALLOCATED IN TWO THOUSAND TWENTY-SEVEN. The commissioner is authorized to allocate up to twenty-five million dollars of tax credits under program one, ten million dollars of tax credits under program two, twenty million dollars of tax credits under program three, fifty million dollars of tax credits under each of programs four and five, and forty million dollars of tax credits under programs six, seven, eight, nine [and], ten, ELEVEN, TWELVE, THIRTEEN, FOURTEEN AND FIFTEEN. § 2. Paragraph 4 of subdivision (b) of section 25-a of the labor law, as added by section 1-a of subpart A of part N of chapter 59 of the laws of 2017, is amended to read as follows: S. 8009--A 33 A. 9009--A (4) For programs six, seven, eight, nine [and], ten, ELEVEN, TWELVE, THIRTEEN, FOURTEEN, AND FIFTEEN the tax credit under each program shall be allocated as follows: (i) twenty million dollars of tax credit for qualified employees; and (ii) twenty million dollars of tax credit for individuals who meet all of the requirements for a qualified employee except for the residency requirement of subparagraph (ii) of paragraph two of this subdivision, which individuals shall be deemed to meet the residency requirements of subparagraph (ii) of paragraph two of this subdivision if they reside in New York state. § 3. The opening paragraph of subdivision (d) of section 25-a of the labor law, as amended by section 2 of part R of chapter 59 of the laws of 2018, is amended to read as follows: To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, [and] after January first, two thousand twenty-two but no later than November thirtieth, two thousand twenty-two for program ten, AFTER JANUARY FIRST, TWO THOUSAND TWENTY- THREE BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-THREE FOR PROGRAM ELEVEN, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-FOUR FOR PROGRAM TWELVE, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-FIVE FOR PROGRAM THIRTEEN, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX BUT NO LATER THAN NOVEMBER THIR- TIETH, TWO THOUSAND TWENTY-SIX FOR PROGRAM FOURTEEN, AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-SEVEN FOR PROGRAM FIFTEEN. The qualified employees must start their employment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty-first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than Decem- ber thirty-first, two thousand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty- first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nine- teen but no later than December thirty-first, two thousand nineteen for program seven, on or after January first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, S. 8009--A 34 A. 9009--A on or after January first, two thousand twenty-one but no later than December thirty-first, two thousand twenty-one for program nine, [and] on or after January first, two thousand twenty-two but no later than December thirty-first, two thousand twenty-two for program ten, ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE BUT NO LATER THAN DECEM- BER THIRTY-FIRST, TWO THOUSAND THREE FOR PROGRAM ELEVEN, ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR BUT NO LATER THAN DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-FOUR FOR PROGRAM TWELVE, ON OR AFTER JANU- ARY FIRST, TWO THOUSAND TWENTY-FIVE BUT NO LATER THAN DECEMBER THIRTY- FIRST, TWO THOUSAND TWENTY-FIVE FOR PROGRAM THIRTEEN, ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX BUT NO LATER THAN DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-SIX FOR PROGRAM FOURTEEN, AND ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-SEVEN FOR PROGRAM FIFTEEN. As part of such application, an employer must: § 4. This act shall take effect immediately. PART O Section 1. Subdivision (a) of section 25-c of the labor law, as added by section 1 of subpart B of part N of chapter 59 of the laws of 2017, is amended to read as follows: (a) The commissioner is authorized to establish and administer the empire state apprenticeship tax credit program to provide tax incentives to certified employers for employing qualified apprentices pursuant to an apprenticeship agreement registered with the department pursuant to paragraph (d) of subdivision one of section eight hundred eleven of this chapter. The commissioner is authorized to allocate up to ten million dollars of tax credits annually, beginning in two thousand eighteen and ending before two thousand [twenty-three] TWENTY-EIGHT. Any unused annu- al allocation of the credit shall be made available in each of the subsequent years before two thousand [twenty-three] TWENTY-EIGHT. § 2. This act shall take effect immediately. PART P Section 1. Subdivision 6 of section 187-b of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2017, is amended to read as follows: 6. Termination. The credit allowed by subdivision two of this section shall not apply in taxable years beginning after December thirty-first, two thousand [twenty-two] TWENTY-SEVEN. § 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law, as amended by section 2 of part O of chapter 59 of the laws of 2017, is amended to read as follows: (f) Termination. The credit allowed by paragraph (b) of this subdivi- sion shall not apply in taxable years beginning after December thirty- first, two thousand [twenty-two] TWENTY-SEVEN. § 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as amended by section 3 of part O of chapter 59 of the laws of 2017, is amended to read as follows: (6) Termination. The credit allowed by this subsection shall not apply in taxable years beginning after December thirty-first, two thousand [twenty-two] TWENTY-SEVEN. § 4. This act shall take effect immediately. S. 8009--A 35 A. 9009--A PART Q Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, as amended by section 1 of part E of chapter 59 of the laws of 2019, is amended to read as follows: § 5. This act shall take effect January 1, 2015, and shall apply to taxable years beginning on and after that date[; provided, however, that this act shall expire and be deemed repealed January 1, 2023]. § 2. Section 25-b of the labor law is amended by adding a new subdivi- sion (f) to read as follows: (F) THE TAX CREDITS PROVIDED UNDER THIS PROGRAM SHALL BE APPLICABLE TO TAXABLE PERIODS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY- NINE. § 3. This act shall take effect immediately. PART R Section 1. Subdivision 1-A of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 1-A. The term "New York S corporation" means, with respect to any taxable year, a corporation subject to tax under this article [for which an election is in effect pursuant to] AND DESCRIBED IN PARAGRAPH (I) OR (II) OF subsection (a) of section six hundred sixty of this chapter [for such year], AND any such year shall be denominated a "New York S year"[, and such election shall be denominated a "New York S election"]. The term "New York C corporation" means, with respect to any taxable year, a corporation subject to tax under this article which is not a New York S corporation, and any such year shall be denominated a "New York C year". The term "termination year" means any taxable year of a corporation during which the CORPORATION'S STATUS AS A New York S [election] CORPO- RATION terminates on a day other than the first day of such year. The portion of the taxable year ending before the first day for which such termination is effective shall be denominated the "S short year", and the portion of such year beginning on such first day shall be denomi- nated the "C short year". The term "New York S termination year" means any termination year which is [not] also an S termination year for federal purposes. § 2. Subdivision 1-B and subparagraph (ii) of the opening paragraph and paragraph (k) of subdivision 9 of section 208 of the tax law are REPEALED. § 3. Subparagraph (A) and the opening paragraph of subparagraph (B) of paragraph 5 of subdivision (a) of section 292 of the tax law, as added by section 48 of part A of chapter 389 of the laws of 1997, are amended to read as follows: (A) In the case of a shareholder of an S corporation, (i) [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this chapter [is in effect with respect to such corporation], there shall be added to federal unrelated business taxable income an amount equal to the shareholder's pro rata share of the corporation's reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, and (ii) [where such election has not been made with respect to such corporation, there shall be subtracted from federal unrelated business S. 8009--A 36 A. 9009--A taxable income any items of income of the corporation included therein, and there shall be added to federal unrelated business taxable income any items of loss or deduction included therein, and (iii)] in the case of a New York S termination year, the amount of any such items of S corporation income, loss, deduction and reductions for taxes shall be adjusted in the manner provided in paragraph two or three of subsection (s) of section six hundred twelve of this chapter. In the case of a shareholder of a corporation which was, for any of its taxable years beginning after nineteen hundred ninety-seven AND BEFORE TWO THOUSAND TWENTY-THREE, a federal S corporation but a New York C corporation: § 4. Paragraph 18 of subsection (b) of section 612 of the tax law, as amended by chapter 606 of the laws of 1984, subparagraph (A) as amended by chapter 28 of the laws of 1987 and subparagraph (B) as amended by chapter 190 of the laws of 1990, is amended to read as follows: (18) In the case of a shareholder of an S corporation AS DESCRIBED IN SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY (A) [where the election provided for in subsection (a) of section six hundred sixty is in effect with respect to such corporation,] an amount equal to [his] SUCH SHAREHOLDER'S pro rata share of the corporation's reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, and (B) in the case of a New York S termination year, subparagraph (A) of this paragraph shall apply to the amount of reductions for taxes deter- mined under subsection (s) of this section. § 5. Paragraph 19 of subsection (b) of section 612 of the tax law is REPEALED. § 6. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax law, paragraph 20 as amended by chapter 606 of the laws of 1984 and paragraph 21 as amended by section 70 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (20) S corporation distributions to the extent not included in federal gross income for the taxable year because of the application of section thirteen hundred sixty-eight, subsection (e) of section thirteen hundred seventy-one or subsection (c) of section thirteen hundred seventy-nine of the internal revenue code which represent income not previously subject to tax under this article because the election provided for in subsection (a) of section six hundred sixty IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE had not been made. Any such distribution treated in the manner described in paragraph two of subsection (b) of section thirteen hundred sixty-eight of the internal revenue code for federal income tax purposes shall be treated as ordinary income for purposes of this article. (21) In relation to the disposition of stock or indebtedness of a corporation which elected under subchapter s of chapter one of the internal revenue code for any taxable year of such corporation begin- ning, in the case of a corporation taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE, the amount required to be added to federal adjusted gross income pursuant to subsection (n) of this section. § 7. Paragraph 21 of subsection (c) of section 612 of the tax law, as amended by section 70 of part A of chapter 59 of the laws of 2014, is amended to read as follows: S. 8009--A 37 A. 9009--A (21) In relation to the disposition of stock or indebtedness of a corporation which elected under subchapter s of chapter one of the internal revenue code for any taxable year of such corporation begin- ning, in the case of a corporation taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE, the amounts required to be subtracted from federal adjusted gross income pursuant to subsection (n) of this section. § 8. Paragraph 22 of subsection (c) of section 612 of the tax law is REPEALED. § 9. Subsection (e) of section 612 of the tax law, as amended by chap- ter 166 of the laws of 1991, paragraph 3 as added by chapter 760 of the laws of 1992, is amended to read as follows: (e) Modifications of partners and shareholders of S corporations. (1) Partners and shareholders of S corporations [which are not New York C corporations]. The amounts of modifications required to be made under this section by a partner or by a shareholder of an S corporation [(other than an S corporation which is a New York C corporation)], which relate to partnership or S corporation items of income, gain, loss or deduction shall be determined under section six hundred seventeen and, in the case of a partner of a partnership doing an insurance business as a member of the New York insurance exchange described in section six thousand two hundred one of the insurance law, under section six hundred seventeen-a of this article. (2) [Shareholders of S corporations which are New York C corporations. In the case of a shareholder of an S corporation which is a New York C corporation, the modifications under this section which relate to the corporation's items of income, loss and deduction shall not apply, except for the modifications provided under paragraph nineteen of subsection (b) and paragraph twenty-two of subsection (c) of this section. (3)] New York S termination year. In the case of a New York S termi- nation year, the amounts of the modifications required under this section which relate to the S corporation's items of income, loss, deduction and reductions for taxes (as described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code) shall be adjusted in the same manner that the S corporation's items are adjusted under subsection (s) of section six hundred twelve. § 10. Subsection (n) of section 612 of the tax law, as amended by section 61 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (n) Where gain or loss is recognized for federal income tax purposes upon the disposition of stock or indebtedness of a corporation electing under subchapter s of chapter one of the internal revenue code (1) There shall be added to federal adjusted gross income the amount of increase in basis with respect to such stock or indebtedness pursuant to subsection (a) of section thirteen hundred seventy-six of the inter- nal revenue code as such section was in effect for taxable years begin- ning before January first, nineteen hundred eighty-three and subpara- graphs (A) and (B) of paragraph one of subsection (a) of section thirteen hundred sixty-seven of such code, for each taxable year of the corporation beginning, in the case of a corporation taxable under arti- cle nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE, and in the case of a corporation taxable under FORMER article thirty-two of S. 8009--A 38 A. 9009--A this chapter, after December thirty-first, nineteen hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for in subsection (a) of section six hundred sixty of this article was not in effect, and (2) There shall be subtracted from federal adjusted gross income (A) the amount of reduction in basis with respect to such stock or indebtedness pursuant to subsection (b) of section thirteen hundred seventy-six of the internal revenue code as such section was in effect for taxable years beginning before January first, nineteen hundred eighty-three and subparagraphs (B) and (C) of paragraph two of subsection (a) of section thirteen hundred sixty-seven of such code, for each taxable year of the corporation beginning, in the case of a corpo- ration taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-THREE, and in the case of a corporation taxable under FORMER article thirty-two of this chapter, after December thirty-first, nineteen hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for in subsection (a) of section six hundred sixty of this article was not in effect and (B) the amount of any modifications to federal gross income with respect to such stock pursuant to paragraph twenty of subsection (b) of this section. § 11. Paragraph 6 of subsection (c) of section 615 of the tax law is REPEALED. § 12. Subsection (e) of section 615 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (e) Modifications of partners and shareholders of S corporations. (1) Partners and shareholders of S corporations [which are not New York C corporations]. The amounts of modifications under subsection (c) or under paragraph (2) or (3) of subsection (d) required to be made by a partner or by a shareholder of an S corporation [(other than an S corpo- ration which is a New York C corporation)], with respect to items of deduction of a partnership or S corporation shall be determined under section six hundred seventeen. (2) [Shareholders of S corporations which are New York C corporations. In the case of a shareholder of an S corporation which is a New York C corporation, the modifications under this section which relate to the corporation's items of deduction shall not apply, except for the modifi- cation provided under paragraph six of subsection (c). (3)] New York S termination year. In the case of a New York S termi- nation year, the amounts of the modifications required under this section which relate to the S corporation's items of deduction shall be adjusted in the same manner that the S corporation's items are adjusted under subsection (s) of section six hundred twelve. § 13. Subsection (a) of section 617 of the tax law, as amended by chapter 190 of the laws of 1990, is amended to read as follows: (a) Partner's and shareholder's modifications. In determining New York adjusted gross income and New York taxable income of a resident partner or a resident shareholder of an S corporation [(other than an S corpo- ration which is a New York C corporation)], any modification described in subsections (b), (c) or (d) of section six hundred twelve, subsection (c) of section six hundred fifteen or paragraphs (2) or (3) of subsection (d) of such section, which relates to an item of partnership or S corporation income, gain, loss or deduction shall be made in accordance with the partner's distributive share or the shareholder's pro rata share, for federal income tax purposes, of the item to which S. 8009--A 39 A. 9009--A the modification relates. Where a partner's distributive share or a shareholder's pro rata share of any such item is not required to be taken into account separately for federal income tax purposes, the part- ner's or shareholder's share of such item shall be determined in accord- ance with his OR HER share, for federal income tax purposes, of partner- ship or S corporation taxable income or loss generally. In the case of a New York S termination year, his OR HER pro rata share of any such item shall be determined under subsection (s) of section six hundred twelve. § 14. Subparagraph (E-1) of paragraph 1 of subsection (b) of section 631 of the tax law, as added by section 3 of part C of chapter 57 of the laws of 2010, is amended to read as follows: (E-1) in the case of an S corporation [for which an election is in effect pursuant] SUBJECT to subsection (a) of section six hundred sixty of this article that terminates its taxable status in New York, any income or gain recognized on the receipt of payments from an installment sale contract entered into when the S corporation was subject to tax in New York, allocated in a manner consistent with the applicable methods and rules for [allocation] APPORTIONMENT under article nine-A or FORMER ARTICLE thirty-two of this chapter, in the year that the S corporation sold its assets. § 15. The section heading and paragraph 2 of subsection (a) of section 632 of the tax law, the section heading as amended by chapter 606 of the laws of 1984, and paragraph 2 of subsection (a) as amended by section 71 of part A of chapter 59 of the laws of 2014, are amended to read as follows: Nonresident partners and [electing] shareholders of S corporations. (2) In determining New York source income of a nonresident shareholder of an S corporation [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this article [is in effect], there shall be included only the portion derived from or connected with New York sources of such shareholder's pro rata share of items of S corporation income, loss and deduction entering into [his] SUCH SHAREHOLDER'S federal adjusted gross income, increased by reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, as such portion shall be determined under regulations of the commission- er consistent with the applicable methods and rules for [allocation] APPORTIONMENT under article nine-A of this chapter[, regardless of whether or not such item or reduction is included in entire net income under article nine-A for the tax year]. If a nonresident is a sharehold- er in an S corporation [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this article [is in effect], and the S corporation has distributed an installment obligation under section 453(h)(1)(A) of the Internal Revenue Code, then any gain recognized on the receipt of payments from the installment obligation for federal income tax purposes will be treated as New York source income allocated in a manner consistent with the applicable methods and rules for [allocation] APPORTIONMENT under article nine-A of this chap- ter in the year that the assets were sold. In addition, if the share- holders of the S corporation have made an election under section 338(h)(10) of the Internal Revenue Code, then any gain recognized on the deemed asset sale for federal income tax purposes will be treated as New York source income allocated in a manner consistent with the applicable methods and rules for [allocation] APPORTIONMENT under article nine-A of this chapter in the year that the shareholder made the section 338(h)(10) election. For purposes of a section 338(h)(10) election, when S. 8009--A 40 A. 9009--A a nonresident shareholder exchanges his or her S corporation stock as part of the deemed liquidation, any gain or loss recognized shall be treated as the disposition of an intangible asset and will not increase or offset any gain recognized on the deemed assets sale as a result of the section 338(h)(10) election. § 16. Subsection (a) of section 632-a of the tax law, as added by section 1 of part K of chapter 60 of the laws of 2007, is amended to read as follows: (a) General. If (1) substantially all of the services of a personal service corporation or S corporation are performed for or on behalf of another corporation, partnership, or other entity and (2) the effect of forming or availing of such personal service corporation or S corpo- ration is the avoidance or evasion of New York income tax by reducing the income of, or in the case of a nonresident, reducing the New York source income of, or securing the benefit of any expense, deduction, credit, exclusion, or other allowance for, any employee-owner which would not otherwise be available, then the commissioner may allocate all income, deductions, credits, exclusions, and other allowances between such personal service corporation or S corporation (even if such personal service corporation or S corporation [is taxed under article nine-A of this chapter or] is not subject to tax in this state) and its employee-owners, provided such allocation is necessary to prevent avoid- ance or evasion of New York state income tax or to clearly reflect the source and the amount of the income of the personal service corporation or S corporation or any of its employee-owners. § 17. Paragraph 2 and subparagraph (A) of paragraph 4 of subsection (c) of section 658 of the tax law, paragraph 2 as amended by chapter 190 of the laws of 1990, and subparagraph (A) of paragraph 4 as amended by section 72 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (2) S corporations. Every S corporation [for which the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty [is in effect] shall make a return for the taxable year setting forth all items of income, loss and deduction and such other pertinent infor- mation as the commissioner of taxation and finance may by regulations and instructions prescribe. Such return shall be filed on or before the fifteenth day of the third month following the close of each taxable year. (A) General. Every entity which is a partnership, other than a public- ly traded partnership as defined in section 7704 of the federal Internal Revenue Code, subchapter K limited liability company or an S corporation [for which the election provided for in subsection (a) of section six hundred sixty of this part is in effect], which has partners, members or shareholders who are nonresident individuals, as defined under subsection (b) of section six hundred five of this article, or C corpo- rations, and which has any income derived from New York sources, deter- mined in accordance with the applicable rules of section six hundred thirty-one of this article as in the case of a nonresident individual, shall pay estimated tax on such income on behalf of such partners, members or shareholders in the manner and at the times prescribed by subsection (c) of section six hundred eighty-five of this article. For purposes of this paragraph, the term "estimated tax" shall mean a part- ner's, member's or shareholder's distributive share or pro rata share of the entity income derived from New York sources, multiplied by the high- est rate of tax prescribed by section six hundred one of this article for the taxable year of any partner, member or shareholder who is an S. 8009--A 41 A. 9009--A individual taxpayer, or paragraph (a) of subdivision one of section two hundred ten of this chapter for the taxable year of any partner, member or shareholder which is a C corporation, whether or not such C corpo- ration is subject to tax under article nine, nine-A or thirty-three of this chapter, and reduced by the distributive share or pro rata share of any credits determined under section one hundred eighty-seven, one hundred eighty-seven-a, six hundred six or fifteen hundred eleven of this chapter, whichever is applicable, derived from the entity. § 18. Section 660 of the tax law, as amended by chapter 606 of the laws of 1984, subsections (a) and (h) as amended by section 73 of part A of chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended by section 51, paragraphs 4 and 5 of subsection (b) as added and paragraph 6 of subsection (b) as renumbered by section 52 and subsections (e) and (f) as added and subsection (g) as relettered by section 53 of part A of chapter 389 of the laws of 1997, subsection (d) as added by chapter 760 of the laws of 1992, subsection (i) as added by section 1 of part L of chapter 60 of the laws of 2007 and paragraph 1 of subsection (i) as amended by section 39 of part T of chapter 59 of the laws of 2015, is amended to read as follows: § 660. [Election by shareholders of S corporations] TAX TREATMENT OF FEDERAL S CORPORATIONS. (a) [Election.] If a corporation is an eligible S corporation, the shareholders of the corporation [may elect in the manner set forth in subsection (b) of this section to] SHALL take into account, to the extent provided for in this article (or in article thir- teen of this chapter, in the case of a shareholder which is a taxpayer under such article), the S corporation items of income, loss, deduction and reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code which are taken into account for federal income tax purposes for the taxable year. [No election under this subsection shall be effective unless all shareholders of the corporation have so elected.] An eligible S corporation is (i) [an S] A corporation THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE which is subject to tax under article nine-A of this chapter, or (ii) [an S] A corporation THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE which is the parent of a qualified subchapter S subsidiary AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE subject to tax under article nine-A[, where the sharehold- ers of such parent corporation are entitled to make the election under this subsection by reason of subparagraph three of paragraph (k) of subdivision nine of section two hundred eight] of this chapter. (b) [Requirements of election. An election under subsection (a) of this section shall be made on such form and in such manner as the tax commission may prescribe by regulation or instruction. (1) When made. An election under subsection (a) of this section may be made at any time during the preceding taxable year of the corporation or at any time during the taxable year of the corporation and on or before the fifteenth day of the third month of such taxable year. (2) Certain elections made during first two and one-half months. If an election made under subsection (a) of this section is made for any taxa- ble year of the corporation during such year and on or before the fifteenth day of the third month of such year, such election shall be treated as made for the following taxable year if S. 8009--A 42 A. 9009--A (A) on one or more days in such taxable year before the day on which the election was made the corporation did not meet the requirements of subsection (b) of section thirteen hundred sixty-one of the internal revenue code or (B) one or more of the shareholders who held stock in the corporation during such taxable year and before the election was made did not consent to the election. (3) Elections made after first two and one-half months. If an election under subsection (a) of this section is made for any taxable year of the corporation and such election is made after the fifteenth day of the third month of such taxable year and on or before the fifteenth day of the third month of the following taxable year, such election shall be treated as made for the following taxable year. (4) Taxable years of two and one-half months or less. For purposes of this subsection, an election for a taxable year made not later than two months and fifteen days after the first day of the taxable year shall be treated as timely made during such year. (5) Authority to treat late elections, etc., as timely. If (A) an election under subsection (a) of this section is made for any taxable year (determined without regard to paragraph three of this subsection) after the date prescribed by this subsection for making such election for such taxable year, or if no such election is made for any taxable year, and (B) the commissioner determines that there was reasonable cause for failure to timely make such election, then (C) the commissioner may treat such an election as timely made for such taxable year (and paragraph three of this subsection shall not apply). (6) Years for which effective. An election under subsection (a) of this section shall be effective for the taxable year of the corporation for which it is made and for all succeeding taxable years of the corpo- ration until such election is terminated under subsection (c) of this section. (c)] Termination. An [election under] ELIGIBLE S CORPORATION SHALL CEASE TO BE SUBJECT TO subsection (a) of this section [shall cease to be effective (1)] on the day an election to be an S corporation ceases to be effec- tive for federal income tax purposes pursuant to subsection (d) of section thirteen hundred sixty-two of the internal revenue code[, or (2) if shareholders holding more than one-half of the shares of stock of the corporation on the day on which the revocation is made revoke such election in the manner the tax commission may prescribe by regu- lation, (A) on the first day of the taxable year of the corporation, if the revocation is made during such taxable year and on or before the fifteenth day of the third month thereof, or (B) on the first day of the following taxable year of the corporation, if the revocation is made during the taxable year but after the fifteenth day of the third month thereof, or (C) on and after the date so specified, if the revocation specifies a date for revocation which is on or after the day on which the revocation is made, or (3) if any person who was not a shareholder of the corporation on the day on which the election is made becomes a shareholder in the corpo- ration and affirmatively refuses to consent to such election in the S. 8009--A 43 A. 9009--A manner the tax commission may prescribe by regulation, on the day such person becomes a shareholder]. [(d)] (C) New York S termination year. In the case of a New York S termination year, the amount of any item of S corporation income, loss and deduction and reductions for taxes (as described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code) required to be taken account of under this arti- cle shall be adjusted in the same manner that the S corporation's items which are included in the shareholder's federal adjusted gross income are adjusted under subsection (s) of section six hundred twelve. [(e) Inadvertent invalid elections. If (1) an election under subsection (a) of this section was not effective for the taxable year for which made (determined without regard to paragraph two of subsection (b) of this section) by reason of a failure to obtain shareholder consents, (2) the commissioner determines that the circumstances resulting in such ineffectiveness were inadvertent, (3) no later than a reasonable period of time after discovery of the circumstances resulting in such ineffectiveness, steps were taken to acquire the required shareholder consents, and (4) the corporation, and each person who was a shareholder in the corporation at any time during the period specified pursuant to this subsection, agrees to make such adjustments (consistent with the treat- ment of the corporation as a New York S corporation) as may be required by the commissioner with respect to such period, (5) then, notwithstanding the circumstances resulting in such ineffec- tiveness, such corporation shall be treated as a New York S corporation during the period specified by the commissioner. (f)] (D) QUALIFIED SUBCHAPTER S SUBSIDIARIES. IF AN S CORPORATION HAS ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S SUBSIDIARY FOR FEDERAL INCOME TAX PURPOSES UNDER PARAGRAPH THREE OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE, SUCH ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND (1) THE ASSETS, LIABILITIES, INCOME, DEDUCTIONS, PROPERTY, PAYROLL, RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF ECONOMIC ACTIVITY OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE OF THE PARENT CORPORATION, (2) TRANSACTIONS BETWEEN THE PARENT CORPORATION AND THE SUBSIDIARY, INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO ACCOUNT, AND (3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION. (E) Validated federal elections. If [(1) an election under subsection (a) of this section was made for a taxable year or years of a corpo- ration, which years occur with or within the period for which] the federal S election of [such] AN ELIGIBLE S corporation has been vali- dated pursuant to the provisions of subsection (f) of section thirteen hundred sixty-two of the internal revenue code, [and (2) the corporation, and each person who was a shareholder in the corporation at any time during such taxable year or years agrees to make such adjustments (consistent with the treatment of the corporation as a New York S corporation) as may be required by the commissioner with respect to such year or years, S. 8009--A 44 A. 9009--A (3) then] such corporation shall be treated as [a New York] AN ELIGI- BLE S corporation SUBJECT TO SUBSECTION (A) OF THIS SECTION during [such] THE year or years FOR WHICH SUCH ELECTION HAS BEEN VALIDATED. [(g) Transitional rule. Any election made under this section (as in effect for taxable years beginning before January first, nineteen hundred eighty-three) shall be treated as an election made under subsection (a) of this section. (h) Cross reference. For definitions relating to S corporations, see subdivision one-A of section two hundred eight of this chapter. (i) Mandated New York S corporation election. (1) Notwithstanding the provisions in subsection (a) of this section, in the case of an eligible S corporation for which the election under subsection (a) of this section is not in effect for the current taxable year, the shareholders of an eligible S corporation are deemed to have made that election effective for the eligible S corporation's entire current taxable year, if the eligible S corporation's investment income for the current taxa- ble year is more than fifty percent of its federal gross income for such year. In determining whether an eligible S corporation is deemed to have made that election, the income of a qualified subchapter S subsidiary owned directly or indirectly by the eligible S corporation shall be included with the income of the eligible S corporation. (2) For the purposes of this subsection, the term "eligible S corpo- ration" has the same definition as in subsection (a) of this section. (3) For the purposes of this subsection, the term "investment income" means the sum of an eligible S corporation's gross income from interest, dividends, royalties, annuities, rents and gains derived from dealings in property, including the corporation's share of such items from a partnership, estate or trust, to the extent such items would be includa- ble in federal gross income for the taxable year. (4) Estimated tax payments. When making estimated tax payments required to be made under this chapter in the current tax year, the eligible S corporation and its shareholders may rely on the eligible S corporation's filing status for the prior year. If the eligible S corpo- ration's filing status changes from the prior tax year the corporation or the shareholders, as the case may be, which made the payments shall be entitled to a refund of such estimated tax payments. No additions to tax with respect to any required declarations or payments of estimated tax imposed under this chapter shall be imposed on the corporation or shareholders, whichever is the taxpayer for the current taxable year, if the corporation or the shareholders file such declarations and make such estimated tax payments by January fifteenth of the following calendar year, regardless of whether the taxpayer's tax year is a calendar or a fiscal year.] § 19. Transition rules. Any prior net operating loss conversion subtraction and net operating loss carryforward that otherwise would have been allowed under subparagraphs (viii) and (ix), respectively, of paragraph (a) of subdivision 1 of section 210 of the tax law for the taxable years beginning on or after January 1, 2023 to any taxpayer that was a New York C corporation for a taxable year beginning on or after January 1, 2022 and before January 1, 2023, and that becomes a New York S corporation for a taxable year beginning on or after January 1, 2023 as a result of the amendments made by this act, shall be held in abey- ance and be available to such taxpayer if its election to be a federal S corporation is terminated. Further, any credit carryforwards allowed to such a taxpayer under section 210-B of the tax law shall be held in abeyance and be available to such taxpayer if its election to be a S. 8009--A 45 A. 9009--A federal S corporation is terminated. However, the taxpayer's years as a New York S corporation shall be counted for purposes of computing any time period applicable to the allowance of the prior net operating loss conversion subtraction or carryforward, the net operating loss deduction, or any credit carryforward. § 20. This act shall take effect immediately and shall apply to taxa- ble years beginning on or after January 1, 2023. PART S Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of section 210-B of the tax law, as amended by section 2 of part P of chap- ter 59 of the laws of 2017, is amended to read as follows: (i) A credit shall be allowed under this subdivision with respect to tangible personal property and other tangible property, including build- ings and structural components of buildings, which are: depreciable pursuant to section one hundred sixty-seven of the internal revenue code, have a useful life of four years or more, are acquired by purchase as defined in section one hundred seventy-nine (d) of the internal revenue code, have a situs in this state and are (A) principally used by the taxpayer in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horti- culture, floriculture, viticulture or commercial fishing, (B) industrial waste treatment facilities or air pollution control facilities, used in the taxpayer's trade or business, (C) research and development property, or (D) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section four hundred seventy-five (e) of the Internal Revenue Code, (E) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regu- lated investment company as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan orig- ination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, (F) principally used in the ordinary course of the taxpay- er's business as an exchange registered as a national securities exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi- ties Exchange Act of 1934 or a board of trade as defined in subparagraph one of paragraph (a) of section fourteen hundred ten of the not-for-pro- fit corporation law or as an entity that is wholly owned by one or more such national securities exchanges or boards of trade and that provides automation or technical services thereto, or (G) principally used as a qualified film production facility including qualified film production facilities having a situs in an empire zone designated as such pursuant to article eighteen-B of the general municipal law, where the taxpayer is providing three or more services to any qualified film production company using the facility, including such services as a studio lighting grid, lighting and grip equipment, multi-line phone service, broadband information technology access, industrial scale electrical capacity, food services, security services, and heating, ventilation and air S. 8009--A 46 A. 9009--A conditioning. For purposes of clauses (D), (E) and (F) of this subpara- graph, property purchased by a taxpayer affiliated with a regulated broker, dealer, registered investment advisor, national securities exchange or board of trade, is allowed a credit under this subdivision if the property is used by its affiliated regulated broker, dealer, registered investment advisor, national securities exchange or board of trade in accordance with this subdivision. For purposes of determining if the property is principally used in qualifying uses, the uses by the taxpayer described in clauses (D) and (E) of this subparagraph may be aggregated. In addition, the uses by the taxpayer, its affiliated regu- lated broker, dealer and registered investment advisor under either or both of those clauses may be aggregated. Provided, however, a taxpayer shall not be allowed the credit provided by clauses (D), (E) and (F) of this subparagraph unless the property is first placed in service before October first, two thousand fifteen and (i) eighty percent or more of the employees performing the administrative and support functions resulting from or related to the qualifying uses of such equipment are located in this state or (ii) the average number of employees that perform the administrative and support functions resulting from or related to the qualifying uses of such equipment and are located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety-five percent of the average number of employ- ees that perform these functions and are located in this state during the thirty-six months immediately preceding the year for which the cred- it is claimed, or (iii) the number of employees located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety percent of the number of employees located in this state on December thirty-first, nineteen hundred ninety-eight or, if the taxpayer was not a calendar year taxpayer in nineteen hundred ninety- eight, the last day of its first taxable year ending after December thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in this state after the taxable year beginning in nine- teen hundred ninety-eight, then the taxpayer is not required to satisfy the employment test provided in the preceding sentence of this subpara- graph for its first taxable year. For purposes of clause (iii) of this subparagraph the employment test will be based on the number of employ- ees located in this state on the last day of the first taxable year the taxpayer is subject to tax in this state. If the uses of the property must be aggregated to determine whether the property is principally used in qualifying uses, then either each affiliate using the property must satisfy this employment test or this employment test must be satisfied through the aggregation of the employees of the taxpayer, its affiliated regulated broker, dealer, and registered investment adviser using the property. For purposes of clause (A) of this subparagraph, tangible personal property and other tangible property shall not include property principally used by the taxpayer (I) in the production or distribution of electricity, natural gas after extraction from wells, steam, or water delivered through pipes and mains, OR (II) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDIUM, OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELEVISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS, OR