NY State Senate Bill 2023-S2026

Senate Bill S2026

2023-2024 Legislative Session

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

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Current Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to commerce, economic development and small business
Jan 18, 2023	referred to commerce, economic development and small business

co-Sponsors

2023-S2026 (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Amd §§352, 353 & 355, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8320
2021-2022: S3471

2023-S2026 (ACTIVE) - Summary

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

2023-S2026 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2026

SPONSOR: KENNEDY
 
TITLE OF BILL:

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

 
PURPOSE:

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

 
SUMMARY OF SPECIFIC PROVISIONS:

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

Section two amends subdivision 1 of section 353 of the economic develop-

ment law, to include medical equipment projects as a permitted business
to receive incentives from the Excelsior Jobs Program

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

Section four sets the effective date.

 
JUSTIFICATION:

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

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

Ensuring New York has its own base of medical equipment manufacturing
and resources will be vital to address outbreaks in the future.  At a
time when unemployment is at record levels not.seen since the Great
Depression, millions of New Yorkers are in need of work.  Attracting new
industries such as those that manufacture, research and develop, and
produce medical equipment will create new jobs, and connect unemployed
workers with new opportunities.

 
LEGISLATIVE HISTORY:

2021-22: S.3471 Passed Senate

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take immediately.

2023-S2026 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2026
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 18, 2023
                                ___________
 
 Introduced  by Sens. KENNEDY, HINCHEY -- read twice and ordered printed,
   and when printed to be committed to the Committee on Commerce, Econom-
   ic Development and Small Business
 
 AN ACT to amend the economic development law, in relation to the excels-
   ior jobs program and certain incentives for medical equipment projects
   within such program

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 352 of the economic development law is amended by
 adding a new subdivision 8-b to read as follows:
   8-B. "MEDICAL EQUIPMENT PROJECT" MEANS A PROJECT DEEMED BY THE COMMIS-
 SIONER TO MAKE PRODUCTS OR DEVELOP TECHNOLOGIES THAT ARE PRIMARILY  USED
 BY  MEDICAL  PROFESSIONALS  IN  A  PROFESSIONAL  OR  HOME  CARE SETTING.
 PROJECTS SHALL INCLUDE, BUT NOT BE LIMITED TO, THE MANUFACTURE OF DEVEL-
 OPMENT OF PRODUCTS OR TECHNOLOGIES SUCH AS: PERSONAL  PROTECTIVE  EQUIP-
 MENT,  OXYGEN  AND  OXYGEN  DELIVERY SYSTEMS, VENTILATION AND ASPIRATION
 DEVICES, RESPIRATORY DISEASE MANAGEMENT  SERVICES,  MONITORING  DEVICES,
 FEEDING  PUMPS,  MEDICAL  TESTING  DEVICES,  AND  EQUIPMENT NECESSARY TO
 CONDUCT MEDICAL TESTS.
   § 2. Subdivision 1 of section 353 of the economic development law,  as
 amended  by chapter 494 and paragraph (b) as seperately amended by chap-
 ter 572 of the laws of 2022, is amended to read as follows:
   1. To be a participant in the excelsior jobs program, a business enti-
 ty shall operate in New York state predominantly:
   (a) as a financial services data center or a financial  services  back
 office operation;
   (b)  in  manufacturing,  including  in  animal and plant fiber textile
 manufacturing;
   (c) in software development and new media;
   (d) in scientific research and development;
   (e) in agriculture;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05026-01-3