IN THE DUPLICATION, FOR PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELEVISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS. S. 8009--A 47 A. 9009--A § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 of the tax law, as amended by section 3 of part P of chapter 59 of the laws of 2017, is amended to read as follows: (A) A credit shall be allowed under this subsection with respect to tangible personal property and other tangible property, including build- ings and structural components of buildings, which are: depreciable pursuant to section one hundred sixty-seven of the internal revenue code, have a useful life of four years or more, are acquired by purchase as defined in section one hundred seventy-nine (d) of the internal revenue code, have a situs in this state and are (i) principally used by the taxpayer in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horti- culture, floriculture, viticulture or commercial fishing, (ii) indus- trial waste treatment facilities or air pollution control facilities, used in the taxpayer's trade or business, (iii) research and development property, (iv) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, enter- ing into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section 475(e) of the Internal Revenue Code, (v) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regulated investment compa- ny as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan origination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or (vi) principally used as a qualified film production facility includ- ing qualified film production facilities having a situs in an empire zone designated as such pursuant to article eighteen-B of the general municipal law, where the taxpayer is providing three or more services to any qualified film production company using the facility, including such services as a studio lighting grid, lighting and grip equipment, multi- line phone service, broadband information technology access, industrial scale electrical capacity, food services, security services, and heat- ing, ventilation and air conditioning. For purposes of clauses (iv) and (v) of this subparagraph, property purchased by a taxpayer affiliated with a regulated broker, dealer, or registered investment adviser is allowed a credit under this subsection if the property is used by its affiliated regulated broker, dealer or registered investment adviser in accordance with this subsection. For purposes of determining if the property is principally used in qualifying uses, the uses by the taxpay- er described in clauses (iv) and (v) of this subparagraph may be aggre- gated. In addition, the uses by the taxpayer, its affiliated regulated broker, dealer and registered investment adviser under either or both of those clauses may be aggregated. Provided, however, a taxpayer shall not be allowed the credit provided by clauses (iv) and (v) of this subpara- graph unless (I) eighty percent or more of the employees performing the administrative and support functions resulting from or related to the qualifying uses of such equipment are located in this state, or (II) the average number of employees that perform the administrative and support functions resulting from or related to the qualifying uses of such equipment and are located in this state during the taxable year for S. 8009--A 48 A. 9009--A which the credit is claimed is equal to or greater than ninety-five percent of the average number of employees that perform these functions and are located in this state during the thirty-six months immediately preceding the year for which the credit is claimed, or (III) the number of employees located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety percent of the number of employees located in this state on December thirty-first, nineteen hundred ninety-eight or, if the taxpayer was not a calendar year taxpayer in nineteen hundred ninety-eight, the last day of its first taxable year ending after December thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in this state after the taxable year beginning in nineteen hundred ninety-eight, then the taxpayer is not required to satisfy the employment test provided in the preceding sentence of this subparagraph for its first taxable year. For the purposes of clause (III) of this subparagraph the employment test will be based on the number of employees located in this state on the last day of the first taxable year the taxpayer is subject to tax in this state. If the uses of the property must be aggregated to determine whether the property is principally used in qualifying uses, then either each affiliate using the property must satisfy this employment test or this employment test must be satisfied through the aggregation of the employees of the taxpayer, its affiliated regulated broker, dealer, and registered investment adviser using the property. For purposes of clause (i) of this subparagraph, tangible personal property and other tangible property shall not include property principally used by the taxpayer (A) in the production or distribution of electricity, natural gas after extraction from wells, steam, or water delivered through pipes and mains, OR (B) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDI- UM, OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELEVISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS, OR IN THE DUPLICATION, FOR PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELE- VISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS. § 3. This act shall take effect immediately, and shall apply to prop- erty placed in service on or after January 1, 2023. PART T Section 1. Section 301-b of the tax law is amended by adding a new subdivision (j) to read as follows: (J) EXEMPTION FOR TUGBOATS AND TOWBOATS. THE USE BY A TUGBOAT OR TOWBOAT OF MOTOR FUEL, DIESEL MOTOR FUEL, OR RESIDUAL PETROLEUM PRODUCT. PROVIDED, THAT THE COMMISSIONER SHALL REQUIRE SUCH DOCUMENTARY PROOF TO QUALIFY FOR ANY EXEMPTION PROVIDED HEREUNDER AS THE COMMISSIONER DEEMS APPROPRIATE. § 2. The opening paragraph of section 301-c of the tax law, as amended by section 5 of part W-1 of chapter 109 of the laws of 2006, is amended to read as follows: A subsequent purchaser shall be eligible for reimbursement of tax with respect to the following gallonage, subsequently sold by such purchaser in accordance with subdivision (a), (b), (e), (h), (j), (k), (n) or (o) of this section or used by such purchaser in accordance with subdivision (c), (d), (f), (g), (i), (l) [or], (m) OR (Q) of this section, which gallonage has been included in the measure of the tax imposed by this article on a petroleum business: S. 8009--A 49 A. 9009--A § 3. The opening paragraph of section 301-c of the tax law, as amended by chapter 468 of the laws of 2000, is amended to read as follows: A subsequent purchaser shall be eligible for reimbursement of tax with respect to the following gallonage, subsequently sold by such purchaser in accordance with subdivision (a), (b), (e), (h), (j) or (k) of this section or used by such purchaser in accordance with subdivision (c), (d), (f), (g), (i), (l) [or], (m) OR (Q) of this section, which gallo- nage has been included in the measure of the tax imposed by this article on a petroleum business: § 4. Section 301-c of the tax law is amended by adding a new subdivi- sion (q) to read as follows: (Q) REIMBURSEMENT FOR TUGBOATS AND TOWBOATS. A USE BY A TUGBOAT OR TOWBOAT OF MOTOR FUEL, DIESEL MOTOR FUEL, OR RESIDUAL PETROLEUM PRODUCT. THIS REIMBURSEMENT MAY BE CLAIMED ONLY WHERE (1) ANY TAX IMPOSED PURSU- ANT TO THIS ARTICLE HAS BEEN PAID WITH RESPECT TO SUCH GALLONAGE AND THE ENTIRE AMOUNT OF SUCH TAX HAS BEEN ABSORBED BY SUCH PURCHASER, AND (2) SUCH TUGBOAT OR TOWBOAT POSSESSES DOCUMENTARY PROOF SATISFACTORY TO THE COMMISSIONER EVIDENCING THE ABSORPTION BY IT OF THE ENTIRE AMOUNT OF SUCH TAX. PROVIDED, THAT THE COMMISSIONER SHALL REQUIRE SUCH DOCUMENTARY PROOF TO QUALIFY FOR ANY REIMBURSEMENT PROVIDED HEREUNDER AS THE COMMIS- SIONER DEEMS APPROPRIATE. § 5. This act shall take effect September 1, 2022, and shall apply to uses of motor fuel, diesel motor fuel and residual petroleum product on and after such date; provided however that the amendments to the opening paragraph of section 301-c of the tax law made by section two of this act shall be subject to the expiration and reversion of such paragraph pursuant to section 19 of part W-1 of chapter 109 of the laws of 2006, as amended, when upon such date the provisions of section three of this act shall take effect. PART U Section 1. Subparagraph (i) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (i) is added to read as follows: (I) WITH RESPECT TO A CITY OF ONE MILLION OR MORE AND THE FOLLOWING COUNTIES: (1) ANY SUCH CITY HAVING A POPULATION OF ONE MILLION OR MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDI- NANCES OR RESOLUTIONS IMPOSING SUCH TAXES IN ANY SUCH CITY, AT THE RATE OF FOUR AND ONE-HALF PERCENT; (2) THE FOLLOWING COUNTIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF THREE PERCENT AS AUTHORIZED ABOVE IN THIS PARAGRAPH ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARAGRAPH: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CAYUGA, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, FULTON, GENESEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MADISON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHESTER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU; S. 8009--A 50 A. 9009--A (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA. (E) PROVIDED, HOWEVER, THAT (I) THE COUNTY OF ROCKLAND MAY IMPOSE ADDITIONAL RATES OF FIVE-EIGHTHS PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS; (II) THE COUNTY OF ONTARIO MAY IMPOSE ADDITIONAL RATES OF ONE-EIGHTH PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS; (III) THREE-QUARTERS PERCENT OF THE ADDITIONAL RATE AUTHORIZED TO BE IMPOSED BY THE COUNTY OF NASSAU SHALL BE SUBJECT TO THE LIMITATION SET FORTH IN SECTION TWELVE HUNDRED SIXTY- TWO-E OF THIS ARTICLE. § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (ii) is added to read as follows: (II) THE FOLLOWING CITIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF ONE AND ONE-HALF PERCENT OR HIGHER AS AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH CITIES ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDI- TIONAL TO THE ONE AND ONE-HALF PERCENT OR HIGHER RATES AUTHORIZED ABOVE IN THIS PARAGRAPH: (1) ONE PERCENT - MOUNT VERNON; NEW ROCHELLE; OSWEGO; WHITE PLAINS; (2) ONE AND ONE-QUARTER PERCENT - NONE; (3) ONE AND ONE-HALF PERCENT - YONKERS. § 3. Subparagraphs (iii) and (iv) of the opening paragraph of section 1210 of the tax law are REPEALED and a new subparagraph (iii) is added to read as follows: (III) THE MAXIMUM RATE REFERRED TO IN SECTION TWELVE HUNDRED TWENTY- FOUR OF THIS ARTICLE SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDI- TIONAL RATES AUTHORIZED FOR COUNTIES, OTHER THAN THE COUNTIES OF CAYUGA, CORTLAND, FULTON, MADISON, AND OTSEGO, IN CLAUSE TWO OF SUBPARAGRAPH (I) AND THE CITIES IN SUBPARAGRAPH (II) OF THIS PARAGRAPH. § 4. Section 1210 of the tax law is amended by adding a new subdivi- sion (p) to read as follows: (P) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR ANY OTHER LAW TO THE CONTRARY, A COUNTY AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OR RATES OF SALES AND COMPENSATING USE TAXES BY CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF THIS SECTION, OR A CITY, OTHER THAN THE CITY OF MOUNT VERNON, AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OF SUCH TAXES BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH, MAY ADOPT A LOCAL LAW, ORDINANCE, OR RESOLUTION BY A MAJORITY VOTE OF ITS GOVERNING BODY IMPOS- ING SUCH RATE OR RATES FOR A PERIOD NOT TO EXCEED TWO YEARS, AND ANY SUCH PERIOD MUST END ON NOVEMBER THIRTIETH OF AN ODD-NUMBERED YEAR. NOTWITHSTANDING THE PRECEDING SENTENCE, THE CITY OF WHITE PLAINS IS AUTHORIZED TO EXCEED SUCH TWO-YEAR LIMITATION TO IMPOSE THE TAX AUTHOR- IZED BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH FOR THE PERIOD COMMENCING ON SEPTEMBER FIRST, TWO THOUSAND TWENTY-THREE AND ENDING ON NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-FIVE. ANY SUCH LOCAL LAW, ORDI- NANCE, OR RESOLUTION SHALL ALSO BE SUBJECT TO THE PROVISIONS OF SUBDIVI- SIONS (D) AND (E) OF THIS SECTION. § 5. Section 1210-E of the tax law is REPEALED. § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1), (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section 1224 of the tax law are REPEALED. S. 8009--A 51 A. 9009--A § 7. Section 1224 of the tax law is amended by adding three new subdi- visions (d), (e), and (f) to read as follows: (D) FOR PURPOSES OF THIS SECTION, THE TERM "PRIOR RIGHT" SHALL MEAN THE PREFERENTIAL RIGHT TO IMPOSE ANY TAX DESCRIBED IN SECTIONS TWELVE HUNDRED TWO AND TWELVE HUNDRED THREE, OR TWELVE HUNDRED TEN AND TWELVE HUNDRED ELEVEN, OF THIS ARTICLE AND THEREBY TO PREEMPT SUCH TAX AND TO PRECLUDE ANOTHER MUNICIPAL CORPORATION FROM IMPOSING OR CONTINUING THE IMPOSITION OF SUCH TAX TO THE EXTENT THAT SUCH RIGHT IS EXERCISED. HOWEVER, THE RIGHT OF PREEMPTION SHALL ONLY APPLY WITHIN THE TERRITORIAL LIMITS OF THE TAXING JURISDICTION HAVING THE RIGHT OF PREEMPTION. (E) EACH OF THE FOLLOWING COUNTIES AND CITIES SHALL HAVE THE SOLE RIGHT TO IMPOSE THE FOLLOWING ADDITIONAL RATE OF SALES AND COMPENSATING USE TAXES IN EXCESS OF THREE PERCENT THAT SUCH COUNTY OR CITY IS AUTHOR- IZED TO IMPOSE PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OR SUBPARA- GRAPH (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE. SUCH ADDITIONAL RATES OF TAX SHALL NOT BE SUBJECT TO PREEMPTION. (1) COUNTIES: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, GENE- SEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHESTER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU; (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA. (E) PROVIDED, HOWEVER, THAT THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE ADDITIONAL ONE PERCENT RATE OF TAX WHICH SUCH COUNTY IS AUTHORIZED TO IMPOSE PURSUANT TO THE AUTHORITY OF CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE IN THE AREA OF THE COUNTY OUTSIDE THE CITIES OF MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS, AND YONKERS. (2) CITIES: (A) ONE-QUARTER OF ONE PERCENT - ROME; (B) ONE-HALF OF ONE PERCENT - NONE; (C) THREE-QUARTERS OF ONE PERCENT - NONE; (D) ONE PERCENT - MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS; (E) ONE AND ONE-QUARTER PERCENT - NONE; (F) ONE AND ONE-HALF PERCENT - YONKERS. (F) EACH OF THE FOLLOWING CITIES IS AUTHORIZED TO PREEMPT THE TAXES IMPOSED BY THE COUNTY IN WHICH IT IS LOCATED PURSUANT TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, TO THE EXTENT OF ONE-HALF THE MAXIMUM AGGREGATE RATE AUTHORIZED UNDER SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, INCLUDING THE ADDITIONAL RATE THAT THE COUNTY IN WHICH SUCH CITY IS LOCATED IS AUTHORIZED TO IMPOSE: AUBURN, IN CAYUGA COUNTY; CORTLAND, IN CORTLAND COUNTY; GLOVERSVILLE AND JOHNSTOWN, IN FULTON COUNTY; ONEIDA, IN MADISON COUNTY; ONEONTA, IN OTSEGO COUNTY. AS OF THE DATE THIS SUBDIVISION TAKES EFFECT, ANY SUCH PREEMPTION BY SUCH A CITY IN EFFECT ON SUCH DATE SHALL CONTINUE IN FULL FORCE AND EFFECT UNTIL THE EFFECTIVE DATE OF A LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED OR AMENDED BY THE CITY TO CHANGE SUCH PREEMPTION. ANY PREEMPTION BY SUCH A CITY PURSUANT TO THIS SUBDIVISION THAT TAKES EFFECT AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL BE SUBJECT TO THE NOTICE REQUIREMENTS IN S. 8009--A 52 A. 9009--A SECTION TWELVE HUNDRED TWENTY-THREE OF THIS SUBPART AND TO THE OTHER REQUIREMENTS OF THIS ARTICLE. § 8. Section 1262-g of the tax law, as amended by section 2 of item DD of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-g. Oneida county allocation and distribution of net collections from the additional [one percent rate] RATES of sales and compensating use taxes. Notwithstanding any contrary provision of law, (A) if the county of Oneida imposes sales and compensating use taxes at a rate which is one percent additional to the three percent rate authorized by section twelve hundred ten of this article, as authorized by such section, [(a)] (I) where a city in such county imposes tax pursuant to the authority of subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city one-half of the net collections attributable to such additional one percent rate of the county's taxes collected in such city's boundaries; [(b)] (II) where a city in such county does not impose tax pursuant to the authority of such subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city not so imposing tax a portion of the net collections attribut- able to one-half of the county's additional one percent rate of tax calculated on the basis of the ratio which such city's population bears to the county's total population, such populations as determined in accordance with the latest decennial federal census or special popu- lation census taken pursuant to section twenty of the general municipal law completed and published prior to the end of the quarter for which the allocation is made, which special census must include the entire area of the county; [and (c)] provided, however, that such county shall dedicate the first one million five hundred thousand dollars of net collections attributable to such additional one percent rate of tax received by such county after the county receives in the aggregate eigh- teen million five hundred thousand dollars of net collections from such additional one percent rate of tax [imposed for any of the periods: September first, two thousand twelve through August thirty-first, two thousand thirteen; September first, two thousand thirteen through August thirty-first, two thousand fourteen; and September first, two thousand fourteen through August thirty-first, two thousand fifteen; September first, two thousand fifteen through August thirty-first, two thousand sixteen; and September first, two thousand sixteen through August thir- ty-first, two thousand seventeen; September first, two thousand seven- teen through August thirty-first, two thousand eighteen; September first, two thousand eighteen through August thirty-first, two thousand twenty; and September first, two thousand twenty through August thirty- first, two thousand twenty-three,] to an allocation on a per capita basis, utilizing figures from the latest decennial federal census or special population census taken pursuant to section twenty of the gener- al municipal law, completed and published prior to the end of the year for which such allocation is made, which special census must include the entire area of such county, to be allocated and distributed among the towns of Oneida county by appropriation of its board of legislators; provided, further, that nothing herein shall require such board of legislators to make any such appropriation until it has been notified by any town by appropriate resolution and, in any case where there is a village wholly or partly located within a town, a resolution of every such village, embodying the agreement of such town and village or villages upon the amount of such appropriation to be distributed to such S. 8009--A 53 A. 9009--A village or villages out of the allocation to the town or towns in which it is located. (B) IF THE COUNTY OF ONEIDA IMPOSES SALES AND COMPENSAT- ING USE TAXES AT A RATE WHICH IS ONE AND THREE-QUARTERS PERCENT ADDI- TIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, AS AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARA- GRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS ATTRIBUTABLE TO THE ADDITIONAL THREE-QUARTERS PERCENT OF SUCH ADDITIONAL RATE SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 9. The opening paragraph of section 1262-r of the tax law, as added by chapter 37 of the laws of 2006, is amended to read as follows: (1) NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF ONTARIO IMPOSES THE ADDITIONAL ONE-EIGHTH OF ONE PERCENT AND THE ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATES OF TAX AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM THE SUCH ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATE OF SUCH TAXES SHALL BE SET ASIDE FOR COUNTY PURPOSES AND SHALL NOT BE SUBJECT TO ANY AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART OR THIS SECTION. (2) Notwithstanding the provisions of subdivision (c) of section twelve hundred sixty-two of this part to the contrary, if the cities of Canandaigua and Geneva in the county of Ontario do not impose sales and compensating use taxes pursuant to the authority of section twelve hundred ten of this article and such cities and county enter into an agreement pursuant to the authority of subdivision (c) of section twelve hundred sixty-two of this part to be effective March first, two thousand six, such agreement may provide that: § 10. The tax law is amended by adding a new section 1262-v to read as follows: § 1262-V. DISPOSITION OF NET COLLECTIONS FROM THE ADDITIONAL RATE OF SALES AND COMPENSATING USE TAX IN CLINTON COUNTY. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF CLINTON IMPOSES THE ADDI- TIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM SUCH ADDITIONAL RATE SHALL BE PAID TO THE COUNTY AND THE COUNTY SHALL SET ASIDE SUCH NET COLLECTIONS AND USE THEM SOLELY FOR COUNTY PURPOSES. SUCH NET COLLECTIONS SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREE- MENT ENTERED INTO BY THE COUNTY AND THE CITY IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 11. Section 1262-s of the tax law, as amended by section 3 of item U of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-s. Disposition of net collections from the additional one-quar- ter of one percent rate of sales and compensating use taxes in the coun- ty of Herkimer. Notwithstanding any contrary provision of law, if the county of Herkimer imposes [the additional] SALES AND COMPENSATING USE TAX AT A RATE THAT IS ONE AND one-quarter [of one] percent [rate of sales and compensating use taxes] ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE AS authorized by [section twelve hundred ten-E] CLAUSE TWO OF SUBPARAGRAPH (I) OF THE S. 8009--A 54 A. 9009--A OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN of this article [for all or any portion of the period beginning December first, two thousand seven and ending November thirtieth, two thousand twenty-three], the county shall use all net collections [from such] ATTRIBUTABLE TO THE additional one-quarter [of one] percent OF SUCH ADDITIONAL rate to pay the county's expenses for the construction of additional correctional facilities. The net collections from [the] SUCH ADDITIONAL ONE-QUARTER PERCENT OF SUCH additional rate [imposed pursuant to section twelve hundred ten-E of this article] shall be deposited in a special fund to be created by such county separate and apart from any other funds and accounts of the county. Any and all remaining net collections from such additional tax, after the expenses of such construction are paid, shall be deposited by the county of Herkimer in the general fund of such coun- ty for any county purpose. § 12. The tax law is amended by adding a new section 1265 to read as follows: § 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES OR TO EXPIRATIONS OF A PERIOD. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY: (A) ANY REFERENCE IN ANY SECTION OF THIS CHAPTER OR OTHER LAW, OR IN ANY LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED PURSUANT TO THE AUTHORITY OF THIS ARTICLE, TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY A COUNTY OR CITY PURSUANT TO THE AUTHORITY OF A CLAUSE, OR TO A SUBCLAUSE OF A CLAUSE, OF SUBPARAGRAPH (I) OR (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE REPEALED BY SECTION ONE OR TWO OF A PART OF A CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO THAT ADDED THIS SECTION OR PURSUANT TO SECTION TWELVE HUNDRED TEN-E OF THIS ARTICLE REPEALED BY SECTION FIVE OF SUCH PART SHALL BE DEEMED TO BE A REFERENCE TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY THAT COUNTY OR CITY PURSUANT TO THE AUTHORITY OF THE EQUIV- ALENT PROVISION OF CLAUSE TWO OF SUBPARAGRAPH (I) OR TO SUBPARAGRAPH (II) OF THE OPENING PARAGRAPH OF SUCH SECTION TWELVE HUNDRED TEN AS ADDED BY SUCH SECTION ONE OR TWO OF SUCH PART OF A CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-TWO; (B) ANY REFERENCE IN THIS CHAPTER OR IN ANY OTHER LAW RELATING TO THE EXPIRATION OF A PROVISION CONCERNING THE DISTRIBUTION OF REVENUE FROM THE TAXES AUTHORIZED TO BE IMPOSED BY THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE SHALL BE DISREGARDED, AND SUCH PROVISION SHALL CONTINUE IN EFFECT UNLESS LATER AMENDED OR REPEALED. § 13. This act shall take effect immediately. PART V Section 1. Subdivision (c) of section 1101 of the tax law, as added by chapter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended by section 2 and paragraph 8 as added by section 3 of part AA of chapter 57 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the laws of 1965, is amended to read as follows: (c) When used in this article for the purposes of the tax imposed under subdivision (e) of section eleven hundred five OF THIS ARTICLE, the following terms shall mean: (1) Hotel. A building or portion of it which is regularly used and kept open as such for the lodging of guests. The term "hotel" includes an apartment hotel, a motel, boarding house or club, whether or not meals are served. (2) Occupancy. The use or possession, or the right to the use or possession, of any room in a hotel OR VACATION RENTAL. "Right to the S. 8009--A 55 A. 9009--A use or possession" includes the rights of a room remarketer as described in paragraph eight of this subdivision. (3) Occupant. A person who, for a consideration, uses, possesses, or has the right to use or possess, any room in a hotel OR VACATION RENTAL under any lease, concession, permit, right of access, license to use or other agreement, or otherwise. "Right to use or possess" includes the rights of a room remarketer as described in paragraph eight of this subdivision. (4) Operator. Any person operating a hotel OR VACATION RENTAL. Such term shall include a room remarketer and such room remarketer shall be deemed to operate a hotel, or portion thereof, with respect to which such person has the rights of a room remarketer. (5) Permanent resident. Any occupant of any room or rooms in a hotel OR VACATION RENTAL for at least ninety consecutive days shall be consid- ered a permanent resident with regard to the period of such occupancy. (6) Rent. The consideration received for occupancy, including any service or other charge or amount required to be paid as a condition for occupancy, valued in money, whether received in money or otherwise and whether received by the operator or a room remarketer or another person on behalf of either of them. (7) Room. Any room or rooms of any kind in any part or portion of a hotel OR VACATION RENTAL, which is available for or let out for any purpose other than a place of assembly. (8) Room remarketer. A person who reserves, arranges for, conveys, or furnishes occupancy, whether directly or indirectly, to an occupant for rent in A HOTEL FOR an amount determined by the room remarketer, direct- ly or indirectly, whether pursuant to a written or other agreement. Such person's ability or authority to reserve, arrange for, convey, or furnish occupancy, directly or indirectly, and to determine rent there- for, shall be the "rights of a room remarketer". A room remarketer is not a permanent resident with respect to a room for which such person has the rights of a room remarketer. (9) VACATION RENTAL. A BUILDING OR PORTION OF IT THAT IS USED FOR THE LODGING OF GUESTS. THE TERM "VACATION RENTAL" INCLUDES A HOUSE, AN APARTMENT, A CONDOMINIUM, A COOPERATIVE UNIT, A CABIN, A COTTAGE, OR A BUNGALOW, OR ONE OR MORE ROOMS THEREIN, WHERE SLEEPING ACCOMMODATIONS ARE PROVIDED FOR THE LODGING OF PAYING OCCUPANTS, THE TYPICAL OCCUPANTS ARE TRANSIENTS OR TRAVELERS, AND THE RELATIONSHIP BETWEEN THE OPERATOR AND OCCUPANT IS NOT THAT OF A LANDLORD AND TENANT. IT IS NOT NECESSARY THAT MEALS ARE SERVED. A BUILDING OR PORTION OF A BUILDING MAY QUALIFY AS A VACATION RENTAL WHETHER OR NOT AMENITIES, INCLUDING BUT NOT LIMITED TO DAILY HOUSEKEEPING SERVICES, CONCIERGE SERVICES, OR LINEN SERVICES, ARE PROVIDED. (10) (I) VACATION RENTAL MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH AN OPERATOR, FACILITATES THE OCCUPANCY OF A VACA- TION RENTAL BY SUCH OPERATOR OR OPERATORS. A PERSON "FACILITATES THE OCCUPANCY OF A VACATION RENTAL" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE OF THE OCCUPANCY TAKES PLACE OR THE OFFER OF SUCH SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTERNET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE RENT PAID BY A CUSTOMER TO AN OPERATOR FOR THE OCCUPANCY OF A VACATION RENTAL, OR CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RENT. (II) FOR THE PURPOSES OF THIS ARTICLE, THE TERM "VACATION RENTAL MARKETPLACE PROVIDER" SHALL NOT INCLUDE A "ROOM REMARKETER" AS DEFINED S. 8009--A 56 A. 9009--A IN PARAGRAPH EIGHT OF THIS SUBDIVISION. FOR PURPOSES OF THIS PARAGRAPH, PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN ANOTHER, OR WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDI- RECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO EACH OTHER. THE TERM "VACATION RENTAL MARKETPLACE PROVIDER" SHALL NOT INCLUDE A "REAL ESTATE BROKER" AS LICENSED UNDER ARTICLE TWELVE-A OF THE REAL PROPERTY LAW. § 2. Subdivision (a) of section 1104 of the tax law, as added by chap- ter 3 of the laws of 2004, is amended to read as follows: (a) Imposition. In addition to any other fee or tax imposed by this article or any other law, on and after April first, two thousand five, there is hereby imposed within the territorial limits of a city with a population of a million or more and there shall be paid a unit fee on every occupancy of a unit in a hotel OR VACATION RENTAL in such city at the rate of one dollar and fifty cents per unit per day, except that such unit fee shall not be imposed upon (1) occupancy by a permanent resident or (2) where the rent per unit is not more than at the rate of two dollars per day. § 3. Paragraph 1 of subdivision (e) of section 1105 of the tax law, as amended by section 1 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (1) The rent for every occupancy of a room or rooms in a hotel AND VACATION RENTAL in this state, except that the tax shall not be imposed upon (i) a permanent resident, or (ii) where the rent is not more than at the rate of two dollars per day. § 4. Subdivisions 1 and 2 of section 1131 of the tax law, subdivision 1 as amended by section 2 of part G of chapter 59 of the laws of 2019 and subdivision 2 as added by chapter 93 of the laws of 1965, are amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; every operator of a hotel OR VACATION RENTAL; EVERY VACATION RENTAL MARKETPLACE PROVIDER WITH RESPECT TO THE RENT FOR EVERY OCCUPANCY OF A VACATION RENTAL IT FACILITATES AS DESCRIBED IN PARAGRAPH TEN OF SUBDIVI- SION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE; and every marketplace provider with respect to sales of tangible personal property it facilitates as described in paragraph one of subdivision (e) of section eleven hundred one of this article. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liability company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, or has so acted; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph [(8)] EIGHT of subdivision (b) of section eleven hundred one of this article shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four of this part. SUCH TERMS SHALL NOT INCLUDE AN OPERATOR OF A VACATION RENTAL WHO RENTS OUT THE OPERATOR'S S. 8009--A 57 A. 9009--A OWN PROPERTY FOR THREE DAYS OR FEWER IN A CALENDAR YEAR AND DOES NOT USE A VACATION RENTAL MARKETPLACE PROVIDER TO FACILITATE SUCH RENTAL. (2) "Customer" shall include: every purchaser of tangible personal property or services; every patron paying or liable for the payment of any amusement charge; and every occupant of a room or rooms in a hotel OR VACATION RENTAL. § 5. Section 1132 of the tax law is amended by adding a new subdivi- sion (m) to read as follows: (M)(L) A VACATION RENTAL MARKETPLACE PROVIDER WITH RESPECT TO A SALE FOR EVERY OCCUPANCY OF A VACATION RENTAL IT FACILITATES: (A) SHALL HAVE ALL THE OBLIGATIONS AND RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTI- CLE TWENTY-NINE OF THIS CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSU- ANT THERETO, INCLUDING, BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIF- ICATE OF AUTHORITY, TO COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIFICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISIONS; AND (B) SHALL KEEP SUCH RECORDS AND INFORMATION AND COOPERATE WITH THE COMMISSIONER TO ENSURE THE PROPER COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER. (2) AN OPERATOR IS RELIEVED FROM THE DUTY TO COLLECT TAX IN REGARD TO A PARTICULAR RENT FOR THE OCCUPANCY OF A VACATION RENTAL SUBJECT TO TAX UNDER SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND SHALL NOT INCLUDE THE RENT FROM SUCH OCCUPANCY IN ITS TAXABLE SALES FOR PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART IF, IN REGARD TO SUCH OCCUPANCY: (A) THE OPERATOR OF THE VACATION RENTAL CAN SHOW THAT SUCH OCCUPANCY WAS FACILITATED BY A VACATION RENTAL MARKETPLACE PROVIDER FROM WHOM SUCH OPERATOR HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE VACATION RENTAL MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF OCCUPANCY OF A VACATION RENTAL BY THE OPERATOR FACILITATED BY THE VACA- TION RENTAL MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (B) ANY FAILURE OF THE VACATION RENTAL MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH OPERATOR PROVIDING THE VACATION RENTAL MARKETPLACE PROVIDER WITH INCORRECT INFORMATION. THIS PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIFICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH CERTIF- ICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE OPERATOR. PROVIDED THAT, WITH REGARD TO ANY SALES OF OCCUPANCY OF A VACATION RENTAL BY AN OPERATOR THAT ARE FACILITATED BY A VACATION RENTAL MARKET- PLACE PROVIDER WHO IS AFFILIATED WITH SUCH OPERATOR WITHIN THE MEANING OF PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, THE OPERATOR SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH VACATION RENTAL MARKETPLACE PROVIDER FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART. (3) THE COMMISSIONER MAY, AT HIS OR HER DISCRETION: (A) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A VACATION RENTAL MARKETPLACE PROVIDER, IN WHICH THE VACATION RENTAL MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL OPERATORS S. 8009--A 58 A. 9009--A FOR WHOM THE VACATION RENTAL MARKETPLACE PROVIDER FACILITATES SALES OF OCCUPANCY OF A VACATION RENTAL, WITH RESPECT TO ALL SALES THAT IT FACIL- ITATES FOR SUCH OPERATORS WHERE THE RENTAL OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE VACATION RENTAL MARKET- PLACE PROVIDER AND OPERATOR WILL HAVE THE SAME EFFECT AS AN OPERATOR'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH VACATION RENTAL MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 6. Section 1133 of the tax law is amended by adding a new subdivi- sion (g) to read as follows: (G) A VACATION RENTAL MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE VACATION RENTAL MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT OR INSUFFICIENT INFORMATION GIVEN TO THE VACATION RENTAL MARKETPLACE PROVIDER BY THE OPERATOR. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE OPERATOR AND VACATION RENTAL MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 7. Subdivision (a) of section 1134 of the tax law is amended by adding a new paragraph 7 to read as follows: (7) AN OPERATOR OF A VACATION RENTAL, AS DEFINED IN PARAGRAPH NINE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, IS RELIEVED OF THE REQUIREMENT TO REGISTER IN PARAGRAPH ONE OF THIS SUBDI- VISION IF ITS SALES OF OCCUPANCY ARE WHOLLY FACILITATED BY ONE OR MORE VACATION RENTAL MARKETPLACE PROVIDERS FROM WHOM THE OPERATOR HAS RECEIVED IN GOOD FAITH A CERTIFICATE OF COLLECTION THAT MEETS THE REQUIREMENTS SET FORTH IN PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART. § 8. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 5 of part G of chapter 59 of the laws of 2019, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. The return of a marketplace seller shall exclude the receipts from a sale of tangible personal property facilitated by a marketplace provider if, in regard to such sale: (A) the marketplace seller has timely received in good faith a properly completed certif- icate of collection from the marketplace provider or the marketplace provider has included a provision approved by the commissioner in the publicly-available agreement between the marketplace provider and the marketplace seller as described in subdivision one of section eleven hundred thirty-two of this part, and (B) the information provided by the marketplace seller to the marketplace provider about such tangible personal property is accurate. THE RETURN OF AN OPERATOR SHALL EXCLUDE THE RENT FROM OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION RENTAL MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE VACATION RENTAL OPERATOR HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION FROM THE VACATION RENTAL MARKETPLACE PROVIDER S. 8009--A 59 A. 9009--A OR THE VACATION RENTAL MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE VACATION RENTAL MARKETPLACE PROVIDER AND THE OPERATOR AS DESCRIBED IN SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE OPERATOR TO THE VACATION RENTAL MARKETPLACE PROVIDER ABOUT SUCH RENT AND SUCH OCCUPANCY IS ACCURATE. § 9. Subparagraph (B) of paragraph 3 of subdivision (a) of section 1138 of the tax law, as amended by chapter 456 of the laws of 1998, is amended to read as follows: (B) The liability, pursuant to subdivision (a) of section eleven hundred thirty-three of this article, of any officer, director or employee of a corporation or of a dissolved corporation, member or employee of a partnership or employee of an individual proprietorship who as such officer, director, employee or member is under a duty to act for such corporation, partnership or individual proprietorship in complying with any requirement of this article for the tax imposed, collected or required to be collected, or for the tax required to be paid or paid over to the [tax commission] COMMISSIONER under this arti- cle, and the amount of such tax liability (whether or not a return is filed under this article, whether or not such return when filed is incorrect or insufficient, or where the tax shown to be due on the return filed under this article has not been paid or has not been paid in full) shall be determined by the [tax commission] COMMISSIONER in the manner provided for in paragraphs one and two of this subdivision. Such determination shall be an assessment of the tax and liability for the tax with respect to such person unless such person, within ninety days after the giving of notice of such determination, shall apply to the division of tax appeals for a hearing. If such determination is identi- cal to or arises out of a previously issued determination of tax of the corporation, dissolved corporation, partnership or individual proprie- torship for which such person is under a duty to act, an application filed with the division of tax appeals on behalf of the corporation, dissolved corporation, partnership or individual proprietorship shall be deemed to include any and all subsequently issued personal determi- nations and a separate application to the division of tax appeals for a hearing shall not be required. The [tax commission] COMMISSIONER may, nevertheless, of [its] HIS OR HER own motion, redetermine such determi- nation of tax or liability for tax. Where the [tax commission] COMMIS- SIONER determines or redetermines that the amount of tax claimed to be due from a vendor of tangible personal property or services, a recipient of amusement charges, or an operator of a hotel OR VACATION RENTAL is erroneous or excessive in whole or in part, [it] HE OR SHE shall rede- termine the amount of tax properly due from any such person as a person required to collect tax with respect to such vendor, recipient, or oper- ator, and if such amount is less than the amount of tax for which such person would have been liable in the absence of such determination or redetermination, [it] HE OR SHE shall reduce such liability accordingly. Furthermore, the [tax commission] COMMISSIONER may, of [its] HIS OR HER own motion, abate on behalf of any such person, any part of the tax determined to be erroneous or excessive whether or not such tax had become finally and irrevocably fixed with respect to such person but no claim for abatement may be filed by any such person. The provisions of this paragraph shall not be construed to limit in any manner the powers of the attorney general under subdivision (a) of section eleven hundred forty-one OF THIS PART or the powers of the [tax commission] COMMISSION- S. 8009--A 60 A. 9009--A ER to issue a warrant under subdivision (b) of such section against any person whose liability has become finally and irrevocably fixed. § 10. Section 1142 of the tax law is amended by adding a new subdivi- sion 16 to read as follows: 16. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF VACATION RENTAL MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAVE BEEN REVOKED AND, IF NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE THAT A VACATION RENTAL OPERATOR WILL BE RELIEVED OF THE REQUIREMENT TO REGISTER AND THE DUTY TO COLLECT TAX ON THE RENT FOR OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION RENTAL MARKET- PLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO AND PARAGRAPH SIX OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED THIRTY- FOUR OF THIS PART BEING MET, SUCH VACATION RENTAL MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY. § 11. Subparagraph (i) of paragraph 3 of subdivision (a) of section 1145 of the tax law, as amended by section 48 of part K of chapter 61 of the laws of 2011, is amended to read as follows: (i) Any person required to obtain a certificate of authority under section eleven hundred thirty-four of this part who, without possessing a valid certificate of authority, (A) sells tangible personal property or services subject to tax, receives amusement charges or operates a hotel OR VACATION RENTAL, (B) purchases or sells tangible personal prop- erty for resale, (C) sells petroleum products, or (D) sells cigarettes shall, in addition to any other penalty imposed by this chapter, be subject to a penalty in an amount not exceeding five hundred dollars for the first day on which such sales or purchases are made, plus an amount not exceeding two hundred dollars for each subsequent day on which such sales or purchases are made, not to exceed ten thousand dollars in the aggregate. § 12. Subparagraph (v) of paragraph 4 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (v) shall provide that, for purposes of the tax described in subdivi- sion (e) of section eleven hundred five of this chapter, "permanent resident" means any occupant of any room or rooms in a hotel OR VACATION RENTAL for at least one hundred eighty consecutive days with regard to the period of such occupancy; § 13. Subdivisions (a) and (b) of section 1817 of the tax law, as amended by section 53 of part K of chapter 61 of the laws of 2011, are amended to read as follows: (a) Any person required to obtain a certificate of authority under section eleven hundred thirty-four of this chapter who, without possess- ing a valid certificate of authority, willfully (1) sells tangible personal property or services subject to tax, receives amusement charges or operates a hotel OR VACATION RENTAL, (2) purchases or sells tangible personal property for resale, or (3) sells petroleum products; and any person who fails to surrender a certificate of authority as required by such article shall be guilty of a misdemeanor. (b) Any person required to obtain a certificate of authority under section eleven hundred thirty-four of this chapter who within five years after a determination by the commissioner, pursuant to such section, to suspend, revoke or refuse to issue a certificate of authority has become final, and without possession of a valid certificate of authority (1) sells tangible personal property or services subject to tax, receives S. 8009--A 61 A. 9009--A amusement charges or operates a hotel OR VACATION RENTAL, (2) purchases or sells tangible personal property for resale, or (3) sells petroleum products, shall be guilty of a misdemeanor. It shall be an affirmative defense that such person performed the acts described in this subdivi- sion without knowledge of such determination. Any person who violates a provision of this subdivision, upon conviction, shall be subject to a fine in any amount authorized by this article, but not less than five hundred dollars, in addition to any other penalty provided by law. § 14. This act shall take effect immediately and shall apply to collections of rent by the operator or vacation rental marketplace provider on or after September 1, 2022. PART W Section 1. Paragraph 1 of subsection (a) of section 671 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (1) Every employer maintaining an office or transacting business with- in this state and making payment of any wages taxable under this article shall deduct and withhold from such wages for each payroll period a tax computed in such manner as to result, so far as practicable, in with- holding from the employee's wages during each calendar year an amount substantially equivalent to the tax reasonably estimated to be due under this article resulting from the inclusion in the employee's New York adjusted gross income or New York source income of [his] THE EMPLOYEE'S wages received during such calendar year. The method of determining the amount to be withheld shall be prescribed by [regulations of] the commissioner, with due regard to the New York withholding exemptions of the employee and the sum of any credits allowable against [his] THE EMPLOYEE'S tax. THE COMMISSIONER SHALL PUBLISH ANY CHANGES TO SUCH METH- OD OF DETERMINING THE AMOUNT OF TAX TO BE WITHHELD ON THE WEBSITE OF THE DEPARTMENT OF TAXATION AND FINANCE. THE COMMISSIONER SHALL ALSO CAUSE NOTICE OF SUCH CHANGES TO BE PUBLISHED IN THE SECTION FOR MISCELLANEOUS NOTICES IN THE STATE REGISTER AND SHALL GIVE OTHER APPROPRIATE GENERAL NOTICE OF SUCH CHANGES. § 2. Paragraph 6 of subsection (j) of section 697 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (6) Publication of interest rates. The commissioner of taxation and finance SHALL PUBLISH THE INTEREST RATES SET UNDER THIS SUBSECTION ON THE WEBSITE OF THE DEPARTMENT OF TAXATION AND FINANCE. IMMEDIATELY FOLLOWING SUCH PUBLICATION, THE COMMISSIONER shall cause SUCH INTEREST RATES to be published in the section for miscellaneous notices in the state register[,] and give other appropriate general notice of[, the] SUCH interest rates [to be set under this subsection no later than twen- ty days preceding the first day of the calendar quarter during which such interest rates apply]. The setting and publication of such interest rates shall not be included within paragraph (a) of subdivision two of section one hundred two of the state administrative procedure act relat- ing to the definition of a rule. § 3. Paragraph 5 of subsection (e) of section 1096 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (5) Publication of interest rates. The commissioner of taxation and finance shall PUBLISH THE INTEREST RATES SET UNDER THIS SUBSECTION ON THE WEBSITE OF THE DEPARTMENT OF TAXATION AND FINANCE. IMMEDIATELY S. 8009--A 62 A. 9009--A FOLLOWING SUCH PUBLICATION, THE COMMISSIONER SHALL cause SUCH INTEREST RATES to be published in the section for miscellaneous notices in the state register[,] and give other appropriate general notice of[, the] SUCH interest rates [to be set under this subsection no later than twen- ty days preceding the first day of the calendar quarter during which such interest rates apply]. The setting and publication of such interest rates shall not be included within paragraph (a) of subdivision two of section one hundred two of the state administrative procedure act relat- ing to the definition of a rule. § 4. This act shall take effect immediately. PART X Section 1. Paragraph (c) of subdivision 1 of section 1701 of the tax law, as added by section 1 of part CC-1 of chapter 57 of the laws of 2008, is amended to read as follows: (c) "Financial institution" means (I) any financial institution authorized or required to participate in a financial institution data match system or program for child support enforcement purposes under federal or state law, AND (II) ANY VIRTUAL CURRENCY BUSINESS LICENSED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. § 2. This act shall take effect immediately. PART Y Section 1. Section 4 of chapter 475 of the laws of 2013, relating to assessment ceilings for local public utility mass real property, as amended by section 1 of part G of chapter 59 of the laws of 2018, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [eight] TWELVE years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 4 of section 499-pppp of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 4. Any final determination of an assessment ceiling by the commission- er pursuant to subdivision one of this section shall be subject to judi- cial challenge by an owner of local public utility mass real property or a local assessing jurisdiction in a proceeding under article seven of this chapter; provided however, the time to commence such proceeding shall be within sixty days of the issuance of the final assessment ceil- ing certificate and all questions of fact and law shall be determined de novo. Any judicial proceeding shall be commenced in the supreme court in the county of Albany or the county agreed upon by the parties in which the local public utility mass real property is located. Nothing in this section shall preclude a challenge of the assessed value established by a local assessing jurisdiction with respect to local public utility mass real property as otherwise provided in article seven of this chapter, S. 8009--A 63 A. 9009--A PROVIDED HOWEVER THAT UPON MOTION OF THE LOCAL ASSESSING JURISDICTION, SUCH CHALLENGE SHALL BE CONSOLIDATED WITH THE CHALLENGE TO THE FINAL ASSESSMENT CEILING COMMENCED PURSUANT TO THIS SUBDIVISION AND LITIGATED IN THE VENUE SPECIFIED BY THIS SUBDIVISION. In any proceeding challeng- ing an assessed value established by a local assessing jurisdiction for local public utility mass real property, the final certified assessment ceiling established pursuant to subdivision one of this section [shall not], AND THE EVIDENCE SUBMITTED IN CONNECTION THEREWITH, MAY be consid- ered by the court WHEN DETERMINING THE MERITS OF THE CHALLENGE TO THE ASSESSED VALUE ESTABLISHED BY THE ASSESSING UNIT. IN SUCH A PROCEEDING, THE LOCAL ASSESSING JURISDICTION, UPON REQUEST TO THE LOCAL PUBLIC UTIL- ITY MASS REAL PROPERTY OWNER, SHALL BE PROVIDED WITH A COPY OF THE ANNU- AL REPORT PROVIDED TO THE COMMISSIONER UNDER SECTION FOUR HUNDRED NINE- TY-NINE-RRRR OF THIS TITLE. IF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY OWNER FAILS TO PROVIDE THE REPORT WITHIN THIRTY DAYS OF SUCH A REQUEST, THE PROCEEDING SHALL BE DISMISSED. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision 4 of section 499-pppp of the real property tax law made by section two of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith. PART Z Section 1. This Part enacts into law major components of legislation relating to the administration of the STAR program authorized by section 425 of the real property tax law and subsection (eee) of section 606 of the tax law. Each component is wholly contained within a Subpart identi- fied as Subparts A through E. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes refer- ence to a section of "this act", when used in connection with that particular component, shall be deemed to mean and refer to the corre- sponding section of the Subpart in which it is found. Section two contains a severability clause for all provisions contained in each Subpart of this Part. Section three of this act sets forth the general effective date of this Part. SUBPART A Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real property tax law, as amended by section 1 of part TT of chapter 59 of the laws of 2019, is amended to read as follows: (a-2) Notwithstanding any provision of law to the contrary, where an application for the "enhanced" STAR exemption authorized by subdivision four of this section has not been filed on or before the taxable status date, and the owner believes that good cause existed for the failure to file the application by that date, the owner may, no later than the last day for paying school taxes without incurring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall contain an explanation of why the deadline was missed, and shall be accompanied by an application, reflecting the facts and circumstances as they existed on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the exemption if the commissioner is satisfied that (i) good cause existed for the S. 8009--A 64 A. 9009--A failure to file the application by the taxable status date, and that (ii) the applicant is otherwise entitled to the exemption. The commis- sioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner has granted the exemption, the assessor shall thereupon be authorized and directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. [If the correction is not made before school taxes are levied, the school district authorities shall be authorized and directed to take account of the fact that the commissioner has granted the exemption by correcting the applicant's tax bill and/or issuing a refund accordingly] PROVIDED, HOWEVER, THAT IF THE ASSESSMENT ROLL CANNOT BE CORRECTED IN TIME FOR THE EXEMPTION TO APPEAR ON THE APPLICANT'S SCHOOL TAX BILL, THE COMMISSIONER SHALL BE AUTHORIZED TO REMIT DIRECTLY TO THE APPLICANT THE TAX SAVINGS THAT THE STAR EXEMPTION WOULD HAVE YIELDED IF IT HAD APPEARED ON THE APPLICANT'S TAX BILL. THE AMOUNTS SO PAYABLE SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPAR- AGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN OF THIS SECTION. § 2. This act shall take effect immediately. SUBPART B Section 1. Subparagraph (i) of paragraph (c) of subdivision 17 of section 425 of the real property tax law, as added by section 2 of part G of chapter 39 of the laws of 2019, is amended to read as follows: (i) A STAR credit switch may be deferred if the application for the credit is submitted after a cutoff date set by the commissioner. When setting a cutoff date, the commissioner shall take into account the time required to ensure that the STAR exemptions of all STAR credit appli- cants in the assessing unit will be removed before school tax bills are prepared. The commissioner shall specify the applicable cutoff dates after taking into account local assessment calendars, provided that different cutoff dates may be set for municipalities with different assessment calendars, and provided further that any such cutoff date may be no earlier than the [fifteenth] FORTY-FIFTH day prior to the date on which the applicable final assessment roll is required by law to be completed and filed. § 2. This act shall take effect immediately. SUBPART C Section 1. Subparagraph (A) of paragraph 3 of subsection (eee) of section 606 of the tax law, as amended by section 2 of part RR of chap- ter 59 of the laws of 2019, is amended to read as follows: (A) Beginning with taxable years after two thousand fifteen, a basic STAR credit shall be available to a qualified taxpayer if the affiliated income of the parcel that serves as the taxpayer's primary residence is less than or equal to five hundred thousand dollars FOR THE APPLICABLE INCOME TAX YEAR SPECIFIED BY PARAGRAPH (B-1) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. The income limit established for the basic STAR exemption by paragraph (b-1) of subdivision three of section four hundred twenty-five of the real property tax law shall not be taken into account when determining eligi- bility for the basic STAR credit. § 2. This act shall take effect immediately. S. 8009--A 65 A. 9009--A SUBPART D Section 1. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 7 of part E of chapter 59 of the laws of 2018, is amended to read as follows: (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors, county directors of real property tax services, and municipal tax collecting officers WITHIN NEW YORK STATE. In addition, [where an agree- ment is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her designees] SUCH INFORMATION MAY BE EXCHANGED WITH ASSESSORS AND TAX OFFICIALS FROM JURISDICTIONS OUTSIDE NEW YORK STATE IF THE LAWS OF THE OTHER JURISDICTION ALLOW IT TO PROVIDE SIMILAR INFORMA- TION TO THIS STATE. Such information shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or otherwise. § 2. This act shall take effect immediately. SUBPART E Section 1. Subsection (c) of section 651 of the tax law, as amended by section 3 of part QQ of chapter 59 of the laws of 2019, is amended to read as follows: (c) Decedents. The return for any deceased individual shall be made and filed by [his] THE DECEDENT'S executor, administrator, or other person charged with [his] THE DECEDENT'S property. If a final return of a decedent is for a fractional part of a year, the due date of such return shall be the fifteenth day of the fourth month following the close of the twelve-month period which began with the first day of such fractional part of the year. Notwithstanding any provision of law to the contrary, when a return has been filed for a decedent, the commissioner may disclose the decedent's name, address, and the date of death to the director of real property tax services of the county AND THE ASSESSOR OF THE ASSESSING UNIT in which the address reported on such return is located. § 2. Paragraph (a) of subdivision 1 of section 1125 of the real prop- erty tax law, as amended by chapter 415 of the laws of 2006, is amended to read as follows: (a) Parties entitled to notice. The enforcing officer shall on or before the date of the first publication of the notice above set forth cause a notice to be mailed to (i) each owner and any other person whose right, title, or interest was a matter of public record as of the date the list of delinquent taxes was filed, which right, title or interest will be affected by the termination of the redemption period, and whose name and address are reasonably ascertainable from the public record, including the records in the offices of the surrogate of the county, or from material submitted to the enforcing officer pursuant to paragraph (d) of this subdivision, (ii) any other person who has filed a declara- tion of interest pursuant to section eleven hundred twenty-six of this title which has not expired, [and] (iii) WHERE A POSTHUMOUS DECLARATION OF INTEREST HAS BEEN FILED PURSUANT TO SECTION ELEVEN HUNDRED TWENTY- SIX-A OF THIS TITLE, THE PERSON SPECIFIED THEREON AS THE PERSON TO BE INFORMED WHEN TAXES ARE OWED ON THE PROPERTY, AND (IV) the enforcing officer of any other tax district having a right to enforce the payment S. 8009--A 66 A. 9009--A of a tax imposed upon any of the parcels described upon such petition. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED AS MAKING ANY SUCH PERSON A PARTY TO THE PROCEEDING OR AS MAKING ANY SUCH PERSON PERSONALLY LIABLE FOR THE TAXES OR OTHER LEGAL CHARGES DUE THEREON. § 3. The real property tax law is amended by adding a new section 1126-a to read as follows: § 1126-A. POSTHUMOUS DECLARATION OF INTEREST. 1. UPON THE DEATH OF AN OWNER OF REAL PROPERTY, A PERSONAL REPRESENTATIVE OF THE DECEDENT'S ESTATE OR A SUCCESSOR IN INTEREST OF THE DECEDENT MAY FILE A POSTHUMOUS DECLARATION OF INTEREST WITH THE ENFORCING OFFICER ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH POSTHUMOUS DECLARATION SHALL PROVIDE THE DECEDENT'S NAME AND DATE OF DEATH, A DESCRIPTION OF THE PROPERTY THE DECEDENT HAD OWNED, AND THE NAME AND ADDRESS OF A PERSON TO BE INFORMED WHEN TAXES ARE OWED ON THAT PROPERTY. THEREAFTER, IN ADDITION TO ANY OTHER NOTIFICATION REQUIREMENTS THAT MAY APPLY, THE ENFORCING OFFICER SHALL CAUSE ANY NOTICES REQUIRED BY THIS ARTICLE TO BE MAILED TO SUCH PERSON AT THE ADDRESS SO PROVIDED UNTIL SUCH TIME AS THE ACQUISITION OF TITLE BY THE DECEDENT'S SUCCESSOR OR SUCCESSORS IN INTEREST HAS BECOME A MATTER OF PUBLIC RECORD, OR THE DECLARATION IS REVOKED OR MODIFIED. THE ENFORCING OFFICER SHALL PROVIDE COPIES OF ANY DECLARATIONS SO FILED TO THE ASSESSOR, TAX COLLECTING OFFICER AND COUNTY DIRECTOR OF REAL PROPER- TY TAX SERVICES WITHIN FIFTEEN DAYS OF RECEIPT, OR AS SOON THEREAFTER AS IS PRACTICABLE. 2. IF NO POSTHUMOUS DECLARATION OF INTEREST HAS BEEN FILED, A DELIN- QUENT TAX LIEN MAY BE FORECLOSED BY A PROCEEDING IN REM AS OTHERWISE PROVIDED BY THIS ARTICLE, NOTWITHSTANDING THE FACT THAT THE PROPERTY OWNER HAS DIED. IN SUCH CASES, THE ENFORCING OFFICER SHALL NOT BE OBLIGED TO OBTAIN IN PERSONAM JURISDICTION OVER A PERSONAL REPRESEN- TATIVE OF THE DECEDENT'S ESTATE; PROVIDED, HOWEVER, THAT NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO RELIEVE THE ENFORCING OFFICER OF THE OBLIGATION TO CAUSE A NOTICE TO BE MAILED TO ANY PERSONS WHOSE INTERESTS IN THE PROPERTY ARE REASONABLY ASCERTAINABLE FROM THE RECORDS OF THE SURROGATE OF THE COUNTY, AS PROVIDED BY SUBPARAGRAPH (I) OF PARA- GRAPH (A) OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED TWENTY-FIVE OF THIS TITLE. § 4. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart contained in any part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, para- graph, subdivision, section or subpart contained in any part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Subparts A through E of this act shall be as specifically set forth in the last section of such Subparts. PART AA Section 1. Section 575-b of the real property tax law is amended by adding a new subdivision 4 to read as follows: S. 8009--A 67 A. 9009--A 4. COMPLAINTS WITH RESPECT TO ASSESSMENTS DETERMINED UNDER THIS SECTION SHALL BE GOVERNED BY SECTIONS FIVE HUNDRED TWELVE AND FIVE HUNDRED TWENTY-FOUR OF THIS ARTICLE AND THE FOLLOWING PROVISIONS: (A) THE ASSESSOR SHALL, UPON REQUEST, PROVIDE THE OWNER WITH THE INPUTS THAT HE OR SHE ENTERED INTO THE COMMISSIONER'S APPRAISAL MODEL WHEN VALUING THE PROPERTY PURSUANT TO THIS SECTION. (B) THE PROPERTY OWNER MAY ADVISE THE ASSESSOR OF ANY ALLEGED ERRORS TO THE APPRAISAL MODEL INPUTS BELIEVED TO HAVE BEEN MADE BY THE ASSES- SOR, AND MAY PROVIDE INFORMATION TO THE ASSESSOR IN SUPPORT OF ANY PROPOSED CHANGE TO THOSE INPUTS. (C) IF THE PROPERTY OWNER PROVIDES SUCH INFORMATION TO THE ASSESSOR PRIOR TO THE FILING OF THE TENTATIVE ASSESSMENT ROLL, THE ASSESSOR MAY MAKE SUCH ADJUSTMENTS TO THE APPRAISAL MODEL INPUTS AS HE OR SHE DEEMS WARRANTED BASED UPON THE INFORMATION PROVIDED BY THE PROPERTY OWNER, AND MAY RECALCULATE THE PROPERTY VALUE BY ENTERING THE ADJUSTED INPUTS INTO THE APPRAISAL MODEL. (D) IF DISSATISFIED WITH THE ASSESSED VALUE APPEARING ON THE TENTATIVE ASSESSMENT ROLL, THE PROPERTY OWNER MAY FILE A COMPLAINT WITH THE BOARD OF ASSESSMENT REVIEW; PROVIDED, HOWEVER, THAT THE GROUNDS FOR REVIEW OF AN ASSESSMENT DETERMINED UNDER THIS SECTION WITH RESPECT TO BOTH ARTICLE FIVE AND ARTICLE SEVEN OF THIS CHAPTER SHALL BE LIMITED TO THE ACCURACY OF THE APPRAISAL MODEL INPUTS MADE BY THE ASSESSOR. (E) ACTIONS OR PROCEEDINGS THAT CHALLENGE THE VALIDITY AND ACCURACY OF THE APPRAISAL MODEL OR DISCOUNT RATES ESTABLISHED UNDER THIS SECTION MAY NOT BE COMMENCED AGAINST ASSESSING UNITS. SUCH CHALLENGES MAY ONLY BE BROUGHT BY COMMENCING AN ACTION AGAINST THE COMMISSIONER IN THE THIRD DEPARTMENT OF THE APPELLATE DIVISION OF THE SUPREME COURT IN THE MANNER PROVIDED BY ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. § 2. This act shall take effect immediately. PART BB Section 1. The subsection heading and paragraphs 1, 2, 3, and 4 of subsection (n-1) of section 606 of the tax law, as added by subpart B of part C of chapter 20 of the laws of 2015, the opening paragraph of subparagraph (a) of paragraph 2 as amended by section 7 of part A of chapter 60 of the laws of 2016, are amended to read as follows: [Property tax relief] HOMEOWNER TAX REBATE credit. (1) An individual taxpayer who meets the eligibility standards in paragraph two of this subsection shall be allowed a credit against the taxes imposed by this article in the amount specified in paragraph three of this subsection for tax [years two thousand sixteen, two thousand seventeen, two thou- sand eighteen, and two thousand nineteen] YEAR TWO THOUSAND TWENTY-TWO. (2) (a) To be eligible for the credit, the taxpayer (or taxpayers filing joint returns) on the personal income tax return filed for the taxable year two years prior, must have (i) been a resident, (ii) owned and primarily resided in real property receiving either the STAR exemption authorized by section four hundred twenty-five of the real property tax law or the school tax relief credit authorized by subsection (eee) of this section, and (iii) had qualified gross income no greater than two hundred [seventy-five] FIFTY thousand dollars. [Provided, however, that no credit shall be allowed if any of the following apply: (i) Such property is located in an independent school district that is subject to the provisions of section two thousand twenty-three-a of the education law and that has adopted a budget in excess of the tax levy S. 8009--A 68 A. 9009--A limit prescribed by that section. To render its taxpayers eligible for the credit authorized by this subsection, the school district must certify its compliance with such tax levy limit in the manner prescribed by subdivision two of section two thousand twenty-three-b of the educa- tion law. (ii) Such property is located in a city with a dependent school district that is subject to the provisions of section three-c of the general municipal law and that has adopted a budget in excess of the tax levy limit prescribed by that section. To render its taxpayers eligible for the credit authorized by this subsection, the city must certify its compliance with such tax levy limit in the manner prescribed by subdivi- sion two of section three-d of the general municipal law. (iii) Such property is located in the city of New York.] (3) Amount of credit. (a) [For the two thousand sixteen taxable year (i) for a taxpayer residing in real property located within the metro- politan commuter transportation district (MCTD) and outside the city of New York, the amount of the credit shall be $130; (ii) for a taxpayer residing in real property located outside the MCTD, the amount of the credit shall be $185. (b) For the two thousand seventeen, two thousand eighteen and two thousand nineteen taxable years (i)] For a taxpayer who owned and prima- rily resided in real property receiving the basic STAR exemption OR WHO RECEIVED THE BASIC STAR CREDIT, the amount of the credit shall equal the STAR tax savings associated with such basic STAR exemption IN THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, multiplied by the following percentage: [(A) for the two thousand seventeen taxable year: Qualified Gross Income Percentage Not over $75,000 28% Over $75,000 but not over $150,000 20.5% Over $150,000 but not over $200,000 13% Over $200,000 but not over $275,000 5.5% Over $275,000 No credit (B) for the two thousand eighteen taxable year: Qualified Gross Income Percentage Not over $75,000 60% Over $75,000 but not over $150,000 42.5% Over $150,000 but not over $200,000 25% Over $200,000 but not over $275,000 7.5% Over $275,000 No credit (C) for the two thousand nineteen taxable year:] (I) FOR A TAXPAYER WHOSE PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY OF NEW YORK: Qualified Gross Income Percentage Not over $75,000 [85%] 163% Over $75,000 but not over $150,000 [60%] 115% Over $150,000 but not over $200,000 [35%] 66% Over $200,000 but not over [10%] 18% [$275,000] $250,000 Over [$275,000] $250,000 No credit (II) FOR A TAXPAYER WHOSE PRIMARY RESIDENCE IS LOCATED WITHIN THE CITY OF NEW YORK: QUALIFIED GROSS INCOME PERCENTAGE NOT OVER $75,000 125% OVER $75,000 BUT NOT OVER $150,000 115% OVER $150,000 BUT NOT OVER $200,000 105% S. 8009--A 69 A. 9009--A OVER $200,000 BUT NOT OVER $250,000 100% OVER $250,000 NO CREDIT [(c)] (B) For a taxpayer who owned and primarily resided in real prop- erty receiving the enhanced STAR exemption OR WHO RECEIVED THE ENHANCED STAR CREDIT, the amount of the credit shall equal the STAR tax savings associated with such enhanced STAR exemption IN THE TWO THOUSAND TWEN- TY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, multiplied by [the follow- ing percentage: Taxable Year Percentage two thousand seventeen 12% two thousand eighteen 26% two thousand nineteen 34%] SIXTY-SIX PERCENT IF THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY OF NEW YORK, OR ONE HUNDRED TEN PERCENT IF THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED WITHIN THE CITY OF NEW YORK. [(d)] (C) In no case may the amount of the credit allowed under this subsection exceed the school district taxes due with respect to the residence for that school year, NOR SHALL ANY CREDIT BE ALLOWED UNDER THIS SUBSECTION IF THE AMOUNT DETERMINED PURSUANT TO THIS PARAGRAPH IS LESS THAN ONE HUNDRED DOLLARS. (4) For purposes of this subsection: (a) "Qualified gross income" means the adjusted gross income of the qualified taxpayer for the taxable year as reported for federal income tax purposes, or which would be reported as adjusted gross income if a federal income tax return were required to be filed. In computing quali- fied gross income, the net amount of loss reported on Federal Schedule C, D, E, or F shall not exceed three thousand dollars per schedule. In addition, the net amount of any other separate category of loss shall not exceed three thousand dollars. The aggregate amount of all losses included in computing qualified gross income shall not exceed fifteen thousand dollars. (b) "STAR tax savings" means the tax savings attributable to the basic or enhanced STAR exemption, whichever is applicable, within a portion of a school district, as determined by the commissioner pursuant to subdi- vision two of section thirteen hundred six-a of the real property tax law. [(c) "Metropolitan commuter transportation district" or "MCTD" means the metropolitan commuter transportation district as defined in section twelve hundred sixty-two of the public authorities law.] § 2. This act shall take effect immediately. PART CC Section 1. The opening paragraph and subdivisions 1 and 2 of section 1306 of the racing, pari-mutuel wagering and breeding law, the opening paragraph as amended by chapter 243 of the laws of 2020 and subdivisions 1 and 2 as added by chapter 174 of the laws of 2013, are amended to read as follows: The New York state gaming facility location board shall select, following a competitive process and subject to the restrictions of this article, no more than [four] SEVEN entities to apply to the commission for gaming facility licenses. In exercising its authority, the board shall have all powers necessary or convenient to fully carry out and effectuate its purposes including, but not limited to, the following powers. The board shall: S. 8009--A 70 A. 9009--A 1. issue a request for applications for zone ONE OR two gaming facili- ty licenses pursuant to section one thousand three hundred twelve OR SECTION ONE THOUSAND THREE HUNDRED TWENTY-ONE-B of this article; 2. assist the commission in prescribing the form of the application for zone ONE OR two gaming facility licenses including information to be furnished by an applicant concerning an applicant's antecedents, habits, character, associates, criminal record, business activities and finan- cial affairs, past or present pursuant to section one thousand three hundred thirteen OR SECTION ONE THOUSAND THREE HUNDRED TWENTY-ONE-C of this article; § 2. Subparagraph 2 of paragraph (a) of subdivision 2 of section 1310 of the racing, pari-mutuel wagering and breeding law, as added by chap- ter 174 of the laws of 2013, is amended to read as follows: (2) Region two shall consist of Bronx, Kings, New York, Queens and Richmond counties[. No gaming facility shall be authorized in region two]; and § 3. The title heading of title 2 of article 13 of the racing, pari- mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: FACILITY DETERMINATION AND LICENSING: UPSTATE GAMING FACILITIES § 4. Section 1310 of title 2 of article 13 of the racing, pari-mutuel wagering and breeding law is redesignated section 1310 of title 1 of such article. § 5. Subdivision 1 of section 1311 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 175 of the laws of 2013, is amended to read as follows: 1. The commission is authorized to award up to four gaming facility licenses, in regions one, two and five of zone two. The duration of such initial license shall be ten years. The term of renewal shall be deter- mined by the commission. The commission may award a second license to a qualified applicant in no more than a single region. The commission is not empowered to award any license [in zone one. No gaming facilities are authorized] NOR ARE ANY GAMING FACILITIES AUTHORIZED under this [article] TITLE for the city of New York or any other portion of zone one. As a condition of licensure, licensees are required to commence gaming operations no more than twenty-four months following license award. No additional licenses may be awarded during the twenty-four month period, nor for an additional sixty months following the end of the twenty-four month period. Should the state legislatively authorize additional gaming facility licenses within these periods, licensees shall have the right to recover the license fee paid pursuant to section one thousand three hundred six of this article. This right shall be incorporated into the license itself, vest upon the opening of a gaming facility in zone one or in the same region as the licensee and entitle the holder of such license to bring an action in the court of claims to recover the license fee paid pursuant to section one thousand three hundred fifteen of this [article] TITLE in the event that any gaming facility license in excess of the number authorized by this section as of the effective date of this section is awarded within seven years from the date that the initial gaming facili- ty license is awarded. This right to recover any such fee shall be proportionate to the length of the respective period that is still remaining upon the vesting of such right. Additionally, the right to bring an action in the court of claims to recover the fee paid to the state on the twenty-fourth day of September, S. 8009--A 71 A. 9009--A two thousand ten, by the operator of a video lottery gaming facility in a city of more than one million shall vest with such operator upon the opening of any gaming facility licensed by the commission in zone one within seven years from the date that the initial gaming facility license is awarded; provided however that the amount recoverable shall be limited to the pro rata amount of the time remaining until the end of the seven year exclusivity period, proportionate to the period of time between the date of opening of the video lottery facility until the conclusion of the seven year period. 2. Notwithstanding the foregoing, no casino gaming facility shall be authorized: (a) in the counties of Clinton, Essex, Franklin, Hamilton, Jefferson, Lewis, Saint Lawrence and Warren; (b) within the following area: (1) to the east, State Route 14 from Sodus Point to the Pennsylvania border with New York; (2) to the north, the border between New York and Canada; (3) to the south, the Pennsylva- nia border with New York; and (4) to the west, the border between New York and Canada and the border between Pennsylvania and New York; and (c) in the counties of Cayuga, Chenango, Cortland, Herkimer, Lewis, Madison, Oneida, Onondaga, Oswego and Otsego. 3. As a condition for continued licensure, licensees shall be required to house upon the physical premises of the licensed gaming facility, UPON REQUEST, a mobile sports wagering platform provider's server or other equipment used for receiving mobile sports wagers pursuant to section [1367-a of the racing, pari-mutuel wagering and breeding law] 1367-A OF THIS ARTICLE; provided however, that such licensee shall be entitled to the reasonable and actual costs, as determined by the gaming commission, of physically housing and securing such server or other equipment used for receiving mobile sports wagers at such licensee's licensed gaming facility; and provided further, FOR THE DURATION OF THE INITIAL LICENSE TERM, [that as consideration for housing and securing such server at the physical premises of the licensed gaming facility,] a mobile sports wagering platform provider[s] shall pay [to such licensed gaming facility, five] TWO AND A HALF million dollars per year [for the duration of the time that such server is housed and operating at the physical premises of such licensed gaming facility] FROM WHICH EACH GAMING FACILITY LICENSED UNDER TITLE TWO OF THIS ARTICLE SHALL RECEIVE FIVE MILLION DOLLARS PER YEAR. § 6. The opening paragraph of subdivision 1 of section 1312 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: The board shall issue within ninety days of a majority of members being appointed a request for applications for a gaming facility license in regions one, two and five in zone two; provided, however, that the board shall not issue any requests for applications for any region in zone one UNDER THIS TITLE; and further provided that the board shall not issue any requests for applications with respect to any gaming facility subsequently legislatively authorized until seven years following the commencement of gaming activities in zone two, UNLESS SUCH REQUEST FOR APPLICATION WITH RESPECT TO ANY SUBSEQUENTLY LEGISLATIVELY AUTHORIZED GAMING FACILITY ADHERES TO THE PROCEDURE AS DESCRIBED IN SECTION ONE THOUSAND THREE HUNDRED ELEVEN OF THIS TITLE. All requests for applica- tions shall include: § 7. Article 13 of the racing, pari-mutuel wagering and breeding law is amended by adding a new title 2-A to read as follows: S. 8009--A 72 A. 9009--A TITLE 2-A FACILITY DETERMINATION AND LICENSING: ADDITIONAL GAMING FACILITIES SECTION 1321-A. LICENSE AUTHORIZATION; RESTRICTIONS. 1321-B. REQUESTS FOR APPLICATIONS; REQUESTS FOR INFORMATION. 1321-C. FORM OF APPLICATION. 1321-D. LICENSE APPLICANT ELIGIBILITY. 1321-E. REQUIRED CAPITAL INVESTMENT. 1321-F. MINIMUM LICENSE THRESHOLDS. 1321-G. INVESTIGATION OF LICENSE APPLICANTS. 1321-H. DISQUALIFYING CRITERIA. 1321-I. HEARINGS. 1321-J. SITING EVALUATION. § 1321-A. LICENSE AUTHORIZATION; RESTRICTIONS. 1. THE COMMISSION IS AUTHORIZED TO AWARD UP TO THREE ADDITIONAL GAMING FACILITY LICENSES. THE DURATION OF SUCH INITIAL LICENSE AND THE TERM OF RENEWAL SHALL BE DETER- MINED BY THE COMMISSION. 2. NOTWITHSTANDING THE FOREGOING, NO CASINO GAMING FACILITY SHALL BE AUTHORIZED: (A) IN THE COUNTIES OF CLINTON, ESSEX, FRANKLIN, HAMILTON, JEFFERSON, LEWIS, SAINT LAWRENCE AND WARREN; (B) WITHIN THE FOLLOWING AREA: (1) TO THE EAST, STATE ROUTE 14 FROM SODUS POINT TO THE PENNSYLVANIA BORDER WITH NEW YORK; (2) TO THE NORTH, THE BORDER BETWEEN NEW YORK AND CANADA; (3) TO THE SOUTH, THE PENNSYLVA- NIA BORDER WITH NEW YORK; AND (4) TO THE WEST, THE BORDER BETWEEN NEW YORK AND CANADA AND THE BORDER BETWEEN PENNSYLVANIA AND NEW YORK; AND (C) IN THE COUNTIES OF CAYUGA, CHENANGO, CORTLAND, HERKIMER, LEWIS, MADISON, ONEIDA, ONONDAGA, OSWEGO AND OTSEGO. § 1321-B. REQUESTS FOR APPLICATIONS; REQUESTS FOR INFORMATION. REQUESTS FOR APPLICATIONS SHALL BE HANDLED IN THE SAME MANNER AS PROVIDED FOR IN SECTION THIRTEEN HUNDRED TWELVE OF THIS ARTICLE FOR GAMING LICENSES AUTHORIZED BUT NOT AWARDED, PROVIDED HOWEVER THAT ANY REQUESTS FOR APPLICATIONS FOR GAMING FACILITY LICENSES AUTHORIZED BUT NOT AWARDED MAY BE FOR GAMING FACILITY LICENSES IN ANY REGION IN ZONE ONE OR IN REGIONS ONE, TWO AND FIVE IN ZONE TWO. § 1321-C. FORM OF APPLICATION. THE FORM OF THE APPLICATION SHALL BE THE SAME AS ESTABLISHED UNDER SECTION THIRTEEN HUNDRED THIRTEEN OF THIS ARTICLE. § 1321-D. LICENSE APPLICANT ELIGIBILITY. 1. GAMING FACILITY LICENSES SHALL ONLY BE ISSUED TO APPLICANTS WHO ARE QUALIFIED UNDER THE CRITERIA SET FORTH IN THIS ARTICLE, AS DETERMINED BY THE COMMISSION. 2. AS A CONDITION OF FILING, EACH POTENTIAL LICENSE APPLICANT MUST: (A) DEMONSTRATE TO THE BOARD'S SATISFACTION THAT THE APPLICANT HAS CONSULTED WITH LOCAL GOVERNMENTS AND CONSIDERED INPUT FROM THE COMMUNI- TY; AND (B) WAIVE ALL RIGHTS THEY OR ANY AFFILIATED ENTITY POSSESS UNDER SECTION ONE THOUSAND THREE HUNDRED ELEVEN OF THIS ARTICLE TO BRING AN ACTION TO RECOVER A FEE. 3. THE EXPIRATION OF THE SEVEN YEAR RESTRICTED PERIOD FROM THE DATE THAT AN INITIAL GAMING FACILITY LICENSE WAS AWARDED IS FEBRUARY TWENTY- EIGHTH, TWO THOUSAND TWENTY-THREE FOR THE THREE INITIAL CASINO LICENSES AND NOVEMBER TWENTY-SECOND, TWO THOUSAND TWENTY-THREE FOR THE FINAL CASINO LICENSE AWARDED. SHOULD AN APPLICANT OR APPLICANTS COMMENCE GAMING ACTIVITIES PRIOR TO SUCH DATES, SUCH APPLICANT OR APPLICANTS SHALL BE JOINTLY AND SEVERALLY LIABLE FOR PAYMENT OF THE PROPORTIONATE FEE FOR THE RESPECTIVE PERIOD REMAINING AS REQUIRED BY SECTION ONE THOU- SAND THREE HUNDRED ELEVEN OF THIS ARTICLE. S. 8009--A 73 A. 9009--A § 1321-E. REQUIRED CAPITAL INVESTMENT. 1. THE BOARD SHALL ESTABLISH THE MINIMUM CAPITAL INVESTMENT FOR EACH UNAWARDED GAMING FACILITY LICENSE. SUCH INVESTMENT MAY INCLUDE, BUT NOT BE LIMITED TO, A CASINO AREA, HOTEL AND OTHER AMENITIES; AND PROVIDED FURTHER, THAT THE BOARD SHALL DETERMINE WHETHER IT WILL INCLUDE THE PURCHASE OR LEASE PRICE OF THE LAND WHERE THE GAMING FACILITY WILL BE LOCATED OR ANY INFRASTRUCTURE DESIGNED TO SUPPORT THE SITE INCLUDING, BUT NOT LIMITED TO, DRAINAGE, UTILITY SUPPORT, ROADWAYS, INTERCHANGES, FILL AND SOIL OR GROUNDWATER OR SURFACE WATER CONTAMINATION ISSUES. THE BOARD MAY CONSIDER PRIVATE CAPI- TAL INVESTMENT MADE PREVIOUS TO THE EFFECTIVE DATE OF THIS TITLE, BUT MAY, IN ITS DISCRETION, DISCOUNT A PERCENTAGE OF THE INVESTMENT MADE. UPON AWARD OF A GAMING LICENSE BY THE COMMISSION, THE APPLICANT SHALL BE REQUIRED TO DEPOSIT TEN PERCENT OF THE TOTAL INVESTMENT PROPOSED IN THE APPLICATION INTO AN INTEREST-BEARING ACCOUNT. MONIES RECEIVED FROM THE APPLICANT SHALL BE HELD IN ESCROW UNTIL THE FINAL STAGE OF CONSTRUCTION, AS DETAILED IN THE TIMELINE OF CONSTRUCTION SUBMITTED WITH THE LICENSEE'S APPLICATION AND APPROVED BY THE COMMISSION, AT WHICH TIME THE DEPOSIT PLUS INTEREST EARNED SHALL BE RETURNED TO THE APPLICANT TO BE APPLIED FOR THE FINAL STAGE. SHOULD THE APPLICANT BE UNABLE TO COMPLETE THE GAMING FACILITY, THE DEPOSIT SHALL BE FORFEITED TO THE STATE. IN PLACE OF A CASH DEPOSIT, THE COMMISSION MAY ALLOW FOR AN APPLICANT TO SECURE A DEPOSIT BOND INSURING THAT TEN PERCENT OF THE PROPOSED CAPITAL INVESTMENT SHALL BE FORFEITED TO THE STATE IF THE APPLICANT IS UNABLE TO COMPLETE THE GAMING FACILITY. 2. EACH APPLICANT SHALL SUBMIT ITS PROPOSED CAPITAL INVESTMENT WITH ITS APPLICATION TO THE BOARD WHICH SHALL INCLUDE STAGES OF CONSTRUCTION OF THE GAMING FACILITY AND THE DEADLINE BY WHICH THE STAGES AND OVERALL CONSTRUCTION AND ANY INFRASTRUCTURE IMPROVEMENTS WILL BE COMPLETED. IN AWARDING A LICENSE, THE COMMISSION SHALL DETERMINE AT WHAT STAGE OF CONSTRUCTION A LICENSEE SHALL BE APPROVED TO OPEN FOR GAMING; PROVIDED, HOWEVER, THAT A LICENSEE SHALL NOT BE APPROVED TO OPEN FOR GAMING UNTIL THE COMMISSION HAS DETERMINED THAT AT LEAST THE GAMING AREA AND OTHER ANCILLARY ENTERTAINMENT SERVICES AND NON-GAMING AMENITIES, AS REQUIRED BY THE BOARD, HAVE BEEN BUILT AND ARE OF A SUPERIOR QUALITY AS SET FORTH IN THE CONDITIONS OF LICENSURE. THE COMMISSION SHALL NOT APPROVE A GAMING FACILITY TO OPEN BEFORE THE COMPLETION OF THE PERMANENT CASINO AREA. 3. THE BOARD SHALL DETERMINE A LICENSING FEE TO BE PAID BY A LICENSEE WITHIN THIRTY DAYS AFTER THE AWARD OF THE LICENSE WHICH SHALL BE DEPOS- ITED INTO THE COMMERCIAL GAMING REVENUE FUND. THE LICENSE SHALL SET FORTH THE CONDITIONS TO BE SATISFIED BY THE LICENSEE BEFORE THE GAMING FACILITY SHALL BE OPENED TO THE PUBLIC. THE COMMISSION SHALL SET ANY RENEWAL FEE FOR SUCH LICENSE BASED ON THE COST OF FEES ASSOCIATED WITH THE EVALUATION OF A LICENSEE UNDER THIS ARTICLE WHICH SHALL BE DEPOSITED INTO THE COMMERCIAL GAMING FUND. SUCH RENEWAL FEE SHALL BE EXCLUSIVE OF ANY SUBSEQUENT LICENSING FEES UNDER THIS SECTION. 4. THE COMMISSION SHALL DETERMINE THE SOURCES AND TOTAL AMOUNT OF AN APPLICANT'S PROPOSED CAPITALIZATION TO DEVELOP, CONSTRUCT, MAINTAIN AND OPERATE A PROPOSED GAMING FACILITY UNDER THIS ARTICLE. UPON AWARD OF A GAMING LICENSE, THE COMMISSION SHALL CONTINUE TO ASSESS THE CAPITALIZA- TION OF A LICENSEE FOR THE DURATION OF CONSTRUCTION OF THE PROPOSED GAMING FACILITY AND THE TERM OF THE LICENSE. § 1321-F. MINIMUM LICENSE THRESHOLDS. THE MINIMUM LICENSING THRESH- OLDS SHALL BE THE SAME AS THOSE ESTABLISHED UNDER SECTION THIRTEEN HUNDRED SIXTEEN OF THIS ARTICLE. S. 8009--A 74 A. 9009--A § 1321-G. INVESTIGATION OF LICENSE APPLICANTS. THE PROCESS USED TO INVESTIGATE LICENSE APPLICANTS SHALL BE THE SAME PROCESS ESTABLISHED UNDER SECTION THIRTEEN HUNDRED SEVENTEEN OF THIS ARTICLE. § 1321-H. DISQUALIFYING CRITERIA. THE CRITERIA TO DISQUALIFY APPLI- CANTS SHALL BE THE SAME CRITERIA USED FOR UPSTATE GAMING FACILITY LICENSING, WHICH ARE ENUMERATED IN SECTION THIRTEEN HUNDRED EIGHTEEN OF THIS ARTICLE. § 1321-I. HEARINGS. THE PROCESS USED FOR HEARINGS SHALL BE THE SAME PROCESS ESTABLISHED UNDER SECTION THIRTEEN HUNDRED NINETEEN OF THIS ARTICLE. § 1321-J. SITING EVALUATION. IN DETERMINING WHETHER AN APPLICANT SHALL BE ELIGIBLE FOR A GAMING FACILITY LICENSE, THE BOARD SHALL EVALUATE HOW EACH APPLICANT PROPOSES TO ADVANCE THE FOLLOWING OBJECTIVES WITH CONSID- ERATION GIVEN TO THE DIFFERENCES BETWEEN PROPOSED PROJECTS RELATED TO WHETHER IT IS A CONVERSION OF AN EXISTING VIDEO LOTTERY GAMING FACILITY OR NEW FACILITY CONSTRUCTION, AND THE PROPOSED LOCATION. THE DECISION BY THE BOARD TO SELECT A GAMING FACILITY LICENSE APPLICANT SHALL BE DETERMINED BASED ON THE FOLLOWING FACTORS WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO: (A) REALIZING MAXIMUM CAPITAL INVESTMENT EXCLUSIVE OF LAND ACQUISITION AND INFRASTRUCTURE IMPROVEMENTS; (B) MAXIMIZING REVENUES RECEIVED BY THE STATE AND LOCALITIES; (C) PROVIDING THE HIGHEST NUMBER OF QUALITY JOBS IN THE GAMING FACILI- TY; (D) BUILDING A GAMING FACILITY OF THE HIGHEST CALIBER WITH A VARIETY OF QUALITY AMENITIES TO BE INCLUDED AS PART OF THE GAMING FACILITY; (E) OFFERING THE HIGHEST AND BEST VALUE TO PATRONS TO CREATE A SECURE AND ROBUST GAMING MARKET IN THE REGION AND THE STATE; (F) PROVIDING A MARKET ANALYSIS DETAILING THE BENEFITS OF THE SITE LOCATION OF THE GAMING FACILITY AND THE ESTIMATED RECAPTURE RATE OF GAMING-RELATED SPENDING BY RESIDENTS TRAVELLING TO AN OUT-OF-STATE GAMING FACILITY; (G) OFFERING A REASONABLE AND FEASIBLE CONSTRUCTION SCHEDULE TO COMPLETION OF THE FULL GAMING FACILITY; (H) DEMONSTRATING THE ABILITY TO FULLY FINANCE THE GAMING FACILITY; (I) DEMONSTRATING EXPERIENCE IN THE DEVELOPMENT AND OPERATION OF A QUALITY GAMING FACILITY; (J) MITIGATING POTENTIAL IMPACTS ON HOST AND NEARBY MUNICIPALITIES WHICH MIGHT RESULT FROM THE DEVELOPMENT OR OPERATION OF THE GAMING FACILITY; (K) CAREFULLY CONSIDERING LOCAL VIEWS AND CONSULTING WITH APPROPRIATE LOCAL GOVERNMENTS; (L) OPERATING IN PARTNERSHIP WITH AND PROMOTING LOCAL HOTELS, RESTAU- RANTS AND RETAIL FACILITIES SO THAT PATRONS EXPERIENCE THE FULL DIVERSI- FIED REGIONAL TOURISM INDUSTRY; (M) ESTABLISHING A FAIR AND REASONABLE PARTNERSHIP WITH LIVE ENTER- TAINMENT VENUES THAT MAY BE IMPACTED BY A GAMING FACILITY UNDER WHICH THE GAMING FACILITY ACTIVELY SUPPORTS THE MISSION AND THE OPERATION OF THE IMPACTED ENTERTAINMENT VENUES; (N) IMPLEMENTING A WORKFORCE DEVELOPMENT PLAN THAT UTILIZES THE EXIST- ING LABOR FORCE, INCLUDING THE ESTIMATED NUMBER OF CONSTRUCTION JOBS A PROPOSED GAMING FACILITY WILL GENERATE, THE DEVELOPMENT OF WORKFORCE TRAINING PROGRAMS THAT SERVE THE UNEMPLOYED AND METHODS FOR ACCESSING EMPLOYMENT AT THE GAMING FACILITY; S. 8009--A 75 A. 9009--A (O) TAKING ADDITIONAL MEASURES TO ADDRESS PROBLEM GAMBLING INCLUDING, BUT NOT LIMITED TO, TRAINING OF GAMING EMPLOYEES TO IDENTIFY PATRONS EXHIBITING PROBLEMS WITH GAMBLING; (P) UTILIZING SUSTAINABLE DEVELOPMENT PRINCIPLES INCLUDING, BUT NOT LIMITED TO: (1) HAVING NEW AND RENOVATION CONSTRUCTION CERTIFIED UNDER THE APPRO- PRIATE CERTIFICATION CATEGORY IN THE LEADERSHIP IN ENERGY AND ENVIRON- MENTAL DESIGN GREEN BUILDING RATING SYSTEM CREATED BY THE UNITED STATES GREEN BUILDING COUNCIL; (2) EFFORTS TO MITIGATE VEHICLE TRIPS; (3) EFFORTS TO CONSERVE WATER AND MANAGE STORM WATER; (4) DEMONSTRATING THAT ELECTRICAL AND HVAC EQUIPMENT AND APPLIANCES WILL BE ENERGY STAR LABELED WHERE AVAILABLE; (5) PROCURING OR GENERATING ON-SITE TEN PERCENT OF ITS ANNUAL ELEC- TRICITY CONSUMPTION FROM RENEWABLE SOURCES; AND (6) DEVELOPING AN ONGOING PLAN TO SUBMETER AND MONITOR ALL MAJOR SOURCES OF ENERGY CONSUMPTION AND UNDERTAKE REGULAR EFFORTS TO MAINTAIN AND IMPROVE ENERGY EFFICIENCY OF BUILDINGS IN THEIR SYSTEMS; (Q) ESTABLISHING, FUNDING AND MAINTAINING HUMAN RESOURCE HIRING AND TRAINING PRACTICES THAT PROMOTE THE DEVELOPMENT OF A SKILLED AND DIVERSE WORKFORCE AND ACCESS TO PROMOTION OPPORTUNITIES THROUGH A WORKFORCE TRAINING PROGRAM THAT: (1) ESTABLISHES TRANSPARENT CAREER PATHS WITH MEASURABLE CRITERIA WITHIN THE GAMING FACILITY THAT LEAD TO INCREASED RESPONSIBILITY AND HIGHER PAY GRADES THAT ARE DESIGNED TO ALLOW EMPLOYEES TO PURSUE CAREER ADVANCEMENT AND PROMOTION; (2) PROVIDES EMPLOYEE ACCESS TO ADDITIONAL RESOURCES, SUCH AS TUITION REIMBURSEMENT OR STIPEND POLICIES, TO ENABLE EMPLOYEES TO ACQUIRE THE EDUCATION OR JOB TRAINING NEEDED TO ADVANCE CAREER PATHS BASED ON INCREASED RESPONSIBILITY AND PAY GRADES; AND (3) ESTABLISHES AN ON-SITE CHILD DAY CARE PROGRAM; (R) PURCHASING, WHENEVER POSSIBLE, DOMESTICALLY MANUFACTURED SLOT MACHINES FOR INSTALLATION IN THE GAMING FACILITY; (S) IMPLEMENTING A WORKFORCE DEVELOPMENT PLAN THAT: (1) INCORPORATES AN AFFIRMATIVE ACTION PROGRAM OF EQUAL OPPORTUNITY BY WHICH THE APPLICANT GUARANTEES TO PROVIDE EQUAL EMPLOYMENT OPPORTUNITIES TO ALL EMPLOYEES QUALIFIED FOR LICENSURE IN ALL EMPLOYMENT CATEGORIES, INCLUDING PERSONS WITH DISABILITIES; (2) UTILIZES THE EXISTING LABOR FORCE IN THE STATE; (3) ESTIMATES THE NUMBER OF CONSTRUCTION JOBS A GAMING FACILITY WILL GENERATE AND PROVIDES FOR EQUAL EMPLOYMENT OPPORTUNITIES AND WHICH INCLUDES SPECIFIC GOALS FOR THE UTILIZATION OF MINORITIES, WOMEN AND VETERANS ON THOSE CONSTRUCTION JOBS; (4) IDENTIFIES WORKFORCE TRAINING PROGRAMS OFFERED BY THE GAMING FACILITY; AND (5) IDENTIFIES THE METHODS FOR ACCESSING EMPLOYMENT AT THE GAMING FACILITY; AND (T) DEMONSTRATING THAT THE APPLICANT HAS AN AGREEMENT WITH ORGANIZED LABOR, INCLUDING HOSPITALITY SERVICES, AND HAS THE SUPPORT OF ORGANIZED LABOR FOR ITS APPLICATION, WHICH SPECIFIES: (1) THE NUMBER OF EMPLOYEES TO BE EMPLOYED AT THE GAMING FACILITY, INCLUDING DETAILED INFORMATION ON THE PAY RATE AND BENEFITS FOR EMPLOY- EES AND CONTRACTORS IN THE GAMING FACILITY AND ALL INFRASTRUCTURE IMPROVEMENTS RELATED TO THE PROJECT; AND S. 8009--A 76 A. 9009--A (2) DETAILED PLANS FOR ASSURING LABOR HARMONY DURING ALL PHASES OF THE CONSTRUCTION, RECONSTRUCTION, RENOVATION, DEVELOPMENT AND OPERATION OF THE GAMING FACILITY. § 8. Section 1351 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 1-a to read as follows: 1-A. FOR A GAMING FACILITY LICENSED PURSUANT TO TITLE TWO-A OF THIS ARTICLE, THERE IS HEREBY IMPOSED A TAX ON GROSS GAMING REVENUES WITH THE RATES TO BE DETERMINED BY THE GAMING COMMISSION PURSUANT TO A COMPET- ITIVE BIDDING PROCESS AS OUTLINED IN TITLE TWO-A OF THIS ARTICLE. § 9. This act shall take effect immediately. PART DD Section 1. Section 509-a of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part LLL of chapter 59 of the laws of 2021, is amended to read as follows: § 509-a. Capital acquisition fund. 1. The corporation may create and establish a capital acquisition fund for the purpose of financing the acquisition, construction or equipping of offices, facilities or prem- ises of the corporation. Such capital acquisition fund shall consist of (i) the amounts specified pursuant to subdivision three-a of section five hundred thirty-two of this chapter; and (ii) contributions from the corporation's pari-mutuel wagering pools, subject to the following limi- tations: a. no contribution shall exceed the amount of one percent of the total pari-mutuel wagering pools for the quarter in which the contribution is made; b. no contribution shall reduce the amount of quarterly net revenues, exclusive of surcharge revenues, to an amount less than fifty percent of such net revenues; and c. the balance of the fund shall not exceed the lesser of one percent of total pari-mutuel wagering pools for the previous twelve months or the undepreciated value of the corporation's offices, facilities and premises. 