 S. 2026                             2
 
   (f) in the creation or expansion of  back  office  operations  in  the
 state;
   (g) in a distribution center;
   (h)  in  an  industry  with  significant  potential for private-sector
 economic growth and development in this  state  as  established  by  the
 commissioner  in  regulations  promulgated  pursuant to this article. In
 promulgating such regulations the commissioner  shall  include  job  and
 investment criteria;
   (i) as an entertainment company;
   (j) in music production;
   (k) as a life sciences company;
   (l)  as  a  company operating in one of the industries listed in para-
 graphs (b) through (e) of this  subdivision  and  engaging  in  a  green
 project as defined in section three hundred fifty-two of this article;
   (m)  as  a  participant  operating  in one of the industries listed in
 paragraphs (a) through (k) of this subdivision and operating or sponsor-
 ing child care services to its employees as  defined  in  section  three
 hundred fifty-two of this article; [or]
   (n) as a Green CHIPS project[.]; OR
   (O)  AS  A  COMPANY OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARA-
 GRAPHS (B), (C), (D) OR (K)  OF  THIS  SUBDIVISION  AND  ENGAGING  IN  A
 MEDICAL EQUIPMENT PROJECT.
   §  3.  Subdivisions 1, 2 and 3 of section 355 of the economic develop-
 ment law, as amended by of chapter 494 of the laws of 2022, are  amended
 to read as follows:
   1. Excelsior jobs tax credit component. A participant in the excelsior
 jobs program shall be eligible to claim a credit for each net new job it
 creates in New York state. In a project that is not a green project OR A
 MEDICAL  EQUIPMENT  PROJECT,  the amount of such credit per job shall be
 equal to the product of the gross wages paid and up to 6.85 percent.  In
 a green project, or a Green CHIPS project, the amount of such credit per
 job  shall be equal to the product of the gross wages paid and up to 7.5
 percent.  IN A MEDICAL EQUIPMENT PROJECT, THE AMOUNT OF SUCH CREDIT  PER
 JOB  SHALL BE EQUAL TO THE PRODUCT OF THE GROSS WAGES PAID AND UP TO 8.5
 PERCENT. Provided, however, given the transformational nature  of  Green
 CHIPS  projects,  only  the  first two hundred thousand dollars of gross
 wages per job shall be eligible for this credit. The maximum  amount  of
 gross  wages  per  job  for  a  Green  CHIPS project may be adjusted for
 inflation at an annual amount determined by the commissioner in a manner
 substantially similar to the cost of living  adjustments  calculated  by
 the  United  States  Social  Security Administration based on changes in
 consumer price indices or a rate of four percent per year, whichever  is
 higher.
   2.  Excelsior  investment  tax  credit component. A participant in the
 excelsior jobs program shall be eligible to claim a credit on  qualified
 investments.  In  a  project  that  is  not a green project OR A MEDICAL
 EQUIPMENT PROJECT, the credit shall be equal to two percent of the  cost
 or  other basis for federal income tax purposes of the qualified invest-
 ment. In a green project, the credit shall be equal to five  percent  of
 the cost or other basis for federal income tax purposes of the qualified
 investment. IN A MEDICAL EQUIPMENT PROJECT, THE CREDIT SHALL BE EQUAL TO
 SEVEN PERCENT OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES
 OF  THE QUALIFIED INVESTMENT.  In a project for child care services or a
 Green CHIPS project, the credit shall be up to five percent of the  cost
 or  other basis for federal income tax purposes of the qualified invest-
 ment in child care services or in the Green CHIPS project as applicable.
 S. 2026                             3
 
 A participant may not claim both the  excelsior  investment  tax  credit
 component  and the investment tax credit set forth in subdivision one of
 section two hundred ten-B, subsection (a) of section  six  hundred  six,
 the  former  subsection  (i)  of  section fourteen hundred fifty-six, or
 subdivision (q) of section fifteen hundred eleven of the tax law for the
 same property in any taxable year, except that a participant  may  claim
 both  the  excelsior  investment tax credit component and the investment
 tax credit for research and development property. In addition, a taxpay-
 er who or which is qualified to claim the excelsior investment tax cred-
 it component and is also qualified  to  claim  the  brownfield  tangible
 property  credit  component  under section twenty-one of the tax law may
 claim either the excelsior  investment  tax  credit  component  or  such
 tangible  property  credit  component,  but  not  both  with regard to a
 particular piece of property. A credit may not be claimed until a  busi-
 ness  enterprise has received a certificate of tax credit, provided that
 qualified investments made on or after the issuance of  the  certificate
 of  eligibility but before the issuance of the certificate of tax credit
 to the business enterprise, may be claimed in the first taxable year for
 which the business enterprise is allowed to claim the  credit.  Expenses
 incurred  prior to the date the certificate of eligibility is issued are
 not eligible to be included in the calculation of the credit.
   3. Excelsior research and development tax credit component. A  partic-
 ipant  in the excelsior jobs program shall be eligible to claim a credit
 equal to fifty percent of  the  portion  of  the  participant's  federal
 research  and  development  tax credit that relates to the participant's
 research and development expenditures in New York state during the taxa-
 ble year; provided however, if not a green project OR A  MEDICAL  EQUIP-
 MENT  PROJECT,  the  excelsior research and development tax credit shall
 not exceed six percent of the qualified research and development expend-
 itures attributable to activities conducted in New York state, or, if  a
 green project, A MEDICAL EQUIPMENT PROJECT or a Green CHIPS project, the
 excelsior  research  and  development  tax credit shall not exceed eight
 percent of the research and  development  expenditures  attributable  to
 activities  conducted  in  New  York  state. If the federal research and
 development credit  has  expired,  then  the  research  and  development
 expenditures  relating  to  the  federal research and development credit
 shall be calculated as if the federal research  and  development  credit
 structure  and  definition  in effect in two thousand nine were still in
 effect. Notwithstanding any other  provision  of  this  chapter  to  the
 contrary, research and development expenditures in this state, including
 salary  or  wage  expenses  for jobs related to research and development
 activities in this state, may be used as the  basis  for  the  excelsior
 research and development tax credit component and the qualified emerging
 technology  company facilities, operations and training credit under the
 tax law.
   § 4. This act shall take effect immediately.

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Senate Bill S2026

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Sponsored By

Timothy M. Kennedy