2. A. Notwithstanding any other provision of law or regulation to the contrary, FROM APRIL NINETEENTH, TWO THOUSAND TWENTY-ONE TO MARCH THIR- TY-FIRST, TWO THOUSAND TWENTY-TWO, twenty-three percent of the funds, not to exceed two and one-half million dollars, in the Catskill off- track betting corporation's capital acquisition fund and twenty-three percent of the funds, not to exceed four hundred forty thousand dollars, in the Capital off-track betting corporation's capital acquisition fund established pursuant to this section shall also be available to such off-track betting corporation for the purposes of statutory obligations, payroll, and expenditures necessary to accept authorized wagers. B. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE CONTRARY, FROM APRIL FIRST, TWO THOUSAND TWENTY-TWO TO MARCH THIR- TY-FIRST, TWO THOUSAND TWENTY-THREE, TWENTY-THREE PERCENT OF THE FUNDS, NOT TO EXCEED FOUR HUNDRED FORTY THOUSAND DOLLARS, IN THE CAPITAL OFF-TRACK BETTING CORPORATION'S CAPITAL ACQUISITION FUND ESTABLISHED PURSUANT TO THIS SECTION SHALL ALSO BE AVAILABLE TO SUCH OFF-TRACK BETTING CORPORATION FOR THE PURPOSES OF STATUTORY OBLIGATIONS, PAYROLL, AND EXPENDITURES NECESSARY TO ACCEPT AUTHORIZED WAGERS. 3. The Catskill off-track betting corporation and the Capital off- track betting corporation shall make a report to the governor, speaker of the assembly, temporary president of the senate and the commission detailing the actual use of the funds made available in the capital S. 8009--A 77 A. 9009--A acquisition fund. Such report shall include, but not be limited to, any impact on employment levels since utilizing the funds, the status of any statutory obligations, an accounting of the use of such funds, and any other information as deemed necessary by the commission. Such report shall be due no later than the [first day of April two thousand twenty- two] LAST DAY OF THE FISCAL YEAR IN WHICH THE MONIES WERE SPENT. § 2. Section 2 of part LLL of chapter 59 of the laws of 2021 amending the racing, pari-mutuel wagering and breeding law, relating to the utilization of funds in the Catskill and Capital regions off-track betting corporation's capital acquisition funds, is amended to read as follows: § 2. This act shall take effect immediately [and shall expire and be deemed repealed one year after such date]. § 3. This act shall take effect immediately. PART EE Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that S. 8009--A 78 A. 9009--A statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [twenty-two] TWENTY-THREE; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [twenty-two] TWENTY-THREE; and (iv) no in-home simulcasting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [twenty-two] TWENTY-THREE, the amount used exclusively for purses to be awarded at races conducted by such receiv- ing track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twenty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [twenty-two] TWENTY-THREE and on any day regard- less of whether or not a franchised corporation is conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [twenty-two] TWENTY-THREE. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, each off-track betting corporation branch office and each simul- casting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's repre- sentative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred S. 8009--A 79 A. 9009--A tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [twenty-two] TWENTY-THREE. This section shall supersede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [twenty-two] TWENTY-THREE. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organization as approved by the commission, one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [twenty-one] TWENTY-TWO, when a franchised corporation is conduct- ing a race meeting within the state at Saratoga Race Course, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. § 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: § 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2022] 2023; provided, however, that nothing S. 8009--A 80 A. 9009--A contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. § 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: § 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2022] 2023; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets are presented for payment before April first of the year following the year of their purchase, less an amount that shall be established and retained by such franchised corporation of between twelve to seventeen percent of the total deposits in pools resulting from on-track regular bets, and fourteen to twenty- one percent of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five percent of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six percent of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five percent S. 8009--A 81 A. 9009--A of regular bets and four percent of multiple bets plus twenty percent of the breaks; for exotic wagers seven and one-half percent plus twenty percent of the breaks, and for super exotic bets seven and one-half percent plus fifty percent of the breaks. For the period April first, two thousand one through December thirty- first, two thousand [twenty-two] TWENTY-THREE, such tax on all wagers shall be one and six-tenths percent, plus, in each such period, twenty percent of the breaks. Payment to the New York state thoroughbred breed- ing and development fund by such franchised corporation shall be one- half of one percent of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three percent of super exotic bets and for the period April first, two thousand one through December thirty-first, two thousand [twenty-two] TWENTY-THREE, such payment shall be seven-tenths of one percent of regular, multiple and exotic pools. § 10. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through EE of this act shall be as specifically set forth in the last section of such Parts.
2021-A9009B - Details
- See Senate Version of this Bill:
- S8009
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2021-A9009B - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2022-2023 state fiscal year; accelerates middle class tax cuts (Subpart A); provides for an alternative tax table benefit recapture for certain taxpayers (Subpart B)(Part A); provides an enhanced investment tax credit to farmers (Subpart A)
2021-A9009B - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 9009--B I N A S S E M B L Y January 19, 2022 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommit- ted to said committee AN ACT to amend the tax law, in relation to accelerating the middle- class tax cut (Part A); to amend the tax law, in relation to providing an enhanced investment tax credit to farmers (Subpart A); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relat- ing to creating a farm workforce retention credit, in relation to the effectiveness of such credit (Subpart B); and to amend the tax law, in relation to establishing a farm employer overtime credit (Subpart C) (Part B); to amend the tax law and the administrative code of the city of New York, in relation to expanding the small business subtraction modification (Part C); to amend the tax law, in relation to excluding certain loan forgiveness awards from state income tax (Part D); to amend the economic development law and the tax law, in relation to creating the COVID-19 capital costs tax credit program (Part E); to amend the tax law and the state finance law, in relation to extending and expanding the New York city musical and theatrical production tax credit and the purposes of the New York state council on the arts cultural programs fund; and to amend subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to establishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund, in relation to the effectiveness ther- eof (Part F); to amend the tax law, in relation to establishing a permanent rate for the metropolitan transportation business tax surcharge (Part G); to amend the tax law, in relation to extending and modifying the hire a vet credit (Part H); to amend the tax law, in relation to establishing a tax credit for the conversion from grade no. 6 heating oil usage to biodiesel heating oil and geothermal systems (Part I); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part J); to amend the tax law, in relation to extending the clean heating fuel credit for three years EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted. LBD12674-03-2 A. 9009--B 2 (Part K); to amend chapter 604 of the laws of 2011 amending the tax law relating to the credit for companies who provide transportation to people with disabilities, in relation to the effectiveness thereof; and to amend the tax law, in relation to the application of a credit for companies who provide transportation to individuals with disabili- ties (Part L); to amend the tax law, in relation to the empire state film production credit and the empire state film post production cred- it (Part M); to amend the labor law, in relation to extending the New York youth jobs program tax credit (Part N); to amend the labor law, in relation to extending the empire state apprenticeship tax credit program (Part O); to amend the tax law, in relation to extending the alternative fuels and electric vehicle recharging property credit (Part P); to amend the labor law, in relation to the program period for the workers with disabilities tax credit program; and to amend part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, in relation to the effectiveness thereof (Part Q); intentionally omitted (Part R); to amend the tax law, in relation to the investment tax credit (Part S); intentionally omitted (Part T); intentionally omitted (Part U); intentionally omitted (Part V); to amend the tax law in relation to requiring publication of changes in withholding tables and interest rates (Part W); to amend the tax law, in relation to expanding the definition of financial institution under the financial institution data match program (Part X); to amend the real property tax law and chapter 475 of the laws of 2013, relating to assessment ceilings for local public utility mass real property, in relation to extending the assessment ceiling for local public utility mass real property to January 1, 2027 (Part Y); to amend the real property tax law, in relation to good cause refunds for the STAR program (Subpart A); intentionally omitted (Subpart B); to amend the tax law, in relation to clarifying the applicable income tax year for the basic STAR credit (Subpart C); to amend the tax law, in relation to allowing names of STAR credit recipients to be disclosed to asses- sors outside of New York state (Subpart D); and to amend the tax law, in relation to allowing decedent reports to be given to assessors (Subpart E) (Part Z); to amend the real property tax law, in relation to the grievance process with respect to the valuation of solar and wind energy systems (Part AA); to amend the tax law, in relation to establishing a homeowner tax rebate credit (Part BB); intentionally omitted (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to the utilization of funds in the Catskill and Capital regions off-track betting corporation's capital acquisi- tion funds; and to amend part LLL of chapter 59 of the laws of 2021 amending the racing, pari-mutuel wagering and breeding law, relating to the utilization of funds in the Catskill and Capital regions off- track betting corporation's capital acquisition funds, in relation to the effectiveness thereof (Part DD); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of- state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breed- ing law and other laws relating to simulcasting; to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposi- tion of certain taxes, in relation to extending certain provisions A. 9009--B 3 thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part EE); to amend the tax law, in relation to providing for the advance payment of the earned income tax credit (Part FF); to amend the tax law, in relation to pass-through manufacturers zero percent tax rate (Part GG); to amend the tax law and the parks, recreation and historic pres- ervation law, in relation to extending the credit for rehabilitation of historic properties (Part HH); to amend the tax law, in relation to permitting deductions for commercial cannabis activity; and providing for the repeal of such provisions upon expiration thereof (Part II); to amend the racing, pari-mutuel wagering and breeding law, in relation to the New York Jockey Injury Compensation Fund, Inc. (Part JJ); to amend the tax law, in relation to increasing the aggregate cap on the amount of such credit (Part KK); to amend the tax law, in relation to exempting the sale of the first thirty-five thousand dollars of a battery, electric, or plug-in hybrid electric vehicle from state sales and compensating use taxes; and providing for the repeal of such provisions upon the expiration thereof (Part LL); to amend the tax law, in relation to establishing small business savings accounts (Part MM); to amend the tax law, in relation to establishing a credit for geothermal energy systems(Part NN); to amend the state finance law, in relation to the liability of a person who presents false claims for money or property to the state or a local government (Part OO); to amend the tax law, in relation to extending sales tax exemption for certain food and drink vending machines (Part PP); to amend the real property tax law, in relation to providing that state lands within the Eastport-South Manor Central School District are subject to taxation for school purposes (Part QQ); to amend the real property tax law and the tax law, in relation to the definition of income in relation to the enhanced STAR exemption (Part RR); to amend the real property tax law, in relation to an abatement of real proper- ty taxes for the creation or expansion of childcare centers in certain buildings in a city having a population of one million or more (Part SS); to amend the tax law and the administrative code of the city of New York, in relation to the earned income tax credit (Part TT); to amend the administrative code of the city of New York, in relation to establishing a tax credit for child care against the unincorporated business tax, general corporation tax, and the business corporation tax of 2015 (Part UU); to amend the tax law and the economic develop- ment law, in relation to the creation of the empire state digital gaming media production credit; and providing for the repeal of certain provisions upon expiration thereof (Part VV); and to amend the racing, pari-mutuel wagering and breeding law, in relation to mobile sports wagering licenses (Part WW) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2022-2023 state fiscal year. Each component is wholly contained within a Part identified as Parts A through WW. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes a reference to a A. 9009--B 4 section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section three of this act sets forth the general effective date of this act. PART A Section 1. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, clauses (vi), (vii) and (viii) as amended and clause (ix) as added by section 1 of part A of chapter 59 of the laws of 2021, are amended to read as follows: (vi) For taxable years beginning in two thousand twenty-three AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: [If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 but not over $18,834 plus 6.85% of $2,155,350 excess over $323,200 Over $2,155,350 but not over $144,336 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,845 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,478,845 plus 10.90% of excess over $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 but not over $18,544 plus 6.85% of excess over $2,155,350 $323,200 Over $2,155,350 but not over $144,047 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,555 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,478,555 plus 10.90% of excess over $25,000,000 (viii) For taxable years beginning after two thousand twenty-four and before two thousand twenty-eight the following rates shall apply:] A. 9009--B 5 If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 but not over $18,252 plus 6.85% of excess over $2,155,350 $323,200 Over $2,155,350 but not over $143,754 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,263 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,478,263 plus 10.90% of excess over $25,000,000 [(ix)](VII) For taxable years beginning after two thousand twenty-sev- en the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 but not over $18,252 plus 6.85% of excess $2,155,350 over $323,200 Over $2,155,350 $143,754 plus 8.82% of excess over $2,155,350 § 2. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of para- graph 1 of subsection (b) of section 601 of the tax law, clauses (vi), (vii) and (viii) as amended and clause (ix) as added by section 2 of part A of chapter 59 of the laws of 2021, are amended to read as follows: (vi) For taxable years beginning in two thousand twenty-three AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: [If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 but not over $15,845 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 but not over $108,125 plus 9.65% of excess over A. 9009--B 6 $5,000,000 $1,616,450 Over $5,000,000 but not over $434,638 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,638 plus 10.90% of excess over $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 but not over $15,612 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 but not over $107,892 plus 9.65% of excess over $5,000,000 $1,616,450 Over $5,000,000 but not over $434,404 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,404 plus 10.90% of excess over $25,000,000 (viii) For taxable years beginning after two thousand twenty-four and before two thousand twenty-eight the following rates shall apply:] If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over $20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over $107,650 Over $269,300 but not over $15,371 plus 6.85% of excess over $1,616,450 $269,300 Over $1,616,450 but not over $107,651 plus 9.65% of excess over $5,000,000 $1,616,450 Over $5,000,000 but not over $434,163 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,163 plus 10.90% of excess over $25,000,000 [(ix)](VII) For taxable years beginning after two thousand twenty-sev- en the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $512 plus 4.5% of excess over $17,650 $12,800 Over $17,650 but not over $730 plus 5.25% of excess over $20,900 $17,650 Over $20,900 but not over $901 plus 5.5% of excess over $107,650 $20,900 A. 9009--B 7 Over $107,650 but not over $5,672 plus 6.00% of excess $269,300 over $107,650 Over $269,300 but not over $15,371 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $107,651 plus 8.82% of excess over $1,616,450 § 3. Clauses (vi), (vii), (viii) and (ix) of subparagraph (B) of para- graph 1 of subsection (c) of section 601 of the tax law, clauses (vi), (vii) and (viii) as amended, and clause (ix) as added by section 3 of part A of chapter 59 of the laws of 2021, are amended to read as follows: (vi) For taxable years beginning in two thousand twenty-three AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: [If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 but not over $12,738 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 but not over $71,796 plus 9.65% of excess over $5,000,000 $1,077,550 Over $5,000,000 but not over $450,312 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,510,312 plus 10.90% of excess over $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 but not over $12,550 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 but not over $71,608 plus 9.65% of excess over $5,000,000 $1,077,550 Over $5,000,000 but not over $450,124 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,510,124 plus 10.90% of excess over $25,000,000 (viii) For taxable years beginning after two thousand twenty-four and before two thousand twenty-eight the following rates shall apply:] A. 9009--B 8 If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 but not over $12,356 plus 6.85% of excess over $1,077,550 $215,400 Over $1,077,550 but not over $71,413 plus 9.65% of excess over $5,000,000 $1,077,550 Over $5,000,000 but not over $449,929 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,509,929 plus 10.90% of excess over $25,000,000 [(ix)](VII) For taxable years beginning after two thousand twenty-sev- en the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 but not over $12,356 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,413 plus 8.82% of excess over $1,077,550 § 4. This act shall take effect immediately. PART B Section 1. This act enacts into law components of legislation relating to certain tax credits. Each component is wholly contained within a Subpart identified as Subparts A through C. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this act sets forth the general effective date of this act. SUBPART A Section 1. Subdivision 1 of section 210-B of the tax law is amended by adding a new paragraph (a-1) to read as follows: (A-1) FOR A TAXPAYER THAT IS AN ELIGIBLE FARMER, AS DEFINED IN SUBDI- VISION ELEVEN OF THIS SECTION, THE PERCENTAGE TO BE USED TO COMPUTE THE A. 9009--B 9 CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL BE TWENTY PERCENT FOR PROP- ERTY DESCRIBED IN SUBPARAGRAPH (I) OF PARAGRAPH (B) OF THIS SUBDIVISION THAT IS PRINCIPALLY USED BY THE TAXPAYER IN THE PRODUCTION OF GOODS BY FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE OR VITICULTURE. § 2. Subsection (a) of section 606 of the tax law is amended by adding a new paragraph 1-a to read as follows: (1-A) FOR A TAXPAYER THAT IS AN ELIGIBLE FARMER, AS DEFINED IN SUBSECTION (N) OF THIS SECTION, THE PERCENTAGE TO BE USED TO COMPUTE THE CREDIT ALLOWED UNDER THIS SUBSECTION SHALL BE TWENTY PERCENT FOR PROPER- TY DESCRIBED IN SUBPARAGRAPH (A) OF PARAGRAPH TWO OF THIS SUBSECTION THAT IS PRINCIPALLY USED BY THE TAXPAYER IN THE PRODUCTION OF GOODS BY FARMING, AGRICULTURE, HORTICULTURE, FLORICULTURE OR VITICULTURE. § 3. This act shall take effect immediately and apply to property placed in service on or after April 1, 2022. SUBPART B Section 1. Subsection (e) of section 42 of the tax law, as amended by section 1 of part FF of chapter 59 of the laws of 2021, is amended to read as follows: (e) For taxable years beginning on or after January first, two thou- sand seventeen and before January first, two thousand eighteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and two hundred fifty dollars. For taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and three hundred dollars. For taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and five hundred dollars. For taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and four hundred dollars. For taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand [twenty-five] TWENTY-SIX, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and [six] TWELVE hundred dollars. § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, as amended by section 2 of part FF of chapter 59 of the laws of 2021, is amended to read as follows: § 5. This act shall take effect immediately and shall apply only to taxable years beginning on or after January 1, 2017 and before January 1, [2025] 2026. § 3. This act shall take effect immediately. SUBPART C Section 1. Subdivision (f) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: A. 9009--B 10 (f) A taxpayer claiming the credit allowed under this section shall not be allowed to claim any other tax credit allowed under this chapter, EXCEPT THE CREDIT ALLOWED UNDER SECTION FORTY-TWO-A OF THIS ARTICLE, with respect to any eligible farm employee included in the total number of eligible farm employees used to determine the amount of the credit allowed under this section. § 2. The tax law is amended by adding a new section 42-a to read as follows: § 42-A. FARM EMPLOYER OVERTIME CREDIT. (A) NOTWITHSTANDING SUBDIVISION (F) OF SECTION FORTY-TWO OF THIS ARTICLE, A TAXPAYER THAT IS A FARM EMPLOYER OR AN OWNER OF A FARM EMPLOYER SHALL BE ELIGIBLE FOR A CREDIT AGAINST THE TAX IMPOSED UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP- TER, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (H) OF THIS SECTION. (B) A FARM EMPLOYER IS A CORPORATION (INCLUDING A NEW YORK S CORPO- RATION), A SOLE PROPRIETORSHIP, A LIMITED LIABILITY COMPANY OR A PART- NERSHIP THAT IS AN ELIGIBLE FARMER. (C) FOR PURPOSES OF THIS SECTION, THE TERM "ELIGIBLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING AS DEFINED IN SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER FOR THE TAXA- BLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT OF FEDERAL GROSS INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR IN EXCESS OF THIRTY THOUSAND DOLLARS. FOR PURPOSES OF THIS SECTION, PAYMENTS FROM THE STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM FARMING FOR OTHERWISE ELIGIBLE FARMERS. (D) AN ELIGIBLE FARM EMPLOYEE IS AN INDIVIDUAL WHO MEETS THE DEFI- NITION OF A "FARM LABORER" UNDER SECTION TWO OF THE LABOR LAW WHO IS EMPLOYED BY A FARM EMPLOYER IN NEW YORK STATE, BUT EXCLUDING GENERAL EXECUTIVE OFFICERS OF THE FARM EMPLOYER. (E) ELIGIBLE OVERTIME IS THE AGGREGATE NUMBER OF HOURS OF WORK PERFORMED DURING THE TAXABLE YEAR BY AN ELIGIBLE FARM EMPLOYEE THAT IN ANY CALENDAR WEEK EXCEEDS THE OVERTIME WORK THRESHOLD SET BY THE COMMIS- SIONER OF LABOR PURSUANT TO THE RECOMMENDATION OF THE FARM LABORERS WAGE BOARD, PROVIDED THAT WORK PERFORMED IN SUCH CALENDAR WEEK IN EXCESS OF SIXTY HOURS SHALL NOT BE INCLUDED. (F) SPECIAL RULES. IF MORE THAN FIFTY PERCENT OF SUCH ELIGIBLE FARM- ER'S FEDERAL GROSS INCOME FROM FARMING IS FROM THE SALE OF WINE FROM A LICENSED FARM WINERY AS PROVIDED FOR IN ARTICLE SIX OF THE ALCOHOLIC BEVERAGE CONTROL LAW, OR FROM THE SALE OF CIDER FROM A LICENSED FARM CIDERY AS PROVIDED FOR IN SECTION FIFTY-EIGHT-C OF THE ALCOHOLIC BEVER- AGE CONTROL LAW, THEN AN ELIGIBLE FARM EMPLOYEE OF SUCH ELIGIBLE FARMER SHALL BE INCLUDED FOR PURPOSES OF CALCULATING THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION ONLY IF SUCH ELIGIBLE FARM EMPLOYEE IS EMPLOYED BY SUCH ELIGIBLE FARMER ON QUALIFIED AGRICULTURAL PROPERTY AS DEFINED IN PARAGRAPH FOUR OF SUBSECTION (N) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. (G) THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE AGGREGATE AMOUNT OF SUCH CREDIT ALLOWED PER ELIGIBLE FARM EMPLOY- EE, AS FOLLOWS. THE AMOUNT OF THE CREDIT ALLOWED PER ELIGIBLE FARM EMPLOYEE SHALL BE EQUAL TO THE PRODUCT OF (I) THE ELIGIBLE OVERTIME WORKED DURING THE TAXABLE YEAR BY THE ELIGIBLE FARM EMPLOYEE AND (II) THE OVERTIME RATE PAID BY THE FARM EMPLOYER TO THE ELIGIBLE FARM EMPLOY- EE LESS SUCH EMPLOYEE'S REGULAR RATE OF PAY PLUS ANY RELATED FRINGE BENEFIT COSTS. A. 9009--B 11 (H) ADVANCE PAYMENT OPTION. (1) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO AND THEREAFTER, A TAXPAYER MAY CHOOSE TO USE ANY ONE OR MORE OF QUARTERLY PERIODS (JULY THIRTY- FIRST, OCTOBER THIRTY-FIRST, JANUARY THIRTY-FIRST OR APRIL THIRTIETH) AS THE DATE TO CALCULATE THEIR OVERTIME CREDIT BASED ON THE ELIGIBLE OVER- TIME THRESHOLD ENDING SUCH DATE TO THE EXTENT THE OVERTIME RATE WAS PAID TO ELIGIBLE EMPLOYEES, AS DETERMINED BY SUBDIVISIONS (E) AND (G) OF THIS SECTION. (2) A TAXPAYER SHALL BE REQUIRED TO SUBMIT THE FORM PRESCRIBED BY THE COMMISSIONER, ATTESTING THE ELIGIBILITY OF TAX CREDIT TO THE COMMISSION- ER. (3) A TAXPAYER MUST SUBMIT SUCH REQUEST NO LATER THAN TWENTY DAYS IMMEDIATELY FOLLOWING THE END OF EACH QUARTERLY PERIOD TO RECEIVE ADVANCE PAYMENT. FOR THOSE TAXPAYERS WHO HAVE REQUESTED AN ADVANCE PAYMENT AND FOR WHOM THE COMMISSIONER HAS DETERMINED ELIGIBLE FOR THIS CREDIT, THE COMMISSIONER SHALL ADVANCE A PAYMENT OF THE TAX CREDIT ALLOWED TO THE TAXPAYER AS SOON AS PRACTICABLE. THE REMAINDER OF THE CREDIT, IF ANY, SHALL BE RECONCILED UPON FILING TAX RETURNS DUE FOR THE TAXABLE YEAR. (I) CROSS REFERENCES: FOR APPLICATION OF THE CREDIT PROVIDED IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58. (2) ARTICLE 22: SECTION 606, SUBSECTION (NNN). § 3. Section 210-B of the tax law is amended by adding a new subdivi- sion 58 to read as follows: 58. FARM EMPLOYER OVERTIME CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAY- ER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO-A OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) FARM EMPLOYER OVERTIME AMOUNT OF CREDIT UNDER CREDIT UNDER SUBSECTION (NNN) SUBDIVISION FIFTY-EIGHT OF SECTION TWO HUNDRED TEN-B § 5. Section 606 of the tax law is amended by adding a new subsection (nnn) to read as follows: (NNN) FARM EMPLOYER OVERTIME CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO-A OF THIS CHAP- TER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED IN ACCORDANCE WITH THE PROVISION OF SECTION SIX HUNDRED A. 9009--B 12 EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. § 6. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. § 2. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through C of this act shall be as specifically set forth in the last section of such Subparts. PART C Section 1. Paragraph 39 of subsection (c) of section 612 of the tax law, as added by section 1 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (39) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of GREATER THAN ZERO BUT less than two hundred fifty thousand dollars; (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NET FARM INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS; OR (III) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE; AND (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA- BLE YEAR. (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- A. 9009--B 13 NIES, PARTNERSHIPS, OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. § 2. Paragraph 35 of subdivision (c) of section 11-1712 of the admin- istrative code of the city of New York, as added by section 2 of part Y of chapter 59 of the laws of 2013, is amended to read as follows: (35) (A) In the case of a taxpayer who is a small business OR A TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A SMALL BUSINESS, who OR WHICH has business income and/or farm income as defined in the laws of the United States, an amount equal to [three] FIFTEEN percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero[, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attribut- able to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen]. (B) (I) For the purposes of this paragraph, the term small business shall mean: (I) a sole proprietor [or a farm business] who employs one or more persons during the taxable year and who has net business income or net farm income of GREATER THAN ZERO BUT less than two hundred fifty thousand dollars; (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NET FARM INCOME THAT IS GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS; OR (III) A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPO- RATION THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B) OR PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THE TAX LAW, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THE TAX LAW FOR THE TAXA- BLE YEAR. (C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA- NIES, PARTNERSHIPS, OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. § 3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART D Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 46 to read as follows: A. 9009--B 14 (46) THE AMOUNT OF ANY STUDENT LOAN FORGIVENESS AWARD MADE BY THE STATE, INCLUDING ANY AWARDS MADE PURSUANT TO A PROGRAM ESTABLISHED UNDER ARTICLE FOURTEEN OF THE EDUCATION LAW, TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME. § 2. This act shall take effect immediately and shall apply to tax years beginning on or after January 1, 2022. PART E Section 1. The economic development law is amended by adding a new article 26 to read as follows: ARTICLE 26 COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM SECTION 480. SHORT TITLE. 481. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. 482. DEFINITIONS. 483. ELIGIBILITY CRITERIA. 484. APPLICATION AND APPROVAL PROCESS. 485. COVID-19 CAPITAL COSTS TAX CREDIT. 486. POWERS AND DUTIES OF THE COMMISSIONER. 487. MAINTENANCE OF RECORDS. 488. REPORTING. 489. CAP ON TAX CREDIT. § 480. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM ACT". § 481. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS HEREBY FOUND AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF PUBLIC POLICY, TO PROVIDE CRITICAL ASSISTANCE TO SMALL BUSINESSES TO COMPLY WITH PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS, AND TO TAKE INFECTIOUS DISEASE MITIGATION MEASURES RELATED TO THE COVID-19 PANDEMIC. THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM IS CREATED TO PROVIDE FINANCIAL ASSISTANCE TO ECONOMICALLY HARMED BUSINESSES TO OFFER RELIEF AND REDUCE THE DURATION AND SEVERITY OF THE CURRENT ECONOMIC DIFFICUL- TIES. § 482. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE: 1. "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A BUSINESS ENTITY BY THE DEPARTMENT AFTER THE DEPARTMENT HAS VERIFIED THAT THE BUSINESS ENTITY HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE. THE CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF THE TAX CRED- IT UNDER THIS ARTICLE THAT A BUSINESS ENTITY MAY CLAIM, PURSUANT TO SECTION FOUR HUNDRED EIGHTY-FIVE OF THIS ARTICLE. 2. "COMMISSIONER" SHALL MEAN COMMISSIONER OF THE DEPARTMENT OF ECONOM- IC DEVELOPMENT. 3. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF ECONOMIC DEVELOPMENT. 4. "QUALIFIED COVID-19 CAPITAL COSTS" SHALL MEAN COSTS INCURRED FROM JANUARY FIRST, TWO THOUSAND TWENTY-ONE THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO AT A BUSINESS LOCATION IN NEW YORK STATE TO COMPLY WITH PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS RELATED TO THE COVID-19 PANDEMIC, OR TO GENERALLY INCREASE SAFETY THROUGH INFECTIOUS DISEASE MITIGATION, INCLUDING COSTS FOR: (I) SUPPLIES TO DISINFECT AND/OR PROTECT AGAINST COVID-19 TRANSMISSION; (II) RESTOCK- ING OF PERISHABLE GOODS TO REPLACE THOSE LOST DURING THE COVID-19 PANDEMIC; (III) PHYSICAL BARRIERS AND SNEEZE GUARDS; (IV) HAND SANITIZER STATIONS; (V) RESPIRATORY DEVICES SUCH AS AIR PURIFIER SYSTEMS INSTALLED AT THE BUSINESS ENTITY'S LOCATION; (VI) SIGNAGE RELATED TO THE COVID-19 PANDEMIC INCLUDING, BUT NOT LIMITED TO, SIGNAGE DETAILING VACCINE AND A. 9009--B 15 MASKING REQUIREMENTS, AND SOCIAL DISTANCING; (VII) MATERIALS REQUIRED TO DEFINE AND/OR PROTECT SPACE SUCH AS BARRIERS; (VIII) MATERIALS NEEDED TO BLOCK OFF CERTAIN SEATS TO ALLOW FOR SOCIAL DISTANCING; (IX) CERTAIN POINT OF SALE PAYMENT EQUIPMENT TO ALLOW FOR CONTACTLESS PAYMENT; (X) EQUIPMENT AND/OR MATERIALS AND SUPPLIES FOR NEW PRODUCT LINES IN RESPONSE TO THE COVID-19 PANDEMIC; (XI) SOFTWARE FOR ONLINE PAYMENT PLATFORMS TO ENABLE DELIVERY OR CONTACTLESS PURCHASES; (XII) BUILDING CONSTRUCTION AND RETROFITS TO ACCOMMODATE SOCIAL DISTANCING AND INSTAL- LATION OF AIR PURIFYING EQUIPMENT BUT NOT FOR COSTS FOR NON-COVID-19 PANDEMIC RELATED CAPITAL RENOVATIONS OR GENERAL "CLOSED FOR RENOVATIONS" UPGRADES; (XIII) MACHINERY AND EQUIPMENT TO ACCOMMODATE CONTACTLESS SALES; (XIV) MATERIALS TO ACCOMMODATE INCREASED OUTDOOR ACTIVITY SUCH AS HEAT LAMPS, OUTDOOR LIGHTING, AND MATERIALS RELATED TO OUTDOOR SPACE EXPANSIONS; AND (XV) OTHER COSTS AS DETERMINED BY THE DEPARTMENT TO BE ELIGIBLE UNDER THIS SECTION; PROVIDED, HOWEVER, THAT "QUALIFIED COVID-19 CAPITAL COSTS" DO NOT INCLUDE ANY COST PAID FOR WITH OTHER COVID-19 GRANT FUNDS AS DETERMINED BY THE COMMISSIONER. § 483. ELIGIBILITY CRITERIA. 1. TO BE ELIGIBLE FOR A TAX CREDIT UNDER THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM, A BUSINESS ENTITY MUST: (A) BE A SMALL BUSINESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THIS CHAPTER AND HAVE TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OR LESS OF GROSS RECEIPTS IN THE TAXABLE YEAR THAT INCLUDES DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-ONE; AND (B) OPERATE A BUSINESS LOCATION IN NEW YORK STATE. 2. A BUSINESS ENTITY MUST BE IN SUBSTANTIAL COMPLIANCE WITH ANY PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS RELATED TO THE ENTITY'S BUSINESS SECTOR OR OTHER LAWS AND REGULATIONS AS DETERMINED BY THE COMMISSIONER. IN ADDITION, A BUSINESS ENTITY MAY NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED BINDING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY. § 484. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER. 2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES AND A TIMEFRAME FOR BUSINESS ENTITIES TO SUBMIT APPLICATIONS. AS PART OF THE APPLICATION, EACH BUSINESS ENTITY MUST: (A) PROVIDE EVIDENCE IN A FORM AND MANNER PRESCRIBED BY THE COMMIS- SIONER OF THEIR BUSINESS ELIGIBILITY; (B) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE BUSINESS ENTITY'S TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS PROGRAM SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW; (C) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE; (D) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT IS IN SUBSTANTIAL COMPLIANCE WITH ALL EMERGENCY ORDERS OR PUBLIC HEALTH REGULATIONS CURRENTLY REQUIRED OF SUCH ENTITY, AND LOCAL, AND STATE TAX LAWS; (E) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT DID NOT INCLUDE ANY COST PAID FOR WITH OTHER COVID-19 GRANT FUNDS AS DETERMINED BY THE COMMISSIONER IN ITS APPLICATION FOR A TAX CREDIT UNDER THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM; AND (F) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE DEPARTMENT RELEVANT TO THIS ARTICLE. 3. AFTER REVIEWING A BUSINESS ENTITY'S COMPLETED FINAL APPLICATION AND DETERMINING THAT THE BUSINESS ENTITY MEETS THE ELIGIBILITY CRITERIA AS A. 9009--B 16 SET FORTH IN THIS ARTICLE, THE DEPARTMENT MAY ISSUE TO THAT BUSINESS ENTITY A CERTIFICATE OF TAX CREDIT. 4. THE BUSINESS ENTITY MUST SUBMIT ITS APPLICATION BY MARCH THIRTY- FIRST, TWO THOUSAND TWENTY-THREE. § 485. COVID-19 CAPITAL COSTS TAX CREDIT. 1. A BUSINESS ENTITY IN THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SECTION FOUR HUNDRED EIGHTY-THREE OF THIS ARTICLE MAY BE ELIGIBLE TO CLAIM A CREDIT EQUAL TO FIFTY PERCENT OF ITS QUALIFIED COVID-19 CAPITAL COSTS AS DEFINED IN SUBDIVISION FOUR OF SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE. 2. A BUSINESS ENTITY, INCLUDING A PARTNERSHIP, LIMITED LIABILITY COMPANY AND SUBCHAPTER S CORPORATION, MAY NOT RECEIVE IN EXCESS OF TWEN- TY-FIVE THOUSAND DOLLARS UNDER THIS PROGRAM. 3. THE CREDIT SHALL BE ALLOWED AS PROVIDED IN SECTION FORTY-SEVEN, SUBDIVISION FIFTY-EIGHT OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (NNN) OF SECTION SIX HUNDRED SIX OF THE TAX LAW. 4. A BUSINESS ENTITY MAY CLAIM THE TAX CREDIT IN THE TAXABLE YEAR THAT INCLUDES THE DATE THE CERTIFICATE OF TAX CREDIT WAS ISSUED BY THE DEPARTMENT PURSUANT TO SUBDIVISION THREE OF SECTION FOUR HUNDRED EIGHT- Y-FOUR OF THIS ARTICLE. § 486. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER MAY PROMULGATE REGULATIONS ESTABLISHING AN APPLICATION PROCESS AND ELIGIBIL- ITY CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES OF THIS ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-NINE OF THIS ARTICLE WHICH, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS. 2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE ISSUED BY THE COMMISSIONER TO ELIGIBLE BUSINESSES. SUCH CERTIFICATE SHALL CONTAIN SUCH INFORMATION AS REQUIRED BY THE DEPARTMENT OF TAXATION AND FINANCE. 3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY BUSI- NESS ENTITY FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-THREE OF THIS ARTICLE, OR FOR FAILING TO MEET THE REQUIREMENTS SET FORTH IN SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY-FOUR OF THIS ARTICLE. § 487. MAINTENANCE OF RECORDS. EACH BUSINESS ENTITY PARTICIPATING IN THE PROGRAM SHALL KEEP ALL RELEVANT RECORDS FOR THEIR DURATION OF PROGRAM PARTICIPATION FOR AT LEAST THREE YEARS. § 488. REPORTING. EACH BUSINESS ENTITY PARTICIPATING IN THIS PROGRAM SHALL SUBMIT A PERFORMANCE REPORT TO THE DEPARTMENT AT A TIME PRESCRIBED IN REGULATIONS BY THE COMMISSIONER. THE COMMISSIONER SHALL ON OR BEFORE APRIL FIRST, TWO THOUSAND TWENTY-THREE AND EVERY QUARTER THEREAFTER, UNTIL PROGRAM FUNDS ARE FULLY EXPENDED, SUBMIT A REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE COMMITTEE, AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, SETTING FORTH THE ACTIVITIES UNDERTAKEN BY THE PROGRAM. SUCH REPORT SHALL INCLUDE, BUT NOT NECESSARILY BE LIMITED TO, THE FOLLOWING IN EACH REPORTING PERIOD: TOTAL NUMBER OF PARTICIPANTS APPROVED AND THE ECONOMIC DEVELOPMENT REGION IN WHICH THE BUSINESS IS LOCATED; TOTAL AMOUNT OF PAYMENTS DISBURSED AND TAX CREDITS CLAIMED, AND AVERAGE AMOUNT OF PAYMENTS DISBURSED AND TAX CREDITS CLAIMED; NAMES OF PAYMENT RECIPIENTS AND TAX CREDITS CLAIMED; AND SUCH OTHER INFORMATION AS THE COMMISSIONER DETERMINES NECESSARY AND APPROPRIATE TO EFFECTUATE A. 9009--B 17 THE PURPOSE OF THE PROGRAM. SUCH REPORTS SHALL, AT THE SAME TIME, BE INCLUDED ON THE DEPARTMENT'S WEBSITE AND ANY OTHER PUBLICLY ACCESSIBLE DATABASE THAT LISTS ECONOMIC DEVELOPMENT PROGRAMS AS DETERMINED BY THE DEPARTMENT. § 489. CAP ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE MAY NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS. § 2. The tax law is amended by adding a new section 47 to read as follows: § 47. COVID-19 CAPITAL COSTS TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP- TER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (F) OF THIS SECTION. THE AMOUNT OF THE CREDIT IS EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SECTION FOUR HUNDRED EIGHTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW. NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER WHICH IS INCLUDED AS PART OF THE CALCU- LATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT ALLOWED UNDER THIS CHAPTER. (B) ELIGIBILITY. TO BE ELIGIBLE FOR THE COVID-19 CAPITAL COSTS TAX CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF TAX CREDIT BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO SUBDIVISION THREE OF SECTION FOUR HUNDRED EIGHTY-FOUR OF THE ECONOMIC DEVELOPMENT LAW, WHICH CERTIFICATE SHALL SET FORTH THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED FOR THE TAXABLE YEAR. THE TAXPAYER SHALL BE ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT FOR THAT TAXABLE YEAR. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER S CORPORATION THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION. (C) TAX RETURN REQUIREMENT. THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT. (D) INFORMATION SHARING. NOTWITHSTANDING ANY PROVISION OF THIS CHAP- TER, EMPLOYEES OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPART- MENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE: (1) INFORMATION DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT TO A TAXPAYER'S ELIGIBILITY TO PARTICIPATE IN THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM; (2) INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED OR CLAIMED PURSUANT TO THIS SECTION AND TAXPAYERS THAT ARE APPLYING FOR THE CREDIT OR THAT ARE CLAIMING THE CREDIT; AND (3) INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM FORMS SUBMITTED TO THE DEPARTMENT AND APPLICATIONS FOR ADMISSION INTO THE COVID-19 CAPITAL COSTS TAX CREDIT PROGRAM. EXCEPT AS PROVIDED IN PARA- GRAPH TWO OF THIS SUBDIVISION, ALL INFORMATION EXCHANGED BETWEEN THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT SHALL NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFOR- MATION LAW. (E) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER ARTICLE TWENTY-SIX OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH DEPARTMENT, THE AMOUNT OF CREDIT DESCRIBED IN THIS SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL. A. 9009--B 18 (F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58; (2) ARTICLE 22: SECTION 606, SUBSECTION (NNN). § 3. Section 210-B of the tax law is amended by adding a new subdivi- sion 58 to read as follows: 58. COVID-19 CAPITAL COSTS TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON. § 4. Section 606 of the tax law is amended by adding a new subsection (nnn) to read as follows: (NNN) COVID-19 CAPITAL COSTS TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) COVID-19 CAPITAL COSTS AMOUNT OF CREDIT UNDER TAX CREDIT UNDER SUBSECTION (NNN) SUBDIVISION 58 OF SECTION TWO HUNDRED TEN-B § 6. This act shall take effect immediately. PART F Section 1. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (2) The amount of the credit shall be the product (or pro rata share of the product, in the case of a member of a partnership) of twenty-five percent and the sum of the qualified production expenditures paid for during the qualified New York city musical and theatrical production's credit period. Provided however that the amount of the credit cannot exceed three million dollars per qualified New York city musical and theatrical production for productions whose first performance is [during the first year in which applications are accepted] PRIOR TO JANUARY FIRST, TWO THOUSAND TWENTY-THREE. For productions whose first perform- A. 9009--B 19 ance is [during the second year in which applications are accepted] ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, such cap shall decrease to one million five hundred thousand dollars per qualified New York city musical and theatrical production unless the New York city tourism economy has not sufficiently recovered, as determined by the department of economic development in consultation with the division of the budget. In determining whether the New York city tourism economy has sufficiently recovered, the department of economic development will perform an analysis of key New York city economic indicators which shall include, but not be limited to, hotel occupancy rates and travel metrics. The department of economic development's analysis shall also be informed by the status of any remaining COVID-19 restrictions affecting New York city musical and theatrical productions. In no event shall a qualified New York city musical and theatrical production be eligible for more than one credit under this program. § 2. Section 24-c of the tax law is amended by adding a new subdivi- sion (h) to read as follows: (H) RECAPTURE. IN ADDITION TO ANY OTHER REQUIREMENTS UNDER THIS SECTION, ANY QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION COMPANY THAT PERFORMS IN A QUALIFIED NEW YORK CITY PRODUCTION FACILITY AND APPLIED TO RECEIVE A CREDIT UNDER THIS SECTION SHALL BE REQUIRED: (1) TO HAVE EXTENDED AN OFFER OF RE-EMPLOYMENT TO ALL EMPLOYEES AT SUBSTANTIALLY SIMILAR RATES OF PAY AND BENEFITS TO SUCH RATES AND BENE- FITS THAT WERE PREVIOUSLY PROVIDED DURING THE FIRST WEEK OF MARCH, TWO THOUSAND TWENTY IF SUCH PRODUCTION WAS PERFORMED PRIOR TO MARCH TWELFTH, TWO THOUSAND TWENTY; OR (2) IF SUCH PRODUCTION WAS NOT PERFORMED IN A QUALIFIED NEW YORK CITY PRODUCTION FACILITY PRIOR TO MARCH TWELFTH, TWO THOUSAND TWENTY, SUCH PRODUCTION COMPANY SHALL PROVIDE ALL EMPLOYEES PROVIDING SERVICES FOR SUCH PRODUCTION WITH NO LESS THAN THE TERMS AND CONDITIONS OF EMPLOYMENT, INCLUDING RATES OF PAY AND BENEFITS, THAT WERE PROVIDED TO EMPLOYEES FOR SIMILAR WORK DURING THE FIRST WEEK OF MARCH, TWO THOUSAND TWENTY. IF SUCH PRODUCTION COMPANY HAS FAILED AND/OR FAILS TO EXTEND SUBSTANTIALLY SIMILAR TERMS AND CONDITIONS TO ALL EMPLOYEES PROVIDING SERVICES, THE CREDIT ALLOWED UNDER PARAGRAPH TWO OF SUBDIVI- SION (A) OF THIS SECTION SHALL BE REDUCED BY A FRACTION WHICH SHALL BE COMPUTED AS FOLLOWS: THE NUMERATOR IS THE NUMBER OF EMPLOYEES WHO HAVE NOT RECEIVED THE SIMILAR TERMS AND CONDITIONS AT ANY TIME DURING THE CREDIT PERIOD UNDER PARAGRAPH FOUR OF SUBDIVISION (B) AND THE DENOMINA- TOR IS THE TOTAL NUMBER OF EMPLOYEES PROVIDING SUCH SERVICES DURING SUCH PERIOD. § 3. Subparagraph (i) of paragraph 5 of subdivision (b) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (i) "The credit period of a qualified New York city musical and theat- rical production company" is the period starting on the production start date and ending on the earlier of the date the qualified musical and theatrical production has expended sufficient qualified production expenditures to reach its credit cap, [March thirty-first] SEPTEMBER THIRTIETH, two thousand twenty-three or the date the qualified musical and theatrical production closes. § 4. Paragraph 1 of subdivision (f) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (1) The aggregate amount of tax credits allowed under this section, subdivision fifty-seven of section two hundred ten-B and subsection (mmm) of section six hundred six of this chapter shall be [one] TWO A. 9009--B 20 hundred million dollars. Such aggregate amount of credits shall be allo- cated by the department of economic development among taxpayers based on the date of first performance of the qualified musical and theatrical production. § 5. Paragraph 2 of subdivision (f) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (2) The commissioner of economic development, after consulting with the commissioner, shall promulgate regulations to establish procedures for the allocation of tax credits as required by this section. Such rules and regulations shall include provisions describing the applica- tion process, the due dates for such applications, the standards that will be used to evaluate the applications, the documentation that will be provided by applicants to substantiate to the department the amount of qualified production expenditures of such applicants, and such other provisions as deemed necessary and appropriate. Notwithstanding any other provisions to the contrary in the state administrative procedure act, such rules and regulations may be adopted on an emergency basis. In no event shall a qualified New York city musical and theatrical production submit an application for this program after [December thir- ty-first, two thousand twenty-two] JUNE THIRTIETH, TWO THOUSAND TWENTY- THREE. § 6. Subdivision (g) of section 24-c of the tax law, as added by section 1 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: (g) Any qualified New York city musical and theatrical production company that performs in a qualified New York city production facility and applies to receive a credit under this section shall be required to: (1) participate in a New York state diversity and arts job training program; (2) create and implement a plan to ensure that their production is available and accessible for low-or no-cost to low income New York- ers; and (3) contribute to the New York state council on the arts, cultural program fund an amount up to fifty percent of the total credits received if its production earns ongoing revenue prospectively after the end of the credit period that is at least equal to two hundred percent of its ongoing production costs, with such amount payable from twenty- five percent of net operating profits, such amounts payable on a monthly basis, up until such fifty percent of the total credit amount is reached. Any funds deposited pursuant to this subdivision may be used for arts and cultural educational and workforce development GRANT programs OF THE NEW YORK STATE COUNCIL ON THE ARTS. § 7. Subdivision 5 of section 99-ll of the state finance law, as added by section 5 of subpart B of part PP of chapter 59 of the laws of 2021, is amended to read as follows: 5. The moneys in such fund shall be expended for the purpose of supplementing art and cultural GRANT programs OF THE NEW YORK STATE COUNCIL ON THE ARTS for secondary and elementary children, including programs that increase access to art and cultural programs and events for children in underserved communities. § 8. Section 6 of subpart B of part PP of chapter 59 of the laws of 2021 amending the tax law and the state finance law relating to estab- lishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund, is amended to read as follows: § 6. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2021, and before January 1, 2024 A. 9009--B 21 and shall expire and be deemed repealed [on] January 1, 2024; provided, however that the obligations under paragraph 3 of subdivision [g] (G) of section 24-c of the tax law, as added by section one of this act, shall remain in effect until December 31, 2025. § 9. This act shall take effect immediately; provided that the amend- ments to section 24-c of the tax law and section 99-11 of the state finance law made by sections one, two, three, four, five, six, and seven of this act shall not affect the repeal of such sections and shall be deemed repealed therewith. PART G Section 1. Paragraph (a) of subdivision 1 of section 209-b of the tax law, as amended by section 7 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (a) For the privilege of exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing proper- ty in a corporate or organized capacity, or of maintaining an office, or of deriving receipts from activity in the metropolitan commuter trans- portation district, for all or any part of its taxable year, there is hereby imposed on every corporation, other than a New York S corpo- ration, subject to tax under section two hundred nine of this article, or any receiver, referee, trustee, assignee or other fiduciary, or any officer or agent appointed by any court, who conducts the business of any such corporation, a tax surcharge, in addition to the tax imposed under section two hundred nine of this article, to be computed at the rate of seventeen percent of the tax imposed under such section for such taxable years or any part of such taxable years ending on or after December thirty-first, nineteen hundred eighty-three and before January first, two thousand fifteen after the deduction of any credits otherwise allowable under this article, at the rate of twenty-five and six-tenths percent of the tax imposed under such section for taxable years begin- ning on or after January first, two thousand fifteen and before January first, two thousand sixteen before the deduction of any credits other- wise allowable under this article, [and] at the rate determined by the commissioner pursuant to paragraph (f) of this subdivision of the tax imposed under such section, for taxable years beginning on or after January first, two thousand sixteen AND BEFORE JANUARY FIRST, TWO THOU- SAND TWENTY-THREE before the deduction of any credits otherwise allow- able under this article, AND AT THE RATE OF NO LESS THAN THIRTY PERCENT OF THE TAX IMPOSED UNDER SUCH SECTION FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE BEFORE THE DEDUCTION OF ANY CREDITS OTHERWISE ALLOWABLE UNDER THIS ARTICLE. However, such rate of tax surcharge shall be applied only to that portion of the tax imposed under section two hundred nine of this article before the deduction of any credits otherwise allowable under this article which is attributable to the taxpayer's business activity carried on within the metropolitan commuter transportation district; and provided, further, the surcharge computed on a combined report shall include a surcharge on the fixed dollar minimum tax for each member of the combined group subject to the surcharge under this subdivision. § 2. This act shall take effect immediately. PART H A. 9009--B 22 Section 1. Paragraphs (a), (b) and (d) of subdivision 29 of section 210-B of the tax law, paragraph (a) and subparagraph 2 of paragraph (b) as amended by section 1 of part II of chapter 59 of the laws of 2021, paragraph (b) as amended by section 1 of part Q of chapter 59 of the laws of 2018, subparagraph 1 of paragraph (b) as amended by chapter 490 of the laws of 2019 and paragraph (d) as added by section 17 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-three] TWENTY-SIX, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than [one year and for not less than thirty-five hours each week] TWELVE CONTINUOUS AND UNINTERRUPTED MONTHS (HEREINAFTER REFERRED TO AS THE TWELVE-MONTH PERI- OD) IN A FULL-TIME OR PART-TIME POSITION, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qual- ified veteran completes [one year] THE TWELVE-MONTH PERIOD of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (b) Qualified veteran. A qualified veteran is an individual: (1) who served on active duty in the United States army, navy, air force, SPACE FORCE, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia, OR WHO SERVED IN THE ACTIVE UNIFORMED SERVICES OF THE UNITED STATES AS A MEMBER OF THE COMMISSIONED CORPS OF THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION OR THE COMMISSIONED CORPS OF THE UNITED STATES PUBLIC HEALTH SERVICE; who (i) was released from active duty by general or honorable discharge [after September eleventh, two thousand one], or (ii) has a qualifying condition, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one], or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thou- sand one]; (2) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [twenty-two] TWENTY-FIVE; and (3) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. (d) Amount of credit. The amount of the credit shall be [ten] FIFTEEN percent of the total amount of wages paid to the qualified veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employ- ment. Provided, however, that, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be [fifteen] TWENTY percent of the total amount of wages paid to the quali- fied veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employment. The credit allowed pursuant to this subdivision shall not exceed in any taxable year, [five] FIFTEEN thousand dollars for any A. 9009--B 23 qualified veteran [and fifteen] EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD, TWENTY thousand dollars for any qualified veteran who is a disabled veteran EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD, SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED VETERAN EMPLOYED IN A PART-TIME POSI- TION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOU- SAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD, AND TEN THOUSAND DOLLARS FOR ANY QUALIFIED VETERAN WHO IS A DISABLED VETERAN EMPLOYED IN A PART-TIME POSITION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOUSAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD. § 2. Paragraphs 1, 2 and 4 of subsection (a-2) of section 606 of the tax law, paragraph 1 and subparagraph (B) of paragraph 2 as amended by section 2 of part II of chapter 59 of the laws of 2021, paragraph 2 as amended by section 2 of part Q of chapter 59 of the laws of 2018, subparagraph (A) of paragraph 2 as amended by chapter 490 of the laws of 2019 and paragraph 4 as added by section 3 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-three] TWENTY-SIX, a taxpayer shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article, for hiring and employing, for not less than [one year and for not less than thirty-five hours each week] TWELVE CONTINUOUS AND UNIN- TERRUPTED MONTHS (HEREINAFTER REFERRED TO AS THE TWELVE-MONTH PERIOD) IN A FULL-TIME OR PART-TIME POSITION, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes [one year] THE TWELVE-MONTH PERIOD of employment by the taxpayer. If the taxpayer claims the credit allowed under this subsection, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, SPACE FORCE, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia, OR WHO SERVED IN THE ACTIVE UNIFORMED SERVICES OF THE UNITED STATES AS A MEMBER OF THE COMMISSIONED CORPS OF THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION OR THE COMMISSIONED CORPS OF THE UNITED STATES PUBLIC HEALTH SERVICE; who (i) was released from active duty by general or honorable discharge [after September eleventh, two thousand one], or (ii) has a qualifying condition, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one], or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thou- sand one]; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [twenty-two] TWENTY-FIVE; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any A. 9009--B 24 week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. (4) Amount of credit. The amount of the credit shall be [ten] FIFTEEN percent of the total amount of wages paid to [he] THE qualified veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employ- ment. Provided, however, that, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be [fifteen] TWENTY percent of the total amount of wages paid to the quali- fied veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employment. The credit allowed pursuant to this subsection shall not exceed in any taxable year, [five] FIFTEEN thousand dollars for any qualified veteran [and fifteen] EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD, TWENTY thousand dollars for any qualified veteran who is a disabled veteran EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD, SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED VETERAN EMPLOYED IN A PART-TIME POSI- TION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOU- SAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD, AND TEN THOUSAND DOLLARS FOR ANY QUALIFIED VETERAN WHO IS A DISABLED VETERAN EMPLOYED IN A PART-TIME POSITION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOUSAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD. § 3. Paragraphs 1, 2 and 4 of subdivision (g-1) of section 1511 of the tax law, paragraph 1 and subparagraph (B) of paragraph 2 as amended by section 3 of part II of chapter 59 of the laws of 2021, paragraph 2 as amended by section 3 of part Q of chapter 59 of the laws of 2018, subparagraph (A) of paragraph 2 as amended by chapter 490 of the laws of 2019 and paragraph 4 as added by section 5 of part AA of chapter 59 of the laws of 2013, are amended to read as follows: (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-three] TWENTY-SIX, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than [one year and for not less than thirty-five hours each week] TWELVE CONTINUOUS AND UNINTERRUPTED MONTHS (HEREINAFTER REFERRED TO AS THE TWELVE-MONTH PERI- OD) IN A FULL-TIME OR PART-TIME POSITION, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qual- ified veteran completes [one year] THE TWELVE-MONTH PERIOD of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article. (2) Qualified veteran. A qualified veteran is an individual: (A) who served on active duty in the United States army, navy, air force, SPACE FORCE, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia, OR WHO SERVED IN THE ACTIVE UNIFORMED SERVICES OF THE UNITED STATES AS A MEMBER OF THE COMMISSIONED CORPS OF THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION OR THE COMMISSIONED CORPS OF THE UNITED STATES PUBLIC HEALTH SERVICE; who (i) was released from active duty by general or honorable discharge [after September eleventh, two thousand one], or (ii) has a qualifying condition, as A. 9009--B 25 defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thousand one], or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a discharge other than bad conduct or dishonorable from such service [after September eleventh, two thou- sand one]; (B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand [twenty-two] TWENTY-FIVE; and (C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer. (4) Amount of credit. The amount of the credit shall be [ten] FIFTEEN percent of the total amount of wages paid to the qualified veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employ- ment. Provided, however, that, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be [fifteen] TWENTY percent of the total amount of wages paid to the quali- fied veteran during the veteran's first [full year] TWELVE-MONTH PERIOD of employment. The credit allowed pursuant to this subdivision shall not exceed in any taxable year, [five] FIFTEEN thousand dollars for any qualified veteran [and fifteen] EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD, TWENTY thousand dollars for any qualified veteran who is a disabled veteran EMPLOYED IN A FULL-TIME POSITION FOR ONE THOUSAND EIGHT HUNDRED TWENTY OR MORE HOURS IN ONE TWELVE-MONTH PERIOD, SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED VETERAN EMPLOYED IN A PART-TIME POSI- TION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOU- SAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD, AND TEN THOUSAND DOLLARS FOR ANY QUALIFIED VETERAN WHO IS A DISABLED VETERAN EMPLOYED IN A PART-TIME POSITION FOR AT LEAST ONE THOUSAND FORTY HOURS BUT NOT MORE THAN ONE THOUSAND EIGHT HUNDRED NINETEEN HOURS IN ONE TWELVE-MONTH PERIOD. § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART I Section 1. The tax law is amended by adding a new section 47 to read as follows: § 47. GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. (A) (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT MEETS THE ELIGIBILITY REQUIREMENTS OF SUBDI- VISION (B) OF THIS SECTION AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER MAY BE ELIGIBLE TO CLAIM A GRADE NO. 6 HEAT- ING OIL CONVERSION TAX CREDIT IN THE TAXABLE YEAR THE CONVERSION IS COMPLETE. THE CREDIT SHALL BE EQUAL TO FIFTY PERCENT OF THE CONVERSION COSTS FOR ALL OF THE TAXPAYER'S BUILDINGS LOCATED IN A MUNICIPALITY PAID BY SUCH TAXPAYER ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO AND BEFORE JULY FIRST, TWO THOUSAND TWENTY-THREE. THE CREDIT CANNOT EXCEED FIVE HUNDRED THOUSAND DOLLARS PER MUNICIPALITY. (2) A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABILITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER S CORPORATION SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, A. 9009--B 26 LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION THAT MEETS THE ELIGIBILITY CRITERIA DESCRIBED IN SUBDIVISION (B) OF THIS SECTION TO CLAIM A GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. IN NO EVENT MAY THE TOTAL AMOUNT OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION EXCEED FIVE HUNDRED THOU- SAND DOLLARS FOR ALL BUILDINGS LOCATED IN A MUNICIPALITY. (3) NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER THAT IS INCLUDED AS PART OF THE CALCULATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT ALLOWED UNDER THIS CHAPTER. (B) ELIGIBILITY CRITERIA. (1) TO BE ELIGIBLE TO CLAIM A GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT, A BUSINESS ENTITY MUST: (I) INCUR EXPENSES FOR THE CONVERSION FROM GRADE NO. 6 HEATING OIL FUEL, AS DESCRIBED AS "CONVERSION COSTS" IN PARAGRAPH (1) OF SUBDIVISION (C) OF THIS SECTION, TO BIODIESEL HEATING OIL OR A GEOTHERMAL SYSTEM AT ANY BUILDING LOCATED IN NEW YORK STATE OUTSIDE THE CITY OF NEW YORK; (II) SUBMIT AN APPLICATION TO AND OBTAIN APPROVAL OF SUCH APPLICATION BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY DESCRIB- ING THE CONVERSION AND APPROVED COSTS TO COMPLETE SUCH CONVERSION; (III) NOT BE PRINCIPALLY ENGAGED IN THE GENERATION OR DISTRIBUTION OF ELECTRICITY, POWER OR ENERGY; (IV) BE IN COMPLIANCE WITH ALL ENVIRONMENTAL CONSERVATION LAWS AND REGULATIONS; AND (V) NOT OWE PAST DUE STATE TAXES UNLESS THE BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLYING WITH AN APPROVED BINDING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY. (C) DEFINITIONS. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (1) CONVERSION COSTS MEANS THE EQUIPMENT AND LABOR COSTS ASSOCIATED WITH THE DESIGN, INSTALLATION AND USE OF SPACE HEATING AND OTHER ENERGY CONVERSION SYSTEMS THAT ARE DESIGNED TO OR ACCOMMODATE THE USE OF BIOD- IESEL FUEL OR A GEOTHERMAL SYSTEM AND, AT THE OPTION OF THE TAXPAYER, THE COSTS OF COMPLETING AN ASHRAE LEVEL 2 ENERGY AUDIT INCLUDING ASSESS- MENT OF ELECTRIFICATION OPTIONS. (2) BIODIESEL MEANS A MINIMUM BLEND OF EIGHTY-FIVE (85) PERCENT BIOD- IESEL, DEFINED AS FUEL MANUFACTURED FROM VEGETABLE OILS, ANIMAL FATS, OR OTHER AGRICULTURAL OR OTHER PRODUCTS OR BY-PRODUCTS, WITH PETRODIESEL FUEL COMMONLY USED FOR HEATING SYSTEMS. (3) GEOTHERMAL MEANS A SYSTEM THAT USES THE GROUND OR GROUND WATER AS A THERMAL ENERGY SOURCE/SINK TO HEAT OR COOL A BUILDING OR PROVIDE HOT WATER WITHIN THE BUILDING. (4) MUNICIPALITY, FOR PURPOSES OF THIS SECTION, MEANS A CITY OR TOWN. (D) THE COMMISSIONER, IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, WILL DEVELOP AN APPLICATION PROCESS TO CERTIFY THE EXPENSES NECESSARY FOR THE CONVERSION AND A TAXPAYER WILL NOT BE ELIGIBLE TO CLAIM THE CREDIT UNLESS IT HAS COMPLETED THAT APPLI- CATION PROCESS AND THE APPLICATION HAS BEEN APPROVED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY. (E) INFORMATION SHARING. THE DEPARTMENT, THE DEPARTMENT OF ENVIRON- MENTAL CONSERVATION AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP- MENT AUTHORITY SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION REGARDING THE INFORMATION CONTAINED ON THE CREDIT APPLICA- TION FOR CLAIMING THE GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT AND SUCH INFORMATION EXCHANGED BETWEEN THE DEPARTMENT, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFORMATION LAW. A. 9009--B 27 (F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58; (2) ARTICLE 22: SECTION 606, SUBSECTION (NNN). § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 58 to read as follows: 58. GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED- IT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXA- BLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON. § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlix) to read as follows: (XLIX) GRADE NO. 6 HEATING OIL AMOUNT OF CREDIT UNDER SUBDIVISION CONVERSION TAX CREDIT UNDER FIFTY-EIGHT OF SECTION TWO HUNDRED SUBSECTION (NNN) TEN-B § 4. Section 606 of the tax law is amended by adding a new subsection (nnn) to read as follows: (NNN) GRADE NO. 6 HEATING OIL CONVERSION TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. § 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART J Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 2 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty] TWENTY-SEVEN million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. A. 9009--B 28 § 2. Subdivision 4 of section 22 of the public housing law, as amended by section 3 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty-eight] FORTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 3. Subdivision 4 of section 22 of the public housing law, as amended by section 4 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [thirty-six] FIFTY-SEVEN million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 4. Subdivision 4 of section 22 of the public housing law, as amended by section 5 of part GG of chapter 59 of the laws of 2021, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [forty-four] SEVENTY-TWO million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 5. This act shall take effect immediately; provided, however, section one of this act shall take effect April 1, 2022; section two of this act shall take effect April 1, 2023; section three of this act shall take effect April 1, 2024; and section four of this act shall take effect April 1, 2025. PART K Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax law, as amended by section 1 of part R of chapter 59 of the laws of 2019, is amended to read as follows: (a) General. A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state purchased before January first, two thousand [twenty-three] TWENTY-SIX. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as amended by section 2 of part R of chapter 59 of the laws of 2019, is amended to read as follows: (1) A taxpayer shall be allowed a credit against the tax imposed by this article. Such credit, to be computed as hereinafter provided, shall A. 9009--B 29 be allowed for bioheating fuel, used for space heating or hot water production for residential purposes within this state and purchased on or after July first, two thousand six and before July first, two thou- sand seven and on or after January first, two thousand eight and before January first, two thousand [twenty-three] TWENTY-SIX. Such credit shall be $0.01 per percent of biodiesel per gallon of bioheating fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. Provided, however, that on or after January first, two thousand seventeen, this credit shall not apply to bioheating fuel that is less than six percent biodiesel per gallon of bioheating fuel. § 3. This act shall take effect immediately. PART L Section 1. Section 5 of chapter 604 of the laws of 2011 amending the tax law relating to the credit for companies who provide transportation to people with disabilities, as amended by section 1 of part K of chap- ter 60 of the laws of 2016, is amended to read as follows: § 5. This act shall take effect immediately and shall remain in effect until December 31, 2016 when upon such date it shall be deemed repealed; provided that this act shall be deemed to have been in full force and effect on December 31, 2010; provided further that this act shall apply to all tax years commencing on or after January 1, 2011; and provided further that sections one and two of this act shall remain in effect until December 31, [2022] 2028 when upon such date such sections shall be deemed repealed. § 2. Paragraph (c) of subdivision 38 of section 210-B of the tax law, as amended by section 2 of part K of chapter 60 of the laws of 2016, is amended to read as follows: (c) Application of credit. In no event shall the credit allowed under this subdivision for any taxable year reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years. The tax credit allowed pursuant to this subdivision shall not apply to taxa- ble years beginning on or after January first, two thousand [twenty- three] TWENTY-NINE. § 3. This act shall take effect immediately. PART M Section 1. Paragraph 4 of subdivision (a) of section 24 of the tax law, as added by section 5 of part Q of chapter 57 of the laws of 2010, is amended to read as follows: (4) (I) Notwithstanding the foregoing provisions of this subdivision, a qualified film production company or qualified independent film production company, that has applied for credit under the provisions of this section, agrees as a condition for the granting of the credit: [(i)] (A) to include in each qualified film distributed by DVD, or other media for the secondary market, a New York promotional video approved by the governor's office of motion picture and television development or to include in the end credits of each qualified film "Filmed With the A. 9009--B 30 Support of the New York State Governor's Office of Motion Picture and Television Development" and a logo provided by the governor's office of motion picture and television development, and [(ii)] (B) to certify that it will purchase taxable tangible property and services, defined as qualified production costs pursuant to paragraph one of subdivision (b) of this section, only from companies registered to collect and remit state and local sales and use taxes pursuant to articles twenty-eight and twenty-nine of this chapter. (II) ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, A QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF THIS SECTION SHALL, AS A CONDITION FOR THE GRANTING OF THE CREDIT, FILE A DIVERSITY PLAN WITH THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT OUTLINING SPECIFIC GOALS FOR HIRING A DIVERSE WORKFORCE. THE COMMISSION- ER OF ECONOMIC DEVELOPMENT SHALL PROMULGATE REGULATIONS IMPLEMENTING THE REQUIREMENTS OF THIS PARAGRAPH, WHICH, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS, TO ENSURE COMPLIANCE WITH THE PROVISIONS OF THIS PARAGRAPH. THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT SHALL REVIEW EACH SUBMITTED PLAN AS TO WHETHER IT MEETS THE REQUIREMENTS ESTABLISHED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AND SHALL VERIFY THAT THE APPLICANT HAS MET OR MADE GOOD-FAITH EFFORTS IN ACHIEVING THESE GOALS. THE DIVERSITY PLAN ALSO SHALL INDICATE WHETHER THE QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF THIS SECTION INTENDS TO PARTICIPATE IN TRAINING, EDUCATION, AND RECRUIT- MENT PROGRAMS THAT ARE DESIGNED TO PROMOTE AND ENCOURAGE THE TRAINING AND HIRING IN THE FILM AND TELEVISION INDUSTRY OF NEW YORK RESIDENTS WHO REPRESENT THE DIVERSITY OF THE STATE'S POPULATION. § 2. Paragraph 5 of subdivision (a) of section 24 of the tax law, as amended by section 1 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (5) For the period two thousand fifteen through two thousand [twenty- six] TWENTY-NINE, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-six] TWENTY-NINE of the annual allocation made available to the program A. 9009--B 31 pursuant to paragraph four of subdivision (e) of this section. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and television development among taxpayers in order of priority based upon the date of filing an application for allocation of film production credit with such office. If the total amount of allo- cated credits applied for under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this para- graph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this paragraph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdivision (a) of section thirty-one of this article exceed five million dollars in any year during the peri- od two thousand fifteen through two thousand [twenty-six] TWENTY-NINE. § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 2 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (4) Additional pool 2 - The aggregate amount of tax credits allowed in subdivision (a) of this section shall be increased by an additional four hundred twenty million dollars in each year starting in two thousand ten through two thousand [twenty-six] TWENTY-NINE provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen, twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-six] TWENTY-NINE and five million dollars of the annual allocation shall be made available for the television writers' and directors' fees and salaries credit pursuant to section twenty-four-b of this article in each year starting in two thousand twenty through two thousand [twenty-six] TWENTY-NINE. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be A. 9009--B 32 made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this chapter. The governor's office for motion picture and television devel- opment must notify taxpayers of their allocation year and include the allocation year on the certificate of tax credit. Taxpayers eligible to claim a credit must report the allocation year directly on their empire state film production credit tax form for each year a credit is claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 4. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 3 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (4) Additional pool 2 - The aggregate amount of tax credits allowed in subdivision (a) of this section shall be increased by an additional four hundred twenty million dollars in each year starting in two thousand ten through two thousand [twenty-six] TWENTY-NINE provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen and twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-six] TWENTY-NINE. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this chapter. The governor's office for motion picture and television devel- opment must notify taxpayers of their allocation year and include the allocation year on the certificate of tax credit. Taxpayers eligible to A. 9009--B 33 claim a credit must report the allocation year directly on their empire state film production credit tax form for each year a credit is claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 5. Paragraph 1 of subdivision (f) of section 24 of the tax law, as added by section 2 of subpart A of part H of chapter 39 of the laws of 2019, is amended to read as follows: (1) With regard to certificates of tax credit issued on or after Janu- ary first, two thousand twenty, the commissioner of economic development shall reduce by one-quarter of one percent the amount of credit allowed to a taxpayer and this reduced amount shall be reported on a certificate of tax credit issued pursuant to this section and the regulations promulgated by the commissioner of economic development to implement this credit program. PROVIDED, HOWEVER, FOR CERTIFICATES OF TAX CREDIT ISSUED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, THE AMOUNT OF CREDIT SHALL BE REDUCED BY ONE-HALF OF ONE PERCENT ALLOWED TO THE TAXPAYER. § 6. Paragraph 6 of subdivision (a) of section 31 of the tax law, as amended by section 4 of part F of chapter 59 of the laws of 2021, is amended to read as follows: (6) For the period two thousand fifteen through two thousand [twenty- six] TWENTY-NINE, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) for services performed by those individuals in one of the counties specified in this paragraph in connection with the post production work on a qualified film with a minimum budget of five hundred thousand dollars at a qualified post production facility in one of the counties listed in this paragraph. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Catta- raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cort- land, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this para- graph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-six] TWENTY-NINE of the annual allocation made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and tele- vision development among taxpayers in order of priority based upon the date of filing an application for allocation of post production credit with such office. If the total amount of allocated credits applied for A. 9009--B 34 under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this paragraph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this para- graph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation for two thousand seventeen made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdivision (a) of section twenty-four of this article exceed five million dollars in any year during the period two thousand fifteen through two thousand [twenty-six] TWENTY-NINE. § 7. This act shall take effect immediately; provided, however that the amendments to paragraph 4 of subdivision (e) of section 24 of the tax law made by section three of this act shall take effect on the same date and in the same manner as section 5 of chapter 683 of the laws of 2019, as amended, takes effect. PART N Section 1. Subdivision (a) of section 25-a of the labor law, as amended by section 1 of subpart A of part N of chapter 59 of the laws of 2017, is amended to read as follows: (a) The commissioner is authorized to establish and administer the program established under this section to provide tax incentives to employers for employing at risk youth in part-time and full-time posi- tions. There will be ten distinct pools of tax incentives. Program one will cover tax incentives allocated for two thousand twelve and two thousand thirteen. Program two will cover tax incentives allocated in two thousand fourteen. Program three will cover tax incentives allocated in two thousand fifteen. Program four will cover tax incentives allo- cated in two thousand sixteen. Program five will cover tax incentives allocated in two thousand seventeen. Program six will cover tax incen- tives allocated in two thousand eighteen. Program seven will cover tax incentives allocated in two thousand nineteen. Program eight will cover tax incentives allocated in two thousand twenty. Program nine will cover tax incentives allocated in two thousand twenty-one. Program ten will cover tax incentives allocated in two thousand twenty-two. PROGRAM ELEV- EN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-THREE. PROGRAM TWELVE WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWEN- TY-FOUR. PROGRAM THIRTEEN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-FIVE. PROGRAM FOURTEEN WILL COVER TAX INCENTIVES ALLO- CATED IN TWO THOUSAND TWENTY-SIX. PROGRAM FIFTEEN WILL COVER TAX INCEN- TIVES ALLOCATED IN TWO THOUSAND TWENTY-SEVEN. The commissioner is authorized to allocate up to twenty-five million dollars of tax credits under program one, ten million dollars of tax credits under program two, twenty million dollars of tax credits under program three, fifty million dollars of tax credits under each of programs four and five, and forty million dollars of tax credits under programs six, seven, eight, nine [and], ten, ELEVEN, TWELVE, THIRTEEN, FOURTEEN AND FIFTEEN. § 2. Paragraph 4 of subdivision (b) of section 25-a of the labor law, as added by section 1-a of subpart A of part N of chapter 59 of the laws of 2017, is amended to read as follows: (4) For programs six, seven, eight, nine [and], ten, ELEVEN, TWELVE, THIRTEEN, FOURTEEN, AND FIFTEEN the tax credit under each program shall A. 9009--B 35 be allocated as follows: (i) twenty million dollars of tax credit for qualified employees; and (ii) twenty million dollars of tax credit for individuals who meet all of the requirements for a qualified employee except for the residency requirement of subparagraph (ii) of paragraph two of this subdivision, which individuals shall be deemed to meet the residency requirements of subparagraph (ii) of paragraph two of this subdivision if they reside in New York state. § 3. The opening paragraph of subdivision (d) of section 25-a of the labor law, as amended by section 2 of part R of chapter 59 of the laws of 2018, is amended to read as follows: To participate in the program established under this section, an employer must submit an application (in a form prescribed by the commis- sioner) to the commissioner after January first, two thousand twelve but no later than November thirtieth, two thousand twelve for program one, after January first, two thousand fourteen but no later than November thirtieth, two thousand fourteen for program two, after January first, two thousand fifteen but no later than November thirtieth, two thousand fifteen for program three, after January first, two thousand sixteen but no later than November thirtieth, two thousand sixteen for program four, after January first, two thousand seventeen but no later than November thirtieth, two thousand seventeen for program five, after January first, two thousand eighteen but no later than November thirtieth, two thousand eighteen for program six, after January first, two thousand nineteen but no later than November thirtieth, two thousand nineteen for program seven, after January first, two thousand twenty but no later than Novem- ber thirtieth, two thousand twenty for program eight, after January first, two thousand twenty-one but no later than November thirtieth, two thousand twenty-one for program nine, [and] after January first, two thousand twenty-two but no later than November thirtieth, two thousand twenty-two for program ten, AFTER JANUARY FIRST, TWO THOUSAND TWENTY- THREE BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-THREE FOR PROGRAM ELEVEN, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-FOUR FOR PROGRAM TWELVE, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-FIVE FOR PROGRAM THIRTEEN, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX BUT NO LATER THAN NOVEMBER THIR- TIETH, TWO THOUSAND TWENTY-SIX FOR PROGRAM FOURTEEN, AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-SEVEN FOR PROGRAM FIFTEEN. The qualified employees must start their employment on or after January first, two thousand twelve but no later than December thirty-first, two thousand twelve for program one, on or after January first, two thousand fourteen but no later than December thirty-first, two thousand fourteen for program two, on or after January first, two thousand fifteen but no later than Decem- ber thirty-first, two thousand fifteen for program three, on or after January first, two thousand sixteen but no later than December thirty- first, two thousand sixteen for program four, on or after January first, two thousand seventeen but no later than December thirty-first, two thousand seventeen for program five, on or after January first, two thousand eighteen but no later than December thirty-first, two thousand eighteen for program six, on or after January first, two thousand nine- teen but no later than December thirty-first, two thousand nineteen for program seven, on or after January first, two thousand twenty but no later than December thirty-first, two thousand twenty for program eight, on or after January first, two thousand twenty-one but no later than December thirty-first, two thousand twenty-one for program nine, [and] A. 9009--B 36 on or after January first, two thousand twenty-two but no later than December thirty-first, two thousand twenty-two for program ten, ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE BUT NO LATER THAN DECEM- BER THIRTY-FIRST, TWO THOUSAND THREE FOR PROGRAM ELEVEN, ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR BUT NO LATER THAN DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-FOUR FOR PROGRAM TWELVE, ON OR AFTER JANU- ARY FIRST, TWO THOUSAND TWENTY-FIVE BUT NO LATER THAN DECEMBER THIRTY- FIRST, TWO THOUSAND TWENTY-FIVE FOR PROGRAM THIRTEEN, ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX BUT NO LATER THAN DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-SIX FOR PROGRAM FOURTEEN, AND ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-SEVEN FOR PROGRAM FIFTEEN. As part of such application, an employer must: § 4. This act shall take effect immediately. PART O Section 1. Subdivision (a) of section 25-c of the labor law, as added by section 1 of subpart B of part N of chapter 59 of the laws of 2017, is amended to read as follows: (a) The commissioner is authorized to establish and administer the empire state apprenticeship tax credit program to provide tax incentives to certified employers for employing qualified apprentices pursuant to an apprenticeship agreement registered with the department pursuant to paragraph (d) of subdivision one of section eight hundred eleven of this chapter. The commissioner is authorized to allocate up to ten million dollars of tax credits annually, beginning in two thousand eighteen and ending before two thousand [twenty-three] TWENTY-EIGHT. Any unused annu- al allocation of the credit shall be made available in each of the subsequent years before two thousand [twenty-three] TWENTY-EIGHT. § 2. This act shall take effect immediately. PART P Section 1. Subdivision 6 of section 187-b of the tax law, as amended by section 1 of part O of chapter 59 of the laws of 2017, is amended to read as follows: 6. Termination. The credit allowed by subdivision two of this section shall not apply in taxable years beginning after December thirty-first, two thousand [twenty-two] TWENTY-SEVEN. § 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law, as amended by section 2 of part O of chapter 59 of the laws of 2017, is amended to read as follows: (f) Termination. The credit allowed by paragraph (b) of this subdivi- sion shall not apply in taxable years beginning after December thirty- first, two thousand [twenty-two] TWENTY-SEVEN. § 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as amended by section 3 of part O of chapter 59 of the laws of 2017, is amended to read as follows: (6) Termination. The credit allowed by this subsection shall not apply in taxable years beginning after December thirty-first, two thousand [twenty-two] TWENTY-SEVEN. § 4. This act shall take effect immediately. PART Q A. 9009--B 37 Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, as amended by section 1 of part E of chapter 59 of the laws of 2019, is amended to read as follows: § 5. This act shall take effect January 1, 2015, and shall apply to taxable years beginning on and after that date[; provided, however, that this act shall expire and be deemed repealed January 1, 2023]. § 2. Section 25-b of the labor law is amended by adding a new subdivi- sion (f) to read as follows: (F) THE TAX CREDITS PROVIDED UNDER THIS PROGRAM SHALL BE APPLICABLE TO TAXABLE PERIODS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY- NINE. § 3. This act shall take effect immediately. PART R Intentionally Omitted PART S Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of section 210-B of the tax law, as amended by section 2 of part P of chap- ter 59 of the laws of 2017, is amended to read as follows: (i) A credit shall be allowed under this subdivision with respect to tangible personal property and other tangible property, including build- ings and structural components of buildings, which are: depreciable pursuant to section one hundred sixty-seven of the internal revenue code, have a useful life of four years or more, are acquired by purchase as defined in section one hundred seventy-nine (d) of the internal revenue code, have a situs in this state and are (A) principally used by the taxpayer in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horti- culture, floriculture, viticulture or commercial fishing, (B) industrial waste treatment facilities or air pollution control facilities, used in the taxpayer's trade or business, (C) research and development property, or (D) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section four hundred seventy-five (e) of the Internal Revenue Code, (E) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regu- lated investment company as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan orig- ination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, (F) principally used in the ordinary course of the taxpay- er's business as an exchange registered as a national securities exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi- ties Exchange Act of 1934 or a board of trade as defined in subparagraph one of paragraph (a) of section fourteen hundred ten of the not-for-pro- A. 9009--B 38 fit corporation law or as an entity that is wholly owned by one or more such national securities exchanges or boards of trade and that provides automation or technical services thereto, or (G) principally used as a qualified film production facility including qualified film production facilities having a situs in an empire zone designated as such pursuant to article eighteen-B of the general municipal law, where the taxpayer is providing three or more services to any qualified film production company using the facility, including such services as a studio lighting grid, lighting and grip equipment, multi-line phone service, broadband information technology access, industrial scale electrical capacity, food services, security services, and heating, ventilation and air conditioning. For purposes of clauses (D), (E) and (F) of this subpara- graph, property purchased by a taxpayer affiliated with a regulated broker, dealer, registered investment advisor, national securities exchange or board of trade, is allowed a credit under this subdivision if the property is used by its affiliated regulated broker, dealer, registered investment advisor, national securities exchange or board of trade in accordance with this subdivision. For purposes of determining if the property is principally used in qualifying uses, the uses by the taxpayer described in clauses (D) and (E) of this subparagraph may be aggregated. In addition, the uses by the taxpayer, its affiliated regu- lated broker, dealer and registered investment advisor under either or both of those clauses may be aggregated. Provided, however, a taxpayer shall not be allowed the credit provided by clauses (D), (E) and (F) of this subparagraph unless the property is first placed in service before October first, two thousand fifteen and (i) eighty percent or more of the employees performing the administrative and support functions resulting from or related to the qualifying uses of such equipment are located in this state or (ii) the average number of employees that perform the administrative and support functions resulting from or related to the qualifying uses of such equipment and are located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety-five percent of the average number of employ- ees that perform these functions and are located in this state during the thirty-six months immediately preceding the year for which the cred- it is claimed, or (iii) the number of employees located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety percent of the number of employees located in this state on December thirty-first, nineteen hundred ninety-eight or, if the taxpayer was not a calendar year taxpayer in nineteen hundred ninety- eight, the last day of its first taxable year ending after December thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in this state after the taxable year beginning in nine- teen hundred ninety-eight, then the taxpayer is not required to satisfy the employment test provided in the preceding sentence of this subpara- graph for its first taxable year. For purposes of clause (iii) of this subparagraph the employment test will be based on the number of employ- ees located in this state on the last day of the first taxable year the taxpayer is subject to tax in this state. If the uses of the property must be aggregated to determine whether the property is principally used in qualifying uses, then either each affiliate using the property must satisfy this employment test or this employment test must be satisfied through the aggregation of the employees of the taxpayer, its affiliated regulated broker, dealer, and registered investment adviser using the property. For purposes of clause (A) of this subparagraph, tangible personal property and other tangible property shall not include property A. 9009--B 39 principally used by the taxpayer (I) in the production or distribution of electricity, natural gas after extraction from wells, steam, or water delivered through pipes and mains, OR (II) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDIUM, OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELEVISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS, OR IN THE DUPLICATION, FOR PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELEVISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS. § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 of the tax law, as amended by section 3 of part P of chapter 59 of the laws of 2017, is amended to read as follows: (A) A credit shall be allowed under this subsection with respect to tangible personal property and other tangible property, including build- ings and structural components of buildings, which are: depreciable pursuant to section one hundred sixty-seven of the internal revenue code, have a useful life of four years or more, are acquired by purchase as defined in section one hundred seventy-nine (d) of the internal revenue code, have a situs in this state and are (i) principally used by the taxpayer in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horti- culture, floriculture, viticulture or commercial fishing, (ii) indus- trial waste treatment facilities or air pollution control facilities, used in the taxpayer's trade or business, (iii) research and development property, (iv) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, enter- ing into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section 475(e) of the Internal Revenue Code, (v) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regulated investment compa- ny as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan origination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or (vi) principally used as a qualified film production facility includ- ing qualified film production facilities having a situs in an empire zone designated as such pursuant to article eighteen-B of the general municipal law, where the taxpayer is providing three or more services to any qualified film production company using the facility, including such services as a studio lighting grid, lighting and grip equipment, multi- line phone service, broadband information technology access, industrial scale electrical capacity, food services, security services, and heat- ing, ventilation and air conditioning. For purposes of clauses (iv) and (v) of this subparagraph, property purchased by a taxpayer affiliated with a regulated broker, dealer, or registered investment adviser is allowed a credit under this subsection if the property is used by its affiliated regulated broker, dealer or registered investment adviser in accordance with this subsection. For purposes of determining if the property is principally used in qualifying uses, the uses by the taxpay- er described in clauses (iv) and (v) of this subparagraph may be aggre- gated. In addition, the uses by the taxpayer, its affiliated regulated A. 9009--B 40 broker, dealer and registered investment adviser under either or both of those clauses may be aggregated. Provided, however, a taxpayer shall not be allowed the credit provided by clauses (iv) and (v) of this subpara- graph unless (I) eighty percent or more of the employees performing the administrative and support functions resulting from or related to the qualifying uses of such equipment are located in this state, or (II) the average number of employees that perform the administrative and support functions resulting from or related to the qualifying uses of such equipment and are located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety-five percent of the average number of employees that perform these functions and are located in this state during the thirty-six months immediately preceding the year for which the credit is claimed, or (III) the number of employees located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety percent of the number of employees located in this state on December thirty-first, nineteen hundred ninety-eight or, if the taxpayer was not a calendar year taxpayer in nineteen hundred ninety-eight, the last day of its first taxable year ending after December thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in this state after the taxable year beginning in nineteen hundred ninety-eight, then the taxpayer is not required to satisfy the employment test provided in the preceding sentence of this subparagraph for its first taxable year. For the purposes of clause (III) of this subparagraph the employment test will be based on the number of employees located in this state on the last day of the first taxable year the taxpayer is subject to tax in this state. If the uses of the property must be aggregated to determine whether the property is principally used in qualifying uses, then either each affiliate using the property must satisfy this employment test or this employment test must be satisfied through the aggregation of the employees of the taxpayer, its affiliated regulated broker, dealer, and registered investment adviser using the property. For purposes of clause (i) of this subparagraph, tangible personal property and other tangible property shall not include property principally used by the taxpayer (A) in the production or distribution of electricity, natural gas after extraction from wells, steam, or water delivered through pipes and mains, OR (B) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDI- UM, OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELEVISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS, OR IN THE DUPLICATION, FOR PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF ANY AUDIO OR VISUAL RECORDING, INCLUDING BUT NOT LIMITED TO FILMS, TELE- VISION SHOWS, COMMERCIALS, AND MUSICAL RECORDINGS. § 3. This act shall take effect immediately, and shall apply to prop- erty placed in service on or after January 1, 2023. PART T Intentionally Omitted PART U Intentionally Omitted PART V A. 9009--B 41 Intentionally Omitted PART W Section 1. Paragraph 1 of subsection (a) of section 671 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (1) Every employer maintaining an office or transacting business with- in this state and making payment of any wages taxable under this article shall deduct and withhold from such wages for each payroll period a tax computed in such manner as to result, so far as practicable, in with- holding from the employee's wages during each calendar year an amount substantially equivalent to the tax reasonably estimated to be due under this article resulting from the inclusion in the employee's New York adjusted gross income or New York source income of [his] THE EMPLOYEE'S wages received during such calendar year. The method of determining the amount to be withheld shall be prescribed by [regulations of] the commissioner, with due regard to the New York withholding exemptions of the employee and the sum of any credits allowable against [his] THE EMPLOYEE'S tax. THE COMMISSIONER SHALL PUBLISH ANY CHANGES TO SUCH METH- OD OF DETERMINING THE AMOUNT OF TAX TO BE WITHHELD ON THE WEBSITE OF THE DEPARTMENT OF TAXATION AND FINANCE. THE COMMISSIONER SHALL ALSO CAUSE NOTICE OF SUCH CHANGES TO BE PUBLISHED IN THE SECTION FOR MISCELLANEOUS NOTICES IN THE STATE REGISTER AND SHALL GIVE OTHER APPROPRIATE GENERAL NOTICE OF SUCH CHANGES. § 2. Paragraph 6 of subsection (j) of section 697 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (6) Publication of interest rates. The commissioner of taxation and finance SHALL PUBLISH THE INTEREST RATES SET UNDER THIS SUBSECTION ON THE WEBSITE OF THE DEPARTMENT OF TAXATION AND FINANCE. IMMEDIATELY FOLLOWING SUCH PUBLICATION, THE COMMISSIONER shall cause SUCH INTEREST RATES to be published in the section for miscellaneous notices in the state register[,] and give other appropriate general notice of[, the] SUCH interest rates [to be set under this subsection no later than twen- ty days preceding the first day of the calendar quarter during which such interest rates apply]. The setting and publication of such interest rates shall not be included within paragraph (a) of subdivision two of section one hundred two of the state administrative procedure act relat- ing to the definition of a rule. § 3. Paragraph 5 of subsection (e) of section 1096 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (5) Publication of interest rates. The commissioner of taxation and finance shall PUBLISH THE INTEREST RATES SET UNDER THIS SUBSECTION ON THE WEBSITE OF THE DEPARTMENT OF TAXATION AND FINANCE. IMMEDIATELY FOLLOWING SUCH PUBLICATION, THE COMMISSIONER SHALL cause SUCH INTEREST RATES to be published in the section for miscellaneous notices in the state register[,] and give other appropriate general notice of[, the] SUCH interest rates [to be set under this subsection no later than twen- ty days preceding the first day of the calendar quarter during which such interest rates apply]. The setting and publication of such interest rates shall not be included within paragraph (a) of subdivision two of section one hundred two of the state administrative procedure act relat- ing to the definition of a rule. A. 9009--B 42 § 4. This act shall take effect immediately. PART X Section 1. Paragraph (c) of subdivision 1 of section 1701 of the tax law, as added by section 1 of part CC-1 of chapter 57 of the laws of 2008, is amended to read as follows: (c) "Financial institution" means (I) any financial institution authorized or required to participate in a financial institution data match system or program for child support enforcement purposes under federal or state law, AND (II) ANY VIRTUAL CURRENCY BUSINESS LICENSED BY THE SUPERINTENDENT OF FINANCIAL SERVICES. § 2. This act shall take effect immediately. PART Y Section 1. Section 4 of chapter 475 of the laws of 2013, relating to assessment ceilings for local public utility mass real property, as amended by section 1 of part G of chapter 59 of the laws of 2018, is amended to read as follows: § 4. This act shall take effect on the first of January of the second calendar year commencing after this act shall have become a law and shall apply to assessment rolls with taxable status dates on or after such date; provided, however, that this act shall expire and be deemed repealed [eight] TWELVE years after such effective date; and provided, further, that no assessment of local public utility mass real property appearing on the municipal assessment roll with a taxable status date occurring in the first calendar year after this act shall have become a law shall be less than ninety percent or more than one hundred ten percent of the assessment of the same property on the date this act shall have become a law. § 2. Subdivision 4 of section 499-pppp of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 4. Any final determination of an assessment ceiling by the commission- er pursuant to subdivision one of this section shall be subject to judi- cial challenge by an owner of local public utility mass real property or a local assessing jurisdiction in a proceeding under article seven of this chapter; provided however, the time to commence such proceeding shall be within sixty days of the issuance of the final assessment ceil- ing certificate and all questions of fact and law shall be determined de novo. Any judicial proceeding shall be commenced in the supreme court in the county of Albany or the county agreed upon by the parties in which the local public utility mass real property is located. Nothing in this section shall preclude a challenge of the assessed value established by a local assessing jurisdiction with respect to local public utility mass real property as otherwise provided in article seven of this chapter, PROVIDED HOWEVER THAT UPON MOTION OF THE LOCAL ASSESSING JURISDICTION, SUCH CHALLENGE SHALL BE CONSOLIDATED WITH THE CHALLENGE TO THE FINAL ASSESSMENT CEILING COMMENCED PURSUANT TO THIS SUBDIVISION AND LITIGATED IN THE VENUE SPECIFIED BY THIS SUBDIVISION. In any proceeding challeng- ing an assessed value established by a local assessing jurisdiction for local public utility mass real property, the final certified assessment ceiling established pursuant to subdivision one of this section [shall not], AND THE EVIDENCE SUBMITTED IN CONNECTION THEREWITH, MAY be consid- ered by the court WHEN DETERMINING THE MERITS OF THE CHALLENGE TO THE A. 9009--B 43 ASSESSED VALUE ESTABLISHED BY THE ASSESSING UNIT. IN SUCH A PROCEEDING, THE LOCAL ASSESSING JURISDICTION, UPON REQUEST TO THE LOCAL PUBLIC UTIL- ITY MASS REAL PROPERTY OWNER, SHALL BE PROVIDED WITH A COPY OF THE ANNU- AL REPORT PROVIDED TO THE COMMISSIONER UNDER SECTION FOUR HUNDRED NINE- TY-NINE-RRRR OF THIS TITLE. SUCH ANNUAL REPORT SHALL ONLY BE USED FOR ACTUAL AND NECESSARY ACTIVITIES RELATED TO SUCH PROCEEDING AND SHALL OTHERWISE BE CONSIDERED CONFIDENTIAL AND SHALL NOT BE SUBJECT TO FURTHER DISCLOSURE PURSUANT TO THE FREEDOM OF INFORMATION LAW OR OTHERWISE. IF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY OWNER FAILS TO PROVIDE THE REPORT WITHIN THIRTY DAYS OF SUCH A REQUEST, THE PROCEEDING SHALL BE DISMISSED. § 3. This act shall take effect immediately, provided, however, that the amendments to subdivision 4 of section 499-pppp of the real property tax law made by section two of this act shall not affect the repeal of such subdivision and shall be deemed to be repealed therewith. PART Z Section 1. This Part enacts into law major components of legislation relating to the administration of the STAR program authorized by section 425 of the real property tax law and subsection (eee) of section 606 of the tax law. Each component is wholly contained within a Subpart identi- fied as Subparts A through E. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes refer- ence to a section of "this act", when used in connection with that particular component, shall be deemed to mean and refer to the corre- sponding section of the Subpart in which it is found. Section two contains a severability clause for all provisions contained in each Subpart of this Part. Section three of this act sets forth the general effective date of this Part. SUBPART A Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real property tax law, as amended by section 1 of part TT of chapter 59 of the laws of 2019, is amended to read as follows: (a-2) Notwithstanding any provision of law to the contrary, where an application for the "enhanced" STAR exemption authorized by subdivision four of this section has not been filed on or before the taxable status date, and the owner believes that good cause existed for the failure to file the application by that date, the owner may, no later than the last day for paying school taxes without incurring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall contain an explanation of why the deadline was missed, and shall be accompanied by an application, reflecting the facts and circumstances as they existed on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the exemption if the commissioner is satisfied that (i) good cause existed for the failure to file the application by the taxable status date, and that (ii) the applicant is otherwise entitled to the exemption. The commis- sioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner has granted the exemption, the assessor shall thereupon be authorized and A. 9009--B 44 directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. [If the correction is not made before school taxes are levied, the school district authorities shall be authorized and directed to take account of the fact that the commissioner has granted the exemption by correcting the applicant's tax bill and/or issuing a refund accordingly] PROVIDED, HOWEVER, THAT IF THE ASSESSMENT ROLL CANNOT BE CORRECTED IN TIME FOR THE EXEMPTION TO APPEAR ON THE APPLICANT'S SCHOOL TAX BILL, THE COMMISSIONER SHALL BE AUTHORIZED TO REMIT DIRECTLY TO THE APPLICANT THE TAX SAVINGS THAT THE STAR EXEMPTION WOULD HAVE YIELDED IF IT HAD APPEARED ON THE APPLICANT'S TAX BILL. THE AMOUNTS SO PAYABLE SHALL BE PAID FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE REGISTRANTS PURSUANT TO SUBPAR- AGRAPH (III) OF PARAGRAPH (A) OF SUBDIVISION FOURTEEN OF THIS SECTION. § 2. This act shall take effect immediately. SUBPART B Intentionally Omitted. SUBPART C Section 1. Subparagraph (A) of paragraph 3 of subsection (eee) of section 606 of the tax law, as amended by section 2 of part RR of chap- ter 59 of the laws of 2019, is amended to read as follows: (A) Beginning with taxable years after two thousand fifteen, a basic STAR credit shall be available to a qualified taxpayer if the affiliated income of the parcel that serves as the taxpayer's primary residence is less than or equal to five hundred thousand dollars FOR THE APPLICABLE INCOME TAX YEAR SPECIFIED BY PARAGRAPH (B-1) OF SUBDIVISION THREE OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW. The income limit established for the basic STAR exemption by paragraph (b-1) of subdivision three of section four hundred twenty-five of the real property tax law shall not be taken into account when determining eligi- bility for the basic STAR credit. § 2. This act shall take effect immediately. SUBPART D Section 1. Subparagraph (B) of paragraph 7 of subsection (eee) of section 606 of the tax law, as amended by section 7 of part E of chapter 59 of the laws of 2018, is amended to read as follows: (B) Notwithstanding any provision of law to the contrary, the names and addresses of individuals who have applied for or are receiving the credit authorized by this subsection may be disclosed to assessors, county directors of real property tax services, and municipal tax collecting officers WITHIN NEW YORK STATE. In addition, where an agree- ment is in place between the commissioner and the head of the tax department of another state, such information may be disclosed to such official or his or her designees, OR ASSESSORS AND TAX OFFICIALS FROM JURISDICTIONS OUTSIDE NEW YORK STATE IF THE LAWS OF THE OTHER JURISDIC- TION ALLOW IT TO PROVIDE SIMILAR INFORMATION TO THIS STATE. Such infor- mation shall be considered confidential and shall not be subject to further disclosure pursuant to the freedom of information law or other- wise. A. 9009--B 45 § 2. This act shall take effect immediately. SUBPART E Section 1. Subsection (c) of section 651 of the tax law, as amended by section 3 of part QQ of chapter 59 of the laws of 2019, is amended to read as follows: (c) Decedents. The return for any deceased individual shall be made and filed by [his] THE DECEDENT'S executor, administrator, or other person charged with [his] THE DECEDENT'S property. If a final return of a decedent is for a fractional part of a year, the due date of such return shall be the fifteenth day of the fourth month following the close of the twelve-month period which began with the first day of such fractional part of the year. Notwithstanding any provision of law to the contrary, when a return has been filed for a decedent, the commissioner may disclose the decedent's name, address, and the date of death to the director of real property tax services of the county AND THE ASSESSOR OF THE ASSESSING UNIT in which the address reported on such return is located. § 2. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart contained in any part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, para- graph, subdivision, section or subpart contained in any part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Subparts A through E of this act shall be as specifically set forth in the last section of such Subparts. PART AA Section 1. Section 575-b of the real property tax law is amended by adding a new subdivision 4 to read as follows: 4. COMPLAINTS WITH RESPECT TO ASSESSMENTS DETERMINED UNDER THIS SECTION SHALL BE GOVERNED BY SECTIONS FIVE HUNDRED TWELVE AND FIVE HUNDRED TWENTY-FOUR OF THIS ARTICLE AND THE FOLLOWING PROVISIONS: (A) THE ASSESSOR SHALL, UPON REQUEST, PROVIDE THE OWNER WITH THE INPUTS THAT HE OR SHE ENTERED INTO THE COMMISSIONER'S APPRAISAL MODEL WHEN VALUING THE PROPERTY PURSUANT TO THIS SECTION. (B) THE PROPERTY OWNER MAY ADVISE THE ASSESSOR OF ANY ALLEGED ERRORS TO THE APPRAISAL MODEL INPUTS BELIEVED TO HAVE BEEN MADE BY THE ASSES- SOR, AND MAY PROVIDE INFORMATION TO THE ASSESSOR IN SUPPORT OF ANY PROPOSED CHANGE TO THOSE INPUTS. (C) IF THE PROPERTY OWNER PROVIDES SUCH INFORMATION TO THE ASSESSOR PRIOR TO THE FILING OF THE TENTATIVE ASSESSMENT ROLL, THE ASSESSOR MAY MAKE SUCH ADJUSTMENTS TO THE APPRAISAL MODEL INPUTS AS HE OR SHE DEEMS WARRANTED BASED UPON THE INFORMATION PROVIDED BY THE PROPERTY OWNER, AND MAY RECALCULATE THE PROPERTY VALUE BY ENTERING THE ADJUSTED INPUTS INTO THE APPRAISAL MODEL. (D) IF DISSATISFIED WITH THE ASSESSED VALUE APPEARING ON THE TENTATIVE ASSESSMENT ROLL, THE PROPERTY OWNER MAY FILE A COMPLAINT WITH THE BOARD A. 9009--B 46 OF ASSESSMENT REVIEW; PROVIDED, HOWEVER, THAT THE GROUNDS FOR REVIEW OF AN ASSESSMENT DETERMINED UNDER THIS SECTION WITH RESPECT TO BOTH ARTICLE FIVE AND ARTICLE SEVEN OF THIS CHAPTER SHALL BE LIMITED TO THE ACCURACY OF THE APPRAISAL MODEL INPUTS MADE BY THE ASSESSOR. (E) ACTIONS OR PROCEEDINGS THAT CHALLENGE THE VALIDITY AND ACCURACY OF THE APPRAISAL MODEL OR DISCOUNT RATES ESTABLISHED UNDER THIS SECTION MAY NOT BE COMMENCED AGAINST ASSESSING UNITS. SUCH CHALLENGES MAY ONLY BE BROUGHT BY COMMENCING AN ACTION AGAINST THE COMMISSIONER IN THE THIRD DEPARTMENT OF THE APPELLATE DIVISION OF THE SUPREME COURT IN THE MANNER PROVIDED BY ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. § 2. This act shall take effect immediately. PART BB Section 1. The subsection heading and paragraphs 1, 2, 3, and 4 of subsection (n-1) of section 606 of the tax law, as added by subpart B of part C of chapter 20 of the laws of 2015, the opening paragraph of subparagraph (a) of paragraph 2 as amended by section 7 of part A of chapter 60 of the laws of 2016, are amended to read as follows: [Property tax relief] HOMEOWNER TAX REBATE credit. (1) An individual taxpayer who meets the eligibility standards in paragraph two of this subsection shall be allowed a credit against the taxes imposed by this article in the amount specified in paragraph three of this subsection for tax [years two thousand sixteen, two thousand seventeen, two thou- sand eighteen, and two thousand nineteen] YEAR TWO THOUSAND TWENTY-TWO. (2) (a) To be eligible for the credit, the taxpayer (or taxpayers filing joint returns) on the personal income tax return filed for the taxable year two years prior, must have (i) been a resident, (ii) owned and primarily resided in real property receiving either the STAR exemption authorized by section four hundred twenty-five of the real property tax law or the school tax relief credit authorized by subsection (eee) of this section, and (iii) had qualified gross income no greater than two hundred [seventy-five] FIFTY thousand dollars. [Provided, however, that no credit shall be allowed if any of the following apply: (i) Such property is located in an independent school district that is subject to the provisions of section two thousand twenty-three-a of the education law and that has adopted a budget in excess of the tax levy limit prescribed by that section. To render its taxpayers eligible for the credit authorized by this subsection, the school district must certify its compliance with such tax levy limit in the manner prescribed by subdivision two of section two thousand twenty-three-b of the educa- tion law. (ii) Such property is located in a city with a dependent school district that is subject to the provisions of section three-c of the general municipal law and that has adopted a budget in excess of the tax levy limit prescribed by that section. To render its taxpayers eligible for the credit authorized by this subsection, the city must certify its compliance with such tax levy limit in the manner prescribed by subdivi- sion two of section three-d of the general municipal law. (iii) Such property is located in the city of New York.] (3) Amount of credit. (a) [For the two thousand sixteen taxable year (i) for a taxpayer residing in real property located within the metro- politan commuter transportation district (MCTD) and outside the city of New York, the amount of the credit shall be $130; (ii) for a taxpayer A. 9009--B 47 residing in real property located outside the MCTD, the amount of the credit shall be $185. (b) For the two thousand seventeen, two thousand eighteen and two thousand nineteen taxable years (i)] For a taxpayer who owned and prima- rily resided in real property receiving the basic STAR exemption OR WHO RECEIVED THE BASIC STAR CREDIT, the amount of the credit shall equal the STAR tax savings associated with such basic STAR exemption IN THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, multiplied by the following percentage: [(A) for the two thousand seventeen taxable year: Qualified Gross Income Percentage Not over $75,000 28% Over $75,000 but not over $150,000 20.5% Over $150,000 but not over $200,000 13% Over $200,000 but not over $275,000 5.5% Over $275,000 No credit (B) for the two thousand eighteen taxable year: Qualified Gross Income Percentage Not over $75,000 60% Over $75,000 but not over $150,000 42.5% Over $150,000 but not over $200,000 25% Over $200,000 but not over $275,000 7.5% Over $275,000 No credit (C) for the two thousand nineteen taxable year:] (I) FOR A TAXPAYER WHOSE PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY OF NEW YORK: Qualified Gross Income Percentage Not over $75,000 [85%] 163% Over $75,000 but not over $150,000 [60%] 115% Over $150,000 but not over $200,000 [35%] 66% Over $200,000 but not over [10%] 18% [$275,000] $250,000 Over [$275,000] $250,000 No credit (II) FOR A TAXPAYER WHOSE PRIMARY RESIDENCE IS LOCATED WITHIN THE CITY OF NEW YORK: QUALIFIED GROSS INCOME PERCENTAGE NOT OVER $75,000 125% OVER $75,000 BUT NOT OVER $150,000 115% OVER $150,000 BUT NOT OVER $200,000 105% OVER $200,000 BUT NOT OVER $250,000 100% OVER $250,000 NO CREDIT [(c)] (B) For a taxpayer who owned and primarily resided in real prop- erty receiving the enhanced STAR exemption OR WHO RECEIVED THE ENHANCED STAR CREDIT, the amount of the credit shall equal the STAR tax savings associated with such enhanced STAR exemption IN THE TWO THOUSAND TWEN- TY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, multiplied by [the follow- ing percentage: Taxable Year Percentage two thousand seventeen 12% two thousand eighteen 26% two thousand nineteen 34%] SIXTY-SIX PERCENT IF THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED OUTSIDE THE CITY OF NEW YORK, OR ONE HUNDRED TEN PERCENT IF THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED WITHIN THE CITY OF NEW YORK. [(d)] (C) In no case may the amount of the credit allowed under this subsection exceed the school district taxes due with respect to the A. 9009--B 48 residence for that school year, NOR SHALL ANY CREDIT BE ALLOWED UNDER THIS SUBSECTION IF THE AMOUNT DETERMINED PURSUANT TO THIS PARAGRAPH IS LESS THAN ONE HUNDRED DOLLARS. (4) For purposes of this subsection: (a) "Qualified gross income" means the adjusted gross income of the qualified taxpayer for the taxable year as reported for federal income tax purposes, or which would be reported as adjusted gross income if a federal income tax return were required to be filed. In computing quali- fied gross income, the net amount of loss reported on Federal Schedule C, D, E, or F shall not exceed three thousand dollars per schedule. In addition, the net amount of any other separate category of loss shall not exceed three thousand dollars. The aggregate amount of all losses included in computing qualified gross income shall not exceed fifteen thousand dollars. (b) "STAR tax savings" means the tax savings attributable to the basic or enhanced STAR exemption, whichever is applicable, within a portion of a school district, as determined by the commissioner pursuant to subdi- vision two of section thirteen hundred six-a of the real property tax law. [(c) "Metropolitan commuter transportation district" or "MCTD" means the metropolitan commuter transportation district as defined in section twelve hundred sixty-two of the public authorities law.] § 2. This act shall take effect immediately. PART CC Intentionally Omitted PART DD Section 1. Section 509-a of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part LLL of chapter 59 of the laws of 2021, is amended to read as follows: § 509-a. Capital acquisition fund. 1. The corporation may create and establish a capital acquisition fund for the purpose of financing the acquisition, construction or equipping of offices, facilities or prem- ises of the corporation. Such capital acquisition fund shall consist of (i) the amounts specified pursuant to subdivision three-a of section five hundred thirty-two of this chapter; and (ii) contributions from the corporation's pari-mutuel wagering pools, subject to the following limi- tations: a. no contribution shall exceed the amount of one percent of the total pari-mutuel wagering pools for the quarter in which the contribution is made; b. no contribution shall reduce the amount of quarterly net revenues, exclusive of surcharge revenues, to an amount less than fifty percent of such net revenues; and c. the balance of the fund shall not exceed the lesser of one percent of total pari-mutuel wagering pools for the previous twelve months or the undepreciated value of the corporation's offices, facilities and premises. 2. Notwithstanding any other provision of law or regulation to the contrary, FROM APRIL NINETEENTH, TWO THOUSAND TWENTY-ONE TO MARCH THIR- TY-FIRST, TWO THOUSAND TWENTY-TWO, AND FOR EACH STATE FISCAL YEAR THERE- AFTER, twenty-three percent of the funds, not to exceed two and one-half A. 9009--B 49 million dollars, in the Catskill off-track betting corporation's capital acquisition fund and twenty-three percent of the funds, not to exceed four hundred forty thousand dollars, in the Capital off-track betting corporation's capital acquisition fund established pursuant to this section shall also be available to such off-track betting corporation for the purposes of statutory obligations, payroll, and expenditures necessary to accept authorized wagers. 3. The Catskill off-track betting corporation and the Capital off- track betting corporation shall make a report to the governor, speaker of the assembly, temporary president of the senate and the commission detailing the actual use of the funds made available in the capital acquisition fund. Such report shall include, but not be limited to, any impact on employment levels since utilizing the funds, the status of any statutory obligations, an accounting of the use of such funds, and any other information as deemed necessary by the commission. Such report shall be due no later than the [first day of April two thousand twenty- two] LAST DAY OF THE FISCAL YEAR IN WHICH THE MONIES WERE SPENT. § 2. Section 2 of part LLL of chapter 59 of the laws of 2021 amending the racing, pari-mutuel wagering and breeding law, relating to the utilization of funds in the Catskill and Capital regions off-track betting corporation's capital acquisition funds, is amended to read as follows: § 2. This act shall take effect immediately and shall expire and be deemed repealed [one year] TWO YEARS after such date. § 3. This act shall take effect immediately. PART EE Section 1. Paragraph (a) of subdivision 1 of section 1003 of the racing, pari-mutuel wagering and breeding law, as amended by section 1 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized A. 9009--B 50 by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [twenty-two] TWENTY-THREE; provided, however, that any party to such agreement may elect to terminate such agreement upon conveying written notice to all other parties of such agreement at least forty-five days prior to the effective date of the termination, via registered mail. Any party to an agreement receiving such notice of an intent to terminate, may request the commission to mediate between the parties new terms and conditions in a replacement agreement between the parties as will permit continuation of an in-home experiment until June thirtieth, two thousand [twenty-two] TWENTY-THREE; and (iv) no in-home simulcasting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: (iii) Of the sums retained by a receiving track located in Westchester county on races received from a franchised corporation, for the period commencing January first, two thousand eight and continuing through June thirtieth, two thousand [twenty-two] TWENTY-THREE, the amount used exclusively for purses to be awarded at races conducted by such receiv- ing track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twenty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as amended by section 3 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is conducting a race meet- ing in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [twenty-two] TWENTY-THREE and on any day regard- less of whether or not a franchised corporation is conducting a race A. 9009--B 51 meeting in Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, two thousand [twenty-two] TWENTY-THREE. On any day on which a franchised corporation has not scheduled a racing program but a thoroughbred racing corporation located within the state is conducting racing, each off-track betting corporation branch office and each simul- casting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's repre- sentative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: 1. The provisions of this section shall govern the simulcasting of races conducted at harness tracks located in another state or country during the period July first, nineteen hundred ninety-four through June thirtieth, two thousand [twenty-two] TWENTY-THREE. This section shall supersede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: The provisions of this section shall govern the simulcasting of races conducted at thoroughbred tracks located in another state or country on any day during which a franchised corporation is not conducting a race meeting in Saratoga county at Saratoga thoroughbred racetrack until June thirtieth, two thousand [twenty-two] TWENTY-THREE. Every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven that have entered into a written agreement with such facility's representative horsemen's organization as approved by the commission, one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live full-card simulcast signal of thoroughbred tracks (which may include quarter horse or mixed meetings provided that all such wagering on such races shall be construed to be thoroughbred races) located in another state or foreign country, subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article: § 6. The opening paragraph of section 1018 of the racing, pari-mutuel wagering and breeding law, as amended by section 6 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: Notwithstanding any other provision of this chapter, for the period July twenty-fifth, two thousand one through September eighth, two thou- sand [twenty-one] TWENTY-TWO, when a franchised corporation is conduct- ing a race meeting within the state at Saratoga Race Course, every off- track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing A. 9009--B 52 programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. § 7. Section 32 of chapter 281 of the laws of 1994, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting, as amended by section 7 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: § 32. This act shall take effect immediately and the pari-mutuel tax reductions in section six of this act shall expire and be deemed repealed on July 1, [2022] 2023; provided, however, that nothing contained herein shall be deemed to affect the application, qualifica- tion, expiration, or repeal of any provision of law amended by any section of this act, and such provisions shall be applied or qualified or shall expire or be deemed repealed in the same manner, to the same extent and on the same date as the case may be as otherwise provided by law; provided further, however, that sections twenty-three and twenty- five of this act shall remain in full force and effect only until May 1, 1997 and at such time shall be deemed to be repealed. § 8. Section 54 of chapter 346 of the laws of 1990, amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, as amended by section 8 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: § 54. This act shall take effect immediately; provided, however, sections three through twelve of this act shall take effect on January 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- ing law, as added by section thirty-eight of this act, shall expire and be deemed repealed on July 1, [2022] 2023; and section eighteen of this act shall take effect on July 1, 2008 and sections fifty-one and fifty- two of this act shall take effect as of the same date as chapter 772 of the laws of 1989 took effect. § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, pari-mutuel wagering and breeding law, as amended by section 9 of part DD of chapter 59 of the laws of 2021, is amended to read as follows: (a) The franchised corporation authorized under this chapter to conduct pari-mutuel betting at a race meeting or races run thereat shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets are presented for payment before April first of the year following the year of their purchase, less an amount that shall be established and retained by such franchised corporation of between twelve to seventeen percent of the total deposits in pools resulting from on-track regular bets, and fourteen to twenty- one percent of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five percent of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six percent of the total deposits in pools resulting from on-track super exotic bets, plus the breaks. The retention rate to be established is subject to the prior approval of the commission. Such rate may not be changed more than once per calendar quarter to be effective on the first day of the calendar quarter. "Exotic bets" and "multiple bets" shall have the meanings set forth in section five hundred nineteen of this chapter. "Super exotic bets" shall have the meaning set forth in section three hundred one of this chapter. For purposes of this section, a "pick six bet" shall mean a single bet or wager on the outcomes of six races. The breaks are hereby defined as the odd cents over any multiple of five for payoffs greater than one dollar A. 9009--B 53 five cents but less than five dollars, over any multiple of ten for payoffs greater than five dollars but less than twenty-five dollars, over any multiple of twenty-five for payoffs greater than twenty-five dollars but less than two hundred fifty dollars, or over any multiple of fifty for payoffs over two hundred fifty dollars. Out of the amount so retained there shall be paid by such franchised corporation to the commissioner of taxation and finance, as a reasonable tax by the state for the privilege of conducting pari-mutuel betting on the races run at the race meetings held by such franchised corporation, the following percentages of the total pool for regular and multiple bets five percent of regular bets and four percent of multiple bets plus twenty percent of the breaks; for exotic wagers seven and one-half percent plus twenty percent of the breaks, and for super exotic bets seven and one-half percent plus fifty percent of the breaks. For the period April first, two thousand one through December thirty- first, two thousand [twenty-two] TWENTY-THREE, such tax on all wagers shall be one and six-tenths percent, plus, in each such period, twenty percent of the breaks. Payment to the New York state thoroughbred breed- ing and development fund by such franchised corporation shall be one- half of one percent of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three percent of super exotic bets and for the period April first, two thousand one through December thirty-first, two thousand [twenty-two] TWENTY-THREE, such payment shall be seven-tenths of one percent of regular, multiple and exotic pools. § 10. This act shall take effect immediately. PART FF Section 1. Paragraph 1 of subsection (d) of section 606 of the tax law, as amended by section 1 of part Q of chapter 63 of the laws of 2000, is amended to read as follows: (1) General. A taxpayer shall be allowed a credit as provided herein equal to (i) the applicable percentage of the earned income credit allowed under section thirty-two of the internal revenue code for the same taxable year, (ii) reduced by the credit permitted under subsection (b) of this section. The applicable percentage shall be (i) seven and one-half percent for taxable years beginning in nineteen hundred ninety-four, (ii) ten percent for taxable years beginning in nineteen hundred ninety-five, (iii) twenty percent for taxable years beginning after nineteen hundred ninety-five and before two thousand, (iv) twenty-two and one-half percent for taxable years beginning in two thousand, (v) twenty-five percent for taxable years beginning in two thousand one, (vi) twenty- seven and one-half percent for taxable years beginning in two thousand two, [and] (vii) thirty percent for taxable years beginning in two thou- sand three, AND (VIII) THIRTY-SEVEN AND ONE-HALF PERCENT FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO and thereafter. [Provided, however, that if the reversion event, as defined in this paragraph, occurs, the applicable percentage shall be twenty percent for taxable years ending on or after the date on which the reversion event occurred. The reversion event shall be deemed to have occurred on the date on which federal action, including but not limited to, administrative, statutory or regulatory changes, materially reduces or eliminates New York state's allocation of the federal temporary assistance for needy families block grant, or materially reduces the ability of the state to spend federal temporary assistance for needy families block grant funds A. 9009--B 54 for the earned income credit or to apply state general fund spending on the earned income credit toward the temporary assistance for needy fami- lies block grant maintenance of effort requirement, and the commissioner of the office of temporary and disability assistance shall certify the date of such event to the commissioner of taxation and finance, the director of the division of the budget, the speaker of the assembly and the temporary president of the senate.] PROVIDED, HOWEVER, FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO AND THEREAFTER, IN THE CASE OF AN ELIGIBLE INDIVIDUAL WITH NO QUALIFYING CHILDREN, AS SUCH TERM IS DEFINED IN SECTION 32 OF THE INTERNAL REVENUE CODE, NOTWITHSTANDING SECTION 32(C)(3)(D), THE APPLICABLE PERCENTAGE SHALL BE SIXTY PERCENT. FURTHERMORE, AN INDIVIDUAL OTHERWISE ELIGIBLE BUT FOR THE REQUIREMENT UNDER SECTION 32(M) OF THE INTERNAL REVENUE CODE SHALL BE ELIGIBLE FOR THIS CREDIT. § 2. The tax law is amended by adding a new section 679 to read as follows: § 679. ADVANCE PAYMENT OF EARNED INCOME CREDIT. (A) GENERAL RULE. EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, THE COMMISSIONER SHALL PROVIDE FOR THE PREPAYMENT OF THE EARNED INCOME CREDIT TO QUALIFYING TAXPAYERS, IF SUCH TAXPAYER ELECTS TO RECEIVE SUCH ADVANCED PAYMENTS. (B) EARNED INCOME ELIGIBILITY APPLICATION. FOR PURPOSES OF THIS ARTI- CLE, AN EARNED INCOME ELIGIBILITY APPLICATION IS A STATEMENT FURNISHED BY A TAXPAYER TO THE COMMISSIONER WHICH: (1) CERTIFIES THAT THE TAXPAYER RECEIVED AN EARNED INCOME CREDIT OR AN ENHANCED EARNED INCOME CREDIT PROVIDED PURSUANT TO SUBSECTION (D) OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE FOR THE MOST RECENTLY AVAILABLE TAXABLE YEAR; (2) INCLUDES INFORMATION ON ANY SUBSTANTIAL CHANGE IN INCOME OR CHANGE IN FILING STATUS THAT WOULD MATERIALLY CHANGE A TAXPAYER'S ELIGIBILITY FOR THE EARNED INCOME CREDIT; AND (3) STATES WHETHER THE EMPLOYEE'S SPOUSE HAS FILED AN EARNED INCOME ELIGIBILITY APPLICATION FOR THE TAXABLE YEAR. (C) EARNED INCOME ADVANCE AMOUNT. THREE ADVANCED PAYMENTS SHALL BE MADE TO SUCH QUALIFYING TAXPAYER THAT FILES AN EARNED INCOME ELIGIBILITY APPLICATION WITH THE DEPARTMENT BY THE FIRST OF JUNE IN ANY TAXABLE YEAR. AN ESTIMATED ANNUAL TAX CREDIT SHALL BE DETERMINED BY THE COMMIS- SIONER IN ADVANCE OF THE FIRST PAYMENT WHICH SHALL BE EQUAL TO THE CRED- IT PROVIDED FOR THE MOST RECENTLY AVAILABLE TAXABLE YEAR AS ADJUSTED BASED ON CHANGES IN INCOME OR FILING STATUS AS REPORTED IN THE TAXPAY- ER'S EARNED INCOME ELIGIBILITY APPLICATION. PRIOR TO DISBURSEMENT, THE COMMISSIONER IS AUTHORIZED TO VERIFY THAT THE QUALIFYING TAXPAYER'S STATUS HAS NOT CHANGED. THE THREE ADVANCED PAYMENTS FOR A TAXABLE YEAR SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF THE ESTIMATED ANNUAL TAX CRED- IT, AND SHALL BE DISBURSED ON THE THIRTIETH OF JUNE, THE THIRTIETH OF SEPTEMBER, AND THE THIRTY-FIRST OF DECEMBER, OF THE TAXABLE YEAR. THE REMAINDER OF THE EARNED INCOME CREDIT AMOUNT SHALL BE RECONCILED UPON THE FILING OF THE TAXPAYER'S FINAL RETURN FOR THE TAXABLE YEAR. SUCH ADVANCED PAYMENTS SHALL, TO THE EXTENT PRACTICABLE, BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA ELECTRONIC BENEFIT TRANSFER (EBT) CARD. (D) FORM AND CONTENTS OF APPLICATION. EARNED INCOME ELIGIBILITY APPLICATION SHALL BE IN SUCH FORM AND CONTAIN SUCH INFORMATION AS THE COMMISSIONER MAY DETERMINE AND PRESCRIBE. (E) NOTIFICATION. (1) THE COMMISSIONER SHALL NOTIFY ALL TAXPAYERS WHO HAVE RECEIVED A REFUND OF THE CREDIT PURSUANT TO SUBSECTION (D) OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE BASED ON THE MOST RECENT TAX RETURN OR RECORD IN WRITING OF THE AVAILABILITY OF EARNED INCOME ADVANCE A. 9009--B 55 AMOUNTS UNDER THIS SECTION, NO LATER THAN MAY FIRST OF THE TAXABLE YEAR. SUCH WRITTEN OR ELECTRONIC NOTIFICATION SHALL INCLUDE A CLEARLY LABELED SECTION OR WITHHOLDING FORMS AND A SEPARATE HANDOUT WITH INFORMATION ABOUT THE ADVANCED PAYMENT OF THE EARNED INCOME CREDIT IN THE SIX MOST COMMON LANGUAGES SPOKEN BY INDIVIDUALS IN THIS STATE. (2) THE COMMISSIONER SHALL PROVIDE INFORMATION OF THE AVAILABILITY OF EARNED INCOME ADVANCE AMOUNTS UNDER THIS SECTION TO TAX PREPARERS, ACCOUNTANTS AND ORGANIZATIONS THAT ASSIST INDIVIDUALS IN TAX PREPARA- TION. SUCH INFORMATION SHALL BE DISTRIBUTED TO QUALIFYING INDIVIDUALS. (3) ANY INCREASE IN TAX UNDER THIS SUBSECTION SHALL NOT BE TREATED AS TAX IMPOSED BY THIS CHAPTER FOR PURPOSES OF DETERMINING THE AMOUNT OF ANY CREDIT, OTHER THAN THE CREDIT ALLOWED BY SUBSECTION (D) OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, ALLOWABLE UNDER THIS ARTICLE. § 3. Paragraph 1 of subsection (c-1) of section 606 of the tax law, as amended by section 1 of part P of chapter 59 of the laws of 2018, is amended to read as follows: (1) A resident taxpayer shall be allowed a credit as provided herein equal to the greater of one hundred dollars times the number of qualify- ing children of the taxpayer or the applicable percentage of the child tax credit allowed the taxpayer under section twenty-four of the inter- nal revenue code for the same taxable year for each qualifying child. Provided, however, in the case of a taxpayer whose federal adjusted gross income exceeds the applicable threshold amount set forth by section 24(b)(2) of the Internal Revenue Code, the credit shall only be equal to the applicable percentage of the child tax credit allowed the taxpayer under section 24 of the Internal Revenue Code for each qualify- ing child. For the purposes of this subsection, a qualifying child shall be a child who meets the definition of qualified child under section 24(c) of the internal revenue code [and is at least four years of age]. The applicable percentage shall be thirty-three percent. For purposes of this subsection, any reference to section 24 of the Internal Revenue Code shall be a reference to such section as it existed immediately prior to the enactment of Public Law 115-97. PROVIDED, HOWEVER, FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO AND THEREAFTER, FOR A RESIDENT TAXPAYER WITH FEDERAL ADJUSTED GROSS INCOME OF LESS THAN ONE HUNDRED THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE APPLI- CABLE PERCENTAGE OTHERWISE COMPUTED UNDER THIS PARAGRAPH MULTIPLIED BY A FACTOR AS FOLLOWS: IF FEDERAL ADJUSTED GROSS INCOME IS: THE FACTOR IS: LESS THAN $10,000 2.00 AT LEAST $10,000 AND LESS THAN $25,000 1.75 AT LEAST $25,000 AND LESS THAN $50,000 1.50 AT LEAST $50,000 AND LESS THAN $100,000 1.25 § 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART GG Section 1. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) ANY INCOME, GAIN, LOSS AND DEDUCTION, TO THE EXTENT IT IS INCLUDED IN FEDERAL ADJUSTED GROSS INCOME AND IS, WHEN COMBINED AND A. 9009--B 56 COMBINED WITH ADDITIONS FOR FEDERAL DEPRECIATION REQUIRED BY PARAGRAPH EIGHT OF THIS SUBSECTION AND SUBTRACTIONS FOR NEW YORK ALLOWED BY SUBSECTION (K) OF THIS SECTION, LESS THAN ZERO, OF AN INDIVIDUAL OR TRUST FROM A QUALIFIED PASS-THROUGH MANUFACTURER, AS DEFINED IN PARA- GRAPH FORTY-SIX OF SUBSECTION (C) OF THIS SECTION. § 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as added by section 1 of part Y of chapter 59 of the laws of 2013, is amended and a new paragraph 46 is added to read as follows: (39) In the case of a taxpayer who is a small business who has busi- ness income and/or farm income as defined in the laws of the United States, an amount equal to three percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand thirteen, an amount equal to three and three-quarters percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years begin- ning after two thousand fourteen, and an amount equal to five percent of the net items of income, gain, loss and deduction attributable to such business or farm entering into federal adjusted gross income, but not less than zero, for taxable years beginning after two thousand fifteen. For the purposes of this paragraph, the term small business shall mean a sole proprietor or a farm business who employs one or more persons during the taxable year and who has net business income or net farm income of less than two hundred fifty thousand dollars. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM SMALL BUSINESS SHALL EXCLUDE ANY BUSINESS THAT IS A QUALIFIED PASS-THROUGH MANUFACTURER, AS DEFINED IN PARAGRAPH FORTY-SIX OF THIS SUBSECTION FOR THE CURRENT TAX YEAR. (46) (A) ANY INCOME, GAIN, LOSS AND DEDUCTION, TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME AND IS, WHEN COMBINED AND COMBINED WITH ADDITIONS FOR FEDERAL DEPRECIATION REQUIRED BY PARAGRAPH EIGHT OF THIS SUBSECTION AND SUBTRACTIONS FOR NEW YORK ALLOWED BY SUBSECTION (K) OF THIS SECTION, GREATER THAN ZERO, OF AN INDIVIDUAL OR TRUST FROM A QUALI- FIED PASS-THROUGH MANUFACTURER. INCOME FROM A QUALIFIED PASS-THROUGH MANUFACTURER SHALL INCLUDE WAGES OF AN INDIVIDUAL CONTROLLING TEN PERCENT OR MORE OF THE QUALIFIED BUSINESS OR ENTITY. INCOME OR LOSS FROM A QUALIFIED PASS-THROUGH MANUFACTURER SHALL NOT INCLUDE AN AMOUNT REPRESENTING REASONABLE COMPENSATION FOR PERSONAL SERVICES, AS DEFINED IN THE INTERNAL REVENUE CODE SECTION ONE HUNDRED SIXTY-TWO REGULATIONS, FOR AN INDIVIDUAL CONTROLLING TEN PERCENT OR MORE OF THE QUALIFIED BUSI- NESS OR ENTITY. (B) THE QUALIFIED PASS-THROUGH MANUFACTURER MAY BE ORGANIZED AS A SOLE PROPRIETORSHIP, A PARTNERSHIP, A LIMITED LIABILITY COMPANY ELECTING TO BE TREATED AS A PARTNERSHIP OR SOLE PROPRIETORSHIP, OR AN S CORPORATION. (C) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM QUALIFIED PASS- THROUGH MANUFACTURER SHALL MEAN A BUSINESS THAT IS A QUALIFIED NEW YORK MANUFACTURER, AS DEFINED BY SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF SUBDI- VISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER, EXCEPT THAT THE TERM "GROSS RECEIPTS" SHALL BE REPLACED BY "BUSINESS RECEIPTS" IN DETER- MINING WHETHER THE BUSINESS IS "PRINCIPALLY ENGAGED" IN MANUFACTURING. A QUALIFIED PASS-THROUGH MANUFACTURER SHALL NOT INCLUDE A BUSINESS THAT IS CURRENTLY PARTICIPATING IN THE START-UP NY PROGRAM. § 3. Paragraph 2 of subsection (a) of section 606 of the tax law is amended by adding a new subparagraph (B-1) to read as follows: (B-1) PROPERTY PLACED IN SERVICE DURING THE TAX YEAR THAT IS OTHERWISE ELIGIBLE FOR THE INVESTMENT TAX CREDIT DESCRIBED IN SUBPARAGRAPH (A) OF A. 9009--B 57 THIS PARAGRAPH, WILL NOT BE ELIGIBLE FOR THE INVESTMENT TAX CREDIT IF THE USE OF THE PROPERTY IS BY A QUALIFIED PASS-THROUGH MANUFACTURER, AS DEFINED IN PARAGRAPH FORTY-SIX OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE FOR THE CURRENT TAX YEAR. § 4. Subdivision 1 of section 210-B of the tax law is amended by adding a new paragraph (g) to read as follows: (G) PROPERTY PLACED IN SERVICE DURING THE TAX YEAR THAT IS OTHERWISE ELIGIBLE FOR THE INVESTMENT TAX CREDIT DESCRIBED IN THIS SUBDIVISION, WILL NOT BE ELIGIBLE FOR THE INVESTMENT TAX CREDIT IF THE USE OF THE PROPERTY IS BY A QUALIFIED NEW YORK MANUFACTURER, AS DEFINED IN SUBPARA- GRAPH (VI) OF PARAGRAPH (A) OF SUBSECTION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE FOR THE CURRENT TAX YEAR. § 5. For purposes of determining the modifications of paragraphs 39 and 46 of subsection (c) of section 612 of the tax law and the invest- ment tax credit disallowance of subparagraph (B-1) of paragraph 2 of subsection (a) of section 606 of the tax law, the amounts shall be multiplied by the following percentages: (a) for tax years beginning on or after January 1, 2022: thirty-three percent; (b) for tax years begin- ning on or after January 1, 2023: sixty-six percent; and (c) for tax years beginning on or after January 1, 2024: one hundred percent. § 6. This act shall take effect immediately and shall apply to tax years beginning on or after January 1, 2022. PART HH Section 1. Paragraph (a) of subdivision 26 of section 210-B of the tax law, as amended by section 2 of part RR of chapter 59 of the laws of 2018, subparagraph (i) as amended by section 2 of part CCC of chapter 59 of the laws of 2021, and clause (B) of subparagraph (ii) as added by section 17 of part A of chapter 59 of the laws of 2014, is amended and a new paragraph (g) is added to read as follows: (a) Application of credit. (i) For taxable years beginning on or after January first, two thousand ten, and before January first, two thousand [twenty-five] THIRTY-TWO, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer for the same taxable year with respect to a certified historic structure, and one hundred fifty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure that is a small project, under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located within the state. Provided, howev- er, the credit shall not exceed five million dollars. (ii) (A) For taxable years beginning on or after January first, two thousand [twenty-five] THIRTY-TWO, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer for the same taxable year determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of section 47 of the internal revenue code, with respect to a certi- fied historic structure under subsection (c)(3) of section 47 of the internal revenue code with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed one hundred thousand dollars. A. 9009--B 58 (B) If the taxpayer is a partner in a partnership or a shareholder in a New York S corporation, then the credit caps imposed in [subparagraph] CLAUSE (A) of this [paragraph] SUBPARAGRAPH shall be applied at the entity level, so that the aggregate credit allowed to all the partners or shareholders of each such entity in the taxable year does not exceed the credit cap that is applicable in that taxable year. (G) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS CLAIMED AND AWARDED PURSUANT TO THIS SUBDIVISION ON RETURNS FILED DURING THE PRECEDING CALENDAR YEAR. SUCH REPORT SHALL BE PROVIDED TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE AND CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE. § 2. Section 14.05 of the parks, recreation and historic preservation law is amended by adding a new subdivision 5 to read as follows: 5. (A) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY OF NOVEMBER, ON THE TAX CREDIT PROJECTS APPLIED FOR IN ACCORDANCE WITH SUBDIVISION TWENTY-SIX OF SECTION TWO HUNDRED TEN-B, SUBSECTION (OO) OF SECTION SIX HUNDRED SIX, AND SUBDIVISION (Y) OF SECTION ONE THOUSAND FIVE HUNDRED ELEVEN OF THE TAX LAW ON RETURNS FILED DURING THE PRECEDING CALENDAR YEAR. SUCH REPORT SHALL BE PROVIDED TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE AND CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, SHALL BE MADE PUBLICLY AVAILABLE ON THE OFFICE'S WEBSITE, AND SHALL INCLUDE THE FOLLOWING INFORMATION: (I) THE NUMBER AND VALUE OF TAX CREDIT PROJECTS APPLIED FOR DURING THE STATE FISCAL YEAR, ORGANIZED BY MUNICIPALITY AND COUNTY, AND PROJECT SIZE; (II) THE NUMBER AND VALUE OF TAX CREDIT PROJECTS CERTIFIED BY THE NATIONAL PARK SERVICE DURING THE STATE FISCAL YEAR, ORGANIZED BY MUNICI- PALITY AND COUNTY, AND PROJECT SIZE; (III) THE TOTAL VALUE OF CREDITS CERTIFIED ANNUALLY FOR EACH OF THE TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVEN TO THE PRESENT, BY MUNICIPALITY AND COUNTY; (IV) THE NUMBER OF HOUSING UNITS BEFORE AND AFTER REHABILITATION; (V) THE NUMBER OF LOW-MODERATE HOUSING UNITS BEFORE AND AFTER REHABIL- ITATION; AND (VI) THE NUMBER OF PROJECTS CERTIFIED FOR BOTH FEDERAL AND STATE CRED- ITS, AND THE NUMBER OF PROJECTS CERTIFIED FOR FEDERAL CREDITS ONLY. (B) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY OF NOVEMBER, ON THE TAX CREDIT PROJECTS APPLIED FOR PURSUANT TO SUBSECTION (PP) OF SECTION SIX HUNDRED SIX OF THE TAX LAW ON RETURNS FILED DURING THE PRECEDING CALENDAR YEAR. SUCH REPORT SHALL BE PROVIDED TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE AND CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, SHALL BE MADE PUBLICLY AVAILABLE ON THE OFFICE'S WEBSITE, AND SHALL INCLUDE THE FOLLOWING INFORMATION: (I) THE NUMBER AND VALUE OF TAX CREDIT PROJECTS APPLIED FOR DURING THE STATE FISCAL YEAR, ORGANIZED BY MUNICIPALITY AND COUNTY, AND PROJECT SIZE; (II) THE NUMBER AND VALUE OF TAX CREDIT PROJECTS CERTIFIED BY THE OFFICE DURING THE STATE FISCAL YEAR, ORGANIZED BY MUNICIPALITY AND COUNTY, AND PROJECT SIZE; (III) THE TOTAL VALUE OF CREDITS CERTIFIED ANNUALLY FOR EACH OF THE TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVEN TO THE PRESENT, BY MUNICIPALITY AND COUNTY; A. 9009--B 59 (IV) THE NUMBER OF HOUSING UNITS BEFORE AND AFTER REHABILITATION; AND (V) THE NUMBER OF PROJECTS CERTIFIED FOR STATE CREDITS BY THE OFFICE. § 3. Subparagraph (A) of paragraph 1 of subsection (oo) of section 606 of the tax law, as amended by section 1 of part CCC of chapter 59 of the laws of 2021, is amended and a new paragraph 7 is added to read as follows: (A) For taxable years beginning on or after January first, two thou- sand ten and before January first, two thousand [twenty-five] THIRTY-TWO, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure, and one hundred fifty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure that is a small project, under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located with- in the state. Provided, however, the credit shall not exceed five million dollars. For taxable years beginning on or after January first, two thousand [twenty-five] THIRTY-TWO, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located within the state; provided, however, the credit shall not exceed one hundred thousand dollars. (7) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS CLAIMED AND AWARDED PURSUANT TO THIS SUBSECTION ON RETURNS FILED DURING THE PRECEDING CALEN- DAR YEAR. SUCH REPORT SHALL BE PROVIDED TO THE GOVERNOR, TEMPORARY PRES- IDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE AND CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE. § 4. Paragraph 2 of subsection (pp) of section 606 of the tax law, as amended by section 4 of part RR of chapter 59 of the laws of 2018, is amended and a new paragraph 13 is added to read as follows: (2) (A) With respect to any particular residence of a taxpayer, the credit allowed under paragraph one of this subsection shall not exceed fifty thousand dollars for taxable years beginning on or after January first, two thousand ten and before January first, two thousand [twenty- five] THIRTY-TWO and twenty-five thousand dollars for taxable years beginning on or after January first, two thousand [twenty-five] THIRTY- TWO. In the case of a husband and wife, the amount of the credit shall be divided between them equally or in such other manner as they may both elect. If a taxpayer incurs qualified rehabilitation expenditures in relation to more than one residence in the same year, the total amount of credit allowed under paragraph one of this subsection for all such expenditures shall not exceed fifty thousand dollars for taxable years beginning on or after January first, two thousand ten and before January first, two thousand [twenty-five] THIRTY-TWO and twenty-five thousand dollars for taxable years beginning on or after January first, two thou- sand [twenty-five] THIRTY-TWO. (B) For taxable years beginning on or after January first, two thou- sand ten and before January first, two thousand [twenty-five] A. 9009--B 60 THIRTY-TWO, if the amount of credit allowable under this subsection shall exceed the taxpayer's tax for such year, and the taxpayer's New York adjusted gross income for such year does not exceed sixty thousand dollars, the excess shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon. If the taxpayer's New York adjusted gross income for such year exceeds sixty thousand dollars, the excess credit that may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. For taxable years beginning on or after January first, two thousand [twenty-five] THIRTY-TWO, if the amount of credit allowable under this subsection shall exceed the taxpayer's tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. (13) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS CLAIMED AND AWARDED PURSUANT TO THIS SUBSECTION ON RETURNS FILED DURING THE PRECEDING CALEN- DAR YEAR. SUCH REPORT SHALL BE PROVIDED TO THE GOVERNOR, TEMPORARY PRES- IDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE AND CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE. § 5. Subparagraph (A) of paragraph 1 of subdivision (y) of section 1511 of the tax law, as amended by section 3 of part CCC of chapter 59 of the laws of 2021, is amended and a new paragraph 7 is added to read as follows: (A) For taxable years beginning on or after January first, two thou- sand ten and before January first, two thousand [twenty-five] THIRTY-TWO, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure, and one hundred fifty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure that is a small project, under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located with- in the state. Provided, however, the credit shall not exceed five million dollars. For taxable years beginning on or after January first, two thousand [twenty-five] THIRTY-TWO, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47 with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed one hundred thousand dollars. (7) THE COMMISSIONER SHALL REPORT ANNUALLY, ON OR BEFORE THE FIRST DAY OF NOVEMBER, ON THE AGGREGATE AMOUNT OF CREDITS CLAIMED AND AWARDED PURSUANT TO THIS SUBDIVISION ON RETURNS FILED DURING THE PRECEDING CALENDAR YEAR. SUCH REPORT SHALL BE PROVIDED TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE AND CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE. § 6. This act shall take effect immediately. A. 9009--B 61 PART II Section 1. The tax law is amended by adding a new section 493-a to read as follows: § 493-A. DEDUCTIONS. (A) FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO, AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, THE PROVISIONS OF SECTION 280E OF THE INTERNAL REVENUE CODE, RELATING TO EXPENDITURES IN CONNECTION WITH THE ILLEGAL SALE OF DRUGS, SHALL NOT APPLY FOR THE PURPOSES OF THIS CHAPTER TO THE CARRYING ON OF ANY TRADE OR BUSINESS THAT IS COMMERCIAL CANNABIS ACTIV- ITY BY A LICENSEE. (B) FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY: (1)"COMMERCIAL CANNABIS ACTIVITY" INCLUDES THE CULTIVATION, POSSESSION, MANUFACTURE, DISTRIBUTION, PROCESSING, STORING, LABORATORY TESTING, PACKAGING, LABELING, TRANSPORTATION, DELIVERY, OR SALE OF CANNABIS AND CANNABIS PRODUCTS, OR ACTING AS THE HOLDER OF AN ADULT-USE ON-SITE CONSUMPTION LICENSE PURSUANT TO ARTICLE FOUR OF THE CANNABIS LAW. (2) "LICENSEE" SHALL HAVE THE SAME MEANING AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. § 2. This act shall take effect on the same date and in the same manner as section 39 of chapter 92 of the laws of 2021, takes effect, and shall expire January 1, 2025 when upon such date the provisions of this act shall be deemed repealed. PART JJ Section 1. The opening paragraph of subdivision 7 of section 221 of the racing, pari-mutuel wagering and breeding law, as separately amended by chapter 243 and section 1 of part CC of chapter 59 of the laws of 2020, is amended to read as follows: In order to pay the costs of the insurance required by this section and by the workers' compensation law and to carry out its other powers and duties and to pay for any of its liabilities under section four- teen-a of the workers' compensation law, the New York Jockey Injury Compensation Fund, Inc. shall ascertain the total funding necessary and establish the sums that are to be paid by all owners and trainers licensed or required to be licensed under section two hundred twenty of this article, to obtain the total funding amount required annually. In order to provide that any sum required to be paid by an owner or trainer is equitable, the fund shall establish payment schedules that reflect such factors as are appropriate, including where applicable, the geographic location of the racing corporation at which the owner or trainer participates, the duration of such participation, the amount of any purse earnings, the number of horses involved, or such other factors as the fund shall determine to be fair, equitable and in the best inter- ests of racing. In no event shall the amount deducted from an owner's share of purses exceed two percent; provided, however, [for two thousand twenty and two thousand twenty-one] THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-FIVE, the New York Jockey Injury Compensation Fund, Inc. may use up to two million dollars from the account established pursuant to subdivision nine of section two hundred eight of this article to pay the annual costs required by this section and the funds from such account shall not count against the two percent of purses deducted from an owner's share of purses. The amount deducted from an owner's share of A. 9009--B 62 purses shall not exceed one percent after April first, two thousand twenty-four. In the cases of multiple ownerships and limited racing appearances, the fund shall equitably adjust the sum required. § 2. Paragraph (a) of subdivision 9 of section 208 of the racing, pari-mutuel wagering and breeding law, as amended by section 2 of part CC of chapter 59 of the laws of 2020, is amended to read as follows: (a) The franchised corporation shall maintain a separate account for all funds held on deposit in trust by the corporation for individual horsemen's accounts. Purse funds shall be paid by the corporation as required to meet its purse payment obligations. Funds held in horsemen's accounts shall only be released or applied as requested and directed by the individual horseman. [For two thousand twenty and two thousand twen- ty-one] THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-FIVE the New York Jockey Injury Compensation Fund, Inc. may use up to two million dollars from the account established pursuant to this subdivision to pay the annual costs required by section two hundred twenty-one of this article. § 3. This act shall take effect immediately. PART KK Section 1. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as amended by section 2 of part HH of chapter 59 of the laws of 2021, is amended to read as follows: (1) The aggregate amount of tax credits allowed under this section, subdivision forty-seven of section two hundred ten-B and subsection (u) of section six hundred six of this chapter in any calendar year shall be [eight] THIRTEEN million dollars. Such aggregate amount of credits shall be allocated by the department of economic development among taxpayers in order of priority based upon the date of filing an application for allocation of musical and theatrical production credit with such depart- ment. If the total amount of allocated credits applied for in any particular year exceeds the aggregate amount of tax credits allowed for such year under this section, such excess shall be treated as having been applied for on the first day of the subsequent year. § 2. This act shall take effect immediately, provided, however, that the amendments to section 24-a of the tax law made by section one of this act shall not affect the expiration and repeal of such section and shall be deemed to expire and repeal therewith. PART LL Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 47 to read as follows: (47) THE RECEIPTS FROM THE FIRST THIRTY-FIVE THOUSAND DOLLARS OF THE RETAIL SALE OR LEASE OF A NEW OR USED BATTERY, ELECTRIC, OR PLUG-IN HYBRID ELECTRIC VEHICLE. FOR PURPOSES OF THIS PARAGRAPH THE TERM "BATTERY, ELECTRIC, OR PLUG-IN HYBRID ELECTRIC VEHICLE" MEANS A MOTOR VEHICLE, AS DEFINED IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW, THAT: (I) HAS FOUR WHEELS; (II) WAS MANUFACTURED FOR USE PRIMARILY ON PUBLIC STREETS, ROADS AND HIGHWAYS; (III) THE POWERTRAIN OF WHICH HAS NOT BEEN MODIFIED FROM THE ORIGINAL MANUFACTURER'S SPECIFICATIONS; (IV) IS RATED AT NOT MORE THAN EIGHT THOUSAND FIVE HUNDRED POUNDS GROSS VEHICLE WEIGHT; A. 9009--B 63 (V) HAS A MAXIMUM SPEED CAPABILITY OF AT LEAST FIFTY-FIVE MILES PER HOUR; AND (VI) IS PROPELLED AT LEAST IN PART BY AN ELECTRONIC MOTOR AND ASSOCI- ATED POWER ELECTRONICS WHICH PROVIDE ACCELERATION TORQUE TO THE DRIVE WHEELS SOMETIME DURING NORMAL VEHICLE OPERATION, AND THAT DRAWS ELEC- TRICITY FROM A BATTERY THAT: (A) HAS A CAPACITY OF NOT LESS THAN FOUR KILOWATT HOURS; AND (B) IS CAPABLE OF BEING RECHARGED FROM AN EXTERNAL SOURCE OF ELECTRIC- ITY. § 2. Section 1160 of the tax law is amended by adding a new subdivi- sion (d) to read as follows: (D) THE NEW OR USED BATTERY, ELECTRIC, OR PLUG-IN HYBRID ELECTRIC VEHICLES EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-SEVEN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER SHALL NOT APPLY TO OR LIMIT THE IMPOSITION OF THE TAX IMPOSED PURSUANT TO THIS ARTICLE. § 3. Subparagraph (ii) of paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 5 of part J of chapter 59 of the laws of 2021, is amended to read as follows: (ii) Any local law, ordinance or resolution enacted by any city, coun- ty or school district, imposing the taxes authorized by this subdivi- sion, shall omit the residential solar energy systems equipment and electricity exemption provided for in subdivision (ee), the commercial solar energy systems equipment and electricity exemption provided for in subdivision (ii), the commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption provided for in subdivision (kk) and the clothing and footwear exemption provided for in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, AND THE BATTERY, ELECTRIC, OR PLUG-IN HYBRID ELECTRIC VEHICLE EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-SEVEN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER unless such city, county or school district elects otherwise as to such residential solar energy systems equipment and electricity exemption, such commercial solar energy systems equipment and electricity exemption, commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption or such clothing and footwear exemption OR SUCH BATTERY, ELECTRIC, OR PLUG-IN HYBRID ELECTRIC VEHICLE EXEMPTION PROVIDED FOR IN PARAGRAPH FORTY-SEVEN OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER. § 4. This act shall take effect on the first day of a sales tax quar- terly period, as described in subdivision (b) of section 1136 of the tax law, next succeeding the date on which it shall have become a law and shall apply to sales made on or after such date; provided, however, this act shall expire and be deemed repealed April 1, 2027. PART MM Section 1. Short title. This act shall be known and may be cited as the "savings accounts for a variable economy (SAVE) for small businesses act". § 2. The tax law is amended by adding a new section 45 to read as follows: § 45. SMALL BUSINESS SAVINGS ACCOUNTS. (A) GENERAL. (1) THE COMMIS- SIONER SHALL ESTABLISH A PROGRAM TO ADMINISTER SMALL BUSINESS SAVINGS ACCOUNTS UNDER THIS SECTION. (2) THE COMMISSIONER SHALL ESTABLISH MINIMUM STANDARDS FOR SMALL BUSI- NESS SAVINGS ACCOUNTS AND SHALL ESTABLISH ACCOUNTS, OR ENTER INTO AGREE- A. 9009--B 64 MENTS THAT MEET THESE STANDARDS TO ADMINISTER SUCH ACCOUNTS. IN ESTAB- LISHING SUCH STANDARDS AND MAKING SUCH AGREEMENTS THE COMMISSIONER SHALL, TO THE EXTENT PRACTICABLE, SEEK TO MINIMIZE FEES, MINIMIZE RISK OF LOSS OF PRINCIPAL, AND ENSURE A RANGE OF INVESTMENT RISK OPTIONS AVAILABLE TO ACCOUNT BENEFICIARIES. ANY ELIGIBLE SMALL BUSINESS MAY ESTABLISH A SMALL BUSINESS SAVINGS ACCOUNT WITH RESPECT TO SUCH BUSINESS UNDER TERMS WHICH MEET THE REQUIREMENTS OF THIS SECTION. (B) DEFINITION. FOR THE PURPOSES OF THIS SECTION, THE TERM "SMALL BUSINESS SAVINGS ACCOUNT" MEANS A TAX PREFERRED SAVINGS ACCOUNT WHICH IS DESIGNATED AT THE TIME OF ESTABLISHMENT OF THE PLAN AS A SMALL BUSINESS SAVINGS ACCOUNT. SUCH DESIGNATION SHALL BE MADE IN SUCH MANNER AS THE COMMISSIONER MAY BY REGULATION PRESCRIBE. (C) CONTRIBUTIONS. (1) THERE SHALL BE ALLOWED AS A DEDUCTION AN AMOUNT EQUAL TO THE CONTRIBUTIONS TO A SMALL BUSINESS SAVINGS ACCOUNT FOR THE TAXABLE YEAR. (2) THE AGGREGATE AMOUNT OF CONTRIBUTIONS FOR ANY TAXABLE YEAR TO ALL SMALL BUSINESS SAVINGS ACCOUNTS MAINTAINED FOR THE BENEFIT OF AN ELIGI- BLE SMALL BUSINESS SHALL NOT EXCEED AN AMOUNT EQUAL TO TEN PERCENT OF THE ENTIRE NET INCOME OF GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS FOR ARTICLE NINE-A TAXPAYERS AND TEN PERCENT OF THE NEW YORK SOURCE GROSS INCOME OF GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS FOR A LIMITED LIABILITY COMPANY, PARTNER- SHIP, OR NEW YORK S CORPORATION. (D) DISTRIBUTIONS. (1) ANY QUALIFIED DISTRIBUTION FROM A SMALL BUSI- NESS SAVINGS ACCOUNT SHALL NOT BE INCLUDIBLE IN GROSS INCOME. (2) ANY AMOUNTS DISTRIBUTED OUT OF A SMALL BUSINESS SAVINGS ACCOUNT THAT ARE NOT QUALIFIED DISTRIBUTIONS SHALL BE INCLUDED IN GROSS INCOME FOR THE TAXABLE YEAR OF THE DISTRIBUTION. (3) FOR PURPOSES OF THIS SECTION: (A) THE TERM "QUALIFIED DISTRIBUTION" MEANS ANY AMOUNT: (I) DISTRIBUTED FROM A SMALL BUSINESS SAVINGS ACCOUNT DURING A SPECI- FIED PERIOD OF ECONOMIC HARDSHIP; AND (II) THE DISTRIBUTION OF WHICH IS CERTIFIED BY THE TAXPAYER AS PART OF A PLAN WHICH PROVIDES FOR THE REINVESTMENT OF SUCH DISTRIBUTION FOR THE FUNDING OF WORKER HIRING OR FINANCIAL STABILIZATION FOR THE PURPOSES OF JOB RETENTION OR CREATION. (B) THE TERM "SPECIFIED PERIOD OF ECONOMIC HARDSHIP" MEANS: (I) ANY ONE-YEAR PERIOD BEGINNING IMMEDIATELY AFTER THE END OF ANY TWO CONSECUTIVE QUARTERS DURING WHICH THE ANNUAL RATE OF REAL GROSS DOMESTIC PRODUCT (AS DETERMINED BY THE BUREAU OF ECONOMIC ANALYSIS OF THE DEPART- MENT OF COMMERCE) DECREASES, OR (II) ANY PERIOD, IN NO EVENT SHORTER THAN ONE YEAR, SPECIFIED BY THE COMMISSIONER FOR PURPOSES OF THIS SECTION. (C) THE COMMISSIONER MAY SPECIFY A PERIOD UNDER CLAUSE (II) OF SUBPAR- AGRAPH (B) OF THIS PARAGRAPH WITH RESPECT TO A SPECIFIED AREA IN THE CASE OF AN AREA DETERMINED BY THE GOVERNOR TO WARRANT ASSISTANCE FROM THE FEDERAL GOVERNMENT UNDER THE ROBERT T. STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT. (D) THE COMMISSIONER SHALL, FOR EACH SPECIFIED PERIOD OF ECONOMIC HARDSHIP ESTABLISH A DISTRIBUTION LIMITATION FOR QUALIFIED DISTRIBUTIONS FROM ELIGIBLE SMALL BUSINESS ACCOUNTS WITH RESPECT TO SUCH PERIOD. THE AGGREGATE QUALIFIED DISTRIBUTIONS FOR ANY SUCH PERIOD FROM ALL ACCOUNTS WITH RESPECT TO AN ELIGIBLE SMALL BUSINESS SHALL NOT EXCEED SUCH LIMITA- TION. A. 9009--B 65 (E) ANY DISTRIBUTION NOT USED IN THE MANNER CERTIFIED UNDER SUBPARA- GRAPH (A) OF THIS PARAGRAPH SHALL BE TREATED AS A DISTRIBUTION OTHER THAN A QUALIFIED DISTRIBUTION IN THE TAXABLE YEAR OF SUCH DISTRIBUTION. (F) ANY AMOUNT CONTRIBUTED TO A SMALL BUSINESS SAVINGS ACCOUNT (AND ANY EARNINGS ATTRIBUTABLE THERETO), ONCE DISTRIBUTED, SHALL NOT BE TREATED AS A QUALIFIED DISTRIBUTION UNLESS SUCH DISTRIBUTION IS MADE NOT LATER THAN EIGHT YEARS AFTER THE DATE OF SUCH CONTRIBUTION. FOR PURPOSES OF THIS SUBPARAGRAPH, AMOUNTS (AND THE EARNINGS ATTRIBUTABLE THERETO) SHALL BE TREATED AS DISTRIBUTED ON A FIRST-IN FIRST-OUT BASIS. (E) ELIGIBLE SMALL BUSINESS. FOR PURPOSES OF THIS SECTION: (1) THE TERM "ELIGIBLE SMALL BUSINESS" MEANS, WITH RESPECT TO ANY CALENDAR YEAR, ANY PERSON IF THE ANNUAL AVERAGE NUMBER OF FULL-TIME EMPLOYEES EMPLOYED BY SUCH PERSON DURING THE PRECEDING CALENDAR YEAR WAS TWENTY-FIVE OR FEWER AND SUCH PERSON HAS AN ANNUAL NET INCOME OF LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS. FOR PURPOSES OF THIS PARAGRAPH, A PRECEDING CALENDAR YEAR MAY BE TAKEN INTO ACCOUNT ONLY IF THE PERSON WAS IN EXISTENCE THROUGHOUT THE YEAR. (2)(A) THE TERM "FULL-TIME EMPLOYEE" MEANS, WITH RESPECT TO ANY YEAR, AN EMPLOYEE WHO IS EMPLOYED ON AVERAGE AT LEAST FORTY HOURS OF SERVICE PER WEEK. (B) THE COMMISSIONER SHALL PRESCRIBE SUCH REGULATIONS, RULES, AND GUIDANCE AS MAY BE NECESSARY TO DETERMINE THE HOURS OF SERVICE OF AN EMPLOYEE, INCLUDING RULES FOR THE APPLICATION OF THIS SUBDIVISION TO EMPLOYEES WHO ARE NOT COMPENSATED ON AN HOURLY BASIS. (F) EFFECT OF PLEDGING ACCOUNT AS SECURITY. IF, DURING ANY TAXABLE YEAR OF THE ELIGIBLE SMALL BUSINESS FOR WHOSE BENEFIT AN ACCOUNT IS ESTABLISHED, THE ACCOUNT OR ANY PORTION THEREOF IS PLEDGED AS SECURITY FOR A LOAN, THE PORTION SO PLEDGED SHALL BE TREATED AS DISTRIBUTED IN A DISTRIBUTION OTHER THAN A QUALIFIED DISTRIBUTION. (G) ANNUAL REPORT. THE COMMISSIONER SHALL PREPARE AND DELIVER AN ANNU- AL REPORT ON THE EFFICACY OF SMALL BUSINESS SAVINGS ACCOUNTS TO THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, AN EVALUATION AS TO WHETHER SMALL BUSINESS SAVINGS ACCOUNTS CONTRIBUTE TO FINANCIAL STABILIZATION OF THE SMALL BUSINESS DURING TIMES OF ECONOMIC HARDSHIP, JOB RETENTION OR CREATION. § 3. Section 209 of the tax law is amended by adding a new subdivision 13 to read as follows: 13. FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, ANY ELIGIBLE SMALL BUSINESS, AS SUCH TERM IS DEFINED PURSUANT TO SECTION FORTY-FIVE OF THIS CHAPTER, SHALL BE EXEMPT FROM ALL TAXES IMPOSED PURSUANT TO THIS ARTICLE FOR ANY CONTRIBUTION TO AND QUALIFIED DISTRIBUTION FROM A SMALL BUSINESS SAVINGS ACCOUNT ESTAB- LISHED PURSUANT TO SECTION FORTY-FIVE OF THIS CHAPTER, SUBJECT TO THE LIMITS SET FORTH IN SUCH SECTION. IF A TAXPAYER FILES FOR AND RECEIVES AN EXEMPTION FROM THE TAX IMPOSED UNDER THIS SECTION PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION AND THE FUNDS WITHDRAWN, OR ANY PORTION THEREOF, ARE NOT EXPENDED FOR A QUALIFYING PURPOSE AS SET FORTH IN SECTION FORTY-FIVE OF THIS CHAPTER, THEN THE AMOUNT OF SUCH EXEMPTION CLAIMED BY THE TAXPAYER SHALL BE ADDED BACK TO TAX IN THE NEXT SUCCEED- ING TAXABLE YEAR OR IN THE YEAR IN WHICH THE EXEMPTION IS DISALLOWED. § 4. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 46 to read as follows: (46) ANY QUALIFIED CONTRIBUTION TO AND ANY QUALIFIED DISTRIBUTION FROM A SMALL BUSINESS SAVINGS ACCOUNT ESTABLISHED PURSUANT TO SECTION FORTY- FIVE OF THIS CHAPTER. IF A TAXPAYER FILES FOR AND RECEIVES AN EXEMPTION A. 9009--B 66 FROM THE TAX IMPOSED UNDER THIS SECTION PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH AND ARE NOT A QUALIFYING CONTRIBUTION OR DISTRIBUTION AS SET FORTH IN SECTION FORTY-FIVE OF THIS CHAPTER, THEN THE AMOUNT OF ANY SUCH EXEMPTION CLAIMED BY THE TAXPAYER SHALL BE ADDED BACK TO TAX IN THE NEXT SUCCEEDING TAXABLE YEAR. § 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2022. PART NN Section 1. Section 606 of the tax law is amended by adding a new subsection (g-3) to read as follows: (G-3) GEOTHERMAL ENERGY SYSTEMS CREDIT. (1) GENERAL. AN INDIVIDUAL TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTI- CLE EQUAL TO TWENTY-FIVE PERCENT OF QUALIFIED GEOTHERMAL ENERGY SYSTEM EXPENDITURES, EXCEPT AS PROVIDED IN SUBPARAGRAPH (D) OF PARAGRAPH TWO OF THIS SUBSECTION. THIS CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS FOR A QUALIFIED GEOTHERMAL ENERGY SYSTEM PLACED IN SERVICE ON OR AFTER SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE. (2) QUALIFIED GEOTHERMAL ENERGY SYSTEMS EXPENDITURES. (A) THE TERM "QUALIFIED GEOTHERMAL ENERGY SYSTEM EXPENDITURES" MEANS EXPENDITURES FOR: (I) THE PURCHASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT WHICH IS INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) WHICH IS USED BY THE TAXPAYER AS HIS OR HER PRIN- CIPAL RESIDENCE AT THE TIME THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE; (II) THE LEASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT UNDER A WRITTEN AGREEMENT THAT SPANS AT LEAST TEN YEARS WHERE SUCH EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER IS INSTALLED IN CONNECTION WITH RESIDEN- TIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) WHICH IS USED BY THE TAXPAYER AS HIS OR HER PRINCIPAL RESIDENCE AT THE TIME THE GEOTH- ERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE; OR (III) THE PURCHASE OF POWER UNDER A WRITTEN AGREEMENT THAT SPANS AT LEAST TEN YEARS WHEREUNDER THE POWER PURCHASED IS GENERATED BY GEOTHER- MAL ENERGY SYSTEM EQUIPMENT OWNED BY A PERSON OTHER THAN THE TAXPAYER WHICH IS INSTALLED IN CONNECTION WITH RESIDENTIAL PROPERTY WHICH IS (I) LOCATED IN THIS STATE AND (II) USED BY THE TAXPAYER AS HIS OR HER PRIN- CIPAL RESIDENCE AT THE TIME THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE. (B) SUCH QUALIFIED EXPENDITURES SHALL INCLUDE EXPENDITURES FOR MATERI- ALS, LABOR COSTS PROPERLY ALLOCABLE TO ON-SITE PREPARATION, ASSEMBLY AND ORIGINAL INSTALLATION, ARCHITECTURAL AND ENGINEERING SERVICES, AND DESIGNS AND PLANS DIRECTLY RELATED TO THE CONSTRUCTION OR INSTALLATION OF THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT. (C) SUCH QUALIFIED EXPENDITURES FOR THE PURCHASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT SHALL NOT INCLUDE INTEREST OR OTHER FINANCE CHARGES. (D) SUCH QUALIFIED EXPENDITURES FOR THE LEASE OF GEOTHERMAL ENERGY SYSTEM EQUIPMENT OR THE PURCHASE OF POWER UNDER AN AGREEMENT DESCRIBED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL INCLUDE AN AMOUNT EQUAL TO ALL PAYMENTS MADE DURING THE TAXABLE YEAR UNDER SUCH AGREEMENT. PROVIDED, HOWEVER, SUCH CREDITS SHALL ONLY BE ALLOWED FOR FOURTEEN YEARS AFTER THE FIRST TAXABLE YEAR IN WHICH SUCH CREDIT IS ALLOWED. PROVIDED FURTHER, HOWEVER, THE TWENTY-FIVE PERCENT LIMITATION IN PARAGRAPH ONE OF THIS SUBSECTION SHALL ONLY APPLY TO THE TOTAL AGGREGATE AMOUNT OF ALL PAYMENTS TO BE MADE PURSUANT TO AN AGREE- A. 9009--B 67 MENT REFERENCED IN CLAUSE (II) OR (III) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, AND SHALL NOT APPLY TO INDIVIDUAL PAYMENTS MADE DURING A TAXABLE YEAR UNDER SUCH AGREEMENT EXCEPT TO THE EXTENT SUCH LIMITATION ON AN AGGREGATE BASIS HAS BEEN REACHED. (3) GEOTHERMAL ENERGY SYSTEM EQUIPMENT. THE TERM "GEOTHERMAL ENERGY SYSTEM EQUIPMENT" SHALL MEAN A SYSTEM WHOSE ORIGINAL USE BEGINS WITH THE TAXPAYER; WHICH MEETS THE ELIGIBILITY CRITERIA, IF ANY, PRESCRIBED BY THE DEPARTMENT; AND WHICH IS A GROUND COUPLED SOLAR THERMAL SYSTEM THAT UTILIZES THE SOLAR THERMAL ENERGY STORED IN THE GROUND OR IN BODIES OF WATER TO PRODUCE HEAT, AND WHICH IS COMMONLY KNOWN AS OR REFERRED TO AS A GROUND SOURCE HEAT PUMP SYSTEM. (4) MULTIPLE TAXPAYERS. WHERE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PURCHASED AND INSTALLED IN A PRINCIPAL RESIDENCE SHARED BY TWO OR MORE TAXPAYERS, THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR EACH SUCH TAXPAYER SHALL BE PRORATED ACCORDING TO THE PERCENTAGE OF THE TOTAL EXPENDITURE FOR SUCH GEOTHERMAL ENERGY SYSTEM EQUIPMENT CONTRIB- UTED BY EACH TAXPAYER. (5) PROPORTIONATE SHARE. WHERE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PURCHASED AND INSTALLED BY A CONDOMINIUM MANAGEMENT ASSOCIATION OR A COOPERATIVE HOUSING CORPORATION, A TAXPAYER WHO IS A MEMBER OF THE CONDOMINIUM MANAGEMENT ASSOCIATION OR WHO IS A TENANT-STOCKHOLDER IN THE COOPERATIVE HOUSING CORPORATION MAY FOR THE PURPOSE OF THIS SUBSECTION CLAIM A PROPORTIONATE SHARE OF THE TOTAL EXPENSE AS THE EXPENDITURE FOR THE PURPOSES OF THE CREDIT ATTRIBUTABLE TO HIS PRINCIPAL RESIDENCE. (6) GRANTS. FOR PURPOSES OF DETERMINING THE AMOUNT OF THE EXPENDITURE INCURRED IN PURCHASING AND INSTALLING GEOTHERMAL ENERGY SYSTEM EQUIP- MENT, THE AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY THE TAXPAYER, WHICH WAS USED FOR THE PURCHASE AND/OR INSTALLATION OF SUCH EQUIPMENT AND WHICH WAS NOT INCLUDED IN THE FEDERAL GROSS INCOME OF THE TAXPAYER, SHALL NOT BE INCLUDED IN THE AMOUNT OF SUCH EXPENDITURES. (7) WHEN CREDIT ALLOWED. THE CREDIT PROVIDED FOR HEREIN SHALL BE ALLOWED WITH RESPECT TO THE TAXABLE YEAR, COMMENCING AFTER TWO THOUSAND TWENTY-TWO, IN WHICH THE GEOTHERMAL ENERGY SYSTEM EQUIPMENT IS PLACED IN SERVICE. (8) CARRYOVER OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE CARRIED OVER TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. § 2. This act shall take effect immediately and shall apply to taxable years commencing on and after January 1, 2022. PART OO Section 1. Paragraph (a) of subdivision 4 of section 189 of the state finance law, as amended by section 8 of part A of chapter 56 of the laws of 2013, is amended to read as follows: (a) This section shall apply to claims, records, [or] statements, AND OBLIGATIONS made under the tax law only if (i) the net income or sales of the person against whom the action is brought equals or exceeds one million dollars for any taxable year subject to any action brought pursuant to this article; AND (ii) the damages pleaded in such action exceed three hundred [and] fifty thousand dollars[; and (iii) the person is alleged to have violated paragraph (a), (b), (c), (d), (e), (f) or (g) of subdivision one of this section; provided, however, that nothing A. 9009--B 68 in this subparagraph shall be deemed to modify or restrict the applica- tion of such paragraphs to any act alleged that relates to a violation of the tax law]. § 2. This act shall take effect immediately and shall apply to all false claims, records, statements and obligations concealed, avoided or decreased on, prior to, or after such effective date. PART PP Section 1. Subparagraph (B) of paragraph 1 of subsection (a) of section 1115 of the tax law, as amended by section 1 of part SS of chap- ter 59 of the laws of 2021, is amended to read as follows: (B) Until May thirty first, two thousand [twenty-two] TWENTY-FIVE, the food and drink excluded from the exemption provided by clauses (i), (ii) and (iii) of subparagraph (A) of this paragraph, and bottled water, shall be exempt under this subparagraph when sold for [one dollar] TWO DOLLARS and fifty cents or less through any vending machine that accepts coin or currency only or when sold for two dollars AND FIFTY CENTS or less through any vending machine that accepts any form of payment other than coin or currency, whether or not it also accepts coin or currency. § 2. This act shall take effect immediately. PART QQ Section 1. Paragraph (e) of subdivision 1 of section 536 of the real property tax law, as amended by section 4 of part CC of chapter 58 of the laws of 2018, is amended to read as follows: (e) Lands owned by the state, within the core preservation area of the Central Pine Barrens area as described and bounded by subdivision eleven of section 57-0107 of the environmental conservation law, situate in the following school districts: County School District Town Suffolk Rocky Point Union Free Brookhaven school district [Eastport Union Free school] Brookhaven [district] EASTPORT-SOUTH Southampton MANOR CENTRAL SCHOOL DISTRICT Longwood Central school Brookhaven district Riverhead Central school Brookhaven district Riverhead Southampton Hampton Bays Union Free Southampton school district Shoreham-Wading River Brookhaven Central school Riverhead district § 2. This act shall take effect immediately. PART RR A. 9009--B 69 Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of section 425 of the real property tax law, as amended by section 1 of part B of chapter 59 of the laws of 2018, is amended to read as follows: (ii) The term "income" as used herein shall mean the "adjusted gross income" for federal income tax purposes as reported on the applicant's federal or state income tax return for the applicable income tax year, subject to any subsequent amendments or revisions, reduced by distrib- utions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retire- ment annuity, AND FOR OTHER PENSIONS AND ANNUITIES, AS SUCH TERM IS DEFINED IN PARAGRAPH THREE-A OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THE TAX LAW, RECEIVED BY AN INDIVIDUAL WHO HAS ATTAINED THE AGE OF FIFTY-NINE AND ONE-HALF YEARS, BUT NOT IN EXCESS OF TWENTY THOU- SAND DOLLARS; provided that if no such return was filed for the applica- ble income tax year, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed. Provided further, that effective with exemption applications for final assessment rolls to be completed in two thousand nineteen, where an income-eligi- bility determination is wholly or partly based upon the income of one or more individuals who did not file a return for the applicable income tax year, then in order for the application to be considered complete, each such individual must file a statement with the department showing the source or sources of his or her income for that income tax year, and the amount or amounts thereof, that would have been reported on such a return if one had been filed. Such statement shall be filed at such time, and in such form and manner, as may be prescribed by the depart- ment, and shall be subject to the secrecy provisions of the tax law to the same extent that a personal income tax return would be. The depart- ment shall make such forms and instructions available for the filing of such statements. The local assessor shall upon the request of a taxpayer assist such taxpayer in the filing of the statement with the department. § 2. Subparagraph (B) of paragraph 1 of subsection (eee) of section 606 of the tax law, as amended by section 10 of part B of chapter 59 of the laws of 2018, is amended to read as follows: (B) "Affiliated income" shall mean for purposes of the basic STAR credit, the combined income of all of the owners of the parcel who resided primarily thereon as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date, and for purposes of the enhanced STAR credit, the combined income of all of the owners of the parcel as of December thirty-first of the taxable year, and of any owners' spouses residing primarily thereon as of such date; provided that for both purposes the income to be so combined shall be the "adjusted gross income" for the taxable year as reported for federal income tax purposes, or that would be reported as adjusted gross income if a federal income tax return were required to be filed, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retirement annuity, AND FOR OTHER PENSIONS AND ANNUI- TIES, AS SUCH TERM IS DEFINED IN PARAGRAPH THREE-A OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE, RECEIVED BY AN INDIVIDUAL WHO HAS ATTAINED THE AGE OF FIFTY-NINE AND ONE-HALF YEARS, NOT IN EXCESS OF TWENTY THOUSAND DOLLARS. For taxable years beginning on and after January first, two thousand nineteen, where an income-eligibility deter- mination is wholly or partly based upon the income of one or more indi- viduals who did not file a return pursuant to section six hundred fifty-one of this article for the applicable income tax year, then in A. 9009--B 70 order to be eligible for the credit authorized by this subsection, each such individual must file a statement with the department showing the source or sources of his or her income for that income tax year, and the amount or amounts thereof, that would have been reported on such a return if one had been filed. Such statement shall be filed at such time, and in such form and manner, as may be prescribed by the depart- ment, and shall be subject to the provisions of section six hundred ninety-seven of this article to the same extent that a return would be. The department shall make such forms and instructions available for the filing of such statements. The local assessor shall upon the request of a taxpayer assist such taxpayer in the filing of the statement with the department. Provided further, that if the qualified taxpayer was an owner of the property during the taxable year but did not own it on December thirty-first of the taxable year, then the determination as to whether the income of an individual should be included in "affiliated income" shall be based upon the ownership and/or residency status of that individual as of the first day of the month during which the quali- fied taxpayer ceased to be an owner of the property, rather than as of December thirty-first of the taxable year. § 3. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law. PART SS Section 1. Article 4 of the real property tax law is amended by adding a new title 6 to read as follows: TITLE 6 CHILDCARE CENTER TAX ABATEMENT FOR CERTAIN PROPERTIES IN A CITY HAVING A POPULATION OF ONE MILLION OR MORE SECTION 499-AAAAA. DEFINITIONS. 499-BBBBB. REAL PROPERTY TAX ABATEMENT. 499-CCCCC. APPLICATION FOR TAX ABATEMENT. 499-DDDDD. CONTINUING REQUIREMENTS. 499-EEEEE. REVOCATION OF TAX ABATEMENT. 499-FFFFF. ENFORCEMENT AND ADMINISTRATION. § 499-AAAAA. DEFINITIONS. WHEN USED IN THIS TITLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "ABATEMENT PERIOD" MEANS THE TAX YEAR OR TAX YEARS IN WHICH THE ABATEMENT IS APPLIED BY THE DEPARTMENT OF FINANCE TO THE REAL PROPERTY TAX LIABILITY OF AN ELIGIBLE BUILDING, PROVIDED THAT SUCH ABATEMENT SHALL NOT BE APPLIED TO THE REAL PROPERTY TAX LIABILITY OF SUCH BUILDING DURING MORE THAN FIVE TAX YEARS. 2. "APPLICANT" MEANS AN OWNER WHO FILES AN APPLICATION FOR TAX ABATE- MENT. 3. "APPLICATION FOR TAX ABATEMENT" MEANS AN APPLICATION FOR A CHILD- CARE CENTER TAX ABATEMENT PURSUANT TO SECTION FOUR HUNDRED NINETY-NINE- CCCCC OF THIS TITLE. 4. "CHILDCARE CENTER" MEANS A CHILD CARE PROGRAM FOR WHICH A PERMIT TO OPERATE SUCH PROGRAM HAS BEEN ISSUED BY THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE PURSUANT TO THE HEALTH CODE OF THE CITY. 5. "CHILDCARE DESERT" MEANS A CENSUS TRACT IN A CITY HAVING A POPU- LATION OF ONE MILLION OR MORE WHERE, AT THE TIME OF AN APPLICATION FOR TAX ABATEMENT, THERE ARE THREE OR MORE CHILDREN UNDER FIVE YEARS OF AGE FOR EACH AVAILABLE CHILDCARE SLOT, OR WHERE THERE ARE NO AVAILABLE CHILDCARE SLOTS, AS DETERMINED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES. A. 9009--B 71 6. "CITY" MEANS A CITY WITH A POPULATION OF A MILLION OR MORE. 7. "COST-REASONABLE" MEANS HAVING A COST THAT, IN ITS NATURE AND AMOUNT, DOES NOT EXCEED THAT WHICH WOULD BE INCURRED BY A PRUDENT PERSON UNDER THE CIRCUMSTANCES PREVAILING AT THE TIME THE DECISION WAS MADE TO INCUR SUCH COST. 8. "DEPARTMENT OF FINANCE" MEANS THE DEPARTMENT OF FINANCE OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE. 9. "DEPARTMENT OF HEALTH AND MENTAL HYGIENE" MEANS THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE. 10. "DESIGNATED AGENCY" MEANS AN AGENCY OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE THAT IS DESIGNATED BY THE MAYOR OF SUCH CITY TO EXERCISE THE FUNCTIONS, POWERS AND DUTIES OF A DESIGNATED AGENCY PURSU- ANT TO THIS TITLE. 11. "ELIGIBLE BUILDING" SHALL MEAN A CLASS ONE, CLASS TWO OR CLASS FOUR PROPERTY, AS SUCH CLASSES OF PROPERTY ARE DEFINED IN SUBDIVISION ONE OF SECTION EIGHTEEN HUNDRED TWO OF THIS CHAPTER, LOCATED WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, PROVIDED THAT, FOR ANY SUCH PROPERTY HELD IN THE CONDOMINIUM FORM OF OWNERSHIP, "ELIGIBLE BUILDING" SHALL MEAN A TAX LOT IN SUCH PROPERTY. 12. "OWNER" MEANS THE OWNER OF AN ELIGIBLE BUILDING, OR WITH RESPECT TO AN ELIGIBLE BUILDING HELD IN THE COOPERATIVE FORM OF OWNERSHIP, THE BOARD OF DIRECTORS OF A COOPERATIVE APARTMENT CORPORATION, OR, WITH RESPECT TO AN ELIGIBLE BUILDING HELD IN THE CONDOMINIUM FORM OF OWNER- SHIP, AN OWNER OF A TAX LOT IN SUCH BUILDING OR THE BOARD OF MANAGERS OF SUCH BUILDING. 13. "PREMISES" MEANS THE LOCATION OF A CHILDCARE CENTER AS SPECIFIED ON THE PERMIT FOR THE OPERATION OF SUCH CENTER ISSUED BY THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE PURSUANT TO THE HEALTH CODE OF THE CITY. § 499-BBBBB. REAL PROPERTY TAX ABATEMENT. 1. THE DEPARTMENT OF FINANCE SHALL PROVIDE AN ABATEMENT OF REAL PROPERTY TAXES PURSUANT TO THIS SECTION TO AN ELIGIBLE BUILDING IN WHICH CONSTRUCTION, CONVERSION, ALTERATION OR IMPROVEMENT THAT IS COMPLETED ON OR AFTER APRIL FIRST, TWO THOUSAND TWENTY-TWO HAS RESULTED IN THE CREATION OF A PREMISES OF A CHILDCARE CENTER OR IN AN INCREASE IN THE MAXIMUM NUMBER OF CHILDREN ALLOWED ON THE PREMISES OF AN EXISTING CHILDCARE CENTER WHEN SUCH CENTER IS IN OPERATION, AS SUCH NUMBER IS SPECIFIED IN THE PERMIT ISSUED BY THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE TO OPERATE SUCH CENTER. THE DEPARTMENT OF FINANCE MAY ONLY GRANT ONE SUCH ABATEMENT TO ANY ELIGIBLE BUILDING. 2. (A) BEGINNING IN THE TAX YEAR COMMENCING ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-THREE, THE AMOUNT OF SUCH TAX ABATEMENT PROVIDED TO AN ELIGIBLE BUILDING DESCRIBED IN SUBDIVISION ONE OF THIS SECTION SHALL BE EQUAL TO THE COSTS INCURRED IN THE CONSTRUCTION, CONVERSION, ALTER- ATION OR IMPROVEMENT THAT HAS RESULTED IN THE CREATION OF A PREMISES OF A CHILDCARE CENTER OR IN AN INCREASE IN THE MAXIMUM NUMBER OF CHILDREN ALLOWED ON THE PREMISES OF AN EXISTING CHILDCARE CENTER, PROVIDED THAT SUCH COSTS ARE CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED NINETY-NINE-CCCCC OF THIS TITLE, AND PROVIDED FURTHER THAT, DURING THE ABATEMENT PERIOD, THE AMOUNT OF SUCH ABATEMENT SHALL NOT EXCEED THIRTY-FIVE DOLLARS FOR EACH SQUARE FOOT OF THE PREMISES, NOR EXCEED ONE HUNDRED THOUSAND DOLLARS. (I) FOR ANY TAX YEAR, SUCH ABATEMENT SHALL NOT EXCEED SEVEN DOLLARS FOR EACH SQUARE FOOT OF THE PREMISES, PROVIDED THAT SUCH AMOUNT MAY BE REDUCED AS A RESULT OF AN ALLOCATION OF AVAILABLE FUNDS FOR SUCH ABATE- MENT PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION; AND PROVIDED, A. 9009--B 72 FURTHER, THAT THE AMOUNT OF SUCH TAX ABATEMENT IN ANY TAX YEAR SHALL NOT EXCEED THE LESSER OF (A) TWENTY THOUSAND DOLLARS OR (B) THE REAL PROPER- TY TAX LIABILITY FOR THE ELIGIBLE BUILDING IN THE TAX YEAR IN WHICH SUCH TAX ABATEMENT IS TAKEN. (II) TO THE EXTENT THE AMOUNT OF SUCH TAX ABATEMENT EXCEEDS THE LESSER OF (A) TWENTY THOUSAND DOLLARS OR (B) THE REAL PROPERTY TAX LIABILITY OF THE ELIGIBLE BUILDING IN ANY TAX YEAR, ANY AMOUNT OF SUCH TAX ABATEMENT THAT REMAINS MAY BE APPLIED TO THE REAL PROPERTY TAX LIABILITY OF SUCH BUILDING IN SUCCEEDING TAX YEARS, PROVIDED THAT SUCH ABATEMENT MUST BE APPLIED TO THE REAL PROPERTY TAX LIABILITY OF SUCH BUILDING IN ONE OR MORE OF THE FOUR TAX YEARS SUCCEEDING THE TAX YEAR IN WHICH SUCH TAX ABATEMENT WAS INITIALLY TAKEN. (B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, AN ENHANCED TAX ABATEMENT SHALL BE PROVIDED TO AN ELIGIBLE BUILDING DESCRIBED IN SUBDI- VISION ONE OF THIS SECTION THAT IS LOCATED WITHIN A CHILDCARE DESERT AS DESCRIBED IN THIS TITLE AND IN ANY RULES PROMULGATED HEREUNDER. BEGIN- NING IN THE TAX YEAR COMMENCING ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY-THREE, THE AMOUNT OF SUCH ENHANCED TAX ABATEMENT SHALL BE EQUAL TO THE COSTS INCURRED IN THE CONSTRUCTION, CONVERSION, ALTERATION OR IMPROVEMENT THAT HAS RESULTED IN THE CREATION OF A PREMISES OF A CHILD- CARE CENTER OR IN AN INCREASE IN THE MAXIMUM NUMBER OF CHILDREN ALLOWED ON THE PREMISES OF AN EXISTING CHILDCARE CENTER, PROVIDED THAT SUCH COSTS ARE CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED NINETY-NINE-CCCCC OF THIS TITLE, AND PROVIDED FURTHER THAT, DURING THE ABATEMENT PERIOD, THE AMOUNT OF SUCH ABATEMENT SHALL NOT EXCEED SEVENTY-FIVE DOLLARS FOR EACH SQUARE FOOT OF THE PREM- ISES NOR EXCEED TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS. (I) FOR ANY TAX YEAR, SUCH ABATEMENT SHALL NOT EXCEED FIFTEEN DOLLARS FOR EACH SQUARE FOOT OF THE PREMISES, PROVIDED THAT SUCH AMOUNT MAY BE REDUCED AS A RESULT OF AN ALLOCATION OF AVAILABLE FUNDS FOR SUCH ABATE- MENT PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION; AND PROVIDED FURTHER THAT THE AMOUNT OF SUCH ENHANCED TAX ABATEMENT IN ANY TAX YEAR SHALL NOT EXCEED THE LESSER OF (A) FORTY-FIVE THOUSAND DOLLARS OR (B) THE REAL PROPERTY TAX LIABILITY FOR THE ELIGIBLE BUILDING IN THE TAX YEAR IN WHICH SUCH TAX ABATEMENT IS TAKEN. (II) TO THE EXTENT THE AMOUNT OF SUCH ENHANCED TAX ABATEMENT EXCEEDS THE LESSER OF (A) FORTY-FIVE THOUSAND DOLLARS OR THE (B) REAL PROPERTY TAX LIABILITY OF THE ELIGIBLE BUILDING IN ANY TAX YEAR, ANY AMOUNT OF SUCH TAX ABATEMENT THAT REMAINS MAY BE APPLIED TO THE REAL PROPERTY TAX LIABILITY OF SUCH BUILDING IN SUCCEEDING TAX YEARS, PROVIDED THAT SUCH ABATEMENT SHALL BE APPLIED TO THE REAL PROPERTY TAX LIABILITY OF SUCH BUILDING IN ONE OR MORE OF THE FOUR TAX YEARS SUCCEEDING THE TAX YEAR IN WHICH THE TAX ABATEMENT WAS INITIALLY TAKEN. (C) NOTWITHSTANDING PARAGRAPH (A) OR (B) OF THIS SUBDIVISION, THE AGGREGATE AMOUNT OF TAX ABATEMENTS AUTHORIZED PURSUANT TO THIS SECTION FOR ANY TAX YEAR SHALL BE A MAXIMUM OF TWENTY-FIVE MILLION DOLLARS. NO TAX ABATEMENTS SHALL BE AUTHORIZED PURSUANT TO THIS SECTION FOR ANY TAX YEAR COMMENCING ON OR AFTER JULY FIRST, TWO THOUSAND THIRTY. (D) SUCH AGGREGATE AMOUNT OF TAX ABATEMENTS, INCLUDING THE TAX ABATE- MENT DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION AND THE ENHANCED TAX ABATEMENT DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION, SHALL BE ALLO- CATED BY THE DEPARTMENT OF FINANCE ON A PRO RATA BASIS AMONG APPLICANTS WHOSE APPLICATIONS HAVE BEEN APPROVED BY THE DESIGNATED AGENCY. IF SUCH ALLOCATION IS NOT MADE PRIOR TO THE DATE THAT THE REAL PROPERTY TAX BILL, STATEMENT OF ACCOUNT OR OTHER SIMILAR BILL OR STATEMENT IS PREPARED, THE DEPARTMENT OF FINANCE SHALL, AS NECESSARY, AFTER SUCH A. 9009--B 73 ALLOCATION IS MADE, SUBMIT AN AMENDED REAL PROPERTY TAX BILL, STATEMENT OF ACCOUNT OR OTHER SIMILAR BILL OR STATEMENT TO ANY APPLICANT WHOSE ABATEMENT REQUIRES ADJUSTMENT TO REFLECT SUCH ALLOCATION. NOTHING IN THIS PARAGRAPH SHALL BE DEEMED TO AFFECT THE OBLIGATION OF ANY TAXPAYER UNDER APPLICABLE LAW WITH RESPECT TO THE PAYMENT OF ANY INSTALLMENT OF REAL PROPERTY TAX FOR THE FISCAL YEAR AS TO WHICH SUCH ALLOCATION IS MADE, WHICH WAS DUE AND PAYABLE PRIOR TO THE DATE SUCH AMENDED REAL PROPERTY TAX BILLS ARE SENT, AND THE DEPARTMENT OF FINANCE SHALL BE AUTHORIZED TO DETERMINE THE DATE ON WHICH ANY SUCH AMENDED BILLS BE SENT AND THE INSTALLMENTS OF REAL PROPERTY TAX BE REFLECTED THEREIN. (E) NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY ABATEMENT GRANTED TO AN ELIGIBLE BUILDING PURSUANT TO THIS SECTION SHALL BE IN ADDITION TO ANY OTHER ABATEMENT OR EXEMPTION GRANTED TO SUCH BUILDING, PROVIDED THAT ANY ABATEMENT GRANTED UNDER THIS SECTION SHALL BE APPLIED AFTER ANY OTHER ABATEMENT OR EXEMPTION GRANTED TO SUCH BUILDING, AND PROVIDED FURTHER THAT THE APPLICATION OF THIS ABATEMENT AFTER ANY OTHER SUCH EXEMPTION OR ABATEMENT SHALL NOT EXCEED THE REAL PROPERTY TAX LIABILITY DUE ON SUCH ELIGIBLE PROPERTY. 3. SUCH ABATEMENT SHALL COMMENCE ON THE FIRST OF JULY FOLLOWING THE APPROVAL OF AN APPLICATION FOR ABATEMENT BY THE DESIGNATED AGENCY. 4. IF, AS A RESULT OF APPLICATION TO THE TAX COMMISSION OR A COURT ORDER OR ACTION BY THE DEPARTMENT OF FINANCE, THE BILLABLE ASSESSED VALUE OF THE ELIGIBLE BUILDING FOR THE FISCAL YEAR IN WHICH THE TAX ABATEMENT IS TAKEN IS REDUCED AFTER THE ASSESSMENT ROLL BECOMES FINAL, THE DEPARTMENT OF FINANCE SHALL RECALCULATE SUCH ABATEMENT SO THAT THE ABATEMENT GRANTED SHALL NOT EXCEED THE ANNUAL TAX LIABILITY OF SUCH BUILDING AS SO REDUCED. THE AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE INITIAL ABATEMENT GRANTED BY THE DEPARTMENT AND THE ABATEMENT AS SO RECALCULATED SHALL BE DEDUCTED FROM ANY REFUND OTHERWISE PAYABLE OR REMISSION OTHERWISE DUE AS A RESULT OF SUCH REDUCTION IN BILLABLE ASSESSED VALUE. § 499-CCCCC. APPLICATION FOR TAX ABATEMENT. 1. TO OBTAIN A TAX ABATE- MENT AUTHORIZED BY THIS TITLE, AN APPLICATION FOR TAX ABATEMENT SHALL BE FILED WITH A DESIGNATED AGENCY NO LATER THAN THE FIFTEENTH OF MARCH BEFORE THE TAX YEAR, COMMENCING ON THE FIRST OF JULY, FOR WHICH THE TAX ABATEMENT AUTHORIZED BY THIS TITLE IS SOUGHT, PROVIDED, HOWEVER, THAT SUCH APPLICATION FOR TAX ABATEMENT SHALL NOT BE FILED LATER THAN MARCH FIFTEENTH, TWO THOUSAND TWENTY-FIVE. 2. SUCH APPLICATION SHALL CONTAIN THE FOLLOWING: (A) THE NAME, ADDRESS AND ELECTRONIC MAIL ADDRESS OF THE APPLICANT AND THE LOCATION OF THE ELIGIBLE BUILDING. (B) PROOF THAT ALL REQUIRED PERMITS AND OTHER APPROVALS, AS FURTHER DESIGNATED BY RULE, TO CONSTRUCT, CONVERT, ALTER OR IMPROVE THE PREMISES OF THE CHILDCARE CENTER IN THE ELIGIBLE BUILDING DESCRIBED IN SUBDIVI- SION ONE OF SECTION FOUR HUNDRED NINETY-NINE-BBBBB OF THIS TITLE WERE OBTAINED. (C) PROOF THAT THE APPLICANT HAS ENTERED INTO A LEASE OR OTHER AGREE- MENT WITH A PERSON TO OPERATE A CHILDCARE CENTER IN THE ELIGIBLE BUILD- ING DESCRIBED IN SUBDIVISION ONE OF SECTION FOUR HUNDRED NINETY-NINE- BBBBB OF THIS TITLE, OR A COPY OF THE NEW OR AMENDED PERMIT ISSUED TO SUCH CHILDCARE CENTER BY THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE FOR SUCH OPERATION. (D) DETERMINATIONS THAT HAVE BEEN CERTIFIED, IN A FORM PRESCRIBED BY THE DESIGNATED AGENCY, BY AN ENGINEER, ARCHITECT, OR CERTIFIED PUBLIC ACCOUNTANT, LICENSED AND REGISTERED PURSUANT TO THE EDUCATION LAW, OR BY A. 9009--B 74 ANOTHER CERTIFIED OR LICENSED PROFESSIONAL IN THE FIELD OF BUSINESS OR DESIGN, AS FURTHER DESIGNATED BY RULE, AS FOLLOWS: (I) THE AREA, IN SQUARE FEET, OF THE PREMISES OF THE CHILDCARE CENTER IN THE ELIGIBLE BUILDING DESCRIBED IN SUBDIVISION ONE OF SECTION FOUR HUNDRED NINETY-NINE-BBBBB OF THIS TITLE; (II) THE COSTS INCURRED IN THE CONSTRUCTION, CONVERSION, ALTERATION OR IMPROVEMENT THAT HAS RESULTED IN THE CREATION OF A PREMISES OF A CHILD- CARE CENTER IN SUCH BUILDING; OR, FOR CONSTRUCTION, CONVERSION, ALTER- ATION OR IMPROVEMENT RESULTING IN AN INCREASE IN THE MAXIMUM NUMBER OF CHILDREN ALLOWED ON THE PREMISES OF AN EXISTING CHILDCARE CENTER IN SUCH BUILDING, SUCH COSTS THAT WERE NECESSARY TO INCREASE THE MAXIMUM NUMBER OF CHILDREN ALLOWED ON SUCH PREMISES; AND (III) THE REASONABLENESS OF THE COSTS TO CONSTRUCT, CONVERT, ALTER OR IMPROVE THE PREMISES OF THE CHILDCARE CENTER IN THE ELIGIBLE BUILDING DESCRIBED IN SUBDIVISION ONE OF SECTION FOUR HUNDRED NINETY-NINE-BBBBB OF THIS TITLE, WHICH REQUIRES FINDING THAT SUCH COSTS WERE COST-REASONA- BLE AND COMPARABLE TO THE COST OF CONSTRUCTING, CONVERTING, ALTERING OR IMPROVING A PREMISES OF A CHILDCARE CENTER PURSUANT TO THE HEALTH CODE OF THE CITY IN A SIMILAR ELIGIBLE BUILDING. (E) ANY OTHER INFORMATION OR CERTIFICATIONS REQUIRED BY A DESIGNATED AGENCY PURSUANT TO THIS TITLE AND THE RULES PROMULGATED UNDER THIS TITLE. 3. AN APPLICATION FOR TAX ABATEMENT SHALL BE IN ANY FORMAT PRESCRIBED BY A DESIGNATED AGENCY, INCLUDING ELECTRONIC FORM. 4. AN APPLICATION FOR TAX ABATEMENT SHALL BE APPROVED BY A DESIGNATED AGENCY UPON DETERMINING THAT THE APPLICANT HAS SUBMITTED PROOF ACCEPTA- BLE TO SUCH AGENCY THAT THE REQUIREMENTS FOR OBTAINING SUCH TAX ABATE- MENT HAVE BEEN SATISFIED. THE BURDEN OF PROOF SHALL BE ON THE APPLICANT TO SHOW BY CLEAR AND CONVINCING EVIDENCE THAT THE REQUIREMENTS FOR GRANTING SUCH TAX ABATEMENT HAVE BEEN SATISFIED. 5. UPON RECEIPT OF NOTIFICATION FROM A DESIGNATED AGENCY THAT AN APPLICATION FOR TAX ABATEMENT HAS BEEN APPROVED, THE DEPARTMENT OF FINANCE SHALL APPLY SUCH TAX ABATEMENT TO THE REAL PROPERTY TAX LIABIL- ITY OF THE ELIGIBLE BUILDING FOR THE TAX YEAR FOR WHICH THE ABATEMENT WAS SOUGHT, PROVIDED THAT THERE ARE NO OUTSTANDING REAL PROPERTY TAXES, WATER AND SEWER CHARGES, PAYMENTS IN LIEU OF TAXES OR OTHER MUNICIPAL CHARGES WITH RESPECT TO THE ELIGIBLE BUILDING. § 499-DDDDD. CONTINUING REQUIREMENTS. GRANTING OF THE TAX ABATEMENT AUTHORIZED BY THIS TITLE SHALL REQUIRE THAT AN OWNER WHOSE APPLICATION FOR TAX ABATEMENT HAS BEEN APPROVED: 1. COMPLIES WITH ALL APPLICABLE PROVISIONS OF LAW, INCLUDING BUT NOT LIMITED TO, THE LOCAL HEALTH, BUILDING AND FIRE CODES; AND 2. DOES NOT HAVE REAL PROPERTY TAXES, WATER AND SEWER CHARGES, PAYMENTS IN LIEU OF TAXES OR OTHER MUNICIPAL CHARGES WITH RESPECT TO AN ELIGIBLE BUILDING DUE AND OWING DURING THE ABATEMENT PERIOD FOR A PERIOD OF SIX MONTHS OR MORE. § 499-EEEEE. REVOCATION OF TAX ABATEMENT. 1. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE DEPARTMENT OF FINANCE SHALL REVOKE, IN WHOLE OR IN PART, ANY TAX ABATEMENT GRANTED PURSUANT TO THIS TITLE WHENEVER A DESIGNATED AGENCY HAS DETERMINED AND NOTIFIED SUCH DEPARTMENT THAT: (A) THE CHILDCARE CENTER IN THE ELIGIBLE BUILDING OF THE OWNER WHOSE APPLICATION FOR TAX ABATEMENT HAS BEEN APPROVED HAS CEASED OPERATION AS A CHILDCARE CENTER FOR A PERIOD EXCEEDING ONE HUNDRED EIGHTY DAYS OF THE ABATEMENT PERIOD, EXCEPT WHEN SUCH CHILDCARE CENTER CEASES OPERATION DUE TO AN ACT OR EVENT BEYOND THE CONTROL AND WITHOUT ANY FAULT OR NEGLI- A. 9009--B 75 GENCE OF THE CHILDCARE CENTER OR OF THE OWNER OF THE ELIGIBLE BUILDING IN WHICH SUCH CHILDCARE CENTER OPERATES, WHICH SHALL INCLUDE, BUT IS NOT LIMITED TO, FIRE, FLOOD, EARTHQUAKE, STORM OR OTHER NATURAL DISASTER, CIVIL COMMOTION, WAR, TERRORISM, RIOT, AND LABOR DISPUTES NOT BROUGHT ABOUT BY ANY ACT OR OMISSION OF SUCH CHILDCARE CENTER OR SUCH OWNER; (B) AN APPLICATION, CERTIFICATION, REPORT OR OTHER DOCUMENT SUBMITTED BY THE OWNER WHOSE APPLICATION FOR TAX ABATEMENT HAS BEEN APPROVED CONTAINS A FALSE OR MISLEADING STATEMENT AS TO A MATERIAL FACT OR OMITS TO STATE ANY MATERIAL FACT NECESSARY IN ORDER TO MAKE THE STATEMENT THEREIN NOT FALSE OR MISLEADING. 2. THE DEPARTMENT OF FINANCE MAY REVOKE, IN WHOLE OR IN PART, ANY TAX ABATEMENT GRANTED PURSUANT TO THIS TITLE WHENEVER IT HAS DETERMINED THAT AN OWNER WHOSE APPLICATION FOR TAX ABATEMENT HAS BEEN APPROVED HAS OUTSTANDING REAL PROPERTY TAXES, WATER AND SEWER CHARGES, PAYMENTS IN LIEU OF TAXES OR OTHER MUNICIPAL CHARGES THAT HAVE BEEN DUE AND OWING DURING THE ABATEMENT PERIOD FOR A PERIOD OF SIX MONTHS OR MORE. 3. UPON A DETERMINATION BY A DESIGNATED AGENCY, AFTER NOTICE AND AN OPPORTUNITY TO BE HEARD, THAT THE CHILDCARE CENTER IN THE ELIGIBLE BUILDING OF THE OWNER WHOSE APPLICATION FOR TAX ABATEMENT HAS BEEN APPROVED HAS CEASED OPERATION AS A CHILDCARE CENTER FOR A PERIOD EXCEED- ING ONE HUNDRED EIGHTY DAYS OF THE ABATEMENT PERIOD, SUCH AGENCY SHALL NOTIFY THE DEPARTMENT OF FINANCE OF SUCH DETERMINATION NO LATER THAN THE NINETIETH DAY AFTER SUCH DETERMINATION WAS REACHED. 4. AN OWNER WHOSE APPLICATION FOR TAX ABATEMENT HAS BEEN APPROVED, AND FOR WHOM SUCH TAX ABATEMENT HAS BEEN REVOKED DUE TO A FALSE OR MISLEAD- ING STATEMENT, OR AN OMISSION, PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION, SHALL PAY, WITH INTEREST, SUCH PART OF ANY TAX ABATEMENT RECEIVED PURSUANT TO THIS TITLE THAT REPRESENTS THE PERIOD OF NON-COMPLIANCE AS DETERMINED BY THE DESIGNATED AGENCY OR THE DEPARTMENT OF FINANCE, AS THE CASE MAY BE. § 499-FFFFF. ENFORCEMENT AND ADMINISTRATION. 1. THE DEPARTMENT OF FINANCE SHALL HAVE, IN ADDITION TO ANY OTHER FUNCTIONS, POWERS AND DUTIES CONFERRED ON IT BY LAW, THE FOLLOWING FUNCTIONS, POWERS AND DUTIES TO BE EXERCISED IN ACCORDANCE WITH THIS TITLE: (A) TO APPLY THE TAX ABATEMENT AUTHORIZED BY THIS TITLE TO THE REAL PROPERTY TAX LIABILITY OF AN ELIGIBLE BUILDING; (B) TO REVOKE ALL OR PART OF ANY SUCH TAX ABATEMENT; (C) TO PROMULGATE RULES TO CARRY OUT THE PURPOSES OF THIS TITLE, INCLUDING, BUT NOT LIMITED TO, REQUIRING, NOTWITHSTANDING ANY INCONSIST- ENT PROVISION OF LAW, THAT ANY SUBMISSION BE MADE IN ELECTRONIC FORM; AND (D) ANY OTHER FUNCTION, POWER OR DUTY NECESSARILY IMPLIED BY THIS TITLE. 2. A DESIGNATED AGENCY SHALL HAVE, IN ADDITION TO ANY OTHER FUNCTIONS, POWERS AND DUTIES CONFERRED ON IT BY LAW, THE FOLLOWING FUNCTIONS, POWERS AND DUTIES TO BE EXERCISED IN ACCORDANCE WITH THIS TITLE: (A) TO ACCEPT, REVIEW, APPROVE AND DENY APPLICATIONS FOR TAX ABATE- MENT; (B) TO PROMULGATE RULES TO CARRY OUT THE PURPOSES OF THIS TITLE, INCLUDING, BUT NOT LIMITED TO, REQUIRING, NOTWITHSTANDING ANY INCONSIST- ENT PROVISION OF LAW, THAT ANY SUBMISSION BE MADE IN ELECTRONIC FORM; (C) TO MAKE THE DETERMINATIONS PROVIDED FOR IN THIS TITLE; AND (D) ANY OTHER FUNCTION, POWER OR DUTY NECESSARILY IMPLIED BY THIS TITLE. 3. IF A DESIGNATED AGENCY DETERMINES THAT AN ARCHITECT, ENGINEER, CERTIFIED PUBLIC ACCOUNTANT, OR OTHER CERTIFIED OR LICENSED PROFESSIONAL A. 9009--B 76 IN THE FIELD OF BUSINESS OR DESIGN WHOM SUCH AGENCY DESIGNATES BY RULE, IN MAKING ANY CERTIFICATION UNDER THIS TITLE OR ANY RULE PROMULGATED HEREUNDER, ENGAGED IN PROFESSIONAL MISCONDUCT, SUCH AGENCY SHALL SO INFORM THE EDUCATION DEPARTMENT OR OTHER APPROPRIATE CERTIFYING OR LICENSING AUTHORITY. § 2. This act shall take effect immediately, and shall apply to tax years beginning on and after July 1, 2023. PART TT Section 1. Paragraph 1 of subsection (f) of section 1310 of the tax law, as added by section 2 of part V of chapter 60 of the laws of 2004, is amended to read as follows: (1) Notwithstanding any other provision of law to the contrary, any city having a population of one million or more, acting through its local legislative body, is hereby authorized and empowered to adopt and amend local laws granting in any such city, for taxable years beginning after two thousand three, a credit against the city personal income tax equal to five percent of the earned income credit allowed under section thirty-two of the internal revenue code for the same taxable year, AND, FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-ONE, A CREDIT AGAINST THE CITY PERSONAL INCOME TAX EQUAL TO A PERCENTAGE, DETERMINED PURSUANT TO SUBPARAGRAPHS (A) THROUGH (I) OF THIS PARAGRAPH, OF THE EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR. FOR PURPOSES OF THIS PARAGRAPH, "ADJUSTED GROSS INCOME" MEANS NEW YORK ADJUSTED GROSS INCOME AS DETER- MINED PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER. THE PERCENTAGE SHALL BE: (A) THIRTY PERCENT, WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS LESS THAN FIVE THOUSAND DOLLARS; (B) THIRTY PERCENT REDUCED BY THE PRODUCT OF TWO-TENTHS OF A PERCENT- AGE POINT (0.002) AND THE AMOUNT OF THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IN EXCESS OF FORTY-NINE HUNDRED NINETY-NINE DOLLARS, WHERE SUCH TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN FIVE THOUSAND DOLLARS AND LESS THAN SEVENTY-FIVE HUNDRED DOLLARS; (C) TWENTY-FIVE PERCENT, WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN SEVENTY-FIVE HUNDRED DOLLARS AND LESS THAN FIFTEEN THOUSAND DOLLARS; (D) TWENTY-FIVE PERCENT REDUCED BY THE PRODUCT OF TWO-TENTHS OF A PERCENTAGE POINT (0.002) AND THE AMOUNT OF THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IN EXCESS OF FOURTEEN THOUSAND NINE HUNDRED NINETY-NINE DOLLARS, WHERE SUCH TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN FIFTEEN THOUSAND DOLLARS AND LESS THAN SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS; (E) TWENTY PERCENT, WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS AND LESS THAN TWENTY THOUSAND DOLLARS; (F) TWENTY PERCENT REDUCED BY THE PRODUCT OF TWO-TENTHS OF A PERCENT- AGE POINT (0.002) AND THE AMOUNT OF THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IN EXCESS OF NINETEEN THOUSAND NINE HUNDRED NINE- TY-NINE DOLLARS, WHERE SUCH TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN TWENTY THOUSAND DOLLARS AND LESS THAN TWENTY-TWO THOUSAND FIVE HUNDRED DOLLARS; A. 9009--B 77 (G) FIFTEEN PERCENT, WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN TWENTY-TWO THOUSAND FIVE HUNDRED DOLLARS AND LESS THAN FORTY THOUSAND DOLLARS; (H) FIFTEEN PERCENT REDUCED BY THE PRODUCT OF TWO-TENTHS OF A PERCENT- AGE POINT (0.002) AND THE AMOUNT OF THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IN EXCESS OF THIRTY-NINE THOUSAND NINE HUNDRED NINETY-NINE DOLLARS, WHERE SUCH TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN FORTY THOUSAND DOLLARS AND LESS THAN FORTY-TWO THOUSAND FIVE HUNDRED DOLLARS; AND (I) TEN PERCENT WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN FORTY-TWO THOUSAND FIVE HUNDRED DOLLARS. § 2. Paragraph 1 of subdivision (d) of section 11-1706 of the adminis- trative code of the city of New York, as added by local law number 39 for the year 2004, is amended to read as follows: (1) For taxable years beginning after two thousand three, a credit against the city personal income tax shall be allowed, equal to five percent of the earned income credit allowed under section thirty-two of the internal revenue code for the same taxable year, AND, FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-ONE, A CREDIT AGAINST THE CITY PERSONAL INCOME TAX SHALL BE ALLOWED, EQUAL TO A PERCENTAGE DETERMINED PURSUANT TO SUBPARAGRAPHS (A) THROUGH (I) OF THIS PARAGRAPH, OF THE EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR. FOR PURPOSES OF THIS PARAGRAPH, "ADJUSTED GROSS INCOME" MEANS NEW YORK ADJUSTED GROSS INCOME AS DETER- MINED PURSUANT TO ARTICLE TWENTY-TWO OF THE TAX LAW. THE PERCENTAGE SHALL BE: (A) THIRTY PERCENT, WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS LESS THAN FIVE THOUSAND DOLLARS; (B) THIRTY PERCENT REDUCED BY THE PRODUCT OF TWO-TENTHS OF A PERCENT- AGE POINT (0.002) AND THE AMOUNT OF THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IN EXCESS OF FORTY-NINE HUNDRED NINETY-NINE DOLLARS, WHERE SUCH TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN FIVE THOUSAND DOLLARS AND LESS THAN SEVENTY-FIVE HUNDRED DOLLARS; (C) TWENTY-FIVE PERCENT, WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN SEVENTY-FIVE HUNDRED DOLLARS AND LESS THAN FIFTEEN THOUSAND DOLLARS; (D) TWENTY-FIVE PERCENT REDUCED BY THE PRODUCT OF TWO-TENTHS OF A PERCENTAGE POINT (0.002) AND THE AMOUNT OF THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IN EXCESS OF FOURTEEN THOUSAND NINE HUNDRED NINETY-NINE DOLLARS, WHERE SUCH TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN FIFTEEN THOUSAND DOLLARS AND LESS THAN SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS; (E) TWENTY PERCENT, WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS AND LESS THAN TWENTY THOUSAND DOLLARS; (F) TWENTY PERCENT REDUCED BY THE PRODUCT OF TWO-TENTHS OF A PERCENT- AGE POINT (0.002) AND THE AMOUNT OF SUCH TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IN EXCESS OF NINETEEN THOUSAND NINE HUNDRED NINETY-NINE DOLLARS, WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN TWENTY THOUSAND DOLLARS AND LESS THAN TWENTY-TWO THOUSAND FIVE HUNDRED DOLLARS; (G) FIFTEEN PERCENT, WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN TWENTY-TWO THOUSAND FIVE HUNDRED DOLLARS AND LESS THAN FORTY THOUSAND DOLLARS; A. 9009--B 78 (H) FIFTEEN PERCENT REDUCED BY THE PRODUCT OF TWO-TENTHS OF A PERCENT- AGE POINT (0.002) AND THE AMOUNT OF THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IN EXCESS OF THIRTY-NINE THOUSAND NINE HUNDRED NINETY-NINE DOLLARS, WHERE SUCH TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN FORTY THOUSAND DOLLARS AND LESS THAN FORTY-TWO THOUSAND FIVE HUNDRED DOLLARS; AND (I) TEN PERCENT WHERE THE TAXPAYER'S ADJUSTED GROSS INCOME FOR SUCH TAXABLE YEAR IS EQUAL TO OR GREATER THAN FORTY-TWO THOUSAND FIVE HUNDRED DOLLARS. § 3. This act shall take effect immediately, and shall apply to taxa- ble years beginning on and after January 1, 2022. PART UU Section 1. The administrative code of the city of New York is amended by adding a new section 11-144 to read as follows: § 11-144 CHILD CARE CREDIT AGAINST CERTAIN BUSINESS INCOME TAXES. A. DEFINITIONS. FOR PURPOSES OF THIS SECTION: 1. CHILD CARE PROGRAM. THE TERM "CHILD CARE PROGRAM" MEANS A CHILD CARE PROGRAM FOR WHICH A PERMIT TO OPERATE SUCH PROGRAM HAS BEEN ISSUED BY THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE PURSUANT TO ARTICLE FORTY-SEVEN OF THE HEALTH CODE. 2. CHILD CARE RATE. THE TERM "CHILD CARE RATE" MEANS THE WEEKLY CHILD CARE SUBSIDY MARKET RATES, BASED ON THE SIXTY-NINTH PERCENTILE OF THE 2017-18 NEW YORK STATE CHILD CARE MARKET RATE SURVEY, FOR INFANT AND TODDLER CARE PROVIDED BY A PERMITTED DAY CARE CENTER IN COUNTY CLUSTER FIVE, AS REFLECTED IN THE 2019 CHILD CARE MARKET RATE SURVEY REPORT PUBLISHED BY THE NEW YORK STATE OFFICE OF CHILDREN AND FAMILY SERVICES IN COMPLIANCE WITH SECTION 98.45 OF TITLE FORTY-FIVE OF THE CODE OF FEDERAL REGULATIONS, PROVIDED THAT THE DEPARTMENT OF FINANCE MAY, BY RULE, REVISE SUCH RATES BASED ON SUBSEQUENT EDITIONS OF THE CHILD CARE MARKET RATE SURVEY REPORT, AS PUBLISHED BY SUCH OFFICE, OR ANY OTHER SIMILAR REPORT PUBLISHED BY SUCH OFFICE IN COMPLIANCE WITH SUCH SECTION. 3. CHILD CARE SEATS. THE TERM "CHILD CARE SEATS" MEANS THE MAXIMUM NUMBER OF CHILDREN TO BE ALLOWED ON THE PREMISES OF A CHILD CARE PROGRAM AT ANY TIME THAT SUCH PROGRAM IS IN OPERATION AS SPECIFIED ON THE PERMIT ISSUED FOR SUCH PROGRAM BY THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE. 4. CHILD CARE SEATS THAT ARE OCCUPIED. THE TERM "CHILD CARE SEATS THAT ARE OCCUPIED" MEANS, FOR EACH SERVICE YEAR IN WHICH A CHILD CARE PROGRAM IS IN OPERATION, THE AVERAGE DAILY NUMBER OF CHILDREN IN ATTENDANCE ON THE PREMISES OF SUCH CHILD CARE PROGRAM. 5. CREATES CHILD CARE. THE TERM "CREATES CHILD CARE" MEANS THE MAKING AVAILABLE OF CHILD CARE SEATS IN A CHILD CARE PROGRAM BY A TAXPAYER, DIRECTLY OR THROUGH A THIRD PARTY, FOR EMPLOYEES OF SUCH TAXPAYER, WHERE SUCH CHILD CARE PROGRAM WAS NOT AVAILABLE PRIOR TO APRIL FIRST, TWO THOUSAND TWENTY-TWO, PROVIDED THAT THE COSTS IMPOSED ON SUCH EMPLOYEES FOR SUCH CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD CARE RATE. 6. EXPANDS CHILD CARE. THE TERM "EXPANDS CHILD CARE" MEANS THE INCREASE IN THE NUMBER OF CHILD CARE SEATS IN A CHILD CARE PROGRAM MADE AVAILABLE BY A TAXPAYER, DIRECTLY OR THROUGH A THIRD PARTY, FOR EMPLOY- EES OF SUCH TAXPAYER, PROVIDED THAT SUCH INCREASE REQUIRES A NEW OR AMENDED PERMIT ISSUED BY THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE PURSUANT TO ARTICLE FORTY-SEVEN OF THE HEALTH CODE ON OR AFTER APRIL FIRST, TWO THOUSAND TWENTY-TWO, AND, PROVIDED, FURTHER, THAT THE COSTS A. 9009--B 79 IMPOSED ON SUCH EMPLOYEES FOR SUCH CHILD CARE PROGRAM DO NOT EXCEED FORTY PERCENT OF THE CHILD CARE RATE. 7. SERVICE YEAR. THE TERM "SERVICE YEAR" MEANS THE TWELVE-MONTH PERIOD COMMENCING ON OCTOBER FIRST AND ENDING ON SEPTEMBER THIRTIETH IN THE SUBSEQUENT CALENDAR YEAR. B. CREDIT ALLOWED. A TAXPAYER THAT CREATES CHILD CARE OR EXPANDS CHILD CARE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY CHAPTER FIVE, OR BY SUBCHAPTER TWO OR THREE-A OF CHAPTER SIX, OF THIS TITLE TO BE CREDITED OR REFUNDED, WITHOUT INTEREST, IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION (Q) OF SECTION 11-503, SUBDIVISION TWENTY- THREE OF SECTION 11-604 AND SUBDIVISION TWENTY-THREE OF SECTION 11-654 OF THIS TITLE. THE AMOUNT OF SUCH CREDIT SHALL BE, FOR THE PORTION OF THE SERVICE YEAR IN WHICH THE CHILD CARE PROGRAM WAS IN OPERATION, THE SUM OF: (I) THE PRODUCT OF THE NUMBER OF INFANT CHILD CARE SEATS THAT HAVE BEEN CREATED OR EXPANDED AND TWENTY PERCENT OF THE CHILD CARE RATE FOR SUCH INFANT CHILD CARE SEATS; AND (II) THE PRODUCT OF THE NUMBER OF TODDLER CHILD CARE SEATS THAT HAVE BEEN CREATED OR EXPANDED AND TWENTY PERCENT OF THE CHILD CARE RATE FOR SUCH TODDLER CHILD CARE SEATS; PROVIDED THAT SUCH INFANT AND TODDLER CHILD CARE SEATS ARE CHILD CARE SEATS THAT ARE OCCUPIED. NOTWITHSTANDING THE PRECEDING SENTENCE, A CRED- IT SHALL NOT BE ALLOWED FOR MORE THAN TWENTY-FIVE CHILD CARE SEATS THAT ARE OCCUPIED, AND THE AMOUNT OF SUCH CREDIT MAY BE REDUCED AS A RESULT OF AN ALLOCATION OF AVAILABLE FUNDS, AS DESCRIBED IN SUBDIVISION E OF THIS SECTION, FOR SUCH CREDIT. C. APPLICATION PROCESS. A TAXPAYER MUST SUBMIT AN APPLICATION FOR SUCH CREDIT BY NOVEMBER FIRST OF THE CALENDAR YEAR IN WHICH THE SERVICE YEAR HAS ENDED. 1. SUCH APPLICATION SHALL INCLUDE BUT NOT BE LIMITED TO: (A) A PERMIT ISSUED BY THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE TO OPERATE A CHILD CARE CENTER INDICATING THE NUMBER OF CHILD CARE SEATS OR, IN THE CASE OF A CHILD CARE CENTER THAT HAS EXPERIENCED AN EXPANSION OF CHILD CARE SEATS, A PERMIT ISSUED BY SUCH DEPARTMENT DEMONSTRATING SUCH EXPANSION; AND (B) A CERTIFICATION FROM AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT THAT PROVIDES: (1) THE TOTAL NUMBER OF CHILD CARE SEATS THAT ARE CHILD CARE SEATS THAT ARE OCCUPIED DURING SUCH SERVICE YEAR; (2) OF SUCH TOTAL NUMBER OF CHILD CARE SEATS THAT ARE OCCUPIED, THE NUMBER OF INFANT CHILD CARE SEATS THAT ARE OCCUPIED AND THE NUMBER OF TODDLER CHILD CARE SEATS THAT ARE OCCUPIED; AND (3) TO THE EXTENT THE TAXPAYER HAS EXPANDED CHILD CARE, THE NUMBER OF CHILD CARE SEATS IN EXISTENCE BEFORE SUCH EXPANSION AND THE NUMBER OF SUCH CHILD CARE SEATS THAT WERE OCCUPIED BEFORE SUCH EXPANSION. 2. NO LATER THAN JANUARY THIRTY-FIRST OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE APPLICATION WAS SUBMITTED, THE DEPARTMENT OF FINANCE SHALL APPROVE OR DENY SUCH APPLICATION AND PROVIDE A CALCU- LATION OF THE AMOUNT OF SUCH CREDIT AS DETERMINED BY SUBDIVISION E OF THIS SECTION FOR ANY APPLICATION THAT HAS BEEN APPROVED. D. APPLICATION OF CREDIT TO TAX YEAR. THE CREDIT, AS APPROVED AND CALCULATED BY THE DEPARTMENT OF FINANCE PURSUANT TO PARAGRAPH TWO OF SUBDIVISION C OF THIS SECTION, SHALL BE APPLIED TO THE TAX YEAR IN WHICH THE SERVICE YEAR CONCLUDES, EXCEPT THAT: (I) FOR A TAXPAYER WHOSE TAX YEAR CONCLUDES ON OR AFTER SEPTEMBER THIRTIETH AND BEFORE DECEMBER THIR- TY-FIRST, THE CREDIT SHALL BE APPLIED TO THE TAX YEAR IMMEDIATELY FOLLOWING THE TAX YEAR IN WHICH THE SERVICE YEAR CONCLUDES; AND (II) TO PROVIDE THE CREDIT IN A TAX YEAR CONSISTENT WITH THIS SUBDIVISION, THE A. 9009--B 80 DEPARTMENT OF FINANCE MAY ESTABLISH PROCEDURES GOVERNING THE APPLICATION OF SUCH CREDIT WHERE THE TAX YEAR OF A TAXPAYER WHO HAS APPLIED FOR SUCH CREDIT IS LESS THAN TWELVE MONTHS, OR WHERE SUCH TAX YEAR VARIES IN ACCORDANCE WITH SUBSECTION F OF SECTION FOUR HUNDRED FORTY-ONE OF THE INTERNAL REVENUE CODE. E. MAXIMUM AMOUNT OF CREDIT AVAILABLE. FOR EACH OF THE THREE TAX YEARS IN WHICH THE CREDIT AUTHORIZED BY THIS SECTION IS AVAILABLE, THE AGGRE- GATE AMOUNT OF SUCH CREDIT SHALL BE A MAXIMUM OF TWENTY-FIVE MILLION DOLLARS. TO THE EXTENT THAT THE DEPARTMENT OF FINANCE HAS DETERMINED THAT THE AGGREGATE AMOUNT OF SUCH CREDIT, AS CALCULATED PURSUANT TO SUBDIVISION B OF THIS SECTION, WOULD EXCEED TWENTY-FIVE MILLION DOLLARS, SUCH DEPARTMENT SHALL REDUCE THE AMOUNT OF CREDIT TO BE GRANTED TO EACH TAXPAYER WHO HAS APPLIED FOR SUCH CREDIT IN ACCORDANCE WITH A PROCESS TO BE DEVELOPED IN RULES PROMULGATED BY SUCH DEPARTMENT. IN DEVELOPING SUCH PROCESS, THE DEPARTMENT MAY CONSIDER FACTORS INCLUDING, BUT NOT LIMITED TO, THE DATE OF APPLICATION, THE NUMBER OF CHILD CARE SEATS IN A CHILD CARE PROGRAM THAT ARE OCCUPIED, AND THE EXTENT TO WHICH THE TAXPAYER BEARS THE COST OF THE CHILD CARE THAT IS PROVIDED TO THE EMPLOYEES OF SUCH TAXPAYER. § 2. Section 11-503 of the administrative code of the city of New York is amended by adding a new subdivision (q) to read as follows: (Q) CREDIT FOR THE PROVISION OF CHILD CARE. IN ADDITION TO ANY OTHER CREDIT ALLOWED UNDER THIS SECTION, A TAXPAYER WHOSE APPLICATION FOR A CREDIT AUTHORIZED BY SECTION 11-144 OF THIS TITLE HAS BEEN APPROVED BY THE DEPARTMENT OF FINANCE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS CHAPTER. THE AMOUNT OF THE CREDIT SHALL BE DETERMINED AS PROVIDED IN SUCH SECTION. TO THE EXTENT THE AMOUNT OF THE CREDIT ALLOWED BY THIS SUBDIVISION EXCEEDS THE AMOUNT OF TAX DUE PURSUANT TO THIS CHAP- TER, AS CALCULATED WITHOUT SUCH CREDIT, SUCH EXCESS AMOUNT SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD- ANCE WITH THE